American Dairy Reports Q2 Net Income Increase of 800%.HEILONGJIANG PROVINCE, China -- American Dairy, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ADIY), one of the leading producers and distributors of milk powder and soy bean bean, name applied to the seeds of leguminous trees and shrubs and to various leguminous plants of the family Leguminosae (pulse family) with edible seeds or seed pods (legumes). The genera and species encompassed by the term bean are many and variable. products in China, today announces that it has filed its Form 10-QSB with the SEC. Net income increased by 800% from $160,576 during the three months ended June 30, 2003 to $1,445,280 for the comparable period in 2004. Components of sales and expenses resulting in this increase in net income are attributed primarily to the following factors: 1. 51% quarter-on-quarter increase in sales 2. 106% quarter-on-quarter increase in gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . Gross profit margin improved to 52% for the quarter ended June 30, 2004 compared to 39% for the same corresponding quarter in 2003 3. 49% quarter-on-quarter increase in distribution expenses to $2,100,427. Variance in selling expenses was principally attributable to the increases in advertisements, salaries and allowances, and supermarket display and consignment The delivery of goods to a carrier to be shipped to a designated person for sale. A Bailment of goods for sale. A consignment is an arrangement resulting from a contract in which one person, the consignor, either ships or entrusts goods to another, the . Sales revenues increased by $3,255,161 or 51% quarter-on-quarter to $9,620,155 for the quarter ended June 30, 2004 compared to the corresponding quarter in 2003 of $6,364,994. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for Q2 2004 = $0.12 per share. EPS for Q1 2004 = $0.10 per share. EPS Total for 6 months = $0.22 per share ended June, 2004 The company projected sales of $48,000,000 and net income before taxes of $6,000,000 or $0.48 per share by year end 2004. "Our extensive and rapidly growing sales network has enhanced the distribution of Feihe Dairy's products to new provinces all over China. The popularity of the `Feihe' trademark is reaching even some of the most remote areas," explained Leng You-Bin, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American Dairy, Inc. "Our continual strife to be the leading Chinese brand has brought us to where we are today." "With government encouragement and support, especially for private initiatives in the industry, dairy production in China has developed steadily since 1979. Dairy farmers Dairy Farmers is one of Australia's largest and oldest dairy manufacturers, established in 1900, supplying products to local and international markets such as eastern Europe, the Middle East and Asia. are emerging in large numbers: according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. statistics collated by the CGBCWBDC, dairy cows in Heilongjiang Province in 1991 amounted to 618,000, an increase of 261 percent over 1983 and almost four times more than in 1982."(1) Certain of the statements made herein constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. (1) http://www.fao.org/docrep/V0600T/v0600T07.htm |
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