China Agri-Business, Inc. ("China Agri" or the "Company," OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, reported its operation results for the three and six months ended June 30, 2011.

Highlights For The Three Months Ended June 30, 2011

Total sales increased 11% to $3,838,000 in the second quarter of 2011 compared to $3,452,574 in the second quarter of 2010.

Net income increased 200% to $2,256,307 in the second quarter of 2011 compared to $753,221 in the second quarter of 2010

Earnings per common share increased to $0.17 in the second quarter of 2011 compared to $0.06 in the second quarter of 2010

Highlights For The Six Months Ended June 30, 2011

Total sales increased 12% to $5,592,414 in the first half year of 2011 compared to $4,993,515 in the comparable period of 2010.

Net income increased 188% to $3,122,273 in the first half year of 2011 compared to $1,085,029 in the comparable period of 2010

Earnings per common share increased to $0.24 in the first half year of 2011 compared to $0.08 in the comparable period of 2010

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China

Last Trade: 0.81 52 Week: 4.95 – 0.57 Market Cap: 10.63 Million

Highlights For Three Months Ended September 30, 2010

• Total sales increased 471% to $3,530,563 in the third quarter 2010 compared to $617,457 in the third quarter of 2009.
• Sales of internally made products increased 192% to $1,800,843 compared to $617,457 in the third quarter of 2009
• Net income increased 261% to $895,984 in the third quarter 2010 compared to $247,818 in the third quarter of 2009
• Earnings per common share increased to $0.07 in the third quarter 2010compared to $0.02 in the third quarter of 2009

Sales from our direct sales stores amounted to $2,272,144, approximately 64% of total sales in the three months ended September 30, 2010. Sales from our super chain branded stores amounted to $272,963, approximately 8% of total sales in the three months ended September 30, 2010, an increase of $95,643, or 54%, as compared to $177,320 in the same period of 2009. Sales from our traditional sales network amounted to $985,456, an increase of $545,319, or 123%, as compared to $440,137 in the three months ended September 30, 2009.

As of September 30, 2010, the Company has 400 direct sales stores which are controlled and managed directly by the Company, and approximately 100 super chain branded stores. The majority of these direct sales stores and branded stores were located in the Shaanxi Province (local province) and some of these stores were located in the Hunan and Sichuan Provinces.

We believe that our increase in sales resulted from our New Agriculture-Generator" campaign, which was designed to expand our distribution networks and to establish a closer relationship with farmers throughout agricultural cooperatives in the rural areas of China since 2008.

Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, Inc., commented, "We succeeded in establishing our own sales channel, which helped us to promote our products and to increase our sales. To continue this great growth momentum, we will next focus on strengthening and consolidating our direct and branded sales stores, further improving the management of those stores while continuing to expand the areas reached by our direct sales stores and to expand our sales networks to other provinces in China."

Financial Highlights

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (however, our products themselves do not bear the "AA green food" designation). The Company's two primary product groups are organic fertilizers (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton, fruit plants, and orchard trees. The products can be used alone or as supplements with other products. The Company's Xinsheng manufacturing facilities are located in Xi'an, Shaanxi province, China. For more information about China Agri, please visit http://www.chinaagri-bus....

Forward-Looking Statements

This news release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "continue," "could," "estimates," "expects," "future," "goal," "hopes," "intends," "may," "objective," "plans," "potential," "scheduled," "seek," "should," or "will" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results or the implementation of our current plans. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events, or otherwise. You are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition, and results of operations.

    Second quarter 2010 highlights
    -- Sales increased 391% to $3,452,574 in the second quarter 2010from
       $703,875 in the second quarter 2009.
    -- Gross profit increased 134% to $1,207,644 in the second quarter 2010
       from $515,223 in 2009.
    -- Net income increased 205% to $753,221 in the second quarter 2010 from
       $246,901 in the second quarter 2009.
    -- Basic earnings per common share increased 200% to $0.06 in the second
       quarter 2010 from $0.02 in the second quarter 2009.
    -- Diluted earnings per common share increased 150% to $0.05 in the second
       quarter 2010 from $0.02 in the second quarter 2009.
    -- As of July 31, 2010, China Agri-Business had established 346 Direct
       sales stores and about 100 Super chain branded stores.

Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, Inc., said, "Our 391 percent growth in sales and 205 percent growth in net income in the second quarter 2010 over the second quarter of last year was primarily due to our aggressive expansion of our direct sales stores. In the first half of 2010, our sales increased 326 percent and net income increased 207 percent, compared with the first half of 2009.

"We are continuing to grow. We opened 101 new direct sales stores in the second quarter and another 46 stores in July, so our direct sales stores totaled 346 at the end of July. We expect to reach our year 2010 target of 500 direct sales stores early, by the end of October 2010.

"In our stores, farmers can learn about all the products in our stores from our knowledgeable sales staff. The staff also provides technical assistance to help farmers make the smartest decisions about the best products to use to benefit their product quality and yields in the current growing season, and also to help them keep their soil healthy for sustained successful growing in the years ahead. Of course, in our stores they can purchase fertilizer products, including our own organic fertilizers and complementary products manufactured by other companies. We also help them with access to information that is helpful for successful farming, for before, during, and after the growing seasons. Our products and information cover most of the crops that are grown in our market regions. We also assist with after sales service.

"Our direct sales stores are one part of our new business model that consists of several resources and actions. First is sourcing of raw materials to make our non-toxic and organic products that help farmers increase crop yields and productivity. Second is flexible manufacturing that includes our own production and expansions, plus capacity at plants where we can hire the production to be done as needed. Third is marketing, distribution, and sales, which is where our rapid expansion of our direct sales stores is very important. Fourth is to continue to seek more innovative and more effective products so we are increasingly helpful to the farmers as they grow food for the nation and grow a good profit for themselves. Fifth, of course, is to earn an attractive return on investment for the company and its shareholders, and to continue to reinvest for future growth through geographic market expansion and new and improved products, processes, technologies, and production. And sixth, which is most important, is that we view our relationship with the farmers, as a long-term mutually beneficial partnership to be sustained across many years; they are colleagues and friends, not just customers.

"So, as we are strengthening our connection with farmers, to increase their yields and productivity, we also expect to benefit from higher sales, higher market share, and gradually improving returns on investment in the years to come. We believe our broad offering of products, services, and close involvement and assistance with our farming friends should encourage them to be loyal long-term customers for China Agri.

"With our new business model and related long-term growth programs, we believe our actions will create long-term value for our shareholders. We are very pleased with our results for the first half of 2010."

Sales

China Agri-Business manufactures and markets more than 50 organic biochemical agricultural application products, including non-toxic fertilizers, bactericides, and fungicides, that are used in farming. Crops grown with the Company's products are eligible to qualify for the "AA Green Food" rating in China.

Sales for the three months ended June 30, 2010 totaled $3,452,574, an increase of $2,748,699 or 391% compared with sales of $703,875 for the three months ended June 30, 2009. Sales of internally made products increased $397,102 to $1,100,977 for the three months ended June 30, 2010 from $703,875 for the comparable period in 2009. Retail sales of fertilizer products in our direct sale stores was $2,351,597 for the three months ended June 30, 2010 compared with $0 in the comparable period of 2009.

The increase in total sales was primarily attributable to positive responses to our "New Agriculture-Generator" campaign, which was designed to expand our distribution network directly and to establish a closer relationship with farmers through agricultural cooperatives in the rural areas of China. Sales from our direct sales stores amounted to $2,764,522, approximately 80% of total sales, in the three months ended June 30, 2010. Sales from our super chain branded stores amounted to $185,864, approximately 5% of total sales, in the three months ended June 30, 2010, an increase of $57,479 or 45% as compared with $128,385 in the same period of 2009. Sales from our traditional sales network amounted to $502,188, a decrease of $73,302 or 13% compared with $575,490 in the three months ended June 30, 2009.

As of July 31, 2010, the Company had established 346 direct sales stores which are controlled and managed directly by the Company, and approximately 100 super chain branded stores, the majority of which were located in the Shaanxi province, with additional stores in the Hunan and Sichuan provinces.

    Sales by distribution channel

                                              Three Months Ended
                                     June 30, 2010        June 30, 2009

    Direct sales stores         $2,764,522      80.07%       $--      0.00%
    Super chain branded
     stores                        185,864       5.38%   128,385     18.24%
    Traditional sales
     network                       502,188      14.55%   575,490     81.76%
    Total Sales                 $3,452,574     100.00%  $703,875    100.00%

Cost of goods sold, gross profit, and gross profit margin

Cost of goods sold for the three months ended June 30, 2010 totaled $2,244,930, an increase of $2,056,278, compared with cost of goods sold of $188,652 for the three months ended June 30, 2009. Gross profit margin (gross profit divided by sales) was 35%, a decrease of 38 percentage points from 73% for the three months ended June 30, 2009. The increase in cost of goods sold and decrease in gross profit margin was attributable to our new sales model and new direct sales stores.

The gross profit margin of our internally made products was 67% and 73% for the three months ended June 30, 2010 and 2009, respectively. The decrease in gross profit margin on our internally made products was the result of the production of our new acquired potassium and magnesium fertilizer products which have a gross profit margin rate of 50%. The gross profit margin for our retail sales of fertilizer products from other manufacturers in our direct sales stores was 22%.

    Operating and other expenses for the second quarters of 2010 and 2009.

                                                   Three Months Ended June 30,
                                                         2010         2009

    Gross Profit                                     $1,207,644     $515,223

    Selling and marketing                               244,440       94,524
    Professional fees                                    50,452       31,663
    Depreciation and amortization
     expenses                                            15,014       11,878
    Other general and administrative
     expenses                                            95,927       80,729
    Total selling, general and administrative
     expenses                                           405,833      218,794
    Income from operations                              801,811      296,429
    Interest income                                       5,715        6,279
    Interest expense                                    (54,305)     (55,807)
    Net Income                                         $753,221     $246,901

Selling and marketing

Selling and marketing expenses were $244,440 for the three months ended June 30, 2010, an increase of $149,916 from $94,524 in the same period of 2009. The increase in selling and marketing expense was primarily attributable to the expansion of our direct sales stores.

Professional fees

Professional fees were $50,452 for the three months ended June 30, 2010, an increase of $18,789 from $31,663 in the comparable period of 2009. We expect such expenses will remain high in the future as a public company. Professional fees consist of audit and review fees, legal and attorney fees, director fees, and contracted professional service fees.

Other general and administrative expenses

Other general and administrative expenses were $95,927 for the three months ended June 30, 2010, an increase of $15,198 or 19%, compared with $80,729 for the three months ended June 30, 2009. The increase in other general and administrative expenses in the three months ended June 30, 2010 were primarily attributable to the increase of in research and development expenses and other expenses in connection with the expansion of our direct sales stores.

Interest expense

Interest expense was $54,305 in the three months ended June 30, 2010, which included amortization of deferred financing costs of $24,444, amortization of fair value of warrants of $18,214, amortization of a beneficial conversion feature of $6,040, and loan interest of $3,750. These expenses relate to the convertible notes issued in September 2008. Interest expense in the same period of 2009 was $55,807.

Net income

Net income for the three months ended June 30, 2010 was $753,221, an increase of $506,320 or 205% from net income of $246,901 for the three months ended June 30, 2009. The increase in net income primarily resulted from our New Agriculture-Generator campaign that consisted of expansion of China Agri's direct sales store network.

Results for six months ended June 30, 2010

The factors that influenced China Agri's second quarter 2010 results and comparisons with the second quarter of 2009, including sales, cost of goods sold, gross profit margin, operating and other expenses, and net income, were essentially the same factors for the results of the six months ended June 30, 2010 and the comparisons with the first half of the year 2009. Please see China Agri's filing of August 16, 2010 with the Securities and Exchange Commission on Form 10-Q for more detailed information about the first half year 2010 results and comparisons. The Form 10-Q can be found at the SEC's website at December 31, 2009.

For more information about China Agri-Business, please visit http://www.chinaagri-bus... .

Safe Harbor and Cautionary Statement

This press release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "believes," "plans," "will," "intends," "seek," "scheduled," "future," "potential," "continue," "estimates," "anticipates," "hopes," "goal," "objective," "expects," "may," "should," "could" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events or otherwise. Readers are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we may file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition and results of operations.

    For more information, please contact:

     Delong Zhou
     Chief Financial Officer
     Tel:   +1-917-825-2997
     Email: delongcpa@hotmail.com

    China Agri-Business, Inc.
     Building 2, Unit 1, 15th Floor
     Ling Xian Xin Cheng
     86 Gaoxin Road
     Hi-Tech Industrial Development Zone
     Xi'an, Shaanxi, China 710065
     Tel:   +86-29-6859-6556 or 6557
     Web:   http://www.chinaagri-business.com

    Christensen
     Mr. Yuanyuan Chen (English and Chinese)
     Tel:    +86-10-5971-2001 in Beijing
     Mobile: +86-139-2337-7882 in Beijing
     Email:  ychen@christensenir.com

     Mr. Tom Myers (English)
     Mobile: +86-139-1141-3520 in Beijing
     Email:  tmyers@christensenir.com

     Ms. Kathy Li (English and Chinese)
     Tel:    +1-212-618-1978
     Email:  kli@christensenir.com

                         Financial Statements Follow


                             China Agri-Business, Inc.
        Condensed Consolidated Statements of Income and Comprehensive Income
                                    (Unaudited)

                                For The Three Months  For The Six Months Ended
                                   Ended June 30,             June 30,
                                  2010        2009        2010        2009

      Sales of products        $3,452,574    $703,875  $4,993,515  $1,173,447
      Cost of goods sold        2,244,930     188,652   3,110,048     334,894
      Gross profit              1,207,644     515,223   1,883,467     838,553

      Selling, general and
       administrative expenses    405,833     218,794     701,092     383,145
      Income from operations      801,811     296,429   1,182,375     455,408
      Interest and other
       income                       5,715       6,279      12,194      10,798
      Interest expense            (54,305)    (55,807)   (109,540)   (112,389)
      Income before income
       taxes                      753,221     246,901   1,085,029     353,817
      Income taxes                     --          --          --          --
      Net income                 $753,221    $246,901  $1,085,029    $353,817

      Earnings per common share:
      Basic                         $0.06       $0.02       $0.08       $0.03
      Diluted                       $0.05       $0.02       $0.08       $0.03


      Weighted average number
       of common shares used
       to compute earnings per
       common share:
        Basic                  12,958,574  12,958,574  12,958,574  12,958,574
        Diluted                13,958,574  13,958,574  13,958,574  13,958,574

      Comprehensive Income:
      Net income                 $753,221    $246,901  $1,085,029    $353,817
      Other comprehensive
       income - foreign
       currency translation
       adjustment                  76,365     (11,032)     75,709     (10,999)
      Comprehensive Income       $829,586    $235,869  $1,160,738    $342,818

        The accompanying notes are an integral part of these financial
                                 statements.


                            China Agri-Business, Inc.
                      Condensed Consolidated Balance Sheets

                                                 June 30,        December 31,
                                                   2010              2009
                                               (Unaudited)
                   Assets
    Current Assets
      Cash and cash equivalents                 $10,344,306        $9,625,657
      Accounts receivable, net of
       allowance for doubtful accounts
       of $7,740 and  $8,300, respectively           36,262            28,310
      Inventory                                     282,624           138,253
      Other receivables                               7,965             7,911
      Prepaid expenses                               14,869            25,396
    Total Current Assets                         10,686,026         9,825,527
    Property, plant and equipment, net of
     accumulated depreciation of $235,260
     and $202,921, respectively                     610,763           337,995
    Investment in Tine Technology                   885,000           879,000
    Deferred financing costs, net of
     accumulated amortization of
     $184,092 and $134,550, respectively             23,190            72,732
    Intangible assets, net of accumulated
     amortization of $17,002 and $13,115,
     respectively                                   117,951             3,724
    Total Assets                                $12,322,930       $11,118,978

    Liabilities and Stockholders' Equity
    Current Liabilities
      Current portion of long-term debt              $9,131            $8,779
      Current portion of convertible
       notes, net of unamortized debt
       discounts of $23,715 and
       $72,499, respectively                        476,285           427,501
      Accounts payable and accrued
       liabilities                                  284,248           286,128
    Total Current Liabilities                       769,664           722,408

    Long-term Liabilities
      Long-term debt                                101,576           105,618
    Total Long-term Liabilities                     101,576           105,618
    Total Liabilities                               871,240           828,026

    Stockholders' Equity
      Undesignated preferred stock, par
       value $.001 per share; authorized
       4,900,000 shares; none issued                     --                --
      Common stock, par value $.001 per
       share; authorized 100,000,000
       shares, issued and outstanding
       12,958,574 and 12,958,574,
       respectively                                  12,959            12,959
      Additional paid-in capital                  4,370,212         4,370,212
      Retained earnings                           5,793,502         4,708,473
      Accumulated other comprehensive
       income                                     1,275,017         1,199,308
    Total stockholders' equity                   11,451,690        10,290,952
    Total Liabilities and Stockholders'
     Equity                                     $12,322,930       $11,118,978

  The accompanying notes are an integral part of these financial statements.


                          China Agri-Business, Inc.
               Condensed Consolidated Statements of Cash Flows
                                 (Unaudited)

                                             For the Six Months Ended June 30,
                                                   2010             2009
    Operating activities
      Net income                                $1,085,029         $353,817
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
       (Reduction in) allowance for
        doubtful accounts                             (612)            (560)
       Depreciation of property, plant
        and equipment                               30,744           20,558
       Amortization of intangible assets
        and deferred financing costs                53,314           60,290
       Amortization of debt discount and
        fair value of warrants                      48,784           50,695
      Changes in operating assets and
       liabilities:
       (Increase) decrease in accounts
        receivable                                  (7,392)           8,545
       Increase in other receivable                     --           (3,901)
       Increase in inventory                      (144,371)         (31,954)
       Decrease in prepaid expenses                 10,527            5,855
       Decrease in accounts payable and
        accrued liabilities                         (1,880)          (9,633)
    Net cash provided by operating
     activities                                  1,074,143          453,712

    Investing activities
     Proceeds from return of unused
      manufacturing equipment and
      production rights to respective
      vendors for cash equal to the
      assets' book value                                --          131,760
     Purchase of equipment                        (301,413)            (608)
     Purchase of products rights                  (118,000)              --
    Net cash provided by (used in)
     investing activities                         (419,413)         131,152

    Financing activities
     Repayment of long-term debt                    (4,471)              --
    Net cash (used in) financing
     activities                                     (4,471)              --

    Effect of exchange rate changes on
     cash and cash equivalents                      68,390           (9,567)
    Increase in cash and cash equivalents          718,649          575,297
    Cash and cash equivalents, beginning
     of period                                   9,625,657        8,312,636
    Cash and cash equivalents, end of
     period                                    $10,344,306       $8,887,933

    Supplemental Disclosures of Cash Flow
     Information
     Interest paid                                  $3,714              $--
     Income taxes paid                                 $--              $--

        The accompanying notes are an integral part of these financial
                                 statements.



                             China Agri-Business, Inc.
             Condensed Consolidated Statements of Stockholders' Equity
       For the Six Months Ended June 30, 2010 (Unaudited) and the Year Ended
                                 December 31, 2009

                                                        Common    Additional
                                         Common Stock   Stock      Paid-in
                                            Shares      Amount     Capital
      Balance, December 31, 2008           12,958,574   $12,959   $4,369,786
      Fair value of additional warrants
       issued to Placement Agent                   --        --          426
      Net income for the year ended
       December 31, 2009                           --        --           --
      Foreign currency translation
       adjustment                                  --        --           --
      Balance, December 31, 2009           12,958,574    12,959    4,370,212
      Net income for the six months ended
       June 30, 2010 (Unaudited)                   --        --           --
      Foreign currency translation
       adjustment (Unaudited)                      --        --           --
      Balance, June 30, 2010 (Unaudited)   12,958,574   $12,959   $4,370,212


                                                      Accumulated
                                                         Other
                                           Retained  Comprehensive
                                           Earnings     Income        Total
      Balance, December 31, 2008          $3,654,212  $1,185,676   $9,222,633
      Fair value of additional warrants
       issued to Placement Agent                  --          --          426
      Net income for the year ended
       December 31, 2009                   1,054,261          --    1,054,261
      Foreign currency translation
       adjustment                                 --      13,632       13,632
      Balance, December 31, 2009           4,708,473   1,199,308   10,290,952
      Net income for the six months ended
       June 30, 2010 (Unaudited)           1,085,029          --    1,085,029
      Foreign currency translation
       adjustment (Unaudited)                     --      75,709       75,709
      Balance, June 30, 2010 (Unaudited)  $5,793,502  $1,275,017  $11,451,690

        The accompanying notes are an integral part of these financial
                                 statements.

    First quarter 2010 highlights
    -- Sales increased 228% to $1,540,941 in the first quarter 2010 from
       $469,572 in the first quarter 2009.
    -- Gross profit increased 109% to $675,823 in the first quarter 2010 from
       $323,330 in 2009.
    -- Net income increased 210% to $331,808 in the first quarter 2010 from
       $106,916 in the first quarter 2009.
    -- Basic earnings per common share increased 200% to $0.03 in the first
       quarter 2010 from $0.01 in the first quarter 2009.
    -- Diluted earnings per common share increased 100% to $0.02 in the first
       quarter 2010 from $0.01 in the first quarter 2009.
    -- As of April 30, 2010, China Agri-Business had established about 250
       Direct sales stores and about 100 Super chain branded stores.

Mr. Liping Deng, Chief Executive Officer, President, and Director of China Agri-Business, Inc., said, "In the first quarter this year, we accelerated our initiative called the 'New Agriculture-Generator.' Our primary objective in this initiative is to expand our business by creating our own network of direct sales stores for our products and also by partnering with existing stores to create a super chain of branded stores that feature China Agri-Business products. This initiative should create much closer relationships for us with farmers in the rural areas of China where our direct sales stores and the super chain branded stores are located.

"By the end of April 2010, we had established about 250 direct sales stores, controlled and managed by us, and about 100 super chain branded stores. We are still in the early stage of this expansion. These two distribution channels in the first quarter of 2010 together accounted for 80.84 percent of our sales, while the traditional sales distribution network, which consists of independent wholesalers, distributors, and retailers, provided the remaining 19.16 percent of our sales in the quarter.

"We expect to continue adding direct sales stores and believe that by yearend 2010, we could have as many as 500 direct sales stores selling our products."

In addition to the Company's continued work to expand its markets and sales, the Company acquired a new product license to produce potassium and magnesium fertilizer on February 14, 2010. The license cost was about $117,000, and the cost for the associated production equipment was about $293,000. The Company believes that acquiring licenses to existing products will enable it to increase revenues more quickly than by relying solely on developing its own new products. China Agri-Business will continue to look for similar licensing opportunities.

Mr. Deng added, "We are continuing to open new direct sales stores and add super chain branded stores to increase sales by selling directly to farmers and by giving them knowledge and technical assistance. We believe that our organic agricultural application products help the farmers improve the quality and yield of their crops, which in turn, should increase our sales and further support our growth and success. While our rapid expansion temporarily depresses our margins and net income, we are highly confident that they will eventually rebound.

"We are encouraged by the early results from our strategy and the highly positive feedback we have received from our clients and partners.

"With our long-term growth programs, including our continuing store expansions, we believe our actions will create long-term value for our shareholders. The first quarter was a great start to what we think will be a very productive year."

Sales

China Agri-Business manufactures and markets more than 50 organic biochemical agricultural application products, including non-toxic fertilizers, bactericides, and fungicides, that are used in farming. Crops grown with the Company's products are eligible to qualify for the "AA Green Food" rating in China.

Total sales increased $1,071,369 or 228% to $1,540,941 in the three months ended March 31, 2010 from $469,572 in the three months ended March 31, 2009. The increase in sales was attributable to positive responses to the Company's "New Agriculture-Generator" campaign, which is designed to expand its distribution network directly with farmers and to establish a closer relationship with them through agricultural cooperatives in the rural areas of China. The New Agriculture-Generator campaign's results are included in the distribution channels named Direct sales stores and Super chain branded stores.

    Sales by distribution channel

                                            Three Months Ended
                                    March 31, 2010       March 31, 2009

    Direct sales stores         $ 1,062,461    68.95%  $      --    0.00%
    Super chain branded stores      183,281    11.89%     26,010    5.54%
    Traditional sales network       295,199    19.16%    443,562   94.46%
    Total Sales                 $ 1,540,941   100.00%  $ 469,572  100.00%

Sales from Direct sales stores were $1,062,461 in the first quarter 2010, and represented 68.95% of total sales in the quarter. The Company had no Direct sales stores in the first quarter 2009.

Sales from Super chain branded stores increased $157,271 or 605% to $183,281 in the first quarter 2010 from $26,010 in the first quarter 2009. Super chain branded stores represented 11.89% of total sales in the first quarter 2010 and 5.54% of total sales in the first quarter 2009.

Sales from the Traditional sales network decreased $148,363 or 33% to $295,199 in the first quarter 2010 from $443,562 in the first quarter 2009. Sales from the traditional sales channel represented 19.16% of total sales in the first quarter 2010 and 94.46% of total sales in the first quarter 2009.

As of April 30, 2010, China Agri-Business had established approximately 250 Direct sales stores, which are controlled and managed directly by the Company, and approximately 100 Super chain branded stores. The majority of these stores are located in Shaanxi and Hunan provinces.

Cost of goods sold, gross profit, and gross profit margin

Cost of goods sold increased $718,876 or 492% to $865,118 in the first quarter 2010 from $146,242 in the first quarter 2009. Gross profit increased $352,493 or 109% to $675,823 in the first quarter 2010 from $323,330 in the first quarter 2009.

The gross profit margin was 43.86% in this year's first quarter, a decrease of 25 percentage points from 68.86% in last year's first quarter. The increase in cost of goods sold and decrease in gross profit margin was attributable to the new direct sales stores. To attract more farmers to the direct sales stores, in addition to selling products manufactured by China Agri-Business, the direct sales stores also sell fertilizer products manufactured by third parties. For the three months ended March 31, 2010, total sales of third-party products was $870,754 or 57% of total sales.

    The following table shows China Agri-Business sales, cost of goods sold,
gross profit, and gross profit margins by distribution channel for the first
quarter 2010.



                                           Direct Sale  Branded  Traditional
                                  Total       Stores     Stores     Sales
    Three Months Sales         $1,540,941  $1,062,461  $183,281   $295,199
    Cost of Goods Sold            865,118     722,439    54,600     88,079
    Gross Profit                 $675,823    $340,022  $128,681   $207,120
    Gross Profit Margin             43.86%      32.00%    70.21%     70.16%



    Operating and other expenses for the first quarters of 2010 and 2009.

                                                Three Months Ended March 31,
                                                   2010              2009

    Gross Profit                                $675,823          $323,330

    Selling and marketing                        153,119            56,400
    Professional fees                             44,750            29,000
    Depreciation and amortization
     expenses                                     11,817            11,843
    Other general and administrative
     expenses                                     85,573            67,108
    Total selling, general and
     administrative expenses                     295,259           164,351
    Income from operations                       380,564           158,979
    Interest income                                6,479             4,519
    Interest expense                             (55,235)          (56,582)
    Net Income                                  $331,808          $106,916

Selling and marketing

Selling and marketing expenses increased $96,719 or 171% to $153,119 in the first quarter 2010 from $56,400 in the first quarter 2009. The increase in selling and marketing expenses was primarily attributable to the expansion of our direct sales stores.

Professional fees

Professional fees increased $15,750 or 54% to $44,750 in the first quarter 2010 from $29,000 in the first quarter 2009. Professional fees consist of audit and review fees, legal and attorney fees, director fees, and contracted professional service fees. The Company expects such expenses will remain high in the future because it is a public company.

Other general and administrative expenses

Other general and administrative expenses increased $18,465 or 28% to $85,573 in the first quarter 2010 from $67,108 in the first quarter 2009. Higher other general and administrative expenses in the first quarter 2010 were attributable to increased research and development expenses and other expenses related to the expansion of the direct sales stores. Other general and administrative expenses primarily consist of wages and related benefits, research and development expenses, rent and utility expenses, office expenses, bad debt expense, and travel and miscellaneous expenses.

Income from operations

Income from operations increased $221,585 or 139% to $380,564 in the first quarter 2010 from $158,979 in the first quarter 2009. The increase in income from operations primarily resulted from the "New Agriculture-Generator" campaign and expansion of the direct sales network.

Interest expense

Interest expense decreased $1,347 or 2% to $55,235 in the first quarter 2010 from $56,582 in the first quarter 2009. The interest expense of $55,235 in the first quarter 2010 consisted of amortization of deferred financing costs of $25,098, amortization of fair value of warrants of $18,421, amortization of beneficial conversion feature of $6,109, and loan interest of $5,607. These expenses related to the convertible notes issued in September 2008.

Net income

Net income increased $224,892 or 210% to $331,808 in the first quarter 2010 from $106,916 in the first quarter 2009. The increase in net income primarily resulted from the "New Agriculture-Generator" campaign and expansion of the direct sales network.

Foreign currency translation

The functional currency of the China Agri-Business operating company in China (Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd.) is the renminbi ("RMB"), also known as Chinese yuan. China Agri-Business financial position and results of operations, reported in U.S. dollars, are affected by changes in the exchange rates between the RMB and the dollar.

Liquidity and capital resources

As of March 31, 2010, cash and cash equivalents totaled $9,412,048, a decrease of $213,609 from $9,625,657 as of December 31, 2009. As of March 31, 2010, 83% of the Company's assets consisted of cash and cash equivalents, as compared with 87% as of December 31, 2009.

Net cash provided by operating activities was $205,744 and $136,842 for the three months ended March 31, 2010 and 2009, respectively. The increase resulted from the increase in net income in the three months ended March 31, 2010.

Net cash used in investing activities was $416,569 for the three months ended March 31, 2010. In the first quarter of 2010, the Company acquired additional product rights for $117,200 (800,000 RMB) and related machinery and equipment from a vendor for $293,000 (2,000,000 RMB). In the first quarter 2010, the Company also spent $6,370 on other equipment. During the first quarter 2009, the Company received total proceeds of $131,760 from the disposal of unused equipment and product rights and spent $608 on equipment.

Net cash used in financing activities was $2,141, which was a repayment of long-term debt, in the three months ended March 31, 2010. The Company had no financing activities in the first quarter 2009.

The Company presently does not have any available credit, bank financing, or other external sources of liquidity. It believes that its existing cash resources will be sufficient to meet its existing operating requirements for the foreseeable future. However, the Company is seeking opportunities to expand its manufacturing and distribution capabilities in the PRC that may require an investment beyond its existing cash resources. Accordingly, China Agri-Business expects that it will require additional funding through additional equity and or debt financings. However, there can be no assurance that any additional financing will become available to the Company, and if available, on terms acceptable to it.

The conversion of China Agri-Business outstanding notes and exercise of its outstanding warrants into shares of common stock would have a dilutive effect on its common stock, which could in turn reduce its ability to raise additional funds on favorable terms. In addition, the subsequent sale on the open market of any shares of common stock issued upon conversion of its outstanding notes and exercise of its outstanding warrants could affect its stock price which could in turn reduce its ability to raise additional funds on favorable terms.

Any financing, if available, may involve restrictive covenants that may affect the Company's ability to conduct its business or raise additional funds on acceptable terms. If it is unable to raise additional capital when required or on acceptable terms, it may have to delay, scale back, or discontinue its expansion plans and its business may be adversely affected.

About China Agri-Business, Inc.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd. (Xinsheng), manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (however, the Company's products themselves do not bear the "AA green food" designation). The green food rating system consists of an "A" rating and a more stringent "AA" rating. The "AA" rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fertilizer (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). China Agri-Business has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including fruit plants, orchard trees, vegetables, potatoes, and cotton. The products can be used either alone or to supplement other products. The Company's Xinsheng manufacturing facilities are located in Xi'an, Shaanxi province, China.

For more information about China Agri-Business, please visit http://www.chinaagri-bus... .

Safe Harbor and Cautionary Statement

This press release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "believes," "plans," "will," "intends," "seek," "scheduled," "future," "potential," "continue," "estimates," "anticipates," "hopes," "goal," "objective," "expects," "may," "should," "could" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events or otherwise. Readers are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we may file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition and results of operations.

    For more information, please contact:

     Delong Zhou
     Chief Financial Officer
     Tel:   +1-917-825-2997
     Email: delongcpa@hotmail.com

     China Agri-Business, Inc.
     Building 2, Unit 1, 15th Floor
     Ling Xian Xin Cheng
     86 Gaoxin Road
     Hi-Tech Industrial Development Zone
     Xi'an, Shaanxi, China 710065
     Tel: +86-29-6859-6556 or 6557
     Web: http://www.chinaagri-business.com


    Christensen

     Mr. Yuanyuan Chen (English and Chinese)
     Tel:    +86-10-5971-2001 in Beijing
     Mobile: +86-139-2337-7882 in Beijing
     Email:  ychen@christensenir.com

     Mr. Tom Myers (English)
     Mobile: +86-139-1141-3520 in Beijing
     Email:  tmyers@christensenir.com

     Ms. Kathy Li (English and Chinese)
     Tel:    +1-212-618-1978
     Email:  kli@christensenir.com


    Financial statements follow.

NEW YORK, Oct. 26, 2009 (PRNewswire-Asia-FirstCall) -- China Agri-Business, Inc. (OTC Bulletin Board: CHBU) a manufacturer and distributor of organic agricultural application products in China, opened its first "Fuqi Yingyang Fang", ("Lucky Seven Health Food Store" English translation), branded store in Xian City, Shaanxi, China on September 8, 2009 under its "Fuqi" branded store program. Fuqi Yingyang Fang is a branded prototype store with approximately 1,720 square feet, (190 square meters). The store retails selected green, organic agricultural products as well as high-quality processed agricultural products (such as eggs, rice, cereal grains, tea, fresh and dried fruits). This store also provides customized and value added food processing services to meet the diverse needs of consumers. In addition, in-store professional nutritionists provide free dietary consulting services to customers in accordance with their nutritional well being.

The Fuqi Yingyang Fang branded store program is intended to: (1) create a new market place for farmers to sell their green products and to realize the value of quality green products, especially for those who use the Company's organic fertilizer; (2) promote green agriculture products as well as the Company's fertilizer products through the selling of green products; (3) create a new profit center for the Company to develop and maintain sustainable future growth; and (4) provide a better and more healthful choices for consumers.

Commenting on the launch, Lipeng Deng, Chief Executive Officer of the Company, stated, "A Fuqi Yingyang Fang branded store program is part of the Company's market initiative, "New Agriculture-Generator", which began in September 2008. We started with our Super Chain Sales Partner program and have established 103 branded Super Chain stores as of today. Our Super Chain Sales Partner program is focused on establishing a direct sales network with farmers. Fuqi Yingyang Fang branded store program is designed to help farmers sell green agricultural products grown using our organic fertilizer products. These two programs have formed a virtuous circle. Jointly, the two programs are expected to generate growth strength for the Company in the future. We expect the branded stores will benefit us as well as consumers."

The estimated cost per branded store is approximately $23,000 (150,000 renminbi). The estimated revenue for each store is approximately $147,000 (1,000,000 renminbi). The Company plans to invest approximately U.S. $2.3 million (15,000,000 renminbi) and to establish 100 "Fuqi Yingyang Fang" branded stores nationwide in the PRC in the next three to five years.

ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures and sells non-toxic fertilizer, bactericide and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (However, our products themselves do not bear the "AA green food" designation). The green food rating system consists of an "A" rating and a more stringent "AA" rating. The "AA" rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fertilizer (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. The products can be used either alone or to supplement other products. The Company's Xinsheng's manufacturing facilities are located in Xian, Shaanxi Province, China.

Safe Harbor and Cautionary Statement

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008 and other documents of the Comapany files with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

    For additional information, please contact:

China Agri-Business, Inc.
Building 2, Unit 1, 15th Floor
Ling Xian Xin Cheng
86 Gaoxin Road
Hi-Tech Industrial Development Zone
Xian, Shannxi, China 710065

Tel: +86-29-6859-6556, +86-29-6859-6557
Fax: +86-29-6859-6589
Web: http://www.chinaagri-business.com

Michael Segal, Director
Tel:   +1-212-348-5600
Fax:   +1-212-348-5601
Email: michael@chinaagri-business.com

SOURCE China Agri-Business, Inc.

Source: PR Newswire (October 26, 2009 - 10:00 AM EDT)

NEW YORK, Aug. 18 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. (OTC Bulletin Board: CHBU) a manufacturer and distributor of organic agricultural application products in China, has released its financial results for the three and six months ended June 30, 2009.

Revenue for the quarter ended June 30, 2009 totaled $703,875, a decrease of 40% as compared to revenue of $1,182,746 for the quarter ended June 30, 2008. Revenue for the six months ended June 30, 2009 totaled $1,173,447, a decrease of 23% as compared to revenue of $1,522,190 during the comparable period in 2008.

Net income for the six months ended June 30, 2009 was $353,817, a decrease of 55%, or $439,394, as compared to $793,211 for the six months ended June 30, 2008. The decrease in net income was primarily due to the decrease in sales, an increase in selling and marketing expenditures and an increase in non cash interest expense.

The year over year decrease in sales is attributable to the continued negative impact of severe weather conditions in China during 2008 as well as the continued global financial crisis. It was estimated that farmer investment in agriculture production decreased by 40% during the period from October 2008 to March 2009, compared to the same period one year ago. These two events contributed to lower farming revenues in 2008. The farmers in the disaster affected areas, in return, are reluctant to buy more expensive organic fertilizer.

Liping Deng, President and Chief Executive Officer of China Agri-Business, commented on the Company's performance stating, 'As an effort to offset the influence of weather conditions, we launched a Super Chain Sales Partner Program 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 in addition to the traditional sales network.'

To date, Chian Agri has established 42 Super Chain Stores in Hunan province and 61 in Shaanxi province. Total sales attributable to these 103 Super Chain Stores were approximately $154,400 during the six months ended June 30, 2009. Sales to Super Chain Stores helped the Company to indemnify the sluggish sale to some extent. Super Chain Store Program achieved preliminary success in Hunan province. During Six months ended June 30, 2009, the sales to Hunan province counted for 13.6% of our total sales. Among those sales, 17.4% was contributed by those 42 Super Chain Stores.

Mr. Deng went on to say, 'We will continue to focus on sales. Next, we will help farmers to sell their organic agricultural products. We have a plan to establish an organic agricultural products market place in Xian city for the farmers who used our products. We expect our revenue growth to return to earlier levels by the end of 2009.'

                            China Agri-Business, Inc.

                              Financial Highlights

                                                 June 30,        December 31,
                                                   2009               2008
    Current Assets
     Cash and cash equivalents                  $8,887,933        $8,312,636
     Accounts receivable, net                       37,249            45,165
     Inventory                                      79,067            47,113
     Prepaid and other assets                       27,720            29,674

    Total Current Assets                         9,031,969         8,434,588
    Property, plant and equipment, net             116,491           231,278
    Investment in Tienwe Technology                878,400           879,420
    Deferred financing costs, net                  124,685           178,879
    Intangible assets, net                          15,995            59,495

    Total Assets                               $10,167,540        $9,783,660

    Current Liabilities
     Accounts payable and accrued
      liabilities                                 $224,374          $234,007

    Long Term Liabilities
     Convertible notes, net                        377,715           327,020

    Stockholders' Equity
     Common stock par value $.001 per
      share; authorized 100,000,000
      shares; issued and outstanding
      12,958,574 and 12,958,574 shares,
      respectively                                  12,959            12,959
     Additional paid-in capital                  4,369,786         4,369,786
     Retained earnings                           4,008,029         3,654,212
     Accumulated other comprehensive
      income                                     1,174,677         1,185,676

    Total stockholders' equity                   9,565,451         9,222,633

    Total Liabilities and Stockholders'
     Equity                                    $10,167,540        $9,783,660



                            Results of Operations

                                                     Six Months Ended
                                                           June 30,
                                                   2009               2008

    Sales of products                           $1,173,447         $1,522,190
    Cost of goods sold                             334,894            458,577

    Gross profit                                   838,553          1,063,613
    Gross profit rate                               71.46%             69.87%
    Selling, general and administrative
     expenses                                      383,145            281,919

    Income from operations                         455,408            781,694
    Interest (expense) income                     (101,591)            11,517

    Net income                                    $353,817           $793,211

    Earnings per common share:
     Basic and Diluted                               $0.03              $0.06

ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures and sells non-toxic fertilizer, bactericide and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the 'AA Green Food' rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (However, our products themselves do not bear the 'AA green food' designation). The green food rating system, which consist of an 'A' rating and a more stringent 'AA' rating. The 'AA' rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fungicides(Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different proprietary applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. The products can be used either alone or to supplement other products. The Company Xinsheng's manufacturing facilities are located in Xian, Shaanxi Province, China.

Safe Harbor and Cautionary Statement

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words 'may,' 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'could,' 'would,' and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading 'Risk Factors' in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the United States Securities and Exchange Commission and available at http://www.sec.gov . The Company assumes no obligation to update any such forward-looking statements.

SOURCE China Agri-Business, Inc.

Source: PR Newswire (August 18, 2009 - 8:20 AM EDT)

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."

                            China Agri-Business, Inc.
                               Financial Highlights

                                                March 31,         December 31,
                                                   2009               2008

    Current Assets
     Cash and cash equivalents                  $8,570,966         $8,312,636
     Accounts receivable, net                       37,881             45,165
     Inventory                                      65,217             47,113
     Prepaid and other assets                       36,761             29,674

    Total Current Assets                         8,710,825          8,434,588
    Property, plant and equipment, net             126,922            231,278
    Investment in Tienwe Technology                878,400            879,420
    Deferred financing costs, net                  151,505            178,879
    Intangible assets, net                          19,044             59,495

    Total Assets                                $9,886,696         $9,783,660

    Current Liabilities
     Accounts payable and accrued
      liabilities                                 $215,701           $234,007

    Long Term Liabilities
     Convertible notes, net                        352,478            327,020

    Stockholders' Equity
     Common stock par value $.001 per
      share; authorized 100,000,000
      shares;
       issued and outstanding 12,958,574
        and 12,958,574 shares,
        respectively                                12,959             12,959
     Additional paid-in capital                  4,369,786          4,369,786
     Retained earnings                           3,761,128          3,654,212
     Accumulated other comprehensive
      income                                     1,174,644          1,185,676

    Total stockholders' equity                   9,318,517          9,222,633

    Total Liabilities and Stockholders'
     Equity                                     $9,886,696         $9,783,660




    Results of Operations                            Three Months Ended
                                                          March 31,

                                                    2009              2008

    Sales of products                             $469,572          $339,444
    Cost of goods sold                             146,242           103,591

    Gross profit                                   323,330           235,853
    Selling, general and administrative
     expenses                                      164,351           124,434

    Income from operations                         158,979           111,419
    Interest (expense) income                      (52,063)            4,909

    Net income                                    $106,916          $116,328

    Earnings per common share:
     Basic and Diluted                               $0.01             $0.01

ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures and sells non-toxic fertilizer, bactericide and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (However, our products themselves do not bear the "AA green food" designation). The green food rating system, which consist of an "A" rating and a more stringent "AA" rating. The "AA" rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fungicides (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different proprietary applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. The products can be used either alone or to supplement other products. The Company Xinsheng's manufacturing facilities are located in Xian, Shaanxi Province, China.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the United States Securities and Exchange Commission and available at http://www.sec.gov . The Company assumes no obligation to update any such forward-looking statements.

Revenue for the year ended December 31, 2008 totaled $2,922,385, a decrease of 3.8% as compared to $3,037,414 for the year ended December 31, 2007. The Company's operations were adversely affected by natural and weather related disasters that occurred in China in 2008, specifically severe winter weather conditions in January and February, a major earth quake on May 12 epicentered in Sichuan province, and widespread flooding in the central and southern regions in May and June, including the Hunan and Hubei provinces. Sales in each of these areas declined significantly.

Gross Profit for the year ended December 31, 2008 was $2,104,913, an increase of 1.6% as compared to $2,072,453 for the year ended December 31, 2007. Gross profit margin rate for the year ended December 31, 2008 was 72.03%, as compared to 68.23% for the year ended December 31, 2007. The improvement in gross margin is primarily attributable to a 5-10% increase in the prices of the Company's products.

The Company reported net income of $1,345,339, or $0.10 per share for 2008, as compared to $1,058,882, or $0.09 per share, respectively, for 2007. These increases are primarily attributed to the higher gross profit margin rate, lower professional fees, and lower general and administrative expenses in 2008 relative to 2007.

Liping Deng, President and CEO of China Agri-Business, stated, "We are pleased that we were able to maintain our sales despite weather and natural disasters beyond our control. Despite these setbacks, we remain focused on growth through new product development and expansion of our sales and marketing efforts in China."

Mr. Deng went on to say, "During 2008 we launched a new sales and marketing initiative called the "New Agriculture-Generator" designed to expand our distribution network in China. One component of this initiative involves establishing relationships with farmers through agricultural cooperatives. Another component is the "Super Chain Sales Partner" campaign, whereby the Company agrees to provide a $3,000 advance payment to participating retailers in exchange for their commitment to purchase and sell approximately $14,000 worth of the Company's products per year on an exclusive basis. We believe this program provides an opportunity to establish a direct connection with our primary consumers, the farmers, that will supplement our traditional sales network."

                            China Agri-Business, Inc.
                               Financial Highlights

                                               December 31,       December 31,
                                                     2008               2007
    Current Assets
     Cash and cash equivalents                  $8,312,636         $5,984,448
     Accounts receivable, net                       45,165             65,118
     Inventory                                      47,113             60,582
     Other current assets                           29,674             12,590
    Total Current Assets                         8,434,588          6,122,738
    Property, plant and equipment, net             231,278            276,000
    Investment in Tienwe Technology                879,420            822,540
    Deferred financing costs, net                  178,879                 --
    Intangible assets, net                          59,495             73,554
    Total Assets                                $9,783,660         $7,294,832

    Current Liabilities
     Accounts payable and accrued liabilities     $234,007           $166,200
    Long Term Liabilities
     Convertible notes, net                        327,020                 --
    Stockholders' Equity
     Common stock par value $.001 per
      share; authorized 100,000,000
      shares; issued and outstanding
      12,958,574 and 12,958,574 shares,
      respectively                                  12,959             12,959
     Additional paid-in capital                  4,369,786          4,150,636
     Retained earnings                           3,654,212          2,308,873
     Accumulated other comprehensive income      1,185,676            656,164
    Total stockholders' equity                   9,222,633          7,128,632
    Total Liabilities and Stockholders'
     Equity                                     $9,783,660         $7,294,832


    Results of Operations                                  Years Ended
                                                           December, 31
                                                      2008               2007
    Sales of products                           $2,922,385         $3,037,414
    Cost of goods sold                             817,472            964,961
    Gross profit                                 2,104,913          2,072,453
    Selling, general and administrative
     expenses                                      729,278          1,029,230
    Income from operations                       1,375,635          1,043,223
    Interest (expense) income                      (30,296)            15,659
    Net income                                  $1,345,339         $1,058,882*
    Earnings per common share:
     Basic                                           $0.10              $0.09*

    * Not included deemed dividend relating to beneficial conversion feature
      of Series A preferred stock

ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures and sells non-toxic fertilizer, bactericide and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (However, our products themselves do not bear the "AA green food" designation). The green food rating system, which consist of an "A" rating and a more stringent "AA" rating. The "AA" rating indicates that the crops contain minimal chemical residue from fertilizers.

The Company's two primary product groups are organic fungicides(Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different proprietary applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. The products can be used either alone or to supplement other products. The Company Xinsheng's manufacturing facilities are located in Xian, Shaanxi Province, China.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

Click here to view financial Statement

NEW YORK, NY--(MARKET WIRE)--Apr 1, 2008 -- China Agri-Business, Inc. (OTC BB:CHBU.OB - News) a manufacturer of biochemical agricultural application products in China, announced its financial results for the year ended December 31, 2007.

Sales for the year ended December 31, 2007 were $3.04 million, an increase of 41% compared to 2006, while net income increased 16% to $1.06 million compared to $913,000 in 2006. Net income as a percentage of sales decreased 7% from 42% in 2006 to 35% in 2007, due primarily to the increase of professional fees.

The Company's balance sheet remains strong. Cash and cash equivalents increased 58% to $5,984,448, as compared to $3,785,535 at December 31, 2006.

Mr. Liping Deng, President and CEO of China Agri-Business, commented on the Company's performance stating, "We are right on target. In November of 2007, we introduced three new organic products at the 23rd annual China Agriculture Fertilizer and Machine Trade Show. These new products, 'Xinsheng Huang-jin-gai,' 'Xinsheng Jia-tian-xia' and 'Xinsheng Bai-le,' have been very well received. The expansion of our product line has also enabled us to expand into new geographic markets. Our products are currently sold in more than 20 provinces in China, and the number of retail establishments that sell our products surpassed 800, an increase of 60% as compared to 2006."

Mr. Deng went on to say "Our successes in 2007 serve as a solid foundation for our development in 2008 and beyond. As we continue our efforts to establish the Company as a leader in China's growing organic agricultural application sector, we are focusing on the quality of our products, the depth of our product line, and the growth of our sales network in China."

ABOUT CHINA AGRI-BUSINESS, INC.

China Agri-Business, Inc., through its subsidiary, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd., develops, manufactures, and markets organic biochemical agricultural application products in China. The Company's products are categorized into following six primary products groups: "Xinsheng Luyuan," "Xinsheng Lufeng," "Xinsheng Dadang," "Xinsheng Huang-jin-gai," "Xinsheng Jia-tian-xia," and "Xinsheng Bai-le." Within these categories, China Agri-Business produces more than 50 different proprietary applications. These products function as a botanical growth and vitality stimulant, as soil conditioners and as plant nutrient supplements. They are designed to prevent and cure plant diseases and eliminate parasites and may be applied to a wide variety of food and non-food crops, including potatoes, vegetables, cotton and fruit plants and trees. They are used either alone or to supplement traditional fertilizer products. The Company owns and manages its manufacturing facilities and has established a distribution network that is serviced by approximately 60 sales personnel. The Company's products are primarily sold through distributors in more than 20 provinces throughout China.

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our SB-2 dated July 12, 2007, and annual report on Form 10-KSB for the year ended December 31, 2007, and our other recent filings. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

Contact:

     Contact:
     Michael S. Segal
     Director
     Email:  Email Contact
     Phone:  1-646-623-6999