IND DairyTech Limited reports second quarter 2009 financial results



    VANCOUVER, Aug. 31 /CNW/ - IND DairyTech Limited (TSXV 'IND', formerly
China One Corporation) ("IND") today announced financial results for the
quarter ended June 30, 2009. The unaudited consolidated interim financial
statements along with management's discussion and analysis have been filed
with SEDAR.
    Revenue for the quarter was $1,196,815 compared to $583,843 in the second
quarter of 2008. Net loss for the quarter was $1,668,257 or $0.015 per share
as compared to a loss of $939,554 or $0.013 per share in the second quarter of
2008. Revenue in the quarter includes $1,024,002 from milk sales and $172,813
from semen sales.
    During the second quarter of 2009, three co-operation farms, the Dalian
farm, the Bengbu farm and the Zhangqiu farm, started to earn revenue as their
cows started milking. However, since the volume of milk was low, the milk
could not be sold to major customers, but was sold to local small dairy
processors. Therefore the average sale prices (ranging from $0.44 (RMB 2.43)
to $0.51 (RMB 2.78)) were lower than expected and similar as those in the
first quarter of 2009. Starting July 2009, milk prices returned to a range of
$0.48 (RMB 2.80) to $0.60 (RMB 3.50) per kilogram and because the milk
production has increased, the Company has been able to supply its raw milk to
major customers, including Yili Group and Mengniu Group, two of the largest
dairy processors in China.
    At June 30, 2009, the Company had a herd size of 9,163, compared to 7,008
at the prior year end. The Company continues to acquire Chinese Holsteins from
the market and to use its inventory of over 200,000 embryos to produce
Canadian Holsteins. The Company also started to deliver 2,000 Canadian
Holsteins (aging from 8 to 14 months) to Yili Group in July 2009, which
management expects should bring the Company approximately $5.5 million (RMB
32.5 million) revenue in the second half of 2009.
    Starting in July 2009, the Company signed raw milk sales contracts with
two of the largest dairy processors in China, Yili Group and Mengniu Group,
for the Company's farms. An increasing number of cows are expected to begin
milking at those farms; therefore, the Company expects an increase in revenue
from milk production in the third quarter of 2009. On August 28, the Company
was granted a one-year term loan of $1.02 million (RMB 6 million) by a local
bank in China. The loan bears annual interest of 6.372% and is renewable at
maturity.
    The Company is actively engaged in discussions with several strategic
partners and investors in the development of current farms as well as building
joint ventures in developing new farms. There is no assurance that any of such
discussions will be successfully completed in the near future.

    ABOUT IND DAIRYTECH LIMITED

    IND, through its operating subsidiaries, is an emerging raw milk producer
in China that is seeking to become a leading provider of high quality raw milk
to the Chinese dairy industry. To meet China's increasing demand for dairy
products, the Company is using Canadian cattle genetics and North American
farming practices to establish and develop its dairy herd in China.
    The Company plans to develop its herd in China through the use of
advanced breeding techniques employing Canadian Holstein embryos that it
intends to use to impregnate surrogate cows. These embryos have been created
through in vitro fertilization using sexed semen to achieve an approximate 90%
female birth rate. The use of these advanced breeding techniques is expected
to allow the Company to rapidly expand its herd. The use of Canadian Holstein
embryos also provides a practical solution to China's ban on the import of
live Canadian cattle.

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

    FORWARD LOOKING INFORMATION

    This news release contains forward-looking statements and information
that are based on the beliefs of management and reflect IND's current
expectations. Such statements and information reflect the current view of IND
with respect to risks and uncertainties that may cause actual results to
differ materially from those contemplated in those forward-looking statements
and information.
    By their nature, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. The forward-looking information in
this news release includes revenue expected from cow sales, the number of cows
expected to begin milking, development and increases in herd size in China,
the size of IND as a Canadian Holstein dairy company in China, and the aim of
becoming a leading provider of high quality raw milk to the Chinese dairy
industry.
    There are a number of important factors that could cause IND's actual
results to differ materially from those indicated or implied by
forward-looking statements and information. Such factors include, among
others, risks related to IND's business such as failure of the business
strategy and limited operating history, reliance on farm development partners,
disruptions due to bovine diseases, dependence on biotechnology, reduction in
government support and access to raw materials; risks related to IND's
operations, such as additional financing requirements and access to capital,
the ability to repay debt, reliance on key personnel, fluctuation in feedstock
costs, fluctuations in costs of production, product spoilage and liability,
loss of embryo inventory, factors related to milk production, fluctuations in
milk prices, fluctuations in milk demand, lack of specificity in certain
agreements, litigation, indemnities, insurance, competition, intellectual
property and variations in cow lactation periods; risks related to IND and its
business generally such as potential exposure to tax under Canadian tax,
regulations of the Peoples' Republic of China (the "PRC") relating to offshore
special purpose companies, recent PRC regulations relating to cross-border
mergers and acquisitions, environmental protection, currency exchange rates
and conflicts of interest; and risks related to doing business in the PRC such
as tax, repatriation of profit and currency conversion, acquisition and
appropriation of land use rights, foreign investment, permits and business
licences, employment contracts, government intervention, shareholders' rights
and enforcement of judgments and a developing legal system.
    IND cautions that the foregoing list of material factors is not
exhaustive. When relying on IND's forward-looking statements and information
to make decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events. IND has
assumed a certain progression of its business, which may not be realized. It
has also assumed that the material factors referred to in the previous
paragraph will not cause such forward-looking statements and information to
differ materially from actual results or events. However, the list of these
factors is not exhaustive and is subject to change and there can be no
assurance that such assumptions will reflect the actual outcome of such items
or factors. For additional information with respect to certain of these and
other factors, refer to the risk factors section of IND's Management's
Discussion & Analysis for the quarter ended June 30, 2009 available on SEDAR
at www.sedar.com.
    The forward-looking information contained in this news release represents
the expectations of IND as of the date of this news release and, accordingly,
is subject to change after such date. Readers should not place undue
importance on forward-looking information and should not rely upon this
information as of any other date. While IND may elect to, it does not
undertake to update this information at any particular time except as required
in accordance with applicable securities legislation.





For further information:

For further information: James Xiang, Chief Financial Officer, IND
DairyTech Limited, (416) 886-1261, james.xiang@ind.ca

Organization Profile

IND DAIRYTECH LIMITED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890