Last Friday April 15 they released their annual report.
http://idc.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingConvPDF1?SessionID=pYQuH82U68RjWjS&ID=7187791Earnings per share were $ 0.08 so they earned the last quarter $ 0.03 compared to the $ 0.05 (nine months).
Book value per share was $ 0.79 while their cash position per share increased to $ 0.74.
Some other highlights from their Form 10-K:
As of December 31, 2009, the company had established 103 branded super chain stores. A majority of these stores are located in the Shaanxi and Hunan Provinces. In addition, they established 49 direct sales stores, which are controlled and managed directly by the company. The direct sales stores are located in the Shaanxi Province.
At some future time, we may seek to have our common stock or other securities quoted on a tier of a national securities exchange. In so doing, we will reevaluate the need to have independent directors on our board and on standing committees, in light of applicable corporate governance rules and corporate best practices. At the present time, our board of directors is collectively responsible for analyzing and evaluatingour financial statements and our internal controls and procedures for financial reporting, and for acting as our compensation and nominating
committee.
Especially the following Sales and Marketing part I found interesting:
We have traditionally sold our products through wholesale and retail distributors. In order to market our products, we advertise in newspapers, including national publications. We have also utilized a limited amount of television advertising, and distributed brochures, company profiles and promotional videos to farmers. We also offer free field trials to potential customers for the purpose of comparing plantings that have applied our products to plantings that have not. We believe that potential customers are more inclined to purchase our products after seeing the
comparison results. We have a marketing team comprised of approximately 57 people who demonstrate to our dealers and our direct customers the correct methods of using our products, and who help address issues that arise for our dealers and customers in using our products and collect feedback from them.
As of December 31, 2009, we have established relationships with approximately 90 wholesale distributors. Our products are sold in approximately 503 stores located in 12 provinces in the PRC. During 2008 we launched a new sales and marketing initiative “New Agriculture-Generator” designed to expand our distribution network
directly in the rural areas of China. The purpose of the campaign is to establish a closer relationship with farmers through agricultural cooperatives located throughout the rural areas of China. One component of this initiative is the “Super Chain Sales Partner Program.”
The “Super Chain Sales Partner Program” is an initiative 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. Each participating retailer must also agree not to sell any competing products. As of December 31, 2009, approximately 61 retailers in Shaanxi
province and approximately 42 retailers in Hunan province have participated in the “Super Chain Sales Partner Program”.
Another component of this initiative is to establish, in conjunction with participating retailers, a membership system that would enable the Company to measure and monitor the use of its products by farmers and to improve the Company’s efforts to provide training and other support services to farmers.
In addition, the Company has established 49 direct sales stores which are controlled and managed directly by the Company. The direct sales stores are located in the Shaanxi Province. We anticipate continuing to focus our efforts on establishing direct sales stores in 2010.
From the beginning of the year to March 31, 2010, we opened approximately 200 new direct sales stores in the Shaanxi and Hunan Provinces.
Despite the growth of these initiatives, there can be no assurance that the “New Agriculture-Generator” campaign, including the “Super Chain Sales Partner Program” or direct sales stores program, will be successful.
I really believe this company has set a clear growth path. My predictions of an EPS in 2010 of $ 0.12 are too conservative so I revise them to $ 0.15. 
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