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Le Gaga Fourth Quarter And Fiscal Year 2013 Earnings Release

HONG KONG, Sept. 17, 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 fourth fiscal quarter and fiscal year ended June 30, 2013. 1

Highlights of the Fourth Quarter and Fiscal Year Ended June 30, 2013 2

  • Revenue increased by 22.6% to RMB151.1 million (US$24.6 million) for Q4 FY2013, compared to RMB123.2 million a year ago. Revenue increased by 11.0% to RMB576.3 million (US$93.9 million) in FY2013, compared to RMB519.3 million a year ago.  
  • Loss for the period was RMB13.0 million (US$2.1 million) for Q4 FY2013, compared to a loss of RMB8.5 million a year ago. Profit for the year increased by 8.1% to RMB153.1 million (US$25.0 million), compared to a profit of RMB141.7 million a year ago.  
  • Adjusted profit for the period 3 (non-IFRS measure) decreased by 9.0% to RMB31.6 million (US$5.1 million) for Q4 FY2013, compared to RMB34.7 million a year ago. Adjusted profit for the year decreased by 12.5% to RMB166.8 million (US$27.2 million) in FY2013, compared to RMB190.7 million a year ago. A reconciliation of the adjusted profit for the period to (loss)/profit for the period determined in accordance with IFRS is set forth in Appendix V.
1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.1374 to US$1.00, the effective noon buying rate as of June 28, 2013 in The City of New York for cable transfers of RMB as set forth in H.10 weekly statistical release of the Federal Reserve Board.
2 On August 24, 2012, the Company's board of directors approved a change in the Company's fiscal year end from March 31 to June 30. Unless otherwise noted, the comparable period for the fourth quarter ended June 30, 2013 throughout this announcement is the three-month period ended June 30, 2012, while the comparable period for the twelve-month period ended June 30, 2013 throughout this announcement is the twelve-month period ended June 30, 2012.
3 Defined as profit for the period before the net impact of biological assets fair value adjustment and further adjusted to exclude, as applicable, the effects of non-cash share-based compensation, impairment losses on property, plant and equipment and prepayments and offering expenses charged to the income statement.
  • Adjusted EBITDA 4 (non-IFRS measure) increased by 0.2% to RMB56.2 million (US$9.2 million) for Q4 FY2013, compared to RMB56.1 million a year ago. Adjusted EBITDA decreased by 1.8% to RMB261.3 million (US$42.6 million) in FY2013, compared to RMB266.2 million a year ago. A reconciliation of the adjusted EBITDA to (loss)/profit for the period determined in accordance with IFRS is set forth in Appendix VI.  
  • Basic and diluted loss per share were RMB0.59 cents (0.10 US cents) for Q4 FY2013. Basic and diluted loss per ADS 5 were RMB29.50 cents (4.81 US cents) for Q4 FY2013.  
  • Basic and diluted earnings per share were RMB6.80 cents (1.11 US cents) for FY2013. Basic and diluted earnings per ADS were RMB340.00 cents (55.40 US cents) for FY2013.  
  • Cash generated from operating activities increased by 105.3% to RMB109.5 million (US$17.8 million) for Q4 FY2013, compared to RMB53.4 million a year ago. Cash generated from operating activities increased by 0.5% to RMB259.0 million (US$42.2 million) in FY2013, compared to RMB257.5 million a year ago.  
  • Revenue-per-mu decreased to RMB6,030 (US$982) for Q4 FY2013, compared to RMB6,129 a year ago. Revenue-per-mu decreased to RMB24,547 (US$4,000) in FY2013, compared to RMB25,296 a year ago.  
  • Production output increased to 39,980 metric tons for Q4 FY2013, compared to 34,947 metric tons a year ago. Production output increased to 138,212 metric tons in FY2013, compared to 137,547 metric tons a year ago.
4 Defined as EBITDA (earnings before net finance income (costs), income tax expense, depreciation and amortization), as further adjusted to exclude, as applicable, the effects of non-cash share-based compensation, the net impact of biological assets fair value adjustment, impairment losses on property, plant and equipment and prepayments and offering expenses charged to the income statement.
5 American depositary shares, which are traded on the NASDAQ Global Select Market, each represents 50 ordinary shares of the Company.
  • For Q4 FY2013 revenue from solanaceous, leafy and cruciferous vegetables increased.  For FY2013 our product mix shifted further towards solanaceous vegetables. Solanaceous vegetables sold to third parties in the PRC mainland represented 65% of total revenue in FY2013, compared to 61% of total revenue a year ago.  
  • Average selling price (ASP) of vegetables sold to third parties in the PRC mainland increased by 6.8% to 3.76 RMB/kg for Q4 FY2013, compared to 3.52 RMB/kg a year ago. ASP of vegetables sold to third parties in the PRC mainland increased by 10.3% to 4.07 RMB/kg for FY2013, compared to 3.69 RMB/kg a year ago.  
  • Total arable land as of June 30, 2013 was 29,382 mu (1,959 hectare), the same as of March 31, 2013, and an increase of 3,258 mu compared to June 30, 2012.  
  • Total greenhouse area as of June 30, 2013 was 11,963 mu (798 hectare), representing an increase of 921 mu compared to March 31, 2013 and an increase of 3,048 mu compared to June 30, 2012.

Mr. Shing Yung Ma, the CEO of Le Gaga, commented, "Our performance in the fourth fiscal quarter and the fiscal year 2013 was affected by the overall slowdown of the Chinese economy and lower government spending, which resulted in significantly lower market prices during the winter months, as compared to the previous year. The milder weather in South China further contributed to lower market prices. Although production volume and product quality were in line with our expectations, the lower market prices resulted in lower revenue than initially expected. During fiscal year 2013 we upgraded our product mix and further focused on the off-season production of solanaceous products.

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