Imperial Ginseng Products Ltd.
TSX VENTURE : IGP
OTC Bulletin Board : IGPFF

Imperial Ginseng Products Ltd.

November 17, 2005 14:24 ET

Imperial Ginseng Products Ltd. Reports First Quarter 2006 Fiscal Year Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2005) - For the three-month period ended September 30, 2005, Imperial Ginseng Products Ltd. (the "Company") (TSX VENTURE:IGP)(OTCBB:IGPFF) reports revenues of $268,221 and a net loss of $153,358, or $0.01 loss per share, compared to revenues of $1,197,259 and a net loss of $254,582, or $0.02 loss per share in the prior year. Comparative figures for revenues, net income and loss per share as well as the financial position of the Company are as follows:



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Three months ended September 30, 2005 2004
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Revenue $ 268,221 $ 1,197,259
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Cost of sales 117,291 1,043,728
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Gross profit 150,930 153,531
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General and administrative expenses 309,116 410,310
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Interest and other income 4,828 2,197
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Net loss $ (153,358) $ (254,582)
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Net loss per share $ (0.01) $ (0.02)
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September 30, 2005 June 30, 2005
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Property and equipment $ 1,006,625 $ 942,210
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Total assets $ 9,348,304 $ 9,203,550
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Shareholders' Equity $ 8,492,514 $ 8,645,872
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Overview of First Quarter 2006 Financial and Operating Results

Sales revenue in the first quarter of fiscal 2006 decreased significant from the same period in the prior year because the Company reported no sales from ginseng root inventory. The Company had successfully sold and reported in the sales revenue all its fall 2004 harvest in the fiscal year ended June 30, 2005. During the first quarter in the prior year, the Company sold approximately 40,000 pound of root inventory harvested in the fall of 2003.

Since sales revenues for the three-month period ended September 30, 2005 were entirely from the Company's value-added sales from the retail stores, the Company's gross profit margin was significantly higher in the first quarter of fiscal 2006.

General and administrative expenses decreased to $0.31 million, down 24.6% from the same period in the prior year, mainly due to lower marketing and business development costs. During the three-month period ended September 30, 2005, the Company planted approximately 176 acres of ginseng and cash expenditures relating to these activities totaled $1,294,912. Compared to the same period in the prior year, 178.5 acres were planted and cash expenditures for crop activities totaled $1,064,724. For the three-month period ended September 30, 2005, cash decreased to $52,557 from $982,866 on June 30, 2005 as the Company incurred expenditures for new planting, harvesting, and garden maintenance activities.

Summary and Looking Forward

As in the prior years, the Company commenced its planting and harvesting activities in the first quarter of fiscal 2006. It is anticipated that the world ginseng root price will remain depressed in the next two quarters. The value of the Canadian dollar, which is expected to remain strong, continues to be a major concern of the Company. The Company expects it would once again meet the challenges in the forthcoming selling season. Management of the Company believes the world ginseng root prices will recover commencing in the fourth quarter of fiscal 2006 and will continue to strengthen within the next two years, when the demand for and the supply of ginseng once again reaches equilibrium.

This press release may contain forward-looking statements that reflect the Company's current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to the success of the Company's horticultural operations and the strength of the economies and currencies of Asian countries. Investors should consult the Company's ongoing quarterly filings, and annual reports for additional information on risks and uncertainties relating to the forward-looking statements. The corporation disclaims any obligations to update these forward-looking statements.

On behalf of the Board of Directors of IMPERIAL GINSENG PRODUCTS LTD.

James S. Chang, MA, MBA, CPA, President


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Imperial Ginseng Products Ltd.
    James S. Chang, MA, MBA, CPA
    President
    (604) 689-8863
    (604) 689-8892 (FAX)