XI’AN, China, Sept. 8 /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 released a letter to shareholders from the company’s CEO, Tao Li, outlining the Company’s immediate investor relations plan and establishing guidance for 2008 and 2009.
Dear Shareholders:
As China Green Agriculture’s registration statement was declared effective in August and trading activity has increased, I would like to take this opportunity to provide an update on the Company’s recent developments and progress as we embark on a more proactive relationship with the investment community. First and foremost, I look forward to formally announcing the results of our 2008 financial year in September. China Green Agriculture has experienced a year of aggressive expansion, with annual production now surpassing the designed capacity of our manufacturing facilities. For the first nine months of fiscal year 2008, China Green Agriculture’s revenues grew 69.6% year over year to $15.4 million while net income increased 60.8% to $6.4 million, or $0.63 per basic and fully diluted share, compared to $4.0 million, or $0.37 per basic and fully diluted share in the first nine months of 2007.
China Green Agriculture is a leading developer and supplier of liquid humic acid based fertilizer with a network with 480 distribution centers covering 27 provinces and regions in China. We are unparalleled in our broad range of product offerings which are engineered for superior performance in specific microclimates and on targeted crop variations. These are developed in our $10 million, 137,000 square meter R&D facility which allows us to simulate almost any climatic growing condition in China. In fact, our soil free greenhouses have proven so successful, we’ve developed a side business selling produce developed in our R&D facilities to local markets and restaurants which generated $1.8 million in revenue in 2007. China Green Agriculture’s fertilizers are certified “green” by the Chinese government, making them compatible with sustainable, environmentally friendly agricultural practices. Our fertilizers are produced on a fully automated and computerized production line housed in a 47,000 square meter facility. The Company’s state of the art technology allows us to operate with a skeleton team of only 18 employees, a fraction of the work force needed to operate a standard facility of significantly smaller scale. We are supported with a strong, localized sales and marketing force of over 100 employees, developed specifically to work in China’s unique agricultural environment made up of a patchwork of small, family-run farms. We have revolutionized customer service in the fertilizer industry, providing unfettered access to our experts via hotlines, the Internet and text messaging. For these reasons, China Green Agriculture is favorably positioned in the fertilizer industry for continued growth.
Throughout the remainder of the year, China Green Agriculture plans to remain focused on the construction of its new manufacturing facilities, raising production capacity from 10,000 tons per year to 50,000 tons per year. Not only will this facility allow us to increase output, it will also allow the Company to diversify into the production of liquid fertilizer products. We expect our added production capacity to be operational by the beginning of 2009. As a result, we are confident that we will be able to achieve our ‘make good’ target of net income for fiscal 2009 of $12.0 million or $0.61 per fully diluted share.
While we remain focused on growing our business, China Green Agriculture is well aware of the importance of maintaining an open path of communication with the investment community. As a result, we intend to commence holding quarterly earnings calls starting with our year end earnings report to give investors the opportunity to receive updates and ask questions of management directly. Immediately following our earnings announcement, we expect to travel throughout the US to meet with current and prospective investors. In addition, we plan to attend an investment conference focused on US-listed Chinese companies held by Roth Capital in Las Vegas, Nevada on November 19.
If you would like to learn more about these opportunities to meet face to face with China Green Agriculture’s management, please do not hesitate to contact our outside investor relations firm, CCG, at +1-646-213-1915, or us directly at +86-29-88266368. In addition, our corporate website provides a general overview of our operations, our financials and recent company events. To download a copy of our corporate presentation, please visit us at http://www.cgagri.com/investor/presentation.pdf . On be half of the entire management team at China Green Agriculture, we look forward to sharing regular updates on our corporate development and maintaining an active dialogue with the investor community.
Tao Li
CEO, China Green Agriculture, Inc.
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: anticipated financial performance, 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.
Company Contact:
Mr. Tao Li
Chief Executive Officer
China Green Agriculture, Inc.
Tel: +86-29-8826-6386
Email: kingtone@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
Web: http://www.ccgirasia.com
