March 16, 2007
China's AgFeed reports 75 percent growth in earnings
China's AgFeed Industries has achieved record earnings growth from the production and sale of its animal nutritional products for 2006.
Net Revenue increased 75 percent to US$8.59 million while gross profit increased 39 percent to US$3.15 million.
AgFeed acquired Guangxi Huijie Science and Technology Feed Co., Ltd in December 2006.
Guangxi Huijie serves China's vast Guangxi Province with a broad customer base.
The company was named in the 'Top Ten Suppliers of Safe Animal Food' by the Chinese Government.
Xiong Junhong, CEO of AgFeed said the results reflected continued growing demand for safe and high quality animal feed products and the increased strength of the AgFeed brand.
China's vast and fragmented animal feed industry was ranked the second largest in the world and valued at approximately US$40 billion in 2006, Xiong said.
The market is growing rapidly at a clip of 15 percent a year, the world's fastest growth in customer demand, he added.
With financing already in place for 2007, the company would continue to execute its growth strategies through organic growth and select strategic acquisitions, he said.