XI'AN, China, March 23 /PRNewswire-Asia/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has opened 16 directly-owned retail stores and selected 308 stores as "China Green Agriculture Authorized Retailer" of its Jinong branded HA compound fertilizer products.
In an effort to reach its goal of full production capacity utilization of 55,000 tons during the next three years while further expanding brand awareness of its Jinong products, the Company has successfully carried out two previously announced targeted marketing programs in the Shaanxi, Hebei, Anhui, Jiangsu and Guangzhou provinces: 1) Opening of Company directly-owned retail stores (the "Pilot Program"), which sells branded Jinong fertilizer products through CGA's designated sales personnel and 2) Selection of "China Green Agriculture Authorized Retailer", which are carefully chosen from the Company's distributor base of retail customers.
Since its launch of the Pilot Program in January 2010, the Company selected optimal locations for 16 directly-owned stores with each store having an assigned territory and not competing with any of the Company's existing 540 distributors. In addition, the Company has worked closely with its existing distributors and entered into agreements with 308 retail stores over the last three months, which allows for prominent displays of "China Green Agriculture Authorized Retailer" on exhibits, well-positioned standardized shelf and product displays in the retail shops supported by educational materials on proper product use, and the placement of branded commercial ads on delivery trucks in addition to billboard ads which target farmers with the product logo and tagline.
The success of the Pilot Program will be evaluated by measuring specific performance metrics taken during a six-month time frame, which includes, but is not limited to, total sales volume generated, profitability, Return on Investment (ROI) and brand awareness. The chain stores are strategically located in various cities with highly visible storefronts displaying the China Green Agriculture brand name. If the Pilot Program proves to be successful, the Company expects to add 9 Company-owned retail stores tactically located in additional provinces, bringing the total number of branded stores to 25 by the end of fiscal year 2010. In addition, the Company expects to have 500 "Authorized Retailers" by the end of the fiscal year ending June 30, 2010.
"We are pleased with the successful launch of these initiatives as we continue to leverage our existing distribution network to further build brand awareness and drive incremental sales and profitability" stated Mr. Tao Li, the Company's chairman and CEO. "We expect sales volume to increase by at least 40% per annum over the next three fiscal years due to anticipated strong sales of our HA compound fertilizer products, which could be accelerated through targeted acquisitions. With our expanded production capacity supported by a strong working capital position, we are poised to capitalize on further market share gains within the fertilizer industry as we strive to become a recognized market leader."
About China Green Agriculture, Inc.
China Green Agriculture, Inc. currently offers 141 different HA-based compound fertilizers, which are distributed via 540 individual distributors covering 21 provinces, 4 autonomous regions and 3 municipal cities in China. Its fertilizer products are certified by the Chinese government as "Green Food Production Materials." The leading five provinces which collectively accounted for 34.7% of the Company's fertilizer revenue for the three months ended December 31, 2009 are Shaanxi (9.1%), Shandong (6.8%), Guangdong (6.7%), Heilongjiang (6.2%) and Hebei (5.9%). For more information, visit http://www.cgagri.com .
Safe Harbor 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.
For more information, please contact:
In the US:
China Green Agriculture, Inc.
Ms. Ying Yang, Chief Financial Officer
Tel: +1-626-623-2575
Email: yangying@cgagri.com
OR
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
In China:
China Green Agriculture, Inc.
Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer
Tel: +86-29-8826-6368
Email: wangxilong@cgagri.com
