Tanke BioSciences Sees Significant Improvement In Revenue And Operating Results For 2012
NEW YORK, July 31, 2012 /PRNewswire/ – Tanke BioSciences Corporation (OTCQB: TNBI), a leading producer of livestock feed additives and nutritional products, today said the strengthening pork industry in China and incremental sales generated from formation of a new marketing division should result in a significant improvement in both revenue and operating results in 2012 vs. 2011.
According to Tanke CEO and chairman, Mr. Guixiong Qiu, the company has benefitted from a sharp reduction in the prevalence of pig diseases that reached their peak in China in 2011. These diseases, which caused a sharp reduction in the nation’s population of healthy pigs – and thus, a corresponding decrease in demand for animal feed additives – has this year been brought under tighter control, elevating both the population of healthy pigs and the demand for animal feed additives. The company expects this increased demand to continue for the balance of the year and into 2013, said Mr. Qiu.
The new marketing division, he added, will be devoted exclusively to serving the product and technical needs of China’s larger animal farms – which, as end users of Tanke products, allow the company to realize substantially higher margins and lower marketing costs than do intermediary users such as animal feed producers.
These efficiencies, coupled with the added sales generated by new and existing products marketed by the new division, are expected to boost profit growth in 2012 and beyond, said Mr. Qiu.
Mr. Qiu added that he also expects Tanke’s business to benefit as a result of new regulations, taking effect on May 1, 2012, governing the production and distribution of animal feed additives throughout China. These regulations, enacted by the nation’s highest authority, the State Council of China, impose dramatically higher fines and penalties on those animal feed additive companies not meeting the new standards. As a result, many companies – mainly those which have traditionally competed on the basis of price but which have often been cited for serious deficiencies in product quality – are expected to be driven from the marketplace, enabling compliant animal feed additive suppliers like Tanke to gain a proportionally larger market share.
Finally, as previously reported, a new plant for the production of organic trace minerals, due to be completed in the second quarter of 2013, is expected to further augment the company’s nation-leading market share of this rapidly-growing product sector.
About Tanke BioSciences Corporation
Founded in 1997, Tanke BioSciences Corp. (http://tanke-bio.com/) is a China-based integrated biotech company that develops, manufactures, and markets animal feed additives and livestock nutritional products that directly address China’s soaring demand for safe, reasonably priced food. All Tanke products are free of genetically modified organisms (GMOs), antibiotics, and are 100 percent environment-friendly, making them optimal for animal consumption. For investor information, please go to http://ir.stockpr.com/tankebio/overview.
This press release and the statements of representatives of our officers, directors, employees and representatives related thereto contain or may contain forward-looking statements which are based upon the current beliefs and expectations of our management. Such statements contained in this release are based on management’s exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words “guidance,” “projects,” “may,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “ultimately” and words of similar import, are intended to identify any forward-looking statements. The information contained in the forward looking statements is inherently uncertain, and our actual results may differ materially due to a number of factors, many of which are beyond our ability to predict or control, including, among others: (i) changes in the level of consumer spending or preferences or demand for our products; (ii) pressures from competition; (iii) our ability to hire and retain key personnel and our relationship with our employees; (iv) the performance of our distributors and other key vendors; (v) effectively carrying out and managing our growth strategies; (vi) failure to maintain the value and image of our brand and protect our intellectual property rights; (vii) seasonality; (viii) costs of materials and labor; (ix) sales, manufacturing, supply or distribution difficulties or disruptions; (x) compliance with or changes in Chinese, U.S. or international laws and regulations; (xi) costs as a result of operating as a public company; (xii) material weaknesses in internal controls; (xiii) interest rate and foreign currency risks; (xiv) our ability to maintain our land use and drug manufacturing rights in China; (xv) general economic and industry conditions in China and internationally, and other risks as more fully detailed in our filings with the Securities and Exchange Commission (“SEC”). Our filings with the SEC are available at www.sec.gov. You are urged to consider these factors carefully in evaluating our forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements which are qualified in their entirety by this cautionary statement. The forward-looking statements speak only as of the date on which they are made, and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances unless as required by applicable laws or regulations.
Rick Eisenberg Eisenberg Communications
SOURCE Tanke BioSciences Corporation