IND DAIRYTECH LTD REPORTS SECOND QUARTER OF 2010 FINANCIAL RESULTS
31 August 2010 - 9:00PM
PR Newswire (Canada)
VANCOUVER, Aug. 31 /CNW/ -- VANCOUVER, Aug. 31 /CNW/ - IND
DairyTech Ltd. ("IND" or the "Company") (TSXV 'IND') today
announced financial results for the quarter ended June 30, 2010.
The unaudited interim financial statements along with management's
discussion and analysis have been filed with SEDAR. Revenue for the
quarter was $7.9 million compared to $1.2 million in the second
quarter of 2009. Net income for the quarter was $3.2 million or
$0.03 per share as compared to a loss of $1.7 million in the second
quarter of last year. The current quarter's revenues include $2.8
million from raw milk sales, and $4.9 million from sales of cows.
The sales of milk increased $1.5 million from the first quarter of
2010, or an 87% growth, reflecting the increasing milking herd and
increased milk price. The gross margin of raw milk was 17%,
compared to a negative margin in the first quarter of 2010 due to
foot and mouth disease. The Company expects the farms will continue
to recover from the disease, and milk production per cow will
improve, and the sales from raw milk will continue to grow with an
increasing margin. At June 30, 2010, IND had a herd size of 17,298
(December 31, 2009: 12,858) and should continue to expand its herds
by increasing the purchase of Chinese Holsteins for embryo transfer
and artificial insemination. Management remains dedicated to its
strict quality control standards and cow herd monitoring; a total
of 1,968 cows, primarily Chinese Holsteins, were disposed in this
quarter. In this quarter the Company reported an operating loss of
$1.2 million, mainly due to a $1.0 million loss from the disposal
of cows. The Company reported a net income of $3.2 million and an
earnings per share of $0.03, mainly due to gains on its investing
activities. "The Company is still facing the challenges due to
diseases as milk productions in some farms are still affected."
said Jesse Zhu, IND's CEO and Chairman. "However we have seen the
impact of the disease fading. Management has been making efforts to
control and reduce the loss. In the coming quarters, after the
disease gone, we expect to see a positive operating income. The
Company's net income in the quarter reflects the management's
successful efforts in creating value for the shareholders and
expanding the Company through business combinations." The Company
also announces that Mr. Paul Haber and Mr. Guangyi Xu have resigned
as directors of the Company effective today and Mr. James Xiang has
resigned as VP Corporate Finance effective two months from today.
The Company would like to thank them for their services and great
contributions during their tenure. About IND Dairytech Ltd. IND,
through its operating subsidiaries, is an emerging raw milk and
Holsteins producer in China that is seeking to become a leading
provider of high quality raw milk and Holsteins to the Chinese
dairy industry. To meet China's increasing demand for dairy
products, the Company is using Canadian cattle genetics and North
American farming practices to establish and develop its dairy herd
in China. The Company plans to develop its herd in China through
the use of advanced breeding techniques employing Canadian Holstein
embryos that it intends to use to impregnate surrogate cows. These
embryos have been created through in vitro fertilization using
sexed semen to achieve an approximate 90% female birth rate. The
use of these advanced breeding techniques is expected to allow the
Company to rapidly expand its herd. The use of Canadian Holstein
embryos also provides a practical solution to China's ban on the
import of live Canadian cattle. The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or
accuracy of this release. FORWARD LOOKING INFORMATION Certain
information set out in this News Release constitutes
forward-looking information, which may include information relating
to estimates of sales and revenue of IND. Forward-looking
statements (often, but not always, identified by the use of words
such as "expect", "may", "could", "anticipate" or "will" and
similar expressions) may describe expectations, opinions or
guidance that are not statements of fact and which may be based
upon information provided by third parties. Forward-looking
statements are based upon the opinions, expectations and estimates
of management of the Company as at the date the statements are made
and are subject to a variety of known and unknown risks and
uncertainties and other factors that could cause actual events or
outcomes to differ materially from those anticipated or implied by
such forward-looking statements. In light of the risks and
uncertainties associated with forward-looking statements, readers
are cautioned not to place undue reliance upon forward-looking
information. Although the Company believes that the expectations
reflected in the forward-looking statements set out in this press
release or incorporated herein by reference are reasonable, it can
give no assurance that such expectations will prove to have been
correct. The forward-looking statements of the Company contained in
this press release, or incorporated herein by reference, are
expressly qualified, in their entirety, by this cautionary
statement. %SEDAR: 00025259E Jesse Zhu, Chief Executive Officer,
IND DairyTech Limited, 604-522-1619, jessezhu@ind.ca; Winfield
Ding, Chief Financial Officer, IND DairyTech Limited, 604-522-1619,
winfieldding@hotmail.com
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