Chinese AgFeed reports record earnings
The first China-based animal feed and nutritional product company, AgFeed Industries, has achieved record earnings growth from the production and sale of its animal nutritional products in 2006.
Net income went up 75% to approximately $1.18 million. Net Revenue increased
to approximately $8.59 million. Gross Profit increased to approximately $3.15
million, up 39% from 2005.
Acquisitions
AgFeed acquired Guangxi Huijie Science and Technology
Feed Co., Ltd in December 2006. Guangxi Huijie is a market leader serving
China’s vast Guangxi Province with a broad customer base. In addition, the
company was named one of China’s ‘Top Ten Suppliers of Safe Animal Food’ by the
Chinese Government
Simple business model
Mr. Xiong Junhong, CEO of AgFeed
commented, “Our results for the year reflected continued growing demand for safe
and high quality animal feed products and the increased strength of the AgFeed
brand.
AGFI has a simple business model: serving China’s vast and highly
fragmented animal feed industry, which is ranked the 2nd largest in the world
valued at approximately $40 billion in 2006. With annual growth of approximately
15%, China’s animal feed industry enjoys the world’s fastest growth in customer
demand as China’s population gets wealthier and demand for meat products
increases substantially. In 2007, with our strategic financing already in place,
AGFI will continue to execute our growth strategies through organic growth and
select strategic acquisitions.”
Related news
stories:
AgFeed honoured in China’s top ten
AgFeed acquires Guangxi Huijie Feed
Related
link:
AgFeed
Industries
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