CBF China Bio-Fertilizer AG presents its prelimi- nary half year figures. Unaltered , the business development is still heavily affected by a negative trading environment which has its origin in unusual weather conditions. As the Ministry of Civil Affairs and National Disaster Reduction Committee recently announced,11,732,800 hectars of the crop area in PRC were hit by various natural disasters in the first six months 2012, resulting in a direct economic loss of 77.38 billion RMB. The rain- falls in many regions surpassed historical records, moreover, regional droughts, low temperatures and snow disasters were serious in West China.
In terms of business figures, sales decreased by 43% to EUR 4.76 million (2011: EUR 8.36 million); due to a gross margin decrease to 63.7% (2011: 74.5%), caused by an increase of raw material prices and a sale of more powder form products with lower margin in overall sales mix, gross profit fell to EUR 3.03 million (2011: EUR 6.23 million).
Mr. Tao Jiang, CEO, explains: "In the first six months 2011, we had the best half year in the history of our company. Thus, the year-over-year comparison appears more dra- matic as it really is. In Q2 2012, we already achieved better sales figures and a higher gross margin than in Q1 2012. Furthermore, we keep operating profitable and dispose of impressing financial figures, e.g. an equity ratio of 95 %, zero bank loans and cash or cash equivalents of EUR 1.8 million."
For the current business year, ongoing market difficulties assumed, CBF expects sales in a range between EUR 8-10 million and gross profit between EUR 5-7 million. Although these figures will be below the record level of 2011, they still show a very positive devel- opment.
Bacteria-based biological fertilizer
CBF's bio fertilizer primarily consist of two different bacteria that, when put in the ground with the conventional fertilizers convert phosphorus and potassium into a form that is easily absorbed by plants. Using this bio fertilizer reduces the need for chemical fer- tilizers by up to 30% and, depending on the type of plant, boosts crop yields by up to30%.