China Green Agriculture, Inc. reported a decline in net sales for the three months ended September 30, 2024, totaling $17.4 million, a decrease of 22.5% from $22.4 million in the same period of 2023. This decline was attributed to reduced sales in its fertilizer segments, particularly Gufeng, which saw a 28.6% drop in sales. Jinong, however, experienced a 52.6% increase in sales volume, selling 12,262 metric tons of fertilizer, up from 8,036 metric tons in the prior year.

The company's cost of goods sold decreased to $13.4 million, down 24.6% from $17.7 million in 2023, leading to a gross profit of $4.0 million, a 14.3% decline from $4.6 million in the previous year. Operating expenses also fell to $5.8 million from $6.4 million, contributing to a consolidated operating loss of $1.8 million, slightly improved from a loss of $1.8 million in 2023. The net loss for the quarter was $1.8 million, compared to a loss of $1.8 million in the same quarter of the previous year.

The company’s total assets increased to $171.6 million as of September 30, 2024, from $163.2 million at the end of June 2024. Total liabilities rose to $68.6 million, up from $63.1 million, while stockholders’ equity increased to $103.0 million from $100.1 million. Cash and cash equivalents decreased to $51.5 million from $58.8 million, reflecting a net cash used in operating activities of $2.6 million, significantly higher than the $0.6 million used in the same period last year.

Strategically, China Green Agriculture has been active in expanding its operations. The company established Antaeus Tech Inc. in March 2023 to engage in Bitcoin mining and entered into a Stock Purchase Agreement for the acquisition of Lonestar Dream, Inc. in December 2023. The company also reported a foreign currency translation gain of $4.7 million, a significant improvement from a loss of $0.8 million in the previous year, contributing to a comprehensive income of $2.9 million, compared to a loss of $2.6 million in 2023.

Overall, while the company faced challenges in revenue generation, particularly in its fertilizer segments, it has made strategic moves to diversify its operations and improve its financial position.