-- Full year revenues increased 33.0% to a record $39.3 million
    -- Full year net income increased 59.4% to $8.5 million

    BEIJING, March 28 /Xinhua-PRNewswire-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) ("China Agritech" or "the Company"), a leading manufacturer of liquid organic fertilizer and other fertilizer products in China, today announced its financial results for the fourth quarter and full year ended December 31, 2007.

    Fourth Quarter Highlights

    -- Revenues increased 53.2% year-over-year to $9.2 million
    -- Gross profit increased 23.5% year-over-year to $3.9 million
    -- Net income increased 27.5% year-over-year to $1.5 million, or $0.06 
       per diluted share

    Full Year 2007 Highlights

    -- Revenues grew 33.0% to a record $39.3 million in line with guidance
    -- Gross profit increased 32.3% to a record $20.3 million
    -- Net income grew 59.4% to a record $8.5 million, or $0.39 per diluted 
       share, in line with guidance
    -- Completed private placement financing, raising $15 million in gross 
       proceeds to build new granular production facilities

    "We made significant progress in our expansion strategy throughout 2007 as we penetrated new markets in central and southern China and signed a $7.8 million contract with Sinochem Fertilizer, the largest fertilizer distributor in China," commented Mr. Yu Chang, Chief Executive Officer of China Agritech.  "We will begin test production of our new granular fertilizer factory in Beijing in April; we expect the factory will begin production in May." 

    "During the fourth quarter, we experienced higher packaging costs associated with rising crude oil prices, which negatively impacted gross margin.  We are in the process of evaluating alternative options for packaging materials in an effort to lower these costs in the future."

    Net revenue for the fourth quarter of 2007 climbed 53.2% to $9.2 million from $6 million in the fourth quarter of 2006.  Revenue growth was the result of strong demand for LvlingBao III and Tailong I fertilizers, which represented 36% and 26%, respectively, of net revenue in the fourth quarter of 2007.  Green Vitality doubled as a percent of net revenue from the third quarter of 2007 to 16% as the Company increased its penetration in the southern and central regions of China.  Lvling BaoIV represented the balance of 22% of net revenue.  

    Gross profit for the fourth quarter of 2007 was $3.9 million, up 23.5% from gross profit of $3.1 million in the fourth quarter of 2006.  Gross margin for the quarter was 42.3% compared to 52.5%.  The decline in gross margin was primarily due to higher packaging costs, as well as higher raw materials costs for nitrogen, phosphorus, and potassium.  

    Selling expenses during the quarter were $0.8 million, or 8.2% of revenue, down from $1.1 million, or 19.0% of revenue, in the fourth quarter of 2006.  The decline in selling expense is due to the higher than usual selling expenses in the fourth quarter of 2006 as the Company established its new distribution network throughout China.  

    Operating and administrative expenses during the quarter were $0.7 million, or 7.3% of revenue, compared to a credit of $0.3 million, in the same period of 2006.  China Agritech recorded $227,981 in allowance for doubtful accounts during the quarter compared to $170,236 in the fourth quarter of 2006.  The credits in the fourth quarter of 2006 represented the reversal of certain 
bad-debt expenses recorded in the previous three quarters of 2006 and were accounted for in the fourth quarter of 2006, which were more than the allowance for doubtful accounts incurred in the same quarter.  

    Income from operations was $2.5 million, up 8.1% from $2.3 million in the same period of 2006. Operating margin for the quarter was 26.8% compared to 37.9% in the fourth quarter of 2006.  

    Net income for the fourth quarter of 2007 was $1.5 million, up 27.5% from $1.1 million in the fourth quarter of 2006.  Fully diluted earnings per share were $0.06 for the fourth quarter of 2007 compared to fully diluted earnings per share of $0.06 for the same period a year earlier.  Weighted average fully-diluted shares for the fourth quarter of 2007 increased to 24,811,761 compared to weighted average fully-diluted shares of 19,143,615 in the fourth quarter of 2006, as the result of an additional 5,556,000 shares of common stock issued in a private placement in July 2007.

    Full Year Financial Results

    Revenues for the full year 2007 increased 33.0% to $39.3 million, from $29.5 million in 2006.  Gross profit increased to $20.3 million, up 32.3% from $15.3 million.  Gross profit margin was 51.8% in 2007 compared to 52.0% in 2006.  Income from operations increased 44.0% to $15.0 million from $10.4 million in the same period a year ago.  Net income in 2007 was $8.5 million, or $0.39 per fully diluted share up 59.4% from $5.3 million, or $0.29 per fully diluted share.    

    Financial Condition

    As of December 31, 2007, China Agritech had $13.9 million in cash and restricted cash, no long-term debt and $50.6 million in working capital.  Days' sales outstanding for the year was 161 compared to 127 in 2006.  Shareholders' equity stood at $50.8 million up from $26.9 million in 2006.  

    Business Outlook

    China Agritech completed its first granular fertilizer factory with 50,000 metric tons capacity in Beijing in March 2008.  The factory will begin test production in April; it is expected to begin production in May 2008.  The Company plans to add two new granular factories with 50,000 metric tons capacity each in Harbin and Xinjiang once the Beijing factory is operating smoothly.  China Agritech estimates that it will sell approximately 40,000 to 50,000 metric tons of granular fertilizer in 2008.  The Company continues to develop new markets in the central and southern regions of China for its organic liquid compound fertilizer.    

    China Agritech reaffirms its 2008 guidance for revenue to be in the range of $60 - $62 million, and net income to $9.5 - $10 million.  Fully diluted earnings per share are expected to be $0.38 to $0.40 based on 24.8 million fully diluted shares.  Capital expenditures for 2008 are estimated at $6 million.

    "We are actively ramping up production ahead of the peak agriculture season and have signed contracts with about 280 distributors.  Our contracts are for a full year although the majority of our fertilizer is delivered during the second and third quarters," concluded Mr. Chang.  "We have ramped up our marketing efforts throughout local villages and are providing more demonstrations of the benefits of using our fertilizer.  We are also in the initial stages of working with the Ministry of Agriculture to launch a national campaign for sustainable agriculture." 

    Conference Call Information

    Management will conduct a conference call to discuss China Agritech's fourth quarter and full year financial results and provide a corporate overview. The conference call will take place at 9:00 am ET on Friday, March 28, 2008. Hosting the call will be Mr. Kelviz Lim Kok Siak, Vice President of Finance of China Agritech. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (888) 419-5570. International callers should dial 617-896-9871. The pass code for the call is 129 657 34.  If you are unable to participate in the call at this time, a replay will be available on Friday, March 28, 2008 at 11:00 a.m. ET, through Friday, April 11, 2008. To access the replay from the United States dial 888-286-8010, or 617-801-6888 if calling internationally. Enter the conference ID number 37675636.  This conference call will be broadcast live over the Internet and can be accessed by all interested parties on the China Agritech website at http://www.chinaagritechinc.com . To listen to the live webcast, please go to the China Agritech website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on China Agritech's website for 90 days.

    About China Agritech Inc.

    China Agritech is engaged in the development, manufacture and distribution of organic liquid and granular compound fertilizers and related products in the People's Republic of China. The company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility.  The company sells it products to farmers located in twenty provinces of China including: Hainan, Anhui, Hubei, Jiangsu, Jiangxi, Guangxi, Liaoning, Shanxi Heilongjiang, Hebei, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan, Chongqing and Guizhou.  For more information visit http://www.chinaagritechinc.com .

    Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Agritech on its conference call in relation to this release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995.  These statements include, without limitation, statements regarding our ability to prepare the Company for growth, the Company's planned manufacturing capacity expansion in 2008 and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs, but these projections also involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC.  You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement.  The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.  


                          -- financial tables below -- 



                       CHINA AGRITECH, INC. AND SUBSIDIARIES                  
                      AUDITED CONSOLIDATED INCOME STATEMENTS                  
                  FOR THE YEARS ENDED DECEMBER 31, 2007, AND 2006             

                                                 2007            2006    
                                                                         
    Net revenue                           $39,270,292       $29,525,577  
    Cost of revenue                        18,939,725        14,161,358  
    Gross profit                           20,330,567        15,364,219  
    Operating expenses                                                   
    Selling expenses                        2,985,581         2,983,756  
    Operating and administrative expenses   2,418,895         2,015,252  
    Total operating expenses                5,404,476         4,999,008  
    Income from operations                 14,926,091        10,365,211  
    Other income (expense)                                               
    Other income                              111,852            98,617  
    Finance costs                                (271)           (3,590) 
    Total other income (expense)              111,581            95,027  
    Income before income taxes and                                       
     minority interests                    15,037,672        10,460,238  
    Provision for income taxes              5,391,464         4,248,144  
    Income before minority interests        9,646,208         6,212,094  
    Minority interests                     (1,117,583  )       (862,756) 
    Net income                             $8,528,625        $5,349,338  
    Other comprehensive income                                           
    Foreign currency translation                                         
     adjustment                             1,976,819           372,722  
    Other comprehensive income            $10,505,444        $5,722,060  
    Basic weighted average shares                                        
     outstanding                           21,868,338        18,735,944  
    Basic net earning per share                 $0.39             $0.29  
    Diluted weighted average shares                                      
     outstanding                           21,929,031        18,735,944  
    Diluted net earnings per share              $0.39             $0.29     



                       CHINA AGRITECH, INC. AND SUBSIDIARIES                  
                     UNAUDITED CONSOLIDATED INCOME STATEMENTS                 
              FOR THE THREE MONTHS ENDED DECEMBER 31, 2007, AND 2006          

                                                        2007            2006 
    Net revenue                                   $9,195,862      $6,002,968 
    Cost of revenue                                5,307,860       2,853,719 
    Gross profit                                   3,888,002       3,149,249 
    Operating expenses                                                   
    Selling expenses                                 756,100       1,143,016 
    Operating and administrative expenses            670,314        (271,120)
    Total operating expenses                       1,426,415         871,896 
    Income from operations                         2,461,587       2,277,353 
    Other income (expense)                                               
    Other income                                     158,269         137,760 
    Finance costs                                      2,866          (1,777)
    Total other income (expense)                     161,136         135,983 
    Income before income taxes and minority                              
     interests                                     2,622,722       2,413,336 
    Provision for income taxes                       938,932       1,059,286 
    Income before minority interests               1,683,790       1,354,050 
    Minority interests                               232,114         215,068 
    Net income                                    $1,451,676      $1,138,982 
                                                                         
    Basic weighted average shares                                        
     outstanding                                  24,699,615      19,143,615 
    Basic net earning per share                        $0.06           $0.06 
    Diluted weighted average shares                                      
     outstanding                                  24,811,761      19,143,615 
    Diluted net earnings per share                     $0.06           $0.06 



                  CHINA AGRITECH, INC. AND SUBSIDIARIES
   AUDITED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2007 AND 2006

                                               2007        2006          
                                  ASSETS                                 
    Current Assets                                                       
                                                               
    Cash and cash equivalents           $11,841,221  $6,430,009          
    Restricted cash                       2,011,415     100,028          
    Accounts receivable, net             22,695,039  12,239,073          
    Inventories                           3,508,741   1,322,244          
    Advances to suppliers                12,343,255   8,038,974          
    Prepayments and other                                                
     receivables                          1,242,694     382,463          
    Total Current Assets                 53,642,365  28,512,791          
    Property, Plant and                                                  
     Equipment, net                       3,798,958   2,514,123          
                                                                         
    Total Assets                        $57,441,323 $31,026,914          
                                                                         
                    LIABILITIES AND STOCKHOLDERS' EQUITY                  
    Current Liabilities                                                  
    Accounts payable                        $41,146    $108,886          
    Accrued expenses and other                                           
     payables                             1,047,721     871,495          
    Amount due to related                                                
     parties                                352,505         954          
    Tax payables                          1,650,243   1,028,885          
                                                                         
    Total Current Liabilities             3,091,615   2,010,220          
                                                                         
    Minority Interests                    3,465,724   2,160,575          
                                                                         
    Commitments                                  --          --          
                                                                         
    Stockholders' Equity                                                 
    Common stocks; $0.001 par                                            
     value, 100,000,000                                                  
     shares authorized, shares                                           
     issued and outstanding 
     24,699,615 and                                           
     19,143,615                              24,700      19,144          
    Additional paid-in capital           26,135,914  12,619,049          
    Statutory reserves                    4,299,653   2,790,916          
    Accumulated other                                                    
     comprehensive                                                       
    income                                2,578,107     601,288          
    Retained earnings                    17,845,610  10,825,722          
                                                                         
    Total Stockholders' Equity           50,883,984  26,856,119          
                                                                         
    Total Liabilities and                                                
     Stockholders' Equity               $57,441,323 $31,026,914           



                CHINA AGRITECH, INC. AND SUBSIDIARIES
            AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
           FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 

                                                    2007         2006       
    Cash flows from operating activities:                                
    Net income                                $8,528,625   $5,349,338    
    Adjustments to reconcile net income to                               
     net cash                                                            
    Provided by (used in) operating                                      
     activities:                                                         
    Stock based compensation                      37,942       (3,597) 
    Minority Interest                          1,117,583      862,756    
    Depreciation                                 390,736      155,292    
    Decrease / (Increase) in current                                     
     assets:                                                             
                                                                         
    Accounts receivable                       (9,275,894)  (3,357,026) 
                                                                        
    Other receivables                           (111,276)      55,024    
    Inventory                                 (2,186,497)  (1,502,205) 
    Advances to suppliers                     (3,626,775)  (5,769,071) 
    Prepayments                                 (344,423)     (62,887) 
    Other assets                                  22,532        2,024    
    (Decrease) / Increase in current                                     
     liabilities:                                                        
                                                                        
    Accounts payable                            (357,627)     262,020    
    Tax payables                                 532,043      365,731    
    Accrued expenses and other payables          625,851      305,739    
    Net cash provide by (used in)                                        
     operating activities                     (4,647,180)  (3,336,852) 
    Cash flows from investing activities:                                
     Restricted Cash                          (1,911,179)     174,972    
    Acquisition of property & equipment       (1,429,517)  (1,541,812) 
     Net cash used in investing activities    (3,340,697)  (1,366,840) 
    Cash flows from financing activities:                                
    Payments to shareholders / related                                   
     parties                                          --      (51,312) 
    Capital contributed                       13,484,478   11,079,705    
    Net cash provided by (used in)                                       
     financing activities                     13,484,478   11,028,393    
    Net increase in cash and cash                                        
     equivalents                               5,496,602    6,324,691    
    Effect of exchange rate change on cash                               
     and cash equivalents                        (85,390)    (150,513) 
    Cash and cash equivalents, beginning                                 
     of year                                   6,430,009      255,831    
    Cash and cash equivalents, end of year   $11,841,221   $6,430,009       



     For more information, please contact:

      CCG Elite Investor Relations 
      Crocker Coulson, President               
      Leslie Richardson, Financial Writer
      Tel:   +1-646-213-1915                                                 
      Email: crocker.coulson@ccgir.com	

      China Agritech, Inc.
      Kelviz Lim
      Tel:   +86-10-5962-1220
 
SOURCE  China Agritech, Inc.