Polo Biology Global Group Corporation Year End 2010 Financial Results

TSX Venture: PGG

VANCOUVER, April 29 /CNW/ - Polo Biology Global Group Corporation ("Polo" or the "Company") (TSXV: PGG) today announced its financial results for the three months and twelve months ended December 31, 2010.

Polo reported sales of $1,225,000 for the fourth quarter of 2010, as compared to $2,194,000 in the same period in 2009. The decline of $969,000 (44%) was the result of $671,000 less sales generated from health supplements and $287,000 less sales generated from cosmetics.

For the year ended December 31, 2010, Polo reported sales of $2,636,000, a decline of $1,378,000 (34%), compared to $4,014,000 in 2009. This decline was mainly because sales from health supplements and cosmetics decreased by $1,456,000 (36%) and partially offset by the increase in sales from ferment biology fertilizers and exports of personal care products.

The cost of sales in the fourth quarter of 2010 was $333,000, 27% of sales, compared with $472,000 and 22% of sales in the same quarter of 2009, an increase of 23% in percentage of cost of sales year over year due to the change of product mix - products with lower gross margin sold in the fourth quarter of 2010. The cost of sales for the year ended December 31, 2010 was $836,000 and 32% of sales, compared with $1,208,000 and 30% of sales in 2009, increased by 5% in percentage of cost of sales year over year due to the change of product mix.

For the three and twelve months ended December 31, 2010, operating expenses were $186,000 and $1,759,000, respectively, reduced by 69% and 45%, as compared to $598,000 and $3,198,000 in the same periods in 2009. The reduction was primarily attributable to less spending on advertising, professional fees, staff costs, meal, and travel in 2010 over 2009.

On December 30, 2010, Polo sold its equity interest in PT. Polo Global Biology Indonesia ("Polo Indonesia"), which was incorporated in 2009 under the business laws of Indonesia and had been in the process of application for sales permit since its incorporation, for a consideration of $196,000 (RMB 1,300,000) by way of a promissory note; as a result, the Company recorded a gain of $127,000 on the disposal.

In the fourth quarter of 2010, net income was $599,000, reduced by $202,000 as compared to a net income of $801,000 for the same quarter of 2009, primarily a result of sales decrease, gross margin decrease and partially offset by operating expenses reduction and gain on disposal of Polo Indonesia; net income for the year ended December 31, 2010 was $50,000, versus $31,000, an improvement of $19,000 due to the aforementioned factors.

As at December 31, 2010, Polo reported cash and cash equivalents of $222,000, and net working capital of $1,781,000. Subsequent to December 31, 2010, Polo has received cash payment of $444,000 from its customers.

"The year of 2010 continued to be a challenging period for Polo make improvements in sales," said Paul Wu, President and Chief Executive Officer of Polo Biology Global Group. "However, the costs control was effective and the disposal of Polo Indonesia generated gains; Polo expects to grow its customer base and further tighten its expenditures to ensure profitability in 2011."

As at December 31, 2010, the Company had a weighted average number of shares outstanding at 49,399,997.

About Polo Biology Global Group Corporation

The Company, through its operating subsidiaries in China, develops, manufactures and distributes health supplements, personal and homecare products across China under the Polo brand. The Company currently distributes its products through Polo Biology, which manages a network of retail outlets operated by its franchisees.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Polo Biology Global Group Corporation

For further information:

Paul Wu
Chief Executive Officer
Polo Biology Global Group Corporation
Telephone: (604) 601-8433
E-mail: info@pbggc.com

Or

Barry Sheng
Investor Relations
Polo Biology Global Group Corporation
Telephone: (604) 601-8433
E-mail: barry.m.sheng@pbggc.com

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Polo Biology Global Group Corporation

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