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

Chai-Na-Ta Corp.

November 23, 2007 17:00 ET

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

RICHMOND, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2007) - Chai-Na-Ta Corp. (OTCBB:CCCFF), the world's largest supplier of North American ginseng, today announced a third quarter 2007 net earnings of $281,000, or $0.01 per basic share, compared to a net loss of $2.2 million, or $0.06 per basic share, in the same period last year.

Revenue remained constant at $2.0 million in the 2007 third quarter compared to the third quarter of the prior year period. The Company had a gross profit of 10% of sales revenue in the 2007 third quarter compared to a gross loss of 2% in the same period last year.

"Virtually all of our 2006 harvest root was sold by September 30, 2007 and we are now actively harvesting our 2007 root," said Derek Zen, Chairman of the Company, "Chai-Na-Ta's average selling price increased to $8.76 per pound through the third quarter of 2007 from about $5.88 per pound in 2006.

"We anticipate that ginseng prices will increase and we continue to be successful in reducing our operating and overhead costs," added Mr. Zen, "Selling, general and administrative expenses were $810,000 in the first nine months of 2007 compared to $908,000 from the same period last year."

In the nine months ended September 30, 2007, revenue increased to $7.3 million from $5.6 million in the first nine months of 2006. Net loss in the first nine months of 2007 was $1.5 million, or $0.04 per basic share, compared to a net loss of $2.7 million, or $0.08 per basic share in the same period last year.

The working capital position as at September 30, 2007 was a surplus of $2.9 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)
    Email: info@chainata.com
    Website: www.chainata.com