Contact Information: Contacts: In China: Matt Feng Investor Relations China Tel: 86 10 8785-9020 matt.feng@agriacorp.com In the U.S.: David Pasquale Senior Vice President U.S. Tel: +914-337-1117 david.pasquale@agriacorp.com
Agria Expects to Reach High-End of Prior 4Q07 Guidance
| Source: Agria Corporation
BEIJING--(Marketwire - February 25, 2008) - Agria Corporation (NYSE : GRO ), an innovative China-
based agri-solutions provider, today announced that the Company expects
revenues for the fourth quarter of 2007 to reach the high-end of prior
guidance.
Prior guidance for revenues for the fourth quarter of 2007 was between
approximately RMB 238 million (US$ 31.8 million) and RMB 253 million (US$
33.8 million), representing year-over-year growth in the range of 60% to
70%, respectively, compared to RMB 149 million in the fourth quarter of
2006. Growth was led by strong corn seed sales, as the fourth quarter is
typically the strongest period for this segment due to the annual harvest
and sales cycle.
Mr. Kenneth Huang, co-CEO, commented, "We are pleased with the success in
our business and continue to expect we will achieve annual revenue growth
above 25% in 2008 compared to 2007 based on current order forecasts and
market expectations. We expect to achieve this growth despite the impact
of snow storms in China in the first quarter of 2008. The storms did not
materially affect our operation in Shanxi, did not cause any material
increase in breeding sheep deaths and should not impact our seedling
business. The impact was confined to transportation and shipment problems
across China. Overall, the weather is a short-term, macro issue. The
opportunities in front of us for revenue and profit growth remain vast."
Based on sales orders received, Agria now expects revenue in the first
quarter 2008 will be approximately 15% above the first quarter of 2007, or
approximately RMB 136 million (US$ 17.9 million). The Company believes
revenue growth would have been approximately 20% higher than the year ago
period without the impact of snow storms in China. The first quarter is
normally seasonally below the fourth quarter for the industry.
About Agria Corporation
Agria Corporation (NYSE : GRO ) is an innovative China-based agri-solutions
provider focusing on research and development, production and distribution
of three different types of upstream agricultural products. Its diversified
portfolio of products comprises corn seeds, sheep breeding and seedlings,
including proprietary products developed through its own research and
development capability. The company has access to approximately 27,000
acres of farmland in seven provinces and its extensive distribution network
provides direct or third party distribution in 14 provinces. For more
information about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "confident" and
similar statements. Among other things, the business outlook and quotations
from management in this announcement, as well as Agria Corporations
strategic and operational plans, contain forward-looking statements. Agria
may also make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission on Forms 20-F and
6-K, etc., in its annual report to shareholders, in press releases and
other written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not historical
facts, including statements about Agria's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those contained in any forward-looking
statement. Potential risks and uncertainties include, but are not limited
to, Agria's limited operating history makes it difficult to evaluate our
future prospects and results of operations; natural or man-made disasters
could damage our seed production, which would cause us to suffer production
losses and a material reduction of our revenues; outbreaks of disease in
livestock and/or food scares in China would materially and adversely affect
our sheep breeding business; we primarily rely on arrangements with village
collectives to produce our corn seed products, and if we are unable to
continue these arrangements or enter into new arrangements with other
village collectives to increase our production, our total land acreage
devoted to corn seed production may decrease and our growth may be
inhibited; our growth prospects may be materially and adversely affected if
we are unable to continue to develop or acquire products to meet the
demands of Chinese farmers or to produce our existing products in
sufficient quantities; and one or more of our distributors may engage in
activities that are harmful to our brand and to our business, and other
risks outlined in Agria's filings with the U.S. Securities and Exchange
Commission, including its Form F-1/A filed on November 2, 2007. All
information provided in this press release is as of February 25, 2008, and
Agria does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.