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China Agritech Ups Income Guidance Following a 92% Increase in second quarter

Published: 13:41 09 Oct 2009 BST

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China Agritech Inc (Nasdaq: CAGC) announced has increased its annual net revenue and net income guidance for 2009 following a 91.2% rise in net income for the second quarter ended June 30, 2009. The revised 2009 guidance for net revenue and net income is based on the Company's current views on the operating and market conditions.


China Agritech is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.


The Company is now expecting net revenues as high as $70 million for the year, an additional $10m over previous expectations. The revised guidance for net income is approximately $12.5 million compared to previous guidance of $9.5 million. Diluted earnings per share are now expected to be approximately $1.88.


The new guidance represents almost a 55% increase for net revenues and around a 45% rise for net income over the year 2008 results.


China Agritech CEO, Mr. Yu Chang commented on the effect of companies development is having and also highlighted the potential for further upside through the Chinese Government’s plans;


"With the success of our new regional production facilities and our expanded line of organic fertilizers. We now offer farmers more solutions to grow their crops and improve soil fertility. We may also benefit from the Chinese government's promotion of organic food and therefore organic fertilizers, as well as from the measures enacted to improve farmers' wealth."


Today’s announcement follows several key milestones in China Agritech’s development, last month the companies common shares were admitted for trading on New York’s Nasdaq Exchange.


Also in September, China Agritech completed the construction and installation of its new organic granular fertilizer facility in Xinjiang. The facility added another 50,000 metric tons of capacity for the production of the Company's organic granular fertilizers. China Agritech's total organic fertilizer capacity now consists of 200,000 metric tons of organic granular and 13,000 metric tons of organic liquid fertilizers with application to a large variety of crops.

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