China Agritech, Inc. Announces that Preliminary Unaudited Results Exceeded 2009 Guidance
February 08 2010 - 7:40AM
PR Newswire (US)
2010 guidance is for revenues to approximate $114 million BEIJING,
Feb. 8 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc.
(NasdaqGM: CAGC) ("China Agritech", or the "Company"), a leading
national organic fertilizer manufacturer and distributor in China,
announced today preliminary unaudited annual net revenues and
preliminary unaudited net income attributable to common
stockholders for the year ended December 31, 2009. The Company also
announced guidance for revenues for the current year ending
December 31, 2010. For the year ended December 31, 2009,
preliminary unaudited annual revenues rose by 66% to approximately
$75.0 million compared with audited revenues of $45.2 million in
2008. Preliminary annual revenues exceeded the Company's higher
revised guidance of $70 million for the 2009 year. Preliminary 2009
unaudited annual net income attributable to common shareholders
(excluding non-cash charge as a result of issuance of warrants to
Carlyle Group) increased by 82% to approximately $15.7 million
compared with audited net income of $8.6 million in 2008. This is
in line with the Company's higher revised guidance for net income
of $15.6 million for the 2009 year. Net revenues and net income for
the 2009 year benefited from increased organic liquid fertilizer
sales combined with the successful introduction of the Company's
new organic granular fertilizer products. During 2009, China
Agritech completed three organic granular fertilizer plants with a
total production capacity of 200,000 total metric tons and started
commercial production in the Anhui and Harbin facilities. The
Xinjiang facility will commence its commercial production in the
second quarter of 2010. The Company's production plants are located
in diverse locations to better serve the needs of the local farming
communities. Mr. Yu Chang, Chairman and Chief Executive Officer of
China Agritech, commented, "2010 is an important year for
agriculture from both global and Chinese domestic perspectives. As
governments around the world continue to encourage economic
recovery, they are also increasingly calling for higher yields in
farm production to stabilize food supplies and curb inflation. As a
leader in the organic fertilizer space in China, we are well
positioned to benefit from this favorable macro trend. As our newly
introduced granular products continue to gain market share and
build traction among Chinese farmers, we are confident that our
granular fertilizer penetration is scalable and sustainable. With
the increased sales of granular products, we also expect a healthy
improvement in DSO in 2010." The Company also announced its
guidance for the year ending December 31, 2010 with revenues
expected to reach approximately $114 million based on current
production and expectations. 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 28
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, 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. It should be noted that the 2009 preliminary
numbers are unaudited and may differ materially from the final
audited numbers. 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 Investor Relations Grayling Tel:
+1-646-284-9409 Email: DATASOURCE: China Agritech, Inc. CONTACT: in
China, Gareth Tang, Chief Financial Officer of China Agritech,
Inc., +86-10-5962-1220, ; or in the U.S., Kevin Theiss, Investor
Relations, +1-646-284-9409, of Grayling Web site:
http://www.chinaagritechinc.com/
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