/C O R R E C T I O N -- China Green Agriculture, Inc. (NYSE Amex: CGA)/
29 Julho 2009 - 1:41PM
PR Newswire (US)
In the news release, "China Green Agriculture, Inc. Expects to
Exceed Revenue Guidance for Fiscal Year 2009," issued by China
Green Agriculture, Inc. (NYSE Amex: CGA) over PR Newswire Asia on
July 29, we are advised by the Company that under the section
titled "Business Outlook," the first sentence should read "The
Company plans to build 12 new greenhouses over a 539-mu
(approximately 88 acres) parcel of land to expand output of high
quality agricultural products for commercial sale while providing
an advanced testing field for new fertilizer products," instead of
"The Company plans to build 12 new greenhouses over a 539-acre
parcel of land to expand output of high quality agricultural
products for commercial sale while providing an advanced testing
field for new fertilizer products," as originally issued
inadvertently. The corrected release should read: China Green
Agriculture, Inc. Expects to Exceed Revenue Guidance for Fiscal
Year 2009 Company Provides Business Outlook for Fiscal Year 2010
XI'AN, China, July 29 /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.,
today announced that the Company expects to exceed the high end of
its previously announced revenue guidance of $32.8 million to $33.3
million due to strong sales from its green fertilizer products in
the fiscal fourth quarter of 2009. The Company now expects revenues
in excess of $34 million for fiscal year 2009; a record for the
company. Fiscal year 2009 and fourth quarter financial results will
be reported in mid-September 2009. "We are extremely pleased with
our business momentum which enabled us to exceed our previously
announced revenue guidance for the 2009 fiscal year," stated Mr.
Tao Li, Chairman and CEO of China Green Agriculture. "China Green
Agriculture continues to gain market share while further
establishing our position as a leading green fertilizer player in
our industry. We are confident that our extensive distribution
network, cohesive marketing strategy and sustained market demand
for our green fertilizer products, will enable us to deliver
incremental revenue and earnings growth for our company during
fiscal year 2010." Business Outlook Recently, China Green
Agriculture, Inc. completed a $28.8 million common stock offering.
As stated previously, the Company intends to use all of the net
proceeds to expand its existing research and development facilities
through the construction of new intelligent green-houses, research
and training centers. The Company estimates that these new
facilities will require an aggregate investment of approximately
$38.6 million over the course of two years. The Company plans to
build 12 new greenhouses over a 539-mu (approximately 88 acres)
parcel of land to expand output of high quality agricultural
products for commercial sale while providing an advanced testing
field for new fertilizer products. The new facility will continue
to increase the Company's capability to produce more products while
shortening the new product development cycle, which allows the
company to get products to market quickly, thus increasing revenues
and market share. In addition to developing new humic acid based
fertilizer products, the Company is planning to develop other
agricultural derivatives from humic acid, such as humic-acid based
organic pesticides, which can provide additional revenue sources
and increase profitability. The new facility is expected to reach
full capacity in 2013. The expanded research and development
efforts will also support the new 40,000 metric ton production
facility, which is the cornerstone of the Company's growth
strategy. China Green Agriculture currently only manufactures
liquid fertilizer products; however the new production facility is
capable of producing both liquid and highly concentrated fertilizer
(i.e. powder fertilizer). The Company expects to reach full
utilization of its 55,000 metric ton capacity over the next three
years after the new production facility commences operations in
August of 2009. Sales volume is expected to increase 40-45% with a
utilization rate of 35%-38% by the end of the fiscal year 2010.
Formal guidance for fiscal year 2010 will be provided by management
with the fourth quarter and fiscal year 2009 earnings announcement
scheduled for mid-September. "Our new greenhouse facilities will
further equip our research and development team to introduce new
products to meet the growing demand for green foods while bringing
our products to the market quickly," stated Mr. Tao Li, Chairman
and CEO of China Green Agriculture. "Our proprietary R&D
platform coupled with our strong marketing and after sales support
have allowed us to promptly generate revenue as we continue to
expand our market share over the next 3-5 years." 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
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 Shaanxi (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 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: OR HC International, Inc. Ted
Haberfield, Executive VP Tel: +1-760-755-2716 Email: In China:
China Green Agriculture, Inc. Mr. Jonnie Wang, Secretary of Board,
Investor Relations Officer Tel: +86-29-8826-6368 Email: DATASOURCE:
China Green Agriculture, Inc. Web site: http://www.cgagri.com/
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