The Company was incorporated under the laws of the state of Kansas on February 6, 1987 under the name Videophone, Inc. The Company had no operations from December 1996 to December 2007. In October 2007, the Company was reincorporated in the state of Nevada, and, on December 26, 2007, acquired all of the issued and outstanding capital stock of Green New Jersey which owns 100% of the capital stock of Techteam through a share exchange (the “Share Exchange”). As a result of the Share Exchange, the Company owns 100% of Green New Jersey, which is a holding company for Techteam. The Share Exchange occurred simultaneously with a private placement of $20,519,255 on December 26, 2007. After the acquisition of Green New Jersey, the Company changed its name to China Green Agriculture, Inc., effective February 5, 2008. The trading symbol changed from DCOV.OB to CGAG.OB on the same day. On March 9, 2009, the Company’s common stock was listed on NYSE Amex. The trading symbol changed to CGA.
We, through our indirect wholly owned subsidiaries in China, Techteam and Jintai, have two business segments: (i) research, development, production and distribution of humic acid based compound fertilizer (conducted through Techteam); and (ii) development, production and distribution of agricultural products (conducted through Jintai), namely, top-grade fruits, vegetables, flowers and colored seedlings. The fertilizer business has been, and will continue to be, our main business. The fertilizer business produced approximately 82.1% and 82.5% of our total revenues in the years ended June 30, 2009 and 2008, respectively.
Humic acid is an essential natural, organic ingredient for a balanced, fertile soil, and it is one of the major constituents of organic matter. All of our fertilizer products are certified as green food production material by China Green Food Development Center, an agency that reports to the Ministry of Agriculture in China.
Currently, we sell our products through a network of 530 regional distributors covering 21 provinces, 4 autonomous regions and 3 municipal cities in China. We currently sell more than 130 different fertilizer products. We conduct our research and development activities through Techteam’s wholly-owned subsidiary, Jintai, which tests new fertilizers and grows high quality flowers, vegetables and seedlings for commercial sale.
Our existing production facility was upgraded in December 2008 from a capacity of 10,000 metric tons to a capacity of 15,000 metric tons. We have completed the construction of a three-story building totaling approximately 13,803 square meters (i.e., approximately 148,574 square feet) for our new production facility. With the commencement of production of new facility in August 2009, we have a total annual capacity of 55,000 metric tons and we anticipate reaching a full utilization in three years.
Jintai’s existing greenhouse facility covers approximately 137,000 square meters. It consists of six intelligent greenhouses, made by ACM-China Greenhouse Engineering (Shanghai) Co., Ltd., the China branch of the Spanish manufacturer of greenhouse facilities. The facility is equipped with an advanced drip irrigation system supplied by Eldar-Shany Technology Co., Ltd. of Israel. We also have water purification equipment supplied by Beijing Nuobaijing Science & Technology Development Co., Ltd., a professional supplier of water purification facilities, which allow us to perform tests with water at different pH levels. We plan to build new greenhouse facility on a separate parcel of land of approximately 88 acres to expand our output of high quality agricultural products for commercial sale while providing an advanced testing field for our new fertilizer products.