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China Green Agriculture Inc   (CGA)
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Price: $3.0500 $0.04 1.326%
Day's High: $3.0547 Week Perf: 9.32 %
Day's Low: $ 2.80 30 Day Perf: -8.13 %
Volume (M): 3 52 Wk High: $ 4.00
Volume (M$): $ 8 52 Wk Avg: $2.58
Open: $2.81 52 Wk Low: $1.61



 Market Capitalization (Millions $) 41
 Shares Outstanding (Millions) 13
 Employees 17
 Revenues (TTM) (Millions $) 114
 Net Income (TTM) (Millions $) -18
 Cash Flow (TTM) (Millions $) -13
 Capital Exp. (TTM) (Millions $) 1

China Green Agriculture Inc

We, the Company, are primarily engaged in the research, development, production and sale of various types of fertilizers and agricultural products in the People’s Republic of China (“PRC”) through our wholly-owned Chinese subsidiaries, Jinong (fertilizer production), Gufeng (fertilizer production), our VIE, Yuxing (agricultural products production), and another six VIE companies that we newly acquired in June 2016. Our primary business is of fertilizer products, specifically humic acid-based compound fertilizer produced through Jinong; and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer produced through Gufeng. In addition, through Yuxing, we develop and produce agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings.

On June 30, 2016, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and a series of contractual agreements with the shareholders of the following six companies that are organized under the laws of the PRC and would be deemed as variable interest entities (the “VIEs”): Shaanxi Lishijie Agrochemical Co., Ltd., Songyuan Jinyangguang Sannong Service Co., Ltd., Shenqiu County Zhenbai Agriculture Co., Ltd., Weinan City Linwei District Wangtian Agricultural Materials Co., Ltd., Aksu Xindeguo Agricultural Materials Co., Ltd., and Xinjiang Xinyulei Eco-agriculture Science and Technology Co., Ltd. (collectively hereafter referred to as “the VIE Companies.”)

Fertilizer Market in China

Influenced by the sluggish demand in domestic and international fertilizer market, China’s fertilizer market is in downturn during this year. In terms of production, the output of fertilizer will reach another record high during the Fiscal Year 2016. However, large inventory of fertilizer guarantee no profits. The prices of raw material move down, so the price of fertilizer is hard to rise; in terms of domestic consumption, though grain price increased to some extent, the domestic consumption capacity is limited; as for export, international market is depressed continuously resulted from the declined export price. In this year, fertilizer industry is in downward trend as the profit is compressed again and the losses of enterprises are enlarged. Under the pressure of sluggish growth in fertilizer market, industrial restructuring, mergers and reorganization were frequently conducted in the industry, hence the number of enterprises continued to decline. At the same time, the production equipment and technological level was largely improved: coal-water slurry gasification technology, powdered coal pressure gasification technology, large sulfur-based compound fertilizer technology and beneficiation technology of mid-low grade phosphorite were widely used, while new fertilizer products such as slow controlled release fertilizer and microbial fertilizer has been rapidly developed and resulted in significant market expansion.



Recently, as the growth of China’s economy has gradually slowed down and the risk of economic downturn therefore exists, the government has adopted various measures to maintain the growth and the Company needs structural adjustment and growth pattern transformation.

On the one hand, government’s support to agricultural production includes intensive agricultural investment, subsidies and minimum purchasing price raise for farm products. China has seen another bumper year of grain production, making 2013 the 10th year in a row of increase output, which supports fertilizer scale to remain high in 2016. The country has achieved 10 consecutive year of rising grain harvests since the founding of the People’s Republic of China in 1949. As the concentration of fertilizer industry is steadily improving, the influence on market from key enterprises have increased which helped to ease the weakened market volatility. On the other hand, the current oversupply problem is hard to relieve. Mechanism of Price reform for raw materials (such as coal, natural gas, sulfur phosphate ore, etc.) is accelerating, which casted pressure on production cost. Stricter export tariff policy is expected to last for long, and weak external economical situation may limit the operation and expansion of fertilizer enterprises in international market.

The interaction of the above factors complicated the situation in fertilizer market in 2016.The overall growth rate of this industry has continually slowed down and the market has fluctuated violently. The transformation for China’s fertilizer industry from quantitative growth pattern to qualitative growth pattern is irreversible. The centralization of production, high-end orientated product, service orientated marketing and market-oriented raw materials dominated the development in fertilizer market.

Additionally, government support for the agriculture industry in China would act as an additional boost to the fertilizer industry in China. However, we anticipate organic fertilizers will become an emerging segment in the coming years given the additional subsidies for farming, elimination of certain land taxes, land reform initiatives to be implemented by the PRC government to promote the growing of organic produce. We believe the demand for fertilizer will continue to grow as a result of increase in food demand, decrease in arable land and reduction of crop yields. The demand for fertilizers nationwide is expected to reach thousands of tons of nutrient by 2017, with a compound annual growth rate of 5.7% between 2012-2017.

Organic versus Chemical Fertilizers

In general, fertilizer products are categorized into organic and chemical fertilizers. Organic fertilizers can be natural or developed artificially. Natural organic fertilizers include manure, slurry, worm castings, peat, seaweed, humic acid, brassin and guano. Artificial organic fertilizers include compost, blood meal, bone meal, humic acid, and are typically supplemented with other nutrient ingredients. Chemical fertilizers normally are composed of synthetic chemicals such as phosphate and potassium compounds. The primary difference between organic fertilizers and chemical fertilizers is in the sourcing process of ingredients as the nutrient contents are largely the same.

Over the past 20 years, the use of chemical fertilizers in China substantially increased, but years of use created unintended consequences for the agriculture industry—Agricultural products gradually lack certain minerals since Chemical fertilizers applied fell short of natural minerals which made soil infertile.

In addition, heavy use of chemical fertilizers would create "fertilizer burn", the over-fertilization of a single nutrient such as nitrogen. which dried roots and suspend crop growth due to the upset of balance in compound salts and soil acidification. Another drawback caused by chemical fertilizers is that soil are easily depleted by irrigation, rainfall and flooding. In addition, the production of chemical fertilizers consumed a great deal of natural resources. For example, the production of synthetic ammonia, a common chemical fertilizer, consumes about 5% among the world’s natural gas consumption.

Organic fertilizers, on the other hand, improve the biodiversity and long-term productivity of soil. Organic nutrients increase the abundance of soil organisms by providing organic micronutrients. Unlike chemical fertilizers, organic fertilizer nutrients are diluted with better solubility. It requires less application on soil to reach the same result as of chemical fertilizers, which maintains soil fertility and avoid the runoff caused by components like soluble nitrogen and phosphorus. However, the composition of organic fertilizer is more complex and costly than chemical products. As an alternative to pure chemical fertilizer use, farmers can also use inorganic fertilizer supplemented with small portion of organic fertilizers.


Since the 1980s, China has intensified the use of chemical fertilizers in order to increase crop yields. While the increase in crop yield slowed down in recent years, the overuse of chemical fertilizers also caused many environmental issues ranging from water pollution to soil damage. As a result, the PRC government has been promoting the use of environmental friendly green fertilizers, such as humic acid-based organic compound fertilizers and mixed organic-inorganic compound fertilizers, because they provide crops with incremental yield by adding various nutrients essential to soil. Although being relatively new to farmers, the demand for these green fertilizers was increasing and we expect this trend to continue in the coming years. Among other Asian and Southeast Asian countries we expanded business to, the PRC remained our principal market for organic compound fertilizers and related agricultural products.

The “Green Food” Industry in the PRC

The rise of the PRC industry for food free from pollutants or harmful chemicals, or “green food”, raise the demand for organic fertilizers. “Green Food”, the certificate for agricultural products promoted by Chinese Government, positioned between ordinary agricultural food from common farming practice and the organic food has two levels: “AA Green Food” and “A Green Food”. The “AA Green Food” standard indicates or equals to that of organic agriculture. Since the market for organic agricultural products in China has huge potential, it is forecasted that the increase of organic agricultural products consumption in China will exceed that of the average organic agricultural products consumption in the world in the next few years, and the market of Chinese organic agricultural products will reach RMB 24.8 billion-59.4 billion in 2015with an incremental 15 percent increase year over year during the next following years.

With the rapid development of organic food industry in China, an increasing number of companies have been entering into the green food sector to utilize market opportunities. In 1990, the PRC Ministry of Agriculture began to promote the production of green food; In 1992, the PRC Ministry of Agriculture established the China Green Food Development Center (CGFDC) to supervise the development and management of green food at the national and provincial levels in the PRC; In 1993, the PRC Ministry of Agriculture established regulations for green food labeling; In 1996, a trademark for green food was registered and put into use in the PRC.



   Company Address: 3rd floor Xi?an 710065
   Company Phone Number: 29-88266368   Stock Exchange / Ticker: NYSE CGA
   


Customers Net Income fell by CGA's Customers Net Profit Margin fell to

-48.79 %

6.67 %

• Customers Performance • Customers Expend. • Customers Efficiency • List of Customers


   

Stock Performances by Major Competitors

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EMN        0.86% 
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China Green Agriculture Inc

Company's Fourth Quarter Earnings Stand Strong with Minimal Revenue Decline, Defying Expectations

China Green Agriculture Inc, a leading agricultural company, has experienced some fluctuations in its stock performance recently. Over the course of the last month, the company's shares declined by 0%. However, there has been a positive shift in the past five trading days, with the shares going up by 4.48%.
It is worth noting that despite the recent fluctuations, China Green Agriculture Inc's shares are still trading 30.4% above its 52-week low. This indicates that there is still confidence in the company's performance, despite the recent setbacks.

China Green Agriculture Inc

China Green Agriculture Inc Reports Impressive Turnaround to Profitability in Q3 2023, Driven by Increased Earnings and Margins

China Green Agriculture Inc Announces Turnaround to Profitability in Third Quarter 2023
China Green Agriculture Inc, an agricultural production company, has announced its financial results for the third quarter of 2023. The company has shown remarkable progress by posting an earnings per share (EPS) of $0.02, which is a significant improvement compared to the EPS of $-3.60 a year ago. Moreover, the company's earnings per share has also turned positive from $-0.27 per share in the previous quarter, which is an indicator of the company's growth and stability.
However, the company's revenue experienced a decline of -25.969% to $45.26 million in the third quarter of 2023 from $61.14 million in the corresponding period a year ago. It is important to mention that the company's sequential revenue surged by 84.448% from $24.54 million, which reflects the company's efforts towards growth.
Despite the decline in revenue, the company managed to book a net profit of $0.190 million in the third quarter of 2023, which is a significant improvement compared to a net loss of $-38.079 million in the corresponding period a year ago. The profitability is the result of the company's emphasis on improving profit margins, where the net margin rose to 0.42% in the third quarter of 2023, and operating margin edged up to 0.41%.






 

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