China Green Agriculture, Inc. Reports First Quarter Fiscal Year 2013 Financial Results, Reaffirms the Fiscal Year 2013 Guidance,

China Green Agriculture, Inc. Reports First Quarter Fiscal Year 2013 Financial
  Results, Reaffirms the Fiscal Year 2013 Guidance, and Provides the Second
                      Quarter Fiscal Year 2013 Guidance

PR Newswire

XI'AN, China, Nov. 20, 2012

XI'AN,China, Nov. 20, 2012 /PRNewswire-FirstCall/ --

  oTotal net sales for the three months ended September 30, 2012 decreased
    25.6% to$39.5 million, net income decreased 17.4% to$8.9 million with
    EPS of$0.32
  oCompany Reaffirms the Fiscal Year 2013 Guidance: Revenue, Net Income and
    EPS of at least$238.0 million,$46.2 million, and$1.68, respectively
  oCompany Provides the Second Quarter Fiscal Year 2013 Guidance: Revenue,
    Net Income and EPS of at least $47.2 million, $8.0 million, and $0.29,
    respectively
  oManagement to Host Earnings Conference Call at 8:00 am EST, November 20,
    2012

China Green Agriculture, Inc.(NYSE: CGA; "China Green Agriculture" 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 inChina, today announced its
financial results for the three months ended September 30, 2012.

Financial Summary

First Quarter FY 2013 Results (USD)
(Three months ended September 30, 2012)
                                           Q1 FY2013      Q1 FY2012     CHANGE
Net Sales                                  $39.5 million  $53.1 million -25.6%
Gross Profit                               $16.9 million  $18.9 million -10.4%
Net Income                                 $8.9 million $10.7 million -17.4%
EPS (Basic and Fully Diluted)              $0.32          $0.40         -19.0%
Basic Weighted Average Shares Outstanding  27.5 million   26.9 million  +2.3%
Fully Diluted Weighted Average Shares      27.5 million   26.9 million  +2.3%
Outstanding

"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."

First Quarter of FY2013 Results of Operations

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. This decrease was largely due to the
decrease in Gufeng's net sales.

For the three months ended September 30, 2012, Jinong's net sales increased
$5.6 million, or 25.2%, to $27.9 million from $22.2 million for the three
months ended September 30, 2011. This increase was mainly attributable to the
greater sales of humic acid fertilizer products including our liquid and
powder fertilizers during this period as a result of our increased
distributors and the aggressive marketing strategy.

For the three months ended September 30, 2012, net sales at Gufeng were $10.9
million, a decrease of $18.7 million, or 63.1%, from $29.6 million for the
three months ended September 30, 2011. The fiscal quarter ended September 30,
2012 fell in the "export window" in which no special tariff tax applied,
however, due to the lower demand on Nitrogen-Phosphorous elemented compound
fertilizer by importing countries which is arising from the backlog of their
imported compound fertilizers in previous quarters, which also led to
lower-than-before profit margin over the export contracts, Gufeng had no
export contract in the quarter ended September 30, 2012. Despite of that,
Gufeng has been expanding and penetrating the domestic market particularly
since the fiscal quarter ended March 31, 2012, during which period no revenue
was generated from fertilizer exportation either due to special tariff tax
levied by China authority or due to weak demand by importing countries. Net
domestic sales at Gufeng for the three months ended September 30, 2012 was
$10.9 million, an increase of $1.8 million, or 19.1%, from $9.2 million for
the same period in 2011.

Jintai's net sales decreased by $1.2 million, or 100.0%, to zero for the three
months ended September 30, 2012 from $1.2 million for the same period in 2011.
The decrease was attributable to Jintai's relocation, which commenced on March
1, 2012 and is still on going. Therefore, Jintai did not generate any sales
revenue since March 1, 2012.

For the three months ended September 30, 2012, Yuxing's net sales were $0.7
million, an increase of $0.7 million, from $0.05 million during the three
months ended September 30, 2011. The increase was mainly attributable to the
strong sales of Yuxing's top-grade flowers and the proxy sales of certain
inventory from Jintai.

Total cost of goods sold for the three months ended September 30, 2012 was
$22.6 million, a decrease of $11.6 million, or 34.0%, from $34.2 million for
the three months ended September 30, 2011. This decrease was proportional to
the decrease in sales, which was mainly due to Gufeng's decreased exported
sales for the three months ended September 30, 2012.

Cost of goods sold by Jinong for the three months ended September 30, 2012 was
$12.8 million, an increase of $4.7 million, or 58.3%, from $8.1 million for
the same period in 2011. The increase was primarily attributable to (i) the
110% increase in the cost of raw materials and (ii) 25.2% increases in
packaging materials as a result of our strong sales of fertilizer products.

Cost of goods sold by Gufeng for the three months ended September 30, 2012 was
$9.2 million, a decrease of $16.1 million, or 63.6%, from $25.3 million for
the same period in 2011. The decrease was proportional to Gufeng's sales for
the three months ended September 30, 2012.

Cost of goods sold by Jintai for the three months ended September 30, 2012 was
zero, comparing to $0.7 million for fiscal year 2011 because Jintai's had no
operation during the past quarter as a result of ongoing relocation.

For three months ended September 30, 2012, cost of goods sold by Yuxing was
$0.6 million, an increase of $0.5 million, or 743.3%, from $0.07 million for
the three months ended September 30, 2011. The increase was proportional to
Yuxing's sales for the three months ended September 30, 2012.

Total gross profit for the three months ended September 30, 2012 decreased by
$2.0 million, or 10.4%, to $16.9 million, as compared to $18.9 million for the
three months ended September 30, 2011. Gross profit margin was approximately
42.9% and 35.6% for the three months ended September 30, 2012 and 2011,
respectively.

Our selling expenses consisted primarily of salaries of sales personnel,
advertising and promotion expenses, freight-out costs and related
compensation. Selling expenses were $3.0 million, or 7.7%, of net sales for
the three months ended September 30, 2012, as compared to $2.5 million, or
4.7% of net sales for the three months ended September 30, 2011, an increase
of $0.5 million, or 21.8%. The selling expenses of Gufeng were $0.2 million,
or 2.1% of Gufeng's net sales for the three months ended September 30, 2012,
as compared to $0.8 million, or 2.8% of Gufeng's net sales for the three
months ended September 30, 2011. The selling expenses of Jinong for the three
months ended September 30, 2012 were $2.8 million, or 10.0% of Jinong's net
sales, as compared to selling expenses of $1.6 million, or 7.4% of Jinong's
net sales in the same period of2011. Most of this increase was due to
Jinong's expanded marketing efforts and the increase in shipping costs.

General and administrative expenses consisted primarily of related salaries,
rental expenses, business development, depreciation and travel expenses
incurred by our general and administrative departments and legal and
professional expenses including expenses incurred and accrued for certain
litigations. General and administrative expenses were $2.9 million, or 7.3% of
net sales, for the three months ended September 30, 2012, as compared to $3.1
million, or 5.9%, of net sales for the three months ended September 30 2011, a
decrease of $0.3 million, or 8.4%. This decrease was primarily the result of
the decrease of legal fees incurred in connection with certain litigations.

Total operating expenses as a percentage of sales for the first quarter of
fiscal year 2013 was 15.0% compared to 10.6% for the same period of last year.

Operating income for the first quarter of fiscal year 2013 was $11.0 million,
decreased by 17.0% from $13.3 million in the first quarter of fiscal year
2012. Operating margin for the first quarter of fiscal year 2013 was 27.9%,
compared to 25.0% in the same quarter of fiscal year 2012.

Net income for the three months ended September 30, 2012 was $8.9 million, a
decrease of $1.9 million, or 17.4%, compared to $10.7 million, for the three
months ended September 30, 2011. The decrease was attributable to the decrease
in gross profit, primarily Gufeng's gross profit. Net income as a percentage
of total net sales was approximately 22.4% and 20.2 % for the three months
ended September 30, 2012 and 2011, respectively.

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, based on
diluted weighted average shares outstanding of 27.5 million and 26.9 million,
respectively.

Financial Condition

As of September 30, 2012, cash and cash equivalents were $74.2 million, an
increase of $2.2 million or 3.1%, from $72.0 million as of June 30, 2012. The
Company had $14.5 million in short-term loans as of September 30, 2012, an
increase of 0.5 million, or 3.8% from 13.9 million as of June 30, 2012. Net
accounts receivable stood at $67.7 million as of September 30, 2012, as
compared to $62.0 million as of June 30, 2012, an increase of $5.6 million or
9.2%, which is mainly attributable to the implementation of 180 days credit
policy. In order to respond to the cash flow shortage caused by the tightening
financing encountered by some of our distributors, the company launched such a
policy since the third quarter of fiscal year 2012 enabling such distributors
take full advantage of the 180-day credit terms. For the first quarter ended
September 30, 2012, cash flow provided by operating activities was $6.4
million, an increase of $8.4 million, or 418.0% from $2.0 million, as cash
flow used in operating activities for the same period in 2011. The increase
was mainly attributable to the significantly decreased inventories by 99%,
which contributed to the 143.9% cash flow increase comparing to the same
period in 2011.

Capital Expenditure

For the first quarter ended September 30, 2012, the capital expenditure stood
at approximately $4.6 million, an increase of $3.7 million, or 399.4% from
$0.9 million for the three months ended September 30, 2011. The increase was
attributable to the purchases of plant, property and equipment, and increase
in construction in progress.

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.

Conference Call

The Company will hold a conference call at 8:00 a.m. EST on Tuesday, November
20, 2012. Any interested participants are welcome to join in the call by
following the dial-in details as set out below. When prompted by the operator,
please indicate "China Green Agriculture's First Quarter Fiscal Year 2013
Financial Results" to join the call.

Event:                         CGA First Quarter Fiscal Year 2013 Conference
                                 Call
Date:                           November 20, 2012
Time:                       8:00 a.m. EST
US Dial In:           1- 877-407-8033
Int'l Dial In:                  1- 201-689-8033
Conference ID#:                  404065

This conference call will be broadcast live over the Internet. To listen to
the live webcast, go tohttp://www.ir-site.com/cgagri/events.asp. Investors
can also access the webcast athttp://www.InvestorCalendar.com.

A playback will be available through December 4, 2012. To listen, please call
1- 877-660-6853 within the United States or 1-201-612-7415 when calling
internationally.

About China Green Agriculture, Inc.

The Company mainly produces and distributes humic acid-based compound
fertilizers, other varieties of compound fertilizers and agricultural products
through its wholly-owned subsidiaries, i.e.: Shaanxi TechTeam Jinong Humic
Acid Product Co., Ltd. ("Jinong"),Beijing Gufeng Chemical Products Co., Ltd.,
a wholly-owned subsidiary of Jinong in the PRC ("Gufeng"), Xi'anJintai
Agriculture Technology Development Company("Jintai") and Xi'anHu County
Yuxing Agriculture Technology Development Co., Ltd.("Yuxing"). Jinong
produced and sold 129 different kinds of fertilizer products as ofSeptember
30, 2012, all of which are certified by the PRC government as Green Food
Production Materials, as stated by theChina Green Food Development Center.
Jinong currently markets its fertilizer products to private wholesalers and
retailers of agricultural farm products in 22 provinces, four autonomous
regions, and three central-government-controlled municipalities in the PRC.
Jinong had 779 distributors inChinaas ofSeptember 30, 2012. Gufeng, and its
wholly-owned subsidiary,Beijing Tianjuyuan Fertilizer Co., Ltd.,
areBeijing-based producers of compound fertilizer, blended fertilizer,
organic compound fertilizer, and mixed organic-inorganic compound fertilizer.
As ofSeptember 30, 2012, Gufeng produced and sold 317 different kinds of
fertilizer products, and had 187 distributors inChina. For more information,
visithttp://www.cgagri.com. The Company routinely posts important information
on its website.

Safe Harbor Statement

This press release contains forward-looking statements concerning the
Company's business, products and financial results. The Company's actual
results may differ materially from those anticipated in the forward-looking
statements depending on a number of risk factors including, but not limited
to, the following: general economic, business and environment conditions,
development, shipment, market acceptance, additional competition from existing
and new competitors, changes in technology, the execution of its ten-year
growth plan and various other factors beyond the Company's control. All
forward-looking statements are expressly qualified in their entirety by this
Safe Harbor Statement and the risk factors detailed in the Company's reports
filed with the SEC. China Green Agriculture undertakes no duty to revise or
update any forward-looking statements to reflect events or circumstances after
the date of this release, except as required by applicable law or regulation.

For more information, please contact:
China Green Agriculture, Inc.
Ms. Jane Zuo (English and Chinese)
Investor Relations Manager
Tel:  +86-186-1842-8899
Email:jane.zuo@cgagri.com

SOURCE China Green Agriculture, Inc.

Website: http://www.cgagri.com
Website: http://www.ir-site.com/cgagri/events.asp
Website: http://www.InvestorCalendar.com
 
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