shareholdersunite.com

We’re still adding to this page, so it’s not complete yet (actually, can it ever be ‘complete’?)

Some metrics

• Insiders own 61%
• Cash $13.63M, Debt $3.68M
• Operating margin 44.61%
• Revenue growth 99.4%
• Earnings growth 132.7%

Products

• We, through our indirect wholly owned subsidiaries, Techteam and Jintai, have two business segments: (i) research, development, production and distribution of humic acid based liquid compound fertilizer (conducted through Techteam); and
• (ii) development, production and distribution of agricultural products (conducted through Jintai), namely, top-grade fruits, vegetables, flowers and colored seedlings.
• The fertilizer business has been our main business which generated 77.6% and 79.4% of our total revenues in the three months ended March 31, 2009 and 2008, respectively. In the nine months ended March 31, 2009 and 2008, the fertilizer business has generated 78.6% and 77.1% of our total revenues, respectively. [10-Q Q109p24]
• Jintai’s net sales, which include sales of agricultural products, namely top-grade fruits, vegetables, flowers and colored seedlings by using our existing and new fertilizers, increased $1,062,547, or 116.2%, to $1,977,180 for the three months ended March 31, 2009 from $914,633 for the same period in 2008. This increase was largely due to the strong sales of our various decorative flowers, mainly butterfly orchids, big orchids and red leaf flowers during this year’s holiday seasons. The sales for these three products accounted for 82.6% of Jintai’s sales for the three months ended March 31, 2009. [10-Q Q109p26]
• Jintai, Techteam’s wholly owned subsidiary, was formed for the research and development of humic acid fertilizers produced by Techteam. In the process of testing Techteam’s fertilizers, it produces top-grade fruits, vegetables, flowers and colored seedlings for commercial sale. Jintai produces the following categories of products:
• ∙    Top-grade flowers: including principally, faber cymbidium and phalaenopsis. Those two kinds of flowers are mainly distributed to the middle and high end consumers in Shaanxi Province and its adjacent areas. Their seedlings are distributed across the country, especially the southern regions of China.
• ∙    Green vegetables and fruits: including, principally, Holland cucumbers, sweet and colored pimientos and eggplant and Japanese watermelons which are distributed to middle and high-end consumers in Shaanxi Province, especially in Xi’an city.
• ∙    Multicolored seedlings: including, principally, photinia serrulata which are distributed to customers across China. [10-K FY08p7]
• We believe that TechTeam has one of the most advanced automated humic acid production lines in China. Humic acid is a complex natural, organic ingredient that is essential for a balanced, fertile soil. It is one of the major constituents of organic matter in fertile soil, making a vital contribution to the quality of the soil’s composition. When plant or animal matter decomposes, it naturally turns into a form of humic acid-rich material, such as peat, lignite or weathered coal. Humic acid exhibits a high capacity for cation exchange (a chemical process in which cations of like charge are exchanged equally between a solid and a solution.) which serves to chelate plant nutrient elements and release them as the plant requires. The chelation process holds the nutrients in the soil solution and prevents them from leaching and prevents runoff. Moreover, humic acids can bind soil toxins along with plant nutrients, thereby strongly stabilizing soils.
• The regular use of humic acid organic liquid compound fertilizer can reduce the use of fertilizer, insecticide, herbicide and water by 50% or more. This mechanism is important to environmental protection, because it can prevent contamination of water sources caused by runoff. In nature, humic acid improves soil structure and aeration, nutrient absorption, water retention. It also increases soil’s buffering capacity against fluctuations in pH levels, and reduces soil crusting and erosion problems from wind and water as well as radical toxic pollutants. Humic acid promotes the development of root systems, seed germination, overall plant development. It also enhances health, resistance to stress and overall appearance of plants. We believe that there is no synthetic material currently known to match humic acid’s effectiveness and versatility. The pure humic acid used in TechTeam’s fertilizer is distilled and extracted from weathered coal by way of alkaline digestion and acid recrystallization.
• Our products are dark brown to black in color, and principally used as a foliar fertilizer (a liquid, water soluble fertilizer applied to a plant’s foliage by a fine spray so that the plant can absorb the nutrients through its leaves), or sprayed directly on soil or injected into the irrigation systems.
• Benefits of using TechTeam’s products are to stimulate growth, yield, and protect plants from drought, disease and temperature damage while improving soil structure and enhancing soil fertility.
• TechTeam has a multi-tiered product line which offers 119 products, covering three product categories: Broad Spectrum Fertilizers for general use, Functional Fertilizers for the enhancement of certain characteristics and Tailored Fertilizers for very specific crops; which accounted for 15.8%, 48.3% and 35.9% of our total revenues from fertilizer products, respectively for the fiscal year ended June 30, 2008. [10-K FY08p6]

Innovation

• We have developed over 131 different fertilizer products, including six new products introduced to the market in the three months ended March 31, 2009.[10-Q Q109p24]
• Techteam ‘ s net sales, which accounted for 77.6% of our total net sales, were driven by the sales of humic acid based liquid compound fertilizers. For the three months ended March 31, 2009, Techteam’s net sales increased $3,344,201, or 95.0%, to $6,864,494 from $3,520,293 for the three months ended March 31, 2008. We have introduced 17 new products to the market during the past 12 months, which contributed approximately 63.8% to this increase. In addition, our recent upgrades to the current production facility increased annual capacity from 10,000 metric ton to 15,000 metric ton and enabled us to meet the strong demands for the fertilizer products. Sales volume increased 60.8% to 3,364 tons for the three months ended March 31, 2009 from 2,091 tons for the three months ended March 31, 2008.[10-Q Q109p26]