CBF China Bio-Fertilizer AG
CBF China Bio-Fertilizer: Strong profitability in the first nine months of 2011
CBF China Bio-Fertilizer AG / Key word(s): Quarter Results 09.11.2011 / 09:36 --------------------------------------------------------------------- Hamburg, Germany, 9 November 2011 - In the first nine months of 2011, the revenues of CBF China Bio-Fertilizer AG increased by 31% to RMB 101.8 million (EUR 11.3 million), from RMB 77.6 million (EUR 8.6 million) in the first nine months of 2010. Gross profit accordingly increased by 29% from RMB 57.4 million (EUR 6.4 million) in the first nine months of 2010 to RMB 73.9 million (EUR 8.2 million) in the comparable period 2011. The gross profit margin remained nearly stable at approximately 73% (74% in 2010). Profit from operations (EBIT) increased by 22% to RMB 61.0 million (EUR 6.8 million), representing an outstanding operating profit margin of 60%. Sales in the first nine months of 2011 were impacted by some farmers shifting from growing high-value crops to low-value crops in order to reduce risks in the second half of 2011. This development was due to yield losses as a result of unusual drought and floodings as well as increasing production costs for seeds, labour and chemical fertilizers. Outlook 2011 CBF products are mainly sold to high-value crops farmers as targeted customers. Due to the challenging environment especially for high-value crop farmers, demand for CBF products is below the company's ambitious sales targets from beginning of the year. Nevertheless, CBF expects to maintain growth and strong profitability. The company is targeting to generate revenues of approximately RMB 120 million (EUR 13.3 million) in the full financial year 2011 with a gross profit margin of approximately 71%. The gross margin is slightly lower than in the first nine months due to increasing raw material prices. The EBIT for the full financial year 2011 is expected to reach RMB 70 million (EUR 7.8 million). Bacteria-based biological fertilizer CBF's bio fertilizer primarily consists of two different bacteria that, when put in the ground with the conventional fertilizers convert phosphorus and potassium into a form that is easily absorbed by plants. Using this bio fertilizer reduces the need for chemical fertilizers by up to 30% and, depending on the type of plant, boosts crop yields by up to 30%. About CBF China Bio-Fertilizer AG CBF China Bio-Fertilizer AG ('CBF') produces and distributes bio fertilizer through its operating subsidiary in China. Based on its own estimates, the company is the market leader in the Chinese market for bio fertilizer. Its products reduce the use of conventional fertilizers and simultaneously boost crop yields. CBF is licensed by the Ministry of Agriculture of the People's Republic of China. The operating subsidiary of CBF 'Shandong Chengwu Jiuzhou Science and Technology Development Company Limited' was founded in Shandong Province, China, in 2005, with a view to exploiting biotechnological processes for agriculture. After three years of development work, in May 2009 the company launched its first bio fertilizer product based on microorganisms in the Chinese market under the brand name 'Xin Sheng Li'. At present CBF distributes its bio fertilizer in eleven of 26 Chinese provinces. The company intends to expand to further provinces. CBF currently sells its fertilizer directly to major agricultural cooperatives, plantations and wholesalers in China. For more information, please contact: Kirchhoff Consult AG Verena Rauch, Tel.: +49 (0) 40 60 91 86 34 verena.rauch@kirchhoff.de or go to www.chinabiofertilizer.com Disclaimer This publication constitutes neither an offer for the sale of or an invitation to buy securities of CBF China Bio-Fertilizer AG. This document is not an offer for securities for sale in the United States of America. Securities may only be sold or offered for sale in the United States of America following their prior registration in accordance with the provisions of the U.S. Securities Act of 1933 as amended or, without prior registration, only on the basis of an exemption. The shares of CBF China Bio-Fertilizer AG are not and shall not be registered in accordance with the provisions of the U.S. Securities Act of 1933 as amended and are neither sold nor offered for sale in the United States of America. This document is only distributed to and targeted at (i) persons outside of the United Kingdom or (ii) professional investors pursuant to Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or (iii) companies with assets and other persons with assets pursuant to Articles 49(2)(a) to (d) of the Order (with these persons being referred to as 'qualified persons'). All securities referred to here are available to qualified persons only and any request, offer or agreement to obtain, purchase or acquire such securities by any other means shall only be made in relation to qualified persons. Individuals who are not qualified persons should under no circumstances take action on the basis of this information or its content. End of Corporate News --------------------------------------------------------------------- 09.11.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: CBF China Bio-Fertilizer AG Schopenstehl 22 20095 Hamburg Germany E-mail: hwong@chinabiofertilizer.com Internet: www.chinabiofertilizer.com ISIN: DE000A0AFEV5 WKN: A0AFEV Listed: Entry Standard in Frankfurt End of News DGAP News-Service --------------------------------------------------------------------- 145400 09.11.2011
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