Revenue Increases 34% Driving Record Profitability
HARBIN, China, Aug. 16 /Xinhua-PRNewswire/ -- 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 record second quarter results for the period ended June 30, 2008. The Company reported revenue of $5.0 million, a 34.9% increase compared to $3.7 million in the 2007 second quarter. The increase in revenue was a result of growing acceptance of the Company’s products such as Cactus Protein Nutrient, Cactus Calcium Peptide Soft Capsule and Cactus Shuxin Capsule by Chinese customers and expanded distribution.
Gross profit for the three months period ended June 30, 2008 was $1.5 million, an increase of 12.3% compared to $1.4 million for the same period last year. This increase was mainly attributable to the increase in net sales. For the three months ended June 30, 2008, pre-tax income increased by 10.2%, to $1.2 million from $1.1 million in the corresponding period of the prior year. Net income available to common stockholders increased to $1.0 million, or $0.06 per diluted share, compared to $0.9 million, or $0.05 per diluted share in the previous year’s second quarter.
For the six months ended June 30, 2008, revenue increased 27.7% to $ 7.8 million, compared to $6.1 million in the corresponding period of the prior year. Pre-tax income increased 13.8% to $1.9 million for the 2008 first six months, compared to $1.7 million in the six months ended June 30, 2007. Net income increased to $1.6 million, compared to $1.4 million in the 2007 period ended June 30, 2007.
"Our second quarter results reflect the growing acceptance of our existing cactus products," said Jinjiang Wang, President of China Kangtai Cactus. "As we increase our marketing activities to support the recent launch of many of our exciting new products such as Cactus Cattle Feed and Cactus Fish Feed, we expect awareness of the health and productivity benefits of these products for livestock and fish to grow, leading to significant revenue growth."
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 17 product patents and is seeking another 13 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 12 provinces and 2 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.