XI'AN, China, Feb. 8 /PRNewswire-Asia-FirstCall/ -- -- Company
Exceeds Second Quarter FY2010 Revenue and Net Income Guidance -- Q2
FY2010 Sales Increase 60% to $11.2 Million, Net Income Increases
78% to $4.7 Million with EPS of $0.20 -- Q2 FY2010 Gross Margin
Increases to 61% from 59% Y-O-Y; Operating Margin Increases to 49%
from 45% Y-O-Y -- Company Increases Fiscal Year 2010 Guidance:
Revenue, Net Income and EPS of at least $48.9 Million, $20.3
Million, and $0.87, respectively -- Management to Host Earnings
Conference Call at 9:00 am ET China Green Agriculture, Inc. (NYSE:
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 second fiscal quarter ending December 31, 2009. Q2
FY2010 Results Q2 FY2010 Q2 FY2009 CHANGE (%) Net Sales $11.2
million $7.0 million +60 % Gross Profit $6.8 million $4.1 million
+65 % Net Income $4.7 million $2.7 million +78 % EPS (Basic and
Diluted) $0.20 $0.14 +41 % Weighted Shares Outstanding 23.3 million
18.4 million +27 % Six Months FY2010 Results Six Months Six Months
CHANGE (%) FY2010 FY2009 Net Sales $22.4 million $15.9 million +41
% Gross Profit $13.7 million $9.0 million +52 % Net Income $10.0
million $6.2 million +62 % EPS (Basic and Diluted) $0.44 $0.33 +33
% Weighted Shares Outstanding 22.5 million 18.4 million +22 %
Second Quarter FY2010 Results Net sales for the second quarter of
fiscal year 2010 totaled $11.2 million, up 60% from $7.0 million in
the same quarter of fiscal year 2009. Jinong, which is the division
that sells humic acid based compound fertilizers, accounted for
81.5% of our total net sales. The top three selling products
accounted for 21% of the fertilizer sales. For the second quarter
of fiscal year 2010, Jinong's net sales increased $4.2 million, or
84%, to $9.1 million from $4.9 million for the same quarter of
fiscal year 2009. This increase was primarily due to the increase
in production capacity and the sales from more high-end products
including our new highly-concentrated powdered fertilizer products.
Sales volume increased 771 tons, or 25% to 3,836 tons in the second
quarter of fiscal year 2010, versus 3,065 tons in the same period
of fiscal year 2009. Sales from our Jintai division, namely
top-grade fruits, vegetables, flowers and colored seedlings,
decreased 0.3% from a year ago and accounted for $2.1 million, or
18.5% of total net sales. Gross profit for the second quarter of
fiscal year 2010 totaled $6.8 million, an increase of 65% from $4.1
million in the same quarter of fiscal year 2009. Gross profit
margin was 61% for the second quarter of fiscal year 2010, up from
59% a year ago. Operating income for the second quarter of fiscal
year 2010 was $5.4 million, up 73% from $3.1 million in the second
quarter of fiscal year 2009. Operating margin was 49%, compared to
45% in the same quarter of fiscal year 2009. Net income for the
second quarter of fiscal year 2010 was $4.7 million, or $0.20 per
basic and fully diluted share, up 78% compared with net income of
$2.7 million, or $0.14 per basic and fully diluted share, during
the same period in fiscal year 2009. In the second quarter of 2010,
the weighted average shares outstanding were 23.3 million shares
(which includes shares issued in our public offering in
November/December 2009) versus 18.4 million shares in the year ago
period. "We are very pleased that our financial results have
exceeded both our revenue and net income guidance for the second
quarter of fiscal year 2010, which were driven by sales of more
high-end products, notably our highly-concentrated powdered
fertilizer products," stated Mr. Tao Li, Chairman, President and
Chief Executive Officer of China Green Agriculture. "We continue to
see margins expand mainly due to value added tax ("VAT") exemption.
Rising demand for our green fertilizer products coupled with our
growing nationwide distribution network should allow us to
experience robust revenue and earnings growth for the remainder of
the year as we build on being one of the leading organic compound
fertilizer producers in China." Six Months FY2010 Results For the
six months ending December 31, 2009, net sales increased 41% to
$22.4 million, up from $15.9 million for the six months ended
December 31, 2008. For the first six months in fiscal year 2010,
Jinong's net sales, which accounted for 86% of total net sales,
increased $6.7 million, or 53%, to $19.3 million from $12.6 million
for the six months ended December 31, 2008. Sales volume increased
9.6% to 8,151 tons for the six months ended December 31, 2009 from
7,435 tons for the six months ended December 31, 2008. This
increase was attributable to production capacity upgrades, the
introduction of 7 new products and the net addition of 10 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,
decreased $0.15 million or 4.5%, to $3.2 million for the six months
ended December 31, 2009 from $3.3 million for the same period in
2008. Gross profit increased 52% to $13.7 million in the first six
months of fiscal year 2010, versus $9.0 million in the same period
a year ago. Gross margin was 61% and 57% for the six months ended
December 31, 2009 and 2008, respectively. Operating income for the
first six months of fiscal year 2010 rose 56% to $11.6 million
compared to $7.4 million for the first six months of fiscal year
2009. Net income, was $10.0 million, or $0.44 per basic and fully
diluted share, based on 22.5 million weighted average shares. Net
income in the year ago period was $6.2 million, or $0.33 per basic
and fully diluted share, based on 18.4 million weighted average
shares. Financial Condition As of December 31, 2009, the Company
had $61.2 million in cash and cash equivalents, an increase of
$43.4 million from June 30, 2009, primarily due to the net proceeds
from the public offerings. The Company maintained short-term loans
of $2.2 million and had no long-term debt as of December 31, 2009.
Net accounts receivable stood at $11.0 million as of December 31,
2009 with trailing twelve-month days sales outstanding ("DSO") of
67 compared to DSO of 86 three months ago. For the first six months
ended December 31, 2009, the Company had $6.0 million in cash flows
from operating activities, while capital expenditures amounted to
approximately $13.1 million primarily due to the purchase of land
use rights for the expansion of the new greenhouse facility.
Revised 2010 Guidance China Green Agriculture's second 2010 fiscal
quarter revenue of $11.2 million and net income of $4.7 million
exceeded the high end of its previously announced revenue and net
income guidance for the second 2010 fiscal quarter of $10.4 million
to $11.0 million and $4.2 million to $4.6 million, respectively,
due to strong sales from its green fertilizer products. For the
third fiscal quarter ending March 31, 2010, management expects
revenues of $12.4 million to $13.0 million, net income of $5.1
million to $5.4 million, and EPS of $0.21 to $0.22 based on 24.3
million outstanding shares, respectively. For the fiscal year
ending June 30, 2010, management increased guidance and now expects
revenues of $48.9 million to $50.1 million, net income of $20.3
million to $20.9 million, and EPS of $0.87 to $0.89 based on 23.4
million weighted average shares, respectively. This guidance
reflects the anticipated strong sales resulting from our increased
production capacity as well as the expanded margins on high-end
fertilizer products. "Supported by our expanded production capacity
and state-of-the-art R&D facilities, we will continue to
capitalize on the market opportunities within China's highly
fragmented organic fertilizer industry," stated Mr. Li. "Our goal
is to continue to introduce new high margin products to the market
quickly with our marketing efforts focused on promoting the quality
image of the 'Jinong' brand through both distributors and retail
stores. With our annualized production utilization rate at 29.6%,
we feel our recent initiatives will provide sustainable growth
while expanding both gross and operating margins and give us the
capability to reach full utilization of our 55,000 metric ton
capacity over the next three years. We remain on schedule in
meeting our construction goals for our additional 12 new
greenhouses as we continue to gain market share in China's green
fertilizer industry," Mr. Li concluded. Conference Call The Company
will conduct a conference call at 9:00 a.m. ET on Monday, February
8, 2010. 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's Second Quarter Fiscal Year 2010
Financial Results" to join the call. Event: CGA Second Quarter
Fiscal Year 2010 Conference Call Date: February 8, 2010 Time: 9:00
a.m. ET US Dial In: 1-877-407-9210 Int'l Dial In: 1-201-689-8049
Conference ID#: 343803 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 February 25, 2010. 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 #: 343803. 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 140 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 liquid based 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 34.7% of the
Company's fertilizer revenue for the three months ended December
31, 2009 are Shaanxi (9.1%), Shandong (6.8%), Guangdong (6.7%),
Heilongjiang (6.2%) and Hebei (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: 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: Financial Tables as follows: CHINA GREEN
AGRICULTURE INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF
DECEMBER 31, 2009 AND JUNE 30, 2009 (UNAUDITED) ASSETS December 31,
June 30, 2009 2009 Current Assets Cash and cash equivalents
$61,183,492 $17,795,447 Restricted cash 36,897 83,579 Accounts
receivable, net 10,993,124 8,167,715 Inventories 9,906,700
7,162,249 Other assets 166,305 129,213 Deferred offering cost --
160,500 Advances to suppliers 238,277 95,255 Total Current Assets
82,524,795 33,593,958 Plant, Property and Equipment, Net 28,482,504
17,341,654 Construction In Progress 4,738 9,609,649 Intangible
Assets, Net 11,592,769 1,073,165 Total Assets $122,604,806
$61,618,426 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts payable $533,021 $926,883 Unearned revenue
165,732 24,000 Other payables and accrued expenses 1,599,455
1,091,168 Advances from other unrelated companies 301,605 326,970
Amount due to related parties 68,164 31,160 Taxes payable 3,288,349
2,887,828 Short term loans 2,197,512 3,170,290 Total Current
Liabilities 8,153,838 8,458,299 Common Stock, $.001 par value,
6,313,617 shares subject to redemption -- 20,519,255 Stockholders'
Equity Preferred Stock, $.001 par value, 20,000,000 shares
authorized, Zero shares issued and outstanding -- -- Common stock,
$.001 par value, 115,197,165 shares authorized, 24,283,989 shares
issued and outstanding (12,281,569 as of June 30, 2009) 24,284
12,282 Additional paid-in capital 73,883,634 2,060,162 Statuary
reserve 4,525,550 3,468,530 Retained earnings 33,554,015 24,642,768
Accumulated other comprehensive income 2,463,485 2,457,130 Total
Stockholders' Equity 114,450,968 32,640,872 Total Liabilities and
Stockholders' Equity $122,604,806 $61,618,426 The accompanying
notes are an integral part of these consolidated financial
statements. CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE
SIX MONTHS AND THREE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(UNAUDITED) Six Months Ended Three Months Ended December 31,
December 31, 2009 2008 2009 2008 Sales Jinong $19,289,446
$12,570,527 $9,110,797 $4,945,026 Jintai 3,159,490 3,309,601
2,061,319 2,055,100 Net sales $22,448,936 $15,880,128 $11,172,116
$7,000,126 Cost of goods sold Jinong 7,002,486 5,106,321 3,267,122
1,880,375 Jintai 1,717,718 1,725,877 1,135,221 1,020,930 Cost of
goods sold 8,720,204 6,832,199 4,402,343 2,901,306 Gross profit
13,728,732 9,047,929 6,769,773 4,098,820 Operating expenses Selling
expenses 735,767 582,537 520,096 366,161 General and administrative
expenses 1,348,730 1,023,774 814,551 586,645 Total operating
expenses 2,084,497 1,606,311 1,334,647 952,806 Income from
operations 11,644,235 7,441,618 5,435,126 3,146,014 Other income
(expense) Other income (expense) 553 4,275 (413) -- Interest income
81,922 143,019 52,656 2,624 Interest expense (105,644) (447,923)
(44,335) (127,059) Total other income (expense) (23,169) (301,679)
7,908 (125,485) Income before income taxes 11,621,066 7,139,939
5,443,034 3,020,529 Provision for income taxes 1,652,798 984,159
722,041 362,676 Net income 9,968,268 6,155,780 4,720,993 2,657,852
Other comprehensive income Foreign currency translation gain/(loss)
6,354 (8,321) 31,284 (2,142) Comprehensive income $9,974,622
$6,147,459 $4,752,277 $2,655,711 Basic weighted average shares
outstanding 22,450,562 18,381,702 23,266,097 18,381,702 Basic net
earnings per share $0.44 $0.33 $0.20 $0.14 Diluted weighted average
shares outstanding 22,471,118 18,381,702 23,286,653 18,381,702
Diluted net earnings per share 0.44 0.33 0.20 0.14 The accompanying
notes are an integral part of these consolidated financial
statements. CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2009
AND 2008 (UNAUDITED) 2009 2008 Cash flows from operating activities
Net income $9,968,268 $6,155,780 Adjustments to reconcile net
income to net cash provided by operating activities Issuance of
stock options for compensation -- 68,690 Depreciation 986,663
737,464 Amortization 150,318 53,494 Decrease / (Increase) in
current assets Accounts receivable (2,797,999) (950,555) Other
receivables (321) 32,262 Inventories (2,719,957) (3,306,067)
Advances to suppliers (142,513) (72,015) Other assets (35,952)
9,508 (Decrease) / Increase in current liabilities Accounts payable
(395,573) (26,200) Unearned revenue 141,422 253,800 Tax payables
391,854 (2,485,151) Other payables and accrued expenses 436,338
243,560 Net cash provided by operating activities 5,982,548 714,571
Cash flows from investing activities Acquisition of plant,
property, and equipment (2,440,748) (460,797) Acquisition of
intangible assets (10,703,302) -- Additions to construction in
progress (4,730) (1,464,432) Net cash used in investing activities
(13,148,780) (1,925,229) Cash flows from financing activities
Repayment of loan (979,876) (379,384) Proceeds issuance of shares
51,373,234 -- Restricted cash 46,683 58,914 Net cash provided by /
(used in) financing activities 50,440,041 (320,470) Effect of
exchange rate change on cash and cash equivalents 114,236 (2,024)
Net increase in cash and cash equivalents 43,388,045 (1,533,151)
Cash and cash equivalents, beginning balance 17,795,447 16,612,416
Cash and cash equivalents, ending balance $61,183,492 $15,079,265
Supplement disclosure of cash flow information Interest expense
paid $(88,936) $242,459 Income taxes paid $-- $621,367 The
accompanying notes are an integral part of these consolidated
financial statements. DATASOURCE: China Green Agriculture, Inc.
CONTACT: in the US, Ms. Ying Yang, Chief Financial Officer of China
Green Agriculture, Inc., +1-626-623-2575, ; or Ted Haberfield,
Executive VP of HC International, Inc., +1-760-755-2716, ; or in
China, Mr. Jonnie Wang, Secretary of Board, Investor Relations
Officer of China Green Agriculture, Inc., +86-29-8826-6368, Web
site: http://www.cgagri.com/ http://www.investorcalendar.com/
http://www.ir-site.com/cgagri/events.asp
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