China, as well as plenty of emerging Eastern countries, is growing at a rapid pace. It was recently reported that the Gross Domestic Product in China increased by 9.70% in the first quarter of 2011 as compared to the same quarter in the year prior. China boasts the second largest economy in the world after the United States.
Retail sales are soaring, producer and consumer prices are up and industrial production topped estimates in the most recent quarter. On the whole, China’s economic outlook remains broadly favorable. Demand remains strong and plenty of foreign-based companies are looking to exploit the burgeoning countries requirements.
Denver-based AgriSolar Solutions, Inc. (OTCBB:AGSO), a manufacturer of patented, pesticide-free, solar powered insect elimination systems for use on farms, orchards and vineyards, is one such company reaping the rewards of Chinese consumption. AgriSolar's manufacturing facility is operated by its subsidiary, Shenzhen Fuwaysun Technology Company Limited, located in Shenzhen.
AgriSolar is focused on enhancing the quality of food products by providing alternatives to the use of chemicals in the global food chain while at the same time significantly improving the economics of commercial agriculture. The business strategies are proving fruitful (no pun intended) as more than 65,000 of the Company's solar powered insect elimination systems have been installed throughout the world.
Last week, AgriSolar announced it had received the largest single order in its history from one of its largest distributors, China-based Sichuan Gifore Agricultural Machinery Chain Co., Ltd. Specifically, Sichuan placed a $13-million order for AgriSolar's solar powered insect control systems. Responding expeditiously, AgriSolar has already begun manufacturing efforts in order to provide near term deliveries.
Today, AgriSolar followed that announcement with another multi-million-dollar order. This particular order for more of the environmentally-friendly bug killers came from 13 provinces within the People's Republic of China; putting AgriSolar on pace to top last year’s orders and sales.
It appears that members of the Chinese agricultural industries are seeing the financial benefit of the AgriSolar product. The Company estimates that the cost to use the cheapest insecticide available in the marketplace is approximately $9 per acre per month, and that the cost of herbal or organic insecticides is $60 per acre per month.
In comparison, AgriSolar estimates that the cost to use its solar insect killer is substantially lower, approximately $1 per acre per year. As a result, users can enjoy significant cost advantages by using the Company's solutions instead of traditional insecticides all the while treating our environment in a much more responsible manner.
Investors aren’t exactly hopping on board with AGSO even with the good news hitting the wire recently. Shares are trading near 29 cents each, only a few pennies ahead of all-time lows.
With a small float of approximately 25 million shares and only a total of 59 million outstanding, the market cap which currently stands around $17 million may just take care of itself and find a way to climb if the Company can stay the course with more orders of this magnitude.
