NEW YORK, April 3 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. (OTC Bulletin Board: CHBU) a manufacturer of biochemical agricultural application products through its operating company in China, announced its financial results for the year ended December 31,2008.
Revenue for the year ended December 31, 2008 totaled $2,922,385, a decrease of 3.8% as compared to $3,037,414 for the year ended December 31, 2007. The Company's operations were adversely affected by natural and weather related disasters that occurred in China in 2008, specifically severe winter weather conditions in January and February, a major earth quake on May 12 epicentered in Sichuan province, and widespread flooding in the central and southern regions in May and June, including the Hunan and Hubei provinces. Sales in each of these areas declined significantly.
Gross Profit for the year ended December 31, 2008 was $2,104,913, an increase of 1.6% as compared to $2,072,453 for the year ended December 31, 2007. Gross profit margin rate for the year ended December 31, 2008 was 72.03%, as compared to 68.23% for the year ended December 31, 2007. The improvement in gross margin is primarily attributable to a 5-10% increase in the prices of the Company's products.
The Company reported net income of $1,345,339, or $0.10 per share for 2008, as compared to $1,058,882, or $0.09 per share, respectively, for 2007. These increases are primarily attributed to the higher gross profit margin rate, lower professional fees, and lower general and administrative expenses in 2008 relative to 2007.
Liping Deng, President and CEO of China Agri-Business, stated, "We are pleased that we were able to maintain our sales despite weather and natural disasters beyond our control. Despite these setbacks, we remain focused on growth through new product development and expansion of our sales and marketing efforts in China."<
|SOURCE China Agri-Business, Inc.|
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