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China Green Agriculture, Inc. Announces Fourth Quarter and Y

发布日期:2018-12-02 作者:918

XI'AN, China, Sept. 25 /Xinhua-PRNewswire-FirstCall/ -- China Green Agriculture, Inc. (OTC Bulletin Board: CGAG) ("China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced its financial results for the fourth quarter and year ended June 30, 2008.

Fourth Quarter 2008 Highlights

-- Net revenues totaled $7.2 million, up 18.1% year-over-year

-- Gross profit was $3.8 million, or 52.7% of revenues, up 18.9% year-

over-year

-- Operating income was $2.4 million, down 22.8% year-over-year

-- Net income was $1.3 million, down 53.9% year-over-year, or $0.07 per

basic and fully diluted share

-- Pro forma net income was $2.4 million, down 18.3% year-over-year, or

$0.13 per basic and fully diluted share

Full Year 2008 Highlights

-- Net revenues totaled $22.6 million, up 48.9% year-over-year

-- Gross profit was $12.8 million, or 56.7% of revenues, up 49.2% year-

over-year

-- Operating income was $9.3 million, up 23.0% year-over-year

-- Net income was $7.7 million, up 12.4% year-over-year, or $0.53 per

basic and fully diluted share

-- Pro forma net income was $9.5 million, up 37.0% year-over-year, or

$0.65 per basic and fully diluted share

-- Became a publicly traded company through a share exchange transaction

in December 2007 (the "Share Exchange")

-- Commenced construction on new facilities to increase production

capacity by 40,000 metric tons per year

-- Gained a net increase of 30 distributors throughout the fiscal year,

increasing the total to roughly 480

"We are pleased to complete China Green Agriculture's first year as a publicly listed company with solid top line growth," stated Mr. Tao Li, chairman, president and chief executive officer of the company. "Due to the high demand of our products, we have expanded our distributor network over the last year and have continued to develop highly effective, specialized fertilizers based on market demand. During the year, we also broke ground on our new manufacturing facilities which will expand our output capabilities by 40,000 metric tons."

Fourth Quarter 2008 Results

Net revenues for the fourth quarter of fiscal 2008 totaled $7.2 million, up 18.1% from $6.1 million in the same quarter of fiscal year 2007. The increase in revenues was primarily due to an increase in sales volume of humic acid organic liquid compound fertilizer resulting from an expanded sales network and greater product offerings as well as an increase in sales of agricultural products from the Company's greenhouse facility. In the fourth quarter of fiscal year 2008, fertilizer products accounted for $6.8 million, or 94.2% of total revenues, while products from the greenhouse facility accounted for $0.4 million, or 5.8% of total revenues. The decrease in revenue growth from previous quarters was primarily due to the earthquake in Sichuan of May 2008 and the floods in 14 provinces of June 2008 which disrupted the Company's distribution network.

Gross profit for the fourth quarter of fiscal year 2008 totaled $3.8 million, an increase of 18.9% from $3.2 million in the same quarter of 2007. Gross profit margin was 52.7% for the fourth quarter of fiscal year 2008, compared to 52.4% during the same period last year.

Operating expenses for the fourth quarter of 2008 were $1.4 million, up from $0.1 million in the same quarter of 2007. This increase was primarily due to higher selling and administrative expenses associated with being a public company, including legal and auditor fees. Operating expenses also included one time non cash stock-based compensation expenses of $0.5 million. Operating expenses were 20.1% of net revenues in the fourth quarter of fiscal year 2008, up from 2.4 % of net revenues in the corresponding quarter of fiscal year 2007.

Operating income for the fourth quarter of fiscal year 2008 was $2.4 million, down 22.8% from $3.1 million in the fourth quarter of fiscal year 2007. Operating margin was 32.6%, compared to 50.0% in the same quarter of 2007.

Net income for the fourth quarter of fiscal year 2008 was $1.3 million, or $0.07 per basic and fully diluted share, down 53.9% compared to net income of approximately $2.9 million, or $0.27 per basic and fully diluted share, during the same period in 2007.

Pro forma net income in the fourth quarter of 2008 was $2.4 million or $0.13 per fully diluted share, an 18.3% decrease from the fourth quarter of 2007.

Full Year Results

In the fiscal year ended June 30, 2008, net revenues were $22.6 million, up 48.9% from $15.2 million in fiscal year 2007. Gross profit was $12.8 million, up 49.2% from $8.6 million in the prior year. Gross margin was 56.7%, roughly unchanged from 56.5% one year ago. Operating income rose 23.0% to $9.3 million, while operating margin was 41.2%, compared to 49.9% in fiscal year 2007. Net income increased 12.4% to $7.8 million, or $0.53 per basic and fully diluted share, compared to $6.9 million, or $0.64 per basic and fully diluted share, a year ago. The financial year 2008 net income was impacted by non cash employee compensation, a one time charge in connection with the Share Exchange in December 2007, and liquidated damages resulting from the late effectiveness of the Company's registration statement. Pro forma net income in 2008 was $9.5 million or $0.65 per fully diluted share, a 37.0% increase from 2007.

Financial Condition

As of June 30, 2008, the Company had $16.6 million in cash and cash equivalents, working capital of $13.3 million and a current ratio of 2.13. The Company had $17.3 million in shareholders' equity compared to $8.8 million in fiscal year 2007. The Company generated $9.1 million in cash flows from operating activities in the fiscal year ended June 30, 2008.

In fiscal 2009, the Company expects capital expenditures of approximately $15 million, the majority of which will be used for the construction of its new production facility. Construction is expected to be complete in February 2009 with trial production scheduled to begin in March 2009. When full scale production begins in July 2009, total annual production capacity will increase by 40,000 metric tons.

Recent Events

-- In September 2008, China Green Agriculture appointed Ms. Ying Yang as

chief financial officer of the company.

Business Outlook

In fiscal 2009, the Company is confident that it will meet or exceed its make good net income target of $12.0 million, or $0.61 per basic and fully diluted share.

"Our 2009 fiscal year is already off to a healthy start as we continue to see strong demand for our products and progress in expanding production capacity. In December, we will implement technical upgrades and efficiency improvements at our existing facility that should increase annual output by 60%. We hope to have our new manufacturing lines up and running by the end of February 2009 which will allow us meet the demands of our growing customer base," said Mr. Li. "Over the next year we also expect to develop 15 new fertilizer products and grow our distribution base from 480 distributors to 540. At the same time, we plan on increasing our sales staff by roughly 10% to accelerate penetration in our current market of 27 provinces."

Conference Call

The Company will conduct a conference call at 9:00 AM Eastern Daylight Time on Thursday, September 25, 2008 to discuss results for its financial year ended June 30, 2008. To participate in the live conference call, please dial the following number approximately 15 minutes prior to the scheduled conference call time: 1-800-688-0796. International callers should dial 1- 617-614-4070. When prompted by the operator, please mention conference passcode 976 801 97. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on Thursday September 25, 2008, 11:00 AM Eastern Daylight Time. To access the replay, please dial 1-888-286-8010 and enter the passcode 29071265. International callers should dial 1-617-801-6888 and enter the same passcode 29071265.

About China Green Agriculture, Inc.

China Green Agriculture, Inc. produces and distributes humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., ("TechTeam"). TechTeam produces and sells approximately 10,000 metric tons of over 100 different kinds of fertilizer products per year. All of TechTeam's fertilizer products are certified by the PRC government as green products and suitable for growing Grade AA "green" foods, also known as green products that contain little or no chemical materials, as stated by the China Green Food Research Center.

Cautionary Statement

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

-- FINANCIAL TABLES FOLLOW --

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED FOR THE THREE MONTHS

JUNE 30, ENDED JUNE 30,

2008 2007 2008 2007

(audited) (audited) (unaudited) (unaudited)

Net sales $22,604,719 15,184,343 $7,222,630 6,113,371

Cost of goods sold 9,792,856 6,598,606 3,415,790 2,911,190

Gross profit 12,811,862 8,585,737 3,806,839 3,202,182

Operating expenses

Selling expenses 927,285 616,479 312,639 216,371

General and

administrative

expenses 2,567,661 395,207 1,136,899 (68,275)

Total operating

expenses 3,494,945 1,011,686 1,449,537 148,096

Income from

operations 9,316,917 7,574,051 2,357,302 3,054,086

Other income

(expense)

Other

income(expense) 43,694 957 4,047 2,414

Interest income 50,106 -- 22,882 (20,559)

Interest expense (933,053) (361,254) (648,692) (90,703)

Bank charges (6,663) -- (221) 425

Total other income

(expense) (845,916) (360,297) (621,983) (108,422)

Income before

income taxes 8,471,001 7,213,754 1,735,319 2,945,664

Provision for

income taxes 692,474 295,012 390,633 29,006

Net income 7,778,527 6,918,742 1,344,685 2,916,658

Other comprehensive

income

Foreign currency

translation gain 2,160,701 261,432 649,459 241,391

Comprehensive income $9,939,228 7,180,173 $1,994,144 3,158,048

Basic weighted

average shares

outstanding 14,688,250 10,770,669 18,318,529 10,770,669

Basic net earnings

per share $0.53 0.64 $ 0.07 0.27

Diluted weighted

average shares

outstanding 14,695,626 10,770,669 18,325,904 10,770,669

Diluted net earnings

per share 0.53 0.64 0.07 0.27

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

AUDITED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2008 AND 2007

ASSETS

2008 2007

Current Assets

Cash and cash equivalents $ 16,612,416 $ 81,716

Restricted cash 193,392 --

Accounts receivable, net 3,590,552 1,885,351

Inventories 3,988,979 1,773,802

Other assets 128,091 187,164

Advances to suppliers 512,845 208,026

Total Current Assets 25,026,275 4,136,059

Plant, Property and Equipment, Net 18,199,456 11,757,931

Construction In Progress 5,115,492 42,707

Intangible Assets, Net 1,180,159 1,163,078

Total Assets $ 49,521,382 $ 17,099,775

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Accounts payable $ 232,417 $ 221,592

Unearned revenue 88,950 81,341

Other payables and accrued expenses 455,228 301,625

Registration rights liability 506,142

Advances from other unrelated

companies 344,628 543,210

Amount due to related parties 31,121 666,618

Taxes payable 5,878,275 2,276,720

Short term loans 4,201,925 4,243,316

Total Current Liabilities 11,738,686 8,334,420

Common Stock, $.001 par value,

6,313,617 shares subject to

redemption 20,519,255 --

Commitment -- --

Stockholders' Equity

Preferred Stock, $.001 par value,

20,000,000 shares authorized, zero

shares issued and outstanding -- --

Common stock, $.001 par value,

780,000,000 shares authorized,

12,068,085 shares issued and

outstanding 12,068 10,771

Additional paid-in capital 1,200,077 2,642,517

Statutory reserve 1,882,797 880,252

Retained earning 11,764,079 4,988,097

Accumulated other comprehensive income 2,404,419 243,718

Total Stockholders' Equity 17,263,441 8,765,355

Total Liabilities and Stockholders'

Equity $ 49,521,382 $ 17,099,775

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

AUDITED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JUNE 30, 2008 AND 2007

2008 2007

Cash flows from operating activities

Net income $ 7,778,527 $ 6,918,742

Adjustments to reconcile net income

to net cash provided by operating

activities

Share capital contribution - rental

and interest paid by shareholders 10,216 65,894

Issuance of stock options for

compensation 477,487 --

Depreciation 988,240 372,862

Amortization 105,266 93,813

Decrease / (Increase) in current

assets

Accounts receivable (1,412,479) 71,450

Other receivables 89,759 93,115

Inventories (1,905,399) (578,072)

Advances to suppliers (265,955) (35,068)

Other assets (14,477) (8,038)

(Decrease) / Increase in current

liabilities

Accounts payable (73,799) (169,063)

Unearned revenue (1,309) (42,983)

Tax payables 3,161,272 1,602,499

Other payables and accrued expenses 180,261 398,377

Net cash provided by operating

Activities 9,117,611 8,783,528

Cash flows from investing activities

Acquisition of plant, property, and

equipment (5,840,159) (9,739,708)

Additions to construction in progress (4,782,862) (29,201)

Net cash used in investing activities (10,623,021) (9,768,909)

Cash flows from financing activities

Repayment of loan (481,914) (191,922)

Shares issuance cost (1,916,532) --

Proceeds issuance of shares subject to

redemption 20,519,255 --

Restricted cash (193,392) --

(Payments)/proceeds to/from related

parties (669,233) 1,210,223

Net cash provided by financing

activities 17,258,183 1,018,301

Effect of exchange rate change on cash

and cash equivalents 777,927 3,173

Net increase in cash and cash

equivalents 16,530,700 36,093

Cash and cash equivalents, beginning

balance 81,716 45,623

Cash and cash equivalents, ending

balance $ 16,612,416 $ 81,716

Supplement disclosure of cash flow

information

Interest expense paid $ (222,260) $ 322,734

Income taxes paid $ -- $ --

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FOR THE THREE MONTHS AND YEARS ENDED JUNE 30, 2008 AND 2007

Three Months Ended Three Months Ended

June 30, 2008 June 30, 2007

Net Income Diluted EPS Net Income Diluted EPS

Adjusted Amount -

Non GAAP $ 2,383,814 0.13 $ 2,916,658 0.64

Liquidated damages

(1) 506,142 0.03

Non-cash

compensation

expense (2) 532,987 0.04

Amount per

consolidated

statement of

operations $ 1,344,685 0.07 $ 2,916,658 0.27

Year Ended Year Ended

June 30, 2008 June 30, 2007

Net Income Diluted EPS Net Income Diluted EPS

Adjusted Amount -

Non GAAP $ 9,479,935 0.65 $ 6,918,742 0.64

Liquidated damages

(1) 506,142 0.03

Non-cash

compensation

expense (2) 532,987 0.04

Share exchange (3) 662,279 0.05

Amount per

consolidated

statement of

operations $ 7,778,527 0.53 $ 6,918,742 0.64

(1) Liquidated damages resulted from the late effectiveness of

registration statement on Form S-1 as of June 30, 2008

(2) Charges associated with stock options grant to directors and

management members

(3) One time charge in connection with the share exchange consummated on

December 26, 2007

Use of Non-GAAP Financial Measures

GAAP results for the three months and year ended June 30, 2008 include non-cash stock based compensation charges and one time fees and penalty charges. To supplement the Company's condensed consolidated financial statements presented on a GAAP basis, the Company has provided non-GAAP financial information excluding the impact of this item in this release. The Company's management believes that this non-GAAP measure provides investors with a better understanding of how the results relate to the Company's historical performance. A reconciliation of the adjustments to GAAP results appears in the table accompanying this press release. This additional non- GAAP information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP financial information that the Company provides also may differ from the non-GAAP information provided by other companies.

For more information, please contact:

Company Contact:

Mr. Tao Li

Chief Executive Officer

China Green Agriculture, Inc.

Tel: +86-29-8826-6386

Email: kingtone@techteam.com.cn

Investor Relations Contact:

Mr. Crocker Coulson

President

CCG Investor Relations

Tel: +1-646-213-1915 (NY Office)

Email: crocker.coulson@ccgir.com

Graham Reed, Financial Writer

Email: graham.reed@ccgir.com

本文源自: AG环亚官网

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