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TheStreet Open House

Le Gaga Earnings Release For The Three Months Ended June 30, 2012 And Announcement Of Change Of Fiscal Year End

Stocks in this article: GAGA

HONG KONG, Aug. 27, 2012 (GLOBE NEWSWIRE) -- Le Gaga Holdings Limited (Nasdaq:GAGA) ("Le Gaga" or "the Company"), a leading greenhouse vegetable producer in China, today announced its unaudited financial results for the three months ended June 30, 2012. 1 The Company further announced a change in fiscal year end from March 31 to June 30.

Highlights of the Three Months Ended June 30, 2012

  • Revenue remained stable from RMB123.3 million for the three months ended June 30, 2011 compared to RMB123.2 million (US$19.4 million) for the three months ended June 30, 2012.  
  • Profit for the period was RMB12.6 million for the three months ended June 30, 2011, as compared to a loss for the period of RMB8.5 million (US$1.3 million) for the three months ended June 30, 2012.  
  • Adjusted profit for the period 2 (non-IFRS measure) decreased by 15.3% from RMB41.0 million for the three months ended June 30, 2011 to RMB34.7 million (US$5.5 million) for the three months ended June 30, 2012. A reconciliation of the adjusted profit for the period to profit/(loss) for the period determined in accordance with IFRS is set forth in Appendix V.  
  • Adjusted EBITDA 3 (non-IFRS measure) remained stable from RMB56.2 million for the three months ended June 30, 2011 compared to RMB56.1 million (US$8.8 million) for the three months ended June 30, 2012. A reconciliation of the adjusted EBITDA to profit/(loss) for the period determined in accordance with IFRS is set forth in Appendix VI.  
  • Basic and diluted loss per share was RMB0.37 cents (0.06 US cents) for the three months ended June 30, 2012. Basic and diluted loss per ADS 4 was RMB18.5 cents (2.91 US cents) for the three months ended June 30, 2012.  
  • Cash generated from operating activities decreased by 35.3% from RMB82.5 million for the three months ended June 30, 2011 to RMB53.4 million (US$8.4 million) for the three months ended June 30, 2012.  
  • Revenue-per-mu increased from RMB6,046 for the three months ended June 30, 2011 to RMB6,129 for the three months ended June 30, 2012.  
  • Production output decreased from 41,592 metric tons for the three months ended June 30, 2011 to 34,947 metric tons for the three months ended June 30, 2012.  
  • Our product mix shifted further towards solanaceous vegetables. Solanaceous vegetables sold to third parties in the PRC mainland increased from 60% for the three months ended June 30, 2011 to 65% for the three months ended June 30, 2012 of total revenue.  
  • Average selling price (ASP) of vegetables sold to third parties in the PRC mainland increased by 26.2% from 2.79 RMB/kg for the three months ended June 30, 2011 to 3.52 RMB/kg for the three months ended June 30, 2012.  
  • Total arable land as of June 30, 2012 was 26,124 mu (1,742 hectare), representing an increase of 1,061 mu compared to March 31, 2012, and an increase of 4,172 mu compared to June 30, 2011.  
  • Total greenhouse area as of June 30, 2012 was 8,915 mu (594 hectare), representing an increase of 300 mu compared to March 31, 2012 and an increase of 1,765 mu compared to June 30, 2011.

Mr. Shing Yung Ma, the Chairman and CEO of Le Gaga, commented, "During the three months ended June 30, 2012 we have completed the annual cycle of solanaceous plantation. As a result of the poor weather conditions from January through May, selling prices were very strong during the months of April and May but sales volume significantly down. As a result of continued poor weather conditions in April and May, the greenhouse construction experienced delay and the area of land in operation during the period and thus our revenue was lower than expected. Very low prices during the month of June further contributed to lower than expected revenue for the period.

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