It appears that the provided text is a financial report article, but it does not have a title. The text seems to be a formal document, likely a filing with the Securities and Exchange Commission (SEC) in the United States. If I had to generate a title for the article, I would suggest something like: "Form [Insert Form Number] - [Company Name] Quarterly Report (10-Q)" However, without more information, it's difficult to provide a more specific title. If you could provide more context or details about the article, I may be able to generate a more accurate title.

Press release·10/26/2024 04:38:13

Listen to the news

It appears that the provided text is a financial report article, but it does not have a title. The text seems to be a formal document, likely a filing with the Securities and Exchange Commission (SEC) in the United States. If I had to generate a title for the article, I would suggest something like: "Form [Insert Form Number] - [Company Name] Quarterly Report (10-Q)" However, without more information, it's difficult to provide a more specific title. If you could provide more context or details about the article, I may be able to generate a more accurate title.

I apologize, but it seems that you didn’t provide a financial report for me to summarize. The text you provided appears to be the header of a Securities and Exchange Commission (SEC) filing, but it doesn’t contain any financial information. If you could provide the actual financial report, I’d be happy to help you summarize it in a single paragraph.

Overview

China Green Agriculture, Inc. is engaged in the research, development, production, and sale of various types of fertilizers, agricultural products, and Bitcoin in China and the United States through its wholly-owned subsidiaries and a variable interest entity (VIE).

The company’s primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and various other fertilizer products produced by Gufeng. It also develops and produces agricultural products such as fruits, vegetables, flowers, and seedlings through its subsidiary Yuxing. Additionally, the company engages in the mining of Bitcoin through its subsidiary Antaeus.

For financial reporting purposes, the company’s operations are organized into four business segments: fertilizer products (Jinong), fertilizer products (Gufeng), agricultural products (Yuxing), and Bitcoin (Antaeus). The fertilizer business generated approximately 88.8% and 92.1% of the company’s total revenues in fiscal years 2024 and 2023, respectively, while the agricultural products and Bitcoin segments contributed 9.8%/7.8% and 1.3%/0.2% of revenues, respectively.

Recent Developments

During the three months ending June 30, 2024, Jinong discontinued 7 obsolete products and terminated 150 unqualified distributors, while Gufeng did not introduce any new fertilizer products or onboard new distributors.

Results of Operations

Fiscal Year ended June 30, 2024 Compared to the Year ended June 30, 2023:

Net Sales:

Total net sales decreased by 22.8% to $95.8 million, primarily due to lower sales from Gufeng.
Jinong’s net sales decreased by 18.1% to $33.0 million due to lower unit prices.
Gufeng’s net sales decreased by 29.5% to $52.2 million due to reduced sales volume.
Yuxing’s net sales decreased by 2.5% to $9.4 million due to lower market demand.
Antaeus’ net sales increased by 511.0% to $1.3 million.

Cost of Goods Sold:

Total cost of goods sold decreased by 25.5% to $76.1 million, in line with the decrease in net sales.

Gross Profit:

Total gross profit decreased by 10.0% to $19.7 million. Gross profit margins were 20.6% and 17.7% in fiscal years 2024 and 2023, respectively.

Operating Expenses:

Selling expenses decreased by 6.5% to $7.8 million.
General and administrative expenses increased by 49.9% to $40.8 million, mainly due to higher bad debts expense.

Net Loss:

Net loss increased by 113.9% to $28.4 million, primarily due to the increase in general and administrative expenses.

Segment Profitability Measures

Jinong’s net loss decreased by 29.4% to $2.98 million due to lower product costs.
Gufeng’s net loss increased by 206.0% to $19.2 million primarily due to higher general and administrative expenses.
Yuxing’s net income decreased by 205.1% to a net loss of $0.80 million, also due to higher general and administrative expenses.
Antaeus’ net loss increased by 319.8% to $1.54 million.

Liquidity and Capital Resources

As of June 30, 2024, cash and cash equivalents were $58.8 million, a decrease of 17.4% from the prior year.
Net cash used in operating activities was $9.9 million, an increase of 897.1% from the prior year, mainly due to higher net loss.
Net cash used in investing activities was $6.1 million, an increase of 1191.0% from the prior year, primarily due to long-term equity investments.
Net cash provided by financing activities was $3.3 million, a decrease of 83.4% from the prior year, mainly due to lower proceeds from the sale of common stock.
The company had $9.3 million in total loans payable as of June 30, 2024.

Critical Accounting Policies and Estimates

The company’s critical accounting policies include the use of estimates, revenue recognition, accounting for cash and cash equivalents, accounts receivable, deferred assets, segment reporting, and others. Management’s discussion highlights the key areas where estimates and judgments are required in preparing the financial statements.

Market Risks

The company is exposed to risks related to currency fluctuations, interest rates, credit, inflation, and epidemics/pandemics. It does not currently use financial instruments to hedge these market risks. The COVID-19 pandemic has adversely affected the company’s operations and financial performance, and the full extent of the impact remains uncertain.