China-Biotics, Inc. (CHBT)

[viking86]

wow, it was a long CC. They cut me off at the end as it went way into the trading hours. Or maybe they didnot want to provide a clear answer to how many tons of bulk vs. retail were sold at what ASP ? Looks to me they sold at much lower ASP than last Q ($665/kg bulk) b/c of promotions and b/c of the product mix b/w animal feed (which is very diluted) and other bulk additives for (food/dairy/pharma...) which may result in so low ASP that they didnt want to disclose ?

They didnot get any new bulk customers last Q, still 37 customers at the end of Sep but picked quite a few after that (they said over 40 now). Sequentially sales are down about 5.4% and adj eps down 16% vs. Q1. That's a disappointment that will certainly affect PPS in ST and provide LT investors a good entry/accum. point. They were still busy testing new equipment, pass government inpsections , train new employess at Qingpu although Phase I officially commenced production in Feb. I can understand that ramping up from zero to 150 tons takes its time and setbacks (same with CNAM, they cut their guidance twice so far this year b/c of startup problems with their new plant). They are still guiding for rev increase of min 50% for the FY. In the CC it was said that H2 typically makes up about 60% of annual rev and they seem very confident about being able to reproduce that result this FY.

Sorry I have stop and go to work (at my day job) now.