China Agri-Business, Inc. commented yesterday on their financial results for the year ended December 31, 2009. The Company filed these results through a SEC Form 10-K on April 15, 2010.
Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, Inc. commented on the Company’s results for 2009 and the Company’s outlook, “In the fourth quarter of 2008, we started an aggressive initiative that we call the ‘New Agriculture-Generator.’ The primary purpose of the initiative is to expand our business by creating our own sales network of direct sales stores for our products and also by partnering with existing stores to create a super chain of branded stores that feature China Agri’s products. We believe this initiative will create closer relationships for us with farmers in the rural areas of China where our direct sales stores and the super chain stores are located.”
China Agri-Business, Inc. had 49 direct sales stores at year-end 2009. The Company added most of these stores during the year. In addition, the Company had 103 independent stores enrolled in their Super Chain Sales Partner Program at year-end 2009. Again, they added most of these stores during the year.
Mr. Liping Deng further commented, “We made great progress as we expanded both of these channels in 2009. By year end 2009, we had 49 direct sales stores, controlled and managed by us, and 103 branded super chain stores. Those are just the start. These two distribution channels in 2009 together accounted for 34 percent of our sales for the year; two years ago, neither channel existed. The remaining 66 percent of our sales in 2009 were distributed through the traditional sales network that consists of independent wholesalers, distributors, and retailers.”
The Company’s financial highlights for 2009 include Sales increasing 4.0 percent to $3.04 million in 2009 from $2.92 million in 2008. Gross profit decreased 6.3 percent to $1.97 million in 2009 from $2.10 million in the prior year. Net income decreased 21.6 percent to $1.05 million in 2009 from $1.35 million in 2008. Diluted earnings per common share decreased 20.0 percent to $0.08 in 2009 from $0.10 in 2008.
China Agri-Business, Inc. is a manufacturer and distributor of organic agricultural application products in China. The Company, through their operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in the country. China Agri-Business, Inc.’s two primary product groups are organic fertilizer (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company’s Xinsheng’s manufacturing facilities are in Xi’an, Shaanxi province, China.