Chai-Na-Ta Corp. Reports 2005 First Quarter Results.RICHMOND, British Columbia This page is for the city of Richmond, British Columbia. For the federal electoral district in this locality see Richmond (electoral district); for the provincial electoral district see Richmond (provincial electoral district). -- (all amounts are in Canadian dollars) Chai-Na-Ta Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CC)(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCCFF), the world's largest supplier of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. , today announced a first quarter 2005 net loss of $0.4 million, or $0.02 per basic share, compared to net earnings of $0.5 million, or $0.02 per basic share, in the same period last year. The Company took a $111,000 provision on crop costs as a result of the Company's decision not to plant in British Columbia in 2005 due to the province-wide rust problem and the downward price pressure of ginseng grown in that region. "Although we have operations in both British Columbia and Ontario, we are ramping up our acreage in Ontario as the growing conditions and weather patterns produce ginseng that is more acceptable by customers" said William Zen, Chairman and Chief Executive Officer. Revenue declined to $0.2 million in the 2005 first quarter from $2.2 million in the prior year period. "Ginseng buyers remain hesitant to buy root and resistant to carry inventory due to concerns about currency fluctuations. We believe that this trend will continue to affect the industry," Mr. Zen said. "Chai-Na-Ta's average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. decreased to about $13 per pound in the first quarter of 2005 from about $29 per pound in the first quarter of 2004. The net loss in the first quarter of 2005 resulted mainly from the reduction in sales. Notwithstanding the volatility of ginseng prices, we anticipate an improvement in sales during the next six months," added Mr. Zen. In the quarter ended March 31, 2005, selling, general and administrative expenses were stable at $0.4 million as compared with the same period last year. Chai-Na-Ta's balance sheet remains healthy. The ratio of current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. over current liabilities still exceeds 2:1. 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. Chai-Na-Ta Corp. (TSX:CC) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CCCFF) |
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