Net income went up 75% to approximately $1.18 million. Net Revenue increased to approximately $8.59 million. Gross Profit increased to approximately $3.15 million, up 39% from 2005.
acquired Guangxi Huijie Science and Technology Feed Co., Ltd in December 2006. Guangxi Huijie is a market leader serving China’s vast Guangxi Province with a broad customer base. In addition, the company was named one of China’s ‘Top Ten Suppliers of Safe Animal Food’ by the Chinese Government.
Simple business model
Mr. Xiong Junhong, CEO of AgFeed commented, “Our results for the year reflected continued growing demand for safe and high quality animal feed products and the increased strength of the AgFeed brand.
AGFI has a simple business model: serving China’s vast and highly fragmented animal feed industry, which is ranked the 2nd largest in the world valued at approximately $40 billion in 2006. With annual growth of approximately 15%, China’s animal feed industry enjoys the world’s fastest growth in customer demand as China’s population gets wealthier and demand for meat products increases substantially. In 2007, with our strategic financing already in place, AGFI will continue to execute our growth strategies through organic growth and select strategic acquisitions.”