HARBIN, China, Aug. 13 China Kangtai CactusBiotech Inc. (OTC Bulletin Board: CKGT), a vertically integrated grower,developer, manufacturer, and marketer of a variety of cactus-based products inChina, announced today that revenue for the second quarter of 2009 increased30% to $6.5 million from $5.0 million in the second quarter of 2008. Dilutedearnings per share for the quarter was $0.07 based on a net income of $1.4million, compared to a net income of $1.0 million or $0.06 diluted EPS lastyear.
For the first six months of 2009, revenue was $9.8 million, an increase of27% from $7.8 million for the comparable period last year. Net income for thefirst six months of 2009 was up 29% at $2.1 million, compared to $1.6 millionfor the first six months of 2008.
China Kangtai CEO Jinjiang Wang said, "The pace of our revenue growthaccelerated in the second quarter with a year-over-year increase of 30% and asequential increase of 96%. This was primarily driven by growing acceptance ofour cactus-derived products. The increase in consumer consumption, led byKangtai's expanding brand awareness, indicates a bright future for our healthand wellness products, including nutraceuticals, nutritional food and drinks,and animal feed products. We expect continued improvement throughout thesecond half of 2009 as we focus our integration efforts on the Marchacquisition to further expand our production and distribution capacity."
In March, the company acquired the assets of Qitaihe Kangwei BiotechnologyCo., Ltd. The purchase included the right to use 49,000 square meters ofstate-owned land in Qitaihe City, as well as housing, machinery, equipment,and related facilities. The purchase price was approximately $5.42 million.
About China Kangtai Cactus Biotech, Inc.
China Kangtai Cactus Biotech, Inc. is a leading grower, developer,producer, and marketer of cactus-derived products, including nutraceuticals,nutritious food, health and energy drinks, beer, wine and liquor, extracts andpowders, and animal feed. China Kangtai controls over 387 acres of plants andmaintains an active R&D group that holds 18 product patents and is seekinganother 12. China Kangtai's high-quality "green" products are sold throughoutChina via a distribution network that covers 12 of China's 23 provinces andtwo of China's four municipalities. More information may be found athttp://www.biocactus.com or via e-mail: [email protected]
An investment profile on China Kangtai Cactus Biotech Inc. is available athttp://www.hawkassociates.com/profile/ckgt.cfm . For an online investorrelations kit, visit http://www.hawkassociates.com . For more investor-relatedquestions, contact Susan Zhou, Hawk Associates, at 305-451-1888, e-mail:[email protected]
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This news release contains forward-looking statements as defined by thePrivate Securities Litigation Reform Act of 1995. Forward-looking statementsinclude statements concerning plans, objectives, goals, strategies, futureevents or performance, and underlying assumptions and other statements thatare other than statements of historical facts. These statements are subject touncertainties and risks including, but not limited to, product and servicedemand and acceptance, changes in technology, economic conditions, the impactof competition and pricing, government regulation, and other risks containedin reports filed by the company with the Securities and Exchange Commission.All such forward-looking statements, whether written or oral, and whether madeby or on behalf of the company, are expressly qualified by the cautionarystatements and any other cautionary statements which may accompany theforward-looking statements. In addition, the company disclaims any obligationto update any forward-looking statements to reflect events or circumstancesafter the date hereof.Second Quarter Highlights -- Second quarter revenue increased 30% to $6.5 million from $5.0 million in Q2 2008 -- On a sequential basis, Q2 revenue increased 96% from $3.3 million in Q1 2009 -- Cash and cash equivalents totaled $2.8 million, an increase of 19% from $2.3 million as of March 31, 2009 -- Gross profit increased 80% to $2.7 million from $1.5 million in Q2 2008 -- Sequentially, gross profit increased 121% from 1.2 million in Q1, 2009 -- Gross margins were 42%, up from 30% reported in Q2 2008 and 37% in Q1 2009 -- Net income increased 37% to $1.4 million from $1.0 million in Q2 2008 -- Sequentially, net income experienced a 105% increase from $694,000 in Q1 2009
SOURCE China Kangtai Cactus Biotech Inc.