XI'AN, China, March 16 /PRNewswire-Asia/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced key milestones achieved in the construction of its new research and development center, Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd. ("Xi'an Yuxing").
The Company is on schedule in meeting its construction goals and has accomplished the following objectives:
-- Confirmation on the design of its 88-acre R&D center, Xi'an Yuxing;
-- Selection of its general contractor for Phase I construction through
an open-bid process;
-- Site preparation and installation of major utility infrastructure,
which includes water, gas and electricity supply.
The completion of the new R&D center will be accomplished in two major phases: Phase I includes the construction of one hundred sun-light greenhouses and Phase II includes the construction of twelve intelligent greenhouses. The new $38 million R&D center is expected to further expand CGA's product line offering and lead to the development and commercialization of new customized, high margin fertilizer products. Additionally, Xi'an Yuxing will cultivate and expand the Company's agricultural products which are currently sold to the local marketplace.
"We are very pleased to achieve important milestones in the development of our new R&D center," said Mr. Tao Li, the Company's chairman and CEO. "We plan to complete Phase I construction by the end of June 2010, which will further increase the Company's ability to introduce our new fertilizer products to the market in a shorter period of time. We are confident that the growing demand for our green fertilizer products, coupled with our expanding R&D platform will enable us to strengthen our leadership position, deliver incremental revenue and earnings growth, while expanding both gross and operating margins."
About China Green Agriculture, Inc.
China Green Agriculture, Inc. currently offers 141 different HA-based compound fertilizers, which are distributed via 540 individual distributors covering 21 provinces, 4 autonomous regions and 3 municipal cities in China. Its fertilizer products are certified by the Chinese government as "Green Food Production Materials." The leading five provinces which collectively accounted for 34.7% of the Company's fertilizer revenue for the three months ended December 31, 2009 are Shaanxi (9.1%), Shandong (6.8%), Guangdong (6.7%), Heilongjiang (6.2%) and Hebei (5.9%). For more information, visit http://www.cgagri.com .
Safe Harbor 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 Safe Harbor 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:
In the US:
China Green Agriculture, Inc.
Ms. Ying Yang, Chief Financial Officer
Tel: +1-626-623-2575
Email: yangying@cgagri.com
OR
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
In China:
China Green Agriculture, Inc.
Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
Tel: +86-29-8826-6368
Email: wangxilong@cgagri.com
