Wednesday
August 15, 8:00 am ET
NEW YORK, Aug. 15, 2007 (PRIME NEWSWIRE)
-- AgFeed Industries, Inc. (OTCBB:AGFI.OB
- News)
(website: http://www.agfeedinc.com),
a leader in China's premix animal nutrition industry,
announced today financial results for the second quarter
ended June 30, 2007 and the first half of fiscal 2007.
The following are some of the key performance
highlights as filed with the SEC:
For the three months ended June 30,
2007, AgFeed's net income increased 510% to approximately
$1.46 million or $0.06 per fully diluted share compared
to the same period during 2006. Net revenue increased
to approximately $6.89 million, up approximately 229%,
and gross profit increased approximately $2 million
or 151% compared to the same period in 2006.
During the six month period ended June
30, 2007, AgFeed's net income increased to approximately
$2.24 million or $0.09 per fully diluted share compared
to the same period in 2006. The Company's revenues increased
to approximately $11.8 million, up 183% and gross profit
increased to approximately $3.5 million or a 123% increase,
compared to the same period in 2006.
OPERATIONAL HIGHLIGHTS:
AgFeed successfully completed $9.83
million in two rounds of equity financing during the
first half of 2007 with institutional and accredited
investors led by an affiliate of global strategic investment
firm -- Apollo Management. The Guangxi Huijie subsidiary,
acquired in December of 2006, contributed approximately
27% of the Company's revenues and approximately 26%
of the total volume of products sold during the period.
The Airubao Series of products that the Company introduced
earlier this year was very successful, contributing
approximately $5.3 million in sales. Dr. Lixiang Zhang,
Mr. John Egan, Jr., and Mr. Robert Masucci were appointed
to the Board of Directors as independent members. Mr.
Nicholas Giordano was retained by the Company as a strategic
advisor.
MANAGEMENT COMMENTS:
Mr. Junhong Xiong, CEO of AgFeed commented,
"In a favorable market environment in which pork
prices have continued to increase in China, we see continued
market expansion and growth in our premium animal feed
industry. As one of the leaders in China's market for
premix animal nutritional products, AgFeed has achieved
strong revenue and net income growth through the introduction
of new products, the successful acquisition and integration
of our Guangxi Huijie operating subsidiary, and the
opening of more retail chain stores. To date, we have
opened over 250 chain stores and anticipate continued
growth throughout 2007.''
Mr. Xiong continued: "Rising consumer
incomes across China lead to greater demand for better
and more meat products which encourage hog farmers to
substantially increase stock in animal production. Market
demand for our premium animal feed products benefits
from such industry demand and our business remains strong.
We are confident that AgFeed is on track to continue
achieving revenue and profit growth throughout 2007.''
Songyan Li, Ph.D., Chairman of AgFeed
commented, "We appreciate the much valued strategic
guidance from our highly experienced independent board
members and advisors. AgFeed will continue to grow our
business while remaining focused on strong corporate
governance.''
About AgFeed Industries, Inc.
AgFeed Industries is a China-based
animal nutritional product company whose securities
are publicly traded in the United States. Through its
operating subsidiaries in China, AgFeed is a leading
manufacturer, marketer and distributor of premix animal
nutrition products targeting China's growing animal
feed market. China's animal feed market was approximately
$40 billion in 2006 according to China Feed Industry
Association.
Safe Harbor Statement
All statements in this press release
that are not historical are forward-looking statements
made pursuant to the "safe harbor'' provisions
of the Private Securities Litigation Reform Act of 1995.
You are cautioned not to place undue reliance on any
forward-looking statements in this press release as
they reflect AgFeed's current expectations with respect
to future events and are subject to risks and uncertainties
that may cause actual results to differ materially from
those contemplated. Potential risks and uncertainties
include, but are not limited to, the risks described
in AgFeed's filings with the Securities and Exchange
Commission, including, but not limited to, our Quarterly
Report on Form 10-QSB for the quarter ended June 30,
2007 that we filed with the Securities and Exchange
Commission on August 14, 2007.
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