China Agritech (CAGC) Issues Preliminary FY09 Results
China Agritech, Inc. (NASDAQ: CAGC) 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.
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.
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