Net Sales Up 49%, Pre-Tax Net Income Up 42%
HARBIN, China, Aug. 16 /Xinhua-PRNewswire-FirstCall/ -- China Kangtai Cactus Biotech, Inc. (OTC Bulletin Board: CKGT), a vertically integrated grower, developer, manufacturer, and marketer of a variety of cactus-based consumer products, today filed its report on Form 10QSB and reported its unaudited results for the period ended June 30, 2007. All results reported are in U.S. dollars.
The Company has achieved an increase in net sales of almost 49% for the second quarter of 2007, as compared with the same quarter last year, i.e. from $2,496,104 in the 2nd quarter of 2006 to $3,715,314 in the 2nd quarter of 2007. At the same time, net income increased approximately 570%, from $(196,864) in the 2nd quarter of 2006 to $925,393 in the 2nd quarter of 2007.
The negative net income for the 2nd quarter of 2006 was due to a one-time expense in the amount of $982,700 related to payment of stock based compensation in June 2006. Excluding this extraordinary one-time expense, net income before income taxes for the 2nd quarter of 2006 would have been $785,836, as compared to net income before income taxes of $1,117,794 for the second quarter of 2007. Therefore, excluding the extraordinary one-time expense incurred in the second quarter of 2006, pre-tax net income for the 2nd quarter of 2007 increased by $331,958, or approximately 42%, as compared to the pre-tax net income for the same period of 2006.
Jinjiang Wang, Chief Executive Officer of China Kangtai Cactus Biotech commented, "The healthy and significant growth in our most recent quarterly results attributed to a growing demand for our high quality cactus-based consumer products throughout China, as well as our continuing efforts to expand our production and distribution to better meet the market demand."
Wang concluded, "Our company remains focused on creating more product categories and lines for distribution and is adopting a new distribution strategy to quickly and more efficiently penetrate new markets in China. With 15 product patents and 15 pending approval, China Kangtai is the dominant leader in the cactus-based consumer product sector in China."
About China Kangtai Cactus Bio-Tech, Inc.
China Kangtai Cactus Bio-Tech 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 covers 14 provinces and 4 municipalities.
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking information about China Kangtai Cactus Bio-tech 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 Bio-tech future performance, operations and products.
This forward-looking information should be considered only in connection with "Risk Factors" in China Kangtai Cactus Bio-tech's quarterly report on Form 10QSB filed with the SEC on August 15, 2007, and its other current and periodic reports filed with the SEC. China Kangtai Cactus Bio-tech assumes no obligations to update any forward-looking statements or information set forth in this press release.
China Kangtai Cactus Bio-tech, Inc.
RedChip Companies, Inc.
800-Red-Chip, ext. 107
|SOURCE China Kangtai Cactus Biotech, Inc.|
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