-- Up to 50% increase in annual production capacity
XI'AN, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (OTC Bulletin Board: CGAG) ("China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that the Company has completed technical upgrades and efficiency improvements at its current fertilizer production facility.
China Green Agriculture's previous production capacity was 10,000 metric tons per year. The completion of the upgrade will enable the Company to produce up to 15,000 metric tons of HA liquid fertilizer per year. The technical and software upgrades will also enable the Company to produce higher quality HA fertilizer at a more efficient rate.
"Based on our extensive distribution network, strong marketing efforts and sustained market demand for our green fertilizer products, we expect that our increased capacity will be quickly absorbed by the Chinese fertilizer market. This expansion will be China Green Agriculture's primary growth driver for the fiscal year ending June 30, 2009, allowing us to meet our revenue and net income targets," commented Mr. Tao Li, Chairman and CEO of China Green Agriculture. "Although we are pleased that this current increase in capacity will allow us to cater to growing market demand in the short term, we are even more excited about the completion of our new, 40,000 metric ton facility which is expected to come online in July 2009 and provide the resources for continued expansion," added Mr. Li.
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 end user 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, 2008 include Heilongjiang (9.53%), Shandong (7.55%), Anhui (6.71%), Xinjiang (6.52%), and Henan (6.51%). 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:
Ms. Ying Yang
Chief Financial Officer
China Green Agriculture, Inc.
Tel: +1-626-623-2575
Email: yangying@techteam.com.cn
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Investor Relations
Tel: +1-646-213-1915 (NY Office)
Email: crocker.coulson@ccgir.com
Graham Reed, Financial Writer
Tel: +1-646-213-1907 (NY Office)
Email: graham.reed@ccgir.com
Web: http://www.ccgirasia.com
