Dallas, Texas (November 28, 2011) – StockGuru Shines its Spotlight on Chai-Na-Ta Corp. (OTCBB: CCCFF), one of the world’s largest suppliers of North American ginseng. The Company announced on Friday, third quarter 2011 net earnings of $787,000, or $0.02 per basic share, compared to net earnings of $498,000 in 2010, or $0.01 per basic share. All figures are in Canadian Dollars. The Company closed on November 25, 2011, at $0.171, trading in a fifty-two week range of $0.21 – 0.03.
Revenue decreased to $1.7 million in the third quarter of 2011 from $2.9 million in the prior year period. The Company has a gross profit of 48% of sales in the 2011 third quarter compared to a gross profit of 20% in the same period last year.
“We sold 98% of the inventory from our 2010 harvest by September 30, 2011 with the remaining inventory sold in October,” said Derek Zen, Chairman of the Company. “Chai-Na-Ta’s average selling price increased to $19.24 per pound in the first nine months of 2011 from $8.60 per pound in 2010.”
“We are now actively harvesting our 2011 crops,” Mr. Zen continued, “and the Company is on track to cease operations in their current form after completing this harvest and selling the inventory in 2012. The Company will continue to evaluate new business ventures, but has begun planning for the repatriation of funds to the shareholders once the inventory and operating assets have been sold.”
In the nine months ended September 30, 2011, revenue increased to $9.1 million from $5.7 million in the first nine months of 2010. Net earnings in the first nine months of 2011 were $3.5 million or $0.10 per basic share, compared to net earnings of $289,000 or $0.01 per basic share in the same period last year.
The working capital position as at September 30, 2011 was a surplus of $9.4 million compared to a surplus of $8.7 million as at December 31, 2010.
Chai-Na-Ta Corp., based in Richmond, British Columbia, is one of the world’s largest suppliers of North American ginseng. The Company farms, processes and distributes North American ginseng as bulk root.
This news release contains forward-looking statements that reflect the Company’s expectations regarding future events. These forward-looking statements involve risks and uncertainties, and actual events could differ materially from those projected. Such risks and uncertainties include, but are not limited to, general business conditions and other risks as outlined in the Company’s periodic filings, Annual Financial Statements and Form 20-F.
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