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  1. 1. CHINA GREEN AGRICULTURE, INC.September 2012Customized Fertilizer SolutionsDiversified Products to Diversified MarketsNYSE: CGA
  2. 2. 2Safe Harbor StatementThis presentation contains forward-looking statements concerning the Company’sbusiness, products and financial results. The Company’s actual results may differmaterially from those anticipated in the forward-looking statements depending on anumber of risk factors including, but not limited to, the following: general economicand business conditions, development, shipment, market acceptance, additionalcompetition from existing and new competitors, changes in technology, and variousother factors beyond the Company’s control. All forward-looking statements areexpressly qualified in their entirety by this Cautionary Statement and the risk factorsdetailed in the Companys reports filed with the Securities and Exchange Commission.China Green Agricultural undertakes no duty to revise or update anyforward-looking statements to reflect events or circumstances after the date of thismaterial except to the extent required by applicable law.China Green Agriculture (NYSE: CGA)
  3. 3. 3Company OverviewChina Green Agriculture (NYSE: CGA)BUSINESSEngaged in research, development, production and sale of specialtyfertilizers, compound fertilizers and agricultural productsLOCATIONHeadquartered in Xi’an, Shaanxi with production facilities in Xi’an andBeijingPRODUCT Over 443 diversified products (as of Q4FY2012)FACILITIES Two automated production facilities and two R&D centersCAPACITY Production capacity of 555,000 metric tons Jinong: 55,000 metric tons Gufeng: 500,000 metric tons
  4. 4. 4EquityEquity Snapshot as of Sep 18, 2012Prev Close 3.6552wk Range 2.61 – 5.52Avg Vol (3m) 61,466Market Cap 100.21MP/E (ttm) 2.34Shs Outstand 26.94MFloat 17.07M Resources: Yahoo FinanceChina Green Agriculture (NYSE: CGA)FINANCINGThe Company has raised $65.8 million in net from the U.S. market: Dec 2007, PIPE $18.6M Jul 2009, Public Offering $27.2M Nov 2009, Public Offering $20.0M
  5. 5. 5Investment HighlightsChina Green Agriculture (NYSE: CGA)StrategicGeographicPositionsEstablished nationwide distribution networkStrategic distribution of production facilities in Northwest China, NorthChina, and potential acquiring target in Southwest ChinaCross-selling of different categories of products made by the facilitiesHealthyDevelopmentStrong research and development capacityRegular new product introductionsWell-branded product portfolioMarketPotentialCurrent fragmented and substantial addressable marketIncreasing need for compound fertilizers, especially organic fertilizersPrimary focused industry in China’s “12th Five Year Plan”The U.S. NYSE listed public company
  6. 6. 6Corporate HistoryChina Green Agriculture (NYSE: CGA)1998 2007 Jul, 2009 Dec, 2009 2010On January 19, 2007,Jinong incorporatedJintai as its direct,wholly-ownedsubsidiaryJinong wasincorporated in theXian on July 1998On July 23, 2009,Yuxing became adirect, wholly-ownedsubsidiaryCGA transferred itslisting to the NewYork Stock Exchangeon December 7, 2009On July 2, 2010, the Companyacquired all of the equityinterests of Gufeng and itssubsidiary Tianjuyuan
  7. 7. 7Corporate StructureChina Green Agriculture (NYSE: CGA)2007 Jul, 2009 Dec, 2009 2010China Green Agriculture, Inc.Green Agriculture HoldingCorp.Shaanxi Tech Team JinongHumic Acid Product Co., Ltd.Jintai Agriculture TechnologyDevelopment CompanyBeijing Gufeng ChemicalProducts Co., Ltd.Beijing Tianjuyuan FertilizerCo., Ltd.Yuxing Agriculture TechDevelopment Co., Ltd.100%100%100%100%100%100%
  8. 8. 8Production FacilitiesChina Green Agriculture (NYSE: CGA)Shaanxi Tech Team Jinong Humic Acid Product Co., Ltd. A 6,495 square meter (69,911 square feet) productionfacility that manufactures liquid fertilizer products A 13,803 square meter (148,576 square feet) productionfacility that produces liquid and highly concentrated(powdered) fertilizers Utilizes one of the most advanced automated humic acidproduction lines in China Total annual production capacity of these facilities is55,000 metric tonsBeijing Gufeng Chemical Products Co., Ltd. Eight manufacturing facilities comprising 17,930 squaremeters (approximately 192,997 thousand square feet)that produce various kinds of fertilizers Total annual production capacity of 500,000 metric tons
  9. 9. 9R & D FacilitiesChina Green Agriculture (NYSE: CGA)Jintai Agriculture Technology Development Company Covers 137,000 square meters, and consists of sixintelligent greenhouses Produces top-grade flowers and multi-colored seedlingsYuxing Agriculture Tech Development Co., Ltd. Covers 353,000 square meters with 100 sun-light greenhouses and 6 intelligent green houses Is equipped with an advanced drip irrigation system andwater purification equipment 60%-70% of the experimental work can be done in thegreenhouses Cultivates and agricultural products by applying fertilizersproduced by Jinong for testing aim
  10. 10. 10Diversified ProductsChina Green Agriculture (NYSE: CGA)FertilizerProducts Fertilizer Business contributes 90% of the main business Products include liquid, granular and powdered fertilizers developedto increase crop yields and quality without the harmful effects ofchemical fertilizers The Company currently manufactures and sells 443 fertilizer productsfrom humic acid-based fertilizers to mixed organic-inorganiccompound fertilizersAgriculturalProducts Top-grade flowers, including principally, faber cymbidium andphalaenopsis Green vegetables and fruits, including, principally, Holland cucumbers,sweet and colored pimientos, eggplant and Japanese watermelons Multicolored seedlings, including, principally, photinia serrulata(Chinese Photinia)
  11. 11. 11Nationwide Distribution NetworkChina Green Agriculture (NYSE: CGA)DistributorsTop 5 distributorson Revenue (%)Jinong 758 (80.4%) 2.1%Gufeng 185 (19.6%) 47.0%Geographic diversification 943 distributors covering all regions in ChinaStrict distributor requirements on criteria Cash transaction Warehouse abilityNew Provinces (Post-Gufeng Acquisition)Top 10 Provinces (Pre-Gufeng Acquisition)BeijingLiaoningJilinHebei Minimum retail store coverage Minimum fleet size
  12. 12. 12Fertilizer MarketChina Green Agriculture (NYSE: CGA)Demands for fertilizer Arable land is shrinking. 21% of the world’s populationwith 9% of the world’s arable land. And farmersaveragely spend 20% of annual income on fertilizer China is currently the world’s largest consumer andproducer of fertilizers, who has 1/3 of total productionand consumption around the worldPopularity of organic fertilizer Agricultural self-sufficiency calls for increasing use ofeco-friendly fertilizer products Decades of overuse of chemical fertilizers haveimpoverished arable land Growing awareness of population about food safety Government support for organic produce, for both exportand domestic consumptionOrganic compound fertilizersrepresent about 27% of totalPRC fertilizer consumptionversus 50% in the developedcountries. And an over 30%CAGR is projected.73%27%55%45%Organic vs. Chemical in Y2011Organic vs. Chemical in Y2015E
  13. 13. 13Fragmented MarketChina Green Agriculture (NYSE: CGA)Crowded market players There are approximate 3000 chemical fertilizersmanufacturers and Over 1,000 organic fertilizersmanufacturers in the market Most of the manufacturers are facing issues of: Focus on standard products; limited innovation Vulnerable in an increasingly sophisticatedmarketplace Limited access to market intelligence Modest service platform Capital constrainedCGA’s strategies Building and maintaining nationwide distributionchannels Establishing regional production facility centre andincrease production capacity through M&As Spending on R&D and regularly introduceinnovated productsCompetitor Segmentation forOrganic Fertilizer Market80%9%3%8%local small enterpriselarge regional enterprisenation level enterprisemulti-national enterprise
  14. 14. 14Short-term Growth StrategiesChina Green Agriculture (NYSE: CGA)RapidIncrease onMarket ShareCapacity IncreaseIntegrate, diversify andexpand GufengOptimize expandedsales networkCross-sell expandedproduct rangeNew R&D center andhigher sales ofagricultural productsAcquisitionTargeting high qualityproduction facilities withselective geographicaland strategic locations,for sector consolidation
  15. 15. 15Long-term Growth StrategiesChina Green Agriculture (NYSE: CGA)Establish “Crops for Fertilizers” program Through the direct trading program to gain extra profit from sales of crops Farmers can save time cost and transportation cost of selling crops and purchasingfertilizersHelp establish a National Engineering Research Center of Humic Acid-based Fertilizers Work with China Humic Acid Industry Association (CHAIA) to seek government approvalto establish the Engineering CenterParticipate in design of the Humic Acid-based Fertilizer Protocols Work with CHAIA to regulate and standardize production and distribution of humic acidgranular fertilizersBroaden market penetration and brand recognition Specially designed marketing campaign to increase brand awareness and furtherpenetrate existing marketCut manufacturing costs by controlling cost of raw materials Secure long-term raw material supply by acquiring potassium or phosphorus minesFurther utilize extensive research and development platform Accelerate rollout of new products to acquire additional market share
  16. 16. 16Long-term Growth Targets & VisionChina Green Agriculture (NYSE: CGA)Growth Plan At least $238 million in revenue by FY 2013 At least $750 million in revenue by FY 2015 At least $3 billion in revenue by FY 2020$212$750$3000FY 2012 FY 2015 FY 2020Revenue(millions)Our VisionBecome a leader in the overall fertilizer industry in China by 2020.Increase market share for all fertilizers sold in China to 3-5% from historical2% of liquid fertilizers by leveraging strengths in R&D and distribution andexpansion of compound granular fertilizer.
  17. 17. 17ManagementChina Green Agriculture (NYSE: CGA)ExperiencedManagementTao Li – Chairman, CEO and President Holds Masters Degree from Northwest Polytechnic University Vice Chairman of China Green Food Association and other tradeorganizationsKen Ren – CFO Joined CGA in May 2010 5 years experience in capital market and asset liabilitymanagement. Holds Ph.D. in engineering, M.S. in finance, both from PurdueUni., West Lafayette.
  18. 18. 18Financial PerformanceChina Green Agriculture (NYSE: CGA)$15.2 $22.6 $35.2$52.1$179.7$217.50$0.0$50.0$100.0$150.0$200.0$250.0FY2007 FY2008 FY2009 FY2010 FY2011 FY2012$2.7$6.9 $7.8$14.5$21.3$32.9$42.0$0.0$5.0$10.0$15.0$20.0$25.0$30.0$35.0$40.0$45.0FY2006FY2007FY2008FY2009FY2010FY2011FY2012$3.1$8.0 $10.4$18.7$27.5$47.9$59.9$0.0$10.0$20.0$30.0$40.0$50.0$60.0$70.0FY2006FY2007FY2008FY2009FY2010FY2011FY2012$0.73$0.64$0.53$0.78$0.91$1.27$1.56$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012CAGR 73.8%CAGR 58.0%Revenues EBITDANet Income Diluted EPSCAGR 63.8%In Millions In MillionsIn Millions In Millions
  19. 19. 19Financial PositionChina Green Agriculture (NYSE: CGA)$ in millions June 30, 2012 June 30, 2011Cash and Cash Equivalents 72.0 65.6Accounts Receivable, net 62.0 17.5Inventory 28.6 23.7Total Current Assets 175.1 118.9Total Assets 288.0 223.4Total Current Liabilities 45.8 31.5Total Liabilities 45.8 31.5Total Shareholders’ Equity 242.3 191.9
  20. 20. 20Contact InformationChina Green Agriculture (NYSE: CGA)Company – China Green Agriculture, Inc.Mr. Ken Ren – CFOTel: +86 29 88266437Email: kenren@cgagri.com3/F, Borough A, Block ANo. 181 South Taibai RoadXi’an, 710065, PRCCompany – China Green Agriculture, Inc.Ms. Jane Zuo – Secretary of the BoardTel: +86 13520622512Email: jane.zuo@cgagri.com3/F, Borough A, Block ANo. 181 South Taibai RoadXi’an, 710065, PRCCompany – China Green Agriculture, Inc.Ms. Amy Deng – IR ManagerTel: +86 29 88266503Email: dengyuqin@cgagri.com3/F, Borough A, Block ANo. 181 South Taibai RoadXi’an, 710065, PRC