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

Chai-Na-Ta Corp.

May 07, 2007 17:00 ET

Chai-Na-Ta Corp. Reports 2007 First Quarter Results

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - May 7, 2007) - Chai-Na-Ta Corp. (OTCBB:CCCFF), the world's largest supplier of North American ginseng, today announced a first quarter 2007 net loss of $0.4 million, or $0.01 per basic share, compared to a net loss of $0.2 million, or $0.01 per basic share, in the same period last year.

Revenue rose to $3.8 million in the 2007 first quarter from $1.3 million in the prior year period. Gross profit margin was 2% of sales revenue in the 2007 first quarter compared to 6% in the same period last year.

"About 45% of our 2006 harvest root was sold by March 31, 2007 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 $10.43 per pound in the first quarter of 2007 from about $4.40 per pound in the first quarter of 2006."

"While 2007 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 $284,000 in the first quarter of 2007, a decrease of 15.9% from the same period last year."

The working capital position as at March 31, 2007 was a surplus of $7.4 million compared to a surplus of $7.5 million at December 31, 2006.

The Company also announces that Mr. Peter Leung, Chief Executive Officer of the Company is stepping down effective May 4, 2007. Mr. Leung will continue to serve as a director on the Board.

The Board of the Company has appointed Mr. Wilman Wong to the position of Chief Executive Officer and Mr. Terry Luck as Chief Financial Officer replacing Mr. Wilman Wong. Both of these changes are effective on May 4, 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.

Contact Information

  • Chai-Na-Ta Corp.
    Wilman Wong
    Chief Executive Officer/Corporate Secretary
    (604) 272-4118 or Toll Free: 1-800-406-7668
    (604) 272-4113 (FAX)