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China Agri-Business (CHBU.OB) Expands Dynamically, Sales Skyrocket

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

China Agri-Business, Inc., – via its Shaanxi province Chinese operating company, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., is a leading producer of organic biochemical agricultural application products.

The Company reported being ahead of its expansion schedule for the New Agriculture-Generator direct sales stores. This plan, which aims to expand the number of stores to 500, is reflected in Q2 FY10 (ended June 30) sales data, and projections indicate that CHBU will hit its targeted expansion in October this year, a full two months ahead of schedule.

Projected reports on sales data for Q2, of which direct sales stores account for roughly 84% of the total figure, are expected to increase a whopping 325%, to just under $5M, compared to 2009 figures of $1.17M.

President and CEO of CHBU, Mr. Liping Deng, noted that the skillfully rapid implementation of this bold initiative looks to be soundly validated by bolstered sales figures and increased brand awareness in key markets.

Mr. Liping Deng called this increase (of the overall footprint via expansion of the sales network) a cunning tactical maneuver which puts CHBU in prime market position with a competitive edge. Mr. Liping Deng also cited the Company’s established reputation for high-quality products, modernized management workflows, and a robust sales infrastructure, including attentive technical support for farmers, as the foundation upon which brand recognition is quickly spreading even farther across China.

Opening 101 new stores in Q2, and another 46 right after that in July – bringing the total to 346 (178 in Shaanxi, 106 in Hunan and 62 in Sichuan) – CHBU is well on its way to completing the New Agriculture-Generator initiative begun in Q4 FY08, which has been described as a genius marketing program that emphasizes direct sales and building relationships with farmers via superior support.

The Company manufactures and sells over 50 different products for stimulating growth, handling parasites, and conditioning soil, with the largest production segments being non-toxic organic fertilizers (under the Xinsheng Luyuan brand), bactericides (under the Xinsheng Lufeng brand), and other fungicidal applications, all widely known for their superior quality by Chinese farmers.

Indeed, the PRC’s own Ministry of Agriculture has a subordinate agency called the China Green Food Development Center, whose standards are so fully satisfied by CHBU products that crops grown using the Xinsheng brand are eligible to qualify for the coveted AA Green Food rating.

Instrumental on a stand-alone basis, or as supplements, CHBU’s sophisticated array of offerings are suitable for a variety of crops, from potatoes and other vegetables to fruit plants, orchard trees and even cotton.

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