Chai-Na-Ta Corp. Reports 2009 First Quarter Results
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RICHMOND, BRITISH COLUMBIA, May 11 (MARKET WIRE) --
All figures are in CDN$
Chai-Na-Ta Corp. (OTCBB: CCCFF), the world's largest supplier of North
American ginseng, today announced a first quarter 2009 net loss of $0.7
million, or $0.02 per basic share, compared to a net loss of $0.5
million, or $0.01 per basic share, in the same period last year.
Revenue decreased to $2.9 million in the first quarter of 2009 from $4.2
million in the prior year period. The company has a gross loss of 0.5% of
sales revenue in the 2009 first quarter compared to a gross profit of 1%
in the same period last year.
"We have sold 37% of our 2008 harvest root by March 31, 2009 with all of
the remaining root committed to customers," said Derek Zen, Chairman of
the Company. "Chai-Na-Ta's average selling price decreased to $7.67 per
pound in the first quarter of 2009 from $10.79 per pound in the first
quarter of 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 $247,000 in the first quarter of
2009, a decrease of 5.4% from the same period last year."
The working capital position as at March 31, 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 the world's
largest supplier 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.
Contacts:
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
Copyright 2009, Market Wire, All rights reserved.
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