Bodisen Biotech Signs US$43 Million in Contracts, Sees
Record Earnings for 2006 and Continued Favorable Market
Tuesday December 6, 7:16 am
Company Updates Growth Strategies for 2006
NEW YORK--(BUSINESS WIRE)--Dec. 6, 2005--Bodisen Biotech, Inc.
(AMEX: BBC, website:/), the first China based
environmentally friendly bio fertilizer company listed on a US stock
exchange, announced today that the company has signed a total of
US$43 million in contracts for 2006 product delivery with various
new and existing wholesale distributors during two national
agricultural product trade shows which take place annually in
November in China. Bodisen expects to fill these and new orders
throughout 2006. In 2005, Bodisen signed over $20 million in
contracts in 2004 for 2005 product delivery from these trade shows.
Bodisen believes the company has existing capacity to meet these
Bodisen markets its products through over 600 nationwide
wholesale distributors who then retail the products to farms and
individual farmers. From the two trade shows, Bodisen noted that
more and more Chinese farmers are identifying Bodisen products as
quality and effective for higher crop yields. Bodisen expects this
positive trend to continue.
Bodisen sees record 4th quarter earnings as well as record 2006
earnings on organic growth from existing product lines in a
favorable market environment. Bodisen continues to experience over
30% on average net income margins across almost all products lines,
which are several times higher than those of global chemical
Bodisen provides the following information regarding recent
developments and 2006 outlook and growth strategies:
BODISEN OFFERS ENVIRONMENTALLY FRIENDLY PRODUCTS
Bodisen has proprietary technology with which it develops
environmentally friendly bio-fertilizers that are easily absorbed by
plants without the negative environmental effects of chemical
fertilizers. Over the years, soil conditions throughout China have
deteriorated due to heavy applications of chemical fertilizers.
Driven by consumer demand, farmers have become conscious of plant
quality and food safety. Bodisen notes that several global chemical
fertilizer companies have recently announced production cuts due in
part to decreased demand for their products in China. For the
Chinese market, Bodisen believes this is largely due to farmers'
shift in fertilizer preference from chemical fertilizers to
environmentally friendly bio fertilizers. Chinese farmers who use
bio fertilizers by Bodisen not only generate higher crop yields but
also are able to label their crops as organically grown "Green
Foods", which typically command much higher selling prices. Bodisen
believes its products are gaining market share rapidly in the
Chinese market at the expense of chemical fertilizer companies.
Bodisen expects this trend to continue for years to come.
BODISEN SEEKS EXPANSION IN CHINA WITH A BRANDING STRATEGY FOCUSED
ON ORGANICALLY GROWN "GREEN FOODS"
Bodisen plans to expand manufacturing and marketing efforts
throughout China's key agricultural spots primarily located in the
north east and northwest farm regions. Bodisen will expand on its
already well known brand and pursue a "Bodisen" agricultural product
branding strategy which stands for environmentally friendly, healthy
organically grown foods. The company believes this branding strategy
will further enhance product sales and profit margins.
BODISEN'S INVESTMENT INTO XILAN NATURAL GAS COMPANY SHOULD LOWER
RAW MATERIALS COSTS IN ADDITON TO A STRATEGIC INVESTMENT
Bodisen's recently announced investment in China based XiLan
Natural Gas company, the only privately owned Chinese company that
owns 120 kilometers of high pressure natural gas pipeline in China,
will significantly lower raw material costs in urea, which is a
major component of our compound fertilizer products. The XiLan
natural gas company is in the process of becoming a public company.
Once going public, it may be the first privately owned Chinese
natural gas company listed in the US. Bodisen has a 13% equity
ownership in Xilan.
Ms. Qiong Wang, CEO of Bodisen commented: "Bodisen is an
environmentally friendly company in a favorable market environment.
Bodisen has been a public company for almost two years. During this
time, our management team has been focused on earnings growth,
market share growth and corporate governance. Our shareholders have
taken notice of our stellar earnings growth as evidenced in growing
number of institutional funds owning our shares. China's
agricultural sector provides 900 million farm related jobs out of
the country's 1.3 billion in population. With proprietary
agricultural technology and less than half a percent of total
fertilizer market share, Bodisen faces tremendous growth
opportunities. With sound execution strategies, Bodisen is an access
to China's environmental solutions."
About Bodisen Biotech, Inc.
A Delaware company, Bodisen is headquartered in Shaanxi, China's
agricultural hub. The Bodisen brand is a highly recognized
fertilizer brand in China. Its environmentally friendly "green"
products support the mandate of the Chinese government to increase
crop yields for the purpose of decreasing China's dependency on food
imports. Among China's population of 1.3 billion, approximately 900
million are farmers whose incomes depend on their crop yields.
With over 60 products and approximately 600 (and growing)
nationwide distribution centers, Bodisen has experienced rapid
growth. Bodisen's products are based on proprietary agricultural
technology jointly developed by company scientists and university
laboratories. These products address grains, vegetables, and fruit
crops and have been proven to increase crop yields by 10% to 35%
while being 100% environmentally friendly.
BODISEN HAS WALL STREET RESEARCH COVERAGE
Wall Street firm New York Global Securities, Inc. ("NYGS",
www.newyorkglobal.com) provides research coverage for BBC. NYGS'
parent company New York Global Group (www.nyggroup.com) has a
significant China presence.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements are based
on the current expectations or beliefs of Bodisen Biotech, Inc.
management and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements.
Bodisen Biotech, Inc.
Source: Bodisen Biotech, Inc.