XI'AN, China, May 11, 2015
/PRNewswire/
--
- Third Quarter of FY 2015 net sales increased 13.1%
to $79.5 million; net income increased 37.6% to $9.9
million with EPS of $0.29.
- The Company Provided Fourth Quarter of Fiscal Year 2015
Guidance Range: Revenue, Net Income and EPS of between $70 million and $84 million, $6 million and
$8 million, and $0.17 and
$ 0.22 based on 35.6 million fully
diluted shares, respectively.
- The Company Updated Guidance Range of Fiscal Year 2015 as the
following: Revenue, Net Income and EPS of between $255 million and $269 million, $29 million
and $31 million, and $0.81 and
$0.87 based on 35.6 million fully
diluted shares, respectively.
China Green Agriculture, Inc. (NYSE: CGA; "China Green
Agriculture" or the "Company"), a company mainly produces and
distributes humic acid-based compound fertilizers, other varieties
of compound fertilizers and agricultural products through its
subsidiaries in China, today
announced its financial results for the quarter ended March 31, 2015.
Financial Summary
Third Quarter 2015
Results (USD)
|
(Three
Months ended March 31, 2015)
|
|
|
|
|
|
Q3 FY2015
|
Q3 FY2014
|
CHANGE (%)
|
Net Sales
|
$79.5
million
|
$70.3
million
|
13.1%
|
Gross
Profit
|
$28.2
million
|
$26.2
million
|
7.8%
|
Net Income
|
$9.9
million
|
$7.2
million
|
37.6%
|
EPS
(Diluted)
|
$0.29
|
$0.23
|
25.9%
|
Weighted Average
Shares Outstanding (Diluted)
|
$34.8 million
|
$31.8 million
|
9.3%
|
|
(Nine Months ended
March 31, 2015)
|
|
|
|
|
|
Q3 FY2015
|
Q3 FY2014
|
CHANGE (%)
|
Net Sales
|
$184.8
million
|
$161.2
million
|
14.6%
|
Gross
Profit
|
$75.8
million
|
$67.5
million
|
12.3%
|
Net Income
|
$23.2
million
|
$21.3
million
|
9.3%
|
EPS
(Diluted)
|
$0.69
|
$0.68
|
1.8%
|
Weighted Average
Shares Outstanding (Diluted)
|
$33.5
million
|
$31.2
million
|
7.3%
|
"We are very pleased with our performance of business operation,
generating $9.9 million net income in
the third quarter ended March 31,
2015," said Mr. Tao Li, Chairman and Chief Executive Officer
of China Green Agriculture." Looking ahead to the fourth quarter of
fiscal year 2015, we expect net sales of $70 to $84 million, net income of $6 to
$8 million, and EPS of $0.17 to
$0.22 based on 35.6 million
fully diluted weighted average shares outstanding for the fourth
quarter ending June 30, 2015. We are confident in achieving
our target for the fourth quarter of fiscal year 2015. "
Third Quarter of FY2015 Results of Operations
Net Sales
Total net sales for the three months ended March 31, 2015 were $79,487,215, an increase of $9,191,234, or 13.1%, from $70,295,981 for the three months ended
March 31, 2014. This increase was due
to an increase in Gufeng's and Jinong's net sales.
For the three months ended March 31,
2015, Jinong's net sales increased $3,078,813, or 10.2%, to $33,289,392 from $30,210,579 for the three months ended
March 31, 2014. This increase was
mainly attributable to the greater sales of humic acid fertilizer
products including the liquid and powder fertilizers with a higher
unit price during this period as a result of the Company's
aggressive marketing strategy and the increased number of its
distributors.
For the three months ended March 31,
2015, net sales at Gufeng were $45,022,731, an increase of $5,942,620, or 15.2% from $39,080,111 for the three months ended
March 31, 2014. The increase was
mainly attributable to Gufeng's expanded marketing promotion
strategy, especially one large amount sale to Sino-agri Group
during the last three months.
For the three months ended March 31,
2015, Yuxing's net sales were $1,175,092, an increase of $169,801 or 16.9%, from $1,005,291 during the three months ended
March 31, 2014. The increase was
mainly attributable to the increase in market demand on Yuxing's
top grade flowers during the last three
months.
Cost of Goods Sold
Total cost of goods sold for the three months ended March 31, 2015 was $51,296,698, an increase of $7,161,432, or 16.2%, from $44,135,266 for the three months ended
March 31, 2014. This increase was
mainly due to the 13.1% increase in net sales.
Cost of goods sold by Jinong for the three months ended
March 31, 2015 was $13,623,964, an increase of $1,449,116, or 11.9%, from $12,174,848 for the three months ended
March 31, 2014. The increase was
primarily attributable to Jinong's higher net sales.
Cost of goods sold by Gufeng for the three months ended
March 31, 2015 was $36,814,676, an increase of $5,555,791, or 17.8%, from $31,258,885 for the three months ended
March 31, 2014. This increase was
primarily attributable to an increase in the cost of raw materials
and an increase in the sales of fertilizer products.
For the three months ended March 31,
2015, cost of goods sold by Yuxing was $858,058, an increase of $156,525, or 22.3%, from $701,533 for the three months ended March 31, 2014. This increase was mainly due to
the increase in Yuxing's net sales and raw materials
costs.
Gross Profit
Total gross profit for the three months ended March 31, 2015 increased by $2,029,802 to $28,190,517, as compared to $26,160,715 for the three months ended
March 31, 2014. Gross profit margin
was 35.5% and 37.2% for the three months ended March 31, 2015 and 2014, respectively.
Gross profit generated by Jinong increased by $1,629,698, or 9.0%, to $19,655,429 for the three months ended
March 31, 2015 from $18,035,731 for the three months ended
March 31, 2014. Gross profit margin
from Jinong's sales was approximately 59.1% and 59.7% for the three
months ended March 31, 2015 and 2014,
respectively. The slight decrease in gross profit margin was mainly
due to a small increase in product costs.
For the three months ended March 31,
2015, gross profit generated by Gufeng was $8,208,054, an increase of $386,828, or 4.9%, from $7,821,226 for the three months ended
March 31, 2014. Gross profit margin
from Gufeng's sales was approximately 18.2% and 20.0% for the three
months ended March 31, 2015 and 2014,
respectively. The decrease in gross profit margin was mainly due to
the increased weight for lower-margin products sales in Gufeng's
total sales answering to market demand.
For the three months ended March 31,
2015, gross profit generated by Yuxing was $317,034, an increase of $13,276, or 4.4% from $303,758 for the three months ended March 31, 2014. The gross profit margin was
approximately 27.0% and 30.2% for the three months ended
March 31, 2015 and 2014,
respectively. This decrease in gross profit margin was mainly due
to an increase in the cost of raw materials for the three months
ended March 31, 2015, compared to the
same period in 2014.
Selling Expenses
The selling expenses consisted primarily of salaries of sales
personnel, advertising and promotion expenses, freight-out costs
and related compensation. Selling expenses were $2,054,025, or 2.6%, of net sales for the three
months ended March 31, 2015, as
compared to $932,594 or 1.3% of net
sales for the three months ended March 31,
2014, an increase of $1,121,431, or 120.2%. The selling expenses of
Yuxing were $11,615 or 1.0% of
Yuxing's net sales for the three months ended March 31, 2015, as compared to $12,831, or 1.3% of Yuxing's net sales for the
three months ended March 31, 2014.
The selling expenses of Gufeng were $435,347 or 1.0% of Gufeng's net sales for the
three months ended March 31, 2015, as
compared to $518,400, or 1.3% of
Gufeng's net sales for the three months ended March 31, 2014. The selling expenses of Jinong
for the three months ended March 31,
2015 were $1,607,063 or 4.8%
of Jinong's net sales, as compared to selling expenses of
$401,362, or 1.3% of Jinong's net
sales for the three months ended March 31,
2014. The increase in Jinong's selling expenses was due to
Jinong's expanded marketing efforts and the increase in shipping
costs.
Selling Expenses - amortization of deferred
assets
The selling expenses - amortization of the Company's deferred
assets were $10,604,586, or 13.3%, of
net sales for the three months ended March
31, 2015, as compared to $10,188,098 or 14.5% of net sales for the three
months ended March 31, 2014, an
increase of $416,488, or 4.1%. This
increase was due to the increased amortization of the deferred tax
assets for the three months ended March 31,
2015 related to the Company's business strategy implemented
since December 2013 that assists
distributors in certain marketing efforts and develops standard
stores to expand the Company's competitive advantages and market
shares.
General and Administrative Expenses
General and administrative expenses consisted primarily of
related salaries, rental expenses, business development,
depreciation and travel expenses incurred by the Company's general
and administrative departments and legal and professional expenses
including expenses incurred and accrued for certain litigations.
General and administrative expenses were $2,606,749, or 3.3% of net sales for the three
months ended March 31, 2015, as
compared to $3,463,127, or 4.9%, of
net sales for the three months ended March
31, 2014, a decrease of $856,378, or 24.7%. The decrease in general
and administrative expenses was mainly due to the related expenses
in the stock compensation awarded to the employees which
amounted to $1,081,125 for the three
months ended March 31, 2015 as
compared to $1,833,997 for the three
months ended March 31, 2014.
Net Income
Net income for the three months ended March 31, 2015 was $9,916,194, an increase of $2,707,063, or 37.6%, compared to $7,209,131 for the three months ended
March 31, 2014. The increase was
attributable to the increase in sales offset by lower general and
administrative expenses and no impairment of assets in the quarter
ended March 31, 2015. Net income as a
percentage of total net sales was approximately 12.5% and 10.3% for
the three months ended March 31, 2015
and 2014, respectively.
The First Nine Months of FY2015 Results of Operations
Net Sales
Total net sales for the nine months ended March 31, 2015 were $184,840,179, an increase of $23,606,250 or 14.6%, from $161,233,929 for the nine months ended
March 31, 2014. This increase was
largely due to the increase in Jinong's and Gufeng's net sales.
For the nine months ended March 31,
2015, Jinong's net sales increased $10,685,047, or 12.1%, to $98,946,250 from $88,261,203 for the nine months ended
March 31, 2014. This increase was
mainly attributable to the greater sales of humic acid fertilizer
products including the liquid and powder fertilizers during this
period as a result of the increased number of the distributors and
the Company's marketing efforts.
For the nine months ended March 31,
2015, net sales at Gufeng were $82,787,612, an increase of $12,469,403, or 17.7%, from $70,318,209 for the nine months ended
March 31, 2014. The increase
was mainly attributable to Gufeng's expanded marketing promotion
strategy, especially one large amount sale to Sino-agri Group
during the last nine months.
For the nine months ended March 31,
2015, Yuxing's net sales were $3,106,317, an increase of $451,800, or 17.0%, from $2,654,517 during the nine months ended
March 31, 2014. The increase was
mainly due to the increase in sales demand on Yuxing's top-grade
flowers during the last nine months.
Cost of Goods Sold
Total cost of goods sold for the nine months ended March 31, 2015 was $109,066,234, an increase of $15,314,223, or 16.3%, from $93,752,011 for the nine months ended
March 31, 2014. This increase was
mainly due to the 14.6% increase in net sales.
Cost of goods sold by Jinong for the nine months ended
March 31, 2015 was $39,318,627, an increase of $2,304,686, or 6.2%, from $37,013,941 for the nine months ended
March 31, 2014. Although Jinong
lowered the product costs for the mix of products being sold, the
increase was primarily attributable to its higher net sales.
Cost of goods sold by Gufeng for the nine months ended
March 31, 2015 was $67,448,840, an increase of $12,689,211, or 23.2%, from $54,759,629 for the nine months ended
March 31, 2014. This increase was
primarily attributable to an increase in the cost of raw materials
and an increase in the sales of fertilizer products.
For the nine months ended March 31,
2015, cost of goods sold by Yuxing was $2,298,767, an increase of $320,326, or 16.2%, from $1,978,441 for the nine months ended March 31, 2014. This increase was mainly due to
the 17.0% increase in Yuxing's net sales.
Net Income
Net income for the nine months ended March 31, 2015 was $23,230,713, an increase of $1,967,388, or 9.3%, compared to $21,263,325 for the nine months ended
March 31, 2014. The increase was
attributable to the increase in net sales offset by an increase in
selling expenses and selling expenses -- amortization of deferred
asset. Net income as a percentage of total net sales was
approximately 12.6% and 13.2% for the nine months ended
March 31, 2015 and 2014,
respectively.
Financial Condition
As of March 31, 2015, cash and
cash equivalents were $74,785,851, an
increase of $47,895,530, or 178.1%,
from $26,890,321 as of June 30, 2014. Net cash used in investing
activities for the nine months ended March
31, 2015 was $7,675,141, a
decrease of $58,417,165, or 88.4%
from $66,092,306 for the nine months
ended March 31, 2014. Net cash used
in financing activities for the nine months ended March 31, 2015 was $2,689,731, a decrease of $15,902,631 or 120.4% compared to cash provided
by financing activities of $13,212,900 for the nine months ended
March 31, 2014. We had accounts
receivable of $71,832,200 as of
March 31, 2015, as compared to
$88,781,608 as of June 30, 2014, a decrease of $16,949,408 or 19.1%, which is mainly
attributable to Gufeng.
Fourth Quarter Fiscal Year 2015 and Fiscal Year 2015
Guidance
For the fourth quarter ending June 30,
2015, management expects net sales of $70 to $84 million, net income of $6 to $8 million, and EPS of $0.17 to $0.22 based on 35.6 million fully
diluted shares. For the fiscal year ended June 30, 2015,
management expects net sales of $255 million to $269 million, net income of $29 million to
$31 million, and an EPS of
$0.81 to $0.87 based on 35.6 million fully diluted
shares.
Conference Call
The Company will hold a conference call at 7:00 a.m.
ET on Monday, May 11, 2015. Any interested
participants are welcome to join in the call by following the
dial-in details as set out below. When prompted by the operator,
please indicate "China Green Agriculture's Third Quarter Fiscal
Year 2015 Financial Results" to join the call.
Event
|
CGA Third
Quarter Fiscal Year FY2015 Conference Call
|
Date
|
May 11,
2015
|
Time
|
7.00 a.m
ET
|
To participate in the conference call, please dial any of the
following numbers:
PARTICIPANT DIAL IN (TOLL
FREE): 1-888-346-8982
PARTICIPANT INTERNATIONAL DIAL
IN: 1-412-902-4272
Hong Kong-Local
Toll: 852-301-84992
Beijing-Local
Toll: 86-105-357-3132
China Toll Free: 86-400-120-1203
Hong Kong Toll
Free: 852-800-905-945
To access the replay, please dial any of the following
numbers:
US Toll Free: 1-877-344-7529
International Toll: 1-412-317-0088
Canada Toll Free: 1-855-669-9658
Replay Access
Code: 10065737
End Date: May 18,
2015
The replay will be available 1 hour after the end of the
conference.
Teleconference Replay Available Until: May
18, 2015
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.:
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"). Jinong produced and
sold 121 different kinds of fertilizer products as of March 31, 2015, 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 978 distributors in the PRC
as of March 31, 2015. 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 March 31, 2015, Gufeng produced
and sold 332 different kinds of fertilizer products, and had 278
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
To view the original version on PR Newswire,
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SOURCE China Green Agriculture, Inc.