Asia Bio-Chem Group Co. Ltd. (“Asia Bio-Chem” or the “Company”), through its wholly-owned subsidiary Changtu Bio-Chemical and Technology Co. Ltd. (“Changtu”) is a leading manufacturer in China of corn starch and related byproducts. The Company produces corn starch, corn germ, gluten and fibre per year for the Chinese domestic market, which has been experiencing robust demand for agriculture products.
China has become a leading manufacturer of corn starch over the last 10 years, now representing approximately 20% of global production in 2006. In addition, the Chinese market for corn starch has been growing at an annual rate of 20% over the past 3 years, reaching 11.4 million tonnes/year in 2006.
For the twelve-month period ending December 31, 2007, Asia Bio-Chem’s revenues and pre-tax operating income were $75.9 million and $16.0 million, respectively. From 2005 to 2007, revenue and operating income has grown at rate of 39% and 49%, respectively. Operating margins have consistently become stronger from 18.3% in 2005 to 21.1% in 2007. |
|
