Strengthens Distribution Network with 7 New Distributors in Q1 FY2010
XI’AN, China, Nov. 4 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE Amex: 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 launched three new HA based fertilizer products in the quarter ended September 30, 2009.
China Green Agriculture currently offers 137 different HA based compound fertilizers, which are distributed via the Company’s 537 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 following is a brief description of the Company’s three new products:
Jinong Humic Acid Boron -- a highly concentrated powder based fertilizer specifically developed to prevent Boron deficiency, which is a disorder affecting plants growing in deficient soils and is often associated with areas of high rainfall and leached soils. It promotes fullness of the fruits and stimulates more buds in the flowering stage.
Jinong Hyperkalemic Fertilization -- a highly concentrated powder based fertilizer that can be used as a substitute for soil top-dressing after dilution and is quickly absorbed by all crops. It improves the immune system and development of the plant and stimulates more buds in the flowering stage while promoting fullness of the fruits.
Jinong Solid Organic Fertilizer -- rich in humic acid and amino acid, this time-released granular fertilizer prevents adverse affects caused by disease, drought and flood. It promotes seedling growth and enhances the retention of water and nutrients while increasing plant productivity and crop yields.
"Our goal is to continue to introduce new products to the market quickly through our rapid and efficient R&D processes," said Mr. Tao Li, the Company’s chairman and CEO. "Our recently announced plans to build an additional 12 new greenhouses over an area of approximately 88 acres will further increase the company’s ability to develop both liquid and powder fertilizer products as well as humic acid based derivatives such as pesticides and herbicides. We are confident that the growing demand for our green fertilizer products coupled with our expanding R&D platform will enable us to deliver incremental revenue and earnings growth, while expanding both gross and operating margins."
Distribution Network Update
Additionally, the Company announced that that it has signed agreements with 7 new distributors throughout the quarter ending September 30, 2009. The 7 new clients have increased the Company’s regional distributor base to 537 individual distributors and have strengthened the Company’s distribution footprint in key provinces, autonomous regions and municipal cities, including Shanghai and Guangxi.
About China Green Agriculture, Inc.
China Green Agriculture, Inc. produces and distributes humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("Jinong"). Jinong produces and sells over 130 different kinds of fertilizer products per year. All of Jinong’s fertilizer products are certified by the PRC government as green food production materials, as stated by the China Green Food Research Center. Jinong’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). Jinong also has the capacity to produce highly concentrated powdered fertilizers. China Green Agriculture currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, 4 autonomous regions and 3 municipal cities in the PRC. The leading five provinces which collectively accounted for 36.4% of the Company’s fertilizer revenue for the year ended June 30, 2009 are Shandong (9.5%), Shaanxi (8.3%), Heilongjiang (6.5%), Xinjiang (6.5%) and Anhui (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, the impact of competitive products or pricing, changes in technology, additional financing requirements, development of new products, government approval processes, technological changes, 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