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Executives

Crocker Coulson – President, CCG IR

Kelviz Lim – VP, Finance

Yu Chang – President and CEO

Analysts

Howard Chow [ph]

Craig Johnson [ph]

Bru Ting Tan [ph]

China Agritech, Inc. (OTCPK:CAGC) Q2 2008 Earnings Call Transcript August 13, 2008 9:00 AM ET

Operator

Good day, ladies and gentlemen, and welcome to the China Agritech Earnings Conference Call. My name is Shauna and I will be your coordinator for today. At this time all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of this conference. (Operator instructions)

I would now like to turn the presentation over to the host for today's call Mr. Crocker Coulson. Please proceed.

(Technical Difficulty)

Crocker Coulson

Good morning, ladies and gentlemen, and good evening to those of you joining us from China. I'm Crocker Coulson from CCG, the company's investor relations firm.

I'd like to welcome all of you to China Agritech's Second Quarter 2008 Conference Call. With us today on the call our China Agritech's Mr. Kelviz Lim, the company's CFO and the company's CEO and Chairman, Mr. Yu Chang, joining us from China Agritech's headquarters in Beijing.

I'd like to remind our listeners during this call management's prepared remarks contain forward-looking statements relating to the business of China Agritech and its subsidiary companies, which are subject to risks and uncertainties. And management may make additional forward-looking statements in response to your questions.

Forward-looking statements can be identified by the use of forward-looking terminology such as "believes,” “expects,” or similar expressions, include but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives.

Such forward looking statements involve both known and unknown risks and uncertainties, including business uncertainties related to product development, marketing, and concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that cause actual results to be materially different from those described herein.

Certain of these risks and uncertainties will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to and expressly disclaims any such obligation to update or alter its forward-looking statements as a result of new information, future events or otherwise.

In addition to any projections as the company's future performance or present management's estimates as of today, August 13th 2008, China Agritech assumes no obligation to update its projections in the future as market conditions change. Those of you unable to listen to prior call at this time, we are going to make reporting available via webcast for 90 days and you can find that on China Agritech's corporate Web site.

With that those preliminary is out of way I'm now going to provide the management's discussion segment on behalf of China Agritech's CEO, Mr. Yu Chang.

Yu Chang

[Interpreted] Thank you for joining us for our second quarter 2008 conference call. We're excited to share with you a quarter of record revenues as we returned to growth after slow start to the year in the first quarter of 2008.

Our revenues for the second quarter of 2008 grew 42.8% year-over-year to $14.1 million. Our gross profit grew 25.9% year-over-year to $7.2 million. Operating income grew by 10.4% to $5 million, and net income grew by 11% to 2.9 million for fully diluted earnings per share of $0.12.

We're pleased with our financial results and also pleased to bounce back after slow start to the year due to severe winter – weather conditions in northern China which impacted overall consumption of fertilizers and caused delays and deliveries.

During the second quarter, we successfully completed many of these delays and deliveries and also expanded our customer base in central and southern regions of China contributing to a sales growth during the quarter.

Floods which affected the central and southern region of China in May impacted approximately 15% to 20% of our overall growth in the region. In spite of these floods we're happy to report 7% increase in revenue in the southern and central region during the second quarter of 2008 as compared to the prior year period.

Our gross margin declined on a year-over-year basis due to increases in costs of materials which affected the entire industry. As we are one of our suppliers largest customers we can enjoy significant marketing power in terms of pricing. Our purchasing price on humic acid, the major component for our manufacturing organic liquid fertilizers, all those remains below the market price since we have long-term contracts in place with the suppliers.

As a result of our successful cooperation with our suppliers we renewed some of their expired contracts last year. In the recent twelve months humic acid price increase and hence negotiate price in new contracts were raised. However, we believe we have a price – cost advantage relative to the prevailing market prices and are able to achieve our respectable gross margins.

We expected cost of these raw materials to be stable for the rest of 2008. Nitrogen, Phosphorus and Kalium or NPK are raw materials used for manufacturing organic granular compound fertilizers and prices of these materials have surged as well.

We expect the prices of these raw materials to continue to increase in the second half of the year and hence we reached an agreement with our suppliers to lock in future purchase prices. In this way, we will be able to minimize the impact on the gross margin of our organic compound fertilizers when the Beijing plan comes online in the second half of the year.

We have expanded our sales network considerably in China. The increased sales from different regions and increased interaction with farmers in southern and central region offers plan in our sales and marketing efforts more efficiently.

As of June 30, 2008, we have expanded our sales network throughput more than 400 distributors across China excluding (inaudible) extensive retail network a compared to 250 distributors as of June 30th 2007. We have now expanded our presence to cover 26 provinces in the PRC and have added six new provincial markets in the first half of the year.

We worked hard to develop a focus and effective promotional strategy to expand our market penetration. We usually take advantage of television advertisements to strengthen our presence in our established markets. However, in newly established regions, we plan to focus on direct sales efforts such as consultations, orientation meetings, and other forms of traditional promotions.

Based on our experience, in-person demonstrations are the most effective way to introduce benefits to our products to local farmers. We allow the farmers to experiment our products in their fields and show them they mark a difference in output.

One approach that is proving quite successful for China Agritech particularly in new markets, these are promotional campaign with the National Agro-Technical Extension and Service Center or NATSEC [ph] which was approved by the Ministry of Agriculture last quarter.

Through this program, NATSEC distributes our organic liquid fertilizers through provincial bureaus of agriculture which in turn demonstrate the benefits of our fertilizers on prod output. This endorsement by the Ministry of Agriculture resonates very well for farmers who are confident in buying government supported or recognized products and we are very excited about the future payoff to this campaign.

The Olympic Games currently being held in Beijing has affected the production schedule of our organic granular compound fertilizer facility in Beijing as the government has been much stricter issuing production certificates.

We now expect to obtain the production certificate later in this month and to begin production shortly thereafter. We expect to sell 50,000 metric tons of organic granular compound fertilizer in 2008.

We have completed financial and legal due diligence of granular fertilizer target company in Anhui province. If this facility is acquired and successfully integrated into our business the acquisition would add another 50,000 metric tons of the annual production capacity. We have also made progress on our expansion plans in Harbin and Xinjiang.

We have completed the construction of our organic compound fertilizer facility in Harbin, and currently in the stage of installing the equipment. We have also commenced construction on the Xinjiang plant for organic compound fertilizer production which is expected to be completed in the fourth quarter of 2008.

These projects will bring our total annual production capacity of organic granular fertilizer to 200,000 metric tons excluding any capacity that might be added through strategic acquisitions.

Shortly after the end of the second quarter, we made progress on our international expansion plan as well. After a year of working in coordination with the AL Ezz Group in Egypt and the Egyptian government, China Agritech was permitted to conduct test sales in the Egyptian market.

Our products underwent testing process, monitored by the Egyptian government, the test results were very positive and our Green Vitality, liquid fertilizer demonstrate superior quality compared to local brands in Egypt. We have already shipped the initial contacts of 10,000 meters of Green Vitality liquid fertilizer worth $75,000.

And we now expect to receive more orders following the receipt of quality certification by Egypt's Ministry of Agriculture. We would expect to receive the certification which permits large scale sales by the end of 2008.

With that overview, I'm now going to turn the call over to Kelviz who is going to discuss our financial results in more detail. Kelviz?

Kelviz Lim

Thanks, Crocker. Our net revenue for the second quarter of 2008 was up 42.8% to $14.1 million from $9.9 million in the second quarter of 2007. The increase in revenue is mainly attributable to expansion of our customer base in the newly established center in southern region of China.

The increase in sales for the second quarter of 2008 is also attributable to the delay delivery of partial quantity of orders for the first quarter of 2008. Due to the extended cold weather in the northern region of China, in the first quarter of 2008, the frequency of fertilizer application was affected, leading to increased delivery in the second quarter of 2008.

Our gross profit for the second quarter of 2008 was at $7.2 million, up 25.9% from $5.8 million in the second quarter of 2007. Gross margin for this quarter was 51.4%, compared to 58.3% in the second quarter of 2007. The deterioration in gross margin was primarily due to the increase in prices of raw materials and packaging materials which affected the entire industry.

The increase in prices of packaging materials were driven by surging oil prices. On a sequential basis, our gross margins improved from 49.7% in the first quarter to 51.4% in the second quarter of 2008.

Selling expenses during the quarter were $1.2 million, or 8.7% of revenue, up from $0.8 million, or 8% of revenue in the second quarter of 2007. The increase in selling expenses was primarily due to higher compensation costs from incremental salary expenses and upward adjustment on sales commission.

Commissions paid to sales representatives increased in proportion with the increase in sales during the quarter. We also incurred higher selling and marketing expenses in the newly established markets in central and southern China. Moreover, surging oil prices during the first half of the year increased our transportation expenses.

General and administrative expenses during the quarter were $1.1 million, or 7.5% of revenue, compared to $0.5 million, or 4.7% of revenue in the same period of 2007. Higher administrative expenses for the three months period ended June 30th 2008 were primarily attributable to legal and professional consulting fees such as SOX 404 and SEC maintenance and general legal advice for long-term company planning.

The addition of three new top management members to the payrolls also contributed to the increased salary expenses. We also incurred incremental general and administrative costs in the second quarter of 2008 related to the newly established geographical areas in Xinjiang and other related costs which were not incurred during the second quarter of 2007.

Finally, the administrative costs such as factory rentals expenses for the newly constructed organic granular compound fertilizer plant in Beijing also contributed to the increase in operating and administrative expenses.

Income from operations was $5 million, up 10.4% from $4.5 million in the same period of 2007. Operating margin for the quarter was 35.2% compared to 45.6% in the second quarter of 2007.

Our net income for the second quarter of 2008 was $2.9 million, up 11% from $2.6 million in the second quarter of 2007. Fully diluted earnings per share were $0.12 for this quarter compared to fully diluted earnings per share of $0.14 for the same period a year earlier. Weighted average fully diluted share for the second quarter of 2008 increased to 24.6 million compared to weighted average fully diluted share of approximately 19.1 million in the second quarter of 2007, as a result of an additional approximately 5.5 million shares of common stock issued in private placement in July 2007.

And now I'm turning to the balance sheet. As of June 30, 2008, China Agritech had $7.4 million in cash (inaudible) cash, no long-term debt and $50.8 million in working capital. Days sales outstanding as of June 30th 2008 was 196 days compared to 182 days as of June 30th 2007. We are actively sticking to improve our days sales outstanding.

In Chinese agriculture industry, there has been a trend of providing long-term credit to farmers which result in higher accounts receivable. Most of our ultimate consumer or farmer would thanks [ph] to make payment after the harvest season, which is after the third quarter.

Hence, we experience seasonality in the collection of our accounts receivable. This issue is more specific to the northern region as we have been providing long-term credit to these farmers some of whom are in business with our company, is almost twelve years ago.

We are making effort to change the situation gradually and are trying to encourage them to pay faster by giving incentive such as discounts and gifts. However, for our newly established sales package in the central and southern regions of China, we request customer to pay 20% to 30% of down payment before product delivery.

We are also providing rebate and offering lucky draws to encourage early payment. As of June 30th, 2008 we have collected approximately 50% of the sales made in the first half of the year in the central and southern regions of China.

Inventory turnover days were 85 days as of June 30th 2008, compared to 106 days as of June 30th 2007. Shareholders' equity stood at $58.1 million up from $50.9 million at year-end 2007.

We reaffirm our year-end guidelines for 2008 of expected revenue to be in the range of $54 million to $56 million and net income to 8.5 million to 9 million or earnings per share of $0.35 to $0.37 for 2008.

Now, I will turn the call back to Crocker to discuss our business outlook for 2008. Crocker?

Crocker Coulson

Thank you, Kelviz. As all you can see, China Agritech has recovered from slow start to the year, and also demonstrated relatively strong revenue growth during the second quarter. We have been successful in developing our international business with our first ever international shipment to Egypt.

We believe this is a milestone for our company and plan to work closely with potential international distributors which will enable us to capitalize on all available growth opportunities.

We also continue to focus on expanding our product sales in our domestic target markets to generate future revenue growth. The Chinese government continues to provide support to the organic food industry which we believe is very beneficial to the prospects of China Agritech.

We also believe our progress in the organic granular fertilizer compound market will help to maximize value to our customers and shareholders as we go into production in the next few months.

With that I'd like to close our call by stating that we are very positive about the prospects for this industry and for our company. I'd like to thank everyone for listening the call today. And we are now going to open it up to any questions that you have for Mr. Yu Chang or Mr. Kelviz Lim.

Operator, let's please open up the call now.

Question-and-Answer Session

Operator

(Operator instructions) And your first question comes from Howard Chow [ph]. Please proceed.

Howard Chow

Hi, hello, everyone.

Yu Chang

(Spoken in Chinese)

Kelviz Lim

Hi, Howard.

Howard Chow

Hey, congratulations for the quarter. I have a few questions for Mr. Chang first. First of all, could you provide update on your Beijing granular fertilizer facility first? More specifically, we are expanding in terms of application for manufacture and license. In the press release you said you expect to receive the license in the August. So, could you provide a little more color to for additional assurance?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

Actually, China Agritech had applied for the production certificate in June. Because of Olympics was held in Beijing now, considering about the environmental problem, the government is strict, is doing certificate to manufacturer. But the government had promised to issue this production certificate to China Agritech with the (inaudible) of that they have to start production after Olympics around September.

Howard Chow

Also, just talk a little bit on the two new granular facilities you have currently building in Harbin and Xinjiang, what are their capacities respectively? And when do you expect to start production online?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

The plant in Harbin has completed construction now and in the stage of installing equipment. After the installment, they will start equipment testing. The company expected that. They will start production at the end of September for the plant in Xinjiang, they expect to complete their construction in October for the capacity, they are around 50,000 metric tons capacity per year respectively.

Howard Chow

That sounds a little bit aggressive to me if you compare to the progression of your Beijing granular facility. I mean, does this – (inaudible) they need to apply for separate license?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

The plant in Beijing is a special case. As we know Olympics were held in Beijing and the environment protection is a concern of China's government. And for the Harbin and Xinjiang plants, they had – they are applying for production certification while they have duly applied. So the management expects that they can receive the certificate at the same time when they complete their construction.

Howard Chow

And then on the Anhui factory, do you looking to apply? How close are you? Do you think you can complete the deal?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

China Agritech had completed the due diligence and now they are leaving some issues to the target companies to be resolved. Now the target company is objecting they show hoard a structure and have some internal issues to be leaving resolved. The management expects that if everything goes well that this deal could speak loud in September.

Howard Chow

Do you think you can meet safety guidelines self – China's sales target for granular fertilizer this year and that do you have a – I mean just so roughly do you have a sales target for granular fertilizer for 2009?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

The management that they are confident to sell granular fertilizer 50,000 for 2008 and 100,000 for 2009. This is a tight schedule for the company now. Because the Beijing plant were delayed by two or three months because of Olympics, again, but they will speed up the construction of plant in Harbin and Xinjiang with the capacity in the rate plant they have confidence in producing 50,000 metric tons fertilizer and sell them in this year.

Howard Chow

And regarding the drastic flood in China, back in May and June, do you see any impact from these natural disasters on the – on your sales performance in the second half?

Yu Chang

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

Actually, the earthquake affects their sales in XinJiang, but the impact is not so significant, around 50% on their sales. But the company had expanding their promotion in XinJiang and have to (inaudible) to the big team already and to build out a good image among the farmers.

Howard Chow

And then just want to touch on the financials quickly. Kelviz, the operating expense was up in the second quarter sequentially. Do you think operating expense will remain at second quarter run rate for the rest – for the second half of '08 and then in '09? Any comments?

Kelviz Lim

Yes. The operating expenses for the second quarter of 2008 compared to the second quarter of 2007, yes, there is an increase, means the increase in the second quarter mainly resultant from this newly established geographical area and some of the rental expense for our newly rented granular fertilizers factories, and also there are some (technical difficulty) top management, three top management member, and I believe that these expenses in the third quarter it will be roughly remain the same as what it is in the second quarter.

Howard Chow

And then inventory levels seem that be high compared to historical levels. Do you think it will probably go down a little bit in the second half?

Unidentified Speaker

Yes. It definitely were going down because the main reason that we have our higher inventory for this quarter is because we have mainly consist of the raw material that we have to prepare for our upgrading our fertilizer production. Once we started our production for this granular fertilizer in end of September, or early October, these raw materials, this inventory definitely will go down.

Howard Chow

And then just lastly, your cash position was down about $2.3 million in the second quarter. So, just want to have little more color on the – your financial strength. Do you think you have sufficient financial resources for operations for the next twelve months?

Unidentified Speaker

Yes. Currently, we do have sufficient operating cash flow for the next few months, for the next twelve months, and if currently – at this point of time we are thinking that if let's say really in future we do not have sufficient financial we will consider to do some primary thing. But at this point of time, we are fine and we are sufficient with what we have right now unless in the next twelve months we have significant projects harmony, yes, definitely we will consider for that. But at this point of time our current project, our current business, the cash flow is sufficient for us to operate for the next twelve months.

Howard Chow

Thank you. I will get back into the queue.

Operator

And your next question comes from Craig Johnson [ph]. Please proceed.

Craig Johnson

Thank you. You affirmed your guidance for 2008. The original guidance was based on 22 million shares outstanding, all year long you have, 24, 27 million shares outstanding. I am just wondering….

Unidentified Speaker

I am sorry. I couldn't hear you. There is no response from our side. I couldn't hear your question.

Craig Johnson

Can you hear me now?

Unidentified Speaker

Yes. That's better.

Craig Johnson

Your original guidance was based on 22 million shares. However the share count – basically for the entire year will be 24.7 million shares. Have you adjusted that guidance or is it still based on 22 million shares?

Unidentified Speaker

Yes. Literally, the guidance is based on 24 million shares. Initially, it was on 22 and I think we have adjusted to 24.

Craig Johnson

Thank you. In terms of the potential revenue from Egypt, do you have any idea what the potential is, the potential market size and are you working on any other international sales?

Unidentified Speaker

Yes. Regarding the international sales to the Egypt, we have delivered out 10,000 liters and these 10,000 liters definitely is on the past sales. As we mentioned in the press release because in order for us to have a large scale of sales in the Egypt, we must obtain certificate from the government, Egyptian government and we expect to obtain this certificate by end of 2008. And on your next question, whether we are working with other international potential international distributor, our answer is yes. Actually, we are looking for more international potential distributor who can meet our criteria, who can work with us, meet our target.

Craig Johnson

Thank you. One other question. You have in your financials, 7% tax adjustment for net operating loss in other jurisdictions where no benefit is realized. That was 4% last year. Do you have some idea of what that will be going forward?

Unidentified Speaker

For a tax rate in China?

Craig Johnson

Your tax rate in China, I see as 25% but then you are adding another 7% on for losses in other jurisdictions where no benefits realized. That was 4% last year. That boosts up your tax rate considerably. Just wondering what the tax rate should be going forward?

Unidentified Speaker

I assume that what I am trying to see based on the effective tax rate, am I right – yes, the effective tax rate basically is a (technical difficulty) from our subsidiary we should – we cannot – I mean currently we only pay tax in one of the subsidiary for our whole group, but that the rest of the subsidiary we have not required to pay tax and these are some of the offsetting effect that you – when you calculate, you will get a higher effective tax rate. And I believe in the future trend is effective tax rate it will be reducing the costs is one of our southern and the central region of China, our subsidiary there (inaudible) expand in the future and our effective tax rate definitely will be lower compared to the effective tax rate right now. Because currently our subsidiary in the central and southern region of China, we are enjoying the tax-free for five years.

Craig Johnson

Maybe I am not –

Unidentified Speaker

Let me just clarify. For the second quarter I believe our tax rate – effective tax rate was about 30%. Statutory is now 25%. The gentleman would like to know going forward what kind of tax rate should he think about.

Unidentified Speaker

You are talking, the government tax rate or the effective tax rate?

Unidentified Speaker

Effective. What should he think about –

Unidentified Speaker

I believe that effective tax rate will be reduced in the future because let's say we can generate more – I mean our net income from our southern and central region of China, the net income is increasing due to the expansion fields. And yes, we have – we are seeing a tax all definitely it will bring down on tax rate at the end of the day.

Craig Johnson

Thank you.

Unidentified Speaker

Thank you.

Operator

(Operator instructions) And your next question comes from Bru Ting Tan [ph]. Please proceed.

Bru Ting Tan

Hi, Kelviz.

Unidentified Speaker

Hi.

Bru Ting Tan

I guess most of my questions have been answered. Could you just explain to me why the receivables in the first and half increase so substantially? I guess that's my question one.

Unidentified Speaker

You are comparing our first half against the year end 2007 days sales outstanding, am I right?

Bru Ting Tan

If you compare to in the first half it seems that the receivable increased to $1 million.

Unidentified Speaker

Actually our accounts receivable increased in the first half of 2008 compared to year end 2007. The main reason is because of the seasonality. And as I explained earlier, our peak season is in the second quarter and the third quarter of the year. And we normally will collect our accounts receivable right after the harvest season and which is in the fourth quarter. And if you look at accounts receivable as of June 30th of 2008, you compare to the accounts receivable, days sales outstanding and that 31st December 2007, definitely, the days sales outstanding will be very high to our first half year of 2008, because we will only collect of our sales that we have sold off [ph] on the first half year most likely in the third quarter and the fourth quarter of 2008. While in 2007, the accounts receivable you are comparing to is we have collected in the first quarter of 2007. That's why you will see a very high fluctuation for our accounts receivable.

Bru Ting Tan

So you are saying – compared to all collection from the second half of this year, is that what you are saying?

Unidentified Speaker

Yes. In the first quarter of the year. After the third quarter the peak season the collection will start coming (Technical Difficulty).

Bru Ting Tan

This mean your cash position will get bad in the second half of this year.

Unidentified Speaker

Normally, our cash position will improve in the second half of the year, because of the collection.

Bru Ting Tan

And also, the other question is the cash position you have now, how – I mean how can you make the acquisition? It seems to me you don't have enough financial resource to do that.

Unidentified Speaker

Yes. Regarding the acquisition, the price that we have – preliminary price that we have negotiated within our ability, within our financial resources ability that's why we have proceeded to have an acquisition. Yes. There is no problem for us to acquire if everything goes well if our current cash flow position.

Unidentified Speaker

Kelviz, you may also want to add – point out that the company has currently no debt which is fairly new role. It may provide flexibility.

Unidentified Speaker

Our company currently is debt-free. Yes.

Unidentified Speaker

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

Just now, the analyst asked – he is concerned about the company's cash flow condition, and he wanted to know where the cash is from to depart China Agritech acquisition.

Unidentified Speaker

This will be our last question.

Unidentified Speaker

Yes. Can you repeat your question just now?

Unidentified Speaker

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

Actually, China Agritech had forecasted the capital they needed toward the acquisition. And the amount is not so huge. So, the company has the ability to afford that.

Unidentified Speaker

(Spoken in Chinese)

Unidentified Speaker

(Spoken in Chinese)

Kelviz Lim

Just now – yes, I missed out that. The project in Anhui cost them about 150 million RMB for this project.

Unidentified Speaker

It's not 150 million, it's 15 million.

Unidentified Speaker

15 million.

Kelviz Lim

15 million RMB, yes, for this project.

Crocker Coulson

Thank you for that clarification. This does – we now have used the time we had planned for the call. And I like to thank everyone today for your interest in the company. If anybody wants to arrange a follow-up call with the management we're always happy to arrange that. So, please contact Cherat [ph] at CCG and we will be happy to set up a call. As you can see, the company has recovered from the slow start this year and we look forward to very much to coming back to you in mid November and talking about our progress during the third quarter of the year. So on behalf of the entire company, thanks again.

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