Deyu Agriculture Corp. Announces Fiscal Year 2012 Results and Schedule Results Conference Call and Website

Deyu Agriculture Corp. Announces Fiscal Year 2012 Results and Schedule Results
                         Conference Call and Website

PR Newswire

BEIJING, March 28, 2013

BEIJING, March 28, 2013 /PRNewswire/ -- Deyu Agriculture Corp. (OTCBB: DEYU)
(the "Company"), a Shanxi Province, China-based vertically integrated
producer, processor, marketer and distributor of organic and other
agricultural products made from corn and grains, today announced its financial
results for the fiscal year ended December 31, 2012.

Fiscal Year 2012 Results:

  oNet revenue was $254.0 million compared to $261.6 million in 2011;
  oGross profit was $44.7 million, increasing $1.6 million or 3.8% from $43.1
    million in 2011;
  oGross margin increased to 17.6% for 2012 from 16.5% in 2011;
  oNet income available to common stockholders was $16.0 million compared to
    $17.3 million in 2011;
  oEarnings per diluted share was $1.30 on 12.6 million shares, compared to
    $1.42 on 12.5 million shares in 2011.

"In 2012, in order to move to a more sustainable growth approach, we reduced
our reliance on bank loans to supplement our working capital for fast growth
by decreasing our overall borrowings from banks from $14.4 million to $8.3
million," said Jianming Hao, Chief Executive Officer of the Company. "Even
with a slight decrease of revenue and net income, we are still very pleased
with our performance this year. We believe this strategic move significantly
reduced our financial risks and can benefit the Company and our shareholders
in the long term.

"We are glad to see that our recent acquisition, the Taizihu Group, which has
a diversified product line of grain products and large production capacity,
made a revenue contribution of $23.3 million. We are also currently working on
building strategic alliances with large and well-branded companies such as
Wen's Food Group Co., Ltd. ("WFG") and Beijing Suning Appliance Co., Ltd.
("Suning") to build our leading position in the industry," continued Mr. Hao.

"In October 2012 we elected a new President, Greg Chen, and increased our
Board with the additions of Greg and Mr. Jan Poulsen," Mr. Hao added. "With
Greg's experience in strategic development and operation management, and Jan's
20+ years of experience in both asset management and business development
within the food and beverage industries, we are confident that we can continue
to build on our progress."

Financial Results for the Fiscal Year Ended December 31, 2012

In fiscal year 2012, the Company's net revenue was $254.0 million, compared
with $261.6 million for 2011, a decrease of $7.6 million, or 2.9%. Net revenue
from the Corn Division for 2012 was $151.0 million, a decrease of $26.7
million, or approximately 15.0%, as compared to $177.7 million for 2011, which
was primarily due to the reduction of working capital for inventory
procurement supported by bank loans and bank notes. Net revenue from our Grain
Division for 2012 was $73.8 million, an increase of $33.3 million, or 82.2%,
as compared to $40.5 million for 2011. The increase was a combined result of
an increase of $23.3 million of sales revenue added by the Taizihu Group and
an increase of $18.2 million in sales revenue derived from newly retained
institutional clients in 2012, partially offset by a decrease of $8.2 million
in sales revenue in retail sales in supermarkets and conventional stores
caused by the reduction of the sales of unprofitable products in some stores.
Net revenue from our Bulk Trading Division for 2012 was $29.2 million, a
decrease of $14.2 million, or 32.7% as compared to $43.3 million for 2011.
This decrease was mainly attributable to the decrease of working capital
supported by bank loans and bank notes.

The Company's gross profit increased by $1.6 million, or 3.8%, from $43.1
million for 2011 to $44.7 million for 2012. The increase was a combined result
of a decrease of $6.1 million in the Corn Division, an increase of $9.6
million in the Grain Division and a decrease of $1.9 million in the Bulk
Trading Division. Our gross margin increased from 16.5% for 2011 to 17.6% for
2012. Gross margin for our Corn Division was 15.4% for 2012, down from 16.5%
for 2011, which was mainly attributable to the continuous increase in the
purchase price of raw corn and supplemental procurement from suppliers while
selling prices did not increase consistently. Gross margin for the Grain
Division increased from 24.9% for 2011 to 26.7% for 2012, an, which was mainly
a combined result of the increase of gross margin of retail sales caused by
reducing the sales of unprofitable products in some stores and the decrease of
gross margin derived from the addition of new product portfolios containing
mixed gross margins that targeted a wider scope of customers. Gross margin for
the Bulk Trading Division was 6.0% for 2012, down from 8.3% for 2011, which
was mainly attributable to the increase of percentage of sales for certain
types of grains with relatively lower gross margin.

The Company's operating expenses increased $4.3 million, or 20.1%, to $25.8
million for 2012 as compared to $21.5 million for 2011. This increase was
primarily a combined result of the increase of freight charges caused by the
rising costs of railway freight, advertisement expenses spent on brand
promotion and distribution expenses, expenses added by the Taizihu Group,
increased depreciation and amortization caused by newly-acquired buildings as
well as increased payroll and other expenses.

The Company had net income available to common stockholders of $16.0 million
for 2012, as compared to a net income of $17.3 million for 2011, a decrease of
$1.3 million, or 7.7%. Earnings per diluted share was $1.30 on 12.6 million
shares for 2012, compared to $1.42 on 12.5 million shares for 2011.

Recent Updates about the Company

In February 2012, the Company acquired the Taizihu Group, which has a
well-established grain product line of grain products under well recognized
brand names "Huichun" and "Taizihu". In June 2012, the Company formed a supply
relationship with WFG, one of the largest modern multi-industry and
trans-regional livestock enterprises, to which we will provide raw corn on a
non-exclusive basis. In August 2012, the Company reached an agreement with
Suning, one of the largest electrical and electronic appliance retailers in
China, to supply it with refined packaged grain goods valued at 18.4 million
USD for its commercial use.

In October 2012, the Company registered a subsidiary named Jilin Jinglong
Agriculture Development Limited in Jilin Province, one of the main corn and
grain producing areas in Chinatoexplore business in Northeast China, Also in
October 2012, the China National Cereals and Oils Committee selected the
Company's wholly-owned subsidiary, Detian Yu, as one of China's Top 100 Grain
and Oil Enterprises. And in December 2012, the Company received approximately
$209,000 (RMB 1.3 million) in subsidies from the Jinzhong city government,
which will be used to support Deyu's business operations as well as the
construction of its grains processing projects.

Business Outlook

"With the industrial and market resources we have established in the past few
years, we are growing to be a more integrated agriculture company with a
nationwide sales network covering manufacturers, grain traders, wholesalers,
distributors, institutional clients and retail stores in China," said Jianming
Hao. "In view of this goal we are now working on a digital platform to
integrate the resources in the whole supply chain, and to deliver value-added
services to farmers and our clients.

"In the future, our digital platform will not only provide our current clients
and farmers with enhanced services, but also facilitate the extension of
Deyu's value-added services to potential clients and farmers in different
regions. In addition, we believe the platform can serve as Deyu's vital
branding platform in the industry and marketplace. We believe we can compete
more effectively by utilizing the platform to turn some key barriers imposed
by the conventional approaches into strategic advantages," added Mr. Hao.

Conference Call

The Company will host a conference call on April 2, 2013 at 8:30 AM EDT to
discuss the Company's results for the fiscal year ended December 31, 2012.

To join the conference call, use the dial-in information below. When prompted,
ask for the "Deyu Agriculture Call" and/or be prepared to provide the
conference ID.

Date:                  4/2/2013
Time:                  8:30 AM EDT
Conference Line        877-407-9205
Dial-In (US):
International Dial-In: 201-689-8054
Conference ID#:        411546
Webcast Link:          http://www.investorcalendar.com/IC/CEPage.asp?ID=170716

Dial in at least 10 minutes before the call to ensure timely participation. A
Teleconference Replay will be available until 11:59 PM April 16, 2013. To
listen, please call 877-660-6853 within the United States or 201-612-7415 if
calling internationally.

Utilize the conference ID # for replay: 411546

About Deyu Agriculture Corp.

Deyu Agriculture Corp. is a vertically integrated producer, processor,
marketer and distributor of organic and other agricultural products made from
corn and grains operating in Shanxi Province in the People's Republic of
China. The Company has access of 20 years to over 109,000 acres of farmland in
Shanxi Province for breeding, cultivating, processing, warehousing and
distributing grain and corn products. We have a nationwide sales network
covering manufacturers, grain traders, wholesalers, distributors,
institutional clients and retail stores in China. Deyu Agriculture Corp.'s
facilities include sophisticated production lines and modern warehouses with a
total production capacity of over 105,000 tons for grain products, storage
capacity of over 100,000 tons and annual turnover of 700,000 tons for corn
products. The Company's website is located at www.deyuagri.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are based upon the current plans, estimates
and projections of Deyu Agriculture Corp.'s management and are subject to
risks and uncertainties, which could cause actual results to differ from the
forward looking statements. Such statements include, among others, those
concerning market and industry segment growth and demand and acceptance of new
and existing products; any projections of sales, earnings, revenue, margins or
other financial items; any statements of the plans, strategies and objectives
of management for future operations; any statements regarding future economic
conditions or performance; uncertainties related to conducting business in
China, as well as all assumptions, expectations, predictions, intentions or
beliefs about future events. Therefore, you should not place undue reliance on
these forward-looking statements. The following factors, among others, could
cause actual results to differ from those set forth in the forward-looking
statements: business conditions in China, general economic conditions;
geopolitical events and regulatory changes, availability of capital, changes
in the agricultural industry, the Company's ability to maintain its
competitive position. Additional Information regarding risks can be found in
the Company's quarterly and annual reports filed with the U.S. Securities and
Exchange Commission at www.sec.gov.

Company Contact:

Mr. Greg Chen, President
Deyu Agriculture Corp.
Tel: +1-646-499-5475
Email: gregchen@china-deyu.com

Ms. Amy He, Chief Financial Officer
Deyu Agriculture Corp.
Tel: +86-10-8273-2870 x8522
Email: amy@china-deyu.com



Financial Tables



DEYU AGRICULTURE CORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                                                                                December 31,   December 31,
                                                                                                2012           2011
Assets
Current Assets
Cash and cash equivalents                                                                       $ 4,937,279    $ 8,741,703
Restricted cash                                                                                   815,348        1,850,999
Accounts receivable, net                                                                          33,991,288     36,167,136
Due from related parties                                                                          397,214        587,108
Inventory                                                                                         30,322,191     20,314,090
Advance to supplier                                                                               6,145,840      7,233,371
Prepaid expenses                                                                                  1,453,184      391,537
Assets held for sale                                                                              -              1,634,274
Other current assets                                                                              340,456        2,204,934
Total Current Assets                                                                              78,402,800     79,125,152
Property, plant, and equipment, net                                                               19,442,599     12,355,946
Construction-in-progress                                                                          2,614,491      -
Long-term Investment                                                                              58,426         -
Other assets                                                                                      -              727,535
Intangible assets, net                                                                            13,389,075     10,651,844
Total Assets                                                                                    $ 113,907,391  $ 102,860,477
Liabilities and Equity
Current Liabilities
Short-term loan                                                                                 $ 8,323,623    $ 14,413,480
Accounts payable                                                                                  5,179,729      1,833,190
Note payables                                                                                     -              1,588,840
Advance from customers                                                                            2,249,282      8,488,272
Accrued expenses                                                                                  1,506,776      1,149,205
Tax payable                                                                                       305,712        -
Preferred stock dividends payable                                                                 229,171        219,721
Due to related parties                                                                            8,933,843      5,445,115
Other current liabilities                                                                         720,862        583,196
TotalCurrentLiabilities    27,448,998     33,721,019
Equity
Series A convertible preferred stock, $.001 par value,
 10,000,000 shares authorized,2,039,970 and                                                   2,040          1,997
 1,997,467 shares outstanding, respectively
Common stock, $.001 par value; 75,000,000 shares
 authorized, 10,658,266 and 10,564,774 shares outstanding,                                      10,658         10,565
 respectively
Additional paid-in capital                                                                        20,781,439     20,367,138
Other comprehensive income                                                                        5,737,793      4,831,353
Retained earnings                                                                                 59,500,134     43,491,465
Total Stockholders' Equity                                                                        86,032,064     68,702,518
Noncontrolling Interests                                                                          426,329        436,940
Total Equity                                                                                      86,458,393     69,139,458
Total Liabilities and Equity                                                                    $ 113,907,391  $ 102,860,477



DEYU AGRICULTURE CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                            For The Years Ended
                                            December 31,
                                            2012             2011
Net revenue                                 $ 254,046,098    $ 261,576,666
Cost of goods sold                            (209,325,445)    (218,480,009)
Gross Profit                                  44,720,653       43,096,657
Selling expenses                              (16,153,096)     (13,231,094)
General and administrative expenses           (9,619,036)      (8,222,182)
Total Operating Expenses                      (25,772,132)     (21,453,276)
Operating income                              18,948,521       21,643,381
Interest income                               37,846           42,159
Interest expense                              (1,477,304)      (805,601)
Non-operating income                          665,270          (180,294)
Total Other Expenses                          (774,188)        (943,736)
Income from continuing operations before      18,174,333       20,699,645
income taxes
Income taxes                                  (1,765,514)      (184,384)
Income from continuing operations             16,408,819       20,515,261
Loss from discontinued operations, net of     -                (3,891,830)
income taxes
Net income                                    16,408,819       16,623,431
Net loss attributable to noncontrolling
interests:
 Net loss from continuing operations         46,599           38,673
Net loss from discontinued operations         -                1,101,255
Total net loss attributable to                46,599           1,139,928
noncontrolling interests
Net income attributable to Deyu               16,455,418       17,763,359
Agriculture Corp.
Preferred stock dividends                     (446,748)        (427,917)
Net income available to common                16,008,670       17,335,442
stockholders
Foreign currency translation (loss) gain      910,907          2,751,687
Comprehensive income                          16,919,577       20,087,129
Other comprehensive income attributable to    (4,467)          (130,653)
noncontrolling interests
Comprehensive income attributable to Deyu   $ 16,915,110     $ 19,956,476
Agriculture Corp.
Amounts attributable to common
stockholders:
 Net income from continuing operations,    $ 16,008,670     $ 20,126,017
net of income taxes
Discontinued operations, net of income        -                (2,790,575)
taxes
Net income attributable to common           $ 16,008,670     $ 17,335,442
stockholders
Net income attributable to common
stockholders per share - basic:
 Income from continuing operations         $ 1.51           $ 1.91
Loss from discontinuing operations            -                (0.27)
Net income attributable to common           $ 1.51           $ 1.64
stockholders
Net income attributable to common
stockholders per share - diluted:
 Income from continuing operations         $ 1.30           $ 1.64
Loss from discontinuing operations            -                (0.22)
Net income attributable to common           $ 1.30           $ 1.42
stockholders
Weighted average number of common shares      10,598,603       10,522,432
outstanding - basic
Weighted average number of common shares      12,614,108       12,497,164
outstanding - diluted



DEYU AGRICULTURE CORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                               For The Years Ended
                                               December 31,
                                               2012            2011
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income available to common              $ 16,008,670    $ 17,335,442
stockholders
 Loss from discontinued operations
attributable to                                  -               2,790,575
 Deyu Agriculture Corp.
 Adjustments to reconcile net income to net
cash provided
 by operating activities:
Depreciation &amortization                       2,297,082       979,297
Allowance for doubtful accounts                  -               -
Reserve for inventory valuation                  -               -
Loss on disposal of fixed assets                 577             -
Share-based compensation                         120,853         428,702
Preferred stock dividends accrued                446,748         219,721
Dividends paid with Series A preferred stock     -               212,420
Common stocks issued for services                114,400         78,000
Grain on bargain purchase                        (499,079)       -
Deferred income tax expense (benefit)            878,746         184,384
Noncontrolling interests                         (46,599)        (38,673)
Decrease (increase) in current assets:
Accounts receivable                              2,649,036       (23,824,017)
Related-parties trade receivable                 226,755         (494,752)
Inventories                                      (8,383,187)     (2,873,705)
Advance to suppliers                             1,987,857       (5,840,601)
Prepaid expense and other current assets         (40,331)        (539,339)
Increase (decrease) in liabilities:
Accounts payable                                 2,967,217       1,584,038
Advance from customers                           (6,471,286)     1,677,638
Accrued expense and other liabilities            297,336         346,492
Net cash provided by (used in) operating
activities of                                    12,554,795      (7,774,378)
continuing operations
Net cash used in operating activities of         -               (3,858,325)
discontinued operations
Net cash provided by (used in) operating         12,554,795      (11,632,703)
activities
CASH FLOWS FROM INVESTING ACTIVITIES
 Consideration paid for acquisition            (5,501,046)     -
 Construction and remodeling of factory and    (900,487)       (109,856)
warehouses
 Purchase of machinery and equipment           (128,383)       (3,759,859)
 Advances to related parties                   (33,294)        -
 Cash held by the Taizihu Group at             20,272          -
acquisition date
 Repayment from (loan to) related parties      -               (76,995)
 Prepayments for acquisition of farmland       -               (76,715)
use rights
Purchase of software and other assets            -               (8,902)
 Net cash used in investing activities of      (6,542,938)     (4,032,327)
continuing operations
Net cash used in investing activities of         -               (2,476,523)
discontinued operations
Net cash used in investing activities            (6,542,938)     (6,508,850)
CASH FLOWS FROM FINANCING ACTIVITIES
 Net (repayments of) proceeds from
short-term loans from                            (12,658,509)    11,349,219
 bank and others
 Net (repayments of) proceeds from
short-term bank                                  (1,585,087)     1,547,269
 acceptance notes
 Cash released from restriction
(restricted) for credit line of                  1,281,894       (1,802,568)
 bank acceptance notes
 Net proceeds from short-term loans from       3,312,931       3,101,839
related parties
 Payment of preferred dividends                (267,721)       (243,678)
 Proceeds from capital contributions           31,702          464,180
 Release of cash restricted held at a trust    -               125,560
account
Net proceeds from short-term loan from others    -               952
 Net cash (used in) provided by financing
activities of                                    (9,884,790)     14,542,773
 continuing operations
Net cash provided by financing activities of     -               5,918,988
discontinued operations
Net cash (used in) provided by financing         (9,884,790)     20,461,761
activities
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND
CASH                                             68,509          352,429
EQUIVALENTS
NET (DECREASE) INCREASE IN CASH & CASH           (3,804,424)     2,672,637
EQUIVALENTS
NET DECREASE IN CASH & CASH EQUIVALENTS FROM     -               (403,208)
DISCONTINUED OPERATIONS
NET (DECREASE) INCREASE IN CASH & CASH
EQUIVALENTS                                      (3,804,424)     3,075,845
FROM CONTINUING OPERATIONS
CASH & CASH EQUIVALENTS, BEGINNING BALANCE       8,741,703       5,665,858
CASH & CASH EQUIVALENTS, ENDING BALANCE        $ 4,937,279     $ 8,741,703
SUPPLEMENTAL DISCLOSURES:
Income tax paid                                $ 678,420       $ 62
Interest paid                                  $ 1,815,269     $ 809,448
NONCASH INVESTING AND FINANCING ACTIVITIES:
Construction completed and transferred to
property, plant,                               $ -             $ 5,914,602
and equipment
Construction completed and transferred to      $ -             $ 2,320,904
land use rights
Obtained certificates of farmland use rights   $ -             $ 8,221,569

Note: Please refer to the Company's annual report on Form 10-K for the year
ended December 31, 2012 for additional notes, which are an integral part of
these consolidated financial statements.

SOURCE Deyu Agriculture Corp.

Website: http://www.deyuagri.com
Website: http://www.investorcalendar.com/IC/CEPage.asp?ID=170716