NEW YORK, July 31, 2012 /PRNewswire/ -- Tanke
BioSciences Corporation (OTCQB: TNBI), a leading producer of
livestock feed additives and nutritional products, today said the
strengthening pork industry in China and incremental sales generated from
formation of a new marketing division should result in a
significant improvement in both revenue and operating results in
2012 vs. 2011.
According to Tanke CEO and chairman, Mr. Guixiong Qiu, the
company has benefitted from a sharp reduction in the prevalence of
pig diseases that reached their peak in China in 2011. These diseases, which caused a
sharp reduction in the nation's population of healthy pigs – and
thus, a corresponding decrease in demand for animal feed additives
– has this year been brought under tighter control, elevating both
the population of healthy pigs and the demand for animal feed
additives. The company expects this increased demand to continue
for the balance of the year and into 2013, said Mr. Qiu.
The new marketing division, he added, will be devoted
exclusively to serving the product and technical needs of
China's larger animal farms –
which, as end users of Tanke products, allow the company to realize
substantially higher margins and lower marketing costs than do
intermediary users such as animal feed producers.
These efficiencies, coupled with the added sales generated by
new and existing products marketed by the new division, are
expected to boost profit growth in 2012 and beyond, said Mr.
Qiu.
Mr. Qiu added that he also expects Tanke's business to benefit
as a result of new regulations, taking effect on May 1, 2012, governing the production and
distribution of animal feed additives throughout China. These regulations, enacted by the
nation's highest authority, the State Council of China, impose dramatically higher fines and
penalties on those animal feed additive companies not meeting the
new standards. As a result, many companies – mainly those which
have traditionally competed on the basis of price but which have
often been cited for serious deficiencies in product quality – are
expected to be driven from the marketplace, enabling compliant
animal feed additive suppliers like Tanke to gain a proportionally
larger market share.
Finally, as previously reported, a new plant for the production
of organic trace minerals, due to be completed in the second
quarter of 2013, is expected to further augment the company's
nation-leading market share of this rapidly-growing product
sector.
About Tanke BioSciences Corporation
Founded in 1997, Tanke BioSciences Corp. (http://tanke-bio.com/)
is a China-based integrated
biotech company that develops, manufactures, and markets animal
feed additives and livestock nutritional products that directly
address China's soaring demand for
safe, reasonably priced food. All Tanke products are free of
genetically modified organisms (GMOs), antibiotics, and are 100
percent environment-friendly, making them optimal for animal
consumption. For investor information, please go to
http://ir.stockpr.com/tankebio/overview.
Forward-Looking Statements
This press release and the statements of representatives of our
officers, directors, employees and representatives related thereto
contain or may contain forward-looking statements which are based
upon the current beliefs and expectations of our management. Such
statements contained in this release are based on management's
exercise of business judgment as well as assumptions made by and
information currently available to management. When used in this
document, the words "guidance," "projects," "may," "could,"
"would," "should," "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "ultimately" and words of similar
import, are intended to identify any forward-looking statements.
The information contained in the forward looking statements is
inherently uncertain, and our actual results may differ materially
due to a number of factors, many of which are beyond our ability to
predict or control, including, among others: (i) changes in the
level of consumer spending or preferences or demand for our
products; (ii) pressures from competition; (iii) our ability to
hire and retain key personnel and our relationship with our
employees; (iv) the performance of our distributors and other key
vendors; (v) effectively carrying out and managing our growth
strategies; (vi) failure to maintain the value and image of our
brand and protect our intellectual property rights; (vii)
seasonality; (viii) costs of materials and labor; (ix) sales,
manufacturing, supply or distribution difficulties or disruptions;
(x) compliance with or changes in Chinese, U.S. or international
laws and regulations; (xi) costs as a result of operating as a
public company; (xii) material weaknesses in internal controls;
(xiii) interest rate and foreign currency risks; (xiv) our ability
to maintain our land use and drug manufacturing rights in
China; (xv) general economic and
industry conditions in China and
internationally, and other risks as more fully detailed in our
filings with the Securities and Exchange Commission ("SEC"). Our
filings with the SEC are available at www.sec.gov. You are urged to
consider these factors carefully in evaluating our forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements which are qualified in their entirety by
this cautionary statement. The forward-looking statements speak
only as of the date on which they are made, and the company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances unless as
required by applicable laws or regulations.
Investor Contact:
Jimmy Caplan
Market Makers
(512) 329-9505
Media Contact:
Rick
Eisenberg
Eisenberg Communications
(917) 691-8934
SOURCE Tanke BioSciences Corporation