American Dairy Reports Q2 Net Income Increase of 800%
HEILONGJIANG PROVINCE, China
American Dairy, Inc.
Investor Relations/General Information, 213-255-6228
ir@americandairyinc.com
American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soy bean products in China, today announces that it has filed its Form 10-QSB with the SEC.
Net income increased by 800% from $160,576 during the three months ended June 30, 2003 to $1,445,280 for the comparable period in 2004. Components of sales and expenses resulting in this increase in net income are attributed primarily to the following factors:
1. 51% quarter-on-quarter increase in sales
2. 106% quarter-on-quarter increase in gross profit margins. Gross profit margin improved to 52% for the quarter ended June 30, 2004 compared to 39% for the same corresponding quarter in 2003
3. 49% quarter-on-quarter increase in distribution expenses to $2,100,427. Variance in selling expenses was principally attributable to the increases in advertisements, salaries and allowances, and supermarket display and consignment.
Sales revenues increased by $3,255,161 or 51% quarter-on-quarter to $9,620,155 for the quarter ended June 30, 2004 compared to the corresponding quarter in 2003 of $6,364,994.
EPS for Q2 2004 = $0.12 per share.
EPS for Q1 2004 = $0.10 per share.
EPS Total for 6 months = $0.22 per share ended June, 2004
The company projected sales of $48,000,000 and net income before taxes of $6,000,000 or $0.48 per share by year end 2004.
"Our extensive and rapidly growing sales network has enhanced the distribution of Feihe Dairy's products to new provinces all over China. The popularity of the `Feihe' trademark is reaching even some of the most remote areas," explained Leng You-Bin, CEO of American Dairy, Inc. "Our continual strife to be the leading Chinese brand has brought us to where we are today."
"With government encouragement and support, especially for private initiatives in the industry, dairy production in China has developed steadily since 1979. Dairy farmers are emerging in large numbers: according to statistics collated by the CGBCWBDC, dairy cows in Heilongjiang Province in 1991 amounted to 618,000, an increase of 261 percent over 1983 and almost four times more than in 1982."(1)
