Chai-Na-Ta Corp.
OTC Bulletin Board : CCCFF

Chai-Na-Ta Corp.

November 24, 2006 17:10 ET

Chai-Na-Ta Corp. Reports 2006 Third Quarter Results

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Nov. 24, 2006) - Chai-Na-Ta Corp. (OTCBB:CCCFF), the world's largest supplier of North American ginseng, today announced a third quarter 2006 net loss of $2.2 million, or $0.08 per basic share, compared to a net loss of $3.8 million, or $0.16 per basic share, in the quarter ended September 30, 2005.

Revenue declined to $2.0 million in the third quarter of 2006 from $4.5 million in the prior year period.

"We began our 2006 fall harvest in October, and we anticipate a better crop than 2005," said William Zen, Chairman of the Company, "We believe that the price for ginseng root has stabilized and we anticipate a moderate improvement in 2007".

Selling, general and administrative expenses were $313,000 in the third quarter of 2006, compared to $296,000 for the same period last year. During the nine months ended September 30, 2006, selling, general and administrative expenses fell to $0.9 million from $1.1 million in the comparable 2005 period.

In the nine months ended September 30, 2006, revenue increased to $5.6 million from $4.9 million in the same period last year. The gross profit margin was 1% in the nine months ended September 30, 2006 compared to a gross profit margin of 4% in the same period last year. The net loss in the nine months of 2006 was $2.7 million, or $0.11 per basic share, compared to a net loss of $5.5 million, or $0.23 per share for the corresponding period last year.

The cash used in operations was $1.4 million for the nine months ended September 30, 2006, compared with cash used in operations of $2.0 million for the same period in 2005.

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.

Contact Information

  • Chai-Na-Ta Corp.
    Wilman Wong
    Chief Financial Officer/Corporate Secretary
    (604) 272-4118 or Toll Free: 1-800-406-7668
    (604) 272-4113 (FAX)
    Email: info@chainata.com
    Website: www.chainata.com