NEW YORK--(BUSINESS WIRE)--March 28, 2006--Bodisen
Biotech, Inc., (AMEX:BBC, London AIM:BODI, website: /
first China based environmentally friendly bio fertilizer company
listed on a US stock exchange, and dually listed in London, today
announced that it achieved record earnings growth from the
production and sale of its organic fertilizer and pesticide products
The following are some of the key financial highlights for the
year ended December 31, 2005 from the company's Form 10-K filed with
the Securities and Exchange Commission (SEC) today:
2005 FINANCIAL HIGHLIGHTS
- Revenues grew 91% to approximately $31.0 million from $16.2
million in 2004.
- Gross Profit increased to $11.5 million, from $6.6 million for
the prior year.
- Comprehensive Income of $11.9 million, up 133% from same
period in 2004.
- Net Income, prior to one time financing related accounting
charges of approximately $1.4 million, grew 75% to approximately
$8.8 million, or $0.56 per fully diluted share, compared with net
income of $5.0 million, or $0.33 per fully diluted share for 2004.
Karen Qiong Wang, Chief Executive Officer of Bodisen commented,
"We're very pleased with Bodisen's continued substantial growth in
2005. Our results for the year reflect the growing demand for
environmentally friendly, high quality, high yield organic
fertilizer solutions and the increased strength of the Bodisen brand
among China's farmers."
Bodisen achieved record revenues of $30,975,350 for the year
ended December 31, 2005, up 91% from the prior year when the company
reported revenues of $16,225,896. The growth in revenue was
primarily attributable to the company's completion of a larger
manufacturing facility in March 2005 and the success of its
marketing efforts, which resulted in Bodisen increasing the number
of new contracts and retaining existing customers.
Including the impact of one-time financing related accounting
charges, Bodisen reported net income of $0.48 per share on a fully
2005 OPERATIONAL HIGHLIGHTS
- Finished construction of new manufacturing facility at the
company's current location, doubling its organic fertilizer
- Received research coverage from New York Global Securities.
- Began trading on the American Stock Exchange.
- Made a strategic investment of $2.85 million in China Natural
Gas Company (OTCBB: CHNG - News), the first
China-based natural gas public company in the U.S. capital market.
In 2005, China Natural Gas achieved record year-over-year sales
growth of more than 400% and profitability. Bodisen currently owns
more than 2 million shares of CHNG.
- Received additional two-year income tax exemption from the
People's Republic of China.
- Signed $43 million in contracts for 2006 product delivery,
exceeding total revenues for 2005.
MANAGEMENT DISCUSSION AND 2006 OUTLOOK
"Demand for organic fertilizers and pesticides continue to grow
at a high rate," said Ms. Wang. "Bodisen's more than 60 products
provide farmers throughout China with a viable, economically
attractive solution that are competitively priced compared to
traditional chemical fertilizer products. At the same time, our
products require less time to apply, create up to 35% higher crop
yields, improve soil conditions and increase potential revenues for
farmers who can sell their products as 'certified organic green
foods,' which typically achieve retail prices of 50-200% higher than
products that are not considered 'certified organic green foods.'"
"In 2006, we plan to continue to aggressively expand our market
reach, which now extends into 20 provinces throughout China. We will
continue to expand our marketing channels and production
capabilities to meet customer demand. The launch of our new raw
materials product line, Mancozeb, by mid-2006 will further enhance
our sales and profitability. In addition, we expect to have two new
production facilities fully operational by the 2007 March planting
season, giving us enough production capacity to further extend our
market reach," Ms. Wang said.
Commenting on the company's outlook for 2006, Ms. Wang continued,
"With a favorable market environment, strong balance sheet,
diversified product lines, sales contracts with more than 150
wholesale distributors, and strong brand recognition and local
presence among our loyal target customers, we expect to continue to
achieve substantial revenue growth and further enhance shareholder
value in 2006, while maintaining net income margin in the 30%
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. Utilizing proprietary agricultural technologies, Bodisen
sells over 60 packaged products, broken down into four product
categories: Organic Compound Fertilizer; Organic Liquid Fertilizer;
Pesticides & Insecticides, and agricultural raw materials.
Bodisen's organic fertilizers can be absorbed by plants within 48
hours and enrich soil conditions without the damaging effects
associated with chemical fertilizers. 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.
Among China's population of 1.3 billion, approximately 900 million
are farmers whose incomes depend on their crop yields. With
approximately 600 (and growing) nationwide distribution centers,
Bodisen has experienced rapid growth in its existing business.
BODISEN HAS RESEARCH COVERAGE IN NEW YORK AND IN LONDON
Wall Street firm New York Global Securities, Inc. ("NYGS", http://www.newyorkglobal.com/)
has research coverage for Bodisen. NYGS' parent company New York
Global Group (http://www.nyggroup.com/) has a
significant China presence and is one of the largest US firms in
China in the financial services sector. London investment bank
Charles Stanley (http://www.charles-stanley.co.uk/),
a member of the London Stock Exchange since 1852, provides research
coverage for Bodisen in London.
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.