Green Star Reports Third Quarter 2012 Financial Results,

Green Star Reports Third Quarter 2012 Financial Results, Appoints New
Directors, Manager of Business Development and Announces Dividend
TORONTO, ONTARIO -- (Marketwire) -- 11/29/12 -- China Green Star
Agricultural Corporation (TSX VENTURE:GRE) ("Green Star" or the
"Company"), a processer of agricultural products such as canned
fruits and vegetables for distribution to international and domestic
markets, today announced financial results for the three and nine
months period ended September 30, 2012.  

Q3 2012 Key Financial Metrics                                               
In thousands                                                                
 of Cdn$                                                                    
 except share                                                               
 data and EPS    Q3 2012   Q3 2011    Change   YTD 2012  YTD 2011    Change 
Key Operating                                                               
 Results       Unaudited Unaudited Unaudited  Unaudited Unaudited Unaudited 
 Total revenue $   8,474 $   9,559       -11% $  24,477 $  24,387         - 
 Gross profit  $   3,123 $   3,821       -18% $  10,169 $   9,510         7%
 EBITDA(1)     $   2,845 $   3,221       -12% $   9,432 $   7,207        31%
 Net profit                                                                 
  income tax   $   2,649 $   3,055       -13% $   8,848 $   6,714        32%
 Profit for                                                                 
  the period   $   1,947 $   2,229       -12% $   6,526 $   4,654        40%
 EPS - basic   $    0.13 $    0.15       -13% $    0.43 $    0.34        27%
 EPS -                                                                      
  diluted(2)   $    0.06 $    0.07       -14% $    0.21 $    0.16        31%
                Sep. 30,  Dec. 31,                                          
                    2012      2011    Change                                
Key Balance                                                                 
 Highlights    Unaudited   Audited Unaudited                                
 Cash and cash                                                              
  equivalents  $   9,382 $   7,602        23%                               
 Total assets  $  41,021 $  36,761        12%                               
  Liabilities  $   5,042 $   6,491       -22%                               
  Equity       $  35,979 $  30,270        19%                               
  capital per                                                               
  diluted      $    0.70 $    0.65       7.7%                               
 Net assets                                                                 
  per share,                                                                
  diluted      $    1.16 $    0.97      19.6%                               
1 Earnings before interest, taxes, depreciation and amortization (EBITDA) is
  often used as a measure of financial performance. However, EBITDA is a not
  a term that has specific meaning in accordance with IFRS, and may be      
  calculated differently by other companies. EBITDA excludes cost associated
  with the reverse taken over transaction completed on May 31, 2011 (the    
2 Includes the effect of the 16,069,892 special warrants granted on         
  completion of the RTO. Each special warrant is convertible into one common
  share for no additional consideration.                                    

"Our third quarter 2012 results demonstrate the successful execution
of our business strategy to increase our fresh and canned food sales
to local Chinese markets," said Guan Lianyun, Chairman and CEO of
Green Star. "We are also making progress towards developing and
marketing our own brand of canned products for local and export
consumers. With our significant cash balance of $9.4 Million, and our
average quarterly net income of approximately $2.0 Million, we are
introducing a dividend policy starting in 2013 of distributing $0.01
per share, per quarter ($0.04 per share annually) to our common
shareholders. We also remain on track and committed to investing in
future expansion plans which include the long term leasing of
additional agricultural lands as demonstrated by the 30 year lease of
mandarin orange orchards and bamboo plantations in Q3, that expanded
our land lease holdings by 63.6%, and the planned acquisition of a
raw tomato pulp producer to secure our own raw tomato pulp supply." 
Q3 2012 Operational and Financial Highlights  

--  Revenue of $8.5 million, a decline of 11.4% over $9.6 million in Q3 2011
--  EBITDA of $2.8 million, down 11.5% from $3.2 million in Q3 2011 
--  Net profit of $2.0 million, a decline of 12.5% from $2.2 million in Q3
--  Signed additional farming land lease agreements to increase farming land
    base by 63.6% to approximately 1,483 acres 
--  Granted 300,000 stock options to directors and management during the
--  Introduced a dividend policy of distributing $0.01 ($0.04 annually) per
    share, per quarter to holders of the Company's common shares,
    representing an estimated annualized yield of 8.5% based on the closing
    price of GRE shares on the TSX.V on November 28, 2012 
--  Had two Canadian food industry veterans join the Board of Directors 
--  Appointed a Canada based, food industry executive as manager of Business

Review of Financial Results 
Green Star reported its consolidated revenue of approximately $8.5
million for Q3 2012, down approximately 11.4% from $9.6 million for
Q3 2011. The revenue decline is the combined effect of the overall
decrease in selling prices and sales quantity for canned products
caused by market demand fluctuation and a slight decrease of sales
quantity in agricultural produce.  
On a nine month basis, the Company generated consolidated revenue of
approximately $24.5 million to September 30, 2012, up 0.4% from
approximately $24.4 million to September 30, 2011. The revenue growth
on a nine-month basis was a combined result of increased sales of
canned bamboo shoots and lower sales of other canned products within
the canned food division in 2012, as well as slightly higher average
selling prices.  
Gross profit declined to $3.1 million in Q3 2012 from $3.8 million in
Q3 2011, a decline of 18.3%. Gross profit as a percentage of sales
declined to 36.8% in Q3 2012, compared to 40% for Q3 2011, with
improvements for the agricultural produce division and a decline for
the canned foods division. The agricultural produce division's gross
profit improved to 69% in Q3 2012 compared to 65% in Q3 2011 and was
the result of a fluctuation of labor and land maintenance costs. The
canned food division's gross profit margin declined to 31.9% in Q3
2012 compared to 36.3% in Q3 2011, a reflection of the combined
effects of lower selling prices and the lowering of economies of
scale due to reduced production quantities.  
For the nine-month period ended September 30, 2012, gross profit
increased to approximately $10.2 million from $9.5 million for the
comparative period in 2011, an increase of 6.9%. 
Green Star generated net profits of approximately $2.0 million in Q3
2012, down 12.5% from $2.2 million in Q3 2011. The Company's basic
and diluted earnings per share were $0.13 and $0.06 respectively in
Q3 2012, compared to $0.15 and 0.07 respectively in Q3 2011. On a
year-to-date basis, Green Star generated net profits of approximately
$6.5 million for the nine months ended September 30, 2012 compared to
net profits of $4.7 million for the nine months ended September 30,
2011, which included approximately $1.2 million of IPO costs.  
At September 30, 2012, Green Star held cash of approximately $9.4
million and working capital of $21.8 million compared to $7.6 million
and $20.4 million, respectively, as at December 31, 2011. The
increase in both cash and working capital was a result of improved
operating results. 
Appointment of Directors, Audit Committee Chair, and Manager of
Business Development 
On November 27, 2012, Green Star's board of directors made the
following appointments (subject to TSXV approval): 1) to appoint Mr.
Bryan Knebel and Mr. Frank Galati as two new independent directors of
the Corporation; 2) to appoint Mr. Robert G. Macdonald as the
Business Development Manager of Green Star on a part-time basis. Mr.
Robert G. Macdonald has joined Green Star to guide its Canadian
business development strategy in Canada and communicate same to
Canadian investors and the public markets; 3) to replace Mr. Ye
HuoYun on the Company's audit committee and appoint Mr. Bryan Knebel
as Chairman of the Audit Committee. Mr. Michael Newman has stepped
down as the Chairman of Green Star's audit committee but remains as
one of its four independent directors. 
Mr. Bryan Knebel was for the past 8 years the Chief Financial Officer
of The Skor Food Group Inc. (acquired in 2011 by Group Colabor) and
prior to that Chief Financial Officer of Lombardi Media Corporation
and several other TSX-Venture listed public companies over a span of
15 years. Mr. Knebel started his financial career with the
Toronto-Dominion Bank in commercial banking. He has extensive
knowledge and experience in developing internal and external growth
strategies together with arranging debt and equity financing of
growth oriented TSX-Venture listed public companies.  
Mr. Frank Galati was President and Chief Executive Officer of
Destination Products International Ltd., a spin-off of Cott
Corporation and a company focused on the marketing and distribution
of frozen and fresh meal solutions to the North American Grocery and
Mass Merchandising channels. The company increased revenues from $12
million to over $100 million and was named one of Canada's Fifty Best
Managed Companies by The Financial Post. Prior to that, Frank held
several senior financial roles with Cott Corporation and Maple Leaf
Foods, including CFO of Cott's US business, a subsidiary with revenue
in excess of $1 billion and CFO for Maple Leaf Foods Grocery
Division, a company with over $300 million in revenue in canned and
frozen food products. Today, Mr. Galati is Managing Partner of
Bedford Group's resource practice, advising resource companies on
talent and leadership issues; and has sat on various advisory boards
to food and health supplement companies focused on growth in US and
Canadian markets.  
Mr. Robert G. Macdonald was the Founder, President and CEO of TSX
listed Afton Food Group Ltd. ("Afton") for sixteen years, a company
established as a franchising consolidator in the Quick Service
Restaurant industry with such brands as 241 Pizza and Robin`s Donuts.
Afton grew from a standing start to more than $150 million in system
sales and $25 million in annual revenues and was listed on the TSX.
At the present time, Mr. Macdonald is the Chairman and Managing
Director of AgriFood Capital Corporation, an emerging private company
that is involved in investment banking in the food and agricultural
industries in Canada. Mr. Macdonald has also served on the board of
directors and audit committees of several other TSX.V listed
"In spite of softening demand in China, we continue to achieve strong
financial results and look forward to buildings on that success in
the next term," said Mr. Guan, CEO. "Also, with the additional
farming land lease agreements signed in the third quarter of 2012, we
are increasing our land base by 63.6% effective January 1, 2013 which
will immediately positively impact our agricultural produce revenues
commencing fiscal 2013."  
About Green Star  
Green Star operates two main divisions, agricultural and food
processing. The agricultural division is involved in the cultivation
and harvesting of agricultural products such as fresh fruit and
vegetables, for sale either directly as fresh fruit and vegetables or
canned, and sold overseas and domestically. The food processing
division is primarily involved in the manufacturing of canned food
which includes canned tomato paste, canned boiled bamboo shoots,
canned oranges, canned peaches and various other types of fruits and
vegetables. Currently, all of the Corporation's canned tomato paste
is exported to countries such as Russia, Lebanon, Dubai, Philippines,
Germany, Romania and several African countries. 30% of the canned
tomato paste is exported directly to end customers, while the balance
of 70% is exported to ultimate customers through exporting agents. 
The Company has been operating for over 18 years, and has focused on
maintaining product and reputational excellence and a high standard
of food quality, through the application of science and technology in
production, quality control and assurance, business operations and
management. Key assets include a well established management team,
modern production facilities, and a close partnership with local
Green Star is listed on the TSX Venture Exchange under the symbol
"GRE". For more information on the Company, please visit our web site
Caution Regarding Forward-Looking Information: 
Certain statements in this press release may constitute "forward
looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward looking statements. When used in this press
release, such statements may use such words as "may", "will",
"expect", "believe", "plan" and other similar terminology. These
statements reflect management's current expectations regarding future
events and operating performance and speak only as of the date of
this press release. Forward looking information in this press release
includes managements plan to develop and market the Company's own
brand, implementing its new dividend policy, future expansion plan
including acquisition of additional agricultural land and acquisition
of tomato pulp producer, management outlook on continued success in
2012 and anticipated increase in production capacity in future years.
These forward looking statements involve a number of risks and
uncertainties. Some of the factors that could cause actual results to
differ materially from those expressed in or underlying such forward
looking statements are the effects of, as well as changes in:
international, national and local business and economic conditions;
political or economic instability in the Company's markets;
competition; legislation and governmental regulation; and accounting
policies and practices. The foregoing list of factors is not
exhaustive. Please see the Company's annual MD&A dated April 30,
2012, available on, for a more detailed description of
the risk factors. The Company undertakes no obligation to update
publicly or revise any forward looking information, whether a result
of new information, future results or otherwise, except as required
by law.  
Neither the TSX Venture Exchange nor its Regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
China Green Star Agricultural Corporation
Michael Lam
Chief Financial Officer
(416) 849-3858 
China Green Star Agricultural Corporation
Robert G. Macdonald
Manager of Business Development
(416) 849-3858
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