China Agri-Business Reports Substantial Growth in the Third Quarter

XI'AN, China, Nov. 22, 2010 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. ("China Agri" or the "Company," OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, announced its operation results for the three months ended September 30, 2010.

Highlights For Three Months Ended September 30, 2010

• Total sales increased 471% to $3,530,563 in the third quarter 2010 compared to $617,457 in the third quarter of 2009.
• Sales of internally made products increased 192% to $1,800,843 compared to $617,457 in the third quarter of 2009
• Net income increased 261% to $895,984 in the third quarter 2010 compared to $247,818 in the third quarter of 2009
• Earnings per common share increased to $0.07 in the third quarter 2010compared to $0.02 in the third quarter of 2009

Sales from our direct sales stores amounted to $2,272,144, approximately 64% of total sales in the three months ended September 30, 2010. Sales from our super chain branded stores amounted to $272,963, approximately 8% of total sales in the three months ended September 30, 2010, an increase of $95,643, or 54%, as compared to $177,320 in the same period of 2009. Sales from our traditional sales network amounted to $985,456, an increase of $545,319, or 123%, as compared to $440,137 in the three months ended September 30, 2009.

As of September 30, 2010, the Company has 400 direct sales stores which are controlled and managed directly by the Company, and approximately 100 super chain branded stores. The majority of these direct sales stores and branded stores were located in the Shaanxi Province (local province) and some of these stores were located in the Hunan and Sichuan Provinces.

We believe that our increase in sales resulted from our New Agriculture-Generator" campaign, which was designed to expand our distribution networks and to establish a closer relationship with farmers throughout agricultural cooperatives in the rural areas of China since 2008.  

Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, Inc., commented, "We succeeded in establishing our own sales channel, which helped us to promote our products and to increase our sales. To continue this great growth momentum, we will next focus on strengthening and consolidating our direct and branded sales stores, further improving the management of those stores while continuing to expand the areas reached by our direct sales stores and to expand our sales networks to other provinces in China."

Financial Highlights

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (however, our products themselves do not bear the "AA green food" designation). The Company's two primary product groups are organic fertilizers (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton, fruit plants, and orchard trees. The products can be used alone or as supplements with other products. The Company's Xinsheng manufacturing facilities are located in Xi'an, Shaanxi province, China. For more information about China Agri, please visit http://www.chinaagri-business.com.

Forward-Looking Statements

This news release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "continue," "could," "estimates," "expects," "future," "goal," "hopes," "intends," "may," "objective," "plans," "potential," "scheduled," "seek," "should," or "will" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results or the implementation of our current plans. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A.  Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events, or otherwise. You are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition, and results of operations.

SOURCE China Agri-Business, Inc