XI'AN, China, Oct. 13, 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 tripartite cooperation memorandum with its business strategy partners, Tea & Food Marketing Co., Ltd ("Tea-Food"), a COFCO subsidiary, and Xi'an Gem Grain Co., Ltd ("Gem Grain") to jointly develop the Company's new business model in growing the sales of fertilizers as well as green agriculture products.
Tea-Food, the major sales subsidiary of China National Cereals, Oils and Foodstuffs Corporation ("COFCO"), is mainly dedicated to the development of distribution channel for agriculture products in the COFCO family. The marketing effort of Tea-Food has been under aggressive expansion in current years. (For more information about Tea-Food, please refer to the link at http://www.tea-food.net/.) Being state-owned, COFCO is the largest food processing, manufacturer and trader in China. (For more details about COFCO, please refer to the link at http://www.cofco.com/en/ and http://en.wikipedia.org/wiki/COFCO_Group)
Xi'an Gem Grain Co., Ltd. ("Gem Grain"), a subsidiary of the Xi'an Techteam Investment Holding (Group) Co., Ltd, ("Techteam Investment") focuses on producing high-end private customized organic agricultural products and fresh agricultural products sales, was founded on March 2014. Techteam Investment is a holding company owned and controlled by Mr. Tao Li, Chairman and CEO of the Company.
The objectives of this tripartite cooperation memorandum are: 1) establish a tripartite strategic partnership to jointly develop new distribution models of green agriculture products from proprietary farming. 2) focus on the development of online, offline, online-to-offline ("O2O") distribution channels. 3) develop pilot marketing program jointly for the foregoing distribution channels.
Per the newly signed memorandum, the threesome agreed to combine competence of each own to market selected agriculture products batch by batch. The threesome had reached the consensus on the selection of the first batch of the agriculture products. The first batch is due to deliver for sales by the end of October.
As part of the tripartite cooperation, the Company will deliver quality agricultural products and materials for Gem Grain's proprietary farm. With that, Gem Grain will wholesale quality green foods to COFCO. The Company and Gem Grain will further assist COFCO in the marketing and sales of green foods via Tea-Food's distribution channels as well as the Company and Gem Grain's distribution channels.
Mr. Tao Li, Chairman and CEO of the Company, commented, "We are excited to sign the tripartite cooperation memorandum with our strategic partners. This co-op will provide an excellent opportunity for us to penetrate into the green food market strategically. I believe the co-op will enrich the selling of our products and help to boost the Company to become a leader in China's agricultural industry."
About China Green Agriculture, Inc.
The Company produces and distributes humic acid-based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slow-release fertilizers, highly concentrated water soluble fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries, 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 125 different kinds of fertilizer products as of June 30, 2014, all of which are certified by the government of the People's Republic of China ("PRC") as "Green Food Production Materials", as certified by the China Green Food Development Center. Jinong currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products through 926 distributors in 27 provinces, four autonomous regions, and three central government controlled municipalities in PRC. 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 June 30, 2014, Gufeng produced and sold 328 different kinds of fertilizer products, and marketed its products through 263 distributors among China. As of June 30, 2014, the Company had a total of 1,189 distributors and 453 different fertilizer products. 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 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
SOURCE China Green Agriculture, Inc.