XI'AN, China, March 15, 2011 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizers, blended fertilizers, organic compound fertilizers and mixed organic-inorganic compound fertilizers through its wholly owned subsidiaries in China, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong") and Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), today announced that the China Humic Acid Industry Association ("CHAIA" or "the Association") is recommending Jinong's humic acid fertilizer products as model anti-drought products.
CHAIA is a nationwide non-profit organization sponsored by the Chinese government that functions as the humic acid industry's self-regulatory body. With dozens of corporate members, the Association aims to regulate and thus improve the humic acid market in China. In addition to its oversight of the market, the Association provides its members with information about market trends, product updates, and regulatory changes. It plays a critical role in advocating government's support for intellectual property protection and environment-friendly humic acid products as well as in designing and implementing protocols for humic acid products in China.
In February 2011, the Association extensively researched humic-acid products available in the market for combating the ongoing drought in northern China. Subsequently, the Association exhorted its members to develop new anti-drought fertilizer products and recommended Jinong's humic acid anti-drought products for their exceptional anti-drought benefits.
In the months leading to the Association's market research, Jinong developed a few anti-drought fertilizer products. One of these products, released to the market in December 2010 to fight the effects of drought on wheat crops, was and has been selected by the governments of Dali County, Shaanxi province and Dancheng County, Henan province for their emergency anti-drought response. From January 1 to February 28, Jinong's sales volume for anti-drought fertilizer products reached 1,112 metric tons, an increase by 526 metric tons or approximately 90% compared to the Company's existing sales plan.
"I am very pleased that CHAIA has recommended our products after extensive and thorough research and appraisal," commented Mr. Tao Li, Chairman and Chief Executive Officer of CGA. "To better assist our customers, we are committed to expediting our development process and shortening the roll-out period for anti-drought products in order to help relieve the plight of the farmers in the drought affected areas."
About China Green Agriculture, Inc.
The Company mainly produces and distributes humic acid-based compound fertilizers and other varieties of compound fertilizers through its wholly-owned subsidiaries, Jinong and Gufeng. Jinong produces and sells 146 different kinds of fertilizer products, all of which are certified by the PRC government as Green Food Production Materials, as stated by the China Green Food Research Center. Jinong currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 21 provinces, four autonomous regions and three central-government-controlled municipalities in the PRC. For the three months ended December 31, 2010, the top five provinces (or municipalities) of fertilizer sales accounted for 29.2% of total revenues. The five provinces (or municipalities) and their respective percentage contribution to total fertilizer revenues were Hebei (7.0%), Jilin (6.8%), Liaoning (6.4%), Shaanxi (4.8%) and Beijing (4.1%). Jinong had 598 distributors in China. Gufeng had 157 distributors including some large state-owned enterprises. The recently acquired company, Gufeng and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd., are Beijing-based producers of compound fertilizer, blended fertilizer, organic compound fertilizer and mixed organic-inorganic compound fertilizer. Gufeng produces and sells over 300 different kinds of fertilizer products, and has over 150 distributors nationwide. 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 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 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 regulation.
For investor and media inquiries, please contact:
China Green Agriculture, Inc.
Mr. Ken Ren, Chief Financial Officer
SOURCE China Green Agriculture, Inc.