China Green Agriculture, Inc., through its subsidiaries, is engaged in the research, development, production, and sale of various types of fertilizers and agricultural products in the People’s Republic of China (PRC or China). Products As of June 30, 2013, the company developed 454 different fertilizer products. Fertilizer Products The company’s primary business is of fertilizer products, primarily humic acid-based compound fertilizer produced through Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (Jinong). Humic acid is an organic ingredient that is essential for balanced, fertile soil. The pure humic acid used in the company’s fertilizers is distilled and extracted from weathered coal by way of alkaline digestion and acid recrystallization. Its Jinong fertilizers are dark brown to black in color, and principally used as a foliar fertilizer (a liquid, water soluble fertilizer applied to a plant’s foliage by a fine spray so that the plant could absorb the nutrients through its leaves), or sprayed directly on soil or injected into the irrigation systems. Beijing Gufeng Chemical Products Co., Ltd. (Gufeng) and Beijing Tianjuyuan Fertilizer Co., Ltd. (Tianjuyuan) produce compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizer. Gufeng sells its products under four brands, including KEBA, Mei Er An, Huang Cheng Gen, and SPR HOP, which are all registered trademarks in the PRC. Tianjuyuan’s products are marketed under the brands ‘AGR GFJ’ and ‘T.J.Y.’ with AGR GFJ and T.J.Y. as PRC registered trademarks. Gufeng and Tianjuyuan manufacture a total of 320 fertilizer products. Agricultural Products The company’s subsidiary, Xi’an Jintai Agriculture Technology Development Company and its variable interest entity, Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd., produce fruits, vegetables, flowers, and colored seedlings for commercial sale. New Products During the year ended June 30, 2013, the company developed 11 new products. Its new products include various powder fertilizers, liquid fertilizers, and compound fertilizers. In addition to developing new fertilizer products, it is also developing soilless seeding and breeding of colored-leaf plants, rare flowers and new species of fruits and vegetables. Marketing, Distribution, and Customers As of June 30, 2013, the company sold its products through a network of 1,034 regional distributors covering 27 provinces, 4 autonomous regions, and 3 central government-controlled municipalities in China. It markets its fertilizer products to private wholesalers and retailers of agricultural farm products. The company serves five PRC provinces, such as Heilongjiang, Hebei, Shaanxi, Jilin, and Shandong. It also manufactures its fertilizer products for export to contracted distributors in foreign countries, including India and Ghana. The company’s agricultural products are distributed through various distribution channels in Shaanxi Province and other provinces. Decorative flowers are sold through the company’s fertilizer distributors to end-users, such as flower shops, luxury hotels, and government agencies. Fruits and vegetables are sold to supermarkets and upscale restaurants. Seedlings are sold primarily to city planning departments. Fertilizer Products: The company’s customer includes Beijing Baohenongxiang Agriculture Co., Ltd. Agricultural Products: The company’s customers include Xi’an Zihe Yuanlin Jingguan Co., Ltd.; Xi’an Heyi Flower Co., Ltd.; Xi’an Yanta Hongbo Flower Co., Ltd; Xi’an Yanta Caomurenjia Gardening Co., Ltd; and Xi’an Beilin Tianxihong Gardening Company. Suppliers Fertilizer Products: The company’s suppliers include China National Agricultural Mineral Resources Co.Ltd; Beijing Baohenongxiang Agricluture Co., Ltd.; and Inner Mongolia Tianlibao Fertilizer Co., Ltd. Agricultural Products: The company’s supplier includes Rijk Zwaan Company. Growth Strategy The company’s strategies are to expand capacity and diversify product offerings, and capitalize on synergies created by research and development efforts. Seasonality The peak selling season for the company’s agricultural products is from October through March the next calendar year during its second fiscal quarter (fall) (year ending June 2013) and the third fiscal quarter (winter). This is primarily due to the strong demand for its high-end fruits and decorative flowers during the holiday seasons. Research and Development For the year ended June 30, 2013, the company’s research and development costs were $1,009,501. Intellectual Property Jinong has two patents for a fertilizer formulation and for the proprietary production line and manufacturing processes. Competition Fertilizer Products: The company’s competitor includes Yongye International, Inc. Gufeng’s primary competitor is Stanley Fertilizer Co., Ltd. Agricultural Products: The company’s major competitors include Sanyi Agriculture Technology Co., Ltd. and Kunming Anthura horticulture Co.Ltd.
china green agriculture inc
No.181, South Taibai Road
Phone: 86 29 8826 6368
Fax: 86 29 8823 1590www.cgagri.com
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