September 9, 2008

Yanglin Soy Inc. reported that its second quarter profit increased 91 percent to US$3.56 million, from US$1.86 million in the same quarter last year.

Yanglin Soy, Inc. engages in the manufacture, distribution, and sale of non-genetically modified soyoil, soy salad oil, and soymeal in the Province of Heilongjiang in China.

The company's quarterly revenues more than doubled to US$76.27 million, from US$33.9 million in the same quarter previous year.

Income from operations for the quarter was US$3.8 million, up from US$1.96 million in the same quarter prior year.

Revenues for soymeal, soyoil and salad oil all experienced triple-digit year-over-year growth; 115.2 percent, 134.7 percent and 152.3 percent, respectively, aided in part by the significant increases in the average selling prices of soy products and as well as by the growth in sales volume.

In the second quarter of 2008, sales of soymeal, soyoil and salad oil were US$42.99 million, US$24.57 million, and US$8.71 million, accounting for 56.4 percent, 32.2 percent and 11.4 percent of total revenues, respectively.

Looking ahead for the fiscal 2008, the company expects total revenues to be in the range of US$230 million - US$240 million. Net income for the fiscal year is expected to be in the range of US$13 million - US$14 million.

CEO Liu Shulin said in addition to achieving record revenues, gross profit continued to increase even though the cost of raw materials were rising.

He further added that the company continues to enjoy a tax holiday for the remainder of 2008 as it has been deemed a key leading enterprise in the agriculture industry by the Chinese government. After 2008, a review process is required to determine the extension of its tax-exempt status. The current corporate income tax rate in China is 25 percent.