China Green Agriculture (NYSE:CGA)

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.  

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."

Fourth Quarter and Year End 2011 Results

Financial Summary

"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.

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.

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."

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."

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.

Third Quarter 2010 Results

Financial Summary

Fiscal Year 2011 and the Second Quarter Guidance

• Revenues from $150.5 million to $152.8 million

• Net income from $36.2 million to $36.8 million

• EPS from$1.35 to $1.37based on 26.8 million weighted average shares vs. analyst estimates of $1.36.

Fiscal 2011 Second Quarter Guidance:

• Revenues from $33.1 million to $33.3 million

• Net income from $7.76 million to $7.86 million

• EPS of $0.29 based on 26.9 million weighted average shares vs analyst estimates of $0.29. This guidance reaffirms the previously disclosed guidance for the full fiscal year of 2011.

Outlook

Chairman Li commented: "Our strong organic sales growth augmented by the Gufeng acquisition gives us a solid platform for continuous growth. With the integration of Gufeng underway, we will continue to enhance our product portfolio and distribution channels, fully utilize and expand capacity, and optimize operational efficiency. We believe our enlarged portfolio of diversified and branded products combined with continued solid financial performance will position us well to capitalize on the inevitable consolidation in the highly fragmented Chinese fertilizer industry and to create value for our shareholders."

Fourth Quarter FY2010 Results

• Total net sales for the three months ended June 30, 2010 were $16.2 million, an increase of 54.5% from $10.5 million for the three months ended June 30, 2009. Net sales of Jinong, which is the division that sells humic acid based compound fertilizers, accounted for 94.2% of total net sales.
  
• Gross profit for the fourth quarter of fiscal year 2010 totaled $9.1 million, an increase of 42.8% from $6.4 million in the same quarter of fiscal year 2009. Gross profit margin was 56.3% for the fourth quarter of fiscal year 2010, down from 60.9% a year ago. The decrease in gross margin was primarily due to significantly higher growth in lower margin fertilizer products such as granular fertilizers.
  
• Operating income for the fourth quarter of fiscal year 2010 was $7.1 million, up 36.2% from $5.2 million in the fourth quarter of fiscal year 2009. Operating margin was 43.7%, compared to 49.5% in the same quarter of fiscal year 2009.
  
• Net income for the fourth quarter of fiscal year 2010 was $6.0 million, up 35.5% compared with net income of $4.4 million during the same period in fiscal year 2009.
  
• For the three month period ended June 30, 2010 basic and diluted net income per share was $0.25 as compared to $0.24 for the same period in 2009, based on weighted average shares outstanding of 24.6 million and 18.6 million, respectively. Net income margin approximated 37.0% and 42.1% for the three months ended June 30, 2010 and 2009, respectively.

"Fiscal year 2010 has been a monumental year for our Company which resulted in exceeding our revenue and net income guidance," stated Mr. Tao Li, Chairman, President and Chief Executive Officer of China Green Agriculture. "We successfully implemented several growth initiatives resulting in the increase of our production capacity and geographic footprint, expanding our product line, and instilling brand awareness. At the end of June, we completed Phase I construction of our new research and development center, which consisted of one hundred sunlight greenhouses. We also launched 23 new liquid-based fertilizer products and added 43new distributors during the fiscal year 2010. To date, we have opened 15 directly-owned retail stores and selected 608 stores as 'China Green Agriculture Authorized Retailer' of our Jinong branded HA compound fertilizer products. In July, we closed on the acquisition of Beijing Gufeng Chemical Products Co., Ltd., which expanded our annual fertilizer production capacity from 55,000 metric tons to 355,000 metric tons. The facility extends our distribution network and broadens our product mix to meet the growing demand for both traditional and organic fertilizers in China, and is expected to contribute at least $10.6 million in net income in fiscal year 2011. With our strong working capital position, growing product offering and expanding R&D capabilities, we feel we are well positioned to gain market share and build on being one of the leading fertilizer producers in China."

Fiscal Year 2011 Guidance

For the fiscal year ending June 30, 2011, management expects

• Revenues of $150.5 million to $152.8 million
• Net income of $36.2 million to $36.8 million
• EPS of $1.35 to $1.37 based on 26.8 million weighted average shares.
• Current analyst EPS estimate is $1.43

For the first quarter ending September 30, 2010, management expects

• Revenues of $38.2 millionto$38.6 million
• Net income of $7.7 million to $8.0 million
• EPS of $0.29 to $0.30based on 26.8 million weighted average shares.
• Current analyst estimate is $0.35

This guidance reflects the anticipated strong sales resulting from the Company's increased production capacity from 55k metric tons to 355k metric tons.

Guidance Report:

"We are well positioned to capitalize on the market opportunities within China's fertilizer and agriculture industry. With a national distribution network, state-of-the-art research and development, automated production, and superior after-sales support, we have successfully built one of the premier organic compound fertilizer producers in China today,' stated Mr. Li. By leveraging our new facility, which will be on line in August of 2009, we feel China Green Agriculture is well positioned to gain further market share in China's green fertilizer market, which will translate into long term revenue and net income growth."

Full Year 2009 Guidance Ending June

 * CGA does not pay a standard United States tax rate.

Full Year 2009 EPS Guidance Ending June Adjusted for a Standard Tax Rate 

Guidance Report:

'Through our recent capacity upgrade to 15,000 metric tons per year, we expect to continue to grow. We anticipate continued strong performance from our greenhouse R&D center with strong growth toward the end of our fiscal year in fertilizer sales as we move into the peak growing season. With the completion of our new, 40,000 metric ton facility, which will come online in the first quarter of our 2010 fiscal year, we expect to maintain our expansion well into the future.'

Third Quarter 2009 Guidance Ending March

   Third Quarter 2009 EPS Guidance Ending March Adjusted for a Standard Tax Rate

Full Year 2009 Guidance Ending June

Full Year 2009 EPS Guidance Ending June Adjusted for a Standard Tax Rate

 * CGA does not pay a standard United States tax rate.

Source: PR Newswire (February 11, 2009)