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

Chai-Na-Ta Corp.

August 15, 2007 17:00 ET

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

RICHMOND, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2007) - Chai-Na-Ta Corp. (OTCBB:CCCFF), the world's largest supplier of North American ginseng, today announced a second quarter 2007 net loss of $1.4 million, or $0.04 per basic share, compared to a net loss of $0.4 million, or $0.01 per basic share in the same period last year.

Revenue fell to $1.6 million in the 2007 second quarter from $2.4 million in the prior year period. The Company had a gross loss of 8% of sales revenue in the 2007 second quarter compared to a gross profit of 1% in the same period last year.

"About 75% of our 2006 harvest root was sold by June 30, 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 $8.76 per pound in the second quarter of 2007 from about $5.58 per pound in the second quarter of 2006."

"While 2007 will remain challenging, ginseng prices have stabilized and we are on track with our efforts to minimize operating and overhead costs," added Mr. Zen. "Selling, general and administrative expenses were $551,000 in the first half of 2007 compared to $595,000 from the same period last year."

The Company took a $1.3 million write-down on inventory in the 2007 second quarter to reduce the carrying value of specific inventory to its estimated net realizable value.

In the six months ended June 30, 2007, revenue increased to $5.3 million from $3.7 million in the first half of 2006. Net loss in the first half of 2007 was $1.8 million, or $0.05 per basic share, compared to a net loss of $567,000, or $0.02 per basic share in the same period last year.

The working capital position as at June 30, 2007 was a surplus of $3.7 million compared to a surplus of $7.5 million at December 31, 2006.

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)
    E-mail: info@chainata.com
    Website: www.chainata.com