XI'AN, China, July 14, 2016 /PRNewswire/ -- China Green
Agriculture, Inc. (NYSE: CGA) ("China Green Agriculture",
"CGA" or the "Company"), a company that mainly produces
and distributes humic acid-based compound fertilizers, other
varieties of compound fertilizers and agricultural products through
its subsidiaries in China, today announced that its
wholly-owned subsidiary Shaanxi TechTeam Jinong Humic Acid Product
Co., Ltd., a company organized under the laws of the People's Republic of China ("Jinong"), as
authorized by the board of directors of the Company and Jinong, had
held a two-day senate conference during July
11th and 12th in Xi'an, and founded the "CGA Techteam Jinong
Corporate Senate" in Jinong (the "Senate").
The founding of the Senate was subsequent to the Company's
previously announced strategic acquisitions from last month. On
June 30th, 2016, Jinong
entered into acquisition agreements with the shareholders of six
companies. (The detailed summary of these acquisitions is available
at:
https://www.sec.gov/Archives/edgar/data/857949/000114420416111996/v443872_8k.htm)
The mandate of the Senate is to lead the Company to transform
from largely a basic material manufacturer to an open platform
based on a variety of new business models and products, which
transmit external partners with a series of needs, such as
agricultural materials, and services to serve agricultural
users.
The mission of the Senate in the current fiscal year is to build
a new business segment for the Company. The new business segment
will be aimed to become comparable to the Company's existing
business in term of revenue contribution. The new segment focuses
on the wholesale, retail, and distribution of key production
supplies in the agriculture industry. It will engage in the sales
of fertilizers, seeds, pesticide, and herbicide etc, including but
not limited to, the fertilizer products manufactured by the
Company.
Historically, the acquired six companies had been focusing on
sales distribution of such products mentioned above over years. The
members of the Senate are elected from: all the founders of the
acquired six companies, and key members in the Company's and
Jinong's management team. The Senate targets to grow the new
segment's yearly sales comparable to the Company's recent yearly
sales excluding the new segment. In the Senate, members will work
in several different committees to jointly achieve the yearly sales
goal.
The Senate consists of the following three committees: the
Committee of Strategy and Investments, the Committee of Risk
Management, and the Committee of Business and Markets. As the
strategy chamber, each committee will launch initiatives and make
key business decisions for the committee's responsibility.
Specifically, the functions of the committees are:
- The Committee of Strategy and Investments: seek potential
target companies for new business combination and expansion; design
deal structure and negotiate deal terms; execute acquisitions with
viable financing solutions.
- The Committee of Risk Management: implement risk management
framework, install internal control and audit, ensure compliance
and reporting across all subsidiaries.
- The Committee of Business and Markets: design new business
models and implement such models, link and unify fragmented
markets, optimize marketing resource sharing and allocation across
subsidiaries.
"We will become a bridge that transmits agricultural materials
such as fertilizers manufactured in the city to the countryside,
and conversely, bring the agriculture products from the field back
to the metro," said Mr. Zhuoyu Li, President of the Company, also
the architect and leader of the acquisitions. "Agriculture is
the foundation of our country. It serves the basic needs for all
people in both cities and countryside."
"CGA will not be limited to the fertilizer industry, we will
leap forward to the broader agricultural market." Mr. Tao Li,
The Chairman and CEO of the Company, stated, "The founding of the
Senate is an important open approach for the Company's agriculture
material business. We will improve customization, distribution and
development in every segment, and eventually realize a new
commercially civilized ecosystem in agriculture."
About China Green Agriculture, Inc.
The Company produces and distributes humic acid-based compound
fertilizers, other varieties of compound fertilizers and
agricultural products through its wholly-owned subsidiaries, i.e.:
Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong"),
Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), and a
variable interest entity, Xi'an Hu County Yuxing Agriculture
Technology Development Co., Ltd. ("Yuxing"). Jinong produced and
sold 130 different kinds of fertilizer products as of March
31, 2016, all of which are certified by the government of the
People's Republic of China (the "PRC") as Green Food
Production Materials, as stated by the China Green Food Development
Center. Jinong currently markets its fertilizer products to private
wholesalers and retailers of agricultural farm products in 27
provinces, four autonomous regions, and three
central-government-controlled municipalities in the PRC. Jinong had
1,064 distributors in the PRC as of March 31, 2016. Gufeng,
and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co.,
Ltd., are Beijing-based producers of compound fertilizers,
blended fertilizers, organic compound fertilizers, and mixed
organic-inorganic compound fertilizers. As of March 31, 2016,
Gufeng produced and sold 332 different kinds of fertilizer
products, and had 299 distributors in the PRC. For more
information, visithttp://www.cgagri.com. The Company routinely
posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
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, business and environment conditions, development,
shipment, market acceptance, additional competition from existing
and new competitors, changes in technology, the execution of its
ten-year growth plan, a satisfactory conclusion of the pending
securities class action litigation 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 SEC.
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, except as required by applicable law or
regulations.
For more information, please contact:
China Green Agriculture, Inc.
Ms. Ting Shi (English and Chinese)
Tel: +86-29-88266500
Email: tingshi@cgagri.com
Related Links
http://www.cgagri.com
https://www.sec.gov/Archives/edgar/data/857949/000114420416111996/v443872_8k.htm
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SOURCE China Green Agriculture, Inc.