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China Agri-Business, Inc. (CHBU) Reports Continued Growth for First Half of 2011

|Includes: China Agri-Business, Inc. (CHBU)

China Agri-Business, Inc. is a company on the rise. Located in Xi’an, China, the young company is a manufacturer and distributor of organic agricultural application products in China. Today, China Agri-Business took a major step towards prominence with the announcement of continued growth for the first half of 2011.

During the three months ending June 30 of this year, China Agri-Business saw net income increase by 200% to $2,256,307. The company’s total sales increased by 11% to $3,838,000 for the second quarter of 2011 compared to $3,452,574 in the second quarter of 2010.

The company displayed additional numbers to show the increase was consistent for the first six months of this year. Perhaps the greatest telltale sign for this emerging power is that their earnings per common share increased to $0.24 in the first half of 2011 compared to $0.08 in the comparable period of 2010.

To go along with these strong numbers, there were approximately 630 branded stores that sold the young company’s products under the name “Xinsheng Shiji” as of June 30, 2011. The sales from the company’s traditional sales network increased 126% for the six months ending June 30, 2011.

Much of the credit for the success of China Agri-Business has to do with the fact that the company decided to outsource the operation and ownership of its direct sales stores to subcontractors who bear the risk of these operations. Mr. Liping Deng, whom serves as the corporation’s CEO, President and Director stated, “As a direct result of the above change, our gross margin rate increased to 69% in the first half of 2011, an increase of 31 percentage points from 38% for the comparable period of 2010.”

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