Sino Green Land Corp., a leading agricultural distributor of high-end fruits and vegetables in the People’s Republic of China, today reported its financial results for the fourth quarter and full year ended December 31, 2009.
Revenue for the fourth quarter ended December 31, 2009 increased 130.2 percent to $36.6 million compared to $15.9 million for the fourth quarter of 2008.
Gross profit increased 165.2 percent to $3.8 million for the quarter as compared to $1.4 million for the fourth quarter of 2008, representing gross margins of approximately 10.25 percent and 8.90 percent, respectively.
Operating income increased 403.9 percent to $2.9 million for the fourth quarter ended December 31, 2009, compared to $0.6 million for the three months ended December 31, 2008.
Net income for the quarter was $3.2 million, or $0.03 per diluted share, compared to net income of $0.4 million, or $0.01 per diluted share, for the same period last year.
Anson Fong, chairman of Sino Green Land, highlighted the company’s ability to more than double year-over-year sales through strategic marketing initiatives and scalable business model. Fong said Sino Green Land also expanded relationships with farmers across China which allowed the company to guarantee the farmers an outlet for their products.
“In turn, we work closely with these farmers to enhance their productivity, such as providing them with advanced technology that will increase their crop yields. As a result of these relationships, we are able to sell the highest quality food at very attractive prices. Moreover, as sales increased, we gained meaningful operating leverage as reflected by the sharp increase in both our operating and net profit margins,” Fong stated in the press release.
Revenue for the 12 months ended December 31, 2009, increased 46.9 percent to $108.0 million, as compared to $73.6 million for the 12 months ended December 31, 2008.
Gross profit increased 51.7 percent to $11.7 million for 2009 as compared to $7.7 million for the 12 months ended December 31, 2008, representing gross margins of approximately 10.86 percent and 10.52 percent, respectively.
Operating income increased 36.3 percent to $6.9 million for the 12 months ended December 31, 2009, compared to $5.1 million for the 12 months ended December 31, 2008.
Fong also noted the company’s position to capitalize on the trend for healthy foods through its China Green Food Distribution Hub.
“Sino Green Land is well-positioned to take advantage of the growing demand for healthy foods. We are well underway constructing the China Green Food Distribution Hub, an enormous marketplace and the first of its kind to centralize distribution of green foods in China. The new distribution hub will be open to retailers and wholesalers beginning in the second half of 2010. The ChinaGreen Food Distribution Hub will span 20 thousand square meters in Guangzhou, one of the most populated regions of China, where it will serve the Pearl River Delta, Hong Kong and Macao,” Fong stated.