China Green Agriculture, Inc. Announces Sales Strategy for 2010-2012
October 20 2009 - 7:00AM
PR Newswire (US)
Company Implements Comprehensive Brand Awareness Program To Launch
Retail Chain Store Pilot in January 2010 XI'AN, China, Oct. 20
/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 compound
fertilizer through its wholly owned subsidiary, Shaanxi TechTeam
Jinong Humic Acid Product Co., Ltd., today announced its sales
strategy for fiscal years 2010 through 2012. China Green
Agriculture recently adopted a sales strategy to significantly
increase brand awareness of its "Jinong" fertilizer products among
millions of farmers throughout China, with the goal of
incorporating "Jinong" quality products and services into the
farmers' daily life, while intensifying a distinguished, highly
regarded national brand by 2012. The Company has already begun
implementing specific marketing tactics through existing
distributors in China which are aimed at improving its product
messaging. In an effort to reach its goal of full production
capacity utilization during the next three years, the Company
intends to focus its marketing efforts on the quality image of
"Jinong" through its distributors as well as retail stores which
carry the products. This includes prominent displays of "China
Green Agriculture Authorized Distributor (or Retailer)" on
exhibits, well-positioned standardized shelf and product displays
in the retail shops supported by educational materials on proper
product use, and the placement of branded commercial ads on
delivery trucks in addition to billboard ads which target farmers
with the product logo and tagline. As an extension of this growth
strategy, the Company plans to increase both top-line growth and
gross margins by opening directly-owned retail stores, which will
offer the "Jinong" organic compound fertilizer products directly to
farmers and other end users. The pilot program is expected to be
launched in January 2010 at which time further details, including
the number and store locations, will be provided. The success of
the program will be evaluated by measuring specific performance
targets taken during a six-month time frame, which includes, but is
not limited to, total sales volume generated, profitability, days
sales outstanding (DSO), Return on Investment (ROI) and brand
awareness. The chain stores will be strategically located in
various cities with highly visible storefronts displaying the China
Green Agriculture brand name. Each store will have an assigned
territory and will not compete with any of the Company's existing
530 distributors or any future distributors. China Green
Agriculture expects to increase sales volume by at least 40% per
annum over the next three fiscal years due to anticipated strong
sales in the Company's organic compound fertilizer products and its
recent increase in total production capacity from 15,000 metric
tons to 55,000 metric tons. Management expects that revenue
contributions from Company-owned retail stores should enable future
margin improvements. "Following the recent success in expanding our
production capacity, we expect robust sales of our branded organic
fertilizer products through new product offerings, strong after
sales support and tailored marketing and brand-building efforts,"
stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. "We
are pleased to announce these initiatives as we leverage our
existing distribution network to employ an aggressive marketing
program to build further brand awareness and drive incremental
sales and profitability. We are already experiencing positive
initial results and believe the newly implemented sales strategy
will further differentiate ourselves in this fragmented market and
enable us to become one of the leading Chinese fertilizer producers
within the next three to five years." About China Green
Agriculture, Inc. China Green Agriculture, Inc. produces and
distributes humic acid ("HA") based compound fertilizer through its
wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product
Co., Ltd., ("Jinong"). Jinong produces and sells over 130 different
kinds of fertilizer products per year. All of Jinong's fertilizer
products are certified by the PRC government as green food
production materials, as stated by the China Green Food Research
Center. Jinong'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). Jinong 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. 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%), Heilongjiang (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, the
impact of competitive products or pricing, changes in technology,
additional financing requirements, development of new products,
government approval processes, technological changes, 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.
CONTACT: In the US, China Green Agriculture, Inc., Ms. Ying Yang,
+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/
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