China Agri-Business increased for 1Q of 2009

China Agri-Business, Inc. a manufacturer of biochemical agricultural application products in China，announced its financial results for the three months ended March 31, 2009.
Sales for the first quarter of 2009 totaled $469,572, an increase of $130,128, or 38.3% as compared to sales of $339,444 for the same quarter ended March 31, 2008. Net income for the quarter ended March 31, 2009 was $106,916, a decrease of 8%, or $9,412, as compared to net income of $116,328 for the quarter ended March 31, 2008. The decrease is largely a result of a non cash interest expense of $56,582, which represents amortization expense related to the convertible notes issued by the Company in September 2008. Without this expense, net income would have been $163,498, an increase of 41%.

Liping Deng, President and CEO of China Agri-Business, commented on the Company's performance: "Our revenues in 2008 were adversely affected by the natural and weather related disasters that occurred in China during 2008. While agricultural production in the affected areas has not yet fully recovered, and we expect that our sales in these areas will continue to be negatively impacted continue through the second quarter of 2009. We are hopeful that farming output will return to earlier levels over the next year."

Mr. Deng went on to say, "As an effort to offset the influence of weather conditions, we are particularly enthusiastic about our Super Chain Sales Partner Program launched in the fourth quarter of 2008. The purpose of this campaign is to establish a closer relationship with farmers through agricultural cooperatives in the rural areas of China. We expect that this effort will result in increasingly larger revenues in the future. As of March 31, 2009, 61 retailers in the Shaanxi province and approximately 39 retailers in the Hunan province have participated in the program. The revenue from those Super Chain Sales Partners was approximately $26,000 during the first quarter 2009."