China Green Agriculture, Inc. Announces VAT Exemption for Organic Fertilizer Product Sales
Agriculture, Inc. (NYSE Amex: CGA; “China Green Agriculture” or “the Company”),
a leading producer and distributor of humic acid (“HA”) based compound
fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic
Acid Product Co., Ltd., announced that the National Taxation Bureau of
Yangling Hi-tech Development Zone has recently approved a value-added tax
(“VAT”) exemption for Shaanxi Techteam Jinong Humic Acid Product Co., Ltd.
Jinong previously was paying a VAT rate of 13% for producing and
distributing humic acid-based compound fertilizer products. The application
was submitted to the local Taxation Bureau in
will be valid through
Value Added Tax of Organic Fertilizer” (2008 No.56).
“We are extremely pleased with the tax advantaged status that China Green
Agriculture has received from the PRC government as it will have a significant
and immediate effect on our net income while further expanding margins to
3-5%,” stated Mr. Tao Li, Chairman and CEO of China Green Agriculture. “Our
usage of humic acid in our products substantially increases the fertility of
soil while meeting the country’s highest environmental standards. We
currently use humic acid as the base organic element in our fertilizer. We
commend the government’s commitment to improving the environment, while
increasing and ensuring the highest standards across the industry.”
About China Green Agriculture, Inc.
China Green Agriculture, Inc. produces and distributes humic acid (“HA”)
based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi
TechTeam Jinong Humic Acid Product Co., Ltd., (“TechTeam”). TechTeam produces
and sells over 130 different kinds of fertilizer products per year. All of
TechTeam’s fertilizer products are certified by the PRC government as green
food production materials, as stated by the China Green Food Research Center.
TechTeam’s fertilizers are highly concentrated liquids which require an
application of approximately 120 ml per mu per application. Its average end
user has approximately four mu of land (one mu = .165 acres). Techteam also
has the capacity to produce highly concentrated powdered fertilizers. China
Green Agriculture currently markets its fertilizer products to private
wholesalers and retailers of agricultural farm products in 21 provinces, 4
autonomous regions and 3 municipal cities in the PRC. The leading five
provinces which collectively accounted for 36.4% of the Company’s fertilizer
revenue for the year ended
Heilongiiang (6.5%), Xinjiang (6.5%) and
visit http://www.cgagri.com .
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 Cautionary Statement and the risk factors detailed in the Company’s
reports filed with the Securities and Exchange Commission. 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.
For more information, please contact: In the US: China Green Agriculture, Inc. Ms. Ying Yang, Chief Financial Officer Tel: +1-626-623-2575 Email: firstname.lastname@example.org OR HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: email@example.com In China: China Green Agriculture, Inc. Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer Tel: +86-29-8826-6368 Email: firstname.lastname@example.org
SOURCE China Green Agriculture, Inc.