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[ biotech news ] Bodisen Biotech Signs US$43 Million in Contracts, Sees Record Earnings for 2006
Bodisen Biotech Signs US$43 Million in Contracts, Sees Record
Earnings for 2006 and Continued Favorable Market Environment;
Company Updates Growth Strategies for 2006
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NEW YORK-- --Dec. 6, 2005--Bodisen Biotech, Inc. (AMEX: BBC,
website: www.bodisen.com), the first China based environmentally
friendly bio fertilizer company listed on a US stock exchange,
announced today that the company has signed a total of US$43 million
in contracts for 2006 product delivery with various new and existing
wholesale distributors during two national agricultural product
trade shows which take place annually in November in China. Bodisen
expects to fill these and new orders throughout 2006. In 2005,
Bodisen signed over $20 million in contracts in 2004 for 2005
product delivery from these trade shows. Bodisen believes the
company has existing capacity to meet these demands.
Bodisen markets its products through over 600 nationwide wholesale
distributors who then retail the products to farms and individual
farmers. From the two trade shows, Bodisen noted that more and more
Chinese farmers are identifying Bodisen products as quality and
effective for higher crop yields. Bodisen expects this positive
trend to continue.
Bodisen sees record 4th quarter earnings as well as record 2006
earnings on organic growth from existing product lines in a
favorable market environment. Bodisen continues to experience over
30% on average net income margins across almost all products lines,
which are several times higher than those of global chemical
fertilizer companies.
Bodisen provides the following information regarding recent
developments and 2006 outlook and growth strategies:
BODISEN OFFERS ENVIRONMENTALLY FRIENDLY PRODUCTS
Bodisen has proprietary technology with which it develops
environmentally friendly bio-fertilizers that are easily absorbed by
plants without the negative environmental effects of chemical
fertilizers. Over the years, soil conditions throughout China have
deteriorated due to heavy applications of chemical fertilizers.
Driven by consumer demand, farmers have become conscious of plant
quality and food safety. Bodisen notes that several global chemical
fertilizer companies have recently announced production cuts due in
part to decreased demand for their products in China. For the
Chinese market, Bodisen believes this is largely due to farmers'
shift in fertilizer preference from chemical fertilizers to
environmentally friendly bio fertilizers. Chinese farmers who use
bio fertilizers by Bodisen not only generate higher crop yields but
also are able to label their crops as organically grown "Green
Foods", which typically command much higher selling prices. Bodisen
believes its products are gaining market share rapidly in the
Chinese market at the expense of chemical fertilizer companies.
Bodisen expects this trend to continue for years to come.
BODISEN SEEKS EXPANSION IN CHINA WITH A BRANDING STRATEGY FOCUSED ON
ORGANICALLY GROWN "GREEN FOODS"
Bodisen plans to expand manufacturing and marketing efforts
throughout China's key agricultural spots primarily located in the
north east and northwest farm regions. Bodisen will expand on its
already well known brand and pursue a "Bodisen" agricultural product
branding strategy which stands for environmentally friendly, healthy
organically grown foods. The company believes this branding strategy
will further enhance product sales and profit margins.
BODISEN'S INVESTMENT INTO XILAN NATURAL GAS COMPANY SHOULD LOWER RAW
MATERIALS COSTS IN ADDITON TO A STRATEGIC INVESTMENT
Bodisen's recently announced investment in China based XiLan Natural
Gas company, the only privately owned Chinese company that owns 120
kilometers of high pressure natural gas pipeline in China, will
significantly lower raw material costs in urea, which is a major
component of our compound fertilizer products. The XiLan natural gas
company is in the process of becoming a public company. Once going
public, it may be the first privately owned Chinese natural gas
company listed in the US. Bodisen has a 13% equity ownership in
Xilan.
MANAGEMENT COMMENTS
Ms. Qiong Wang, CEO of Bodisen commented: "Bodisen is an
environmentally friendly company in a favorable market environment.
Bodisen has been a public company for almost two years. During this
time, our management team has been focused on earnings growth,
market share growth and corporate governance. Our shareholders have
taken notice of our stellar earnings growth as evidenced in growing
number of institutional funds owning our shares. China's
agricultural sector provides 900 million farm related jobs out of
the country's 1.3 billion in population. With proprietary
agricultural technology and less than half a percent of total
fertilizer market share, Bodisen faces tremendous growth
opportunities. With sound execution strategies, Bodisen is an access
to China's environmental solutions."
About Bodisen Biotech, Inc.
A Delaware company, Bodisen is headquartered in Shaanxi, China's
agricultural hub. The Bodisen brand is a highly recognized
fertilizer brand in China. Its environmentally friendly "green"
products support the mandate of the Chinese government to increase
crop yields for the purpose of decreasing China's dependency on food
imports. Among China's population of 1.3 billion, approximately 900
million are farmers whose incomes depend on their crop yields.
With over 60 products and approximately 600 (and growing) nationwide
distribution centers, Bodisen has experienced rapid growth.
Bodisen's products are based on proprietary agricultural technology
jointly developed by company scientists and university laboratories.
These products address grains, vegetables, and fruit crops and have
been proven to increase crop yields by 10% to 35% while being 100%
environmentally friendly.
BODISEN HAS WALL STREET RESEARCH COVERAGE
Wall Street firm New York Global Securities, Inc. ("NYGS",
www.newyorkglobal.com) provides research coverage for BBC. NYGS'
parent company New York Global Group (www.nyggroup.com) has a
significant China presence.
Safe Harbor Statement
This press release may contain forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on the
current expectations or beliefs of Bodisen Biotech, Inc. management
and are subject to a number of factors and uncertainties that could
cause actual results to differ materially from those described in
the forward-looking statements.
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