XI'AN, China, July 14, 2016 /PRNewswire/ -- China Green Agriculture, Inc. (NYSE: CGA) ("China Green Agriculture", "CGA" 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, today announced that its wholly-owned subsidiary Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., a company organized under the laws of the People's Republic of China ("Jinong"), as authorized by the board of directors of the Company and Jinong, had held a two-day senate conference during July 11th and 12th in Xi'an, and founded the "CGA Techteam Jinong Corporate Senate" in Jinong (the "Senate").
The founding of the Senate was subsequent to the Company's previously announced strategic acquisitions from last month. On June 30th, 2016, Jinong entered into acquisition agreements with the shareholders of six companies. (The detailed summary of these acquisitions is available at: https://www.sec.gov/Archives/edgar/data/857949/000114420416111996/v443872_8k.htm)
The mandate of the Senate is to lead the Company to transform from largely a basic material manufacturer to an open platform based on a variety of new business models and products, which transmit external partners with a series of needs, such as agricultural materials, and services to serve agricultural users.
The mission of the Senate in the current fiscal year is to build a new business segment for the Company. The new business segment will be aimed to become comparable to the Company's existing business in term of revenue contribution. The new segment focuses on the wholesale, retail, and distribution of key production supplies in the agriculture industry. It will engage in the sales of fertilizers, seeds, pesticide, and herbicide etc, including but not limited to, the fertilizer products manufactured by the Company.
Historically, the acquired six companies had been focusing on sales distribution of such products mentioned above over years. The members of the Senate are elected from: all the founders of the acquired six companies, and key members in the Company's and Jinong's management team. The Senate targets to grow the new segment's yearly sales comparable to the Company's recent yearly sales excluding the new segment. In the Senate, members will work in several different committees to jointly achieve the yearly sales goal.
The Senate consists of the following three committees: the Committee of Strategy and Investments, the Committee of Risk Management, and the Committee of Business and Markets. As the strategy chamber, each committee will launch initiatives and make key business decisions for the committee's responsibility. Specifically, the functions of the committees are:
- The Committee of Strategy and Investments: seek potential target companies for new business combination and expansion; design deal structure and negotiate deal terms; execute acquisitions with viable financing solutions.
- The Committee of Risk Management: implement risk management framework, install internal control and audit, ensure compliance and reporting across all subsidiaries.
- The Committee of Business and Markets: design new business models and implement such models, link and unify fragmented markets, optimize marketing resource sharing and allocation across subsidiaries.
"We will become a bridge that transmits agricultural materials such as fertilizers manufactured in the city to the countryside, and conversely, bring the agriculture products from the field back to the metro," said Mr. Zhuoyu Li, President of the Company, also the architect and leader of the acquisitions. "Agriculture is the foundation of our country. It serves the basic needs for all people in both cities and countryside."
"CGA will not be limited to the fertilizer industry, we will leap forward to the broader agricultural market." Mr. Tao Li, The Chairman and CEO of the Company, stated, "The founding of the Senate is an important open approach for the Company's agriculture material business. We will improve customization, distribution and development in every segment, and eventually realize a new commercially civilized ecosystem in agriculture."
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 130 different kinds of fertilizer products as of March 31, 2016, 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 1,064 distributors in the PRC as of March 31, 2016. 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, 2016, Gufeng produced and sold 332 different kinds of fertilizer products, and had 299 distributors in the PRC. For more information, visithttp://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. Ting Shi (English and Chinese)
SOURCE China Green Agriculture, Inc.