XI’AN, China, Sept. 9 /Xinhua-PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (OTC Bulletin Board: CGAG) (“China Green Agriculture” or “the Company”), a leading producer and distributor of organic humic acid (“HA”) based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has signed agreements with 30 new distributors throughout its most recent fiscal year, strengthening its distribution network.
The 30 new clients have increased the Company’s regional distributor base to 480 individual distributors covering 27 provinces in China. The new contracts have strengthened the Company’s local market foothold in several provinces including Anhui, Fujian, Gansu, Xinjiang, Hunan, Hubei, Henan, Guangxi, and Yunnan, contributing roughly 13% of the Company’s total revenue in 2008. With the cooperation of distributors, the Company promotes and introduces its new and existing fertilizer products through television and print advertisements, local meetings and lectures. Revenues from contract orders are incurred upon the initiation of contracts, either in full or with a 50% initial payment depending on the size of the order.
“We are pleased with our progress in terms expanding our distributor base to cover smaller counties within our nationwide network,” said Mr. Tao Li, chairman and CEO. “We expect to engage a total of 540 distributors in 2009 as we ramp up production based on our plan to increase capacity to 40,000 tons. In this way, China Green Agriculture intends to maintain its strong recent record of growth in the medium term.”
About China Green Agriculture, Inc.
China Green Agriculture, Inc. produces and distributes humic acid (“HA”) based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., (“TechTeam”). TechTeam produces and sells approximately 10,000 metric tons of over 100 different kinds of fertilizer products per year. All of TechTeam’s fertilizer products are certified by the PRC government as green products and suitable for growing Grade AA "green" foods, also known as green products that contain little or no chemical materials, as stated by the China Green Food Research Center. TechTeam’s fertilizers are highly concentrated liquids which require an application of approximately 120 ml per mu per application. Its average customer has approximately four mu of land (one mu = .165 acres).
China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 27 provinces in the PRC. The leading five provinces by revenue for the fiscal year ended June 30, 2007 include Heilongjiang (9.99%), Guangdong (7.81%), Xinjiang (6.59%), Shandong (5.81%), and Henan (5.80%). For more information, visit http://www.cgagri.com .
Cautionary Statement
This press release contains forward-looking statements concerning the Company’s business, products and financial results. The Company’s actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company’s control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Company Contact:
Mr. Tao Li
Chief Executive Officer
China Green Agriculture, Inc.
Tel: +86-29-88266386
Email: kingtone@techteam.com.cn
Web: http://www.cgagri.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Investor Relations
Tel: +1-646-213-1915 (NY Office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
