XI'AN, China, Oct. 3, 2016
/PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA;
"China Green Agriculture" or the "Company"), a company which mainly
produces and distributes humic acid-based compound fertilizers,
varieties of compound fertilizers and agricultural products through
its subsidiaries and variable interest entities in China,
today announced its financial results for the Fiscal Year
ended June 30, 2016 and guidance on revenues and net incomes
for the First Fiscal Quarter 2017 and Fiscal Year 2017.
Highlights:
- Sales increased 2.1% to $268.8 million; Net Income
decreased 21.3% to $24.7 million; Earning per Share (EPS)
of $0.69 for the Fiscal Year 2016.
- Guidance for First Fiscal Quarter 2017: Revenue of $55 million to $60 million; Net Income of
$5 million to $7 million; EPS of
$0.14 to $0.19 based on 37 million
fully diluted shares.
- Guidance for Fiscal Year 2017: Revenue of $277million to $300 million; Net Income of
$20 million to $27 million; EPS of
$0.54 to $0.74 based on 37 million
fully diluted shares.
Financial Summary
Fourth Fiscal
Quarter 2016 Results (USD)
|
|
(Three
Months ended June 30, 2016)
|
|
|
Q4
FY2016
|
Q4
FY2015
|
CHANGE
(%)
|
Net Sales
|
$79.0
million
|
$78.5
million
|
0.6%
|
Gross
Profit
|
$21.5million
|
$28.2million
|
(23.8)%
|
Net Income
|
$5 million
|
$8.2
million
|
(34.1)%
|
EPS
(Diluted)
|
$0.15
|
$0.23
|
(39)%
|
Weighted Average
Shares Outstanding(Diluted)
|
36.7 million
|
34.0 million
|
7.9%
|
|
|
Fiscal Year
2016 Results (USD)
|
(Fiscal
Year ended June 30, 2016)
|
|
FY2016
|
FY2015
|
CHANGE
(%)
|
Net Sales
|
$268.8 million
|
$263.4 million
|
2.1%
|
Gross
Profit
|
$93million
|
$104.0million
|
(10.5)%
|
Net Income
|
$24.7million
|
$31.4million
|
(21.3)%
|
EPS
(Diluted)
|
$0.69
|
$0.93
|
(25.8)%
|
Weighted Average
Shares Outstanding (Diluted)
|
36.7
million
|
34.0
million
|
7.9%
|
"As we concluded our recent fiscal year, we are looking forward
to the new fiscal year in which we intend to place a particular
focus on building Jinong's and Gufeng's fertilizer franchises as
well as consolidating Yuxing's operations to pursue growth in
agriculture product revenue. We are very pleased with our
performance in our business operations which generated almost
$26 million net income in the year
ended June 30, 2016,"
Mr. Zhuoyu Li, President of the Company, continued: "On
June 30, 2016, Jinong, completed
strategic acquisition of six companies which are located in
different provinces or regions in China. We believe they all
are the dominant participants in their local markets and all focus
their business on agriculture sales and distribution industry,
including for fertilizers, pesticides, seeds and food."
We have successfully closed these acquisitions due to the
joint efforts from all involved parties. Our new team members
as well as the founders of these newly joined companies, all share
the same values with us. We own the same vision, which is to
transform ourselves from a manufacturer and a
wholesaler to a platform with unlimited capacity to
serve the underdeveloped but limitless rural markets
in China. Based upon these acquisitions, we are now
penetrating into the four market areas in
which these newly joined companies are positioned at. We are
leaping towards our goal of building the
largest agricultural platform for rural market
in China."
"I am very glad we have had the level of success we have
had with the completion of these acquisitions. This is a great step
for our transformation," said Mr. Tao Li, the Chairman and CEO
of the Company. " Looking ahead to the Fiscal Year 2017, we expect
to reach revenue of $277 to $300
million; net income of $20 to $27 million; and an EPS of $0.54 to
$0.74 based on 37 million fully
diluted shares. Moreover, we will implement a series of development
process along with our corporate restructuring to the use of our
resource. Therefore we expect to update our fiscal year guidance
when we announce the financial results of the First Fiscal Quarter
2017"
Fourth Fiscal Quarter 2016 Results of Operations
For the three months ended June 30, 2016, net sales
were $79 million, an increase of $0.5 million, or 0.6%,
from $78.5 million for the three months ended June
30, 2015. Among which, Gufeng contributed $49.1 million or
62.1% of total net sales, as compared to $45.9 million, or 48.9% of total net sales in the
same period last year; Jinong's net sales decreased $3.3
million, or 10.5%, to $28.1 million from $31.4
million in the same period last year; Yuxing's net sales
increased $0.6 million or 50%, to
$1.8 million, as compared
to $1.2 million for the same period last year.
Cost of goods sold increased $7.2
million, or 14.3%, to $57.5 million for the three
months ended June 30, 2016, as
compared to $50.3 million in the same
period last year; gross profit decreased by $4.1 million, or
14.5%, to $21.5 million as compared to $28.2 million in the same period last year; gross
profit margin was approximately 27.2% and 35.9% of net sale for the
three months ended June 30, 2016 and 2015,
respectively.
Besides, general and administrative expenses were $4
million or 5.1% of net sales, as compared to $2.4 million, or 3.1% of net sales in the same
period of last year, an increase of $1.6 million or 66.7%;
total operating expenses as a percentage of sales were 16.9%, as
compare to 21.7% in the same period of last year; Operating income
was $7.1 million, a decrease of $4.1
million or 36.6%, from $11.2
million in the same period last year. Operating margin was
8.9%, compared to 14.3% in the same quarter of Fiscal Year
2015.
Finally, net income was $5 million, a decrease of
$3.2 million as compared to
$8.2 million in the same period last
year.
Fiscal Year 2016 Results of
Operations
Net Sales
Total net sales for the fiscal year ended June 30, 2016 were $268.8
million, an increase of $5.4
million or 2.1%, from $263.3
million for the fiscal year ended June 30, 2015. This increase was primarily due to
an increase in Gufeng's and Yuxing's net sales.
For the fiscal year ended June 30,
2016, Jinong's net sales decreased $4.6 million, or 3.6%, to $125.7 million from $130.4
million for the fiscal year ended June 30, 2015. This decrease was mainly
attributable to the decrease in Jinong's sales volume, which was
result of Jinong's implementation of its new sales strategy that
focuses on producing high-margin liquid fertilizer during the last
fiscal year.
For the fiscal year ended June 30,
2016, Gufeng's net sales were $134.7
million, an increase of $6
million, or 4.7% from $128.7
million for the fiscal year ended June 30, 2015. The increase was mainly
attributable to Gufeng's expansion of its marketing promotion
strategy during the last fiscal year.
For the fiscal year ended June 30,
2016, Yuxing's net sales were $8.4
million, an increase of $4.1
million or 94.4%, from $4.3
million for the fiscal year ended June 30, 2015. The increase was mainly
attributable to the increase in market demand and the higher prices
on Yuxing's top grade flowers during the last fiscal year.
Cost of Goods Sold
Total cost of goods sold for the fiscal year ended June 30, 2016 was $175.8
million, an increase of $16.4
million, or 10.3%, from $159.4
million for the fiscal year ended June 30, 2015. This increase was mainly due to
higher raw material cost and packaging cost.
Cost of goods sold by Jinong for the fiscal year ended
June 30, 2016 was $53.5 million, an increase of $1.6 million, or 3.0%, from $51.9 million for the fiscal year ended
June 30, 2015. The increase in cost
of goods was primarily attributable to Jinong's raw material cost
and packaging cost offset the increased net sales.
Cost of goods sold by Gufeng for the fiscal year ended
June 30, 2016 was $116.4 million, an increase of $12.1 million, or 11.6%, from $104.4 millionfor the fiscal year ended
June 30, 2015. This increase was
primarily attributable to an increase in the cost of raw materials
and an increase in the sales of fertilizer products.
For year ended June 30, 2016, cost
of goods sold by Yuxing was $5.8
million, an increase of $2.7
million, or 88.3%, from $3.1
million for the fiscal year ended June 30, 2015. This increase was mainly due to
the increase in Yuxing's net sales.
Gross Profit
Total gross profit for the fiscal year ended June 30, 2016 decreased by $11 million to $93
million, as compared to $104
million for the fiscal year ended June 30, 2015. Gross profit margin was 34.6% and
39.5% for the fiscal year ended June 30,
2016 and 2015, respectively.
Gross profit generated by Jinong decreased by $6.2 million, or 7.9%, to $72.2 million for the fiscal year ended
June 30, 2016 from $78.4 million for the fiscal year ended
June 30, 2015. Gross profit margin
from Jinong's sales was approximately 57.4% and 60.1% for the
fiscal year ended June 30, 2016 and
2015, respectively. The decrease in gross profit margin was mainly
due to the increase in product costs.
For the fiscal year ended June 30,
2016, gross profit generated by Gufeng was $18.2 million, a decrease of $6.1 million, or 25%, from $24.3 million for the fiscal year ended
June 30, 2015. Gross profit margin
from Gufeng's sales was approximately 13.5% and 18.9% for the
fiscal year ended June 30, 2016 and
2015, respectively. The decrease in gross profit percentage was
mainly due to the increased weight for lower-margin products sales
in Gufeng's total sales answering to market demand.
For the fiscal year ended June 30,
2016, gross profit generated by Yuxing was $2.6 million , an increase of $1.4 million, or 109.8% from $1.2 million for the fiscal year ended
June 30, 2015. The gross profit
margin was approximately 30.8% and 28.6% for the fiscal year ended
June 30, 2016 and 2015, respectively.
The increase in gross profit percentage was mainly due to the
higher priced top grade flowers that Yuxing sold during the last
fiscal year.
Selling Expenses
Our selling expenses consisted primarily of salaries of sales
personnel, advertising and promotion expenses, freight-out costs
and related compensation. Selling expenses were $13.5 million, or 5.0%, of net sales for the
fiscal year ended June 30, 2016, as
compared to $9 million or 3.4% of net
sales for the fiscal year ended June 30,
2015, an increase of $4.5
million, or 50.1%.
General and Administrative Expenses
General and administrative expenses consisted primarily of
related salaries, rental expenses, business development,
depreciation and travel expenses incurred by our general and
administrative departments and legal and professional expenses
including expenses incurred and accrued for certain litigations.
General and administrative expenses were $11.8 million, or 4.4% of net sales for the
fiscal year ended June 30, 2016, as
compared to $11.3 million, or 4.3%,
of net sales for the fiscal year ended June
30, 2015, an increase of $0.5
million, or 4.5%.
Net Income
Net income for the fiscal year ended June
30, 2016 was $24.7 million, a
decrease of $6.7, or 21.3%, compared
to $31.4 million for the fiscal year
ended June 30, 2015. The
decrease was attributable to the increase in net sales, offset by
an increase in selling expenses. Net income as a percentage of
total net sales was approximately 9.2% and 11.9% for the fiscal
year ended June 30, 2016 and 2015,
respectively.
Financial Condition
As of June 30, 2016, cash and cash
equivalents were $102.9 million, an
increase of $10 million, or 10.7%,
from $93.0 million as of June 30, 2015. The Company has $4.7 million in short-term loans as of
June 30, 2016, a decrease of
$18.9 million, as compared to
$23.6 million as of June 30, 2015. We had accounts receivable of
$117 million as of June 30, 2016, as compared to $68.5 million as of June
30, 2015, an increase of $48.5
million or 70.8%.
First Fiscal Quarter 2017 and Fiscal Year
2017 Guidance
For the first quarter ending September
30, 2016, management expects net sales of $55 to $60 million, net income of $5 to $7 million, and EPS of $0.14 to $0.19 based on 37 million fully
diluted shares. For the Fiscal Year 2017, management expects
net sales of $277 million to $300
million, net income of $20 million to $27 million, and an EPS of $0.54 to $0.74 based on 37 million fully diluted
shares. Management expects to update the Company's fiscal year
guidance when it announces the financial results of the First
Fiscal Quarter 2017
Conference Call
The Company will hold a conference call at 7:30 a.m.
EST on Monday, October 3, 2016. Any interested
participants are welcome to join in the call by following the
dial-in details as set out below.
US Dial In:
|
1-
888-346-8982
|
|
Int'l Dial
In:
|
1-
412-902-4272
|
|
A playback will be available through October 10, 2016. To
listen, please call 1- 877-344-7529 within the United
States or 1-412-317-0088 when calling internationally. Replay
Access Code# 10093444.
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 variable
interest entities, Xi'an Hu County Yuxing Agriculture Technology
Development Co., Ltd. ("Yuxing"), Shaanxi Lishijie Agrochemical
Co., Ltd. ("Lishijie"), Songyuan Jinyangguang Sannong Service Co.,
Ltd. (Jinyangguang"), Shenqiu County Zhenbai Agriculture Co., Ltd.
("Zhenbai Argi"), Weinan City Linwei District Wangtian Agricultural
Materials Co., Ltd. ("Wangtian"), Aksu Xindeguo Agricultural
Materials Co., Ltd. (Xindeguo"), and Xinjiang Xinyulei
Eco-agriculture Science and Technology co., Ltd.
("Xinyulei"). For more information,
visit http://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, the foreign exchange risk amid the unexpected
announcement by the PRC government in August
2015 sending the yuan to a 3% devaluation 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.
Mr. Fang Wang (English and Chinese)
Tel: +86-29-88266383
Email: wangfang@cgagri.com
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visit:http://www.prnewswire.com/news-releases/china-green-agriculture-reports-fiscal-year-2016-financial-results-300337832.html
SOURCE China Green Agriculture, Inc.