BBC - Bodisen Biotech
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Bodisen Biotech, Inc. Will Report Record 3rd Quarter Earnings, Bodisen Makes Strategic Investment into Chinese Natural Gas Company
Thursday October 6, 4:27 pm ET
NEW YORK--(BUSINESS WIRE)--Oct. 6, 2005--Bodisen Biotech, Inc. (Amex: BBC - News; website: www.bodisen.com) announced today that it has made a strategic investment of $2.853 million for a 12.9% equity stake into China based Xi Lan Natural Gas Co., Ltd., one of the two natural gas companies serving the city of Xi'An, home of the Terra Cotta soldiers and one of the largest Chinese cities with a population of over seven million. In addition, Bodisen will report record 3rd quarter earnings for the quarter ending September 30.
Ms. Qiong Wang, Bodisen's Chairman & CEO commented: "Natural gas is used for the production of urea, one of the key ingredients in the manufacturing of our compound fertilizer products. Through our strategic investment into the profitable Xi Lan Natural Gas Company, we will gain substantial cost savings for urea since Xi Lan has plans under way to serve one of the largest urea manufacturers in the Shaanxi province. As we continue to expand our production capacity and foresee our greater demand for urea in anticipation of strong customer demand for Bodisen products in 2006 and beyond, we believe that this investment makes short term and long term strategic sense and our Board of Directors sees significant economic benefits to Bodisen."
Ms. Wang further commented: "In the third quarter of 2005, we experienced strong sales across almost all product lines. We will report record third quarter earnings. Due to the fall harvest season for our end user, the Chinese farmers, the second half of each year is the time when many of our account receivables are collected. Historically, Bodisen has inconsequential bad debts since the inception of the company. We have a strong cash flow and a strong balance sheet. Bodisen is on track for strong 2005 financial results as well." |
