XI'AN, China, Sept. 15 /PRNewswire-Asia-FirstCall/ -- -- Company
Exceeds Fiscal Year 2009 Revenue and EPS Guidance -- Fourth Quarter
2009 Sales Increase 45.8% to $10.5 million, Net Income increases
238.5% to $4.4 million with EPS of $0.24 -- FY2009 Sales Increase
55.8% to $35.2 million, Net Income increases 86% to $14.5 million
with EPS of $0.78 -- Company Provides Fiscal Year 2010 Revenue, Net
Income and EPS Guidance of at least $46.8 million, $18.8 million,
and $0.83, respectively -- Management to Host Earnings Conference
Call on September 16 at 9:00 am ET 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 its
financial results for the fourth quarter and fiscal year ending
June 30, 2009. Summary Results Q4 2009 Results Q4 2008 Q4 2009
CHANGE Net Sales $7.2 million $10.5 million +45.2% Gross Profit
$3.8 million $6.4 million +67.7% Net Income $1.3 million $4.4
million +228.6% EPS (Basic and Diluted) $0.07 $0.24 +223.7% Fiscal
Year 2009 Results FY 2008 FY 2009 CHANGE Net Sales $22.6 million
$35.2 million +55.8% Gross Profit $12.8 million $20.5 million
+60.0% Net Income $7.8 million $14.5 million +86.0% EPS (Basic and
Diluted) $0.53 $0.78 +47.8% Fourth Quarter 2009 Results Net sales
for the fourth quarter of fiscal year 2009 totaled $10.5 million,
up 45.2% from $7.2 million in the same quarter of fiscal year 2008.
Techteam's sales of humic acid based liquid compound fertilizers
contributed to 90.2% of total net sales. For the fourth quarter of
fiscal year 2009, Techteam's net sales increased $2.7 million, or
39.2%, to $9.5 million from $6.8 million for the same quarter of
fiscal year 2008. This increase was primarily due to strong sales
from its green fertilizer products and increase in production
capacity. Sales volume increased 15.1% to 4,243 tons in the fourth
quarter of fiscal year 2009, versus 3,685 tons in the same period
of 2008. Sales of agricultural products from Jintai, namely
top-grade fruits, vegetables, flowers and colored seedlings
increased 138.8%, comparing to the same quarter of fiscal year 2008
and accounted for $1.0 million, or 9.8% of total net sales. The
increase in revenue growth from Jintai when compared with the
previous corresponding quarter 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 fourth quarter of fiscal year 2009 totaled $6.4
million, an increase of 67.7% from $3.8 million in the same quarter
of 2008. Gross profit margin was 60.9% for the fourth quarter of
fiscal year 2009, up from 52.7% in the fourth quarter of fiscal
year 2008. Operating expenses for the fourth quarter of fiscal year
2009 were $1.2 million, down from $1.4 million in the same quarter
of fiscal year 2008. The decrease was mainly attributable to a
reduction in professional service fees compared to the year ago
period. Operating expenses were 11.3% of net sales in the fourth
quarter of fiscal year 2009, down from 20.1% of net sales in the
corresponding quarter of fiscal year 2008. Operating income for the
fourth quarter of fiscal year 2009 was $5.2 million, up 120.4% from
$2.4 million in the fourth quarter of fiscal year 2008. Operating
margin was 49.5%, compared to 32.6% in the same quarter of fiscal
year 2008. Net income for the fourth quarter of fiscal year 2009
was $4.4 million, or $0.24 per basic and fully diluted share, up
228.6% compared with net income of approximately $1.3 million, or
$0.07 per basic and fully diluted share, during the same period in
fiscal year 2008. In the fourth quarter of 2009, the average
weighted shares outstanding were 18.6 million shares versus 18.3
million shares in the prior year ago period. Fiscal Year 2009
Results For the fiscal year ending June 30, 2009, net sales
increased 55.8% to $35.2 million, up from $22.6 million for the
year ended June 30, 2008. For the fiscal year 2009, Techteam's net
sales, which accounted for 82.1% of total net sales, increased
$10.2 million, or 55.0%, to $28.9 million from $18.6 million for
the fiscal year 2008. This increase was primarily due to due to
strong sales from its green fertilizer products. Sales volume
increased 40.9% to 15,042 tons for the year ended June 30, 2009
from 10,677 tons for the year ended June 30, 2008. This increase
was attributable to production capacity upgrades, the introduction
of 15 new products and the net addition of 50 new distributors.
Jintai's net sales, which include sales of agricultural products,
namely top-grade fruits, vegetables, flowers and colored seedlings
by using our existing and new fertilizers, increased $2.4 million
or 59.5%, to $6.3 million for the year ended June 30, 2009 from
$4.0 million for the same period in 2008. This increase was largely
due to the strong sales of various decorative flowers, mainly
butterfly orchids, big orchids and red leaf flowers during this
year's holiday seasons. Gross profit increased 60.0% to $20.5
million in the fiscal year 2009, versus $12.8 million in the same
period a year ago. Gross margin was 58.2% and 56.7% for the years
ended June 30, 2009 and 2008, respectively. Operating income for
the fiscal year 2009 rose 83.4% to $17.1 million compared to $9.3
million for the fiscal year 2008. Net income, was $14.5 million, or
$0.78 per basic and fully diluted share, based on 18.5 million
weighted average shares. Net income in the year ago period was $7.8
million, or $0.53 per basic and fully diluted share, based on 14.7
million weighted average shares. "We are pleased with our financial
results which exceeded both our revenue and EPS guidance for the
fiscal year 2009," stated Mr. Tao Li, Chairman, President and Chief
Executive Officer of China Green Agriculture. "We continue to
experience robust growth driven by an extensive distribution
network encompassing a large geographic footprint. We are confident
that the growing demand for our green fertilizer products coupled
with our strong marketing efforts and after sales support will
enable us to deliver incremental revenue and earnings growth, while
maintaining industry leading margins for fiscal year 2010."
Financial Condition As of June 30, 2009, the Company had $17.7
million in cash and cash equivalents. The Company maintained short
term loans of $3.2 million and shareholders' equity of $32.6
million. The Company had no long term debt as of June 30, 2009.
Accounts receivable stood at $8.2 million as of June 30, 2009 with
trailing twelve month days sales outstanding of 60. Inventories
totaled $7.2 million as of June 30, 2009. For the fiscal year
ending June 30, 2009, the Company had $7.2 million in cash flows
from operating activities, while capital expenditures amounted to
approximately $5.1 million due to the building construction and
equipment purchase for its new production facility. 2010 Guidance
China Green Agriculture's fiscal year 2009 revenue of $35.2 million
and EPS of $0.78 exceeded the high end of its previously announced
revenue and EPS guidance for the fiscal year 2009 of $32.8 million
to $33.3 million and $0.71 to $0.74, respectively, due to strong
sales from its green fertilizer products. For the first fiscal
quarter ending September 30, 2009, management expects revenues of
$10.5 million to $11.2 million and EPS of $0.19 to $0.21 per fully
diluted share, respectively. For the fiscal year ending June 30,
2010, management expects revenues of $46.8 million to $49.4
million, net income of $18.8 million to $19.9 million, and EPS of
$0.83 to $0.88 based on 22.7 million fully diluted shares,
respectively. The Company's guidance reflects the anticipated
strong sales from its green fertilizer products in the fiscal year
2010. Please note: An increased share count due to the recent
offering is the reason for the difference in net income and EPS
growth projected for fiscal year 2010. "We are confident that CGA
will continue to capitalize on the market opportunities within
China's fertilizer and agriculture industry," stated Mr. Li. "Based
on the growing market demand for our green compound fertilizer
products coupled with our extensive distribution network, we expect
that our recent increase in production capacity to 55,000 metric
tons will be rapidly absorbed by the Chinese fertilizer market. We
believe the Company will continue to benefit by offering high
yielding and environmentally sustainable fertilizers which are
vital 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 currently utilizes 530 distributors to sell our 134 branded
products through 21 provinces, 4 autonomous regions and 3 municipal
cities in China, we have built an organization with multiple
competitive advantages and superior operating metrics. By
leveraging our new production facility, supported by our existing
and new greenhouse facilities, we feel China Green Agriculture is
well positioned to gain further market share in China's green
fertilizer market," Mr. Li concluded. Conference Call The Company
will conduct a conference call at 9:00 a.m. ET on Wednesday,
September 16, 2009. Interested participants should call
1-877-407-9210 when calling within the United States or
1-201-689-8049 when calling internationally. When prompted by the
operator, please mention "China Green Agriculture Fourth Quarter
and Fiscal Year 2009 Conference Call" to join the call. Event: CGA
Fourth Quarter and Fiscal Year 2009 Conference Call Date: September
16, 2009 Time: 9:00 a.m. ET US Dial In: 1-877-407-9210 Intl' Dial
In: 1-201-689-8049 Conference ID#: 332102 The call is being webcast
by Vcall and can be accessed at China Green Agriculture's website
at http://www.ir-site.com/cgagri/events.asp . Investors can also
access the webcast at http://www.investorcalendar.com/ . A playback
will be available through September 30, 2009. To listen, please
call 1-877-660-6853 within the United States or 1-201-612-7415 when
calling internationally. Replay Passcodes (both required for
playback): Account #: 286; Conference ID #: 332102. 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 130 different kinds of fertilizer products per year. All of
TechTeam's fertilizer products are certified by the PRC government
as green food production 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). Techteam 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 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%), Heilongiiang (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, 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 For more information,
please contact: In the US: 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: In China: China Green Agriculture, Inc. Mr.
Jonnie Wang, Secretary of Board, Investor Relations Officer Tel:
+86-29-8826-6368 Email: -- Financial Tables Follow -- CHINA GREEN
AGRICULTURE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS
OF JUNE 30, 2009 AND 2008 (AUDITED) ASSETS June 30, 2009 June 30,
2008 Current Assets Cash and cash equivalents $17,795,447
$16,612,416 Restricted cash 83,579 193,392 Accounts receivable, net
8,167,715 3,590,552 Inventories 7,162,249 3,988,979 Other assets
129,213 128,091 Deferred offering cost 160,500 -- Advances to
suppliers 95,255 512,845 Total Current Assets 33,593,958 25,026,275
Plant, Property and Equipment, Net 17,341,654 18,199,456
Construction In Progress 9,609,649 5,115,492 Intangible Assets, Net
1,073,165 1,180,159 Total Assets $61,618,426 $49,521,382
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts
payable $926,883 $232,417 Unearned revenue 24,000 88,950 Other
payables and accrued expenses 1,091,168 455,228 Registration rights
liability -- 506,142 Advances from other unrelated companies
326,970 344,628 Amount due to related parties 31,160 31,121 Taxes
payable 2,887,828 5,878,275 Short term loans 3,170,290 4,201,925
Total Current Liabilities 8,458,299 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 2,060,162 1,200,077 Statuary
reserve 3,468,530 1,882,797 Retained earnings 24,642,768 11,764,079
Accumulated other comprehensive income 2,457,130 2,404,419 Total
Stockholders' Equity 32,640,872 17,263,441 Total Liabilities and
Stockholders' Equity $61,618,426 $49,521,382 CHINA GREEN
AGRICULTURE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME AND COMPREHENSIVE INCOME FOR THE YEARS ENDED JUNE 30, 2009
AND 2008 (AUDITED) Year Ended June 30, 2009 2008 Net sales
$35,207,997 $22,604,719 Cost of goods sold 14,712,066 9,792,856
Gross profit 20,495,931 12,811,863 Operating expenses Selling
expenses 1,412,101 927,285 General and administrative expenses
1,993,817 2,567,661 Total operating expenses 3,405,918 3,494,945
Income from operations 17,090,013 9,316,917 Other income (expense)
Other income(expense) 5,202 43,694 Interest income 334,948 50,106
Interest expense (632,446) (933,053) Bank charges (1,747) (6,663)
Total other income (expense) (294,043) (845,916) Income before
income taxes 16,795,970 8,471,001 Provision for income taxes
2,331,548 692,474 Net income 14,464,422 7,778,527 Other
comprehensive items Foreign currency translation gain 52,711
2,160,701 Comprehensive income $14,517,133 $9,939,228 Basic
weighted average shares outstanding 18,478,474 14,688,250 Basic net
earnings per share $0.78 $0.53 Diluted weighted average shares
outstanding 18,532,591 14,695,626 Diluted net earnings per share
$0.78 $0.53 CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2009 AND 2008
(AUDITED) 2009 2008 Cash flows from operating activities Net income
$14,464,422 7,778,527 Adjustments to reconcile net income to net
cash provided by operating activities Share capital contribution -
rental and interest paid by shareholders -- 10,216 Issuance of
stock options for compensation 155,804 477,487 Depreciation
1,494,489 988,240 Amortization 108,525 105,266 Decrease /
(Increase) in current assets Accounts receivable (4,570,071)
(1,412,479) Other receivables (13,234) 89,759 Inventories
(3,166,338) (1,905,399) Advances to suppliers 418,072 (265,955)
Other assets 10,875 (14,477) (Decrease) / Increase in current
liabilities Accounts payable 693,896 (73,799) Unearned revenue
(65,037) (1,309) Tax payables (2,996,862) 3,161,272 Other payables
and accrued expenses 649,544 180,261 Net cash provided by operating
activities 7,184,086 9,117,611 Cash flows from investing activities
Acquisition of plant, property, and equipment (612,662) (5,840,159)
Additions to construction in progress (4,485,059) (4,782,862) Net
cash used in investing activities (5,097,721) (10,623,021) Cash
flows from financing activities Repayment of loan (1,036,770)
(481,914) Shares issuance -- (1,916,532) Proceeds issuance of
shares subject to redemption -- 20,519,255 Restricted cash 109,813
(193,392) (Payments)/proceeds to/from related parties -- (669,233)
Net cash provided by (used in) financing activities (926,957)
17,258,183 Effect of exchange rate change on cash and cash
equivalents 23,623 777,927 Net increase (decrease) in cash and cash
equivalents 1,183,031 16,530,700 Cash and cash equivalents,
beginning balance 16,612,416 81,716 Cash and cash equivalents,
ending balance $17,795,447 $16,612,416 Supplement disclosure of
cash flow information Interest expense paid $(433,821) $(222,260)
Income taxes paid $(2,112,985) $-- Non Cash Transaction: Stock
issued for settlement of registration rights liability $704,494 $--
DATASOURCE: China Green Agriculture, Inc. CONTACT: In the US: China
Green Agriculture, Inc., Ms. Ying Yang, Chief Financial Officer,
+1-626-623-2575, or ; or HC International, Inc., Ted Haberfield,
Executive VP, +1-760-755-2716, or ; In China: China Green
Agriculture, Inc., Mr. Jonnie Wang, Secretary of Board, Investor
Relations Officer, +86-29-8826-6368, or Web site:
http://www.cgagri.com/ http://www.investorcalendar.com/
http://www.ir-site.com/cgagri/events.asp
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