American Dairy Reports Q3 Net Income Increase of 66%
American Dairy, Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder and soybean products in China, today announces that it has filed its Form 10-QSB with the SEC.
Heilongjiang Province, China (PRWEB) November 22, 2004 -- American Dairy,
Inc. (OTCBB:ADIY), one of the leading producers and distributors of milk powder
and soybean products in China, today announces that it has filed its Form 10-QSB
with the SEC.
Net income increased by 66% $496,283 or 66% to $1,244,586
for the quarter ended September 30, 2004 compared to the same corresponding
quarter in 2003 of $748,303. Components of sales and expenses resulting in this
increase in net income are attributed primarily to the following factors:
1.
36% quarter-on-quarter increase in sales revenues.
2. 39% quarter-on-quarter
increase in gross profit margins. Gross profit margin improved to 47% for the
quarter ended September 30, 2004 compared to 46% for the same corresponding
quarter in 2003.
3. Distribution expenses increased by $700,217 or 34%
quarter-on-quarter to $2,765,710 for the quarter ended September 30, 2004
compared to $2,065,493 for the corresponding quarter in 2003. Variance in
selling expenses was principally attributable to the increases in advertising,
salaries, supermarket consignment fees, and transportation costs.
Sales revenues increased by $2,388,534 or 36% quarter-on-quarter to
$9,020,248 for the quarter ended September 30, 2004 compared to the
corresponding quarter in 2003 of $6,631,714.
“Increased awareness of the
nutritional benefits of drinking milk products assisted by the government and
dairy product manufacturer’s promotions and an increase in consumer purchasing
power are reasons for the favorable variance in sales revenues for the third
quarter,” said Leng You-Bin, CEO of American Dairy, Inc.
“Our extensive
sales network enhances the distribution of Feihe Dairy’s products to different
provinces. It not only enhanced the popularity of ‘Feihe’ products and
trademark, but also the expansion of Feihe Dairy group’s distribution network,
which allowed Feihe Dairy group to widen and expand the geographic scope of the
sales network and increase sales volume in existing markets,” explained Leng
“Recent scandals of some unscrupulous small dairy producers of producing
tainted milk, low milk contents and substandard production have enabled Feihe
Dairy to increase its market share,” explained CEO Leng You-Bin, “as a matter of
fact, May 2004, ‘Feihe’ was recognized by the People’s Republic of China’s
Quality Control Council as PRC’s Top 30 high quality milk powder
manufacturers.”
Certain of the statements made herein constitute
forward-looking statements that involve risks and uncertainties. In such
instances, actual results could differ materially as a result of a variety of
factors including the risks associated with the effect of changing economic
conditions at home and abroad, variations in cash flow, reliance on
collaborative retail partners, and on new product development, variations in new
product and service development, risks associated with rapid technological
change, and potential of introduced or undetected flaws and defects in products
and services and other risk factors detailed in forms filed with the Securities
and Exchange Commission from time to time.
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Source : http://www.prweb.com/releases/2004/11/prweb181328.htm