Published:
Chai-Na-Ta Corp. Reports 2008 First Quarter Results
Chai-Na-Ta Corp. (OTCBB: CCCFF), the world's largest supplier of North American ginseng, today announced a first quarter 2008 net loss of $0.5 million, or $0.01 per basic share, compared to a net loss of $0.4 million, or $0.01 per basic share, in the same period last year.
Revenue rose to $4.2 million in the 2008 first quarter from $3.8 million in the prior year period. Gross profit margin was 1% of sales revenue in the 2008 first quarter compared to 2% in the same period last year.
"About 42% of our 2007 harvest root was sold by March 31, 2008 with most of the remaining root committed to customers," said Derek Zen, Chairman of the Company, "Chai-Na-Ta's average selling price increased to $10.79 per pound in the first quarter of 2008 from about $10.43 per pound in the first quarter of 2007.
"While 2008 will remain challenging, ginseng prices have stabilized and we are on track with our efforts to reduce operating and overhead costs," added Mr. Zen, "Selling, general and administrative expenses fell to $261,000 in the first quarter of 2008, a decrease of 8.1% from the same period last year."
The working capital position as at March 31, 2008 was a surplus of $7.1 million compared to a surplus of $7.4 million at December 31, 2007.
Chai-Na-Ta Corp., based in Richmond, British Columbia, is the world's largest supplier of North American ginseng. The Company farms, processes and distributes North American ginseng as bulk root, and supplies processed material for the manufacturing of value-added ginseng-based products.
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, the success of the Company's ongoing research programs, general business conditions, and other risks as outlined in the Company's periodic filings, Annual Report, and Form 20-F.
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