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 China Green Agric (NYSE:CGA)

Monday, December 15, 2014
Comments & Business Outlook

XI'AN, China, Dec. 15, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "CGA" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced that the Company will hold its national distributor conference in Xi'an from December 15, 2014 for three consecutive days (the "Conference"), in response to the proposed incentive program for fertilizer sales announced during the "Investor Day Event" held by the Company on October 17, 2014. (For more information, please refer to http://www.prnewswire.com/news-releases/china-green-agriculture-hosted-its-investor-day-event-in-beijing-279563012.html). During the Conference, the Company will announce the detailed incentive policies, in order to stimulate distributors' sales performance.

Approximately 80 distributor representatives of Jinong and Gufeng, the Company's wholly-owned subsidiaries, and 40 management members and staff of the Company are expected to attend the Conference. During the 3-day event, participants will share fertilizer applying technique, exchange experiences in growing plants, and discuss future cooperation with distributor representatives.

"We are pleased to see our distributors being enthusiastic about the incentive program. We will consecutively reward the competent sales force," stated Mr. Tao Li, Chairman and CEO of the Company, "It is the moment to recognize the contributions made by those hard-working distributors to our business. I have confidence that the Conference will bring positive impact to our sales in the long-term."


Tuesday, December 2, 2014
Joint Venture

XI'AN, China, Dec 2, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, i.e.: Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong"), Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng") and a variable interest entity, Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd. ("Yuxing") announced that one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Gufeng entered into a strategic cooperation agreement with Sino-agri Mining Resource Exploration Co., Ltd., ("Sino-agri"), a key subsidiary of China National Agricultural Means of Production Group Corporation ("Sino-agri Group"). This agreement is second to the cooperation agreement between Jinong and Sino-agri Group, that the Company had disclosed previously in October 2014.

Sino-agri Group is a nationwide large-scale enterprise group that integrates production, circulation and service as well as specializes in the agricultural means of production, such as chemical fertilizer, pesticides, agricultural film, seeds, agricultural machinery & implements, etc. It is an enterprise at the level of the All China Federation of Supply and Marketing Cooperatives and an exclusively-invested enterprise of China CO-OP Group ( http://www.chinacoop.coop/English/About%20China%20co-ops ), having the total assets of RMB30 billion, sales revenue of more than RMB72 billion, and the sales volume of more than 25 million tons for the agricultural materials of chemical fertilizer, etc. (For more information, please refer to  http://english.sino-agri.com/show.php?id=10 ).

The objective of this strategic cooperation agreement is for Sino-argi and Gufeng to work together with sales goals in three years. Specifically, the agreement targets Sino-agri to sell 150,000 metric tons of compound fertilizers produced by Gufeng ("Gufeng Fertilizers") during calendar year 2015, 300,000-metric-ton Gufeng Fertilizers during 2016,  and 500,000-metric-ton Gufeng Fertilizers in 2017 to promote Gufeng's flagship products.

To accomplish the sales goals of the agreement, Sino-agri and Gufeng are committed to strengthen the production and marketing of Gufeng Fertilizers comprehensively. Specifically, Gufeng will team up with Sino-agri to secure raw materials supplies by leveraging Sino-agri's global access to related raw materials. With that, Gufeng will deliver Sino-agri customized Gufeng Fertilizers upon the orders from Sino-agri's heterogeneous customers by leveraging Gufeng's flexible  development and production process. In the next three-year period, Gufeng will be able to tap  needed financial credit facilities from Sino-agri to fill the Sino-agri orders. In addition to Gufeng Fertilizers, Gufeng is committed to offer product support for Sino-agri's clients. The support includes, but not limit to, soil testing, fertilizer comparison and testing, as well as fertilizer solutions. In parallel, Sino-agri will give priority to purchase Gufeng Fertilizer to replenish its compound fertilizer inventory.

"The agreement between Gufeng and Sino-agri is a booster for Gufeng to promote its sales in the next three years, " said Mr. Tao Li, Chairman and CEO of the Company, "Sino-agri is the leading agricultural conglomerate in China. I believe our partnership with Sino-agri will be exceptional. I vision this agreement as a win-win showcase between us and a large state-owned enterprise in China."


Thursday, November 13, 2014
Notable Share Transactions

XI'AN, China, Nov. 13, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today updates that certain employees had made investments to the Company through the Company's Employee Stock Purchase Plan (the "ESPP").

Forty-seven Company's employees had submitted their enrollment forms for the subscription of a total of 464,776 shares of Common Stock from the Company for this round of subscription under the ESPP. These employees made a total cash contribution to the Company at an aggregated amount of $1,045,757. The Company's Compensation Committee, the administrator of the ESPP designated by the Company's Board of Directors, authorized the share issuance at the market value at $2.25 per share, the closing price on October 16, 2014.

As of today, together with previous investments made by Mr. Tao Li, Chairman and CEO of the Company and other employees, the Company's employees had invested an aggregated amount of $4.9 million personal wealth to the Company.

"I am delighted to see my team are investing with me," Mr. Tao Li, Chairman and CEO of the Company, said, "Not only just our careers, we are also pledging our own wealth in our own Company. We had not ever been more closely bounded to our shareholders in history than today."


Monday, November 10, 2014
Comments & Business Outlook

First Quarter 2015 Financial Results

  • First Quarter of FY 2015 net sales increased 2.0% to $51.3 million; net income decreased 22.0% to $8.1 million with EPS of $0.25. The revenues met the previously disclosed guidance of between $50.7 million and $54.3 million,
  • Net income beat the previously disclosed guidance of between $5.9 and $7.8 million by 0.3 million, and EPS beat the previously disclosed guidance of between$0.18 and $0.24 by $0.01 per share.

"We are very pleased with our performance of business operation, generating $8.1 million net income in the first quarter endedSeptember 30, 2014," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking ahead to the second quarter of fiscal year 2015, we expect net sales of between $49 million and $53 million, net income of between $3 million and$6 million, and EPS of between $0.07 to $ 0.17 based on 35.2 million fully diluted weighted average shares outstanding for the second quarter ended December 31, 2014. We are confident in achieving our target for the second quarter of fiscal year 2015."


Monday, October 27, 2014
Joint Venture

XI'AN, China, Oct. 27, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced that one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong"), entered into a strategic cooperation agreement with China National Agricultural Means of Production Group Corporation ("Sino-agri Group", or "Sino-agri") to promote the sales of the Jinong's fertilizer products.

Sino-agri Group is a nationwide large-scale enterprise group that integrates production, circulation and service as well as specializes in the agricultural means of production, such as chemical fertilizer, pesticides, agricultural film, seeds, agricultural machinery & implements, etc. It is an enterprise at the level of the All China Federation of Supply and Marketing Cooperatives and an exclusively-invested enterprise of China CO-OP Group (http://www.chinacoop.coop/English/About%20China%20co-ops/), having the total assets of RMB30 billion, sales revenue of more than RMB72 billion, and the sales volume of more than 25 million tons for the agricultural materials of chemical fertilizer, etc (The introduction of Sino-agri Group is available at http://english.sino-agri.com/show.php?id=10).

The goal of this strategic cooperation agreement is to require both parties to achieve the following sales goals in the next three years: Sino-agri Group sells 10,000 metric tons high-concentrated fertilizer produced by Jinong in the calendar year of 2015; 20,000 metric tons in 2016 and 50,000 metric tons in 2017.

To achieve the sales goal, Sino-agri and Jinong will conduct cooperation in various aspects, including but not limited to, Sino-agri and Jinong will share certain exclusive business information, execute joint procurement projects, and launch collaborative marketing service to facilitate fertilizer production and sales.

The mission under the agreement is to establish a long-term strategic partnership that is mutually beneficial to both parties. To take advantage of Sino-agri Group's state-owned advantage in fertilizer distribution both domestic and overseas, Jinong will work with Sino-agri Group to improve Jinong's supply chain management in the procurement of raw material, and the sale of concentrated fertilizer products. Specifically, Sino-agri Group will provide quality raw materials and favorite lead time to Jinong. In return, Jinong will deliver to Sino-agri quality concentrated fertilizer with priority at fair market price. In addition, Sino-agri Group will offer large support of working capital and investment to Jinong if Jinong needs liquidity and capital investment to expand production. In the mean time, Jinong concentrates on differentiating the market demand for Sino-agri and will customize corresponding product development and  production process respectively.

Mr. Tao Li, Chairman and CEO of the Company, commented, "We are very excited for having entered this partnership with Sino-agri. With our big brother, Sino-agri, we will showcase to the public an unprecedented collaboration between the large-sale state-owned enterprise and the small-cap company in the agriculture industry. Under the framework of this agreement, I foresee that we will be leveraged by our big brother, Sino-agri's large scale of operation and ample liquidity; and Sino-agri, our big brother, will also benefit from his little brother, Jinong's spirit of entrepreneurship back to back."


Friday, October 17, 2014
Company Rebuttal

XI'AN, China, Oct. 17, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provided a shareholder letter from Mr. Tao Li, the Company's Chairman of the Board of Directors and Chief Executive Officer. The full text of this shareholder letter is as follows:

Dear Shareholders:

Certain short sellers published an article on October 1, 2014, that falsely alleged us of misrepresenting results of our operations and our sales. We have carefully analyzed that article and found it contains numerous factual misstatements. The article was a malicious attack to our Company's operations and business model with largely distorted and inaccurate information. Certain presentations in the article were obtained by the short sellers via criminal means, such as corporate espionage and sabotage. The law enforcement in China had already taken the case and is currently prosecuting against this espionage crime.

Our Company operates with high ethical and quality standards while our management constantly reviews our business practices and products. We also hire independent, outside experts to ensure our operations are in full compliance with laws and regulations.

The allegations against us are frivolous. On October 1, we have updated progresses on our development of new business model in a press release, in keeping with our policy of communicating with our shareholders, we hereby provide rebuttal to the shorts' article.

To begin with, an extraordinary number of puts on our stock are due to expire this month while the short sellers had shorted our stock for the past 10 to 12 months. We learned that this activity was pegged to some kind of "significant event."

We all know that October 1 is the National Day in China followed by a seven-day-long holidays week. On October 1, 2014, we announced a dividend payment to our shareholders with the record date set on October 31, 2014.  Ovezealous short sellers abruptly published their article post to our dividend announcement.  Such action reveals their desperate attempt to illegally manipulate the market before their puts expire.

We subsequently refuted the allegations on October 2 during the holidays. After that, we also announced investor days on October 7 and hosted the two-day-investor-days event in Xi'an and Beijing on October 15 and 17, respectively. On October 16, short sellers alleged the Company with false presentation again. Apparently, shorts made another desperate move intended to damage the Company again before their put options expire on October 18.

We have been in the agriculture business for over 14 years. We have numerous customers worldwide. We have one of the finest fertilizer product lines in China and are currently engaged in an exciting new business model at the Internet era. I am incredibly proud of our Company. I condemn the short sellers' scheme as the capital market terrorism. Just like our governments, I don't and will never negotiate with terrorists.

The shorts said they did 344 days of time-lapse surveillance of the Company's fertilizer factory, which showed we only shipped around 10 percent of the sales volume reported. They also said they did 51 days of time-lapse surveillance of Gufeng factory and found 24 percent to 34 percent less volume shipped compared to sales volume reported. This is untrue.

Not only being untrue (which will be explained below), unauthorized video surveillance over a corporation is illegal serious crime espionage in China where the Company's operations are based. The surveillance, over time, was part of the short sellers' deliberate and destructive scheme aimed at weakening the Company's performance in the capital market. By publishing fraudulent allegations on the Internet, the short sellers had spread misleading presentations via illegal surveillance. The short sellers' business model is to disrupt the public with misleading information, sabotage the Company during the holidays, profit from the drops of the Company's share price, and destroy the Company with unprecedented tactics. The short sellers, who had engaged in corporate espionage, are saboteurs. They concealed their identities because they are afraid of the consequence of their malicious actions. The law enforcement in China does not take the espionage crime lightly. The city's police department in Xi'an had already taken up the case. The anti-business-crime task force in the police department is currently pursuing this as espionage, and will actively prosecute the liable saboteurs.

To fulfill the shipping requirement in the production process, we used various means of transportation such as vehicles, railroad trains, air cargo carriers, third parties, and pipelines to move raw materials, inventories, finished goods, as well as supply of parts and logistics from one location to another. Our sales of products were shipped, recorded, collected, summarized, concluded, reported, and evidenced in complete set of records, documents, invoices, receipts, payments, statements, and papers. We use a network of distributors to sell products. Our distributors are well capable of making the best of our products as well as their benefits via various shipping methods. The video clips recorded by the illegal surveillance do not contain the complete sales. If the video clips from illegal surveillance over one location had been sufficient to examine a Company's sales, video surveillance would have been adopted as an efficient and sufficient procedure in the accounting and auditing standard. There is no way that the video clips can be relied upon to measure a Company's revenue. We also do not consider the clips are genuine. These clips are currently in the evidence room under forensic analysis, and will be for the law enforcement's use to prosecute the saboteurs in the espionage case.

As a Nevada corporation with operating subsidiaries in China, we are obliged to timely report our financial results including revenues and earnings to the regulators and tax authorities in both China and U.S. Our financial reports, tax payments and filings, as well as other registration statements, are subject to all means of comprehensive examinations and audits from various entities in both China and U.S., including but not limited to, auditors, state administration of industries and commerce, tax agencies, and credit lenders. We had paid all taxes including income taxes and always fulfilled our reporting duties in both countries. We firmly stand by the consistent information contained in all our filings in both China and U.S. and we are fully committed to the reliability and transparency of financial reporting.

It had been a widely-known and well-documented fact that reports filed with certain authorities in China do not reflect the comprehensive income and financial condition for many companies, and might be different from reports to the authorities in U.S. The difference in reporting occurs particularly on small or middle size companies, who choose not to reveal all financial information in order to avoid disclosing their operating metrics to competitors, suppliers and customers. Albeit the different reporting schedules, procedures and practices in China and the U.S., we had managed to reconcile the historical difference between the reported results to the authorities inChina and U.S., i.e., any of our reported filings in both China and U.S. are accurate and consistent. We will continue to fully, consistently, and accurately report our sales and revenue figures to all authorities in both countries.

In the shorts' article, the shorts said they interviewed current and former employees, one of whom was an ex-manager and said that the Company's factory exaggerated production. Again, this is outrageous.

In the first so-called interview, the short sellers purported themselves as beverage salesmen. They solicited with disguises at the Company's premise at daylight time. By committing such unauthorized acts, the short sellers purposely disregarded of the Company's official visitor policy and trespassed on the Company's property. Their intentionally wrongful interference violated the Company's security codes. The disguised intrusion constituted another crime of corporate espionage. We believe the interview was a scheme of setup and the content was false. Law enforcement is currently pursuing this case. The prosecutors in China had detained the so-called interviewee related to the scheme and will hold the parties who were involved in the espionage liable and will prosecute the espionage crime with no leniency.

In the second interview, the short sellers claimed that they interviewed Chen Lianpeng, an alleged former warehouse director of the Company who started working for the Company since 2008. That is impertinent. Contrary to the short's claim, Mr. Chen was never a manager at the Company. Instead, he joined the Company as an entry-level employee in 2010. After having worked at the Company for 10 months, Mr. Chen was convicted of committing a series of professional misconducts in his non-managerial role. During the 10-month period, he had violated the Company's ethic codes badly numerous times. After reviewing his misdemeanors, the human resource division took disciplinary action and terminated Mr. Chen's employment in 2011. During his tenure at the Company, Mr. Chen had never acted in any managerial role and was never hired again by the Company. The discharge was the penalty to his misconducts. Law enforcement in China had detained Mr. Chen. We strongly condemn that the so-called "interviews" for them being both malevolent and manipulative. In addition to the centralized volume productions, we conduct pilot production and rapid production in locations closer to markets and clients with proprietary formulas, technologies, and oversights. The truthfulness of such an interview should never be relied upon.

On October 16, the shorts distorted the comments from the Company's employee, Ms Qi Hongli. Ms. Qi is a current member of the Company's design team and had been involved in some improvement projects during the Company's numerous campaigns for marketing infrastructure development. The number of outlets that one employee had been working on does not necessarily equal to the number of all the premises that the whole company had sponsored, supported, developed, owned, franchised, including but not limited to, franchise units, proprietary outlets, retail stores, chains, and retail stands etc. Relating only a subset of the entire outlet family, which one employee had been working on, as the population size of the whole sales outlets, is misleading.

The shorts alleged "the auditor, Kabani, signed off on $113 million of outrageous PP&E reclassifications and deferred marketing assets wiping out CGA's cash."

Our auditor performed extensive audit procedures on the Company's financial statements per the auditing standards, and they communicated with the Audit Committee with the procedures performed and the results found.

None of the auditors' audit reports on our financial statements for the past fiscal years regarding the effectiveness of internal control over financial reporting contained an adverse opinion or a disclaimer of opinion since 2012, nor was any such reports has ever been modified as to uncertainty, audit scope or accounting principles. In addition, at no point during the past fiscal years, were there any disagreements between our auditors on any matter of accounting principles or practices, financial statement disclosure, auditing scope or procedures, where disagreement(s), if not resolved to the satisfaction of our auditors, would result in "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, and cause an reporting obligation to make reference

The Company's audit committee and management believe that the Company's financial statements have always fairly presented, in all material aspects, the Company's financial condition and results of operations during the past fiscal years, the and that the Company's internal control over financial reporting always remains effective.

Regarding the deferred assets, it represents the amounts that the distributors owed to the Company in their marketing efforts, as well as the cost for developing the promotion equipment to be displayed at the distributors' stores, including product counters and shelves, and the signs of Jinong brand on the shop facades. Such cost is recorded as deferred asset which is reported on the balance sheet as a long-term asset. Such marketing and promotion costs are expensed as selling expense over three years as per the term as stated in the co-operation agreement. The process of systematically reducing this deferred asset is known as amortizing the marketing and promotion costs.

The shorts erroneously claimed that the PP&E reclassifications constitute a capex fraud that is serious enough to halt and delist the Company. Again, facts show that these laughable statements are deceitful.

I cannot help but laugh at how poor the shorts are in understanding basic accounting principles and how ignorant they were by making irresponsible and idiotic claims. Such poor claims illustrate the shorts know nothing about financial reporting. Instead of "professional analysts" they claimed to be, they are no more than bogus liars.

The Company had disclosed the deferred asset timely in quarterly and annual reports since the beginning fiscal year 2014. Deploying deferred assets had been an integral part of the Company's marketing strategy in five-to-ten-year time line. We had been implementing such marketing tactics as early as 2010. Historically, the cost of developing the promotion equipment was recorded as part of the Jinong's PP&E. In fiscal year 2014, we scaled up the deployment of such marketing asset to support marketing campaign. Based on the fact that such promotion equipment are displayed at the distributors' stores instead of utilized by the Company directly, we determined that it is more appropriate to reclassify such costs into deferred assets and present them separately on the balance sheet due to their nature and significance. We deployed $72MM, $31MM, and $9MM in 2014, 2013, and 2012 respectively, and got reported in cash flows from investing activities in the financial statement. It is typical in financial reporting for issuers to represent historical assets out of seasoned categories to newly added categories as a result of asset or liability reclassification to fairly compare the similar assets year over year.

While the short seller blamed us that "for fiscal year 2015, the Company estimates another $41,807,390 amortization expenses of deferred assets," "resulting in a huge negative impact on earnings," with accordance that growth of amortization is "far more than management's sales growth forecast," we never take sales expansion lightly -- the hefty investments in marketing endorsed our decisive commitments to our products and our clients. When we made investment decision in expanding the deferred assets, we aim at supporting our distributors in a period of five years or longer, and we are affirmative to help our distributors in promoting their sales by developing retail franchise stores. Such corporation action was intended to build our marketing infrastructure systematically countrywide.

As mentioned above, we amortize the deferred asset over a three-year use life. The amortization period is based on term of our co-operation agreement with the distributors involved in our marketing campaign and we timely disclosed an estimated $31MM and $10MM amortization expenses of the deferred assets for the fiscal year 2016 and 2017 in Row 9, paragraph "Deferred assets" on page F-8 of the Company's annual report of fiscal year 2014. We expect the marketing efforts will introduce improvement in sales over time concurrently with the decrease in amortization expenses in the next fiscal years.

The short sellers stated that "$26,890,321 at June 30, 2014" "subtracting $25,700,586 of customer deposits leaves the Company with only $1,189,735." This statement is simply incorrect as it does not include any consideration of other current assets such as account receivable with $88,781,608, advances to suppliers with $32,630,865, and inventory with $75,486,898 which are reported on the financial statement as of fiscal year 2014.,

The shorts alleged that they were blocked from obtaining information. That is also fictitious. We have consistently welcomed inquiries and visitors to our offices and transparently provided information about all relevant aspects of our production, management and sales through every possible channels. Any number of shareholders, analysts and potential investors can attest to that.

On October 1, we updated our progress in the business strategy development through press. In the press, we disclosed our Company's new corporate website (http://900cga.com), along with our peer strategy partner's website (http://900lh.com) for the first time. We provided the addresses of our websites for reference purpose regarding the new business strategies. Since the release, in less an hour, these corporate websites got hacked severely by concentrated attacks from the U.S. The cyber attackers had tried to paralyze our websites with numerous attempts since then up till today. While currently under beta testing on full scale, our websites will become live and fully operational after the conclusion of the tests.

The foregoing are the main issues raised in the article, but there are other factual errors littered throughout it. Whether from a lack of accounting knowledge, a poor understanding of Chinese business practices, or an intent to mislead, the author makes countless errors, distorting information which has been readily available in public filings or press releases.

In the new fiscal year, we will focus on building comprehensive framework of offline, online and online-to-offline business strategies to better transform our business model in the new competition landscape of agriculture industry. I will lead my team to enrich the Company with more businesses, deliver better earnings so as to greatly reward our shareholders. As usual, I encourage all parties that are genuinely interested in obtaining a better understanding of the Company's business model, financial performance, and the agriculture industry, to visit the Company and meet our management team.

I hope you find this letter helpful. We remain open to any questions you may have, and are happy to hear from you at any time. We would like to thank you for your continued interests in and supports for our Company. Please be assured that we are working very hard to maximize shareholder value.

Sincerely,
Tao Li
Chairman, President and Chief Executive Officer
China Green Agriculture, Inc.


Shareholder Letters

XI'AN, China, Oct. 17, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provided a shareholder letter from Mr. Tao Li, the Company's Chairman of the Board of Directors and Chief Executive Officer. The full text of this shareholder letter is as follows:

Dear Shareholders:

Certain short sellers published an article on October 1, 2014, that falsely alleged us of misrepresenting results of our operations and our sales. We have carefully analyzed that article and found it contains numerous factual misstatements. The article was a malicious attack to our Company's operations and business model with largely distorted and inaccurate information. Certain presentations in the article were obtained by the short sellers via criminal means, such as corporate espionage and sabotage. The law enforcement in China had already taken the case and is currently prosecuting against this espionage crime.

Our Company operates with high ethical and quality standards while our management constantly reviews our business practices and products. We also hire independent, outside experts to ensure our operations are in full compliance with laws and regulations.

The allegations against us are frivolous. On October 1, we have updated progresses on our development of new business model in a press release, in keeping with our policy of communicating with our shareholders, we hereby provide rebuttal to the shorts' article.

To begin with, an extraordinary number of puts on our stock are due to expire this month while the short sellers had shorted our stock for the past 10 to 12 months. We learned that this activity was pegged to some kind of "significant event."

We all know that October 1 is the National Day in China followed by a seven-day-long holidays week. On October 1, 2014, we announced a dividend payment to our shareholders with the record date set on October 31, 2014.  Ovezealous short sellers abruptly published their article post to our dividend announcement.  Such action reveals their desperate attempt to illegally manipulate the market before their puts expire.

We subsequently refuted the allegations on October 2 during the holidays. After that, we also announced investor days on October 7 and hosted the two-day-investor-days event in Xi'an and Beijing on October 15 and 17, respectively. On October 16, short sellers alleged the Company with false presentation again. Apparently, shorts made another desperate move intended to damage the Company again before their put options expire on October 18.

We have been in the agriculture business for over 14 years. We have numerous customers worldwide. We have one of the finest fertilizer product lines in China and are currently engaged in an exciting new business model at the Internet era. I am incredibly proud of our Company. I condemn the short sellers' scheme as the capital market terrorism. Just like our governments, I don't and will never negotiate with terrorists.

The shorts said they did 344 days of time-lapse surveillance of the Company's fertilizer factory, which showed we only shipped around 10 percent of the sales volume reported. They also said they did 51 days of time-lapse surveillance of Gufeng factory and found 24 percent to 34 percent less volume shipped compared to sales volume reported. This is untrue.

Not only being untrue (which will be explained below), unauthorized video surveillance over a corporation is illegal serious crime espionage in China where the Company's operations are based. The surveillance, over time, was part of the short sellers' deliberate and destructive scheme aimed at weakening the Company's performance in the capital market. By publishing fraudulent allegations on the Internet, the short sellers had spread misleading presentations via illegal surveillance. The short sellers' business model is to disrupt the public with misleading information, sabotage the Company during the holidays, profit from the drops of the Company's share price, and destroy the Company with unprecedented tactics. The short sellers, who had engaged in corporate espionage, are saboteurs. They concealed their identities because they are afraid of the consequence of their malicious actions. The law enforcement in China does not take the espionage crime lightly. The city's police department in Xi'an had already taken up the case. The anti-business-crime task force in the police department is currently pursuing this as espionage, and will actively prosecute the liable saboteurs.

To fulfill the shipping requirement in the production process, we used various means of transportation such as vehicles, railroad trains, air cargo carriers, third parties, and pipelines to move raw materials, inventories, finished goods, as well as supply of parts and logistics from one location to another. Our sales of products were shipped, recorded, collected, summarized, concluded, reported, and evidenced in complete set of records, documents, invoices, receipts, payments, statements, and papers. We use a network of distributors to sell products. Our distributors are well capable of making the best of our products as well as their benefits via various shipping methods. The video clips recorded by the illegal surveillance do not contain the complete sales. If the video clips from illegal surveillance over one location had been sufficient to examine a Company's sales, video surveillance would have been adopted as an efficient and sufficient procedure in the accounting and auditing standard. There is no way that the video clips can be relied upon to measure a Company's revenue. We also do not consider the clips are genuine. These clips are currently in the evidence room under forensic analysis, and will be for the law enforcement's use to prosecute the saboteurs in the espionage case.

As a Nevada corporation with operating subsidiaries in China, we are obliged to timely report our financial results including revenues and earnings to the regulators and tax authorities in both China and U.S. Our financial reports, tax payments and filings, as well as other registration statements, are subject to all means of comprehensive examinations and audits from various entities in both China and U.S., including but not limited to, auditors, state administration of industries and commerce, tax agencies, and credit lenders. We had paid all taxes including income taxes and always fulfilled our reporting duties in both countries. We firmly stand by the consistent information contained in all our filings in both China and U.S. and we are fully committed to the reliability and transparency of financial reporting.

It had been a widely-known and well-documented fact that reports filed with certain authorities in China do not reflect the comprehensive income and financial condition for many companies, and might be different from reports to the authorities in U.S. The difference in reporting occurs particularly on small or middle size companies, who choose not to reveal all financial information in order to avoid disclosing their operating metrics to competitors, suppliers and customers. Albeit the different reporting schedules, procedures and practices in China and the U.S., we had managed to reconcile the historical difference between the reported results to the authorities in China and U.S., i.e., any of our reported filings in both China and U.S. are accurate and consistent. We will continue to fully, consistently, and accurately report our sales and revenue figures to all authorities in both countries.

In the shorts' article, the shorts said they interviewed current and former employees, one of whom was an ex-manager and said that the Company's factory exaggerated production. Again, this is outrageous.

In the first so-called interview, the short sellers purported themselves as beverage salesmen. They solicited with disguises at the Company's premise at daylight time. By committing such unauthorized acts, the short sellers purposely disregarded of the Company's official visitor policy and trespassed on the Company's property. Their intentionally wrongful interference violated the Company's security codes. The disguised intrusion constituted another crime of corporate espionage. We believe the interview was a scheme of setup and the content was false. Law enforcement is currently pursuing this case. The prosecutors in China had detained the so-called interviewee related to the scheme and will hold the parties who were involved in the espionage liable and will prosecute the espionage crime with no leniency.

In the second interview, the short sellers claimed that they interviewed Chen Lianpeng, an alleged former warehouse director of the Company who started working for the Company since 2008. That is impertinent. Contrary to the short's claim, Mr. Chen was never a manager at the Company. Instead, he joined the Company as an entry-level employee in 2010. After having worked at the Company for 10 months, Mr. Chen was convicted of committing a series of professional misconducts in his non-managerial role. During the 10-month period, he had violated the Company's ethic codes badly numerous times. After reviewing his misdemeanors, the human resource division took disciplinary action and terminated Mr. Chen's employment in 2011. During his tenure at the Company, Mr. Chen had never acted in any managerial role and was never hired again by the Company. The discharge was the penalty to his misconducts. Law enforcement in China had detained Mr. Chen. We strongly condemn that the so-called "interviews" for them being both malevolent and manipulative. In addition to the centralized volume productions, we conduct pilot production and rapid production in locations closer to markets and clients with proprietary formulas, technologies, and oversights. The truthfulness of such an interview should never be relied upon.

On October 16, the shorts distorted the comments from the Company's employee, Ms Qi Hongli. Ms. Qi is a current member of the Company's design team and had been involved in some improvement projects during the Company's numerous campaigns for marketing infrastructure development. The number of outlets that one employee had been working on does not necessarily equal to the number of all the premises that the whole company had sponsored, supported, developed, owned, franchised, including but not limited to, franchise units, proprietary outlets, retail stores, chains, and retail stands etc. Relating only a subset of the entire outlet family, which one employee had been working on, as the population size of the whole sales outlets, is misleading.

The shorts alleged "the auditor, Kabani, signed off on $113 million of outrageous PP&E reclassifications and deferred marketing assets wiping out CGA's cash."

Our auditor performed extensive audit procedures on the Company's financial statements per the auditing standards, and they communicated with the Audit Committee with the procedures performed and the results found.

None of the auditors' audit reports on our financial statements for the past fiscal years regarding the effectiveness of internal control over financial reporting contained an adverse opinion or a disclaimer of opinion since 2012, nor was any such reports has ever been modified as to uncertainty, audit scope or accounting principles. In addition, at no point during the past fiscal years, were there any disagreements between our auditors on any matter of accounting principles or practices, financial statement disclosure, auditing scope or procedures, where disagreement(s), if not resolved to the satisfaction of our auditors, would result in "reportable events" as such term is defined in Item 304(a)(1)(v) of Regulation S-K, and cause an reporting obligation to make reference

The Company's audit committee and management believe that the Company's financial statements have always fairly presented, in all material aspects, the Company's financial condition and results of operations during the past fiscal years, the and that the Company's internal control over financial reporting always remains effective.

Regarding the deferred assets, it represents the amounts that the distributors owed to the Company in their marketing efforts, as well as the cost for developing the promotion equipment to be displayed at the distributors' stores, including product counters and shelves, and the signs of Jinong brand on the shop facades. Such cost is recorded as deferred asset which is reported on the balance sheet as a long-term asset. Such marketing and promotion costs are expensed as selling expense over three years as per the term as stated in the co-operation agreement. The process of systematically reducing this deferred asset is known as amortizing the marketing and promotion costs.

The shorts erroneously claimed that the PP&E reclassifications constitute a capex fraud that is serious enough to halt and delist the Company. Again, facts show that these laughable statements are deceitful.

I cannot help but laugh at how poor the shorts are in understanding basic accounting principles and how ignorant they were by making irresponsible and idiotic claims. Such poor claims illustrate the shorts know nothing about financial reporting. Instead of "professional analysts" they claimed to be, they are no more than bogus liars.

The Company had disclosed the deferred asset timely in quarterly and annual reports since the beginning fiscal year 2014. Deploying deferred assets had been an integral part of the Company's marketing strategy in five-to-ten-year time line. We had been implementing such marketing tactics as early as 2010. Historically, the cost of developing the promotion equipment was recorded as part of the Jinong's PP&E. In fiscal year 2014, we scaled up the deployment of such marketing asset to support marketing campaign. Based on the fact that such promotion equipment are displayed at the distributors' stores instead of utilized by the Company directly, we determined that it is more appropriate to reclassify such costs into deferred assets and present them separately on the balance sheet due to their nature and significance. We deployed $72MM, $31MM, and $9MM in 2014, 2013, and 2012 respectively, and got reported in cash flows from investing activities in the financial statement. It is typical in financial reporting for issuers to represent historical assets out of seasoned categories to newly added categories as a result of asset or liability reclassification to fairly compare the similar assets year over year.

While the short seller blamed us that "for fiscal year 2015, the Company estimates another $41,807,390 amortization expenses of deferred assets," "resulting in a huge negative impact on earnings," with accordance that growth of amortization is "far more than management's sales growth forecast," we never take sales expansion lightly -- the hefty investments in marketing endorsed our decisive commitments to our products and our clients. When we made investment decision in expanding the deferred assets, we aim at supporting our distributors in a period of five years or longer, and we are affirmative to help our distributors in promoting their sales by developing retail franchise stores. Such corporation action was intended to build our marketing infrastructure systematically countrywide.

As mentioned above, we amortize the deferred asset over a three-year use life. The amortization period is based on term of our co-operation agreement with the distributors involved in our marketing campaign and we timely disclosed an estimated $31MM and $10MM amortization expenses of the deferred assets for the fiscal year 2016 and 2017 in Row 9, paragraph "Deferred assets" on page F-8 of the Company's annual report of fiscal year 2014. We expect the marketing efforts will introduce improvement in sales over time concurrently with the decrease in amortization expenses in the next fiscal years.

The short sellers stated that "$26,890,321 at June 30, 2014" "subtracting $25,700,586 of customer deposits leaves the Company with only $1,189,735." This statement is simply incorrect as it does not include any consideration of other current assets such as account receivable with $88,781,608, advances to suppliers with $32,630,865, and inventory with $75,486,898 which are reported on the financial statement as of fiscal year 2014.,

The shorts alleged that they were blocked from obtaining information. That is also fictitious. We have consistently welcomed inquiries and visitors to our offices and transparently provided information about all relevant aspects of our production, management and sales through every possible channels. Any number of shareholders, analysts and potential investors can attest to that.

On October 1, we updated our progress in the business strategy development through press. In the press, we disclosed our Company's new corporate website (http://900cga.com), along with our peer strategy partner's website (http://900lh.com) for the first time. We provided the addresses of our websites for reference purpose regarding the new business strategies. Since the release, in less an hour, these corporate websites got hacked severely by concentrated attacks from the U.S. The cyber attackers had tried to paralyze our websites with numerous attempts since then up till today. While currently under beta testing on full scale, our websites will become live and fully operational after the conclusion of the tests.

The foregoing are the main issues raised in the article, but there are other factual errors littered throughout it. Whether from a lack of accounting knowledge, a poor understanding of Chinese business practices, or an intent to mislead, the author makes countless errors, distorting information which has been readily available in public filings or press releases.

In the new fiscal year, we will focus on building comprehensive framework of offline, online and online-to-offline business strategies to better transform our business model in the new competition landscape of agriculture industry. I will lead my team to enrich the Company with more businesses, deliver better earnings so as to greatly reward our shareholders. As usual, I encourage all parties that are genuinely interested in obtaining a better understanding of the Company's business model, financial performance, and the agriculture industry, to visit the Company and meet our management team.

I hope you find this letter helpful. We remain open to any questions you may have, and are happy to hear from you at any time. We would like to thank you for your continued interests in and supports for our Company. Please be assured that we are working very hard to maximize shareholder value.

Sincerely,
Tao Li
Chairman, President and Chief Executive Officer
China Green Agriculture, Inc.


Thursday, October 2, 2014
Company Rebuttal

XI'AN, China, Oct. 2, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced a private placement in the Company's common stock.

The Company's Board of Directors approved a private placement investment in the Company's common stocks from Mr. Tao Li, chairman and CEO of the Company on October 1, 2014. In the transaction,  the Company offers, sells and issues 496,445 shares (the "Shares") of its common stock, par value $0.001 per share (the "Common Stock"), in a private placement to Mr. Tao Li, at a purchase price of $2.25 per share, the closing price of the Common Stock on October 1, 2014, for an aggregate purchase price of $1,117,000pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board.

Together with accumulative subscriptions during the past two years, Mr. Tao Li had purchased a total of 829,896 shares of the Common Stock from the Company with an over $2 million investment of his personal wealth accumulatively since 2012.

The Company also rejects allegations raised in a recent known short seller's article. The Company believes the short seller's article contains numerous errors of fact, and is riddled with misleading speculations.

The Company is engaged in open and transparent communications with investors, security analysts and the public via dialogs of press releases, conference calls, investment conferences, company tours, investor days, and shareholder letters on a regular basis.  

Over the past few years, the Company had been subject to accusations made by short sellers, whose stands were to profit from the drop in the Company's share price. The Company had rebutted all the short sellers' accusations historically and will refute this time in detail via subsequent press releases and shareholder letters as it did before.

The Company intends to take necessary legal measures against any intentionally misleading and false allegations, and deliberate attempts to manipulate its stock prices, in order to protect the interests of the stockholders.

Mr. Tao Li, Chairman and CEO of the Company, said, "We firmly stand by all the consistent information contained in our filings in bothChina and U.S. We are fully committed to the reliability and transparency of our reporting."

Mr. Li continued, "In the new fiscal year, we are focused, on building our comprehensive framework of offline, online, and online-to-offline business strategies, to transform our business model in the new competition landscape of agriculture industry," Mr. Li concluded, "I will lead my team, to grow the Company with more business, and deliver better earnings to afford the Company to better reward our shareholders. I welcome all parties that are genuinely interested in gaining a better understanding of the Company's business model, financial performance, and the agriculture industry, to visit the Company and meet the management."


Notable Share Transactions

XI'AN, China, Oct. 2, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced a private placement in the Company's common stock.

The Company's Board of Directors approved a private placement investment in the Company's common stocks from Mr. Tao Li, chairman and CEO of the Company on October 1, 2014. In the transaction,  the Company offers, sells and issues 496,445 shares (the "Shares") of its common stock, par value $0.001 per share (the "Common Stock"), in a private placement to Mr. Tao Li, at a purchase price of $2.25 per share, the closing price of the Common Stock on October 1, 2014, for an aggregate purchase price of $1,117,000pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board.

Together with accumulative subscriptions during the past two years, Mr. Tao Li had purchased a total of 829,896 shares of the Common Stock from the Company with an over $2 million investment of his personal wealth accumulatively since 2012.


Deal Flow

Item 3.02      Unregistered Sales of Equity Securities.


On October 1, 2014, the Board of Directors (the “Board”) of China Green Agriculture, Inc., a corporation incorporated in the State of Nevada (the “Company”), approved a private placement investment in the Company’s common stock from Mr. Tao Li, Chairman and CEO of the Company. The Company sold and issued 496,445 shares of its common stock, par value $0.001 per share (the “Common Stock”) at a purchase price of $2.25 per share, the closing price of the Common Stock that day, for an aggregate purchase price of $1,117,000 pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board and the parties entered into on October 1, 2014. A copy of the Securities Purchase Agreement is herein attached as Exhibit 10.1 and incorporated by reference.


Wednesday, October 1, 2014
Regular Dividend News

XI'AN, China, Oct. 1, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced that the Company's Board of Directors (the "Board") has declared the Company's first cash dividend of US$0.10 per share to the Company's stockholders of common stock.

The dividend payable represents a total payment to the stockholders of approximately US$3.3 million. The first cash dividend is payable on or about January 31, 2015 to stockholders of record as of the close of business on the record date of Friday, October 31, 2014.

The Board approved this first cash dividend after reviewing the Company's financial performance, market condition and expected cash requirements and cash flows. In the future, the Board will continue to review the Company's performance and consider dividend payments in appropriate amount to its stockholders from time to time.  

Mr. Tao Li, chairman and CEO of the Company, said, "I am committed to reward my shareholders for your support. I am long time obliged to your trust and patience. This dividend due is a new start for us to optimize the use of our cash resources and future cash flows to support our business growth while enhancing the returns and values to our stockholders. The start of  dividend payments demonstrates the management's confidence in our new business model. From the current fiscal year, we engage ourselves to focus, to explore, and to explode our sales through various online, offline, and Online to Offline ("O2O") channels. We are excited and ambitious with our growth in future. I welcome you to evidence with me the modern agriculture business in this revolutionary era."


Comments & Business Outlook

XI'AN, China, Oct. 1, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today announced that the Company's Board of Directors (the "Board") has declared the Company's first cash dividend of US$0.10 per share to the Company's stockholders of common stock.

The dividend payable represents a total payment to the stockholders of approximately US$3.3 million. The first cash dividend is payable on or about January 31, 2015 to stockholders of record as of the close of business on the record date of Friday, October 31, 2014.

 

 

XI'AN, China, Oct.1, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provides an update on the development of the Company's business strategies.

The agriculture industry in China is currently ongoing a revolutionary restructuring throughout the country. Such restructuring is characterized by the massive consolidation of arable farming lands along with the ongoing urbanization, the replacement of traditional distribution of agricultural material and goods by the new online, offline, online-to-offline channels, and the emerging of new large-scale farming organizations from historically smaller farmer families and farms. Recently, new competitors, including certain high profile players, such as Alibaba Group ("Alibaba"), and Evergrande Real Estate Group, had penetrated into the sales business in the agriculture industry. While untraditional, these new competitors' actions had significantly reshaped the landscape and outlook of the agriculture industry.

To accommodate the Company's growth in such restructuring environment, we are currently establishing a comprehensive business framework that consists of various online, offline, online-to-offline ("O2O") infrastructure channels to enhance the sales strategies of the Company's products. Owning such infrastructure assets is critical for us to induce offline demand, and transform such demand to online orders via offline network of retail outlets.

Our efforts for the above framework include the development of the Company's proprietary internet platform to the sale of the Company's fertilizer products at subsidiary level. The platform is currently under beta testing and expects to become live at http://www.900cga.comby the end of October 2014.

In addition to developing proprietary internet platform, we are utilizing existing internet channels from third-parties to enhance the availability of the Company's products to enlarged customer base. Specifically, for instances, we had recently signed with Alibaba and registered online stores to sell our products at both Alibaba's B2B wholesale portal and its B2C retail platforms.

What becomes especially noteworthy in our business strategies is the build of an agricultural ecosystem that breaks barrier among separate sales channels by universally integrating the sales of basic materials such as fertilizers and the sales of agriculture products together.

We build such ecosystem in two steps.

Step one is centering at the innovation in payment methods. In addition to the traditional monetary methods through which we collect payment in cash from clients, we are currently planning to accept organic grains and quality agriculture products as an alternative payment or credit from our fertilizer customers in exchange for the Company's fertilizer products. Traditional farmers are risk averse and therefore prefer the non-monetary alternative payment for fertilizers to monetary payment as they are typically cash stringent. With that, we are in a better position to exchange fertilizer for quality agriculture products that would have cost more cash for us to procure with cash otherwise. We are working with our peer partner who had already contracted hundreds of farming clients on its own large-scale bases and thus secured reliable source of quality agriculture products across the country. Such innovation in payment is based on the Company's existing offline sales network of fertilizer products nationwide.

Step two in the ecosystem consists of the successful resale of these quality agriculture products that we collect from countryside to urban residents. Although distant from countryside field, the urban residents have been familiar with ecommerce and go shopping on internet regularly.

We are planning to sell quality agriculture products and organic grain to urban residents online at http://www.900lh.com, offline, and online-to-offline by working with our peer strategic partner, Xi'an Gem Grain Co., Ltd. ("Gem Grain")

Gem Grain was founded on March 2014, and is currently a private subsidiary of of the Xi'an Techteam Investment Holding (Group) Co., Ltd,. Gem Grain focuses on producing high-end private customized organic agricultural products and fresh agricultural products sales online, offline, and online-to-offline.  Techteam Investment is a holding company owned and controlled by Mr. Tao Li, Chairman and CEO of the Company. Gem Grain has established more than 200 planting and breeding bases in the world, it requires the farmers in the bases to purchase the Company's fertilizer, that will enhance our fertilizer sales.

Mr. Tao Li, chairman and CEO of the Company, said, "We had researched, explored, and tried numerous approaches to transform our business model. The outlook of our industry had changed. I am challenged to grow the company in the new landscape of competition. In the new fiscal year, I am very confident that we are much better positioned than our competitors in having achieved early steps in developing new strategies. I will lead my team, to take the leadership role of business model innovation ahead of giant companies in the agriculture industry."


Investor Alert

Today we are making available to you our short thesis report on CGA.

Summary:

  • 344 days of time-lapse surveillance of CGA’s high-margin Jinong fertilizer factory, contributing 75% of CGA’s gross profit, shows it only shipped around 10% of the volume CGA reports it sold.
  • 51 days of time-lapse surveillance of CGA’s low-margin Gufeng factory found 24% to 34% less volume shipped compared to volume sold disclosed in SEC filings.
  • We interviewed current and former CGA employees, one of whom told us that CGA’s Jinong factory exaggerated its production specifically for its stock listing in the U.S.
  • CGA’s auditor, Kabani, signed off on $113 million of outrageous PP&E reclassifications and deferred marketing assets wiping out CGA’s cash. Kabani was also auditor of the  L&L Energy (LLEN) fraud.
  • In addition to potentially falsified sales volumes, CGA’s PP&E reclassifications could constitute capex fraud that in and of itself could be enough to have the company halted and delisted.
    Special Note:

Today, aware of the rising short interest in its stock and less than a day after our final attempt to confront management, CGA announced a one-time dividend of 10c per share ($3.3 million in aggregate), payable four months from now. We doubt that CGA has the capability or desire to actually pay this dividend.   CGA’s dividend announcement reminds us of China Media Express (CCME), which announced a dividend policy following a short seller’s report calling the company a fraud.  CCME never paid.

Please see our entire report here.


Friday, September 12, 2014
Comments & Business Outlook

Fourth Quarter 2014 Financial Results

  • For the three months ended June 30, 2014, net sales were $72.2 million, an increase of $2.4 million, or 3.4%, from $69.8 million for the three months ended June 30, 2013.
  • EPS Diluted for the fourth quarter is $0.11 vs. last years same quarter of $0.51

"As we concluded our recent fiscal year, we look forward to a year with no distractions and expenses from the recently resolved class action lawsuit. The new fiscal year will start with 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. Furthermore, as we enter into the new fiscal year, China Green Agriculture is on its way to achieving the early benchmarks of our ten-year plan that was announced in the year of 2011."

Mr. Tao Li, Chairman and Chief Executive Officer of the Company, stated, "We are very pleased with our performance in business operation, generating $25.5 million net income in the year ended June 30, 2014," he concluded, "Looking ahead to the Fiscal Year 2015, we expect revenue of $254.7 to $268.8 million; net income of $26 to $35.1 million; and EPS of $0.8 to $1.08 based on 32.4 million fully diluted shares. We are confident in accomplishing our goals in the next year."

First Fiscal Quarter 2015 and Fiscal Year 2015 Guidance

For the first quarter ending September 30, 2014, management expects net sales of $50.7 to $54.3 million, net income of $5.9 to $7.8 million, and EPS of $0.18 to $0.24 based on 32.4 million fully diluted shares. For the Fiscal Year 2015, management expects net sales of $254.7 million to $268.8 million, net income of $26 million to $35.1 million, and an EPS of $0.8 to $1.08 based on 32.4 million fully diluted shares.


Friday, August 15, 2014
Resolution of Legal Issues

XI'AN, China, Aug. 15, 2014 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE:  CGA; "CGA" or the "Company") which produces and distributes humic acid-based compound fertilizers and other varieties of compound fertilizers and agricultural products, today announced that, on August 12, 2014, the United States District Court for the State of Nevada had given its final approval to the settlement of the securities class action pending against the Company and certain of its current and former officers and directors since October 15, 2010.  As a result, all of the securities law claims that had been filed against the Company have now been resolved and dismissed.  The Company's insurers funded the full amount of the settlement ($2.5 million).

"After the settlement of the derivative actions against the Company on April 5, 2012, the class action was the only lawsuit still pending. We are pleased that it, too, now comes to an end," said Tao Li, Chairman and Chief Executive Officer of the Company, "The settlement is a significant step forward for us and helps us advance our goals of focusing on building our business and to maximizing shareholder value."


Monday, May 12, 2014
Comments & Business Outlook

Third Quarter of FY2014 Results

Total net sales were $70,295,981, an increase of $4,423,448, or 6.7%, from $65,872,533 for the three months ended March 31, 2013.

"We are very pleased with our performance of business operation, generating $7.2 million net income in the third quarter ended March 31, 2014," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking ahead to the fourth quarter of fiscal year 2014, we expect net sales of $60 to $70 million, net income of $6 to $7 million, and EPS of $0.19 to $0.22 based on 31.8 million fully diluted weighted average shares outstanding for the fourth quarter ended June 30, 2014. We are confident in achieving our target for the fourth quarter of fiscal year 2014. "

Fourth Quarter Fiscal Year 2014 and Updated Fiscal Year 2014 Guidance

"For the fourth quarter ending June 30, 2014, management expects net sales of $60 to $70million, net income of $6 to $7 million, and EPS of $0.19 to $0.22 based on 31.8 million fully diluted shares. For the fiscal year ended June 30, 2014, management expects net sales of $220 million to $230 million, net income of $27 million to $28 million, and an EPS of $0.85 to $0.88 based on 31.8 million fully diluted shares.


Friday, May 9, 2014
Joint Venture

XI'AN, China, May 9, 2014 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that the Company  entered a cooperation agreement (the "Agreement") with Nestle (China) Co., Ltd. ("Nestle China"), to jointly develop a direct sales program (the "Direct Program"), as a mutual effort to supply the Company's fertilizer products to coffee bean farmers in China.

Pursuant to the Agreement, the Company will provide fertilizer products to certified coffee bean farmers in Yunnan province, who sell beans to Nestle (China). In the Direct Program, coffee bean farmers can purchase fertilizer at a better price directly from the Company than an average retail price from the distributors in the fertilizer market. To qualify for the Direct Program, the farmers, who sell coffee bean to Nestle (China), shall be certified by 4C association, the Common Code for the Coffee Community, a certification initiative in the coffee industry.

To purchase fertilizer in the Direct Program, participating farmers will make down payment toward the purchase price, and Nestle (China) will endorse the qualification of the participants for the Company. Pursuant to the Agreement, the Company will roll out the direct sales of its fertilizers to all certified farmers for Nestle (China) throughout China.

In addition to selling fertilizer, in the Direct Program, the Company will also offer training sessions to the farmers to improve their use of fertilizer with best practice, and provide customer support to the farmers during the crop's growth.

"We are excited to work with Nestle (China) under the framework of this agreement," stated Mr. Tao Li, Chairman and Chief Executive Office of China Green Agriculture. "This may provide new engine to the Company's business growth. We are confident that our quality fertilizer will attract more customers and drive our business to new progress in the future."


Monday, February 10, 2014
Comments & Business Outlook

Second Quarter 2014 Results

  • Second Quarter of FY 2014 net sales decreased 2.6% to $40.6 million from $41.7 in the prior year.
  • Second Quarter of FY2014 EPS of $0.12 vs $0.30 in the prior year period.

"While the second quarter of current fiscal year had passed," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture, "looking ahead to the third quarter of fiscal year 2014, we expect net sales of $65 to $70 million, net income of $9 to $10 million, and EPS of $0.28 to $0.31 based on 31.8 million fully diluted shares outstanding for the new quarter. As the sales of fertilizer is expected to ramp up after the spring festival holidays, we are confident in achieving our target in the updated guidance."

Third Quarter Fiscal Year 2014 and Updated Fiscal Year 2014 Guidance

"For the third quarter ending March 31, 2014, management expects net sales of $65 to $70 million, net income of $9 to $10 million, and EPS of $0.28 to $0.31 based on 31.8 million fully diluted shares. For the fiscal year ended June 30, 2014, management expects net sales of $220 million to $250 million, net income of $34 million to $36million, and an EPS of $1.07to $1.13 based on 31.8 million fully diluted shares.


Tuesday, November 12, 2013
Comments & Business Outlook

First Quarter 2014 Financial  Results

  • Total net sales for the three months ended September 30, 2013 were $50,303,347, an increase of $10,790,607, or 27.3%, from$39,512,740 for the three months ended September 30, 2012.
  • EPS (Diluted) was $0.35 vs. last years first quarter of $0.32.

"We are very pleased with our performance of business operation, generating $10.4 million net income in the first quarter endedSeptember 30, 2013," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture. "Looking ahead to the second fiscal quarter ending December 31, 2013, we expect net sales of $43.0 to $47.0 million, net income of $4.0 to $5.0 million, and EPS of $0.13 to $0.16 based on 31.8 million fully diluted shares. For the fiscal year ended June 30, 2014, management expects net sales of $220 million to $250 million, net income of $36 million to $38 million, and an EPS of $1.13 to $1.19 based on 31.8 million fully diluted shares. I believe that with our track-record history and great efforts in our fertilizer business, we are confident in achieving our target for the second quarter of fiscal year 2014, and bring more benefit to our shareholders."

Second Quarter Fiscal Year 2014 and Updated Fiscal Year 2014 Guidance

"For the second quarter ending December 31, 2013, management expects net sales of $43 to $47million, net income of $4 to $5 million, and EPS of $0.13 to $0.16 based on 31.8 million fully diluted shares. For the fiscal year ended June 30, 2014, management expects net sales of $220 million to $250 million, net income of $36 million to $38 million, and an EPS of $1.13 to $1.19 based on 31.8 million fully diluted shares.


Monday, November 4, 2013
Comments & Business Outlook

XI'AN, China, Nov. 3, 2013 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), a company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its operating subsidiaries in China, today announced that it launched three new fertilizer products and added 37 new distributors in the first quarter ended September 30, 2013.

Out of the three new fertilizer products, one new product was launched by Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd, the Company's fertilizer operating subsidiary in Shaanxi province ("Jinong") during the first quarter ended September 30, 2013. The total number of Jinong's fertilizer products in use was 122. During the quarter, Jinong added 31 new distributors (total 857 distributors). The other two new fertilizer products were launched by Beijing Gufeng Chemical Products Co., Ltd., the Company's fertilizer operating subsidiary in Beijing ("Gufeng") during the first quarter ended September 30, 2013. The total number of Gufeng's fertilizer products in use was increased to 322. Gufeng added 6 new distributors (total 214 distributors) during the quarter." With the rollout of new products last quarter, we are now offering 444 fertilizer products to farmers via a network of 1071 distributors nationwide," stated Mr. Tao Li, Chairman, President and Chief Executive Officer of the Company. "We look forward to further expanding our distribution footprints with more product choices for clients in the future."


Thursday, September 12, 2013
Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • FY2013 sales decreased 0.3% to $216.9 million, net income increased 6.7% to $44.8 million with EPS of $1.61
  • EPS (Diluted) was $0.51 vs last years fourth quarter of $0.41 an increase of +23.9%.

"We are very pleased with our consistent performance in fiscal year 2013 where we continued to build shareholder value through focusing on prudent revenue growth, building the long term durability of our business model, sustained net profits and balance sheet discipline. Our performance in 2012 was noteworthy also due to the period during which a special tariff tax is applied as a result of the absence of an "export window" and lower export demand on Nitrogen-Phosphorous elemented compound fertilizer that traditionally supports our Gufeng business segment.

As we exit our recently concluded fiscal year, we look forward to a year without distractions and expense from the recently to-be-resolved shareholder litigation and start our new fiscal year with a particular focus on building our domestic Jinong and Gufeng fertilizer franchise as well as consolidate our Yuxing operations to position our agriculture product revenue for future growth.  Finally, as we enter the new fiscal year, China Green Agriculture is well on its way to achieving the early benchmarks of our ten-year plan," said Mr. Tao Li, Chairman and Chief Executive Officer of China Green Agriculture.

First Quarter Fiscal Year 2014 and Fiscal Year 2014 Guidance

"For the first quarter ending September 30, 2014, management expects net sales of $41.3 to $43.2 million, net income of $10.2 to $10.6 million, and EPS of $0.31 to $0.35 based on 30 million  fully diluted shares. For the fiscal year ended June 30, 2014, management expects net sales of $223.5 million to $231.2 million, net income of $43.5 million to $46.6 million, and an EPS of $1.45 to $1.56 based on 30 million fully diluted shares. Embedded in the forecast for the first quarter 2014 guidance and fiscal year 2014 guidance is an expectation for negligible Gufeng export revenue and challenging planting conditions due to adverse weather affecting the seasonality of our fertilizer business will impact revenue for the first half year," said Mr. Ken Ren, Chief Financial Officer of China Green Agriculture.


Monday, August 5, 2013
Joint Venture

XI'AN, China, Aug. 5, 2013 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that, one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), has signed a cooperation agreement with Anhui Diyuan Biological Technology Co., LTD ("Anhui Diyuan") to produce a new advanced high efficiency fertilizer -- "Tianjuyuan" control release compound fertilizer.

Affiliated with the Chinese Academy of Sciences ("CAS")'s Material Science Research Institute, Anhui Diyuan is committed to developing innovative bioengineering products. Its mainstream products include a fertilizer nutrient control release agent (the "Fertilizer Agent"). Anhui Diyuan owns a number of patents of the Fertilizer Agent.

The objective of this cooperation agreement is to have Gufeng produce the control release compound fertilizer by using the Fertilizer Agent supplied by Anhui Diyuan to improve the control release effectiveness of Gufeng's compound fertilizer. In the agreement, CAS and Anhui Diyuan authorized Gufeng to reference CAS and Anhui Diyuan's name and brand in marketing related to fertilizer products.

"We are happy that Gufeng has entered this cooperation agreement with Anhui Diyuan Biological Technology Co., Ltd," stated Mr. Tao Li, Chairman, President and Chief Executive Officer of the Company. "We expect that the new cooperation will help Gufeng's control release compound fertilizer become more competitive in the control release market."


Tuesday, July 30, 2013
Comments & Business Outlook

XI'AN, China, July 30, 2013 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), a company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that it launched five new fertilizer products and added 32 new distributors in the fourth quarter ended June 30, 2013.

Out of the five new fertilizer products, two new products were launched by Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd, the Company's fertilizer operating subsidiary in Shaanxi province ("Jinong") during the fourth quarter ended June 30, 2013. The total number of Jinong's fertilizer products in use was raised to 134. During the quarter, Jinong added 29 new distributors (total 826 distributors) spreading over 17 provinces in China.

The other three new fertilizer products were launched by Beijing Gufeng Chemical Products Co., Ltd., the Company's fertilizer operating subsidiary in Beijing ("Gufeng") during the fourth quarter ended June 30, 2013. The total number of Gufeng's fertilizer products in use was increased to 320. Gufeng added 10 new distributors (total 208 distributors) during the quarter, with a rough sale volume 1.2 thousand metric tons of the new products.

"With the rollout of new products last quarter, we are now offering 454 fertilizer products to farmers via a network of 1034 distributors nationwide," stated Mr. Tao Li, Chairman, President and Chief Executive Officer of the Company. "We look forward to further expanding our distribution footprints with more product choices for clients in fiscal 2014."


Tuesday, July 9, 2013
Contract Awards

XI'AN, China, July 8, 2013 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong"), signed a five-year cooperation agreement with an agricultural material coop in Zhejiang province, which has been a major distributor with the Company on the sale of Jinong's roots boost product.

Jinong will continuously provide roots boost products such as foliar liquid fertilizer etc. to the Zhejiang dealer in the following five years. The sales of Jinong's roots boost product to the dealer is expected to grow thirty times per annum by the fiscal year of 2017 comparing to that in the fiscal year of 2013 per this agreement.

"We are excited to work with our client under the framework of this new agreement," stated Mr. Tao Li, Chairman and Chief Executive Office of China Green Agriculture. "We are happy our roots boost fertilizers will attract more farming customers inZhejiang province."


Friday, June 21, 2013
Comments & Business Outlook

XI'AN, China, June 21, 2013 /PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), was engaged by the Ministry of Agriculture ("Ministry") as a corporate participant in the Ministry-administered fertilizer promotion program.

The objective of this program is to promote the use of customized formula fertilizer for farming lands of various nutritional conditions nationwide, and targets to increase the farmers' awareness of opting for eco-friendly fertilizer products.

To be qualified for the program, corporate participants are required to assess if they can meet a number of criteria set by the Ministry in their application. These criteria range from the applicant's capacity of production to their capability to produce certain qualified formula products. In the application process, Gufeng was able to meet the criteria and the Ministry engaged Gufeng for the program.

"We are grateful for being able to participate in the Ministry's fertilizer promotion program," stated Mr. Tao Li, Chairman and Chief Executive Officer of the Company. "The work with the program will increase the use of Gufeng's products among the program's farmer participants."


Monday, May 13, 2013
Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Q3 FY2013 net sales decreased 9.8% to $65.9 million, net income increased 8.4% to $13.4 million with EPS of $0.48, beating previously provided guidance
  • Company Provides the Fourth Quarter Fiscal Year 2013 Guidance: Revenue, Net Income and EPS of at least $57.9 million,$12.5 million and $0.45, respectively
  • Company reaffirms Fiscal Year 2013 Guidance: Revenue, Net Income and EPS of at least $205.2 million, $43.2 million, and $1.57, respectively Basic EPSand Diluted EPS was $0.48 vs last years $$0.46 an increase of 4.6%

"We are very pleased with our outstanding performance of business, generating $13.4 million net income in the third quarter ended March 31, 2013," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking ahead to the Fourth fiscal quarter of 2013, we expect net sales of $57.9 to $72.9 million, net income of $12.5 to $14.5 million, and EPS of $0.45 to$0.52 based on 27.7 million fully diluted weighted average shares outstanding for the fourth quarter ended June 30, 2013. With our track-record history in our fertilizer business, we are confident in achieving our target for the fourth quarter fiscal year 2013 and actively working on our 10-year growth plan released last year. We believe our growth plan will well serve the interests of our shareholders."

The Fourth Quarter and Fiscal Year 2013 Guidance:

For the fourth quarter ended June 30, 2013, management expects net sales of $57.9 to $72.9 million, net income of $12.5 to $14.5 million, and EPS of $0.45 to $0.52 based on 27.7 million fully diluted weighted average shares outstanding. For the fiscal year ended June 30, 2013, management expects net sales of $205.2 million to $220.7 million, net income of $43.0 million to $45.0 million, and an EPS of $1.55 to $1.62 based on 27.7 million weighted average shares.


Friday, February 8, 2013
Comments & Business Outlook

Second Quarter 2013 Results

  • Total net sales for the three months ended December 31, 2012 were $41.7 million, a decrease of $5.4 million, or 11.4%, from $47.1 million for the three months ended December 31, 2011.
  • Diluted EPS for the three months ended December 31, 2012 were $0.30 vs $0.29 in the prior year.

"We are pleased with our performance of business, generating $11.0 million net income in the second quarter ended December 31, 2012," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking ahead to the third fiscal quarter of 2013, we expect net sales of $60.0 to $65.0 million, net income of $12.0 to $13.0 million, and EPS of $0.43 to $0.47 based on 27.7 million fully diluted weighted average shares outstanding for the third quarter ended March 31, 2013. With our track-record history and incredible momentum in our fertilizer business, we are confident in achieving our target for the third quarter fiscal year 2013. "

The Third Quarter and Fiscal Year 2013 Guidance:

For the third quarter ended March 31, 2013, management expects net sales of $60.0 to $65.0 million, net income of $12.0 to $13.0 million, and EPS of $0.43 to $0.47 based on 27.7 million fully diluted weighted average shares outstanding. For the fiscal year ended June 30, 2013, management now expects net sales of $205.0 million to $220.0 million, net income of $43.0 million to $45.0 million, and an EPS of $1.55 to $1.62 based on 27.7 million weighted average shares.


Tuesday, November 20, 2012
Comments & Business Outlook

First Quarter 2013 Results

  • Total net sales for the three months ended September 30, 2012 were $ 39.5 million, a decrease of $13.6 million, or 25.6%, from $53.1 million for the three months ended September 30, 2011.
  • For the three month period ended September 30, 2012 diluted net income per share was $0.32 as compared to $0.40 for the same period in 2011.

"Compared to the first fiscal quarter of 2012, we saw a decrease in the sales and net income in the first quarter of 2013, which was largely due to the decrease in Gufeng's net sales and gross profit. For the three months ended September 30, 2012, our revenue exceeded the high end of the previously announced revenue guidance and net income fell short of the corresponding guidance. However, we had approximately $6.4 million in operating cash flow as of September 30, 2012," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture. "We believe that we are well-positioned to generate substantial returns on our investment and are confident in our track towards achieving our ten-year growth plan, enhancing our strong position in the fertilizer industry and finally maximizing our shareholders' and employees' benefits. With the termination of SEC investigation and an aggregate amount of $500,000 stock purchase by the executive, we are committed to grow the company's business and thrive to increase the enterprise value for the shareholders."

Fiscal Year 2013 and the Second Quarter Guidance

For the fiscal year ended June 30, 2013, management expects net sales of $238.0 million to $255.9 million, net income of $46.2 million to $49.2 million, and an EPS of $1.68 to $1.79 based on 27.5 million weighted average shares. For the second quarter ended December 31, 2012, management expects net sales of $47.2 to $50.8 million, net income of $8.0 to $9.0 million, and EPS of $0.29 to $0.33 based on 27.5 million weighted average shares.


Thursday, September 13, 2012
Comments & Business Outlook

Fourth Quarter 2012 Results

  • Net sales for the three months ended June 30, 2012 were $57.3 million, a decrease of $3.0 million, or 4.9%, from $60.3 million for the three months ended June 30, 2011.
  • Net income was $11.1 million, an increase of $1.7 million or 17.9% for the three months ended June 30, 2012, as compared to $9.4 million in the same period last year.
  • EPS for the three months ended June 30, 2012 were $0.41 vs $0.38 in prior year period.

"We are extremely pleased with our strong performance in fiscal year 2012 where we far exceeded our net income guidance with the net income of $42.0 million," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture. "Looking ahead to the first fiscal quarter 2013, we expect net sales of $35.6 to $38.2 million, net income of $9.5 to $10.1 million, and EPS of $0.35 to $0.37 based on 27.5 million weighted average shares. For the fiscal year 2013, we expect net sales of $238.0 million to $255.9 million, net income of $46.2 million to $49.2 million, and an EPS of$1.68 to $1.79 based on 27.5 million weighted average shares. With our track-record history and incredible momentum in our fertilizer business, we are confident in achieving our target for the first fiscal quarter 2013 and actively working on our 10-year growth plan released last year. We believe our growth plan will well serve the interests of our shareholders."

Fiscal Year 2013 Guidance

For the fiscal year ended June 30, 2013, management expects net sales of $238.0 million to $255.9 million, net income of $46.2 million to $49.2 million, and an EPS of $1.68 to $1.79 based on 27.5 million weighted average shares. For the first quarter ending September 30, 2012, management expects net sales of $35.6 to $38.2 million, net income of $9.5 to $10.1 million, and EPS of $0.35 to $0.37 based on 27.5 million weighted average shares.


Monday, July 30, 2012
Comments & Business Outlook

XI'AN, China, July 30, 2012 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries in China, today announced that it launched seven new fertilizer products and added 49 new distributors in the fourth quarter ended June 30, 2012.

The seven new fertilizer products, including five broad-spectrum and two powder fertilizer products, were launched by Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd, the Company's fertilizer operating subsidiary in Shaanxi province ("Jinong") during the fourth quarter ended June 30, 2012. During the quarter, Jinong retired 35 fertilizer products because the fertilizer products were either outdated or upgraded fertilizer products had been rolled out. The launch and retirement of fertilizer products brought the total number of Jinong's fertilizer products in use to 126.

The management estimated the seven new products contributed approximately RMB733,180 (approximately $115,256) to Jinong's fertilizer revenues during the quarter. Jinong also added 46 new distributors during the quarter, which brought the total number of Jinong's distributors to 758. These new distributors contributed approximately RMB10,852,450 (approximately $1,706,005) to Jinong's fertilizer revenues during the quarter. During the three months ended June 30, 2012, Jinong's revenue attributable to the new products distributed by its new distributors was RMB 280,600(approximately $44,110).

Beijing Gufeng Chemical Products Co., Ltd., the Company's fertilizer operating subsidiary in Beijing ("Gufeng") added three new distributors during the quarter, which brought the total number of Gufeng's distributors to 185. These three new distributors contributed approximately RMB3,024,235 (approximately $475,410) to Gufeng's fertilizer revenues for the quarter ended June 30, 2012. During the quarter ended June 30, 2012, no revenue of Gufeng was attributable to the new products distributed by its new distributors.

"I am very pleased that these new products reached the market during the quarter ended June 30, 2012. They further demonstrated our long-term commitment to faster product development process and market roll-out of new products. Our R&D capacity and new business development capability constituted the main drivers of the company's growth and will be continuously strengthened in the future to realize our 10-year growth plan. The long-term commitment, based on our market insight, is to secure a leading position for the Company in the fertilizer industry," said Mr. Tao Li, the Company's Chairman and CEO.


Monday, May 7, 2012
Comments & Business Outlook

Third Quarter 2012 Results

  • Our net sales for the three months ended March 31, 2012 were $60.0 million, an increase of $15.4 million, or 34.4%, from $44.7 million for the three months ended March 31, 2011
  • Net income for the three months ended March 31, 2012 was $12.4 million, an increase of $2.9 million, or 30.6%, as compared to $9.5 million for the three months ended March 31, 2011.
  • For the three month period ended March 31, 2012, diluted net income per share was $0.46as compared to $0.35for the same period in 2011, weighted average shares outstanding of 27.0 million and 26.7 million, respectively.

Capital Expenditure

For the third quarter ended March 31, 2012, the capital expenditure stood at approximately $1.9 million.

The Fourth Quarter and Fiscal Year 2012 Guidance:

For the fourth quarter ended June 30, 2012, management expects net sales of $52.5 million to $68.2 million, net income of $7.2 million to $9.8 million, and EPS of $0.27 to $0.36 based on 27.0 million fully diluted weighted average shares outstanding. For the fiscal year ended June 30, 2012, the Company raises the guidance: net sales of $212.7 million to $228.4 million, net income of $38.0 million to $40.6 million and an EPS of $1.41 to $1.50 based on 27.0 million fully diluted weighted average shares outstanding in view of the strong performance of the third fiscal quarter.


Tuesday, May 1, 2012
Comments & Business Outlook

XI'AN, China, May 1, 2012 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), a producer and distributor of humic-acid based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slow-release fertilizers, highly-concentrated water soluble fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries in China, today announced that it launched six new fertilizer products and added 18 new distributors in the third quarter ended March 31, 2012.

The six new fertilizer products, including two broad-spectrum fertilizer products launched by Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd, the Company's fertilizer operating subsidiary in Shaanxi province ("Jinong"), one humic-acid based organic-inorganic compound fertilizer product and three compound fertilizer products with different NPK contents launched by Beijing Gufeng Chemical Products Co., Ltd., the Company's fertilizer operating subsidiary in Beijing ("Gufeng") during the third quarter ended March 31, 2012.

Jinong's two new products contributed RMB561, 600 (approximately $88,284) to Jinong's fertilizer revenues during the quarter. Jinong also added 13 new distributors during the quarter, which brought the total number of Jinong's distributors to 712. These new distributors contributed RMB3, 169,860 (approximately $498,302) to Jinong's fertilizer revenues during the quarter.

Gufeng's four new products contributed no revenue to Gufeng's fertilizer revenues as of the end of the third quarter because the fertilizer certificates for these four new fertilizer products were issued beyond the quarter end. Gufeng added five new distributors during the quarter. These five new distributors contributed RMB1,088,839 (approximately $171,165) to Gufeng's fertilizer revenues during the quarter.

"Thanks to our R&D team, we successfully launched these six new fertilizer products during the quarter. These six new fertilizer products had brought our total number of fertilizer products to 471. Meanwhile, we appreciate our marketing team's effort to the ongoing business expansion, a result of which our total number of distributors amounted to 894 during the quarter," said Mr. Tao Li, the Company's Chairman and CEO.


Monday, April 16, 2012
Resolution of Legal Issues

XI'AN, China, April 16, 2012 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), a producer and distributor of humic acid-based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slow-release fertilizers, highly-concentrated water soluble fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries in China, today announced that all of the shareholder derivative actions pending against certain of the Company's current and former officers and directors and its auditor have been resolved and dismissed.

On March 30, 2012, the judge of the First Judicial District Court of the State of Nevada in and for Carson City (the "State Court") issued an Order of Final Approval of the Settlement in the three consolidated shareholder derivative actions pending before the State Court and dismissed those actions. The dismissal and judgment was entered on April 5, 2012. As a result of this settlement, all the derivative claims are released. The plaintiffs' legal fees and expenses of $650,000 have been paid by the defendants' insurers.

In connection with the settlement of the derivative claims, on April 5, 2012, the Judge in the United States District Court of Nevada (the "Nevada Federal Court") dismissed the federal derivative action.

The dismissal of the four derivative actions does not involve the class action lawsuit filed in the Nevada Federal Court on October 15, 2010.

"We are pleased with the resolution of the derivative actions and the approval of the settlement. The settlement achieved is a recognition of the continued strengthening of our corporate governance," said Mr. Tao Li, Chairman and Chief Executive Officer of the Company. "The conclusion of the derivative actions is a significant step forward in our efforts to focus on moving the Company forward and maximizing shareholders' value."


Thursday, March 8, 2012
Notable Share Transactions

XI'AN, China, March 8, 2012 /PRNewswire-Asia-FirstCall/ --China Green Agriculture, Inc. (NYSE: CGA) ("CGA" or the "Company"), a producer and distributor of humic acid based compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries in China, today announced that Mr. Tao Li, the Company's Chairman and Chief Executive Officer completed the purchase of 63,158 shares of the Company's common stock, par value $0.001 per share, in a private placement, at a purchase price of $4.75 per share, a price at the highest closing price of the Company's common stock over the last 90 trading days, for an aggregate purchase price of $300,000.50, pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board of Directors.

"Given the Company's impressive growth in the compound fertilizer business, diversified product portfolio, nationwide distribution network and increasing demand for our compound fertilizer products, I believe the current stock price does not fully reflect the Company's present business performance and future growth targets. This executive share purchase demonstrates my confidence in the Company's ongoing business growth," said Tao Li.


Thursday, February 9, 2012
Resolution of Legal Issues

XI'AN, China, February 10, 2012 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a producer and distributor of humic acid based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slow-release fertilizers, highly-concentrated water soluble fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries in China, today announced that, on February 1, 2012, the First Judicial District Court of the State of Nevada in and for Carson City (the "Court") preliminarily approved the proposed settlement of all of the four pending derivative actions brought on behalf of China Green Agriculture, Inc.

Subject to the Court's final approval, the proposed settlement will result in a release of all claims and does not provide for the payment of monetary compensation to shareholders. Instead, it provides for the adoption by the Company certain significant corporate governance reforms designed to strengthen the Company's internal controls and for the payment of plaintiffs' attorneys' fees and expenses of $650,000, all to be contributed by the insurers.

The hearing for the final approval of the proposed settlement has been set on March 30, 2012 at 1:30 p.m., pacific time.

The proposed settlement does not involve the pending class action lawsuit filed against the Company and certain of its current and former officers in the United States District Court for the District of Nevada on October 15, 2010.


Wednesday, February 8, 2012
Comments & Business Outlook

Second Quarter 2012 Results

  • Our net sales for the quarter ended December 31, 2011 were $47.1million, an increase of $11.8 million, or 33.4%, from $35.3 million for the three months ended December 31, 2010, largely due to the strong sales of fertilizer products for each subsidiary during this period.
  • Net income for the three months ended December 31, 2011 was $7.7 million, an increase of $1.5 million, or 24.3%, compared to $6.2 million for the three months ended December 31, 2010. The increase was attributable to the increase in gross profit.

"We are very pleased with our outstanding performance of business, generating $7.7 million net income in the second quarter ended December 31, 2011," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking ahead to the third fiscal quarter of 2012, we expect net sales of $53.0 to $56.4 million, net income of $ 9.7 to $10.7 million, and EPS of $0.36 to $0.40 based on 26.9 million fully diluted weighted average shares outstanding for the third quarter ended March 31, 2012. With our track-record history and incredible momentum in our fertilizer business, we are confident in achieving our target for the third quarter fiscal year 2012 and actively working on our 10-year growth plan released last year. We believe our growth plan will well serve the interests of our shareholders."

The Third Quarter and Fiscal Year 2012 Guidance:

For the third quarter ended March 31, 2012, management expects net sales of $53.0 to $56.4 million, net income of $9.7 to $10.7 million, and EPS of $0.36 to $0.40 based on 26.9 million fully diluted weighted average shares outstanding. For the fiscal year ended June 30, 2012, the Company raises the revenue guidance: net sales of $212.3 to $228.0 million, reaffirms the net income guidance of $37.9 to $40.5 million and an EPS of $1.41 to $1.51 based on 26.9 million fully diluted weighted average shares outstanding in view of the strong performance of the second fiscal quarter.  


Thursday, November 10, 2011
Comments & Business Outlook

First Quarter 2012 Results

Our net sales for the quarter ended September 30, 2011 were $53.1million, an increase of $13.6 million, or 34.5%, from $39.5 million for the three months ended September 30, 2010

For the three month period ended September 30, 2011 diluted net income per share was $0.40 as compared to $0.30 for the same period in 2010, based on diluted weighted average shares outstanding of 26.9 million and 26.0 million, respectively.

"We are pleased with our strong performance in the first quarter where we far exceeded the high end of our previously announced revenue and EPS guidance for the first quarter of fiscal year 2012 " said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture. " With the increasing demand in the fertilizer products and our ongoing commitment on the capacity expansion, we expect the net sales of $40.9 to $44.8 million, net income of $6.9 to $7.5 million, and EPS of $0.26 to $0.28 based on 26.9 million weighted average shares for the second quarter ended December 31, 2011. Our ten-year grown plan, executed by our people in a moderate manner and supported by our patient investors, will enable us to meet farmers' increasing demands in our organic compound fertilizer products, enhance our strong position in the fertilizer industry and finally maximize our shareholders' and employees' profits."

The Second Quarter and Fiscal Year 2012 Guidance:

For the second quarter ended December 31, 2011, management expects net sales of $40.9 to $44.8 million, net income of $6.9 to $7.5 million, and EPS of $0.26 to $0.28 based on 26.9 million weighted average shares. For the fiscal year ended June 30, 2012, the Company raises the guidance: the management estimates the Company could achieve net sales of $211.8 million to $226.7 million, net income of $37.9 million to $40.5 million, and an EPS of $1.41 to $1.51 based on 26.8 million weighted average shares in view of the strong performance of the first fiscal quarter. The 2012 fiscal year guidance provided previously included net sales of $209.6 million to $224.6 million, net income of $37.1 million to $38.0 million, and an EPS of $1.38 to $1.48 based on 26.8 million weighted average shares.


Friday, September 9, 2011
Comments & Business Outlook

Fourth Quarter and Year End 2011 Results

Financial Summary

Fourth Quarter 2011 Results (USD)

 

(three months ended June 30, 2011)

 




 

Q4 FY2011

Q4 FY2010

CHANGE (%)*

 

Net Sales

$60.3 million

$16.2 million

+ 272.0%

 

Gross Profit

$21.1 million

$9.1 million

+131.6%

 

Net Income

$9.4 million

$6.0 million

+57.4%

 

EPS (Diluted)

$0.38

$0.25

+ 52.0%

 

Weighted Average Shares Outstanding(Diluted)

26.8 million

24.6 million

+14.4%

 

* The Company's results for the fourth quarter of Fiscal Year 2010 is not inclusive of the operating results of Beijing Gufeng Chemical Products Co., Ltd. and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd. a company incorporated under the laws of the People's Republic of China, which the Company acquired during July 2010.

 
       


FY 2011 Results (USD)

 

(fiscal year ended June 30, 2011)

 




 

FY2011

FY2010

CHANGE (%)*

 

Net Sales

$179.7 million

$52.1 million

+ 245.0%

 

Gross Profit

$63.6million

$31.0 million

+105.5%

 

Net Income

$32.9million

$21.3 million

+54.6%

 

EPS (Diluted)

$1.27

$0.91

+ 39.9%

 

Weighted Average Shares Outstanding(Basic and Diluted)

25.9 million

23.5 million

+10.5%

 

* The Company's results for the Fiscal Year 2010 is not inclusive of the operating results of Beijing Gufeng Chemical Products Co., Ltd. and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd. a company incorporated under the laws of the People's Republic of China, which the Company acquired during July 2010.

 
       


"We are extremely pleased with our strong performance in fiscal year 2011where we far exceeded the high end of our revenue guidance," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture. "We are particularly happy with our progress in integrating and expanding Gufeng which we acquired in July 2010. I believe that we have established a solid track record that we can replicate in the future. Our performance at Gufeng validates our initial vision behind the acquisition and supports our ambitious growth plan which calls for $750 million in net sales by fiscal year 2015. Record sales at Jinong further fuel our growing momentum as we push into 2012. While demand for fertilizer products continues to grow, our strong working capital positions us well to increase market share in an industry that will continue to consolidate."

Fiscal Year 2012 Guidance

For the fiscal year ended June 30, 2012, management expects net sales of $209.6 million to $224.6 million, net income of $37.1 million to $39.8 million, and an EPS of $1.38 to $1.48 based on 26.8 million weighted average shares. For the first quarter ending September 30, 2011, management expects net sales of $46.8 to $50.0 million, net income of $7.1 to $7.9 million, and EPS of $0.26 to $0.29 based on 26.8 million weighted average shares.


Friday, May 13, 2011
Analyst Reports

Rodman and Renshaw on CGA                                  5/13/2011

F3Q11 Results Slightly Above Expectations; Maintain Market Perform

F3Q11 Results

China Green Agriculture (“China Green”, Ticker: CGA, Market Perform) reported F3Q11 results that were mostly above our expectations. Net revenue increased 232.2% YoY and reached $44.7 million, slightly above our estimate of $41.8 million. Gufeng subsidiary continued to be the company’s largest revenue contributor, providing $26.1 million, or 58.5% of the total sales. Jinong sales reached $16.2 million. Gross profit in the quarter came in at $17.0 million, up 110.1% YoY and above our estimate of $14.8 million. Gross margin was 38.2%%, higher than our expectation of 35.5%. G&A expenses were 3.3 million, above our estimate of $3.0 million. Management cited some Gufeng related G&A expenses, additional investor relations fees, and litigation related expenses as the major reasons for this higher than expected expense item. Selling expenses were $1.7 million, in-line with our estimate. Operating income in the quarter was $12.1 million, up 95.3% YoY and above our estimate of $10.1 million. Net income was $9.5 million, up 77.6% YoY, translating to $0.35 per diluted share, above our estimate of $8.1 million or $0.30 per diluted share. Net margin in the quarter was 21.2%, compared to our estimate of 19.3%. The company also reported that, as of March 31, 2011, it had $66.9 million of cash and cash equivalents.

Adjusting estimates and maintaining Market Perform rating

We have tweaked our financial model to reflect the F3Q11 performance. For F4Q11, we now expect the company will realize $43.0 million of revenue, $8.7 million of net income, and $0.32 of EPS. For full year F2011, we estimate total revenue of $162.5 million, net income of $32.2 million, and $1.21 EPS. Despite the stronger than expected F3Q11 results, we continue to take a conservative approach with regard to our view on the share price outlook. In light of the current market sentiment towards small Chinese RTO companies, we believe financial fundamentals are almost taking a backseat to investor sentiment and companies’ perceived corporate governance quality. In this regard, we believe China Green is still facing a number of uncertainties such as its pending litigation and auditor change. Thus we continue to take a wait and see approach and maintain our Market Perform/Speculative Risk rating on the shares of China Green.

Risks

Major risks include: 1) The seasonal variations and adverse weather conditions could impact agricultural production, which in turn could result in reduced demand for fertilizer products; 2) Delay or halt in the launch of new products or addition of new distributors could lead to stagnation or decline in revenue growth; 3) Highly competitive industry with numerous national and local players; 4) Decline in margins as the company ventures into more product areas; 5) Litigation risk; and 6) Political, regulatory, and economical risks related to operating in China.


Notice Regarding Privacy and Confidentiality:


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.


Wednesday, May 11, 2011
Comments & Business Outlook

Third Quarter Results:

  • Q3 FY 2011 sales increased 232.2% to $44.7 million, net income increased 77.6% to $9.5 million with EPS of $0.37*.
  • Q3 FY 2011 gross margin decreased to 38.2% from 60.3% Y-O-Y; operating margin decreased to 27.2% from 46.2% Y-O-Y*.
  • Q3 net income totaled $9.5 million, up 77.6% from $5.3 million in Q3 FY2010.
  • Company reaffirms the revised FY 2011 guidance: revenue, net income and EPS of at least $155.0 million, $31.5 million, and $1.17, respectively.
  • Management to host earnings conference call at 8:30am ET, Wednesday, May 11, 2011

GeoTeam® Note: 2011 First quarter analyst EPS estimates were $0.30.

China Green Agriculture's revenue of $44.7 million for its third quarter of fiscal year 2011 exceeded the high end of its previously announced revenue guidance for the quarter of $41.8 million to $43.6 million. Net income of $9.5 million or $0.37 per share also exceeded the Company's net income guidance for the quarter of $8.2 million to $8.6 million, or $0.31 to $0.32 per share.

For the fiscal year ending June 30, 2011, management reaffirmed its revised

  • revenue guidance of a range of $155.0 million to $165.0 million
  • net income guidance to a range of $31.5 million to $33.2 million
  • EPS guidance to a range of $1.17 to $1.24 based on 26.9 million weighted average shares.

Friday, April 15, 2011
Comments & Business Outlook

XI'AN, China, April 15, 2011 /PRNewswire-Asia/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a producer and distributor of humic acid ("HA") based compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizers through its wholly owned subsidiaries in China, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong") and Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), today announced that Gufeng signed a fertilizer export contract (the "Agreement") with Beijing Baofengnian Agricultural Material Co. Ltd ("Baofengnian") on April 11, 2011.

According to the Agreement, Gufeng will export 30,000 Metric Tons of compound fertilizer products through Baofengnian, representing 6% of Gufeng's recently expanded annual fertilizer production capacity. Gufeng will ship all the compound fertilizers required by the Agreement from its Beijing factory by June 15, 2011.

Baofengnian is a Beijing-based wholesaler and distributor of agricultural basic materials including fertilizers, pesticides and crop seeds. Baofengnian has been a distributor of various Gufeng compound fertilizers over years in the domestic market, particularly in northern China. The Agreement is the first export contract between the two parties.

"We are very happy to expand our standing relationship with Baofengnian to the export segment" commented Mr. Tao Li, Chairman and CEO of China Green Agriculture. "This contract is important on several fronts. Firstly, it will further utilize Gufeng's recently expanded production capacity; secondly, it will contribute to our fiscal year 2011 results; and finally, it builds on our recently announced export contract with SinoAgri for 165,000 Metric Tons and reinforces the growing importance of exports in our revenues. We will continue to work with our business partners to grow exports which are an integral part of the Company's comprehensive development strategy to achieve the $3 billion annual revenue goal under our recently announced ten-year growth plan."


Wednesday, April 13, 2011
Comments & Business Outlook

XI'AN, China, April 13, 2011 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. today announced that Gufeng began shipping the first 20,000 Metric Ton ("MT") batch of finished compound fertilizers to India under the 165,000 MT export contract (the "Agreement") it signed in December 2010 with SinoAgri Holding Company Limited ("SinoAgri"). As one of the largest domestic fertilizer traders in China, SinoAgri has been Gufeng's long-term business partner for fertilizer exports.

According to the Agreement, Gufeng will export 165,000 MTs of binary acid compound fertilizer products to India during calendar year 2011. This represents 29.7% of the Company's recently expanded annual fertilizer production capacity. StartingApril 1, 2011, Gufeng has been shipping 20,000 MTs of finished compound fertilizer from its Beijing factory for container loading in Port Qinhuangdao and Tianjin, respectively 150 miles and 100 miles away.

"With the launch of Gufeng's new 200,000 MT production line last week which brought Gufeng's annual production capacity to 500,000 MTs, we have the ability to produce the 165,000 MTs under this Agreement and expect that 50,000 MTs will be shipped by June 30th, the end of our 2011 fiscal year," commented Mr. Tao Li, Chairman and CEO of China Green Agriculture. "While we will continue to work with our long-term export partners, we will also pursue opportunities to develop new export clients in the future," added Chairman Li, "Export growth is critical to our ability to achieve our $3 billion annual revenue goal under our recently announced ten-year growth plan."


Wednesday, March 2, 2011
Comments & Business Outlook

XI'AN, China, March 2, 2011 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. today announced that on February 28, the Company's Board of Directors approved the Company's ten-year corporate growth plan (the "Plan") for the period from 2011 to 2020.

The Plan underpins the Company's goal of becoming a leader in the overall fertilizer industry in China by 2020.  It is the result of one year of intensive research and analysis covering market research, peer analysis, government information and projections, and evolved over many internal review meetings involving all managers responsible for key parts of the business.

After careful review, management and the Board of Directors concluded that the Company should work towards the following revenue targets over the next ten years:

1. at least $150 million for fiscal year 2011;

2. at least $750 million for fiscal year 2015; and

3. at least $3 billion for fiscal year 2020.


Tuesday, February 15, 2011
Liquidity Requirements
We intend to use some remaining net proceeds from the Public Offerings (approximately $8.5 million) to acquire new businesses, upgrade production lines and complete the greenhouse facilities for agriculture products of Yuxing located on 88-acres of land in Hu County, 18 kilometers southeast of Xi’an city. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. Notwithstanding the foregoing, we may seek additional financing for expansion purposes, which may include additional equity financings. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders.

Thursday, February 10, 2011
Analyst Reports

Rodman & Rodman on CGA                                   2/10/2011

Mixed F2Q11 Results; Maintain Market Perform 

Mixed F2Q11 results 

China Green Agriculture (“China Green”, Ticker: CGA, Market Perform) reported mixed F2Q11 results. Net revenue for the quarter reached $35.3 million, above the company’s previous guidance of $33.1-33.3 million as well as both Street consensus and our estimates of $33.3 million. The company’s Gufeng subsidiary was once again a major revenue contributor with $18.9 million, or 53.5% of the total sales. The Jinong unit contributed $14.3 million to the overall top line. Gross margin for the quarter was 34.9%. While it represented a significant drop from a year ago, largely due to a higher sales component of lower-margined granular fertilizer products, mostly from Gufeng, it was actually slightly better than our previous estimate of 33.2%. G&A expenses were 2.9 million, significantly above our estimate of $1.8 million. Management cited escalating litigation related expenses and higher stock based compensation as the major reasons for this higher than expected expense item. Selling expenses were $1.6 million, higher than our estimate of $1.2 million. F2Q11 operating income was $7.9 million, slightly below our estimate of $8.1 million. Net income was $6.2 million, translating to EPS of $0.24, below both respective Street consensus of $7.4 million and $0.28 and our Street-low estimates of $6.8 million and $0.26. They were also below the company’s own guidance of $7.76-7.86 million net income and $0.29 EPS.

Updated FY2011 guidance 

The company updated its FY2011 guidance, with total revenue between $155.0 and $165.0 million, net income between $31.5 and $33.2 million, and EPS between $1.17 and $1.24 (based on 26.9 million weighted average shares). For F3Q11, the company now expects to realize $41.8-43.6 million of revenue, $8.2-8.6 million of net income, and $0.31-0.32 of EPS (based on 26.9 million weighted average shares).

Adjusting estimates and maintain Market Perform rating 

In light of the F2Q11 performance and the company’s updated guidance, we have tweaked our financial model. For F3Q11, we now expect the company will realize $41.8 million of revenue, $8.1 million of net income, and $0.30 of EPS. For full year F2011, we estimate total revenue of $159.6 million, net income of $30.8 million, and $1.16 EPS. We are maintaining our Market Perform/Speculative Risk rating on the shares of China Green. We believe while the company could be a long term growth story, in the short term there are a number of uncertainties, such as its continued integration of the Gufeng unit and its potential engagement of a Big 4 auditor, that are keeping us on the sideline.

Risks 

Major risks include: 1) The seasonal variations and adverse weather conditions could impact agricultural production, which in turn could result in reduced demand for fertilizer products; 2) Delay or halt in the launch of new products or addition of new distributors could lead to stagnation or decline in revenue growth; 3) Highly competitive industry with numerous national and local players; 4) Decline in margins as the company ventures into more product areas; 5) Litigation risk; and 6) Political, regulatory, and economical risks related to operating in China.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.


Wednesday, February 9, 2011
Comments & Business Outlook
CONSOLIDATED STATEMENTS OF  INCOME AND COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2010 AND 2009
(UNAUDITED)

   
For the Three Months Ended December 31,
   
For the Six Months Ended December 31,
 
   
2010
   
2009
   
2010
   
2009
 
Sales
                       
Jinong
  $ 14,251,229     $ 9,110,797     $ 30,822,522     $ 19,289,446  
Gufeng
    18,875,897       -       40,676,931       -  
Jintai
    2,184,612       2,061,319       3,295,206       3,159,490  
Net sales
    35,311,738     $ 11,172,116       74,794,659       22,448,936  
Cost of goods sold
                               
Jinong
    6,791,183       3,267,122       13,644,970       7,002,486  
Gufeng
    14,998,764       -       33,899,277       -  
Jintai
    1,188,965       1,135,221       1,778,259       1,717,718  
Cost of goods sold
    22,978,912       4,402,343       49,322,506       8,720,204  
Gross profit
    12,332,826       6,769,773       25,472,153       13,728,732  
Operating expenses
                               
Selling expenses
    1,589,006       520,096       3,004,991       735,767  
General and administrative expenses
    2,871,064       814,551       4,969,251       1,348,730  
Total operating expenses
    4,460,070       1,334,647       7,974,242       2,084,497  
Income from operations
    7,872,756       5,435,126       17,497,911       11,644,235  
Other income (expense)
                               
Other income (expense)
    2,084       (413 )     (9,859 )     553  
Interest income
    87,925       52,656       152,916       81,922  
Interest expense
    (117,852 )     (44,335 )     (294,527 )     (105,644 )
Total other income (expense)
    (27,843 )     7,908       (151,470 )     (23,169 )
Income before income taxes
    7,844,913       5,443,034       17,346,441       11,621,066  
Provision for income taxes
    1,615,421       722,041       3,329,164       1,652,798  
Net income
    6,229,492       4,720,993       14,017,277       9,968,268  
Other comprehensive income
                               
Foreign currency translation gain/(loss)