XI'AN, China, June 11 /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 that it had designated a total of 510 stores as "Authorized Retailers" of its Jinong branded HA compound fertilizer products as of May 30, 2010. This marks an increase of 202 additional stores selected since the end of March 2010, and exceeds the Company's original goal of naming 500 Authorized Retailers by the end of its fiscal year ending June 30, 2010. China Green Agriculture now expects to have a total of 650 Authorized Retailers designated by the end of June 2010.
"We are pleased with the rapid implementation of this highly targeted marketing program as we continue to leverage our existing distribution network to further build brand awareness and drive incremental sales and profitability," stated Mr. Tao Li, the Company's chairman and CEO. "Due to anticipated strong sales of our HA compound fertilizer products, driven in part by strategic initiatives such as our Authorized Retailers program, we expect sales volume to increase by at least 40% per year over the next three fiscal years. Targeted acquisitions could accelerate sales growth further. With expanded production capacity, new research and development capabilities coming on line, and targeted investments being made in building brand awareness, we believe we are poised to further establish our position as a recognized market leader within the organic fertilizer industry in China."
China Green Agriculture's program of designating Authorized Retailers was initiated by the Company in January 2010 as part of a targeted marketing strategy to further expand brand awareness of its Jinong products and to increase utilization of the Company's expanded production capacity. Under the program, the Company works closely with its existing distributors and enters into agreements allowing for prominent displays of "China Green Agriculture Authorized Retailer" on exhibits, well-positioned standardized shelf and product displays in the retail shops supported by educational materials on proper product use, and the placement of branded commercial ads on delivery trucks in addition to billboard ads which target farmers with the product logo and tagline.
To qualify as an Authorized Retailer of China Green Agriculture's Jinong branded HA fertilizer products, a store must have been a retailer of Jinong's products for a minimum of two years and have a full understanding of the marketing, promotion and characteristics of the products. The retail store must have been in operation for a minimum of five years and be fully owned or have at minimum a five-year lease. In addition, the store must be at least 30 square meters in size, be centrally located in its market area, and be free of any record of breaching contract terms.
About China Green Agriculture, Inc.
China Green Agriculture, Inc. currently offers 148 different HA-based compound fertilizers, which are distributed via 552 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 40.4% of the Company's fertilizer revenue for the three months ended March 31, 2010 are Shaanxi (11.2%), Shandong (10.8%), Anhui (7.9%), Henan (5.6%), and Sichuan (4.9%). 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 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:
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
