XI'AN, China, May 11 /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 liquid compound fertilizer through its wholly owned
subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.
("Techteam"), today announced its financial results for the third
quarter of fiscal year 2009 ending March 31, 2009. -- Company
Exceeds Third Quarter Revenue and EPS Guidance -- Third Quarter
2009 Sales Increase 99.4% to $8.8 million, Net Income increases
132.7% to $3.9 million with EPS of $0.21 -- First Nine Months of
FY2009 Sales Increase 60.7% to $24.7 million, Net Income increases
56.1% to $10 million with EPS of $0.54 -- Company Raises Fiscal
Year 2009 Revenue and EPS Guidance to at least $32.8 million and
$0.71, respectively -- Management to Host Earnings Conference Call
on May 12 at 9:00 am ET Q3 2009 Results Q3 2009 Q3 2008 CHANGE Net
Sales $8.8 million $4.4 million +99.4% Gross Profit $5.1 million
$2.5 million +106.5% Net Income $3.9 million $1.7 million +132.7%
EPS (Basic and Diluted) $0.21 $0.09 +129.6% Third Quarter 2009
Results Net sales for the third quarter of fiscal year 2009 totaled
$8.8 million, up 99.4% from $4.4 million in the same quarter of
fiscal year 2008. Techteam's sales of humic acid based liquid
compound fertilizers contributed to 77.6% of our total net sales.
For the third quarter of fiscal year 2009, Techteam's net sales
increased $3.3 million, or 95.0%, to $6.9 million from $3.5 million
for the same quarter of fiscal year 2008. The increase was due
primarily to 17 new products introduced to the market during the
last 12 months and recent upgrades to the current production
facility which increased annual capacity from 10,000 metric tons to
15,000 metric tons. Sales volume increased 60.8% to 3,364 tons in
the third quarter of fiscal year 2009, versus 2,091 tons in the
same period of 2008. Sales of agricultural products from Jintai,
namely top-grade fruits, vegetables, flowers and colored seedlings
increased 116.2% and accounted for $2.0 million, or 22.4% of total
net sales. The increase in revenue growth from Jintai when compared
with previous quarters was primarily due to the strong sales of our
various decorative flowers, mainly butterfly orchids, big orchids
and red leaf flowers during this year's holiday. Gross profit for
the third quarter of fiscal year 2009 totaled $5.1 million, an
increase of 106.5% from $2.5 million in the same quarter of 2008.
Gross profit margin was 57.3% for the third quarter of fiscal year
2009, up from 55.3% in the third quarter of fiscal year 2008.
Operating expenses for the third quarter of fiscal year 2009 were
$0.6 million, up from $0.4 million in the same quarter of fiscal
year 2008, with the increase mainly being derived from incremental
public company expenses. Operating expenses were 6.9% of net sales
in the third quarter of fiscal year 2009, down from 9.0% of net
sales in the corresponding quarter of fiscal year 2008. Operating
income for the third quarter of fiscal year 2009 was $4.5 million,
up 116.9% from $2.1 million in the third quarter of fiscal year
2008. Operating margin was 50.4%, compared to 46.3% in the same
quarter of fiscal year 2008. Net income for the third quarter of
fiscal year 2009 was $3.9 million, or $0.21 per basic and fully
diluted share, up 132.7% compared with net income of approximately
$1.7 million, or $0.09 per basic and fully diluted share, during
the same period in fiscal year 2008. In the third quarter of 2009,
the average weighted shares outstanding were 18.6 million shares
versus 18.3 million shares in the year ago period. "We are pleased
with our financial results which exceeded both our revenue and EPS
guidance for the third quarter of fiscal year 2009", stated Mr. Tao
Li, Chairman, President and Chief Executive Officer of China Green
Agriculture. "We continue to deliver year-over-year growth in each
of our fertilizer product categories, which is driven by a broader
number of distributors across a larger geographic footprint, while
maintaining industry leading margins. We are confident that the
drivers in place, including increasing demand for green fertilizers
supported by consumer food safety and environmental concerns, along
with the desire for higher crop yields, will enable us to deliver
further revenue and earnings growth for our company during 2009."
Nine Months Results For the nine months of fiscal year 2009, net
sales increased 60.7% to $24.7 million, up from $15.4 million in
the corresponding year ago period. For the nine months of fiscal
year 2009, Techteam's net sales, which accounted for 78.6% of total
net sales, increased $7.5 million, or 64.0%, to $19.4 million from
$11.9 million for the same period of 2008. This increase was
benefited from new product introductions and improved production
capacity. Sales volume increased 54.4% to 10,799 tons in the nine
months of fiscal 2009, versus 6,992 tons in the same period of
2008. Gross profit increased 56.7% to $14.1 million in the nine
months of fiscal 2009, versus $9.0 million in the same period a
year ago. Gross margin was 57.1% in the nine months of fiscal 2009
compared to 58.5% during the same period of fiscal year 2008.
Operating income for the first nine months of fiscal 2009 rose
70.9% to $11.9 million compared to $7.0 million in the same period
of fiscal 2008. Net income, was $10.0 million, or $0.54 per basic
and fully diluted share, based on 18.6 million weighted average
shares. Net income in the year ago period was $6.4 million, or
$0.48 per basic and fully diluted share, based on 13.5 million
weighted average shares. Financial Condition As of March 31, 2009,
the Company had $13.6 million in cash and cash equivalents with
working capital of $21.8 million. The Company maintained short term
loans of $3.7 million and shareholders' equity of $28.2 million.
The Company had no long term debt as of March 31, 2009. Accounts
receivable stood at $6.9 million as of March 31, 2009 with trailing
twelve month days sales outstanding of 59.7 compared to $3.6
million as of June 30, 2008 and corresponding days sales
outstanding of 77.8. Inventories totaled $8.3 million as of March
31, 2009. For the nine months of fiscal 2009, the Company had $1.0
million in cash flows from operating activities, while capital
expenditures amounted to approximately $3.1 million due to the
building construction and equipment purchase for its new facility.
2009 Guidance China Green Agriculture's third quarter revenue of
$8.8 million and EPS of $0.21 exceeds previously announced guidance
for the third quarter of fiscal year 2009 of $7.7 million to $8.2
million and $0.14 to $0.17, respectively. Management is increasing
its guidance upward for fiscal year 2009 and now expects revenues
of $32.8 million to $33.3 million and EPS of $0.71 to $0.74 per
fully diluted share, respectively. Previous revenue and EPS
guidance was $31.6 million to $32.8 million and $0.61 to $0.66 per
fully diluted share, respectively. The Company's upward guidance
reflects the anticipated strong sales from its green fertilizer
products in the fourth quarter of 2009. "We are well positioned to
capitalize on the market opportunities within China's fertilizer
and agriculture industry. With a national distribution network,
state-of-the-art research and development, automated production,
and superior after-sales support, we have successfully built one of
the premier organic compound fertilizer producers in China today,"
stated Mr. Li. "We believe CGA will continue to benefit by offering
high yielding and environmentally sustainable fertilizers which are
paramount to China's agricultural production capabilities in the
face of shrinking arable land, ongoing consumer food safety
concerns and growing population. Supported by a vertically
integrated platform that utilizes 511 distributors to sell our 131
branded products through 27 provinces in China, we have built an
organization with multiple competitive advantages and superior
operating metrics, as evidenced by our third quarter 2009 gross and
operating profit margins of 57.3% and 50.4%, respectively. By
leveraging our new facility, which will be on line in August of
2009, we feel China Green Agriculture is well positioned to gain
further market share in China's green fertilizer market, which will
translate into long term revenue and net income growth," Mr. Li
concluded. Conference Call The Company will conduct a conference
call at 9:00am ET on Tuesday, May 12, 2009. Interested participants
should call 1-800-688-0796 when calling within the United States or
1-617-614-4070 when calling internationally. When prompted by the
operator, please mention conference passcode 623 913 35 or state
"China Green Agriculture Third Quarter Conference Call" to join the
call. Event: China Green Agriculture Third Quarter Conference Call
Date: May 12, 2009 Time: 9:00am ET US Dial In: 1-800-688-0796 Intl'
Dial In: 1-617-614-4070 Passcode: 623 913 35 A playback will be
available through Tuesday, May 19th, 2009. To listen, please call
1-888-286-8010 within the United States or 1-617-801-6888 when
calling internationally. Utilize the pass code 481 589 21 for the
replay. 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 15,000 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 three months ended March 31, 2009
are Shannxi (12.2%), Shandong (10.6%), Anhui (6.2%), Xinjiang
(6.0%) and Henan (5.4%), which in total accounted for 40.5% of our
total fertilizer sales from the sale of our fertilizer products.
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 CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2009 AND JUNE 30, 2008
(UNAUDITED) ASSETS March 31, 2009 June 30, 2008 Current Assets Cash
and cash equivalents $13,632,961 $16,612,416 Restricted cash
118,318 193,392 Accounts receivable, net 6,866,974 3,590,552
Inventories 8,258,769 3,988,979 Other assets 111,311 128,091
Advances to suppliers 140,347 512,845 Total Current Assets
29,128,680 25,026,275 Plant, Property and Equipment, Net 17,564,935
18,199,456 Construction In Progress 8,184,068 5,115,492 Intangible
Assets, Net 1,101,277 1,180,159 Total Assets $55,978,960
$49,521,382 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts payable $1,235,570 $232,417 Unearned revenue
58,935 88,950 Other payables and accrued expenses 481,526 455,228
Registration rights liability -- 506,142 Advances from other
unrelated companies 324,957 344,628 Amount due to related parties
31,157 31,121 Taxes payable 1,470,549 5,878,275 Short term loans
3,681,197 4,201,925 Total Current Liabilities 7,283,892 11,738,686
Common Stock, $.001 par value, 6,313,617 shares subject to
redemption 20,519,255 20,519,255 Commitment -- -- Stockholders'
Equity Preferred Stock, $.001 par value, 20,000,000 shares
authorized, Zero shares issued and outstanding -- -- Common stock,
$.001 par value, 780,000,000 shares authorized, 12,281,569 shares
issued and outstanding 12,282 12,068 Additional paid-in capital
2,016,604 1,200,077 Statuary reserve 2,988,308 1,882,797 Retained
earnings 20,704,629 11,764,079 Accumulated other comprehensive
income 2,453,990 2,404,419 Total Stockholders' Equity 28,175,813
17,263,442 Total Liabilities and Stockholders' Equity $55,978,960
$49,521,382 CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE
THREE AND NINE MONTHS ENDED MARCH 31, 2009 AND 2008 (UNAUDITED)
Nine Months Ended March Three Months Ended March 31, 31, 2009 2008
2009 2008 Net sales $24,721,802 $15,382,089 $8,841,675 $4,434,926
Cost of goods sold 10,608,336 6,377,066 3,776,138 1,982,084 Gross
profit 14,113,466 9,005,023 5,065,537 2,452,841 Operating expenses
Selling expenses 786,462 614,646 203,925 142,808 General and
administrative expenses 1,432,514 1,430,762 408,740 256,800 Total
operating expenses 2,218,976 2,045,408 612,665 399,608 Income from
operations 11,894,490 6,959,615 4,452,872 2,053,233 Other income
(expense) Other income(expense) 4,862 39,647 207 655 Interest
income 306,359 27,224 163,340 11,697 Interest expense (560,257)
(284,361) (112,334) (86,761) Bank charges (1,560) (6,442) (130)
(4,939) Total other income (expense) (250,596) (223,933) 51,083
(79,348) Income before income taxes 11,643,894 6,735,682 4,503,955
1,973,886 Provision for income taxes 1,597,833 301,841 613,673
301,841 Net income 10,046,061 6,433,842 3,890,282 1,672,045 Other
comprehensive items Foreign currency translation gain 49,570
1,511,242 57,891 957,245 Comprehensive income $10,095,631
$7,945,084 $3,948,173 $2,629,290 Basic weighted average shares
outstanding 18,439,569 13,482,590 18,559,206 18,314,017 Basic net
earnings per share $0.54 $0.48 $0.21 $0.09 Diluted weighted average
shares outstanding 18,440,958 13,482,590 18,560,594 18,314,017
Diluted net earnings per share $0.54 $0.48 $0.21 $0.09 CHINA GREEN
AGRICULTURE INC. AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE
NINE MONTHS ENDED MARCH 31, 2009 AND 2008 (UNAUDITED) 2009 2008
Cash flows from operating activities Net income $10,046,061
$6,433,842 Adjustments to reconcile net income to net cash provided
by operating activities Share capital contribution - rental and
interest paid by shareholders -- 32,656 Issuance of stock options
for compensation 112,247 -- Depreciation 1,121,989 703,271
Amortization 80,267 78,693 Decrease / (Increase) in current assets
Accounts receivable (3,269,466) 256,854 Other receivables 12,465
79,100 Inventories (4,261,570) (3,696,399) Advances to suppliers
372,837 (45,061) Other assets 6,528 (16,581) (Decrease) / Increase
in current liabilities Accounts payable 1,002,165 131,130 Unearned
revenue (30,100) 33,561 Tax payables (4,411,497) 1,855,704 Other
payables and accrued expenses 199,071 (365,254) Net cash provided
by operating activities 980,997 5,481,516 Cash flows from investing
activities Acquisition of plant, property, and equipment (465,648)
(4,917,610) Advances for construction in progress -- (409,841)
Additions to construction in progress (3,059,913) (20,655) Net cash
used in investing activities (3,525,561) (5,348,106) Cash flows
from financing activities Repayment of loan (525,475) (1,827,836)
Shares issuance cost -- 1,353,952 Proceeds issuance of shares
subject to redemption -- 18,602,720 Restricted cash 75,074
(4,228,641) (Payments)/proceeds to/from related parties --
(642,342) Net cash provided by (used in) financing activities
(450,401) 13,257,854 Effect of exchange rate change on cash and
cash equivalents 15,509 513,415 Net increase (decrease) in cash and
cash equivalents (2,979,455) 13,904,679 Cash and cash equivalents,
beginning balance 16,612,416 81,716 Cash and cash equivalents,
ending balance $13,632,961 $13,986,395 Supplement disclosure of
cash flow information Interest expense paid $(339,203) $(222,260)
Income taxes paid $(2,734,352) $-- Non Cash Transaction: Stock
issued for settlement of registration rights liability $704,494 $--
For further information, please contact: China Green Agriculture,
Inc. Ms. Ying Yang, Chief Financial Officer Tel: +1-626-623-2575
Email: HC International, Inc. Ted Haberfield, Executive VP Tel:
+1-760-755-2716 Email: Web: http://www.hcinternational.net/
DATASOURCE: China Green Agriculture, Inc. CONTACT: China Green
Agriculture, Inc., Ms. Ying Yang, Chief Financial Officer,
+1-626-623-2575, or HC International, Inc., Ted Haberfield,
Executive VP, +1-760-755-2716, , for China Green Agriculture, Inc.
Web site: http://www.cgagri.com/ http://www.hcinternational.net/
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