China-Biotics, Inc. (CHBT)

[viking86]

CHBT signed 14 new bulk customers: they had 37 bulk customers by the end of last Q, so now it is 51 total. So Nevader's model (see link below) that calls for 50 bulk customers at the end of this Q is good so far. Only one of the new 14 new customers is animal feed manufacturer, this should bode well for bulk margin. Also the shift to distributor-run retail (that probably accounts for 95%+ of their retail biz now imo) should benefit much their overall margin compared to say 1/2 year ago.


China-Biotics, Inc. ("China-Biotics" or "the Company"), (Nasdaq:CHBT - News) the leading developer, manufacturer and distributor of probiotics products in China, today announced that it has signed 14 new customers for its bulk additives probiotics products.

Among the 14 small to medium sized new customers, one is animal feed manufacturer, five are functional food, nutritional product and pharmaceutical producers, and the remaining eight are dairy companies. As of the end of November, the total bulk customers increased to 51. Approximately 60% of newly signed customers are located in tier one cities such as Beijing, Tianjin etc.

Mr. Jinan Song, Chairman and CEO of China-Biotics, commented, "We believe our success in consistently winning new bulk businesses reflects the proven value of our unique solution that combines our superior proprietary products with value-added customized production service. Following nine-month of mass production and equipment fine-tuning, we are very confident that the safety and stability of our bulk additive products are now becoming our winning ticket to expand market share in China."


http://seekingalpha.com/article/225301-china-biotics-shifts-focus-to-fast-growing-chinese-food-ingredients-industry