China Agritech, Inc. Comments on the 2009 Second Half Outlook
June 15 2009 - 9:50AM
PR Newswire (US)
BEIJING, June 15 /PRNewswire-Asia-FirstCall/ -- China Agritech,
Inc. (OTC:CAGC) (BULLETIN BOARD: CAGC) ("China Agritech", or the
"Company"), a leading national organic fertilizer manufacturer and
distributor in China, today provided comments on the second half of
the 2009 year. The Chinese government has reported that raw
materials prices are gradually declining, which resulted in
steadily improving market conditions for compound fertilizers in
China. The Company anticipates that lower material costs will
generate higher profits on its anticipated revenues. To further
enhance profits, China Agritech plans to launch higher-margined
products into the domestic markets in the near future. In April
2009, the Company announced a breakthrough in new high-tech, humic
acid-based, organic liquid and powder compound fertilizers. By
utilizing the Company's proprietary nano-honeycomb embedding and
microelement deep complexing technologies, new products will have
the advantages of being more environmentally friendly and effective
with a higher nutrient content than traditional organic
fertilizers. China Agritech continues to focus on improving its
cash flow and it anticipates significant improvement in the
collection of accounts receivable in the second half of 2009. Two
organic granular fertilizer manufacturing production facilities are
now in commercial production with a total annual capacity of
150,000 metric tons. Based on feedback from the Company's extensive
marketing network, several large orders are expected to be
concluded during the remainder of 2009 which could fulfill the
approximated annual sales target. The new marketing and
distribution agreement with Odyssey International is expected to
also add to revenues during 2009. In addition to organic growth,
China Agritech is intent on augmenting growth through accretive
acquisitions within the Chinese fertilizer industry. Several
potential candidates have already been identified. Mr. Yu Chang,
Chairman and Chief Executive Officer of China Agritech, commented,
"We have taken a number of steps to position China Agritech for
further growth. We expanded our marketing and distribution network
within China, validated our relationship with China's largest
fertilizer distribution company, Sinochem, created a diversified
manufacturing base for our new organic granular fertilizer to
penetrate key agricultural areas in China, and are introducing new
high-margin fertilizers based on our proprietary technologies.
Further, we intend to be more aggressive in enhancing growth and
profits through exports and acquisitions. We look forward to the
second half of 2009 as we further execute our plans to build
shareholder value." About China Agritech, Inc. China Agritech, Inc.
is engaged in the development, manufacture and distribution of
liquid and granular organic compound fertilizers and related
products in China. The Company has developed proprietary formulas
that provide a continuous supply of high-quality agricultural
products while maintaining soil fertility. The Company sells its
products to farmers located in 26 provinces of China. For more
information about the Company, please visit
http://www.chinaagritechinc.com/ . Safe Harbor Statement This
release may contain certain "forward-looking statements" relating
to the business of China Agritech and its subsidiary companies,
which can be identified by the use of forward-looking terminology
such as "believes," "expects," "anticipates," "estimates" or
similar expressions, including, but not limited to, statements
regarding the continued demand for China Agritech's products, China
Agritech's ability to sustain growth for the balance of the year
and China Agritech's ability to generally meet all of its
objectives. Such forward-looking statements involve known and
unknown risks and uncertainties, including all business
uncertainties relating to product development, marketing,
concentration in a single customer, raw material costs, market
acceptance, future capital requirements, ability to produce and
sell organic granular products in targeted markets, and competition
in general and other factors that may cause actual results to be
materially different from those described herein as anticipated,
believed, estimated or expected. Certain of these risks and
uncertainties are or will be described in greater detail in our
filings with the SEC. Except as required by law, China Agritech is
under no obligation to update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise. For more information, please contact: In China: Mr.
Gareth Tang Chief Financial Officer China Agritech, Inc. Tel:
+86-10-5962-1220 Email: In the U.S.: Mr. Kevin Theiss / Mr.
Valentine Ding Investor RelationsGrayling Tel: +1-646-284-9409
Email: DATASOURCE: China Agritech, Inc. CONTACT: In China: Mr.
Gareth Tang, Chief Financial Officer of China Agritech, Inc.,
+86-10-5962-1220, or ; Or In the U.S.: Mr. Kevin Theiss & Mr.
Valentine Ding of Investor Relations, Grayling, +1-646-284-9409, or
& Web site: http://www.chinaagritechinc.com/
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