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

Chai-Na-Ta Corp.

May 09, 2011 17:00 ET

Chai-Na-Ta Corp. Reports 2011 First Quarter Results

RICHMOND, BRITISH COLUMBIA--(Marketwire - May 9, 2011) - All figures are in CDN$

Chai-Na-Ta Corp. (OTCBB:CCCFF), one of the world's largest suppliers of North American ginseng, today announced first quarter 2011 net earnings of $1,162,000, or $0.03 per basic share, compared to a net loss of $97,000 in 2010, or less than $0.01 per basic share.

Revenue increased to $3.5 million in the first quarter of 2011 from $825,000 in the prior year period. The Company has a gross profit of 48% of sales in the 2011 first quarter compared to a gross profit of 9% in the same period last year.

"We sold 44% of the inventory from our 2010 harvest by March 31, 2011 with over 90% of the remaining inventory committed to customers," said Derek Zen, Chairman of the Company. "Chai-Na-Ta's average selling price increased to $20.04 per pound in the first quarter of 2011 from $8.41 per pound in the first quarter of 2010."

"The Company is planning to cease operations in their current form after completing the harvest in 2011 and selling of the inventory from that harvest in 2012," Mr. Zen continued. "In the next twelve months, the Company will focus its attention on maximizing the yield and quality of the crops from its final harvest in Ontario in 2011."

The working capital position as at March 31, 2011 was a surplus of $7.1 million compared to a surplus of $8.7 million as at December 31, 2010.

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.

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, general business conditions and other risks as outlined in the Company's periodic filings, Annual Financial Statements 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)