Jan. 10, 2007 (China Knowledge) – Bodisen Biotech Inc., a China-based producer of fertilizers and pesticides, said it expects to post a 74% increase in 2006 earnings due to an increase in sales.

The company said sales increased by an estimated 39% last year, and it expects its revenue in 2006 to reach US$43 million, and net income to reach US$12.9 million, excluding one-time legal and other expenses related to deficiencies with the American Stock Exchange.

In November, Bodisen said it received a notice of deficiency from Amex. Bodisen reported that the exchange believed the company made incomplete, misleading or inaccurate disclosures in its regulatory filings related to its relationship with a consulting firm and did not provide information that Amex had requested in a timely fashion.

In 2005, the company reported US$31 million in revenue and net income of US$7.4 million.

The company said that factors that might affect its 2006 earnings include a delay in the launch of its Mancozeb pesticide product line. Prior to the launch, the Chinese government pesticide office ordered a review of all pesticide production companies and the company had to suspend the installation of the Mancozeb facility pending the completion of the government review. 

Other factors include road construction, which affected the company's ability to receive supplies and ship products and a planned, monthlong shutdown of its factories for maintenance in the fourth quarter.

The company also said Chairwoman and Chief Executive Karen Qiong Wang decided last week not to stand for re-election, due to personal and health considerations. President Bo Chen will take over as chairman and CEO, and retains his title of president.