XI'AN, China, Oct. 27, 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, today announced that one of the Company's wholly-owned subsidiaries organized under the laws of the PRC, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong"), entered into a strategic cooperation agreement with China National Agricultural Means of Production Group Corporation ("Sino-agri Group", or "Sino-agri") to promote the sales of the Jinong's fertilizer products.
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 (The introduction of Sino-agri Group is available at http://english.sino-agri.com/show.php?id=10).
The goal of this strategic cooperation agreement is to require both parties to achieve the following sales goals in the next three years: Sino-agri Group sells 10,000 metric tons high-concentrated fertilizer produced by Jinong in the calendar year of 2015; 20,000 metric tons in 2016 and 50,000 metric tons in 2017.
To achieve the sales goal, Sino-agri and Jinong will conduct cooperation in various aspects, including but not limited to, Sino-agri and Jinong will share certain exclusive business information, execute joint procurement projects, and launch collaborative marketing service to facilitate fertilizer production and sales.
The mission under the agreement is to establish a long-term strategic partnership that is mutually beneficial to both parties. To take advantage of Sino-agri Group's state-owned advantage in fertilizer distribution both domestic and overseas, Jinong will work with Sino-agri Group to improve Jinong's supply chain management in the procurement of raw material, and the sale of concentrated fertilizer products. Specifically, Sino-agri Group will provide quality raw materials and favorite lead time to Jinong. In return, Jinong will deliver to Sino-agri quality concentrated fertilizer with priority at fair market price. In addition, Sino-agri Group will offer large support of working capital and investment to Jinong if Jinong needs liquidity and capital investment to expand production. In the mean time, Jinong concentrates on differentiating the market demand for Sino-agri and will customize corresponding product development and production process respectively.
Mr. Tao Li, Chairman and CEO of the Company, commented, "We are very excited for having entered this partnership with Sino-agri. With our big brother, Sino-agri, we will showcase to the public an unprecedented collaboration between the large-sale state-owned enterprise and the small-cap company in the agriculture industry. Under the framework of this agreement, I foresee that we will be leveraged by our big brother, Sino-agri's large scale of operation and ample liquidity; and Sino-agri, our big brother, will also benefit from his little brother, Jinong's spirit of entrepreneurship back to back."
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, 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 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.
Mr. Fang Wang (English and Chinese)
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SOURCE China Green Agriculture, Inc.