United
States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 10, 2014
CHINA GREEN AGRICULTURE, INC.
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(Exact name of Registrant
as specified in charter)
Nevada |
001-34260 |
36-3526027 |
(State or other jurisdiction |
(Commission File No.) |
(IRS Employer |
of Incorporation) |
|
Identification No.) |
300 Walnut
Street Suite 245
Des Moines, IA 50309
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including
area code: (515) 897-2421
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the
Securities Act (17CFR230.425) |
| ¨ | Soliciting material pursuant to Rule14a-12 under the
Exchange Act (17CFR240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17CFR240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17CFR240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On November 10, 2014,
China Green Agriculture, Inc., a corporation incorporated in the State of Nevada (the “Company”), issued a press release
announcing (i) certain financial results for the fiscal quarter ended September 30, 2014; (ii) guidance for the revenues and net
incomes for the fiscal year ended June 30, 2015 and the second quarter ended December 31, 2015; and (iii) a conference call to
be held by the Company on Monday, November 10, 2014 at 7:30 a.m. Eastern Time to discuss the results of operations for the quarter
ended September 30, 2014. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following is filed as an exhibit to
this report:
Exhibit No. |
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Description
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99.1
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Press Release, dated November 10, 2014. |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: November 10, 2014
CHINA GREEN AGRICULTURE, INC. |
|
(Registrant) |
|
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By: /s/ Tao Li |
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Tao Li, |
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President and Chief Executive Officer |
Exhibit 99.1
China
Green Agriculture, Inc. Reports the Financial Results for the First Quarter of Fiscal Year 2015 with
Revenue Meeting the Guidance
and Net income Beating the Guidance, Provides Guidance of Revenue and Net
Income for the Second Quarter of Fiscal Year 2015,
and Confirms Guidance
of Revenue and Net Income for Fiscal Year 2015
XI'AN, China, November
10, 2014 /PRNewswire-Asia-FirstCall/ --
| · | First Quarter of FY
2015 net sales increased 2.0% to $51.3 million; net income decreased 22.0% to $8.1 million with EPS of $0.25.
The revenues met the previously disclosed guidance of $50.7 to $54.3 million, net income beat the
previously disclosed guidance of $5.9 to $7.8 million by 0.3 million, and EPS beat the previously disclosed guidance of $0.18
to $0.24 by $0.01 per share. |
| · | The Company
Provided Second Quarter of Fiscal Year 2015 Guidance Range: Revenue, Net Income and EPS of between $49 million and $53
million, $3 million and $6 million, and EPS of $0.07 and $ 0.17 based on 35.2 million fully diluted shares, respectively. |
| · | The Company Confirmed Guidance Range of Fiscal Year
2015 as the following: Revenue, Net Income of between $255 million and $269 million, $26 million and $35 million. Updated
EPS of $0.74 and $1.0 based on 35.2 million fully diluted shares, respectively. |
China Green Agriculture,
Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a company mainly produces and distributes
humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries
in China, today announced its financial results for the quarter ended September 30, 2014.
Financial Summary
First Quarter 2015 Results (USD) |
(three months ended September 30, 2014) |
| |
| |
| |
|
| |
Q1 FY2015 | |
Q1 FY2014 | |
CHANGE (%) |
Net Sales | |
$51.3 million | |
$50.3 million | |
2.0% |
Gross Profit | |
$24.7 million | |
$22.5 million | |
9.8% |
Net Income | |
$8.1 million | |
$10.4 million | |
(22.0)% |
EPS (Diluted) | |
$0.25 | |
$0.35 | |
(27.8)% |
Weighted Average Shares Outstanding (Diluted) | |
$32.4 million | |
$30.0 million | |
8.0% |
“We are
very pleased with our performance of business operation, generating $8.1 million net income in the first quarter ended September
30, 2014," said Mr. Li Tao, Chairman and Chief Executive Officer of China Green Agriculture." Looking
ahead to the second quarter of fiscal year 2015, we expect net sales of $49 to $53 million, net income of $3 to $6 million,
and EPS of $0.07 to $ 0.17 based
on 35.2 million fully diluted weighted average shares outstanding for the second quarter
ended December 31, 2014. We are confident in achieving our target for the second
quarter of fiscal year 2015. "
The First Three
Months of FY2015 Results of Operations
Total net sales for the three months ended
September 30, 2014 were $51,301,790, an increase of $998,443, or 2.0%, from $50,303,347 for the three months ended September 30,
2013. This increase was due to an increase in Jinong’s net sales offset by a decrease in Gufeng’s net sales.
For the three months ended September 30,
2014, Jinong’s net sales increased $2,702,163, or 8.5%, to $34,464,165 from $31,762,002 for the three months ended September
30, 2013. This increase was mainly attributable to Jinong’s latest implementation of the sales
strategy that focus on promoting the sales of high-margin liquid fertilizer despite the decrease in Jinong’s sales volume
during the last three months.
For the three months ended September 30,
2014, net sales at Gufeng were $15,986,074, a decrease of $1,770,008 or 10.0% from $17,756,082 for the three months ended September
30, 2013. The decrease was mainly attributable the delayed fertilization time due to climatic impact compared to the same period
in the last year.
For the three months ended September 30,
2014, Yuxing’s net sales were $851,551, an increase of $66,288 or 8.4%, from $785,263 during the three months ended
September 30, 2013. The increase was mainly attributable to the increased in sales demand of Yuxing’s top-grade flowers.
Total cost of goods sold for the three
months ended September 30, 2014 was $26,628,356, a decrease of $1,205,303, or 4.3%, from $27,833,659 for the three months ended
September 30, 2013. This decrease was mainly due to the 10.0% decrease in Gufeng’s net sales.
Cost of goods sold by Jinong for the three
months ended September 30, 2014 was $13,380,623, a decrease of $589,208, or 4.2%, from $13,969,831 for the three months ended September
30, 2013. The decrease was primarily attributable to lower product costs for the mix of products being sold.
Cost of goods sold by Gufeng for the three
months ended September 30, 2014 was $12,599,185, a decrease of $610,447, or 4.6%, from $13,209,632 for the three months ended September
30, 2013 as a result of the reduction in net sales.
For three months ended September 30, 2014,
cost of goods sold by Yuxing was $648,548, a decrease of $5,648, or 0.9%, from $654,196 for the three months ended September 30,
2013. The decrease is not significant.
Total gross profit for the three months
ended September 30, 2014 increased by $2,203,746 to $24,673,434, as compared to $22,469,688 for the three months ended September
30, 2013. Gross profit margin was 48.1% and 44.7% for the three months ended September 30, 2014 and 2013, respectively.
Gross profit generated by Jinong increased
by $3,291,371, or 18.5%, to $21,083,542 for the three months ended September 30, 2014 from $17,792,171 for the three months ended
September 30, 2013. Gross profit margin from Jinong’s sales was approximately 61.2% and 56.0% for the three months ended
September 30, 2014 and 2013, respectively. The increase in gross profit margin was mainly due to the increased weight for higher-margin
products sales in Jinong’s total sales due to Jinong’s sales strategy. Jinong has adjusted its production process
to focus on producing the high-margin liquid fertilizer during the last three months.
For the three months ended September 30,
2014, gross profit generated by Gufeng was $3,386,889, a decrease of $1,159,561, or 25.5%, from $4,546,450 for the three months
ended September 30, 2013. Gross profit margin from Gufeng’s sales was approximately 21.2% and 25.6% for the three months
ended September 30, 2014 and 2013, respectively. The decrease in gross profit percentage was mainly due to the increased weight
for lower-margin products sales in Gufeng’s total sales answering to market demand.
For the three months ended September 30,
2014, gross profit generated by Yuxing was $203,003, an increase of $71,936, or 54.9% from $131,067 for the three months ended
September 30, 2013. The gross profit margin was approximately 23.8% and 16.7% for the three months ended September 30, 2014
and 2013, respectively. The increase in gross profit percentage was mainly due to the rising price for flowers during the three
months ended September 30, 2014, comparing to the same period of 2013.
Our selling expenses consisted primarily
of amortization of our deferred assets, salaries of sales personnel, advertising and promotion expenses, freight-out costs and
related compensation. Selling expenses were $11,066,721, or 21.6%, of net sales for the three months ended September 30, 2014,
as compared to 5,796,190 or 11.5% of net sales for the three months ended September 30, 2013, an increase of $5,270,531, or 90.9%.
The selling expenses of Gufeng were $185,978 or 1.20% of Gufeng’s net sales for the three months ended September 30, 2014,
as compared to $154,010, or 0.9% of Gufeng’s net sales for the three months ended September 30, 2013. The selling expenses
of Jinong for the three months ended September 30, 2014 were $10,873,605 or 31.6% of Jinong’s net sales, as compared to selling
expenses of $5,629,531, or 17.7% of Jinong’s net sales for the three months ended September 30, 2013. Most of this increase
in Jinong’s selling expenses was due to the amortization of $10,331,084 of the deferred tax assets for the three months ended
September 30, 2014 related to our business strategy implemented since the first quarter of fiscal year of 2014 that assists distributors
in certain marketing efforts and develops standard stores to expand our competitive advantages and market shares.
General and administrative expenses consisted
primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general
and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigations.
General and administrative expenses were $3,119,632, or 6.1% of net sales for the three months ended September 30, 2014, as compared
to $3,339,776, or 6.6%, of net sales for the three months ended September 30, 2013, a decrease of $220,144, or 6.6%. The decrease
in general and administrative expenses was mainly due to the related expenses in the stock compensation awarded to the employees
which amounted to $1,420,720 for the three months ended September 30, 2014 as compared to $1,984,494 for the three months ended
September 30, 2013.
Net income for the three months ended September
30, 2014 was $8,099,082, a decrease of $2,279,375, or 22.0%, compared to $10,378,457 for the three months ended September 30, 2013.
The decrease was attributable to the increase in selling expenses offset by an increase in our gross margin. Net income as a percentage
of total net sales was approximately 15.8% and 20.6% for the three months ended September 30, 2014 and 2013, respectively.
Financial Condition
As of September
30, 2014, cash and cash equivalents were $41.1 million, an increase of $14.2 million, or 52.9%, from $26.9 million as of June 30,
2014. Net cash used in financing activities for the three months ended September 30, 2014 was $654,550, a decrease of $917,350
or 349.1% from cash provided by financing activities of $262,800 for the three months ended September 30, 2013. Company had $
22.9 million in short-term loans as of September 30, 2014, a decrease of $1.1 million, as compared to $24.0 million in short-term
loans as of June 30, 2014. We had accounts receivable of $75,058,824 as of September 30, 2014, as compared to $88,781,608
as of June 30, 2014, a decrease of $13,722,784 or 15.5%.
Second Quarter
and Fiscal Year 2015 Guidance
For
the second quarter ending December 31, 2014, management expects net sales of $49 to $53 million, net income of $3 to $6 million,
and EPS of $0.07 to $0.17 based on 32.5 million fully diluted shares. For the Fiscal Year 2015, management confirmed net sales
of $255 million to $269 million, net income of $26 million to $35 million, updated EPS of $1.0 and $0.74 based on 35.2 million
fully diluted shares.
Conference Call
The Company will
hold a conference call at 7:30 a.m. ET on Monday, November 10, 2014. Any interested participants are welcome
to join in the call by following the dial-in details as set out below. When prompted by the operator, please indicate "China
Green Agriculture's First Quarter Fiscal Year 2015 Financial Results" to join the call.
Event: |
CGA First Quarter Fiscal Year Q1FY2015 Conference Call |
|
Date: |
November 10, 2014 |
|
Time: |
7:30 a.m. ET |
|
US Dial In: |
1-888-346-8982 |
|
Int'l Dial In: |
1-412-902-4272 |
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Hong Kong-Local Toll |
852-301-84992 |
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Beijing-Local Toll |
86-105-357-3132 |
|
China Toll Free |
4001-201203 |
|
Hong Kong Toll Free |
800-905945 |
|
The replay will
be available 1 hour after the end of the conference.
Teleconference
Replay Available Until: November 17, 2014.To access the replay, please dial any of the following numbers:
US Toll Free: |
1-877-344-7529 |
International Toll: |
1-412-317-0088 |
Canada Toll Free: |
855-669-9658 |
Replay Access Code: |
10056066 |
|
|
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, 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. Ran Liu (English
and Chinese)
Tel: +86-29-88266383
Email: liuran@cgagri.com
SOURCE China Green
Agriculture, Inc.
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