TORONTO, ONTARIO--(Marketwired - May 28, 2013) - China Green Star Agricultural Corporation (TSX VENTURE:GRE) ("Green Star" or the "Corporation") today announced its financial results for the three month period ending March 31, 2013.

2012 Key Financial Metrics

In thousands except
share data and EPS
Q1 2013 Q1 2012 Change
Key Operation Results
Total revenue $ 10,560 $ 8,975 17.66 %
Gross profit $ 4,508 $ 3,864 16.67 %
EBITDA[1] $ 4,490 $ 3,572 25.70 %
Net profit before income tax $ 4,082 $ 3,381 20.73 %
Profit for the period $ 3,032 $ 2,509 20.84 %
EPS - basic $ 0.20 $ 0.17 17.65 %
EPS - diluted[2] $ 0.10 $ 0.08 25.00 %
Mar. 31,
Dec. 31,
Key Balance Sheet Highlights Unaudited Audited
Cash and cash equivalents $ 8,970 $ 7,836 14.47 %
Total assets $ 50,877 $ 46,614 9.15 %
Total Liabilities $ 6,598 $ 6,307 4.61 %
Shareholders' Equity $ 44,279 $ 40,308 9.85 %
Weighted average number of shares outstanding (basic, in thousands) 15,070 15,070 0.00 %
Working capital per share, diluted $ 0.74 $ 0.62 19.35 %
Shareholders Equity per share, diluted $ 1.42 $ 1.29 10.08 %
Working capital in thousands $ 23,000 $ 19,257 19.44 %
(1) Earnings before interest, taxes, depreciation and amortization (EBITDA) is often used as a measure of financial performance. However, EBITDA is a not a term that has specific meaning in accordance with IFRS, and may be calculated differently by other companies. EBITDA excludes cost associated with the reverse take over transaction completed on May 31, 2011 (the "RTO").
(2) Includes the effect of the 16,069,892 special warrants granted on completion of the RTO. Each special warrant is convertible into one common share for no additional consideration.

"Despite challenging economic conditions in both the domestic Chinese market, and internationally, the Corporation managed to substantially grow both its top line revenues and net profit," said Mr. Guan Lianyun, Chairman and CEO of Green Star. "One of the main drivers of Green Star's improved operating results for the three months ended March 31, 2013 was the increased production of bamboo shoots from the Corporation's new bamboo mountain leases. With the additional land leases taking effect the beginning of 2013, Green Star's land base has increased by more than 60% to approximately 1,500 acres. We believe that the Corporation is well positioned to continue on this established path of growing revenues and profits, and enhancing shareholder value."

Q1 2013 Financial Highlights

  • Revenue of $10.5 million, an increase of 17.66% over $8.9 million in Q1 2012
  • EBITDA of $4.5 million, an increase of 25.70% over $3.5 million in Q1 2012
  • Net profit of $4.0 million, an increase of 20.73% over $3.3 million in Q1 2012
  • Earnings per share (fully diluted) of $0.10, an increase of 25.00% over $0.08 in Q1 2012
  • Shareholders' Equity $44.2 million, an increase of 9.85% over $40.3 million in Q1 2012

Green Star invites readers to review Management's Discussion & Analysis, as filed on SEDAR, for a more complete review and analysis of the Corporation's financial information and performance.

About China Green Star Agricultural Corporation

Green Star operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the processing of canned food, which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.

Green Star has been operating for over 19 years. Through the application of science and technology in production, quality control and assurance, and business operations and management, Green Star has focused on maintaining product and reputational excellence with a high standard of food quality. Key assets include a well established management team, modern production facilities, and a close partnership with local farmers.

China Green Star Agricultural Corp. is listed on the TSX Venture Exchange under the symbol "GRE".

Caution Regarding Forward-Looking Information:

Certain statements in this press release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

When used in this press release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes management's belief that the Corporation will continue to grow its revenues and profits and enhance shareholder value. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2013, available on, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law. "

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information:

China Green Star Agricultural Corporation
Robert Macdonald
(416) 849 3858

Investor Cubed Inc.
(647) 258-3311, (888) 258-3323