SOURCE: China Modern Agricultural Information Inc.
HARBIN, CHINA--(Marketwire - Oct 29, 2012) - China Modern Agricultural Information Inc. ("the Company", "China Modern") (OTCBB: CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk and the sale of organic fertilizer, today announced net income guidance of $ 5 million or earnings per share of $0.10 based on 53.1 million fully diluted shares outstanding for the 2013 fiscal first quarter ending September 30, 2012.
The Projected Earnings of the First Quarter of 2013 Fiscal year
The projected revenue for the three months ended September 30, 2012 is expected to be $10.9 million, an increase of 119% compared with $4.98 million for the same period of last year. The revenue is primarily generated from the sales of natural milk and natural milk sales commission from farmers to which China Modern sold cows. The revenue from natural milk selling and the sales commission from farmers are forecasted to be $7.7 million and $3.3 million, respectively. The gross profit is projected to be increased by $3.7 million or 110% to approximate $7.0 million. The projected net income is $5 million, an increase of about $2.4 million or 93%, compared to the same period of last year. The projected net profit margin will be increased to 46%.
Cautionary Statement Regarding Forward Looking Information
Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our 8K/A dated March 31, 2011, and other recent filings. These filings are available at http://www.sec.gov/.