XI'AN, China, Dec 2, 2014 /PRNewswire/ -- China Green
Agriculture, Inc. (NYSE: CGA; "China Green Agriculture", "we"
or the "Company"), a company that mainly produces and distributes
humic acid-based compound fertilizers, other varieties of compound
fertilizers and agricultural products through its subsidiaries
in China, i.e.: Shaanxi TechTeam Jinong Humic Acid Product
Co., Ltd. ("Jinong"), Beijing Gufeng Chemical Products Co., Ltd.
("Gufeng") and a variable interest entity, Xi'an Hu County Yuxing
Agriculture Technology Development Co., Ltd. ("Yuxing") announced
that one of the Company's wholly-owned subsidiaries organized under
the laws of the PRC, Gufeng entered into a strategic cooperation
agreement with Sino-agri Mining Resource Exploration Co., Ltd.,
("Sino-agri"), a key subsidiary of China National Agricultural
Means of Production Group Corporation ("Sino-agri Group"). This
agreement is second to the cooperation agreement between Jinong and
Sino-agri Group, that the Company had disclosed previously in
October 2014.
Sino-agri Group is a nationwide large-scale enterprise group
that integrates production, circulation and service as well as
specializes in the agricultural means of production, such as
chemical fertilizer, pesticides, agricultural film, seeds,
agricultural machinery & implements, etc. It is an enterprise
at the level of the All China Federation of Supply and Marketing
Cooperatives and an exclusively-invested enterprise of China CO-OP
Group ( http://www.chinacoop.coop/English/About%20China%20co-ops ),
having the total assets of RMB30
billion, sales revenue of more than RMB72 billion, and the sales volume of more than
25 million tons for the agricultural materials of chemical
fertilizer, etc. (For more information, please refer to
http://english.sino-agri.com/show.php?id=10 ).
The objective of this strategic cooperation agreement is for
Sino-argi and Gufeng to work together with sales goals in three
years. Specifically, the agreement targets Sino-agri to sell
150,000 metric tons of compound fertilizers produced by Gufeng
("Gufeng Fertilizers") during calendar year 2015,
300,000-metric-ton Gufeng Fertilizers during 2016, and
500,000-metric-ton Gufeng Fertilizers in 2017 to promote Gufeng's
flagship products.
To accomplish the sales goals of the agreement, Sino-agri and
Gufeng are committed to strengthen the production and marketing of
Gufeng Fertilizers comprehensively. Specifically, Gufeng will team
up with Sino-agri to secure raw materials supplies by leveraging
Sino-agri's global access to related raw materials. With that,
Gufeng will deliver Sino-agri customized Gufeng Fertilizers upon
the orders from Sino-agri's heterogeneous customers by leveraging
Gufeng's flexible development and production process. In the
next three-year period, Gufeng will be able to tap needed
financial credit facilities from Sino-agri to fill the Sino-agri
orders. In addition to Gufeng Fertilizers, Gufeng is committed to
offer product support for Sino-agri's clients. The support
includes, but not limit to, soil testing, fertilizer comparison and
testing, as well as fertilizer solutions. In parallel, Sino-agri
will give priority to purchase Gufeng Fertilizer to replenish its
compound fertilizer inventory.
"The agreement between Gufeng and Sino-agri is a booster for
Gufeng to promote its sales in the next three years, " said Mr. Tao
Li, Chairman and CEO of the Company, "Sino-agri is the leading
agricultural conglomerate in China. I believe our partnership with
Sino-agri will be exceptional. I vision this agreement as a win-win
showcase between us and a large state-owned enterprise in
China."
About China Green Agriculture, Inc.
The Company produces and distributes humic acid-based compound
fertilizers, other varieties of compound fertilizers and
agricultural products through its wholly-owned subsidiaries, i.e.:
Jinong, Gufeng and a variable interest entity, Xi'an Hu County
Yuxing Agriculture Technology Development Co., Ltd. ("Yuxing").
Jinong produced and sold 125 different kinds of fertilizer products
as of September 30, 2014, all of which are certified by the
government of the People's Republic of
China (the "PRC") as Green Food Production Materials, as
stated by the China Green Food Development Center. Jinong currently
markets its fertilizer products to private wholesalers and
retailers of agricultural farm products in 27 provinces, four
autonomous regions, and three central-government-controlled
municipalities in the PRC. Jinong had 961 distributors in the
PRC as of September 30, 2014. Gufeng, and its
wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd.,
are Beijing-based producers of compound fertilizers, blended
fertilizers, organic compound fertilizers, and mixed
organic-inorganic compound fertilizers. As of September 30,
2014, Gufeng produced and sold 331 different kinds of fertilizer
products, and had 268 distributors in the PRC. For more
information, visit http://www.cgagri.com. The Company
routinely posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning the Company's business, products and financial results.
The Company's actual results may differ materially from those
anticipated in the forward-looking statements depending on a number
of risk factors including, but not limited to, the following:
general economic, business and environment conditions, development,
shipment, market acceptance, additional competition from existing
and new competitors, changes in technology, the execution of its
ten-year growth plan, a satisfactory conclusion of the pending
securities class action litigation and various other factors beyond
the Company's control. All forward-looking statements are expressly
qualified in their entirety by this Safe Harbor Statement and the
risk factors detailed in the Company's reports filed with the SEC.
China Green Agriculture undertakes no duty to revise or update any
forward-looking statements to reflect events or circumstances after
the date of this release, except as required by applicable law or
regulations.
For more information, please contact:
China Green Agriculture, Inc.
Ms. Ran Liu (English and Chinese)
Tel: +86-29-88266500
Email: liuran@cgagri.com
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SOURCE China Green Agriculture, Inc.