Le Gaga Fourth Quarter and Fiscal Year 2013 Earnings Release

Le Gaga Fourth Quarter and Fiscal Year 2013 Earnings Release

HONG KONG, Sept. 17, 2013 (GLOBE NEWSWIRE) -- Le Gaga Holdings Limited
(Nasdaq:GAGA) ("Le Gaga" or "the Company"), a leading greenhouse vegetable
producer in China, today announced its financial results for the fourth fiscal
quarter and fiscal year ended June 30, 2013.^1

Highlights of the Fourth Quarter and Fiscal Year Ended June 30, 2013^2

  *Revenue increased by 22.6% to RMB151.1 million (US$24.6 million) for Q4
    FY2013, compared to RMB123.2 million a year ago. Revenue increased by
    11.0% to RMB576.3 million (US$93.9 million) in FY2013, compared to
    RMB519.3 million a year ago.
    
  *Loss for the period was RMB13.0 million (US$2.1 million) for Q4 FY2013,
    compared to a loss of RMB8.5 million a year ago.Profit for the year
    increased by 8.1% to RMB153.1 million (US$25.0 million), compared to a
    profit of RMB141.7 million a year ago.
    
  *Adjusted profit for the period^3 (non-IFRS measure) decreased by 9.0% to
    RMB31.6 million (US$5.1 million) for Q4 FY2013, compared to RMB34.7
    million a year ago.Adjusted profit for the year decreased by 12.5% to
    RMB166.8 million (US$27.2 million) in FY2013, compared to RMB190.7 million
    a year ago.A reconciliation of the adjusted profit for the period to
    (loss)/profit for the period determined in accordance with IFRS is set
    forth in Appendix V.

^1 This announcement contains translations of certain Renminbi (RMB) amounts
into U.S. dollars (US$) at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S. dollars are
made at a rate of RMB6.1374 to US$1.00, the effective noon buying rate as of
June 28, 2013 in The City of New York for cable transfers of RMB as set forth
in H.10 weekly statistical release of the Federal Reserve Board.
^2 On August 24, 2012, the Company's board of directors approved a change in
the Company's fiscal year end from March 31 to June 30.Unless otherwise
noted, the comparable period for the fourth quarter ended June 30, 2013
throughout this announcement is the three-month period ended June 30, 2012,
while the comparable period for the twelve-month period ended June 30, 2013
throughout this announcement is the twelve-month period ended June 30, 2012.
^3 Defined as profit for the period before the net impact of biological assets
fair value adjustment and further adjusted to exclude, as applicable, the
effects of non-cash share-based compensation, impairment losses on property,
plant and equipment and prepayments and offering expenses charged to the
income statement.

  *Adjusted EBITDA^4 (non-IFRS measure) increased by 0.2% to RMB56.2 million
    (US$9.2 million) for Q4 FY2013, compared to RMB56.1 million a year
    ago.Adjusted EBITDA decreased by 1.8% to RMB261.3 million (US$42.6
    million) in FY2013, compared to RMB266.2 million a year ago.A
    reconciliation of the adjusted EBITDA to (loss)/profit for the period
    determined in accordance with IFRS is set forth in Appendix VI.
    
  *Basic and diluted loss per share were RMB0.59 cents (0.10 US cents) for Q4
    FY2013.Basic and diluted loss per ADS^5 were RMB29.50 cents (4.81 US
    cents) for Q4 FY2013.
    
  *Basic and diluted earnings per share were RMB6.80 cents (1.11 US cents)
    for FY2013.Basic and diluted earnings per ADS were RMB340.00 cents (55.40
    US cents) for FY2013.
    
  *Cash generated from operating activities increased by 105.3% to RMB109.5
    million (US$17.8 million) for Q4 FY2013, compared to RMB53.4 million a
    year ago.Cash generated from operating activities increased by 0.5% to
    RMB259.0 million (US$42.2 million) in FY2013, compared to RMB257.5 million
    a year ago.
    
  *Revenue-per-mu decreased to RMB6,030 (US$982) for Q4 FY2013, compared to
    RMB6,129 a year ago.Revenue-per-mu decreased to RMB24,547 (US$4,000) in
    FY2013, compared to RMB25,296 a year ago.
    
  *Production output increased to 39,980 metric tons for Q4 FY2013, compared
    to 34,947 metric tons a year ago.Production output increased to 138,212
    metric tons in FY2013, compared to 137,547 metric tons a year ago.

^4 Defined as EBITDA (earnings before net finance income (costs), income tax
expense, depreciation and amortization), as further adjusted to exclude, as
applicable, the effects of non-cash share-based compensation, the net impact
of biological assets fair value adjustment, impairment losses on property,
plant and equipment and prepayments and offering expenses charged to the
income statement.
^5 American depositary shares, which are traded on the NASDAQ Global Select
Market, each represents 50 ordinary shares of the Company.

  *For Q4 FY2013 revenue from solanaceous, leafy and cruciferous vegetables
    increased. For FY2013 our product mix shifted further towards solanaceous
    vegetables.Solanaceous vegetables sold to third parties in the PRC
    mainland represented 65% of total revenue in FY2013, compared to 61% of
    total revenue a year ago.
    
  *Average selling price (ASP) of vegetables sold to third parties in the PRC
    mainland increased by 6.8% to 3.76 RMB/kg for Q4 FY2013, compared to 3.52
    RMB/kg a year ago.ASP of vegetables sold to third parties in the PRC
    mainland increased by 10.3% to 4.07 RMB/kg for FY2013, compared to 3.69
    RMB/kg a year ago.
    
  *Total arable land as of June 30, 2013 was 29,382 mu (1,959 hectare), the
    same as of March 31, 2013, and an increase of 3,258 mu compared to June
    30, 2012.
    
  *Total greenhouse area as of June 30, 2013 was 11,963 mu (798 hectare),
    representing an increase of 921 mu compared to March 31, 2013 and an
    increase of 3,048 mu compared to June 30, 2012.

Mr. Shing Yung Ma, the CEO of Le Gaga, commented, "Our performance in the
fourth fiscal quarter and the fiscal year 2013 was affected by the overall
slowdown of the Chinese economy and lower government spending, which resulted
in significantly lower market prices during the winter months, as compared to
the previous year. The milder weather in South China further contributed to
lower market prices. Although production volume and product quality were in
line with our expectations, the lower market prices resulted in lower revenue
than initially expected.During fiscal year 2013 we upgraded our product mix
and further focused on the off-season production of solanaceous products.

Favorable weather allowed us to make progress on greenhouse construction and
we added over 900 mu of greenhouses during the quarter.During the fiscal year
2013 we have spent much R&D effort on soil-less production systems. Following
the completion of the solanaceous season in May, we have started the
conversion of part of our greenhouse area to soil-less production.Although we
did not add any new land during the quarter, we added over 3,000 mu of land
during the fiscal year and our land expansion plans are on track."

Mr. Auke Cnossen, the CFO of Le Gaga, added, "Despite lower market prices, we
achieved higher average selling prices in the fourth fiscal quarter compared
to the same three-month period last year. The higher selling prices were
partly a result of better product mix, product quality and more spending on
product packaging.Furthermore, fewer customers came to our farms to pick up
the products, which resulted in more transportation incurred by the company,
but passed on to customers through higher selling prices. These also resulted
in higher packing as well as transportation costs as a percentage of
revenue.Our focus on high value products, which typically have higher selling
prices but lower volume, remains important because four of our major expenses,
including labor, fertilizer, packing and transportation, are all
proportionally related to production volume.

Our cost of goods sold increased year over year as a result of higher direct
material costs such as fertilizers, higher labor costs due to wage inflation,
higher depreciation due to more greenhouse coverage, and higher rental
expenses as recently leased land with higher rents came into production during
the quarter. A large negative net impact of biological assets fair value
adjustment was recorded for the quarter. The negative net impact was due to
the completion of the solanaceous production cycle, which resulted in a switch
from high value solanaceous crops on our fields at the end of March to mostly
low value leafy crops on our fields at the end of June. Our operating cash
flow during the current quarter was higher compared to last year primarily due
to the collection of trade receivables outstanding as at March 31, 2013."

Summary of Operating Data

                          As of Jun 30,     As of Mar 31,     As of Jun 30,
                           2012              2013              2013
Arable land                                                  
- Operating land           20,110 mu       24,913 mu       25,213 mu
                          (1,341 hectare) (1,661 hectare) (1,681
                                                               hectare)
- Land under construction  6,014 mu        4,469 mu        4,169 mu
or reserved (1)
                          (401 hectare)   (298 hectare)   (278 hectare)
- Total                    26,124 mu       29,382 mu       29,382 mu
                          (1,742 hectare) (1,959 hectare) (1,959
                                                               hectare)
                                                            
Greenhouse area (2)                                          
- Total                    8,915 mu        11,042 mu       11,963 mu
                          (594 hectare)   (736 hectare)   (798 hectare)
                                                            
Greenhouse area as a                                         
percentage of
- Operating land           44.3%             44.3%             47.4%
- Total arable land        34.1%             37.6%             40.7%

                                                    
                             Three Months Ended June Twelve Months Ended June
                              30,                     30,
                             2012        2013        2012         2013
                                                               
Total production output       34,947     39,980     137,547     138,212
(metric tons)
Production yield (metric tons 1.7        1.6        6.7         5.9
per mu)
Revenue-per-mu (RMB)          6,129      6,030      25,296      24,547
                                                               

    Land under construction or reserved includes (i) newly leased land which
(1) has not yet been put into production and is either under construction or
   in reserve for future development, and (ii) land which we plan to return
    and is not in operation.
   As of June 30, 2013, we had 3,470 mu of newly leased land and 699 mu of
    land which we plan to return.
   
(2) As of June 30, 2012, there were 450 mu bamboo-made greenhouses and 8,465
    mu steel-made greenhouses.
   As of March 31, 2013, there were 450 mu bamboo-made greenhouses and 10,592
    mu steel-made greenhouses.
   As of June 30, 2013, there were 450 mu bamboo-made greenhouses and 11,513
    mu steel-made greenhouses.

Financial Results for the Fourth Quarter and Fiscal Year Ended June 30, 2013

Revenue increased by 22.6% to RMB151.1 million (US$24.6 million) for Q4
FY2013, compared to RMB123.2 million a year ago.The increase in revenue was
due to an increase in our land area, greenhouse area and open field
utilization. Our average operating land increased 24.9% to 25,061 mu for Q4
FY2013, compared to 20,062 mu a year ago.

Revenue increased by 11.0% to RMB576.3 million (US$93.9 million) for FY2013,
compared to RMB519.3 million a year ago.The increase in revenue was due to an
increase in our land area, greenhouse area and open field utilization. Our
average operating land increased 14.3% to 23,476 mu for FY2013, compared to
20,530 mu a year ago.

Our ASP for the quarter as well as for FY2013 increased due to (1) the upgrade
in our product mix, (2) better product quality, (3) more spending on product
packaging, (4) more transportation costs incurred and passed on to customers
as fewer customers came to our farms to pick up the produce, which was
partially off-set by (5) lower market prices.Our revenue per mu decreased
slightly as the upgrade in product mix resulted in lower volume per mu.

           Three Months Ended June 30,       Twelve Months Ended June 30,
           2012             2013             2012             2013
           Revenue ASP      Revenue ASP      Revenue ASP      Revenue ASP
            (%)     (RMB/kg) (%)     (RMB/kg) (%)     (RMB/kg) (%)     (RMB/kg)
                                                               
PRC                                                             
revenue^6
Solanaceous 65%     3.88    57%     3.96    61%     4.41    65%     4.76
Leafy       29%     2.92    28%     3.51    25%     2.81    21%     3.17
Cruciferous 4%      3.19    13%     3.33    8%      2.93    11%     3.04
Others      1%      8.50    2%      6.88    1%      3.35    2%      4.72
Sub-total   99%     3.52    100%    3.76    95%     3.69    99%     4.07
Hong Kong   1%              0%              5%              1%      
revenue
Total       100%            100%            100%            100%    
                                                               
^6 Defined as revenue from sales of respective products in the PRC mainland to
external customers

We primarily grow solanaceous vegetables (primarily peppers and tomatoes),
green leafy and cruciferous vegetables during the period ended June 30.
Solanaceous vegetables generally have a higher selling price per kg.In Q4
FY2013, more cruciferous vegetables were planted and sold to capture the high
market prices.The production volume of solanaceous and leafy vegetables did
not significantly change, compared to a year ago.For FY2013, our product mix
shifted further towards solanaceous products compared to a year ago.

Cost of inventories sold increased by RMB19.8 million, or 18.3%, to RMB127.8
million (US$20.8 million) for Q4 FY2013, compared to RMB108.0 million a year
ago.Cost of inventories sold increased by RMB37.1 million, or 8.1%, to
RMB494.2 million (US$80.5 million) for FY2013, compared to RMB457.1 million a
year ago.

Adjusted cost of inventories sold^7 (non-IFRS measure) increased by RMB19.9
million, or 43.3%, to RMB65.9 million (US$10.7 million) for Q4 FY2013,
compared to RMB46.0 million a year ago.Adjusted cost of inventories sold as a
percentage of revenue increased from 37.3% for the three months ended June 30,
2012 to 43.6% for the three months ended June 30, 2013, primarily due to
increased direct materials, labor and rental costs as well as higher
depreciation charges, as a percentage of revenue.

Adjusted cost of inventories sold increased by RMB39.1 million, or 22.7%, to
RMB211.1 million (US$34.4 million) for FY2013, compared to RMB172.0 million a
year ago.Adjusted cost of inventories sold as a percentage of revenue
increased from 33.1% for the twelve months ended June 30, 2012 to 36.6% for
the twelve months ended June 30, 2013, primarily due to increased direct
materials, labor, rental and overhead costs as well as higher depreciation
charges, as a percentage of revenue.

A reconciliation of adjusted cost of inventories sold to cost of inventories
sold determined in accordance with IFRS is set forth in Appendix IV.

                Three Months Ended June 30,   Twelve Months Ended June 30,
                2012      2013                2012       2013
                RMB       RMB       US$       RMB        RMB        US$
                                                               
Biological
assets fair
value adjustment (61,963) (61,835) (10,075) (285,137) (283,170) (46,138)
included in cost
of inventories
sold
                                                               
Changes in fair
value less costs
to sell of       22,964   18,219   2,969    273,728   277,504   45,215
biological
assets
                                                               
Net impact of
biological       (38,999) (43,616) (7,106)  (11,409)  (5,666)   (923)
assets fair
value adjustment
                                                               
^7 Defined as cost of inventories sold before biological assets fair value
adjustment

The net impact of the biological assets fair value adjustment represents the
net increase or decrease in gain from fair value less costs to sell of crops
on our farmland at the end of the reporting period compared to the end of the
immediately preceding reporting period.

A net loss of RMB43.6 million was recognized arising from biological assets
fair value adjustment for Q4 FY2013, as compared to a net loss of RMB39.0
million recognized a year ago.

The net loss of RMB43.6 million for Q4 FY2013 primarily arose from the
harvesting activities of solanaceous products.As we ended the solanaceous
products season and most solanaceous products had been harvested, we switched
from high value solanaceous crops on our fields at the end of March (the
immediately preceding reporting period end) to mostly low value leafy crops on
our fields at the end of June, resulting in a negative net impact.

The larger negative net impact for Q4 FY2013 compared to that of a year ago
was primarily due to a lower expected volume of crops on our fields on June
30, 2013, when compared with that of June 30, 2012.

The net impact of biological assets fair value adjustment was a loss of RMB5.7
million for FY2013, primarily due to a lower expected volume of crops on our
fields on June 30, 2013, when compared with that of June 30, 2012, primarily
due to (1) our strategy of focusing more on the off-season (winter months) and
less on the summer months and (2) an increase in land not in operation due to
the conversion of part of our greenhouses to the soil-less production
system.The smaller negative net impact for FY2013, compared to that of a year
ago, was due to the effect from increasing seasonality leveling off as our
business model focusing on off-season production has been progressively
implemented.

Our packing expenses increased by RMB4.0 million, or 45.2%, to RMB12.9 million
(US$2.1 million) for Q4 FY2013, compared to RMB8.9 million a year ago,
primarily due to an increase of RMB4.4 million in packing materials consumed,
as a result of (1) the increase in sales volume, (2) better packaging used to
enhance the selling price, and (3) our effort to enhance our brand awareness.

Our packing expenses increased by RMB13.9 million, or 40.9%, to RMB47.8
million (US$7.8 million) for FY2013, compared to RMB33.9 million a year ago,
primarily due to an increase of RMB15.2 million in packing materials consumed,
as a result of (1) the increased production volume of solanaceous products,
which require more packaging compared to leafy and cruciferous products, (2)
better packaging used to enhance the selling price, and (3) our effort to
enhance our brand awareness.

Our land preparation costs increased by RMB2.9 million, or 22.7%, to RMB15.8
million (US$2.6 million) for Q4 FY2013, compared to RMB12.9 million a year
ago, which was primarily due to (1) an increase in greenhouse coverage which
increased the unit land preparation cost and (2) an increase in the amount of
land in reserve or under construction due to longer construction period for
new farms under construction.

Our land preparation costs increased by RMB12.6 million, or 29.0%, to RMB56.1
million (US$9.1 million) for FY2013, compared to RMB43.5 million a year ago,
which was primarily due to (1) an increase in greenhouse coverage which
increased the unit land preparation cost and (2) an increase in the amount of
land in reserve or under construction due to longer construction period for
new farms under construction.

Our selling and distribution expenses increased by RMB5.9 million, or 90.5%,
to RMB12.4 million (US$2.0 million) for Q4 FY2013, compared to RMB6.5 million
a year ago, which was primarily due to the increase of RMB6.2 million in
transportation costs, as a result of (1) higher transportation costs incurred
by the company as fewer customers picked up the produce at our farms, (2) the
increase in our production volume and, (3) increased fuel costs.

Our selling and distribution expenses increased by RMB13.1 million, or 44.2%,
to RMB42.9 million (US$7.0 million) for FY2013, compared to RMB29.8 million a
year ago, which was primarily due to the increase of RMB14.9 million in
transportation costs, as a result of (1) the increase in sales of solanaceous
products, which are shipped further away compared to leafy and cruciferous
vegetables, (2) higher transportation costs incurred by the company as fewer
customers picked up the produce at our farms, and (3) increased fuel costs.

Our administrative expenses decreased by RMB0.9 million, or 6.8%, to RMB12.3
million (US$2.0 million) for Q4 FY2013, compared to RMB13.2 million a year
ago.

Our administrative expenses decreased by RMB12.7 million, or 22.1%, to RMB44.6
million (US$7.3 million) for FY2013, compared to RMB57.3 million a year ago,
primarily due to (1) a decrease of RMB14.8 million in equity-settled
share-based compensation and (2) a decrease of RMB1.6 million in travelling
expenses.The decrease in administrative expenses is partially offset by an
increase of RMB2.8 million in legal and professional fees.

As a result of the foregoing factors, the loss for Q4 FY2013 was RMB13.0
million (US$2.1 million), compared to a loss of RMB8.5 million a year
ago.Profit for the year increased by RMB11.4 million, or 8.1%, to RMB153.1
million (US$25.0 million) for FY2013, compared to a profit of RMB141.7 million
a year ago.

Adjusted profit for the period decreased by 9.0% to RMB31.6 million (US$5.1
million) for Q4 FY2013, compared to RMB34.7 million a year ago. Adjusted
profit for the year decreased by 12.5% to RMB166.8 million (US$27.2 million)
for FY2013, compared to RMB190.7 million a year ago.

Basic and diluted loss per share were RMB0.59 cents (0.10 US cents) for Q4
FY2013.Basic and diluted loss per ADS were RMB29.50 cents (4.81 US cents) for
Q4 FY2013.

Basic and diluted earnings per share were RMB6.80 cents (1.11 US cents) for
FY2013.Basic and diluted earnings per ADS were RMB340.00 cents (55.40 US
cents) for FY2013.

Our operating cash inflow increased by RMB56.1 million, or 105.3%, to RMB109.5
million (US$17.8 million) for Q4 FY2013, compared to RMB53.4 million a year
ago.The increase in cash inflow resulted primarily from an increase of
RMB68.6 million in cash received, as a result of the collection of RMB93.0
million in trade receivables outstanding as at March 31, 2013.

Our operating cash inflow increased by RMB1.5 million, or 0.5%, to RMB259.0
million (US$42.2 million) for FY2013, compared to RMB257.5 million a year
ago.The slight change in operating cash inflow is the offsetting effect of
(1) an increase of RMB42.3 million in cash received from sales and (2) an
increase of RMB40.8 million in cash paid for our cost of revenue and operating
expenses, compared to last year.

Cash used in investing activities increased by RMB73.9 million, or 113.3%, to
RMB139.1 million (US$22.7 million) for Q4 FY2013, compared to RMB65.2 million
a year ago.The net cash outflow of RMB139.1 million in Q4 FY2013 was
primarily due to our payment for construction in progress and prepayments for
construction works totalling RMB140.9 million, which consisted of (1) payment
of RMB102.3 million for agricultural infrastructure, including RMB43.6 million
for the conversion to soil-less production, (2) payment for construction of
greenhouses of RMB37.3 million, and (3) payment for land improvements of
RMB1.3 million.

Cash used in investing activities increased by RMB131.2 million, or 45.2%, to
RMB421.3 million (US$68.6 million) for FY2013, compared to RMB290.1 million a
year ago.The net cash outflow of RMB421.3 million for FY2013 was primarily
due to our payment for construction in progress and prepayments for
construction works totalling RMB399.7 million, which consisted of (1) payment
of RMB198.1 million for agricultural infrastructure, including RMB48.7 million
for the conversion to soil-less production, (2) payment for construction of
greenhouses of RMB150.9 million, and (3) payment for land improvements of
RMB50.7 million.

Recent developments

Following the completion of the solanaceous season in May we have started the
conversion of part of our greenhouse area to a soil-less production
system.The key reasons for shifting to the soil-less system are:

(1) The increasing difficulty in finding farm land with unpolluted soil and a
safe and reliable water supply in China;

(2) The increasing disease pressure in recent years due to ever more intensive
farming methods around China;

(3) The increasing difficulty in finding skilled farm workers in China.

The soil-less system provides more control over the growing environment as
well as the application of production inputs such as fertilizer, water and
pesticide and helps to mitigate soil-borne disease and pollution
issues.Furthermore, this system is less labor intensive compared to
production in the soil. Lastly, the central government has commenced a series
of R&D activities on soil-less production this year, as it is increasingly
focusing on the environmental impact of farming as well as food safety issues.
Thus, we believe that this is the future development of the agricultural
industry in China.

Business Outlook for the Fiscal Year Ending June 30, 2014

For the fiscal year ending June 30, 2014, the Company expects lower revenue
per mu as compared to the fiscal year ended June 30, 2013, due to operational
disruption resulting from the conversion of a large area of our greenhouses to
the soil-less production system. The Company estimates its revenue for the
fiscal year ending June 30, 2014 to be between RM585 million and RMB625
million, representing a year over year growth rate of approximately 1.6% to
8.5% for the fiscal year ending June 30, 2014 from the fiscal year ended June
30, 2013. This forecast reflects the Company's current and preliminary
estimate, which is subject to change. See "Safe Harbor Statements" below.

Conference Call

The Company will host a conference call at 8:00 a.m. ET on Sep 17, 2013 (8:00
p.m. Hong Kong Time) to review the Company's financial results and answer
questions. You may access the live interactive call via:

  *+1 866 978 9970 (U.S. Toll Free)
  *+8008 0361 03 (China Toll Free)
  *+852 3027 5500 (International)
  *Pass Code: 534242#

Please dial-in approximately 10 minutes in advance to facilitate an on-time
start.

A replay will be available for two weeks after the call and may be accessed
via:

  *+852 3027 5520
  *Passcode: 135415#

A live and archived webcast of the call, as well as a presentation with the
Company's financial results will be available on the Company's website at
www.legaga.com.hk/html/index.php.

About Le Gaga Holdings Limited (Nasdaq:GAGA)

Le Gaga is a leading greenhouse vegetable producer in China. The Company sells
and markets greenhouse vegetables such as peppers, tomatoes, cucumbers and
eggplants, as well as green leafy vegetables to wholesalers, institutional
customers and supermarkets in China and Hong Kong. The Company has
successfully built a trusted brand among its customers.

The Company currently operates farms in the Chinese provinces of Fujian,
Guangdong and Hebei. Leveraging its large-scale greenhouses, proprietary
horticultural know-how and comprehensive database, the Company specializes in
producing and selling high-quality, off-season vegetables during the winter
months.

Safe Harbor Statements

This press release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including certain plans,
expectations, goals, and projections, which are subject to numerous
assumptions, risks, and uncertainties. Forward-looking statements typically
are identified by the use of terms such as "may," "could," "would," "will,"
"plan," "anticipate," "believe," "estimate," "predict," "outlook," "on track,"
"potential," "expect," "intend" and "future" or similar expressions, although
some forward-looking statements are expressed differently. You should consider
statements that contain these words carefully because they describe our
expectations, plans, strategies and goals and our beliefs concerning future
business conditions, our results of operations, financial position, and our
business outlook or they state other ''forward-looking'' information based on
currently available information.Assumptions and other important factors could
cause our actual results to differ materially from those anticipated in our
forward-looking statements include, but not limited to: our ability to
continue to lease farmland or forestland; the legality or validity of our
leases of agricultural land; risks associated with extreme weather conditions,
natural disasters, crops diseases, pests and other natural conditions;
fluctuations in market prices and demand for our products; risks attributable
to our growth strategies, including increasing our greenhouse coverage,
increasing our production scale, strengthening our sales, marketing and
distribution efforts, focusing on off-season products, increasingly shifting
our product mix to solanaceous products, and expanding our research and
development capability; risks of product contamination and product liability
claims as well as negative publicity associated with food safety issues in
China; risks of labor shortage and rising labor costs; regulatory compliance,
changes or action, including environmental and trade regulation, our ability
to comply with U.S. public accounting reporting requirements, including
maintenance of an effective system of internal controls over financial
reporting; our susceptibility to adverse changes in political, economic and
other policies of the Chinese government that could materially harm its
business; the risk factors or uncertainties are listed from time to time in
our filings with the Securities and Exchange Commission. Other factors and
assumptions not identified above are also relevant to the forward-looking
statements, and if they prove incorrect, could also cause actual results to
differ materially from those projected. All forward-looking statements are
expressly qualified in their entirety by the foregoing cautionary statements.
Our forward-looking statements speak only as of the date made. We assume no
obligation to update or to publicly announce the results of any revisions to
any of the forward-looking statements to reflect actual results, future events
or developments, changes in assumptions or changes in other factors affecting
the forward-looking statements.

Information Related to Certain Non-IFRS measures

This press release contains the following financial measures that differ from
the comparable measures under International Financial Reporting Standards
(IFRS): adjusted cost of inventories sold, adjusted profit for the period and
adjusted EBITDA.Reconciliations between those non-IFRS measures and the
comparable IFRS measures are included elsewhere in this press release.While
we believe these measures are useful for investors to assess our financial
results, these non-IFRS measures should not be considered substitutes for the
most directly comparable IFRS measures.Additional information concerning
non-IFRS measures are included in our filings with the Securities and Exchange
Commission that are available in the "Investors – SEC Filings" section of our
website, www.legaga.com.hk.

Adjusted cost of inventories sold is defined as cost of inventories sold
before biological assets fair value adjustment. We are primarily engaged in
agricultural activities of cultivating, processing and distributing vegetables
and have therefore adopted International Accounting Standard 41 "Agriculture",
or IAS 41, in accounting for biological assets and agricultural produce.
Unlike the historical cost accounting model, IAS 41 requires us to recognize
in our income statements the gain or loss arising from the change in fair
value less costs to sell of biological assets and agricultural produce for
each reporting period. Cost of inventories sold determined under IAS 41
reflects the deemed cost of agricultural produce, which is based on their fair
value (less costs to sell) at the point of harvest.Biological assets fair
value adjustment is the difference between the deemed cost of the agricultural
produce and the plantation expenditure we incurred to cultivate the produce to
the point of harvest. Although an "adjusted" cost of inventories sold
excluding these fair value adjustments is a non-IFRS measure, we believe that
separate analysis of the cost of inventories sold excluding these fair value
adjustments adds clarity to the constituent parts of our cost of inventories
sold and provides additional useful information for investors to assess our
cost structure. A reconciliation of adjusted cost of inventories sold to IFRS
cost of inventories sold is set forth in Appendix IV.

Adjusted profit for the period represents profit for the period before the net
impact of biological assets fair value adjustment and further adjusted to
exclude, as applicable, the effects of non-cash share-based compensation,
offering expenses and impairment losses on property, plant and equipment and
prepayments charged to the income statement.We believe that separate analysis
of the net impact of the biological assets fair value adjustments, non-cash
share-based compensation, offering expenses and impairment losses on property,
plant and equipment and prepayments adds clarity to the constituent part of
our results of operations and provides additional useful information for
investors to assess the operating performance of our business. A
reconciliation of adjusted profit for the period is set forth in Appendix V.

Adjusted EBITDA is defined as EBITDA (earnings before net finance income
(costs), income tax expense, depreciation and amortization), as further
adjusted to exclude, as applicable, the effects of non-cash share-based
compensation, the net impact of biological assets fair value adjustment,
offering expenses and impairment losses on property, plant and equipment and
prepayments charged to the income statement. We believe adjusted EBITDA is
useful to investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of companies in our
industry. You should use adjusted EBITDA as a supplemental analytical measure
to, and in conjunction with, our IFRS financial data. In addition, we believe
that adjusted EBITDA is useful in evaluating our operating performance
compared to that of other companies in our industry because the calculation of
adjusted EBITDA generally eliminates the effects of financing and income taxes
and the accounting effects of capital spending, which items may vary for
different companies for reasons unrelated to overall operating performance. We
use these non-IFRS financial measures for planning and forecasting and
measuring results against the forecast. Using several measures to evaluate the
business allows us and investors to assess our relative performance against
our competitors and ultimately monitor our capacity to generate returns for
our shareholders.A reconciliation of the adjusted EBITDA to profit for the
period is set forth in Appendix VI.

Appendix I
Le Gaga Holdings Limited
Unaudited Condensed Consolidated Income Statements
For the three months and twelve months ended June 30, 2012 and 2013

                Three Months Ended June 30,             Twelve Months Ended June 30,
                2012           2013                     2012           2013
                RMB            RMB            US$       RMB            RMB            US$
                (In thousands, except per share data)
                                                                                 
Revenue          123,248       151,112       24,622   519,315       576,274       93,895
Cost of          (107,983)     (127,769)     (20,818) (457,087)     (494,235)     (80,528)
inventories sold
Changes in fair
value less costs                                                                  
to sell related
to
Crops harvested
during the       5,067         6,651         1,084    251,848       260,928       42,514
period
Growing crops on
the farmland at  17,897        11,568        1,885    21,880        16,576        2,701
the period end
Total changes in
fair value less
costs to sell of 22,964        18,219        2,969    273,728       277,504       45,215
biological
assets
Packing expenses (8,913)       (12,942)      (2,109)  (33,887)      (47,754)      (7,781)
Land preparation (12,887)      (15,807)      (2,576)  (43,472)      (56,078)      (9,137)
costs
Other income     466           546           89       3,661         1,830         298
Research and
development      (2,291)       (3,612)       (589)    (9,321)       (13,283)      (2,164)
expenses
Selling and
distribution     (6,516)       (12,414)      (2,023)  (29,754)      (42,899)      (6,990)
expenses
Administrative   (13,155)      (12,264)      (1,998)  (57,313)      (44,631)      (7,272)
expenses
Impairment
losses on
property, plant  --           --           --      (14,823)      --           --
and equipment
and prepayments
Other expenses  (132)         (254)         (41)     (2,550)       (797)         (130)
Results from
operating        (5,199)       (15,185)      (2,474)  148,497       155,931       25,406
activities
Finance income   909           3,397         553      8,556         8,382         1,366
Finance costs    (4,046)       (3,472)       (566)    (10,786)      (13,017)      (2,121)
Net finance      (3,137)       (75)          (13)     (2,230)       (4,635)       (755)
(costs)/income
(Loss)/profit    (8,336)       (15,260)      (2,487)  146,267       151,296       24,651
before taxation
Income tax       (128)         2,225         363      (4,543)       1,840         300
(expense)/credit
(Loss)/profit    (8,464)       (13,035)      (2,124)  141,724       153,136       24,951
for the period
(Loss)/earnings
per share (in                                                                     
cents)
Basic            (0.37)        (0.59)        (0.10)   6.20          6.80          1.11
Diluted          (0.37)        (0.59)        (0.10)   6.12          6.80          1.11
Weighted average
number of shares                                                                  
outstanding:
Basic            2,281,430,300 2,198,845,700          2,284,111,692 2,251,662,527 
Diluted          2,281,430,300 2,198,845,700          2,314,312,815 2,252,439,907 
(Loss)/earnings
per ADS (in                                                                       
cents)
Basic            (18.50)       (29.50)       (4.81)   310.00        340.00        55.40
Diluted          (18.50)       (29.50)       (4.81)   306.00        340.00        55.40
Weighted average
number of ADSs                                                                    
outstanding:
Basic            45,628,606    43,976,914             45,682,234    45,033,251    
Diluted          45,628,606    43,976,914             46,286,256    45,048,798    
                                                                                 

Appendix II
Le Gaga Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
As of June 30, 2012 and 2013

                                  June 30, 2012 June 30, 2013
                                  RMB           RMB        US$
                                  (In thousands)
Non-current assets                                        
Property, plant and equipment      700,245      1,049,311 170,970
Construction in progress           68,627       70,508    11,488
Lease prepayments                  1,256        1,171     191
Long-term deposits and prepayments 163,494      166,916   27,197
Biological assets                  7,833        12,439    2,027
Deferred tax assets                1,943        2,321     378
Total non-current assets           943,398       1,302,666  212,251
                                                         
Current assets                                            
Biological assets                  30,709       26,268    4,280
Inventories                        16,427       14,941    2,434
Trade and other receivables        64,566       84,558    13,776
Pledged bank deposits              --           45,065    7,343
Cash                               504,506      305,487   49,775
Total current assets               616,208       476,319    77,608
                                                         
Total assets                       1,559,606     1,778,985  289,859
                                                         
Equity                                                    
Capital                            692,833      644,397   104,995
Reserves                           742,820      908,126   147,966
Total equity                       1,435,653     1,552,523  252,961
                                                         
Non-current liabilities                                   
Bank loans                         61,998       --        --
                                                         
Current liabilities                                       
Bank loans                         24,307       146,110   23,806
Trade and other payables           31,111       75,246    12,260
Current taxation                   6,537        5,106     832
Total current liabilities          61,955        226,462    36,898
                                                         
Total liabilities                  123,953       226,462    36,898
                                                         
Total equity and liabilities       1,559,606     1,778,985  289,859
                                                         

Appendix III
Le Gaga Holdings Limited
Unaudited Condensed Consolidated Statements of Cash Flow
For the three months and twelve months ended June 30, 2012 and 2013

                   Three Months Ended June 30,  Twelve Months Ended June 30,
                   2012      2013               2012       2013
                   RMB       RMB       US$      RMB        RMB        US$
                   (In thousands)
Operating                                                         
activities
(Loss)/profit       (8,336)  (15,260) (2,487) 146,267   151,296   24,651
before taxation
                                                                 
Adjustments for:                                                  
Amortization of     14       14       2       75        56        9
lease prepayments
Depreciation        18,065   26,718   4,353   68,621    91,647    14,933
Equity settled
share-based         4,192    1,011    165     22,778    7,999     1,303
transactions
Changes in fair
value less costs to (22,964) (18,219) (2,969) (273,728) (277,504) (45,215)
sell of biological
assets
Interest income     (909)    (372)    (61)    (1,927)   (2,084)   (340)
Interest expense    2,792    3,472    566     10,786    13,017    2,121
Gain on disposal of --      --      --     (1,309)   --       --
a subsidiary
Net loss on
disposal of
property, plant and 79       17       3       2,159     21        3
equipment and lease
prepayments
Impairment losses:                                                
- Property, plant   --      --      --     12,771    --       --
and equipment
- Prepayments       --      --      --     2,052     --       --
Foreign exchange    330      (2,910)  (473)   (5,974)   (5,529)   (900)
loss/(gain)
                                                                 
                   (6,737)  (5,529)  (901)   (17,429)  (21,081)  (3,435)
                                                                 
Changes in current
biological assets   (37,627) (51,553) (8,400) (159,097) (206,499) (33,646)
due to plantations
Changes in
inventories, net of
effect of harvested 102,089  126,123  20,550  440,218   487,180   79,379
crops transferred
to inventories
(Increase)/decrease
in trade and other  (4,724)  40,213   6,552   (20,135)  (19,914)  (3,245)
receivables
Decrease in
long-term deposits  3,192    2,422    395     7,720     11,451    1,866
and prepayments
(Decrease)/increase
in trade and other  (2,842)  (2,136)  (348)   9,146     7,814     1,273
payables
                                                                 
Cash generated from 53,351   109,540  17,848  260,423   258,951   42,192
operations
                                                                 
Income tax paid     --      --      --     (2,881)   --       --
                                                                 
Net cash generated
from operating      53,351   109,540  17,848  257,542   258,951   42,192
activities
                                                                 

Appendix III
Le Gaga Holdings Limited
Unaudited Condensed Consolidated Statements of Cash Flow
For the three months and twelve months ended June 30, 2012 and 2013

               Three Months Ended June 30,    Twelve Months Ended June 30,
               2012      2013                 2012       2013
               RMB       RMB        US$       RMB        RMB        US$
               (In thousands)
Investing                                                       
activities
Interest        909      372       61       1,927     2,084     340
received
Plantations of
non-current     (480)    (525)     (86)     (1,618)   (1,856)   (302)
biological
assets
Payment for the
purchase of     (4,746)  (8,061)   (1,313)  (7,792)   (21,878)  (3,565)
property, plant
and equipment
Payment for
construction in
progress and    (60,904) (140,880) (22,954) (290,706) (399,657) (65,118)
prepayments for
construction
works
Net cash inflow
of disposal of  --      --       --      3,737     --       --
a subsidiary
Proceeds from
disposal of
property, plant --      --       --      4,331     --       --
and equipment
and lease
prepayments
Decrease in
pledged bank
deposits        --      10,000    1,629    --       --       --
related to
construction
work
                                                               
Net cash used
in investing    (65,221) (139,094) (22,663) (290,121) (421,307) (68,645)
activities
                                                               
Financing                                                       
activities
Interest paid   (5,305)  (6,455)   (1,052)  (10,448)  (13,238)  (2,157)
Proceeds from   --      78,492    12,789   10,000    113,492   18,492
bank loans
Repayments of   --      (42,011)  (6,845)  --       (52,011)  (8,474)
bank loan
Increase in
pledged bank
deposits        --      (45,065)  (7,343)  --       (45,065)  (7,343)
related to
financing
Proceeds from
exercise of     --      --       --      3,161     --       --
share options
Payment for
repurchase of   --      (6,280)   (1,023)  (10,185)  (37,923)  (6,179)
shares
                                                               
Net cash used
in financing    (5,305)  (21,319)  (3,474)  (7,472)   (34,745)  (5,661)
activities
                                                               
Net decrease in (17,175) (50,873)  (8,289)  (40,051)  (197,101) (32,114)
cash
                                                               
Cash at
beginning of    520,475  357,214   58,203   551,491   504,506   82,202
the period
                                                               
Effect of
foreign         1,206    (854)     (139)    (6,934)   (1,918)   (313)
exchange rate
changes
                                                               
Cash at June 30 504,506  305,487   49,775   504,506   305,487   49,775
                                                               

Appendix IV
Le Gaga Holdings Limited
Reconciliation of Non-IFRS adjusted cost of inventories sold to cost of
inventories sold
For the three months and twelve months ended June 30, 2012 and 2013

              Three Months Ended June 30,     Twelve Months Ended June 30,
              2012       2013                 2012       2013
              RMB        RMB        US$       RMB        RMB        US$
              (In thousands)
Cost of
inventories    (107,983) (127,769) (20,818) (457,087) (494,235) (80,528)
sold
Less:
biological
assets fair    61,963    61,835    10,075   285,137   283,170   46,138
value
adjustment
                                                               
Adjusted cost
of inventories (46,020)  (65,934)  (10,743) (171,950) (211,065) (34,390)
sold
                                                               

Appendix V
Le Gaga Holdings Limited
Reconciliation of Non-IFRS adjusted profit for the period to (loss)/profit for
the period
For the three months and twelve months ended June 30, 2012 and 2013

                     Three Months Ended June 30, Twelve Months Ended June 30,
                     2012     2013               2012      2013
                     RMB      RMB       US$      RMB       RMB       US$
                     (In thousands)
(Loss)/profit for the (8,464) (13,035) (2,124) 141,724  153,136  24,951
period
                                                                
Add:                                                            
Non-cash share-based  4,192   1,011    165     22,778   7,999    1,303
compensation
Impairment losses
from property, plant  --     --      --     14,823   --      --
and equipment and
prepayments
Net impact of
biological assets     38,999  43,616   7,106   11,409   5,666    923
fair value adjustment
                                                                
Adjusted profit for   34,727  31,592   5,147   190,734  166,801  27,177
the period
                                                                

Appendix VI
Le Gaga Holdings Limited
Reconciliation of Non-IFRS adjusted EBITDA to (loss)/profit for the period
For the three months and twelve months ended June 30, 2012 and 2013

                 Three Months Ended June 30,  Twelve Months Ended June 30,
                 2012      2013               2012       2013
                 RMB       RMB       US$      RMB        RMB        US$
                 (In thousands)
(Loss)/profit for (8,464)  (13,035) (2,124) 141,724   153,136   24,951
the period
Add:                                                            
Amortization of   14       14       2       75        56        9
lease prepayments
Depreciation      18,065   26,718   4,353   68,621    91,647    14,933
Finance costs     4,046    3,472    566     10,786    13,017    2,121
Income tax        128      (2,225)  (363)   4,543     (1,840)   (300)
expense
Non-cash
share-based       4,192    1,011    165     22,778    7,999     1,303
compensation
Impairment losses
from property,
plant and         --      --      --     14,823    --       --
equipment and
prepayments
Biological assets
fair value
adjustment        61,963   61,835   10,075  285,137   283,170   46,138
included in cost
of inventories
sold
Less:                                                           
Finance income    (909)    (3,397)  (553)   (8,556)   (8,382)   (1,366)
Changes in fair
value less costs  (22,964) (18,219) (2,969) (273,728) (277,504) (45,215)
to sell of
biological assets
                                                               
Adjusted EBITDA   56,071   56,174   9,152   266,203   261,299   42,574

CONTACT: For further information, please contact:
         PRChina
         Jane Liu
         Tel: (852) 2522 1838
         Email: jliu@prchina.com.hk
        
         Henry Chik
         Tel: (852) 2522 1368
         Email: hchik@prchina.com.hk

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