China Green Agriculture launches seven new fertiliser products

China Green Agriculture, Inc. launched seven new fertiliser products and added 49 new distributors in the fourth quarter ended June 30, 2012.

China Green Agriculture, Inc. (NYSE: CGA; "CGA" or the "Company"), mainly produces and distributes humic acid-based compound fertilisers, other varieties of compound fertilisers and agricultural products through its wholly-owned subsidiaries in China.

The seven new fertiliser products, including five broad-spectrum and two powder fertiliser products, were launched by Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd, the Company''s fertiliser operating subsidiary in Shaanxi province ("Jinong") during the fourth quarter ended June 30, 2012. During the quarter, Jinong retired 35 fertiliser products because the fertiliser products were either out-dated or upgraded fertiliser products had been rolled out. The launch and retirement of fertiliser products brought the total number of Jinong''s fertiliser products in use to 126.

The management estimated the seven new products contributed approximately RMB733,180 (US$115,256) to Jinong''s fertiliser revenues during the quarter. Jinong also added 46 new distributors during the quarter, which brought the total number of Jinong''s distributors to 758. These new distributors contributed approximately RMB10,852,450 (US$1,706,005) to Jinong''s fertiliser revenues during the quarter. During the three months ended June 30, 2012, Jinong''s revenue attributable to the new products distributed by its new distributors was RMB280,600 (US$44,110).

Beijing Gufeng Chemical Products Co., Ltd., the Company''s fertiliser operating subsidiary in Beijing ("Gufeng") added three new distributors during the quarter, which brought the total number of Gufeng''s distributors to 185. These three new distributors contributed approximately RMB3,024,235 (US$475,410) to Gufeng''s fertiliser revenues for the quarter ended June 30, 2012. During the quarter ended June 30, 2012, no revenue of Gufeng was attributable to the new products distributed by its new distributors.

"I am very pleased that these new products reached the market during the quarter ended June 30, 2012. They further demonstrated our long-term commitment to faster product development process and market roll-out of new products. Our R&D capacity and new business development capability constituted the main drivers of the company''s growth and will be continuously strengthened in the future to realise our 10-year growth plan. The long-term commitment, based on our market insight, is to secure a leading position for the Company in the fertiliser industry," said Tao Li, the Company''s Chairman and CEO.

The Company mainly produces and distributes humic acid-based compound fertilisers, other varieties of compound fertilisers and agricultural products through its wholly-owned subsidiaries, i.e.: Jinong, Gufeng, Xi''an Jintai Agriculture Technology Development Company ("Jintai") and Xi''an Hu County Yuxing Agriculture Technology Development Co., Ltd. ("Yuxing").

Jinong produced and sold 126 different kinds of fertiliser products as of June 30, 2012, all of which are certified by the PRC government as Green Food Production Materials, as stated by the China Green Food Development Centre. Jinong currently markets its fertiliser products to private wholesalers and retailers of agricultural farm products in 22 provinces, four autonomous regions, and three central-government-controlled municipalities in the PRC. Jinong had 758 distributors in China as of June 30, 2012.

Gufeng, and its wholly-owned subsidiary, Beijing Tianjuyuan Fertiliser Co., Ltd., are Beijing-based producers of compound fertiliser, blended fertiliser, organic compound fertiliser, and mixed organic-inorganic compound fertiliser. As of June 30, 2012, Gufeng produced and sold 317 different kinds of fertiliser products, and had 185 distributors in China.