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 third fiscal quarter ended
March 31, 2013.1
Highlights of the Quarter Ended March 31,
2013
- Revenue increased by 65.8% to RMB235.7 million (US$38.0
million) for Q3 FY2013, compared to RMB142.2 million a year
ago.2
- Loss for the period was RMB0.9 million (US$0.1 million) for Q3
FY2013, compared to a loss of RMB3.9 million a year ago.
- Adjusted profit for the period3 (non-IFRS measure) increased by
54.0% to RMB90.7 million (US$14.6 million) for Q3 FY2013, compared
to RMB58.9 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 EBITDA4 (non-IFRS measure) increased by 46.5% to
RMB115.9 million (US$18.7 million) for Q3 FY2013, compared to
RMB79.1 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 loss per share were RMB0.04 cents (0.01 US
cents) for Q3 FY2013. Basic and diluted loss per ADS5 were RMB2.00
cents (0.32 US cents) for Q3 FY2013.
- Cash generated from operating activities decreased by 9.5% to
RMB90.5 million (US$14.6 million) for Q3 FY2013, compared to
RMB100.0 million a year ago.
- Revenue-per-mu increased to RMB9,386 (US$1,511) for Q3 FY2013,
compared to RMB7,205 a year ago.
- Production output increased to 49,003 metric tons for Q3
FY2013, compared to 30,070 metric tons a year ago.
- There was no significant change in our mix of products sold
during the quarter as compared to last year. Solanaceous vegetables
sold to third parties in the PRC mainland represented 87% of total
revenue for Q3 FY2013, compared to 88% of total revenue a year ago.
- Average selling price (ASP) of vegetables sold to third parties
in the PRC mainland decreased by 2.8% to 4.58 RMB/kg for Q3 FY2013,
compared to 4.72 RMB/kg a year ago.
- Total arable land as of March 31, 2013 was 29,382 mu (1,959
hectare), representing an increase of 939 mu compared to December
31, 2012, and an increase of 4,319 mu compared to March 31, 2012.
- Total greenhouse area as of March 31, 2013 was 11,042 mu (736
hectare), representing an increase of 432 mu compared to December
31, 2012 and an increase of 2,427 mu compared to March 31,
2012.
1 This announcement contains translations of certain Renminbi
(RMB) amounts into U.S. dollars (US$) 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
RMB6.2108 to US$1.00, the effective noon buying rate as of March
29, 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 The comparable period throughout this announcement is the
three-month period ended March 31, 2012, unless otherwise
noted.
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.
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.
Mr. Shing Yung Ma, the CEO of Le Gaga, commented, "December
through April is the key harvest season for solanaceous products
for our company. Prices rose steadily during the months of
November, December and January, but where overall much lower than
the previous year. As a result, we postponed much of our harvest to
later in the season in anticipation of further increases in market
prices after January. Prices reached a peak right before the
Chinese New Year Holiday in February, but then dropped immediately
afterwards. We believe that the lower market prices during the
winter season as compared to the same period of last year were
primarily due to the milder weather in South China, the absence of
extreme weather in other parts of the country, and the overall slow
down of the Chinese economy. Prices increased again starting the
end of March and reached a season high in April due to heavy rains
in South China. Although production volume and product quality were
in line with our expectations, the lower market prices resulted in
lower revenue than initially expected.
We continue to spend much effort to enhance our greenhouse
production system. This includes upgrading existing
greenhouses, constructing additional nursery greenhouses and
expanding the soil-less production system for peppers and tomatoes
at more of our existing greenhouses. Favorable weather allowed
us to make progress on our greenhouse construction projects, as we
added over 400 mu of greenhouses during the quarter. We have also
added a substantial area of new arable land during the quarter in
line with our land expansion plans."
Mr. Auke Cnossen, the CFO of Le Gaga, added, "Despite lower
market prices, we achieved higher average selling prices for
solanaceous products compared to the same three-month period last
year. This was partly as a result of better product quality,
product mix and harvest timing and partly due to more spending on
product packaging and shipping products further away to markets
with better prices. This also resulted in higher packing and
transportation costs as a percentage of revenue.
Our focus on high value products remains important because four
of our major expenses, including labor, fertilizer, packing and
transportation, are all directly correlated to production volume.
Our cost of goods sold increased year over year as a result of
higher direct material costs primarily due to higher seed costs for
solanaceous products, higher labor cost as wage inflation outpaced
the increase in selling prices, higher depreciation due to more
greenhouse coverage, higher rental expenses as newly leased land
with higher rents came into production during the quarter and
higher overhead expenses.
A large negative net impact of biological assets fair value
adjustment was recorded for the period. The large negative net
impact was due to the solanaceous production cycle coming to an end
and thus a decrease in area planted with high value solanaceous
crops as well as lower expected volume in those greenhouses still
planted with solanaceous products at the end of March as compared
to the end of December. Our operating cash flow was lower
compared to last year, despite higher revenue, primarily due to
trade receivables balances."
Summary of Operating Data
|
As of Mar 31,
2012 |
As of Dec 31,
2012 |
As of Mar 31,
2013 |
Arable land |
|
|
|
- Operating land |
20,013 mu |
24,374 mu |
24,913 mu |
|
(1,334 hectare) |
(1,625 hectare) |
(1,661 hectare) |
- Land under construction or reserved
(1) |
5,050 mu |
4,069 mu |
4,469 mu |
|
(337 hectare) |
(271 hectare) |
(298 hectare) |
- Total |
25,063 mu |
28,443 mu |
29,382 mu |
|
(1,671 hectare) |
(1,896 hectare) |
(1,959 hectare) |
|
|
|
|
Greenhouse area (2) |
|
|
|
- Total |
8,615 mu |
10,610 mu |
11,042 mu |
|
(574 hectare) |
(707 hectare) |
(736 hectare) |
|
|
|
|
Greenhouse area as a percentage
of |
|
|
|
- Operating land |
43.0% |
43.5% |
44.3% |
- Total arable land |
34.4% |
37.3% |
37.6% |
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
|
|
|
|
Total production output (metric tons) |
30,070 |
49,003 |
102,600 |
98,232 |
Production yield (metric tons per mu) |
1.5 |
2.0 |
5.0 |
4.3 |
Revenue-per-mu (RMB) |
7,205 |
9,386 |
19,328 |
18,534 |
|
(1) Land under construction or reserved
includes (i) newly leased land which has not yet been put into
production and is either under construction or in reserve for
future development, |
and (ii) land which we plan to return and is
not in operation. |
As of March 31, 2013, we had 3,770 mu of
newly leased land and 699 mu of land which we plan to return. |
|
(2) As of March 31, 2012, there were 450 mu
bamboo-made greenhouses and 8,165 mu steel-made greenhouses. |
As of December 31, 2012, there were 450 mu
bamboo-made greenhouses and 10,160 mu steel-made greenhouses. |
As of March 31, 2013, there were 450 mu
bamboo-made greenhouses and 10,592 mu steel-made greenhouses. |
Financial Results for the Three Months Ended March 31,
2013
Revenue increased by 65.8% to RMB235.7 million (US$38.0 million)
for Q3 FY2013, compared to RMB142.2 million a year ago. The
increase in revenue was due to (1) an increase in revenue-per-mu as
a result of more pronounced seasonality of our annual revenue and
(2) an increase in our land area, greenhouse area and open field
utilization. We further concentrated our harvesting activity during
the months of December through April, when prices for solanaceous
vegetables generally are highest. The more pronounced seasonality
of our annual revenue resulted in an increase in revenue-per-mu to
RMB9,386 (US$1,511) for Q3 FY2013, compared to RMB7,205 for the
same period last year. We planted and harvested a substantially
larger area of solanaceous vegetables compared to the previous year
due to our increased greenhouse area. Mild weather allowed us to
also increase the area and volume of leafy and cruciferous products
harvested from open field production.
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
Revenue |
ASP |
Revenue |
ASP |
Revenue |
ASP |
Revenue |
ASP |
|
(%) |
(RMB/kg) |
(%) |
(RMB/kg) |
(%) |
(RMB/kg) |
(%) |
(RMB/kg) |
PRC revenue6 |
|
|
|
|
|
|
|
|
Solanaceous |
88% |
4.96 |
87% |
5.23 |
60% |
4.63 |
67% |
5.08 |
Leafy |
5% |
3.12 |
6% |
2.12 |
24% |
2.78 |
19% |
3.02 |
Cruciferous |
4% |
3.34 |
5% |
2.34 |
10% |
2.90 |
10% |
2.92 |
Others |
0% |
3.10 |
2% |
4.88 |
1% |
3.08 |
3% |
4.42 |
Sub-total |
97% |
4.72 |
100% |
4.58 |
95% |
3.75 |
99% |
4.20 |
Hong Kong revenue |
3% |
|
0% |
|
5% |
|
1% |
|
Total |
100% |
|
100% |
|
100% |
|
100% |
|
|
|
|
|
|
|
|
|
|
6 Defined as revenue from sales
of respective products in the PRC mainland to external
customers |
Market prices were markedly lower than last year due
to the mild weather in South China, the absence of any extreme
weather in other parts of the country, and the slow down of the
Chinese economy. Despite lower market prices, we achieved higher
average selling prices for solanaceous products, but significantly
lower selling prices for leafy and cruciferous vegetables. The
higher average selling prices for solanaceous products was a result
of (1) a more favorable product mix within the solanaceous
category, (2) better product quality, and (3) better harvest
timing. The use of better packing materials as well as
shipping to markets further away with better market prices, further
increased our average selling prices for solanaceous products.
Cost of inventories sold increased by RMB74.8 million, or 60.9%,
to RMB197.7 million (US$31.8 million) for Q3 FY2013, compared to
RMB122.9 million a year ago.
Adjusted cost of inventories sold7 (non-IFRS measure) increased
by RMB37.9 million, or 98.8%, to RMB76.3 million (US$12.3 million)
for Q3 FY2013, compared to RMB38.4 million a year
ago. Adjusted cost of inventories sold as a percentage of
revenue increased from 27.0% for the three months ended March 31,
2012 to 32.4% for the three months ended March 31, 2013, primarily
due to increased direct materials, labor, rental and overhead costs
as well as higher depreciation charges, as a percentage of
revenue.
7 Defined as cost of inventories sold before biological assets
fair value adjustment
A reconciliation of adjusted cost of inventories sold to cost of
inventories sold determined in accordance with IFRS is set forth in
Appendix IV.
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
Biological assets fair value adjustment
included in cost of inventories sold |
(84,499) |
(121,428) |
(19,551) |
(223,174) |
(221,335) |
(35,637) |
|
|
|
|
|
|
|
Changes in fair value less costs to sell of
biological assets |
35,890 |
31,401 |
5,056 |
250,764 |
259,285 |
41,747 |
|
|
|
|
|
|
|
Net impact of biological assets fair value
adjustment |
(48,609) |
(90,027) |
(14,495) |
27,590 |
37,950 |
6,110 |
The net impact of the biological assets fair value
adjustment represents the net increase or decrease in gain from
fair value less costs to sell of crops on our farmland at the end
of the reporting period compared to the end of the immediately
preceding reporting period.
A net loss of RMB90.0 million was recognized arising from
biological assets fair value adjustment for Q3 FY2013, as compared
to a net loss of RMB48.6 million recognized a year ago.
The net loss of RMB90.0 million for Q3 FY2013 primarily arose
from the harvesting activities of solanaceous products. As we
were approaching the end of the solanaceous products season and
most solanaceous products had been harvested, we had lower expected
volume on our farmland as well as lower planted area on March 31,
2013, when compared with that of December 31, 2012 (the immediately
preceding reporting period end), resulting in a negative net
impact.
The larger negative net impact for Q3 FY2013 compared to that of
a year ago was primarily due to more solanaceous products harvested
during Q3 FY2013, as a result of more pronounced seasonality.
Our packing expenses increased by RMB9.6 million, or 90.2%, to
RMB20.3 million (US$3.3 million) for Q3 FY2013, compared to RMB10.7
million a year ago, primarily due to an increase of RMB10.3 million
in packing materials consumed, as a result of (1) the increased
production volume of solanaceous products, which require more
packaging compared to leafy and cruciferous products, (2) our
effort to enhance our brand awareness, (3) better packaging used to
enhance the selling price, and (4) more long-distance
transportations, which requires better packaging.
Our land preparation costs increased by RMB2.9 million, or
26.2%, to RMB14.0 million (US$2.3 million) for Q3 FY2013, compared
to RMB11.1 million a year ago, which was primarily due to an
increase in greenhouse coverage which increased the unit land
preparation cost.
Our selling and distribution expenses increased by RMB10.4
million, or 114.1%, to RMB19.6 million (US$3.2 million) for Q3
FY2013, compared to RMB9.2 million a year ago, which was primarily
due to the increase of RMB10.6 million in transportation costs, in
line with the increase in our revenue and more long-distance
transportations.
Our administrative expenses decreased by RMB5.5 million, or
36.5%, to RMB9.5 million (US$1.5 million) for Q3 FY2013, compared
to RMB15.0 million a year ago, primarily due to a decrease of
RMB4.2 million in equity-settled share-based compensation.
As a result of the foregoing factors, loss for Q3 FY2013 was
RMB0.9 million (US$0.1 million), compared to a loss of RMB3.9
million a year ago.
Adjusted profit for the period increased by 54.0% to RMB90.7
million (US$14.6 million) for Q3 FY2013, compared to RMB58.9
million a year ago.
Basic and diluted loss per share were RMB0.04 cents (0.01 US
cents) for Q3 FY2013. Basic and diluted loss per ADS were
RMB2.00 cents (0.32 US cents) for Q3 FY2013.
Our operating cash inflow decreased by RMB9.5 million, or 9.5%,
to RMB90.5 million (US$14.6 million) for Q3 FY2013, compared to
RMB100.0 million a year ago. Even though sales were high for Q3
FY2013, operating cash flow was impacted by an increase in trade
receivables balances from December 31, 2012 to March 31, 2013 due
to low sales in December and much higher sales in February and
March. In contrast, trade receivables balances decreased from
December 31, 2011 to March 31, 2012 due to very high sales in
December 2011 and lower sales in March 2012. Furthermore, cash paid
for our cost of revenue and operating expenses increased compared
to last year.
Cash used in investing activities increased by RMB38.9 million,
or 57.9%, to RMB106.0 million (US$17.1 million) for Q3 FY2013,
compared to RMB67.1 million a year ago. The net cash outflow
of RMB106.0 million for Q3 FY2013 was primarily due to our payment
for construction in progress and prepayments for construction works
totalling RMB130.1 million, which consisted of (1) payment for
construction of greenhouses of RMB73.8 million, (2) payment of
RMB31.7 million for agricultural infrastructure, and (3) payment
for land improvements of RMB24.6 million, partially offset by the
decrease in pledged bank deposits related to construction work of
RMB25.0 million.
Business Outlook for the Fiscal Year Ending June 30,
2013
The Company updates its annual guidance for the fiscal year
ending June 30, 2013 to reflect the markedly lower than initially
expected market prices during the winter season as well as heavy
rains in South China in May 2013 that the Company expects would
lower its open field revenue in May and June. The Company estimates
that its revenue for the fiscal year ending June 30, 2013 will be
between RM570 million and RMB600 million, representing a year over
year growth rate of approximately 9.8% to 15.5% for the 12 months
ending June 30, 2013 from the 12 months ended June 30, 2012. This
forecast reflects the Company's current and preliminary view, which
is subject to change.
Conference Call
The Company will host a conference call at 8:00 a.m. ET on May
28, 2013 (8:00 p.m. Hong Kong Time) to review the Company's
financial results and answer questions. You may access the live
interactive call via:
- +1 866 978 9970 (U.S. Toll Free)
- +8008 0361 03 (China Toll Free)
- +852 3027 5500 (International)
- Pass Code: 534242#
Please dial-in approximately 10 minutes in advance to facilitate
an on-time start.
A replay will be available for two weeks after the call and may
be accessed via:
- +852 3027 5520
- Passcode: 135415#
A live and archived webcast of the call, as well as a
presentation with the Company's financial results will be available
on the Company's website at www.legaga.com.hk/html/index.php.
About Le Gaga Holdings Limited
(Nasdaq:GAGA)
Le Gaga is a leading greenhouse vegetable producer in China. The
Company sells and markets greenhouse vegetables such as peppers,
tomatoes, cucumbers and eggplants, as well as green leafy
vegetables to wholesalers, institutional customers and supermarkets
in China and Hong Kong. The Company has successfully built a
trusted brand among its customers.
The Company currently operates farms in the Chinese provinces of
Fujian, Guangdong and Hebei. Leveraging its large-scale
greenhouses, proprietary horticultural know-how and comprehensive
database, the Company specializes in producing and selling
high-quality, off-season vegetables during the winter months.
Safe Harbor Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
including certain plans, expectations, goals, and projections,
which are subject to numerous assumptions, risks, and
uncertainties. Forward-looking statements typically are identified
by the use of terms such as "may," "could," "would," "will,"
"plan," "anticipate," "believe," "estimate," "predict," "outlook,"
"on track," "potential," "expect," "intend" and "future" or similar
expressions, although some forward-looking statements are expressed
differently. You should consider statements that contain these
words carefully because they describe our expectations, plans,
strategies and goals and our beliefs concerning future business
conditions, our results of operations, financial position, and our
business outlook or they state other ''forward-looking''
information based on currently available
information. Assumptions and other important factors could
cause our actual results to differ materially from those
anticipated in our forward-looking statements include, but not
limited to: our ability to continue to lease farmland or
forestland; the legality or validity of our leases of agricultural
land; risks associated with extreme weather conditions, natural
disasters, crops diseases, pests and other natural conditions;
fluctuations in market prices and demand for our products; risks
attributable to our growth strategies, including increasing our
greenhouse coverage, increasing our production scale, strengthening
our sales, marketing and distribution efforts, focusing on
off-season products, increasingly shifting our product mix to
solanaceous products, and expanding our research and development
capability; risks of product contamination and product liability
claims as well as negative publicity associated with food safety
issues in China; risks of labor shortage and rising labor costs;
regulatory compliance, changes or action, including environmental
and trade regulation, our ability to comply with U.S. public
accounting reporting requirements, including maintenance of an
effective system of internal controls over financial reporting; our
susceptibility to adverse changes in political, economic and other
policies of the Chinese government that could materially harm its
business; the risk factors or uncertainties are listed from time to
time in our filings with the Securities and Exchange Commission.
Other factors and assumptions not identified above are also
relevant to the forward-looking statements, and if they prove
incorrect, could also cause actual results to differ materially
from those projected. All forward-looking statements are
expressly qualified in their entirety by the foregoing cautionary
statements. Our forward-looking statements speak only as of
the date made. We assume no obligation to update or to
publicly announce the results of any revisions to any of the
forward-looking statements to reflect actual results, future events
or developments, changes in assumptions or changes in other factors
affecting the forward-looking statements.
Information Related to Certain Non-IFRS
measures
This press release contains the following financial measures
that differ from the comparable measures under International
Financial Reporting Standards (IFRS): adjusted cost of inventories
sold, adjusted profit for the period and adjusted
EBITDA. Reconciliations between those non-IFRS measures and
the comparable IFRS measures are included elsewhere in this press
release. While we believe these measures are useful for
investors to assess our financial results, these non-IFRS measures
should not be considered substitutes for the most directly
comparable IFRS measures. Additional information concerning
non-IFRS measures are included in our filings with the Securities
and Exchange Commission that are available in the "Investors – SEC
Filings" section of our website, www.legaga.com.hk.
Adjusted cost of inventories sold is defined as
cost of inventories sold before biological assets fair value
adjustment. We are primarily engaged in
agricultural activities of cultivating, processing and distributing
vegetables and have therefore adopted International Accounting
Standard 41 "Agriculture", or IAS 41, in accounting for biological
assets and agricultural produce. Unlike the historical cost
accounting model, IAS 41 requires us to recognize in our income
statements the gain or loss arising from the change in fair value
less costs to sell of biological assets and agricultural produce
for each reporting period. Cost of inventories sold determined
under IAS 41 reflects the deemed cost of agricultural produce,
which is based on their fair value (less costs to sell) at the
point of harvest. Biological assets fair value adjustment is
the difference between the deemed cost of the agricultural produce
and the plantation expenditure we incurred to cultivate the produce
to the point of harvest. Although an "adjusted" cost of
inventories sold excluding these fair value adjustments is a
non-IFRS measure, we believe that separate analysis of the cost of
inventories sold excluding these fair value adjustments adds
clarity to the constituent parts of our cost of inventories sold
and provides additional useful information for investors to assess
our cost structure. A reconciliation of adjusted cost of
inventories sold to IFRS cost of inventories sold is set forth in
Appendix IV.
Adjusted profit for the period represents
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,
offering expenses and impairment losses on property, plant and
equipment and prepayments charged to the income statement. We
believe that separate analysis of the net impact of the biological
assets fair value adjustments, non-cash share-based compensation,
offering expenses and impairment losses on property, plant and
equipment and prepayments adds clarity to the constituent part of
our results of operations and provides additional useful
information for investors to assess the operating performance of
our business. A reconciliation of adjusted profit for the period is
set forth in Appendix V.
Adjusted EBITDA is 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, offering expenses and
impairment losses on property, plant and equipment and prepayments
charged to the income statement. We believe adjusted EBITDA is
useful to investors because it is frequently used by securities
analysts, investors and other interested parties in the evaluation
of companies in our industry. You should use adjusted EBITDA as a
supplemental analytical measure to, and in conjunction with, our
IFRS financial data. In addition, we believe that adjusted EBITDA
is useful in evaluating our operating performance compared to that
of other companies in our industry because the calculation of
adjusted EBITDA generally eliminates the effects of financing and
income taxes and the accounting effects of capital spending, which
items may vary for different companies for reasons unrelated to
overall operating performance. We use these non-IFRS financial
measures for planning and forecasting and measuring results against
the forecast. Using several measures to evaluate the business
allows us and investors to assess our relative performance against
our competitors and ultimately monitor our capacity to generate
returns for our shareholders. A reconciliation of the adjusted
EBITDA to profit for the period is set forth in Appendix VI.
Appendix I |
Le Gaga Holdings Limited |
Unaudited Condensed
Consolidated Income Statements |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands, except per share
data) |
|
|
|
|
|
|
|
Revenue |
142,174 |
235,700 |
37,950 |
396,067 |
425,162 |
68,455 |
Cost of inventories sold |
(122,870) |
(197,726) |
(31,836) |
(349,104) |
(366,466) |
(59,005) |
Changes in fair value less costs to sell
related to |
|
|
|
|
|
|
Crops harvested during the period |
23,841 |
5,736 |
924 |
190,197 |
199,092 |
32,056 |
Growing crops on the farmland at the
period end |
12,049 |
25,665 |
4,132 |
60,567 |
60,193 |
9,691 |
Total changes in fair value less costs to
sell of biological assets |
35,890 |
31,401 |
5,056 |
250,764 |
259,285 |
41,747 |
Packing expenses |
(10,678) |
(20,310) |
(3,270) |
(24,974) |
(34,812) |
(5,605) |
Land preparation costs |
(11,124) |
(14,044) |
(2,261) |
(30,585) |
(40,271) |
(6,484) |
Other income |
1,735 |
425 |
68 |
3,195 |
1,284 |
207 |
Research and development expenses |
(2,661) |
(4,946) |
(796) |
(7,030) |
(9,671) |
(1,557) |
Selling and distribution expenses |
(9,156) |
(19,599) |
(3,156) |
(23,238) |
(30,485) |
(4,908) |
Administrative expenses |
(14,982) |
(9,518) |
(1,532) |
(44,158) |
(32,367) |
(5,211) |
Impairment losses on property, plant and
equipment and prepayments |
(8,407) |
-- |
-- |
(14,823) |
-- |
-- |
Other expenses |
(410) |
(539) |
(87) |
(2,418) |
(543) |
(87) |
Results from operating
activities |
(489) |
844 |
136 |
153,696 |
171,116 |
27,552 |
Finance income |
579 |
1,669 |
269 |
8,901 |
4,985 |
803 |
Finance costs |
(2,680) |
(3,293) |
(530) |
(7,994) |
(9,545) |
(1,537) |
Net finance
(costs)/income |
(2,101) |
(1,624) |
(261) |
907 |
(4,560) |
(734) |
(Loss)/profit before
taxation |
(2,590) |
(780) |
(125) |
154,603 |
166,556 |
26,818 |
Income tax expense |
(1,280) |
(128) |
(21) |
(4,415) |
(385) |
(62) |
(Loss)/profit for the
period |
(3,870) |
(908) |
(146) |
150,188 |
166,171 |
26,756 |
Earnings per share (in
cents) |
|
|
|
|
|
|
Basic |
(0.17) |
(0.04) |
(0.01) |
6.57 |
7.32 |
1.18 |
Diluted |
(0.17) |
(0.04) |
(0.01) |
6.48 |
7.32 |
1.18 |
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
Basic |
2,276,652,686 |
2,249,511,328 |
|
2,284,998,990 |
2,269,203,878 |
|
Diluted |
2,276,652,686 |
2,249,511,328 |
|
2,317,721,856 |
2,271,136,072 |
|
Earnings per ADS (in
cents) |
|
|
|
|
|
|
Basic |
(8.50) |
(2.00) |
(0.32) |
328.50 |
366.00 |
58.93 |
Diluted |
(8.50) |
(2.00) |
(0.32) |
324.00 |
366.00 |
58.93 |
Weighted average number of ADSs
outstanding: |
|
|
|
|
|
|
Basic |
45,533,054 |
44,990,227 |
|
45,699,980 |
45,384,078 |
|
Diluted |
45,533,054 |
44,990,227 |
|
46,354,437 |
45,422,721 |
|
|
|
Appendix II |
Le Gaga Holdings Limited |
Unaudited Condensed
Consolidated Balance Sheets |
As of June 30, 2012 and
March 31, 2013 |
|
|
|
|
|
June 30, 2012 |
March 31, 2013 |
|
RMB |
RMB |
US$ |
|
(In thousands) |
Non-current assets |
|
|
|
Property, plant and equipment |
700,245 |
928,899 |
149,562 |
Construction in progress |
68,627 |
44,808 |
7,215 |
Lease prepayments |
1,256 |
1,201 |
193 |
Long-term deposits and prepayments |
163,494 |
180,728 |
29,099 |
Biological assets |
7,833 |
9,150 |
1,473 |
Deferred tax assets |
1,943 |
1,543 |
248 |
Total non-current
assets |
943,398 |
1,166,329 |
187,790 |
|
|
|
|
Current assets |
|
|
|
Biological assets |
30,709 |
85,383 |
13,748 |
Inventories |
16,427 |
14,941 |
2,406 |
Trade and other receivables |
64,566 |
124,732 |
20,083 |
Pledged bank deposits |
-- |
10,000 |
1,610 |
Cash |
504,506 |
357,214 |
57,515 |
Total current assets |
616,208 |
592,270 |
95,362 |
|
|
|
|
Total assets |
1,559,606 |
1,758,599 |
283,152 |
|
|
|
|
Equity |
|
|
|
Capital |
692,833 |
682,320 |
109,860 |
Reserves |
742,820 |
885,403 |
142,559 |
Total equity |
1,435,653 |
1,567,723 |
252,419 |
|
|
|
|
Non-current liabilities |
|
|
|
Bank loans |
61,998 |
-- |
-- |
|
|
|
|
Current liabilities |
|
|
|
Bank loans |
24,307 |
110,589 |
17,806 |
Trade and other payables |
31,111 |
73,751 |
11,875 |
Current taxation |
6,537 |
6,536 |
1,052 |
Total current
liabilities |
61,955 |
190,876 |
30,733 |
|
|
|
|
Total liabilities |
123,953 |
190,876 |
30,733 |
|
|
|
|
Total equity and
liabilities |
1,559,606 |
1,758,599 |
283,152 |
|
|
Appendix III |
Le Gaga Holdings Limited |
Unaudited Condensed
Consolidated Statements of Cash Flow |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands) |
Operating activities |
|
|
|
|
|
|
(Loss)/profit before taxation |
(2,590) |
(780) |
(125) |
154,603 |
166,556 |
26,818 |
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
Amortization of lease prepayments |
14 |
14 |
2 |
61 |
42 |
7 |
Depreciation |
16,837 |
23,427 |
3,772 |
50,556 |
64,929 |
10,454 |
Equity settled share-based transactions |
5,722 |
1,540 |
248 |
18,586 |
6,988 |
1,125 |
Changes in fair value less costs to sell of
biological assets |
(35,890) |
(31,401) |
(5,056) |
(250,764) |
(259,285) |
(41,747) |
Interest income |
(583) |
(754) |
(121) |
(1,018) |
(1,712) |
(276) |
Interest expense |
2,680 |
3,293 |
530 |
7,994 |
9,545 |
1,537 |
Gain on disposal of a subsidiary |
(1,309) |
-- |
-- |
(1,309) |
-- |
-- |
Net loss on disposal of property, plant and
equipment |
212 |
2 |
-- |
2,080 |
4 |
1 |
Impairment losses: |
|
|
|
|
|
|
- Property, plant and equipment |
8,407 |
-- |
-- |
12,771 |
-- |
-- |
- Prepayments |
-- |
-- |
-- |
2,052 |
-- |
-- |
Foreign exchange gain |
(24) |
(901) |
(146) |
(6,304) |
(2,619) |
(423) |
|
|
|
|
|
|
|
|
(6,524) |
(5,560) |
(896) |
(10,692) |
(15,552) |
(2,504) |
|
|
|
|
|
|
|
Changes in current biological assets due to
plantations |
(38,767) |
(52,493) |
(8,452) |
(121,470) |
(154,946) |
(24,948) |
Changes in inventories, net of effect of
harvested crops transferred to inventories |
118,716 |
198,870 |
32,020 |
338,129 |
361,057 |
58,134 |
Decrease/(increase) in trade and other
receivables |
24,075 |
(56,009) |
(9,018) |
(15,411) |
(60,127) |
(9,681) |
Decrease in long-term deposits and
prepayments |
850 |
2,619 |
422 |
4,528 |
9,029 |
1,454 |
Increase in trade and other payables |
1,579 |
3,023 |
487 |
11,988 |
9,950 |
1,602 |
|
|
|
|
|
|
|
Cash generated from
operations |
99,929 |
90,450 |
14,563 |
207,072 |
149,411 |
24,057 |
|
|
|
|
|
|
|
Income tax paid |
36 |
-- |
-- |
(2,881) |
-- |
-- |
|
|
|
|
|
|
|
Net cash generated from operating
activities |
99,965 |
90,450 |
14,563 |
204,191 |
149,411 |
24,057 |
|
|
Appendix III |
Le Gaga Holdings Limited |
Unaudited Condensed
Consolidated Statements of Cash Flow |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands) |
Investing activities |
|
|
|
|
|
|
Interest received |
583 |
754 |
121 |
1,018 |
1,712 |
276 |
Plantations of non-current biological
assets |
(334) |
(397) |
(64) |
(1,138) |
(1,331) |
(214) |
Payment for the purchase of property, plant
and equipment |
(656) |
(1,171) |
(189) |
(3,046) |
(13,817) |
(2,225) |
Payment for construction in progress and
prepayments for construction works |
(70,415) |
(130,144) |
(20,954) |
(229,802) |
(258,777) |
(41,666) |
Net cash inflow of disposal of a
subsidiary |
3,737 |
-- |
-- |
3,737 |
-- |
-- |
Proceeds from disposal of property, plant and
equipment |
-- |
-- |
-- |
4,331 |
-- |
-- |
Decrease/(increase) in pledged bank deposits
related to construction work |
-- |
25,000 |
4,025 |
-- |
(10,000) |
(1,610) |
|
|
|
|
|
|
|
Net cash used in investing
activities |
(67,085) |
(105,958) |
(17,061) |
(224,900) |
(282,213) |
(45,439) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Interest paid |
(71) |
(716) |
(115) |
(5,143) |
(6,783) |
(1,092) |
Proceeds of bank loans |
10,000 |
-- |
-- |
10,000 |
35,000 |
5,635 |
Repayment of bank loan |
-- |
(10,000) |
(1,610) |
-- |
(10,000) |
(1,610) |
Proceeds from exercise of share options |
2,485 |
-- |
-- |
3,161 |
-- |
-- |
Payment for repurchase of shares |
-- |
(20,821) |
(3,352) |
(10,185) |
(31,643) |
(5,095) |
|
|
|
|
|
|
|
Net cash generated from/(used in)
financing activities |
12,414 |
(31,537) |
(5,077) |
(2,167) |
(13,426) |
(2,162) |
|
|
|
|
|
|
|
Net increase/(decrease) in
cash |
45,294 |
(47,045) |
(7,575) |
(22,876) |
(146,228) |
(23,544) |
|
|
|
|
|
|
|
Cash at beginning of the
period |
475,199 |
404,626 |
65,149 |
551,491 |
504,506 |
81,230 |
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes |
(18) |
(367) |
(59) |
(8,140) |
(1,064) |
(171) |
|
|
|
|
|
|
|
Cash at March 31 |
520,475 |
357,214 |
57,515 |
520,475 |
357,214 |
57,515 |
|
|
Appendix IV |
Le Gaga Holdings Limited |
Reconciliation of Non-IFRS
adjusted cost of inventories sold to cost of inventories sold |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands) |
Cost of inventories sold |
(122,870) |
(197,726) |
(31,836) |
(349,104) |
(366,466) |
(59,005) |
Less: biological assets fair value
adjustment |
84,499 |
121,428 |
19,551 |
223,174 |
221,335 |
35,637 |
|
|
|
|
|
|
|
Adjusted cost of inventories sold |
(38,371) |
(76,298) |
(12,285) |
(125,930) |
(145,131) |
(23,368) |
|
|
Appendix V |
Le Gaga Holdings Limited |
Reconciliation of Non-IFRS
adjusted profit for the period to profit for the period |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands) |
(Loss)/profit for the period |
(3,870) |
(908) |
(146) |
150,188 |
166,171 |
26,756 |
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
Non-cash share-based compensation |
5,722 |
1,540 |
248 |
18,586 |
6,988 |
1,125 |
Impairment losses from property, plant
and equipment and prepayments |
8,407 |
-- |
-- |
14,823 |
-- |
-- |
Net impact of biological assets fair
value adjustment |
48,609 |
90,027 |
14,495 |
(27,590) |
(37,950) |
(6,110) |
|
|
|
|
|
|
|
Adjusted profit for the period |
58,868 |
90,659 |
14,597 |
156,007 |
135,209 |
21,771 |
|
|
Appendix VI |
Le Gaga Holdings Limited |
Reconciliation of Non-IFRS
adjusted EBITDA to profit for the period |
For the three months and
nine months ended March 31, 2012 and 2013 |
|
|
|
|
|
|
|
|
Three Months Ended March
31, |
Nine Months Ended March
31, |
|
2012 |
2013 |
2012 |
2013 |
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|
(In thousands) |
(Loss)/profit for the period |
(3,870) |
(908) |
(146) |
150,188 |
166,171 |
26,756 |
Add: |
|
|
|
|
|
|
Amortization of lease prepayments |
14 |
14 |
2 |
61 |
42 |
7 |
Depreciation |
16,837 |
23,427 |
3,772 |
50,556 |
64,929 |
10,454 |
Finance costs |
2,680 |
3,293 |
530 |
7,994 |
9,545 |
1,537 |
Income tax expense |
1,280 |
128 |
21 |
4,415 |
385 |
62 |
Non-cash share-based
compensation |
5,722 |
1,540 |
248 |
18,586 |
6,988 |
1,125 |
Impairment losses from property, plant
and equipment and prepayments |
8,407 |
-- |
-- |
14,823 |
-- |
-- |
Biological assets fair value adjustment
included in cost of inventories sold |
84,499 |
121,428 |
19,551 |
223,174 |
221,335 |
35,637 |
Less: |
|
|
|
|
|
|
Finance income |
(579) |
(1,669) |
(269) |
(8,901) |
(4,985) |
(803) |
Changes in fair value less costs to
sell of biological assets |
(35,890) |
(31,401) |
(5,056) |
(250,764) |
(259,285) |
(41,747) |
|
|
|
|
|
|
|
Adjusted EBITDA |
79,100 |
115,852 |
18,653 |
210,132 |
205,125 |
33,028 |
CONTACT: For further information, please contact:
PRChina
Jane Liu
Tel: (852) 2522 1838
Email: jliu@prchina.com.hk
Henry Chik
Tel: (852) 2522 1368
Email: hchik@prchina.com.hk
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