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GHN Agrispan Reports Financial Results for Its Fiscal Second Quarter and Six Months Ended June 30, 2010

^{Published on 2010-08-11 05:17:05 - Market Wire}
 

XIAMEN, China--([ BUSINESS WIRE ])--GHN Agrispan Holding Company (OTCBB: GHNA), an emerging company engaged in Chinaa™s high-growth agriculture, prepared foods and catering industries, today reported financial results for the fiscal second quarter and six months ended June 30, 2010.

"We are extremely proud of our financial results as we continue to improve our overall sales while simultaneously maintaining attractive gross margins upwards of 20%"

The company reported fiscal 2010 second quarter revenue of $8.6 million, compared to approximately $5.6 million in the fiscal second quarter of 2009.* Gross profit for the same period rose to approximately $2.1 million compared to $1.1 million for the fiscal second quarter of 2009. Net income in the second quarter of 2010 was $1.7 million compared to net income of $1.0 million in 2009, resulting in an EPS of $0.04 for the second quarter of 2010.

For the six months ended June 30, 2010, revenue increased to $16.5 million, compared to $11.1 million for the six months ended June 30, 2009.* Net income increased to $3.0 million for the six months ended June 30, 2010, compared to net income of $2.1 million, for the same period in 2009, resulting in an EPS of $0.07 for the six months ended June 30, 2010.

aWe are extremely proud of our financial results as we continue to improve our overall sales while simultaneously maintaining attractive gross margins upwards of 20%,a said Ms. Xu Yizhen, CEO of GHN Agrispan. aIn many regards this has been a milestone period for the company. We become a U.S. listed public company earlier this year, we issued our 2010 annual guidance figures in late July, and we are continuing to deliver on our core business and revenue opportunities in the high-growth catering and agricultural products industries in China. As we continue to expand our facilities and solidify plans to open new agricultural plantation bases in China, we believe our second quarter results put us on track to meet our guidance figures by the end of the year.a

Ms. Yizhen added, aGiven the Chinese governmenta™s current preferential national policy towards the agricultural industry, we anticipate an increase in our agricultural products and catering business going forward. This is already taking shape through our ongoing corporate growth initiatives, as we plan to expand sales to Shanghai and Suzhou regions in the last half of 2010.a

GHN Agrispan recently became a US publicly listed company in early 2010 and is anticipated to report record levels of revenue and earnings this year due to its corporate growth initiatives and sophisticated knowledge of Chinaa™s agriculture industry. The company is committed to establishing itself as a leading purveyor of healthy foods and renowned catering services throughout Chinaa™s cities and rural areas. GHN Agrispan currently sells quality products and services with a strong emphasis on food safety to target clients, including US Fortune 500 companies, European multinational firms, as well as established Chinese private enterprises and government institutions. The company is positioned to capitalize on the rapidly-growing Chinese consumer demand, which is anticipated to continue despite the current economic downturn worldwide.

*In FY 2010, GHN Agrispan changed its method of revenue recognition from a "net" basis to a "gross" basis as a result of GHN Agrispan making direct sales to certain of its existing customers in lieu of selling through independent distributors. The 2009 pro forma revenue of $11.1 million for the six months ended June 30, 2009, and revenue of $5.6 million for the three months ended June 30, 2009 represent an adjustment to the previously reported revenue of approximately $2.6 million for the six months ended June 30, 2009, and approximately $1.3 million for the three months ended June 30, 2009, to allow for more accurate year-over-year comparisons.

Additional information regarding the companya™s results for these periods is available in a Quarterly Report on Form 10-Q to be filed with the U.S. Securities and Exchange Commission.

About GHN Agrispan Holding Company

Based in Xiamen City, China, GHN Agrispan Holding Company (OTCBB: GHNA) is an emerging Chinese operating company engaged in the high-growth agriculture, prepared foods and catering industries in China. GHN Agrispan has positioned itself to capitalize on Chinaa™s burgeoning middle class through an increasing desire for healthy food products that are free of toxins and pollutants, as well as the Chinaa™s booming catering industry, which is currently experiencing growth in the double digits. GHN Agrispana™s catering group is recognized as one of the most reputable catering services in Xiamen. The company places a strong emphasis on food safety, selling its premium products and services to target clients including: US Fortune 500 companies, European multi-national firms, as well as established Chinese private enterprises and government institutions such as banks and schools. In addition, the output from the GHN Agrispana™s fresh fruit, vegetables and other planting bases is purchased by major national supermarkets and first-tier wholesalers in developed cities throughout China.

For more information please visit the website for GHN Agrispana™s wholly-owned subsidiary, Yidong Group: [ www.ghnagrispan.com/en ]

Forward-Looking Statements

This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that can affect GHN Agrispana™s operating results, liquidity and financial condition or otherwise cause GHN Agrispana™s actual results to differ materially from those forecasted. Such factors include risks associated with economic, weather, public health and other factors affecting consumer spending, including negative changes to consumer confidence and other recessionary pressures, higher energy and labor costs, the successful implementation of GHN Agrispana™s growth strategy, including the ability of GHN Agrispan to finance its expansion plans and the mix and pricing of goods sold. The identified risk factors and other factors and risks that may affect GHN Agrispana™s business or future financial results are detailed in its filings with the Securities and Exchange Commission. These cautionary statements qualify all of the forward-looking statements GHN Agrispan makes herein. GHN Agrispan cannot assure you that the results or developments anticipated by it will be realized or, even if substantially realized, that those results or developments will result in the expected consequences for it or affect it, its business or its operations in the way it expects. GHN Agrispan cautions you not to place undue reliance on these forward-looking statements, which speak only as of their respective dates. GHN Agrispan does not undertake an obligation to update or revise any forward-looking statements to reflect actual results or changes in the GHN Agrispana™s assumptions, estimates or projections.