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Le Gaga Second Quarter FY 2013 Earnings Release

HONG KONG, Feb. 22, 2013 (GLOBE NEWSWIRE) -- Le Gaga Holdings Limited (Nasdaq:GAGA) ("Le Gaga" or "the Company"), a leading greenhouse vegetable producer in China, today announced its financial results for the second fiscal quarter ended December 31, 2012. 1

Highlights of the Quarter Ended December 31, 2012

  • Revenue decreased by 31.9%, to RMB102.7 million (US$16.5 million) for Q2 FY2013, compared to RMB150.8 million a year ago.  
  • Profit for the period decreased by 1.6%, to RMB65.7 million (US$10.5 million) for Q2 FY2013, compared to RMB66.8 million a year ago.  
  • Adjusted profit for the period (non-IFRS measure) decreased by 49.1% to RMB32.8 million (US$5.3 million) for Q2 FY2013, compared to RMB64.5 million a year ago. A reconciliation of the adjusted profit for the period to profit for the period determined in accordance with IFRS is set forth in Appendix V.  
  • Adjusted EBITDA 3 (non-IFRS measure) decreased by 36.0% to RMB54.5 million (US$8.7 million) for Q2 FY2013, compared to RMB85.1 million a year ago. A reconciliation of the adjusted EBITDA to profit for the period determined in accordance with IFRS is set forth in Appendix VI.  
  • Basic and diluted earnings per share was RMB2.89 cents (0.46 US cents) and RMB2.88 cents (0.46 US cents), respectively, for Q2 FY2013. Basic and diluted earnings per ADS 4 was RMB144.5 cents (23.19 US cents) and RMB144.0 cents (23.11 US cents), respectively, for Q2 FY2013.  
  • Cash generated from operating activities decreased by 2.2%, to RMB50.7 million (US$8.1 million) for Q2 FY2013, compared to RMB51.9 million a year ago.  
  • Revenue-per-mu decreased to RMB4,382 (US$703) for Q2 FY2013, compared to RMB7,247 a year ago.  
  • Production output decreased to 22,419 metric tons for Q2 FY2013, compared to 36,536 metric tons a year ago.  
  • Our product mix planted in our fields shifted further towards solanaceous products. However, there was no significant change in our mix of products sold during the quarter as compared to last year, as we postponed part of the solanaceous products harvest from December 2012 to January 2013 in anticipation of further rising market prices. As a result, solanaceous vegetables sold to third parties in the PRC mainland represented 70% of total revenue for Q2 FY2013, compared to 69% of total revenue a year ago.  
  • Average selling price (ASP) of vegetables sold to third parties in the PRC mainland increased by 10.9% to 4.46 RMB/kg for Q2 FY2013, compared to 4.02 RMB/kg a year ago.  
  • Total arable land as of December 31, 2012 was 28,443 mu (1,896 hectare), representing an increase of 2,400 mu compared to September 30, 2012, and an increase of 2,825 mu compared to December 31, 2011.  
  • Total greenhouse area as of December 31, 2012 was 10,610 mu (707 hectare), representing an increase of 622 mu compared to September 30, 2012 and an increase of 2,151 mu compared to December 31, 2011.

Mr. Shing Yung Ma, the CEO of Le Gaga, commented, "In October we completed the planting of solanaceous products in our farm bases. Harvesting of solanaceous products commenced from the end of November. Market prices rose steadily in November and December. Volumes and quality of products in our greenhouses were in line with our expectations. However, we postponed part of our harvest originally scheduled for December until January in anticipation of a further increase in market prices leading up to the Chinese New Year holiday, which fell in the second week of February. In contrast, during the previous winter season we accelerated our harvest activities towards the end of the December quarter as prices rose rapidly in the month of December in anticipation of the Chinese New Year holiday, which fell in the third week of January last year. A stronger focus on off-season solanaceous production also means that we have reduced the area of short-cycle leafy and cruciferous vegetables, planted and harvested during the period. This reduces leafy and cruciferous revenue in the second quarter but increases expected revenue from solanaceous vegetables during the entire winter season.

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