China Green Agriculture, Inc. Breaks Ground on New R&D Facility
October 29 2009 - 7:00AM
PR Newswire (US)
Company Receives Land-Use Right for R&D Expansion in Shaanxi
Province XI'AN, China, Oct. 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 compound fertilizer through its wholly owned
subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.,
today announced that it has broken ground on its new R&D
facility and has received a certificate of Land-Use Right for
approximately 88 acres of land granted by the People's Government
and Land & Resources Bureau of Hu County. This certificate was
issued by the PRC government on August 13, 2009 and delivered to
the Company on September 2, 2009. The land use certificate is valid
for 50 years, ending August 13, 2059. "We are pleased to have
achieved this milestone within such a brief period of time since
the closing of our public offering on July 24, 2009," stated Mr.
Tao Li, Chairman and CEO of China Green Agriculture. "As previously
announced, we intend to use a majority of the net proceeds from our
recent financing for our R&D expansion. We are confident that
we will achieve all key milestones in a timely fashion and
anticipate that the new R&D facility will be completed by the
second quarter of fiscal year 2011. China Green Agriculture
currently operates a 137,000 square meter R&D facility (with
six intelligent greenhouses over 39 acres), which can simulate
diverse natural environments and allows the platform to experiment
and test new product ideas. With majority of our field testing
activities taking place within the company's advanced greenhouse
facilities, the company is able to effectively manage production
and quality control aspects. Expansion of China Green Agriculture's
R&D facility is key to the company's market strategy of rapid
product development and increasing market share for its products.
In addition to the development of new products, R&D is directly
involved in generating profits, which helps to normalize earnings
and reduce seasonality. Many flowers and vegetables produced during
the experimentation and testing process are sold to high-end
supermarkets and airline companies, turning its R&D activities
into a profit center. During the last four quarters, agricultural
products contributed 17.9% and 13.6% in the total sales and gross
profit, respectively. In order to further strengthen its R&D
base to support the rapid capacity expansion, China Green
Agriculture recently announced plans to build 12 new greenhouses
over an area of about 88 acres. This is expected to increase the
company's ability to develop new products and could be used to
support its efforts from the existing fertilizer business into
cross-selling opportunities such as pesticides and herbicides.
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 at China Green
Agriculture, Inc., Ms. Ying Yang, Chief Financial Officer,
+1-626-623-2575, or , or at HC International, Inc., Ted Haberfield,
Executive VP, +1-760-755-2716, or ; or in China at 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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