ChinaSecurities

China Agritech is engaged in the development, manufacturing and distribution of organic liquid compound fertilizers and related products in the People's Republic of China.

The Company is currently in the process of expanding its production facilities to include organic granular fertilizer. The Company's proprietary formula of humic acid and other active ingredients has proven to have a significant effect on crop yield and quality without the harmful side effects of chemical fertilizers. It sells its products directly to end users, as well as through distributors. Based in Beijing, the People’s Republic of China, the company was founded in 1994. The Company commenced the production of granular fertilizer products via a third-party manufacturer, as it awaits the government production license for its own Beijing plant which management expected to receive by the end of November 2008.

The company renewed a sales contract with Sinochem Fertilizer Co., Ltd. for $9.5 million. Management reaffirmed its 2008 guidance calling for revenue of $54MM-$56MM and net income of $8.5MM-$9.0MM.

China Agritech has created a plan for expansion that will allow the Company to grow dramatically over the next several years. First, the Company has, and will continue to, prove the safety and reliability of its products. The historically highly fragmented nature of the Chinese fertilizer industry has created a void in the reliability of fertilizer products nationwide. This lack of consistency between products creates an opportunity for management to position the company for growth by collaborating with academic and governmental institutions in order to attest to the quality of China Agritech’s current product offerings as well as continue to develop new compounds to better meet the changing needs of China’s agricultural community. Secondly, by accessing the public markets in the United States, China Agritech will have the ability and capital to launch an extensive advertising campaign to educate the farmers on the benefits of its liquid organic compound products, and will be able to either acquire or build facilities to meet the growth in demand. This foundation for growth will allow the Company to expand its distributions outside its traditional base in Northeast China and capture a larger market share in areas that it already services.

In order to meet the demand fueled by the factors listed above, the Company intends to build or acquire 10 factories throughout China over the next three years. The factories will be strategically located in order to serve all of the agricultural areas in the PRC effectively. By opening additional factories, the Company will be able to tailor its compounds to meet the local needs of the farmers. China

In addition to domestic expansion, the Company currently has export agreements in various stages of negotiation with distributors in Russia,central Asian Countries,and Malaysia that could also result in significant revenue growth in the coming years.