Revenue Jumps 16.5% Resulting in 25% Increase in Net Income
HARBIN, China, May 20 /Xinhua-PRNewswire-FirstCall/ -- China Kangtai Cactus Biotech Inc. (the "Company") (OTC Bulletin Board: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based consumer products in China, announced today results for its 2008 first quarter ended March 31, 2008. The Company reported revenue of $2,765,496, an increase of 16.5% compared to $2,374,109 in the corresponding period of the prior year. The increase in revenue was a result of the Company continuing to expand its production and distribution, and due to increased acceptance by customers of products such as Cactus Protein Nutrient, Cactus Calcium Peptide Soft Capsule and Cactus Shuxin Capsule.
Gross profit increased to $1,029,697 compared to $757,566 in the year earlier period, as a result of increased sales of the Company's products. Net income increased by 25% to $606,516, compared to $485,140 in the year-earlier period. Total income, which includes gains from foreign currency translation adjustments, increased 126.4% to $1,331,510, compared to $588,115 in the 2007 first quarter.
"We are pleased to report strong first quarter results," said Jinjiang Wang, President of China Kangtai Cactus. "The domestic demand for cactus products is robust, and the Company is well positioned to capitalize on consumer preferences through growing recognition for our suite of proprietary products. During the balance of the year, we will continue to focus on expanding distribution and growing our production capabilities to meet the expected increase in demand."
About China Kangtai Cactus Biotech, Inc.
China Kangtai Cactus Biotech Inc. is market-leading cactus grower and producer of cactus-related products with over 387 acres of plants and an active R&D group that holds 15 product patents and is seeking another 15 in a variety of product categories. China Kangtai's high-quality products are sold throughout China in supermarkets, food stores, hotels and restaurants through a growing distribution network that has currently covered 14 provinces and 4 municipalities.
Cautionary Statement Regarding Forward-looking Information
This press release contains forward-looking information about China Kangtai Cactus Biotech that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Kangtai Cactus Biotech future performance, operations and products.
For more information, please contact:
Chengzhi Wang
General Manager
China Kangtai Cactus Biotech, Inc.
Tel: +86-158-0451-2893
Email: chinakangtai@gmail.com
Web: http://www.biocactus.com
Investor Relations:
Dan Schustack
CEOcast, Inc.
China Kangtai Cactus
Tel: +1-212-732-4300
Email: dschustack@ceocast.com
