April 8, 2013
China Modern Agricultural acquires land for expansion
China Modern Agricultural Information, Inc. has acquired a land of approximately 427,000 square meters to facilitate its development.
To secure the further expansion of the dairy cow breeding base, the management of China Modern recently has passed a material asset acquisition project to invest approximately US$12 million for the acquisition of the land of approximately 427,000 square meters which has been leased by China Modern.
For the three months ended March 31, 2013, the revenue is estimated to be US$11.5 million, representing an increase of 22% as compared to US$9.4 million for the same period in 2012. The revenue of the company mainly comes from the sale of fresh milk and the commission from farmers.
For the three months ended March 31, 2013, gross profit is estimated to reach US$7.4 million, an increase of US$1.36 million or 23%, as compared to US$6.0 million for the same period last year. Gross profit margin will reach 64%. Net profit is projected to be US$5.4 million, with a net profit margin of 47%, representing an increase of 18% as compared to US$4.6 million for the same period last year.
Youliang Wang, the CEO of China Modern, commented, "Due to the fast development of Chinese dairy processing industry in recent years, the demand of raw milk has been dramatically increased. In the meantime, through the strong support from the government, the company has actively carried out the new breeding model in operation, and the operating performance of the company continues to grow steadily. In the future, China Modern will make full use of the value of the acquired land to realise the industrialised operation of breeding dairy cows and create a modern and high-yield production base for high quality green milk."
China Modern Agricultural Information, Inc. is a high-tech livestock company specialising in the breeding of cows and calves, the production and sale of milk, the sale of organic fertiliser, as well as the promotion of agricultural information.
