good news release
production capacity has tripled,hopefully the stock price does too
Sunshine Agri-Tech loses $136,138 in third quarter 2011
Ticker Symbol: C:SAI
Sunshine Agri-Tech loses $136,138 in third quarter 2011
Sunshine Agri-Tech Inc (C:SAI)
Shares Issued 72,006,250
Last Close 11/24/2011
.045
Monday November 28 2011 - News Release
Mr. Robert Wilson reports
SUNSHINE AGRI-TECH INC. ANNOUNCES QUARTERLY FINANCIAL RESULTS
Sunshine Agri-Tech Inc. has released its interim financial results for the
period ending Sept. 30, 2011. The company also announces that it has changed
its fiscal year from Sept. 30 to Dec. 31. As a result of this change in year
end, the 12 month results for the period ending September 30, 2011 will be
included in the transition year audited financial statements for the 15 month
period ended December 31, 2011.
Interim Financial Results
Highlights
-- During the quarter ended September 30, 2011 the Company has successfully
tripled its biofeed production capacity thru a Strategic Agreement with
Jilin University announced on June 28, 2011.
-- The Company has refocused its business on the pig sector in China and
achieved a 163% increase in sales of its pig mix products. This increase
coupled with higher pig mix prices contributed to a 37.9% improvement in
revenues during the quarter compared with the same period in 2010.
-- The absence of royalty income during the quarter ended September 30,
2011 resulted in a reduction in gross margin to 12.8% compared with
19.9% during the same period of 2010.
-- Lower stock based compensation expense caused net loss to fall to
$136,138 during the quarter ended September 30, 2011 compared with a
loss of $290,962 during the corresponding period of 2010.
-- The Company maintains a strong balance sheet with $2.15 million in cash
and no debt.
"The Strategic Agreement we entered into with Jilin University provides the
production capacity to triple our biofeed business to 30,000 tonnes per year.
We have made good progress with our sales efforts into the pig marketplace
thru our Pig Mix product category and are comfortable that we can continue to
grow this business with our new capacity" stated Mr. Baojun Zhang, President
and CEO of Sunshine. "We continue to strengthen our position in the organic
feed industry thru research and development in the area of microbial feed.
Our R&D activities have been expanded thru our Strategic Agreement with Jilin
University as well as collaboration agreements with the University of
Maryland.
During the quarter ended September 30, 2011 revenues increased by 37.9%
compared with the same period of 2010. This increase in sales coupled with
lower stock based compensation resulted in a reduction in operating losses to
$136,138 during the quarter ended September 30, 2011 compared with the loss
of $436,297 during the same period of 2010.
SUMMARY FINANCIAL STATEMENTS
--------------------------------------
Three-Month Period Ended
(Unaudited)
--------------------------------------
September 30, 2011 September 30, 2010
--------------------------------------
Sales $1,438,075 $1,042,777
Gross profit 184,334 207,260
Gross margin (% of Sales) 12.8% 19.9%
Operating expenses 320,472 670,557
Loss from operations (136,138) (463,297)
Other income - 232,228
Income taxes - 59,893
Net (loss) (136,138) (290,962)
EBITDA (121,595) (228,973)
EBITDA before stock-based compensation (121,595) 269,107
Earnings per share
Basic - -
Diluted - -
Weighted average number of shares
Basic 72,006,250 49,801,167
Diluted 72,006,250 50,537,771
--------------------------------------
The absence of royalty income caused earnings before interest, tax,
depreciation and amortization (EBITDA) before stock based compensation to
decline to negative $121,595 for the quarter ended September 30, 2011 from a
profit of $269,107 during the same period of 2010.
Net loss for the quarter was $136,138 (
.00 per share) for the quarter ended
September 30, 2011 compared with a loss of $290,962 (
.00 per share) during
the corresponding quarter of 2010.
As at September 30, 2011 the Company maintained positive working capital of
$2.5 million with a cash position of $2.15 million and no bank debt.
Strategic Agreement with Jilin University
On June 28th, 2011 the Company announced that it has signed a production and
research and development agreement (the "Agreement") with Jilin University.
Under the Agreement, Jilin University, one of China's most prestigious
universities, will provide Sunshine Agri-Tech with access to its new feed
production line for the production and sale of bio-feed products. This new
production line is highly automated and has a capacity of 30,000 tonnes per
year. Based on the Company's existing capacity of 10,000 tonnes per year,
this agreement will triple the capacity of infeedmill production.
The agreement also provides for cooperation in research and development in
the areas of animal husbandry, livestock feed development and a veterinary
science under the Faculty of Agriculture.