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

Chai-Na-Ta Corp.

November 27, 2009 17:00 ET

Chai-Na-Ta Corp. Reports 2009 Third Quarter Results

RICHMOND, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2009) - All figures are in CDN$

Chai-Na-Ta Corp. (OTCBB:CCCFF), one of the world's largest suppliers of North American ginseng, today announced a third quarter 2009 net loss of $136,000, or less than $0.01 per basic share, compared to a net loss of $2.0 million, or $0.06 per basic share, in the same period last year.

Revenue increased to $1.3 million in the third quarter of 2009 from $866,000 in the prior year period. The company has a gross loss of 7% of sales revenue in the 2009 third quarter compared to no gross margin in the same period last year.

"We had sold 56% of our 2008 harvest root by September 30, 2009 with the entire remaining root committed to customers," said Derek Zen, Chairman of the Company, "Chai-Na-Ta's average selling price decreased to $8.80 per pound in the first nine months of 2009 from $9.54 per pound in 2008.

"While 2009 will remain challenging, we are on track with our efforts to reduce operating and overhead costs," added Mr. Zen, "Selling, general and administrative expenses fell to $704,000 in the first nine months of 2009, a decrease of 3.4% from the same period last year."

In the nine months ended September 30, 2009, revenue decreased to $6.0 million from $7.6 million in the first nine months of 2008. Net earnings in the first nine months of 2009 was $654,000, or $0.02 per basic share, compared to a net loss of $2.6 million, or $0.08 per basic share in the same period last year.

The working capital position as at September 30, 2009 was a surplus of $4.9 million compared to a surplus of $5.5 million at December 31, 2008.

Chai-Na-Ta Corp., based in Richmond, British Columbia, is one of the world's largest suppliers 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)
    info@chainata.com
    www.chainata.com