China Agri-Business Successfully Implemented "New Agriculture-Generator" Campaign in 2010

XI'AN, China, April 6, 2011 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. (the "Company," OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, announced its operating results for the year ended December 31, 2010. Revenue increased 304% to $12 million, compared to $3 million in 2009. Net income for 2010 increased to $3.6 million, or $0.28 per basic and diluted share, compared to net income of $1.1 million, or $0.08 per basic and diluted share in 2009.

2010 Financial Highlights

• The revenue from branded and outsourced direct sales stores was $9,243,632 in 2010, an increase of $8,209,639, or 794%, compared to $1,033,993 in 2009.
• The revenue from our national sales network was $3,023,072 in 2010, an increase of $1,018,505, or 51%, compared to $2,004,567 in 2009.
• Revenue from our manufactured products was $6,360,315 in 2010, an increase of $3,321,755, or 109%, compared to $3,038,560 in 2009.
• Revenue from sales of products manufactured by third parties was $5,906,389 in 2010 as compared to none in 2009.
• The gross profit margin of our internally made products was 66% and 65% for the years ended December 31, 2010 and 2009, respectively.
• The gross profit margin for our retail sales of fertilizer products from other manufacturers in our direct sale stores was 21% for the year ended December 31, 2010.

Mr. Liping Deng, Chief Executive Officer, President, and Director of the Company, commented, "We believe that the increase in sales in 2010 was primarily attributable to the successful implementation of our "New Agriculture-Generator" campaign, which was designed to expand our distribution network and to establish a closer relationship with farmers through agricultural cooperatives in the rural areas of China. To better facilitate our further development, we outsourced our direct sales stores beginning from December 2010. We will refer our super chain stores and outsourced stores together as "Xinsheng Shiji Branded Stores". We not only provide our products to these Xinsheng Shiji Branded Stores, but also provide training and other support services to establish customer loyalty and to attract new customers."

As of December 31, 2010, there were approximately 500 Xinsheng Shiji Branded Stores. The majority of branded stores are located in Shannxi Province (local province); others are located in Hunan and Sichuan provinces. For the year ended December 31, 2010, approximately 75% of revenue was generated from our Xinsheng Shiji Branded Stores, and 25% from our national sales network.

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