10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2012

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

       For the transition period from ____________ to ____________

Commission File Number 001-34260

CHINA GREEN AGRICULTURE, INC.

(Exact name of registrant as specified in its charter)

Nevada	36-3526027
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

3 ^rd Floor, Borough A, Block A, No. 181,

South Taibai Road, Xi’an, Shaanxi Province,

People’s Republic of China  710065

(Address of principal executive offices) (Zip Code)

+86-29-88266368

(Issuer's telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer x
Non-accelerated filer o ( Do not check if a smaller reporting company )	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o   No x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  27,938,839 shares of common stock, $.001 par value, as of November 5, 2012.

Explanatory Note

China Green Agriculture, Inc. (the “Company”) is filing this quarterly report on Form 10-Q for its fiscal quarter ended September 30, 2012 on an extended time line pursuant to the Hurricane Sandy Exemptive Orders (the “Relief Orders”) issued by the Securities and Exchange Commission (the “Commission”) on November 14, 2012 (Release No. 68224) and the prior verbal communications with the Commission on the same subject. The Relief Orders stated that registrants who were directly or indirectly affected by Hurricane Sandy who were required to make certain filings with the Commission between October 29, 2012 and November 20, 2012, would be allowed to make such filings on or before November 21, 2012, and still remain in compliance with federal securities regulations. The storm and subsequent flooding commenced on October 29, 2012 was unprecedented in the affected area which have displaced the Company’s service providers including its legal counsel and Edgar filing agent located in New York City, severely disrupted their communications, transportations, power supply which resulted in delay in the completion of the review of the report and delay in the completion of the Edgar proof and XBRL tagging required for this filing. As a result, the Company, (i) was unable, in good faith, to file the report on a timely basis; (ii) availed itself of the filing extension granted under the Relief Orders; and (iii) files this report on November 19, 2012.

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION	Page
Item 1.	Financial Statements.
		F-1
	Consolidated Condensed Balance Sheets	F-1
	As of September 30, 2012 and June 30, 2012 (Unaudited)
	Consolidated Condensed Statements of Income and Comprehensive Income	F-2
	For the Three Months Ended September 30, 2012 and 2011 (Unaudited)
	Consolidated Condensed Statements of Cash Flows	F-3
	For the Three Months Ended September 30, 2012 and 2011 (Unaudited)
	Notes to Consolidated Condensed Financial Statements	F-4
	As of September 30, 2012 (Unaudited)
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	13
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 5.	Other Information	14
Item 6.	Exhibits	14
Signatures		15
Exhibits/Certifications		16

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(UNAUDITED)

	September 30, 2012		June 30, 2012
ASSETS
Current Assets
Cash and cash equivalents	$	74,197,824	$	71,978,630
Accounts receivable, net		67,699,174		62,001,158
Inventories		28,659,714		28,602,684
Other current assets		756,788		299,526
Advances to suppliers		14,985,197		12,207,325
Total Current Assets		186,298,697		175,089,323
Plant, Property and Equipment, Net		81,532,337		80,065,161
Construction In Progress		171,704		-
Other Assets - Non Current		158,912		182,119
Intangible Assets, Net		27,173,943		27,618,641
Goodwill		5,066,195		5,075,809
Total Assets	$	300,401,788	$	288,031,053
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	5,594,344	$	6,881,748
Unearned revenue		2,452,464		2,625,014
Accrued expenses and other payables		5,349,989		4,290,249
Amount due to related parties		1,477,357		370,719
Taxes payable		19,540,884		17,675,389
Short term loans		14,466,150		13,931,280
Total Current Liabilities		48,881,188		45,774,399
Commitment and Contingencies
Stockholders' Equity
Preferred Stock, $.001 par value,  20,000,000 shares authorized, zero shares issued and outstanding		-		-
Common stock, $.001 par value, 115,197,165 shares authorized,  27,490,762 and 27,455,722 shares issued and outstanding as of September 30, 2012 and June 30, 2012, respectively		27,491		27,456
Additional paid-in capital		103,042,573		102,175,709
Statutory reserve		16,183,362		15,130,158
Retained earnings		116,951,020		109,142,824
Accumulated other comprehensive income		15,316,154		15,780,507
Total Stockholders' Equity		251,520,600		242,256,654
Total Liabilities and Stockholders' Equity	$	300,401,788	$	288,031,053

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

F-1

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended September 30,
	2012			2011
Sales
Jinong	$	27,850,976		$	22,242,251
Gufeng		10,936,971			29,613,091
Jintai		-			1,198,887
Yuxing		724,793			48,365
Net sales		39,512,740			53,102,594
Cost of goods sold
Jinong		12,839,498			8,110,130
Gufeng		9,189,762			25,269,670
Jintai		-			748,830
Yuxing		550,107			65,232
Cost of goods sold		22,579,367			34,193,862
Gross profit		16,933,373			18,908,732
Operating expenses
Selling expenses		3,034,087			2,490,474
General and administrative expenses		2,875,942			3,138,695
Total operating expenses		5,910,029			5,629,169
Income from operations		11,023,344			13,279,563
Other income (expense)
Other income (expense)		(600	)		(25,424	)
Interest income		74,432			97,487
Interest expense, net		(385,792	)		(156,479	)
Total other income (expense)		(311,960	)		(84,416	)
Income before income taxes		10,711,384			13,195,147
Provision for income taxes		1,849,984			2,463,511
Net income		8,861,400			10,731,636
Other comprehensive income
Foreign currency translation gain (loss)		(464,353	)		1,904,146
Comprehensive income	$	8,397,047		$	12,635,782
Basic weighted average shares outstanding		27,462,578			26,857,338
Basic net earnings per share	$	0.32		$	0.40
Diluted weighted average shares outstanding		27,462,578			26,857,338
Diluted net earnings per share		0.32			0.40

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

F-2

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended September 30,
	2012			2011
Cash flows from operating activities
Net income	$	8,861,400		$	10,731,636
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Issuance of common stock and stock options for compensation		866,899			557,192
Depreciation		2,802,291			1,132,399
Amortization		392,390			331,502
Changes in operating assets, net of effects from acquisitions
Accounts receivable		(5,815,442	)		(6,387,104	)
Other current assets		(457,831	)		(235,450	)
Inventories		(111,202	)		(12,195,943	)
Advances to suppliers		(2,800,991	)		(1,213,600	)
Other assets		22,862			(98,716	)
Change in operating liabilities, net of effects from acquisitions
Accounts payable		(1,275,065	)		1,316,676
Unearned revenue		(167,578	)		97,505
Tax payables		1,898,972			2,461,823
Accrued expenses and other payables		1,063,143			1,493,111
Amount due to related parties		1,106,700			-
Net cash provided by (used in) operating activities		6,386,548			(2,008,969	)
Cash flows from investing activities
Purchase of plant, property, and equipment		(4,421,106	)		(828,035	)
Increase in construction in progress		(171,704	)		(91,631	)
Net cash used in investing activities		(4,592,810	)		(919,666	)
Cash flows from financing activities
Repayment of loan		-			-
Proceeds from loans		561,255			8,010,765
Net cash provided by financing activities		561,255			8,010,765
Effect of exchange rate change on cash and cash equivalents		(135,799	)		645,368
Net increase in cash and cash equivalents		2,219,194			5,727,498
Cash and cash equivalents, beginning balance		71,978,630			65,606,413
Cash and cash equivalents, ending balance	$	74,197,824		$	71,333,911
Supplement disclosure of cash flow information
Interest expense paid	$	385,792		$	148,101
Income taxes paid	$	-		$	7,664

The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.

F-3

CHINA GREEN AGRICULTURE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

China Green Agriculture, Inc. (the “Company”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products.

The Company’s corporate structure as of September 30, 2012 is set forth in the diagram below:

NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Jintai, Yuxing, Gufeng and Tianjuyuan. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Recent accounting pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, which was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This guidance is effective for the Company beginning on January 1, 2012. The adoption of ASU 2011-04 did not significantly impact the Company’s consolidated financial statements.

F-4

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. The new guidance removes the presentation options in Accounting Standards Codification (ASC) 220, Comprehensive Income, and requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The ASU does not change the items that must be reported in other comprehensive income. In December 2011, the FASB issued ASU 2011-12 which defers the requirement in ASU 2011-05 that companies present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. ASU 2011-05 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2011, with early adoption permitted. The adoption of ASU 2011-05, as amended by ASU 2011-12, did not significantly impact the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The revised standard is effective for the Company for its annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 is not expected to significantly impact the Company’s consolidated financial statements. In November 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to adopt ASU 2011-11 for reporting periods beginning on or after January 1, 2013. The adoption of ASU 2011-11 is not expected to significantly impact the Company’s consolidated financial statements.

On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) - Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on the Company’s financial statements.

NOTE 3 - EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	For the Three Months Ended September 30,
	2012		2011
Net Income for Basic Earnings Per Share	$	8,861,400	$	10,731,636
Basic Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Basic	$	0.32	$	0.40
Net Income for Diluted Earnings Per Share		8,861,400		10,731,636
Diluted Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Diluted	$	0.32	$	0.40

NOTE 4 - INVENTORIES

Inventories consist of the following:

	September 30,		June 30,
	2012		2012
Raw materials	$	7,221,229	$	6,009,686
Supplies and packing materials		610,839		565,559
Work in progress		304,235		127,140
Finished goods		20,523,411		21,900,299
Total	$	28,659,714	$	28,602,684

F-5

NOTE 5 - OTHER CURRENT ASSETS

Other current assets consisted of the following:

	September 30,		June 30,
	2012		2012
Advancement	$	756,788	$	299,526
Prepaid insurance		-		-
Total	$	756,788	$	299,526

Advancement represents advances made to non-related parties and employees. The amounts were unsecured, interest free, and due on demand. Prepaid insurance is related to the underwriting of the Company’s directors and officers insurance policy.

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

	September 30,			June 30,
	2012			2012
Building and improvements	$	41,804,139		$	36,174,009
Auto		852,333			835,412
Machinery and equipment		61,865,034			63,280,923
Agriculture assets		3,157,294			3,163,286
Total property, plant and equipment		107,678,800			103,453,630
Less: accumulated depreciation		(26,146,463	)		(23,388,469	)
Total	$	81,532,337		$	80,065,161

Depreciation expenses for the three months ended September 30, 2012 and 2011 were $2,802,291 and $1,132,399, respectively.

Agriculture assets consist of reproductive trees that are expected to be commercially productive for a period of eight years.

NOTE 7 - CONSTRUCTION IN PROGRESS

As of September 30, 2012 and June 30, 2012, construction in progress representing construction for Yuxing’s supporting facilities amounted to $171,704 and $0, respectively.

NOTE 8 - INTANGIBLE ASSETS

Intangible assets consist of the following:

	September 30,		June 30,
	2012		2012
Land use rights, net	$	11,858,140	$	11,014,591
Technology patent, net		909,075		1,902,131
Customer relationships, net		7,980,824		8,253,368
Non-compete agreement, net		114,781		125,453
Trademarks		6,311,123		6,323,098
Total	$	27,173,943	$	27,618,641

LAND USE RIGHT

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB 73,184,895 (or $11,570,532). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

F-6

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $165,365). The intangible asset is being amortized over the grant period of 50 years.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yanling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB 7,285,099 (or $1,151,774). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consist of the following:

	September 30,			June 30,
	2012			2012
Land use rights	$	12,887,671		$	12,912,125
Less: accumulated amortization		(1,029,531	)		(1,897,534	)
Total land use rights, net	$	11,858,140		$	11,014,591

TECHNOLOGY PATENT

On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $928,848) and is being amortized over the patent period of 10 years using the straight line method.

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired technology patent was estimated to be RMB 9,200,000 (or $1,454,520) and is amortized over the remaining useful life of six years using the straight line method.

The technology know-how consisted of the following:

	September 30,			June 30,
	2012			2012
Technology know-how	$	2,383,368		$	2,387,891
Less: accumulated amortization		(1,474,293	)		(485,760	)
Total technology know-how, net	$	909,075		$	1,902,131

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired customer relationships was estimated to be RMB 65,000,000 (or $10,276,500) and is amortized over the remaining useful life of ten years.

	September 30,			June 30,
	2012			2012
Customer relationships	$	10,276,500		$	10,296,000
Less: accumulated amortization		(2,295,676	)		(2,042,632	)
Total customer relationships, net	$	7,980,824		$	8,253,368

NON-COMPETE AGREEMENT

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired non-compete agreement was estimated to be RMB 1,320,000 (or $208,692) and is amortized over the remaining useful life of five years using the straight line method.  

	September 30,			June 30,
	2012			2012
Non-compete agreement	$	208,692		$	209,088
Less: accumulated amortization		(93,911	)		(83,635	)
Total non-compete agreement, net	$	114,781		$	125,453

F-7

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be $6,311,123, an equivalent amount in U.S. dollars to an amount of RMB 40,700,000, and is subject to an annual impairment test.

Total amortization expenses of intangible assets for the three months ended September 30, 2012 and 2011 amounted to $392,390 and $331,502, respectively.

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five (5) years after September 30, 2012, are as follows:

Year Ends	Expense ($)
September 30, 2013		1,662,447
September 30, 2014		1,662,447
September 30, 2015		1,662,447
September 30, 2016		1,620,708
September 30, 2017		1,378,288

NOTE 9 - ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consist of the following:

	September 30,		June 30,
	2012		2012
Payroll payable	$	125,558	$	127,149
Welfare payable		167,832		168,150
Accrued expenses		3,213,543		2,827,028
Other payables		1,720,377		1,045,010
Other levy payable		122,679		122,912
Total	$	5,349,989	$	4,290,249

NOTE 10 - AMOUNT DUE TO RELATED PARTIES

As of September 30, 2012 and June 30, 2012, the amount due to related parties was $1,477,357 and $370,719, respectively.  These amounts represent unsecured, non-interest bearing loans that are due on demand.  These loans are not subject to written agreements.

On August 10, 2010, Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd (“Yuxing”) which is a subsidiary of the Company, entered into an agreement with Kingtone Wirelessinfo Solution Holding Ltd (“Kingtone”) which was responsible for developing certain electronic control systems for Yuxing. The total contracted value of this agreement, including value-added taxes and other taxes, is RMB3,030,000, or approximately $479,043.

In July 2007, Jinong signed an office lease with Xi’an Techteam Science and Technology Industry (Group) Co., Ltd. (the “Group Company”), which is controlled by Mr. Tao Li, Green Nevada’s Chairman, President and CEO at a monthly rent of $954 (RMB 6,460) per month. On September 30, 2010, Jinong cancelled this lease agreement with the Group Company without penalty and signed a two year lease effective as of July 1, 2010 directly with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”), who owns the property. Kingtone Information is a Variable Interest Entity (“VIE”) controlled by Kingtone Wirelessinfo Solution Holding Ltd. (“Kingtone Wirelessinfo”), whose Chairman and majority shareholder is Mr. Tao Li. According to the new lease agreement, the monthly rent is $1,596 (RMB10,800).

On June 29, 2012, Jinong signed an office lease with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”). Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a two-year term effective as of July 1, 2012 with monthly rent of RMB 24,480 (approximately $3,870).

F-8

During the quarter ended September 30, 2012, the Company entered into a related party transaction to borrow $1,106,700 (RMB 7,000,000) from Xi’an Techteam Science & Technology Industry (Group) Co. Ltd. (“Xi’an”). The Company’s Chairman Tao Li, also serves as Chairman of Xi’an, and is a controlling shareholder. The amount borrowed is non interest bearing and does not contain a specific maturity date.

NOTE 11 - LOAN PAYABLES

The short-term loans payable consist of eight loans which mature on dates ranging from October 17, 2011 through September 24, 2013 with interest rates ranging from 6.30% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loans No. 4, 5, and 6 are collateralized by the inventory of Gufeng. In addition, the loans No. 7, 8 and 9 are guaranteed by Jinong’s credit.

No.	Payee	Loan period per agreement	Interest Rate			September 30,2012
1	Agriculture Bank of China-Beijing Branch	January 11, 2012 - January 10, 2013		6.89	%	$	1,328,040
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 - March 22, 2013		8.20	%		1,264,800
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.20	%		1,596,810
4	Bank of Tianjin	August 7,2012-May 15, 2013		7.20	%		1,106,700
5	Bank of Tianjin	August 7,2012-June 19, 2013		7.20	%		1,106,700
6	Bank of Tianjin	August 7, 2012-June 3, 2013		7.20	%		948,600
7	China Merchant Bank	August 30, 2012-August 29, 2013		6.30	%		3,952,500
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,581,000
9	Industrial and Commercial Bank of China	September 25, 2012-September 24, 2013		8.00	%		1,581,000
		Total				$	14,466,150

The bank loan from Industrial and Commercial Bank of China had been renewed after expiration with the same loan amount and 8.0% interest rate. The renewed loan period is from September 25, 2012 to September 24, 2013.

F-9

As of June 30, 2012, the short-term loans payable consist of eight loans which mature on dates ranging from July 23, 2012 through April 22, 2013 interest rates ranging from 6.89% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loan No. 4 is collateralized by the inventory of Gufeng. In addition, the loans No.5, 6, 7 and 8 are guaranteed by Jinong’s credit.

			Interest			June 30,
No.	Payee	Loan period per agreement	Rate			2012
1	Agriculture Bank of China-Beijing Branch	JaJanuary 11, 2012 - January 10, 2013		6.89	%	$	1,330,560
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 -  March 22, 2013		8.2	%		1,267,200
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.2	%		1,599,840
4	Bank of Tianjin	September 9, 2011 - July 23, 2012		7.54	%		1,813,680
5	Minsheng Bank	September 8, 2011 - September 8, 2012		8.2	%		1,814,372
6	Minsheng Bank	September 19, 2011 - September 19, 2012		8.2	%		561,628
7	China Merchant Bank	July 25, 2011 - July 26, 2012		8.53	%		3,960,000
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,584,000
		Total				$	13,931,280

The interest expenses from short-term loans were $385,792 and $156,479 for the three months ended September 30, 2012 and 2011, respectively.

F-10

NOTE 12 - TAXES PAYABLE

Enterprise Income Tax

Effective January 1, 2008, the new Enterprise Income Tax (“EIT”) law of the PRC replaced the existing tax laws for Domestic Enterprises (“DES”) and Foreign Invested Enterprises (“FIEs”). The new EIT rate of 25% replaced the 33% rate that was applicable to both DES and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007. Jinong’s provision for income taxes for the three months ended September 30, 2012 and 2011 was $1,754,200 and $2,463,511, respectively. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $95,784 and $622,653 for the three months ended September 30, 2012 and 2011, respectively. Jintai and Yuxing have been exempt from paying income tax since its formation as it produces products which fall into the tax exemption list set out in the EIT. This exemption is expected to last as long as the applicable provisions of the EIT do not change.

Value-Added Tax

All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products ”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. The VAT exemption applies to all agricultural products sold by Jintai and Yuxing, and all but a nominal amount of agricultural products sold by Jinong.

Income Taxes and Related Payables

Taxes payable consist of the following:

	September 30,		June 30,
	2012		2012
VAT provision (credit)	$	102,633	$	68,180
Income tax payable		19,092,083		17,274,817
Other levies		346,168		332,392
Total	$	19,540,884	$	17,675,389

Income Taxes in the Consolidated Statements of Income and Comprehensive Income

The provision for income taxes consists of the following:

	September 30,		June 30,
	2012		2012
Current tax - foreign	$	1,849,984	$	10,801,313
Deferred tax		-		-
Total	$	1,849,984	$	10,801,313

Tax Rate Reconciliation

Our effective tax rates were approximately 17.3%and 18.7% for the three months ended September 30, 2012 and 2011, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the three months ended September 30, 2012, 2011 for the following reasons:

F-11

	China					United States
September 30, 2012	15% - 25%					0.34					Total
Pretax income (loss)	$	12,050,347				$	(1,338,963	)			$	10,711,384
Expected income tax expense (benefit)		3,012,587		25.0	%		(455,247	)	34.0	%		2,557,340
High-tech income benefits on Jinong		(1,168,747	)	(9.7	)%		-		-			(1,168,747	)
Losses from subsidiaries in which no benefit is recognized		6,144		0.1	%		-		-			6,144
Change in valuation allowance on deferred tax asset from US tax benefit		-					455,247		(34.0	)%		455,247
Actual tax expense	$	1,849,984		15.4	%	$	-		-	%	$	1,849,984		17.3	%

September 30, 2011	China					United States
	15% - 25%					0.34					Total
Pretax income (loss)	$	14,681,072				$	(1,485,925	)			$	13,195,147
Expected income tax expense (benefit)		3,670,268		25	%		(505,215	)	34.0	%		3,165,053
High-tech income benefits on Jinong		(766,515	)	(5.2	)%		-		-			(766,515	)
Losses from subsidiaries in which no benefit is recognized		(440,242	)	(3.0	)%		-		-			(440,242	)
Change in valuation allowance on deferred tax asset from US tax benefit		-					505,215		(34.0	)%		505,215
Actual tax expense	$	2,463,511		16.8	%	$	-		- %		$	2,463,511		18.7	%

NOTE 13 - STOCKHOLDERS’ EQUITY

Common Stock

On July 2, 1010, the Company issued a total of 2,275,931 shares of common stock to Gufeng’s previous shareholders or their designees. Of the shares being issued in the acquisition, 40% have been held in escrow pending satisfaction of certain conditions such as make good targets set for Gufeng for the fiscal year ended June 30, 2011.

On March 31, 2011, the Company granted a total of 96,000 shares of restricted common stock of the Company to certain directors and executive officers under its 2009 Equity Incentive Plan. Pursuant to the terms of the grant, 8,000 shares of restricted common stock were vested on April 30, 2011, 44,000 shares vested on June 2, 2011, and 44,000 shares vested on December 31,2011. These shares were issued in September 2011.

On March 8, 2012, the Company issued 63,158 shares of common stock in a private placement to Mr. Tao Li, the Company’s Chairman and Chief Executive Officer, at a purchase price of $4.75 per share, for an aggregate purchase price of $300,001 pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board of Directors of the Company.

On March 31, 2012, the Company issued 5,704 shares of Common Stock valued at $24,000 of consulting services.

On June 14, 2012, the Company granted a total of 1,000,000 shares of restricted common stock of the Company to certain directors, executive officers and key employees under its 2009 Equity Incentive Plan. Pursuant to the terms of the grant, the stock grants vest in three installments on June 30, 2012, September 30, 2012 and December 31, 2012. The Company has issued 445,000 shares of common stock related to these grants with 555,000 yet to be issued.

On September 12, 2012, the Company issued 35,041 shares of Common Stock valued at $130,000 of consulting services.

Preferred Stock

Under the Company’s articles of incorporation, the board of directors has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

As of September 30, 2012, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding.

F-12

NOTE 14 - STOCK OPTIONS

On March 31, 2011, the Company’s Compensation Committee approved the cancellation of all those outstanding unvested options granted to officers and directors and former officers on March 1, 2010 and February 7, 2010 under the 2009 Equity Incentive Plan.

There were no issuances of stock options during the three months ended September 30, 2012 and 2011.

Options outstanding as of September 30, 2012 and related weighted average price and intrinsic value are as follows:

			Weighted
			Average
	Number		Exercise		Aggregate
	of Shares		Price		Intrinsic Value
Outstanding, June 30, 2012		115,099	$	14.66	$	-
Granted		-
Forfeited/Cancelled		-
Exercised		-
Outstanding, September 30, 2012		115,099	$	14.66	$	-

NOTE 15 -CONCENTRATIONS AND LITIGIATION

Market Concentration

All of the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things, the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

There were two vendors from which the Company purchased more than 10% of its raw materials for the fertilizer products for the three months ended September 30, 2012.

There was no vendor from which the Company purchased more than 10% of its raw materials for the fertilizer products for the three months ended September 30, 2011.

There was no customer that accounted over 10% of the total sales of fertilizer products as of three months ended September 30, 2012 and 2011.

Litigation

On October 15, 2010, a class action lawsuit was filed against the Company and certain of its current and former officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") on behalf of purchasers of the Company’s common stock between November 12, 2009 and September 1, 2010.  On April 27, 2011, the court appointed the lead plaintiff and lead plaintiff’s counsel. On June 13, 2011, lead plaintiff filed an amended complaint, which adds several additional defendants and expands the class period to include purchasers who purchased our common stock between May 12, 2009 and January 4, 2011. The amended complaint alleges that the Company and certain of its current and former officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended, by making material misstatements and omissions in the Company’s financial statements, securities offering documents, and related disclosures during the class period..  The plaintiffs claim that such allegedly misleading financial statements inflated the price of the Company’s common stock and seek monetary damages in an amount to be determined at trial. Defendants moved to dismiss the amended complaint on October 7, 2011. Defendant’s motions were argued on October 2, 2012. On November 2, 2012, the Nevada Federal Court issued a decision dismissing the claims for violation of sections 11, 12(a)(2) and 15 of the Securities Act of 1933 as to all defendants and dismissing certain individual defendants from the complaint and allowing the claims for violations of section 10(b) and 20(a) of the Securities Exchange Act of 1934 to continue with respect to the Company and certain of the individual defendants. 

F-13

NOTE 16 - SEGMENT REPORTING

The Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Jintai (agricultural products production) and Yuxing (agricultural products production). Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. Jintai is in process of combining with Yuxing.

The following tables present a summary of our businesses and operating segments results. 

F-14

	Three months ended September 30,
	2012			2011
Revenues from unaffiliated customers:
Jinong	$	27,850,976		$	22,242,251
Gufeng		10,936,971			29,613,091
Jintai		-			1,198,887
Yuxing		724,793			48,365
Consolidated	$	39,512,740		$	53,102,594
Operating income :
Jinong	$	11,611,611		$	12,187,448
Gufeng		688,639			2,608,589
Jintai		-			10,459
Yuxing		62,129			(40,730	)
Reconciling item (1)		-			(705,036	)
Reconciling item (2)		(602,138	)		(781,167	)
Reconciling item (2)—stock compensation		(736,897	)		-
Consolidated	$	11,023,344		$	13,279,563
Net income:
Jinong	$	9,937,587		$	10,429,494
Gufeng		207,670			1,817,896
Jintai		10			10,501
Yuxing		55,092			(40,331	)
Reconciling item (1)		75			278
Reconciling item (2)		(1,339,034	)		(1,486,202	)
Consolidated	$	8,861,400		$	10,731,636
Depreciation and Amortization:
Jinong	$	2,035,853		$	575,478
Gufeng		845,363			789,592
Jintai		-			283
Yuxing		313,465			98,548
Consolidated	$	3,194,681		$	1,463,901
Interest expense:
Jinong	$	-		$	-
Gufeng		385,792			156,479
Consolidated	$	385,792		$	156,479
Capital Expenditure:
Jinong	$	4,343,939		$	765,309
Gufeng		46,153			24,341
Jintai		-			-
Yuxing		202,718			130,016
Consolidated	$	4,592,810		$	919,666
		As of			As of
		September 30, 2012			June 30, 2012
Identifiable assets:
Jinong	$	164,958,221		$	221,575,406
Gufeng		93,171,801			57,657,305
Jintai		4,599,779			6,670,058
Yuxing		37,448,008			1,851,745
Reconciling item (1)		227,885			280,445
Reconciling item (2)		(3,906	)		(3,906	)
Consolidated	$	300,401,788		$	288,031,053

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

F-15

NOTE 17 - COMMITMENTS AND CONTINGENCIES

On June 29, 2012, Jinong signed an office lease with Kingtone Information upon the expiration of its existing lease with Kingtone Information. Pursuant to the new lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a two-year term effective as of July 1, 2012 with monthly rent of $3,870 (RMB 24,480).

In January 2008, Jintai signed a ten year land lease with Xi’an Jinong Hi-tech Agriculture Demonstration Zone for a monthly rent of $822 (RMB 5,200).

In February 2004, Tianjuyuan signed a fifty year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of $468 (RMB 2,958) for approximately 47,333 square meters (509,488 square feet) of land in the Ping Gu District of Beijing.

Accordingly, the Company recorded an aggregate of $15,480 and $63,724 as rent expenses for the three months ended September 30, 2012 and 2011, respectively. Rent expenses for the next five years ended September 30, are as follows:

Years ending:
September 30, 2013	61,921
September 30, 2014	61,921
September 30, 2015	15,447
September 30, 2016	15,447
September 30, 2017	15,447

NOTE 18 – SUBSEQUENT EVENTS

On September 26, the Company agreed to issue 151,515 shares of Common Stock at the market price of $3.30 per share to Mr. Tao Li, the Company’s Chairman and Chief Executive Officer in the first offering of the Company’s Employee Stock Purchase Plan (“ESPP”) adopted by the Company’s Board of Directors (the “Board”) on August 9, 2012. Mr. Li had previously advanced the Company $300,000 and has unpaid compensation accrued in the accompanying balance sheet. The 151,515 shares were not issued until after September 30, 2012 and accordingly the due to officer of $300,000 and accrued compensation of $200,000 will be deducted during the quarter ended December 31, 2012.

On September 28, 2012, the Company approved the granting of (i) 200,000 shares of restricted stock to Mr. Ken Ren, the Company’s Chief Financial Officer (the “CFO”), and (ii) 40,000 shares of restricted stock to Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each is an independent director of the Company (the “Stock Grants”). The Stock Grants all vest in three installments on December 31, 2012, March 31, 2013, and June 30, 2013, with 100,000 shares vesting first and 50,000 shares vesting on each of the other two vesting dates to the CFO; and 10,000 shares vesting first and half of the their respective remaining shares vesting on each of the other two vesting dates to the three independent directors. The vest of the restricted shares is conditioned on the individuals being employed by the Company at the time of the vest. These shares will be issued during the quarter ended December 31, 2012 and the expenses associated with the issuance of these shares will be recorded over the vesting period of the shares.

F-16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes to those financial statements appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve significant risks and uncertainties. As a result of many factors, such as the slow-down of the global financial markets and its impact on economic growth in general, the competition in the fertilizer industry and the impact of such competition on pricing, revenues and margins, the weather conditions in the areas where our customers are based, the cost of attracting and retaining highly skilled personnel, the prospects for future acquisitions, and the factors set forth elsewhere in this report, our actual results may differ materially from those anticipated in these forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will in fact occur. You should not place undue reliance on the forward-looking statements contained in this report.

The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by U.S. federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.  Further, the information about our intentions contained in this report is a statement of our intention as of the date of this report and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices and our assumptions as of such date.  We may change our intentions, at any time and without notice, based upon any changes in such factors, in our assumptions or otherwise.

Unless the context indicates otherwise, as used in the following discussion, “Company”, “we,” “us,” and “our,” refer to (i) China Green Agriculture, Inc. (“Green Nevada”), a corporation incorporated in the State of Nevada; (ii) Green Agriculture Holding Corporation (“Green New Jersey”), a wholly-owned subsidiary of Green Nevada incorporated in the State of New Jersey; (iii) Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly-owned subsidiary of Green New Jersey organized under the laws of the PRC; (iv) Xi’an Jintai Agriculture Technology Development Company (“Jintai”), wholly-owned subsidiary of Jinong in the PRC, (v) Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd. (“Yuxing”), a wholly-owned subsidiary of Jinong in the PRC; (vi) Beijing Gufeng Chemical Products Co., Ltd., a wholly-owned subsidiary of Jinong in the PRC (“Gufeng”), and (vii) Beijing Tianjuyuan Fertilizer Co., Ltd., Gufeng’s wholly-owned subsidiary in the PRC (“Tianjuyuan”).

Unless the context otherwise requires, all references to (i) “PRC” and “China” are to the People’s Republic of China; (ii) “U.S. dollar,” “$” and “US$” are to United States dollars; and (iii) “RMB”, “Yuan” and Renminbi are to the currency of the PRC or China.

Overview

We are engaged in the research, development, production and sale of various types of fertilizers and agricultural products in the PRC through our wholly-owned Chinese subsidiaries, Jinong, Yuxing, Gufeng (including Gufeng’s subsidiary Tianjuyuan). Our primary business is fertilizer products, specifically humic-acid based compound fertilizer produced by Jinong and compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer produced by Gufeng. In addition, through Yuxing, we develop and produce agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings. For financial reporting purposes, our operations are organized into four business segments: fertilizer products (Jinong), fertilizer products (Gufeng), agricultural products production (Yuxing) and agricultural products production (Jintai).

Yuxing serves as a research and development base for our fertilizer products. The fertilizer business conducted by Jinong and Gufeng generated approximately 98.2%, and 97.7% of our total revenues for the three months ended September 30, 2012 and 2011, respectively. Jintai had served as a research and development base for our fertilizer products. However, as reported in our previous annual and quarterly reports, we started to relocate Jintai to the facilities of Yuxin due to the deteriorated surrounding environment that caused the death and obsolescence of large amount of Jintai’s flowers and seedlings. As a result, Jintai has not been in operation since March 1, 2012, when the relocation commenced.

Fertilizer Products

As of September 30, 2012, we had developed and produced a total of 446 different fertilizer products in use, of which 129 were developed and produced by Jinong and 317 by Gufeng.

Below is a table that shows the metric tons of fertilizer sold by Jinong and Gufeng and the revenue per ton for the periods indicated:

3

	For the Three Months Ended September 30,
	2012		2011
	(Metric Tons)		(Metric Tons)
JN		17,449		16,846
GF		22,150		64,874
Total		39,599		81,720

	For the Three Months Ended September 30,
	2012		2011
	(Revenue per ton $)		(Revenue per ton $)
JN	$	1,596	$	1,320
GF	$	494	$	456

For the three months ended September 30, 2012, we sold approximately 39,599 metric tons of fertilizer products, as compared to 81,720 metric tons for the three months ended September 30, 2011. For the three months ended September 30, 2012, Jinong sold approximately 17,449 metric tons of fertilizer products, as compared to 16,846 metric tons for the three months ended September 30, 2011. For the three months ended September 30, 2012, Gufeng sold approximately 22,150 metric tons of fertilizer products, as compared to 64,874 metric tons for the three months ended September 30, 2011. Our sales of fertilizer products to the top five provinces accounted for approximately 46.9% of our fertilizer revenue for the three months ended September 30, 2012; Specifically, the provinces and their respective percentage contributed to our fertilizer revenues were, Hebei (16.2 %), Shaanxi (9.0%), Heilongjiang(8.0%), Shandong (7.5%) and Beijing(6.1%).

As of September 30, 2012, we had a total of 966 distributors covering 22 provinces, four autonomous regions and three central government-controlled municipalities in China. Jinong had 779 distributors in China. Jinong’s sales are not dependent on any single distributor or any group of distributors. Its top five distributors accounted for 2.1% of Jinong’s fertilizer revenues for the three months ended September 30, 2012. Gufeng had 187 distributors, including some large state-owned enterprises. Gufeng’s top five distributors accounted for 64.5% of its revenues with no single distributor accounting for more than 10% of our total revenues for the three months ended September 30, 2012.

Agricultural Products

Through Yuxing, we develop, produce and sell high-quality flowers, green vegetables and fruits to local marketplaces and various horticulture and planting companies. We also use certain of Yuxing’s greenhouse facilities to conduct research and development activities for our fertilizer products. The three PRC provinces that accounted for 100% of our agricultural products revenue for the three months ended September 30, 2012 were Shaanxi (97.2%), Ningxia (2.0%) and Gansu (0.8%).

Recent Developments

New Products

During the three months ended September 30, 2012, Jinong launched three new fertilizer products, which are broad-spectrum fertilizer products. Jinong’s new products generated approximately $171,934, or 0.6% of Jinong’s fertilizer revenues for the three months ended September 30, 2012. Jinong also added 21 new distributors for the three months ended September 30, 2012. Jinong’s new distributors accounted for approximately $1,303,863, or 4.7% of Jinong’s fertilizer revenues for the three months ended September 30, 2012. During the quarter ended September 30, 2012, no revenue of Jinong was attributable to the new products distributed by its new distributors. During the three months ended September 30, 2012, Gufeng launched no new fertilizer product. Gufeng added two new distributors during the three months ended September 30, 2012, which accounted for approximately $96,332, or 0.9%, of Gufeng’s fertilizer revenues. During the quarter ended September 30, 2012, no revenue of Gufeng was attributable to the new products distributed by its new distributors.

4

Jintai Relocation

As previously disclosed in our quarterly and annual reports, Jintai is located at the Economic and Technical Development Zone (the "Zone") in the metro area of the city of Xi'an. The Zone has been inhabited by a large and dense population and the periphery of Jintai has bristled with various industrial factories and utility plants in the latest years. The Zone’s concentrated industrial activities and dense population changed the micro bio environment for the growth of Jintai's agricultural products and disturbed Jintai’s normal fertilizer research and development. From June 2011 to March 2012, such changes caused the death and obsolescence of large amount of Jintai's flowers and seedlings. 

As of June 2011, 4,852,236 number of Photinia fraseri were obsolete due to the air and water pollution in the surrounding area of Jintai. The total loss for this obsolescence incurred a write-off of $2,813,993, which equaled to the maintenance cost of Photinia fraseri, and was classified as general and administration expense in Jintai for the fiscal year June 30, 2011. 

In addition, 2,028,508 and 1,532,876 number of Photinia fraseri became obsolete as of September 30 and December 31, 2011 respectively due to the exacerbating air and water pollution in the surrounding area of Jintai. The total loss for the obsolescence incurred write-offs of $288,307 and $957,407 respectively. The losses equaled to the maintenance cost of Photinia fraseri, and were classified as general and administration expense in Jintai for the quarter ended September 30 and December 31, 2011. 

As of March 31, 2012, 54,682 number of butterfly orchids became obsolete due to disease. The total loss for the obsolescence incurred a write-off of $223,907, which equaled to the maintenance cost of butterfly orchids, and was classified as general and administration expense in Jintai as of March 31, 2012.

From March 2012, the Company commenced to relocate Jintai in the facilities of one of the Company’s other subsidiaries, Yuxin, located in Hu County, 18 kilometers southeast of Xi’an city. During the three months ended September 30, 2012, Jintai had no sales revenue due to relocation. The entire relocation process is expected to complete by the end of fiscal year 2013. We expect Jintai will likely remain unprofitable until the relocation gets completed. Further, the Company may consider merging the subsidiaries of Yuxing and Jintai together to reduce operating cost and streamline management at appropriate time in the future.

Results of Operations

Three months ended September 30, 2012 compared to three months ended September 30, 2011.

The following table shows the operating results of the Company on a consolidated basis for the three months ended September 30, 2012 and 2011.

5

CHINA GREEN AGRICULTURE INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

	Three months ended September 30, 2012
	2012			2011			Change			Change%
Sales
Jinong	$	27,850,976		$	22,242,251			5,608,725			25	%
Gufeng		10,936,971			29,613,091			(18,676,120	)		(63	)%
Jintai		-			1,198,887			(1,198,887	)		(100	)%
Yuxing		724,793			48,365			676,428			1399	%
Net sales		39,512,740			53,102,594			(13,589,854	)		(26	)%
Cost of goods sold								-
Jinong		12,839,498			8,110,130			4,729,368			58	%
Gufeng		9,189,762			25,269,670			(16,079,908	)		(64	)%
Jintai		-			748,830			(748,830	)		(100	)%
Yuxing		550,107			65,232			484,875			743	%
Cost of goods sold		22,579,367			34,193,862			(11,614,495	)		(34	)%
Gross profit		16,933,373			18,908,732			(1,975,359	)		(10	)%
Operating expenses								-
Selling expenses		3,034,087			2,490,474			543,613			22	%
General and administrative expenses		2,875,942			3,138,695			(262,753	)		(8	)%
Total operating expenses		5,910,029			5,629,169			280,860			5	%
Income from operations		11,023,344			13,279,563			(2,256,219	)		(17	)%
Other income (expense)								-
Other income (expense)		(600	)		(25,424	)		24,824			(98	)%
Interest income		74,432			97,487			(23,055	)		(24	)%
Interest expense, net		(385,792	)		(156,479	)		(229,313	)		147	%
Total other income (expense)		(311,960	)		(84,416	)		(227,544	)		270	%
Income before income taxes		10,711,384			13,195,147			(2,483,763	)		(19	)%
Provision for income taxes		1,849,984			2,463,511			(613,527	)		(25	)%
Net income		8,861,400			10,731,636			(1,870,236	)		(17	)%
Other comprehensive income								-
Foreign currency translation gain (loss)		(464,353	)		1,904,146			(2,368,499	)		(124	)%
Comprehensive income	$	8,397,047		$	12,635,782			(4,238,735	)		(34	)%
Basic weighted average shares outstanding		27,462,578			26,857,338			605,240			2	%
Basic net earnings per share	$	0.32		$	0.40			(0.08	)		(19	)%
Diluted weighted average shares outstanding		27,462,578			26,857,338			605,240			2	%
Diluted net earnings per share		0.32			0.40			(0.08	)		(19	)%

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Net Sales

Total net sales for the three months ended September 30, 2012 were $ 39,512,740, a decrease of $13,589,854, or 25.6%, from $53,102,594 for the three months ended September 30, 2011. This decrease was largely due to the decrease in Gufeng’s net sales.

For the three months ended September 30, 2012, Jinong’s net sales increased $5,608,725, or 25.2%, to $27,850,976 from $22,242,251 for the three months ended September 30, 2011. This increase was mainly attributable to the greater sales of humic acid fertilizer products including our liquid and powder fertilizers during this period as a result of our increased distributors and the aggressive marketing strategy.

For the three months ended September 30, 2012, net sales at Gufeng were $10,936,971, a decrease of $18,676,120, or 63.1%, from $29,613,091 for the three months ended September 30, 2011. The fiscal quarter ended September 30, 2012 fell in the “export window” in which no special tariff tax applied, however, due to the lower demand on Nitrogen-Phosphorous elemented compound fertilizer by importing countries which is arising from the backlog of their imported compound fertilizers in previous quarters, which also led to lower-than-before profit margin over the export contracts, Gufeng had no export contract in the quarter ended September 30, 2012. Despite of that, Gufeng has been expanding and penetrating the domestic market particularly since the fiscal quarter ended March 31, 2012, during which period no revenue was generated from fertilizer exportation either due to special tariff tax levied by China authority or due to weak demand by importing countries. Net domestic sales at Gufeng for the three months ended September 30, 2012 was $10,936,971, an increase of $1,759,028, or 19.2%, from $9,177,943 for the same period in 2011.

Jintai’s net sales decreased by $1,198,887, or 100.0%, to zero for the three months ended September 30, 2012 from $1,198,887 for the same period in 2011. The decrease was attributable to Jintai’s relocation, which commenced on March 1, 2012 and is still on going. Therefore, Jintai did not generate any sales revenue since March 1, 2012.

For the three months ended September 30, 2012, Yuxing’s net sales were $724,793, an increase of $676,428, from $48, 365 during the three months ended September 30, 2011. The increase was mainly attributable both to the strong sales of Yuxing’s top-grade flowers and the proxy sales of certain inventory from Jintai.

Cost of Goods Sold

Total cost of goods sold for the three months ended September 30, 2012 was $22,579,367, a decrease of $11,614,495, or 34.0%, from $34,193,862 for the three months ended September 30, 2011. This decrease was proportional to the decrease in sales, which was mainly due to Gufeng’s decreased exported sales for the three months ended September 30, 2012.

Cost of goods sold by Jinong for the three months ended September 30, 2012 was $12,839,498, an increase of $4,729,368, or 58.3%, from $8,110,130 for the same period in 2011. The increase was primarily attributable to (i) the 110% increase in the cost of raw materials and (ii) 25.2% increases in sales of fertilizer products.

Cost of goods sold by Gufeng for the three months ended September 30, 2012 was $9,189,762, a decrease of $16,079,908, or 63.6%, from $25,269,670 for the same period in 2011. The decrease was proportional to Gufeng’s sales for the three months ended September 30, 2012.

Cost of goods sold by Jintai for the three months ended September 30, 2012 was zero, comparing to $748,830 for fiscal year 2011, because Jintai’s had no operation during the past quarter as a result of ongoing relocation.

For three months ended September 30, 2012, cost of goods sold by Yuxing was $550,107, an increase of $484,875, or 743.3%, from $65,232 for the three months ended September 30, 2011. The increase was proportional to Yuxing’s sales for the three months ended September 30, 2012.

Gross Profit

Total gross profit for the three months ended September 30, 2012 decreased by $1,975,359, or 10.4%, to $16,933,373, as compared to $18,908,732 for the three months ended September 30, 2011. Gross profit margin was approximately 42.9% and 35.6% for the three months ended September 30, 2012 and 2011, respectively.

Gross profit generated by Jinong increased by $879,357, or 6.2%, to $15,011,478 for the three months ended September 30, 2012 from $14,132,121 for the three months ended September 30, 2011. Gross profit margin from Jinong’s sales was approximately 53.9% and 63.5% for the three months ended September 30, 2012 and 2011, respectively.

For the three months ended September 30, 2012, gross profit generated by Gufeng was $1,747,209, a decrease of $2,596,212, or 59.8%, from $4,343,421 for the three months ended September 30, 2011. Gross profit margin from Gufeng’s sales was approximately 16.0% and 14.7% for the three months ended September 30, 2012 and 2011, respectively.

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Gross profit from Jintai was zero for the three months ended September 30, 2012 due to its relocation since March 1, 2012, as compared to $450,057 for the three months ended September 30, 2011. Gross profit margin from Jintai’s sales was approximately 37.5% for the three months ended September 30, 2011.

For the three months ended September 30, 2012, gross profit generated by Yuxing was $174,686, an increase of $191,553, from negative $16,867 with a gross profit margin of approximately 24.1% for the three months ended September 30, 2012.

Selling Expenses

Our selling expenses consisted primarily of salaries of sales personnel, advertising and promotion expenses, freight-out costs and related compensation. Selling expenses were $3,034,087, or 7.7%, of net sales for the three months ended September 30, 2012, as compared to $2,490,474, or 4.7% of net sales for the three months ended September 30, 2011, an increase of $543,613, or 21.8%. The selling expenses of Gufeng were $224,509, or 2.1% of Gufeng’s net sales for the three months ended September 30, 2012, as compared to $843,339, or 2.8% of Gufeng’s net sales for the three months ended September 30, 2011. The selling expenses of Jinong for the three months ended September 30, 2012 were $2,792,434, or 10.0% of Jinong’s net sales, as compared to selling expenses of $1,634,926, or 7.4% of Jinong’s net sales in fiscal year 2011. Most of this increase was due to Jinong’s expanded marketing efforts and the increase in shipping costs.

General and Administrative Expenses

General and administrative expenses consisted primarily of related salaries, rental expenses, business development, depreciation and travel expenses incurred by our general and administrative departments and legal and professional expenses including expenses incurred and accrued for certain litigations. General and administrative expenses were $2,875,942, or 7.3% of net sales, for the three months ended September 30, 2012, as compared to $3,138,695, or 5.9%, of net sales for the three months ended September 30 2011, a decrease of $263,678, or 8.4%. This decrease was primarily a result of the decrease of legal fees incurred in connection with certain litigations.

Total Other Income (Expenses)

Total other income (expense) consisted of income from subsidies received from the PRC government, interest income, interest expenses and bank charges. Total other expense for the three months ended September 30, 2012 was $311,960, as compared to total other income of $84,416 for the three months ended September 30, 2011, an increase in expense of $396,376. The increase was mainly attributable to the $385,792 interest expense from Gufeng’s outstanding short-term loans.

Income Taxes

Jinong is subject to a preferred tax rate of 15% as a result of its business being classified as a High-Tech project under the PRC Enterprise Income Tax Law (“EIT”) that became effective on January 1, 2008. Jinong incurred income tax expenses of $1,754,200 for the three months ended September 30, 2012, as compared to $2,463,511 for the three months ended September 30, 2011, a decrease of $709,311, or 28.8%, which was primarily due to Jinong’s decreased operating income.

Gufeng, subject to a tax rate of 25%, incurred income tax expenses of $95,784 for the three months ended September 30, 2012, as compared to $622,653 for the three months ended September 30, 2011, a decrease of $526,869, or 84.6%, which was primarily due to Gufeng’s decreased net sales.

Jintai has been exempt from paying income tax as its products fall into the tax exemption list set out in the EIT.

Yuxing has no income tax for the three months ended September 30, 2012 as a result of being exempted from paying income tax due to its products fall into the tax exemption list set out in the EIT, the same treatment as Jintai receives.

Net Income

Net income for the three months ended September 30, 2012 was $8,861,400, a decrease of $1,870,236, or 17.4%, compared to $10,731,636 for the three months ended September 30, 2011. The decrease was attributable to the decrease in gross profit, primarily Gufeng’s gross profit. Net income as a percentage of total net sales was approximately 22.4% and 20.2 % for the three months ended September 30, 2012 and 2011, respectively.

Discussion of Segment Profitability Measures

As of September 30, 2012, we were engaged in the following businesses: the production and sale of fertilizers through Jinong and Gufeng and the production and sale of high-quality agricultural products by Yuxing. For financial reporting purpose, our operations were organized into four main business segments based on locations and products: Jinong (fertilizer production), Gufeng (fertilizer production), Jintai (agricultural products production) and Yuxing (agricultural products production). Each of the segments has its own annual budget with regard to development, production and sales. Jintai is in process of combining with Yuxing.

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Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) makes decisions with respect to resources allocation and performance assessment upon receiving financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems; however, net income by segment is the principal benchmark to measure profit or loss adopted by the CODM.

For Jinong, the net income decreased 4.7% by $491,807 to $9,937,687 for the three month ended September 30, 2012 from $10,429,494 for the same period in 2011.

For Gufeng, the net income decreased 88.5% by $1,609,399 to $ 208,497 for the three months ended September 30, 2012 from $1,817,896 for the same period in 2011.

Jintai is located at the Economic and Technical Development Zone (the "Zone") in the metro area of the city of Xi'an. The Zone has been inhabited by a large and dense population and the periphery of Jintai has bristled with various industrial factories and utility plants in the latest years. The Zone’s concentrated industrial activities and dense population changed the micro bio environment for the growth of Jintai's agricultural products and disturbed Jintai’s normal fertilizer research and development. As of September 30, 2012, Jintai was still under the relocation process and there was no revenue from Jintai.

For Yuxing, the net income increased 36.6% by $14,762 to $55,093 for the three months ended September 30, 2012 from $40,331 for the same period in 2011.

Liquidity and Capital Resources

Our principal sources of liquidity include cash from operations, borrowings from local commercial banks and net proceeds of offerings of our securities consummated in July 2009 and November/December 2009 (collectively the “Public Offerings”).

As of September 30, 2012, cash and cash equivalents were $74,197,824, an increase of $2,219,194, or 3.1%, from $71,978,630 as of June 30, 2012.

We intend to use some of the remaining net proceeds from the Public Offerings, as well as other working capital if required, to acquire new businesses, upgrade production lines and complete Yuxing’s new greenhouse facilities for agriculture products located on 88 acres of land in Hu County, 18 kilometers southeast of Xi’an city. We believe that we have sufficient cash on hand and positive projected cash flow from operations to support our business growth for the next twelve months to the extent we do not have further significant acquisitions or expansions. However, if events or circumstances occur and we do not meet our operating plan as expected, we may be required to seek additional capital and/or to reduce certain discretionary spending, which could have a material adverse effect on our ability to achieve our business objectives. Notwithstanding the foregoing, we may seek additional financing as necessary for expansion purposes and when we believe market conditions are most advantageous, which may include additional debt and/or equity financings. There can be no assurance that any additional financing will be available on acceptable terms, if at all. Any equity financing may result in dilution to existing stockholders and any debt financing may include restrictive covenants.

 The following table sets forth a summary of our cash flows for the periods indicated: 

	Three months ended September 30,
	2012			2011
Net cash provided by (used in) operating activities	$	6,386,548		$	(2,008,969	)
Net cash used in investing activities		(4,592,810	)		(919,666	)
Net cash provided by financing activities		561,255			8,010,765
Effect of exchange rate change on cash and cash equivalents		(135,799	)		645,368
Net increase in cash and cash equivalents		2,219,194			5,727,498
Cash and cash equivalents, beginning balance		71,978,630			65,606,413
Cash and cash equivalents, ending balance	$	74,197,824		$	71,333,911

Operating Activities

Net cash provided by operating activities was $6,386,548 for the three months ended September 30, 2012, an increase of $8,395,517, or 418.0% from $2,008,969 which was used in operating activities for the same period in 2011. The increase was mainly attributable to the significantly decreased inventories by 99.0%, which contributed to the 143.9% cash flow increase comparing to the same period in 2011.

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Investing Activities

Net cash used in investing activities for the three months ended September 30, 2012 was $4,592,810, an increase of $3,673,144, or 399.4% from $919,666 for the three months ended September 30, 2011. The increase was attributable to the purchases of plant, property and equipment, and increase in construction in progress.

Financing Activities

Net cash provided by financing activities in the three months ended September 30, 2012 and 2011 totaled $561,225 and $8,010,765, respectively, which was attributable to the loan proceeds. 

As of September 30, 2012 and June 30, 2012, our loans payable were as follows:

	September 30, 2012		June 30, 2012
Short term loans payable:	$	14,466,150	$	13,931,280
Total	$	14,466,150	$	13,931,280

Accounts Receivable

We had accounts receivable of $67,699,174 as of September 30, 2012, as compared to $62,001,158 as of June 30, 2012, an increase of $5,698,016 or 9.2%, which is mainly attributable to the implementation of 180 days credit policy. In order to respond to the cash flow shortage caused by the tightening financing encountered by some of our distributors, the company launched such a policy since the third quarter of fiscal year 2012 enabling such distributors take full advantage of the 180-day credit terms.

Allowance for doubtful accounts in account receivable for the three months ended September 30, 2012 was $977,433, an increase of $298,165, or 44% from $679,268 as of June 30, 2012. And the allowance for doubtful accounts as a percentage of accounts receivable was 1.4% for the three month ended September 30, 2012 and 1.1% as of June 30, 2012 respectively. The increase in the allowance of doubtful accounts were mainly due to the increase in the balance of accounts receivables and gradual aging in the balance of historical outstanding receivables.

Inventories

We had an inventory of $28,659,714 as of September 30, 2012, as compared to $28,602,684 as of June 30, 2012, an increase of $57,030, or 0.2%.

Advances to Suppliers

We had advances to suppliers of $14,985,197 as of September 30, 2012 as compared to $12,207,325 as of June 30, 2012, representing an increase of $2,777,872 or 22.8%. The increase in the amount of advances to suppliers is mainly due to Gufeng’s seasonal compound fertilizer business, which may result in carrying significant amounts of inventory and seasonal variations in working capital. To ensure our ability to deliver compound fertilizer to the distributor timely prior to the planting season, we need to have sufficient raw material in stock to feed the production. To build up the inventory, we typically make advance payment to the supplier to secure the supply of raw material of basic fertilizer. Our inventory level may fluctuate from time to time, depending how fast the raw material gets consumed and replenished during the production process, and how fast the finished goods get sold. The replenishment of raw material relies on the management’s estimate of  numerous factors, including but not limited to, the raw material’s future price, and spot price along with their volatility, as well as the seasonal demand and future price of finished fertilizer products. Such estimate may not be accurate, and the purchase decision of raw materials based on the estimate can cause excessive inventories in slow sales and insufficient inventories in peak sales.

Accounts Payable

We had accounts payable of $5,594,344 as of September 30, 2012 as compared to $6,881,748 as of June 30, 2012, representing a decrease of $1,287,404, or 18.7%.

Unearned Revenue

We had unearned revenue of $2,452,464 as of September 30, 2012 as compared to $2,625,014 as of June 30, 2012, representing a decrease of $172,550, or 6.6%.  The further decrease in unearned revenue is attributable to (i) the expanded credit sales to selected distributors since Jinong and Gufeng launched warehouse sales program, which is a customized strategy that requires less or few advanced deposit payment from the participating distributors which were selected based upon their overall business strength, credit worthiness and proven ability to develop local markets; (ii) the use of the 180-day credit policy. With offering participating distributors the advantageous sales credit in distributing the fertilizer products, the company concurrently manages more account receivables and less unearned revenue.

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Tax Payable

We had taxes payable of $19,540,884 as of September 30, 2012 as compared to $17,675,389 as of June 30, 2012, representing an increase of $1,865,495, or 10.6%. This increase was mainly due to the increase in Jinong’s income tax, which resulted from Jinong’s increased revenue.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of its financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles. Our financial statements reflect the selection and application of accounting policies which require management to make significant estimates and judgments. See Note 2 to our consolidated financial statements, “Basis of Presentation and Summary of Significant Accounting Policies.” We believe that the following paragraphs reflect the more critical accounting policies that currently affect our financial condition and results of operations:

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Revenue recognition

Sales revenue is recognized at the date of shipment to customers when a formal arrangement exists, the price is fixed or determinable, the delivery is completed, we have no other significant obligations and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue.

Our revenue consists of invoiced value of goods, net of a value-added tax (VAT). No product return or sales discount allowance is made as products delivered and accepted by customers are normally not returnable and sales discounts are normally not granted after products are delivered.

Cash and cash equivalents

For statement of cash flows purposes, we consider all cash on hand and in banks, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.

Accounts receivable

Our policy is to maintain reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Any accounts receivable of Jinong and Gufeng that is outstanding for more than 180 days will be accounted as allowance for bad debts, and any accounts receivable of Yuxing that is outstanding for more than 90 days will be accounted as allowance for bad debts.

Segment reporting

FASB ASC 280, (previously SFAS No. 131, Segment Reporting) requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

As of September 30, 2012, we were organized into four main business segments: Jinong (fertilizer production), Gufeng (fertilizer production), Jintai (agricultural products production) and Yuxing (agricultural products production). Jintai is in process of combining with Yuxing.

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 Item 3. Quantitative and Qualitative Disclosures About Market Risk

Disclosures About Market Risk

We may be exposed to changes in financial market conditions in the normal course of business. Market risk generally represents the risk that losses may occur as a result of movements in interest rates and equity prices. We currently do not use financial instruments in the normal course of business that are subject to changes in financial market conditions.

Currency Fluctuations and Foreign Currency Risk

Substantially all of our revenues and expenses are denominated in RMB. However, we use the U.S. dollar for financial reporting purposes. Conversion of RMB into foreign currencies is regulated by the People’s Bank of China through a unified floating exchange rate system. Although the PRC government has stated its intention to support the value of RMB, there can be no assurance that such exchange rate will not again become volatile or that RMB will not devalue significantly against the U.S. dollar. Exchange rate fluctuations may adversely affect the value, in U.S. dollar terms, of our net assets and income derived from our operations in the PRC.

Our reporting currency is the U.S. dollar. Except for the U.S. holding companies, all of our consolidated revenues, consolidated costs and expenses, and our assets are denominated in RMB. As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between U.S. dollars and RMB. If the RMB depreciates against the U.S. dollar, the value of our RMB revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline. Assets and liabilities are translated at exchange rates at the balance sheet dates and revenue and expenses are translated at the average exchange rates and shareholders’ equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in determining other comprehensive income, a component of shareholders’ equity. As of September 30, 2012, our accumulated other comprehensive income was $15.3 million. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk. The value of the Renminbi against the U.S. dollar and other currencies is affected by, among other things, changes in China’s political and economic conditions. Since July 2005, the Renminbi has not been pegged to the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange market to prevent significant short-term fluctuations in the exchange rate, the Renminbi may appreciate or depreciate significantly in value against the U.S. dollar in the medium to long term. Moreover, it is possible that in the future, PRC authorities may lift restrictions on fluctuations in the Renminbi exchange rate and lessen intervention in the foreign exchange market.

Interest Rate Risk

We deposit surplus funds with Chinese banks earning daily interest. We do not invest in any instruments for trading purposes. All of our outstanding debt instruments carry fixed rates of interests. The amount of short-term debt outstanding as of September 30, 2012 and June 30, 2012 was $14.5 million and $13.9 million, respectively. We are exposed to interest rate risk primarily with respect to our short-term bank loans. Although the interest rates, which are based on the banks’ prime rates with respect to our short-term loans are fixed for the terms of the loans, the terms are typically three to twelve months for short-term bank loans and interest rates are subject to change upon renewal. There were no material changes in interest rates for short-term bank loans renewed during the three months ended September 30, 2012. The original loan term on average is one year, and the remaining average life of the short term-loans is approximately eight months.  

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Management monitors the banks’ prime rates in conjunction with our cash requirements to determine the appropriate level of debt balances relative to other sources of funds. We have not entered into any hedging transactions in an effort to reduce our exposure to interest rate risk.

Credit Risk

We have not experienced significant credit risk, as most of our customers are long-term customers with superior payment records. Our receivables are monitored regularly by our credit managers.

Inflation Risk

Inflationary factors such as increases in the cost of our products and overhead costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and selling, general and administrative expenses as a percentage of net revenues if the selling prices of our products do not increase with these increased costs.

Item 4. Controls and Procedures

(a)Evaluation of disclosure controls and procedures.

At the conclusion of the period ended September 30, 2012 we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our Chief Executive Officer and Chief Financial Officer, in a manner that allowed for timely decisions regarding required disclosure.

(b)Changes in internal controls.

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

Item 1. Legal Proceedings

On October 15, 2010, a class action lawsuit was filed against us and certain of our current and former officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") on behalf of purchasers of our common stock between November 12, 2009 and September 1, 2010. On April 27, 2011, the court appointed the lead plaintiff and lead plaintiff’s counsel. On June 13, 2011, lead plaintiff filed an amended complaint, which adds several additional defendants and expands the class period to include purchasers who purchased our common stock between May 12, 2009 and January 4, 2011. The amended complaint alleges that we and certain of our current and former officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended, by making material misstatements and omissions in our financial statements, securities offering documents, and related disclosures during the class period. The plaintiffs claim that such allegedly misleading statements inflated the price of our common stock and seek monetary damages in an amount to be determined at trial. Defendant’s motions were argued on October 2, 2012. On November 2, 2012, the Nevada Federal Court issued a decision dismissing the claims for violation of sections 11, 12(a)(2) and 15 of the Securities Act of 1933 as to all defendants and dismissing certain individual defendants from the complaint and allowing the claims for violations of section 10(b) and 20(a) of the Securities Exchange Act of 1934 to continue with respect to the Company and certain of the individual defendants.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On November 19, 2012, the Company issued 151,515 shares of common stock at the price of $3.30 per share to Mr. Tao Li, the Company’s Chairman and Chief Executive Officer in the first offering of the Company’s Employee Stock Purchase Plan (“ESPP”) adopted by the Company’s Board of Directors (the “Board”) on August 9, 2012 which was later amended and restated by the Board on October 19, 2012 to clarify certain expression under Sections 6 & 7 of the ESPP. A copy of the Company’s 2012 Amended and Restated Employee Stock Purchase Plan is filed hereto as Exhibit 10.1. The issuance was in reliance upon the exemption from registration afforded by Regulation S under the Securities Act of 1933, as amended.

Item 5. Other Information

The description under Item 2 of Part II of this report is incorporated herein by reference.

Item 6. Exhibits

The exhibits required by this item are set forth in the Exhibit Index attached hereto.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CHINA GREEN AGRICULTURE, INC.
Date: November 19, 2012	By:	/s/ Tao Li
		Name: Tao Li Title: President and Chief Executive Officer (principal executive officer)

Date: November 19, 2012	By:	/s/ Ken Ren
		Name: Ken Ren Title: Chief Financial Officer (principal financial officer and principal accounting officer)

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EXHIBIT INDEX

No. Description

10.1 2012 Amended and Restated Employee Stock Purchase Plan.

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS* – XBRL Instance Document

101.SCH* – XBRL Taxonomy Extension Schema Document

101.CAL* – XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF* – XBRL Taxonomy Extension Definition Linkbase Document

101.LAB* – XBRL Taxonomy Extension Label Linkbase Document

101.PRE* – XBRL Taxonomy Extension Presentation Linkbase Document

___________________________ 

* Furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise not subject to liability under these sections.

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EX-10.1

CHINA GREEN AGRICULTURE, INC.

2012 AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN

Adopted by the Board of Directors on October 19, 2012

1. Purpose.

(a)The purpose of this 2012 Amended and Restated Employee Stock Purchase Plan (the "Plan") is to provide a means by which employees, who are not U.S. Persons of China Green Agriculture, Inc., a Nevada corporation (the "Company"), and its Affiliates, as defined in Section 1(b), which are designated as provided in Section 2(b), may be given an opportunity to purchase stock of the Company.

(b)The word "Affiliate" as used in the Plan means any parent corporation or subsidiary corporation of the Company. The word "U.S. Persons" as used in the Plan means any natural person resident in the United States.

(c)The Company, by means of the Plan, seeks to retain the services of its employees, to secure and retain the services of new employees, and to provide incentives for such persons to exert maximum efforts for the success of the Company.

2. Administration.

(a)The Plan shall be administered by the Board of Directors (the "Board") of the Company unless and until the Board delegates administration to a Committee, as provided in Section 2(c). Whether or not the Board has delegated administration, the Board shall have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan.

(b)The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i) To determine when and how rights to purchase stock of the Company shall be granted and the provisions of each offering of such rights (which need not be identical).

(ii) To designate from time to time which Affiliates of the Company shall be eligible to participate in the Plan.

(iii) To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

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(iv) To amend, suspend or terminate the Plan as provided in Sections 12 and 14.

(v) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company and its Affiliates.

(c)The Board may delegate administration of the Plan to a Committee (the "Committee") composed solely of two (2) or more Non-Employee Directors (as defined in Rule 16b-3 under the Securities Exchange Act of 1934). If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. Any later references to “the Board” in this document are deemed to include the Committee.

(d)Any interpretation of the Plan by the Board of any decision made by it under the Plan shall be final and binding on all persons.

3. Shares Subject to the Plan.

(a)Subject to the provisions of Section 11 relating to adjustments upon changes in stock, the stock that may be sold pursuant to rights granted under the Plan shall not exceed in the aggregate One Million Two Hundred and Fifty Thousand (1,250,000) of the Company’s common stock, par value $0.001 per share (the "Common Stock") plus an annual increase to be added on July 1 of each year, commencing in 2013 and ending on (and including) July 1, 2023, in an amount equal to one percent of the Company's outstanding shares of Common Stock on each such date (rounded to the nearest whole share and calculated on a fully diluted basis, that is assuming the exercise of all outstanding stock options and warrants to purchase common stock). If any right granted under the Plan shall for any reason terminate without having been exercised, the Common Stock not purchased under such right shall again become available for the Plan.

(b)The stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.

4. Grant of Rights; Offering.

(a)The Board or the Committee may from time to time grant or provide for the grant of rights to purchase Common Stock of the Company under the Plan to eligible employees (an "Offering") on a date or dates (the "Offering Date(s)") selected by the Board or the Committee. Each Offering shall be in such form and shall contain such terms and conditions as the Board or the Committee shall deem appropriate. The terms and conditions of an Offering shall be incorporated by reference into the Plan and treated as part of the Plan. The provisions of separate Offerings need not be identical, but each Offering shall include (through incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during which the Offering shall be effective, which period shall not exceed 5 years beginning with the Offering Date, and the substance of the provisions contained in Sections 5 through 8, inclusive.

(b)If an employee has more than one (1) right outstanding under the Plan, unless he or she otherwise indicates in agreements or notices delivered hereunder, a right with a lower exercise price (or an earlier-granted right if two (2) rights have identical exercise prices), shall be exercised to the fullest possible extent before a right with a higher exercise price (or a later-granted right if two (2) rights have identical exercise prices) shall be exercised.

5. Eligibility.

(a)Rights may be granted only to employees of the Company, who are not U.S. Persons or, as the Board or the Committee may designate as provided in Section 2(b), to employees of any Affiliate of the Company, who are not U.S. Persons. Except as provided in Section 5(b), an employee of the Company or any Affiliate shall not be eligible to be granted rights under the Plan unless, on the Offering Date, such employee has been in the employ of the Company or any Affiliate for such continuous period preceding such grant as the Board or the Committee may require.

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(b)The Board or the Committee may provide that each person who, during the course of an Offering, first becomes an eligible employee of the Company or designated Affiliate will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an eligible employee or occurs thereafter, receive a right under that Offering, which right shall thereafter be deemed to be a part of that Offering. Such right shall have the same characteristics as any rights originally granted under that Offering, as described herein, except that:

(i)the date on which such right is granted shall be the "Offering Date" of such right for all purposes, including determination of the exercise price of such right;

(ii)the period of the Offering with respect to such right shall begin on its Offering Date and end coincident with the end of such Offering; and

(iii)the Board or the Committee may provide that if such person first becomes an eligible employee within a specified period of time before the end of the Offering, he or she will not receive any right under that Offering.

(c)Officers, who are not U.S. Persons of the Company and any designated Affiliate shall be eligible to participate in Offerings under the Plan.

6. Rights; Purchase Price.

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(a)On each Offering Date, each eligible employee, pursuant to an Offering made under the Plan, shall be granted the right to purchase certain number of shares of Common Stock of the Company equal to (a) the number of shares purchasable with a percentage designated by the Board or the Committee not exceeding fifty percent (50%) of such employee's Earnings (as defined in Section 7(a)) during the period which begins on the Offering Date (or such later date as the Board or the Committee determines for a particular Offering) and ends on the date stated in the Offering, which date shall be no later than the end of the Offering; and (b) such additional number of shares as such employee may notify the Company that he or she wishes to purchase. Each eligible employee may elect to contribute cash to participate in such Offering in addition to or in lieu of payroll deduction. The Board or the Committee shall establish one (1) or more dates during an Offering (the "Purchase Date(s)") on which rights granted under the Plan shall be exercised and purchases of Common Stock carried out in accordance with such Offering.

(b)In connection with each Offering made under the Plan, the Board or the Committee may specify a maximum number of shares that may be purchased by any employee as well as a maximum aggregate number of shares that may be purchased by all eligible employees pursuant to such Offering. In addition, in connection with each Offering that contains more than one (1) Purchase Date, the Board or the Committee may specify a maximum aggregate number of shares which may be purchased by all eligible employees on any given Purchase Date under the Offering. If the aggregate purchase of shares upon exercise of rights granted under the Offering would exceed any such maximum aggregate number, the Board or the Committee shall make a pro rata allocation of the shares available in as nearly a uniform manner as shall be practicable and as it shall deem to be equitable.

(c) The purchase price of the stock acquired pursuant to rights granted under the Plan shall not be less than the fair market value of the stock on the Purchase Date.

7. Participation; Withdrawal; Termination.

(a)An eligible employee may become a participant in the Plan pursuant to an Offering by delivering an enrollment agreement to the Company within the time specified in the Offering, in such form as the Company provides. Each such agreement shall authorize payroll deductions of up to the maximum percentage specified by the Board or the Committee of such employee's Earnings during the Offering. An eligible employee, in addition to or in lieu of the payroll deduction, may elect to participate the Offering by contributing cash on the Purchase Date. "Earnings" is defined as an employee's regular salary or wages (including amounts thereof elected to be deferred by the employee, that would otherwise have been paid, under any arrangement established by the Company), and also, if determined by the Board or the Committee and set forth in the terms of the Offering, may include any or all of the following: (i) overtime pay, (ii) commissions, (iii) bonuses, incentive pay, profit sharing and other remuneration paid directly to the employee, and/or (iv) other items of remuneration not specifically excluded pursuant to the Plan. Earnings shall not include the cost of employee benefits paid for by the Company or an Affiliate, education or tuition reimbursements, imputed income arising under any group insurance or benefit program, traveling expenses, business and moving expense reimbursements, income received in connection with stock options, contributions made by the Company or an Affiliate under any employee benefit plan, and similar items of compensation, as determined by the Board or the Committee. Notwithstanding the foregoing, the Board or Committee may modify the definition of "Earnings" with respect to one or more Offerings as the Board or Committee determines appropriate. The payroll deductions made for each participant shall be credited to an account for such participant under the Plan and shall be deposited with the general funds of the Company. A participant may reduce (including to zero) or increase such payroll deductions, and an eligible employee may begin such payroll deductions, after the beginning of any Offering only as provided for in the Offering.

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(b)At any time during an Offering, a participant may terminate his or her payroll deductions under the Plan and withdraw from the Offering by delivering to the Company a notice of withdrawal in such form as the Company provides. Such withdrawal may be elected at any time prior to the end of the Offering except as provided by the Board or the Committee in the Offering. Upon such withdrawal from the Offering by a participant, the Company shall distribute to such participant all of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire stock for the participant) under the Offering, without interest, and such participant's interest in that Offering shall be automatically terminated. A participant's withdrawal from an Offering will have no effect upon such participant's eligibility to participate in any other Offerings under the Plan but such participant will be required to deliver a new enrollment agreement in order to participate in subsequent Offerings under the Plan.

(c)Rights granted pursuant to any Offering under the Plan shall terminate immediately upon cessation of any participating employee's employment with the Company and any designated Affiliate, for any reason, and the Company shall distribute to such terminated employee all of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire stock for the terminated employee), under the Offering, without interest.

(d)Rights granted under the Plan shall not be transferable by a participant other than by will or the laws of descent and distribution, or by a beneficiary designation as provided in Section 13, and during a participant's lifetime, shall be exercisable only by such participant.

8. Exercise.

(a)On each Purchase Date specified in the relevant Offering, each participant's accumulated payroll deductions and other additional payments specifically provided for in the Offering (without any increase for interest) shall be applied to the purchase of whole shares of stock of the Company, up to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares shall be issued upon the exercise of rights granted under the Plan. The amount, if any, of accumulated payroll deductions remaining in each participant's account after the purchase of shares which is less than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering shall be held in each such participant's account for the purchase of shares under the next Offering under the Plan, unless such participant withdraws from such next Offering, as provided in Section 7(b), or is no longer eligible to be granted rights under the Plan, as provided in Section 5, in which case such amount shall be distributed to the participant after such final Purchase Date, without interest.

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(b)No rights granted under the Plan may be exercised to any extent unless the shares to be issued upon such exercise under the Plan (including rights granted thereunder) are covered by an effective registration statement pursuant to the Securities Act of 1933, as amended (the "Securities Act") and the Plan is in material compliance with all applicable state, foreign and other securities and other laws applicable to the Plan. If on a Purchase Date in any Offering hereunder the Plan is not so registered or in such compliance, no rights granted under the Plan or any Offering shall be exercised on such Purchase Date, and the Purchase Date shall be delayed until the Plan is subject to such an effective registration statement and such compliance, except that (i) there is an available exemption for the exercise of the purchase right, and/or (ii) the Purchase Date shall not be delayed more than 5 years from the Offering Date. If on the Purchase Date of any Offering hereunder, as delayed to the maximum extent permissible, the Plan is not registered and in such compliance, no rights granted under the Plan or any Offering shall be exercised and all payroll deductions accumulated during the Offering (reduced to the extent, if any, such deductions have been used to acquire stock) shall be distributed to the participants, without interest.

9. Use of Proceeds from Stock.

Proceeds from the sale of stock pursuant to rights granted under the Plan shall constitute general funds of the Company.

10. Rights as a Stockholder.

A participant shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to rights granted under the Plan unless and until the participant's shareholdings acquired upon exercise of rights under the Plan are recorded in the books of the Company (or its transfer agent).

11. Adjustments upon Changes in Stock.

(a)If any change is made in the stock subject to the Plan, or subject to any rights granted under the Plan (through merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan and outstanding rights may, in the sole discretion of the Board or the Committee, be appropriately adjusted in the class(es) and maximum number of shares subject to the Plan and the class(es) and number of shares and price per share of stock subject to outstanding rights. Such adjustments, if any, shall be made by the Board or the Committee, the determination of which shall be final, binding and conclusive.

(b)In the event of: (1) a dissolution or liquidation of the Company; (2) a sale of all or substantially all of the assets of the Company; (3) a merger or consolidation in which the Company is not the surviving corporation; (4) a reverse merger in which the Company is the surviving corporation but the shares of the Company's Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; (5) the acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or any Affiliate of the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors; or (6) the individuals who, as of the date of the adoption of this Plan, are members of the Board (the "Incumbent Board") cease for any reason to constitute at least fifty percent (50%) of the Board; then the Incumbent Board, in its sole discretion, may take any action or arrange for the taking of any action among the following: (i) any surviving or acquiring corporation may assume outstanding rights or substitute similar rights for those under the Plan, (ii) such rights may continue in full force and effect, or (iii) all participants' accumulated payroll deductions may be used to purchase Common Stock immediately prior to or within a reasonable period of time following the transaction described above and the participants' rights under the ongoing Offering terminated. For purposes of this Section 11, if the election, or nomination for election by the Company's stockholders, of a new director was approved by a vote of at least fifty percent (50%) of the members of the Board then comprising the Incumbent Board, such new director shall upon his or her election be considered a member of the Incumbent Board.

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12. Amendment of the Plan or Offerings.

(a)The Board at any time, and from time to time, may amend the Plan or the terms of one or more Offerings. Except as provided in Section 11 relating to adjustments upon changes in stock, however, no amendment shall be effective unless approved by the stockholders of the Company within twelve (12) months before or after the adoption of the amendment, if the amendment will:

(i) Increase the number of shares reserved for rights under the Plan;

(ii) Modify the provisions as to eligibility for participation in the Plan or an Offering (to the extent such modification requires stockholder approval in order for the Plan to obtain employee stock purchase plan treatment under Section 423 of the Code (or any comparable successor provisions)); or

(iii) Modify the Plan or an Offering in any other way if such modification requires stockholder approval in order for the Plan to obtain employee stock purchase plan treatment under Section 423 of the Code.

(b)The Board may, in its sole discretion, submit any amendment to the Plan or an Offering for stockholder approval.

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13. Designation of Beneficiary.

(a)A participant may file a written designation of a beneficiary who is to receive any shares and cash, if applicable, from the participant's account under the Plan in the event of such participant's death subsequent to the end of an Offering but prior to delivery to the participant of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant's account under the Plan in the event of such participant's death during an Offering.

(b)Such designation of beneficiary may be changed by the participant at any time by written notice in the form prescribed by the Company. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living (or if an entity, is otherwise in existence) at the time of such participant's death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its sole discretion, may deliver such shares and/or cash to the spouse or to any one (1) or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may determine.

14. Termination or Suspension of the Plan.

(a)The Board in its discretion, may suspend or terminate the Plan and/or any Offering at any time. The Plan shall automatically terminate if all the shares subject to the Plan pursuant to Section 3(a) are issued. No rights may be granted under the Plan while the Plan is suspended or after it is terminated.

(b)If the Plan or an Offering is terminated, on the date of such termination all outstanding options and rights granted pursuant to the Plan, or the Offering, as applicable, will immediately expire and the Company shall distribute to each affected employee all of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire stock for the affected employee), without interest; provided, however, that the Board may, in its sole discretion, provide that the date of termination of the Plan or an Offering shall constitute a Purchase Date under, in the case of (a) Plan termination, any or all outstanding Offerings, and (b) in the case of an Offering termination, the applicable Offering.

15. Effective Date of Plan.

The Plan shall become effective on the day on which the Board approves the Plan (the "Effective Date").

16. Choice of Law.

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All questions concerning the construction, validity and interpretation of this Plan shall be governed by the law of the State of New York, without regard to such state's conflict of laws rules.

IN WITNESS WHEREOF, this Plan is adopted by the Company on this 19^th day of October, 2012.

CHINA GREEN AGRICULTURE, INC.
By:	/s/ Tao Li
	Name: Tao Li Title: President and CEO

9

EX-31.1

 Exhibit 31.1

CERTIFICATION

I, Tao Li certify that:

1.	I have reviewed this report on Form 10-Q of China Green Agriculture, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 19, 2012

/s/ Tao Li

Name: Tao Li

Title: President and Chief Executive Officer
(principal executive officer)

 

EX-31.2

 Exhibit 31.2

CERTIFICATION

I, Ken Ren, certify that:

1.	I have reviewed this report on Form 10-Q of China Green Agriculture, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 19, 2012

/s/ Ken Ren

Name: Ken Ren

Title: Chief Financial Officer
(principal financial officer and principal accounting officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as Chief Executive Officer of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 19, 2012

/s/ Tao Li

Name: Tao Li

Title: President and Chief Executive Officer
(principal executive officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned hereby certifies, in his capacity as an officer of China Green Agriculture, Inc. (the “Company”), for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 19, 2012

/s/ Ken Ren

Name: Ken Ren

Title: Chief Financial Officer
(principal financial officer and principal accounting officer)

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

PROPERTY, PLANT AND EQUIPMENT (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
Building and improvements	$ 41,804,139	$ 36,174,009
Auto	852,333	835,412
Machinery and equipment	61,865,034	63,280,923
Agriculture assets	3,157,294	3,163,286
Total property, plant and equipment	107,678,800	103,453,630
Less: accumulated depreciation	(26,146,463)	(23,388,469)
Total	$ 81,532,337	$ 80,065,161

XML

TAXES PAYABLE (Details 1) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Jun. 30, 2012
Current tax - foreign	$ 1,849,984		$ 10,801,313
Deferred tax	0		0
Total	$ 1,849,984	$ 2,463,511	$ 10,801,313

XML

INTANGIBLE ASSETS (Details Textual)	3 Months Ended		1 Months Ended									1 Months Ended						1 Months Ended			1 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2009 Use Rights [Member]	Aug. 31, 2003 Use Rights [Member]	Aug. 31, 2001 Use Rights [Member]	Sep. 25, 2009 Use Rights [Member] USD ($)	Sep. 25, 2009 Use Rights [Member] CNY	Aug. 13, 2003 Use Rights [Member] USD ($)	Aug. 13, 2003 Use Rights [Member] CNY	Aug. 16, 2001 Use Rights [Member] USD ($)	Aug. 16, 2001 Use Rights [Member] CNY	Jul. 31, 2010 Patented Technology [Member]	Aug. 31, 2001 Patented Technology [Member]	Jul. 02, 2010 Patented Technology [Member] USD ($)	Jul. 02, 2010 Patented Technology [Member] CNY	Aug. 16, 2001 Patented Technology [Member] USD ($)	Aug. 16, 2001 Patented Technology [Member] CNY	Jul. 31, 2010 Customer Relationships [Member]	Jul. 02, 2010 Customer Relationships [Member] USD ($)	Jul. 02, 2010 Customer Relationships [Member] CNY	Jul. 31, 2010 Non Compete Agreement [Member]	Jul. 02, 2010 Non Compete Agreement [Member] USD ($)	Jul. 02, 2010 Non Compete Agreement [Member] CNY	Jul. 02, 2010 Trademarks [Member] USD ($)	Jul. 02, 2010 Trademarks [Member] CNY
Intangible Assets Land Use Right Acres			88 Acres	11 Acres
Intangible Assets Land Use Right Area Square Meter			353,000 square meters	42,726 square meters
Number of Units in Real Estate Property						3,800,000	3,800,000	459,898	459,898
Finite-lived Intangible Assets, Fair Value Disclosure						$ 11,570,532	73,184,895	$ 165,365	1,045,950	$ 1,151,774	7,285,099			$ 1,454,520	9,200,000	$ 928,848	5,875,068		$ 10,276,500	65,000,000		$ 208,692	1,320,000	$ 6,311,123	40,700,000
Finite-Lived Intangible Assets Amortization Period			50 Years	50 Years	50 Years							6 Years	10 Years					10 Years			5 Years
Amortization	$ 392,390	$ 331,502

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TAXES PAYABLE (Details 2) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Jun. 30, 2012
Income before income taxes	$ 10,711,384	$ 13,195,147
Expected Income Tax Expense Benefit	2,557,340	3,165,053
Income Benefits From Company Classified High Tech	(1,168,747)	(766,515)
Income Tax Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary	6,144	(440,242)
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance	455,247	505,215
Provision for income taxes	1,849,984	2,463,511	10,801,313
Income Tax Expense Benefit Percentage	17.30%	18.70%
China [Member]
Income before income taxes	12,050,347	14,681,072
Expected Income Tax Expense Benefit	3,012,587	3,670,268
Income Benefits From Company Classified High Tech	(1,168,747)	(766,515)
Income Tax Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary	6,144	(440,242)
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance	0	0
Provision for income taxes	1,849,984	2,463,511
Expected Income Tax Expense Benefit Percentage	25.00%
Income Benefits From Company Classified High Tech Percentage	(9.70%)
Income Tax Reconciliation Equity In Earnings Losses Of Unconsolidated Subsidiary Percentage	0.10%
Income Tax Expense Benefit Percentage	15.40%
China [Member] | Maximum [Member]
Effective Income Tax Rate Percentage	25.00%	25.00%
China [Member] | Minimum [Member]
Effective Income Tax Rate Percentage	15.00%	15.00%
United States [Member]
Income before income taxes	(1,338,963)	(1,485,925)
Expected Income Tax Expense Benefit	(455,247)	(505,215)
Income Benefits From Company Classified High Tech	0	0
Income Tax Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary	0	0
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance	455,247	505,215
Provision for income taxes	$ 0	$ 0
Expected Income Tax Expense Benefit Percentage	34.00%	34.00%
Income Benefits From Company Classified High Tech Percentage	0.00%	0.00%
Income Tax Reconciliation Equity In Earnings Losses Of Unconsolidated Subsidiary Percentage	0.00%	0.00%
Income Tax Expense Benefit Percentage	(34.00%)	(34.00%)
Effective Income Tax Rate Percentage	0.00%	0.00%

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INTANGIBLE ASSETS (Details 4) (Noncompete Agreements [Member], USD $)	Sep. 30, 2012	Jun. 30, 2012
Noncompete Agreements [Member]
Non-compete agreement	$ 208,692	$ 209,088
Less: accumulated amortization	(93,911)	(83,635)
Total non-compete agreement, net	$ 114,781	$ 125,453

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STOCK OPTIONS (Tables)

3 Months Ended

Sep. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value [Table Text Block]

Options outstanding as of September 30, 2012 and related weighted average price and intrinsic value are as follows:

			Weighted
			Average
	Number		Exercise		Aggregate
	of Shares		Price		Intrinsic Value
Outstanding, June 30, 2012		115,099	$	14.66	$	-
Granted		-
Forfeited/Cancelled		-
Exercised		-
Outstanding, September 30, 2012		115,099	$	14.66	$	-

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STOCKHOLDERS' EQUITY (Details Textual) (USD $)	3 Months Ended		12 Months Ended			3 Months Ended				3 Months Ended
	Sep. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Dec. 31, 2010	Jun. 30, 2012	Mar. 31, 2012 Private Placement [Member]	Dec. 31, 2011 Restricted Stock [Member]	Jun. 02, 2011 Restricted Stock [Member]	Apr. 30, 2011 Restricted Stock [Member]	Mar. 31, 2011 Restricted Stock [Member] Chief Executive Officer [Member]
Stock Issued During Period, Shares, Issued for Services	35,041	5,704		2,275,931
Stock Issued During Period, Value, Issued for Services	$ 130,000	$ 24,000
Preferred stock, shares authorized (in shares)	20,000,000				20,000,000
Preferred Stock, Par Or Stated Value Per Share (in dollars per share)	$ 0.001				$ 0.001
Stock Issued During Period, Shares, New Issues	445,000					63,158
Percentage Of Shares In Escrow			40.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	1,000,000									96,000
Share Based Compensation Arrangement By Share Based Payment Award Options Vested							44,000	44,000	8,000
Common Stock Purchase Price Per Share						$ 4.75
Stock Issued During Period, Value, New Issues						$ 300,001
Stock Granted During Period Yet To Be Issued	555,000

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EARNINGS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The components of basic and diluted earnings per share consist of the following:

	For the Three Months Ended September 30,
	2012		2011
Net Income for Basic Earnings Per Share	$	8,861,400	$	10,731,636
Basic Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Basic	$	0.32	$	0.40
Net Income for Diluted Earnings Per Share		8,861,400		10,731,636
Diluted Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Diluted	$	0.32	$	0.40

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AMOUNT DUE TO RELATED PARTIES (Details Textual)	3 Months Ended					1 Months Ended		3 Months Ended		1 Months Ended								12 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Jun. 30, 2012 USD ($)	Aug. 10, 2010 Kingtone Wirelessinfo Solution Holding Ltd [Member] USD ($)	Aug. 10, 2010 Kingtone Wirelessinfo Solution Holding Ltd [Member] CNY	Jul. 31, 2007 Xian Techteam Science and Technology Industry Group Co [Member] USD ($)	Jul. 31, 2007 Xian Techteam Science and Technology Industry Group Co [Member] CNY	Sep. 30, 2012 Xian Techteam Science and Technology Industry Group Co [Member] USD ($)	Sep. 30, 2012 Xian Techteam Science and Technology Industry Group Co [Member] CNY	Jan. 31, 2008 Xian Jinong Hi Tech Agriculture Demonstration Zone [Member] USD ($)	Jan. 31, 2008 Xian Jinong Hi Tech Agriculture Demonstration Zone [Member] CNY	Jul. 31, 2012 Kingtone Information [Member] USD ($)	Jul. 31, 2012 Kingtone Information [Member] CNY	Jun. 30, 2012 Kingtone Information [Member]	Sep. 30, 2010 Kingtone Information [Member]	Jul. 31, 2010 Kingtone Information [Member] USD ($)	Jul. 31, 2010 Kingtone Information [Member] CNY	Jun. 30, 2012 Kingtone Information [Member] USD ($)	Jun. 30, 2012 Kingtone Information [Member] CNY
Due To Related Parties, Current	$ 1,477,357		$ 370,719
Total Contracted Value Of Agreement				479,043	3,030,000
Operating Leases, Rent Expense	15,480	63,724				954	6,460			822	5,200	3,870	24,480			1,596	10,800	3,870	24,480
Rented Lease Area In Square Meter														612 Square Meters				612 Square Meters	612 Square Meters
Rented Lease Area In Square Feet														6,588 square feet				6588 Square Feet	6588 Square Feet
Lease Term										10 years	10 years	2 years	2 years		2 years
Amount due to related parties	$ 1,106,700	$ 0						$ 1,106,700	7,000,000

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INTANGIBLE ASSETS (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
Intangible assets	$ 27,173,943	$ 27,618,641
Use Rights [Member]
Intangible assets	11,858,140	11,014,591
Patented Technology [Member]
Intangible assets	909,075	1,902,131
Customer Relationships [Member]
Intangible assets	7,980,824	8,253,368
Non Compete Agreement [Member]
Intangible assets	114,781	125,453
Trademarks [Member]
Intangible assets	$ 6,311,123	$ 6,323,098

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INVENTORIES (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
Raw materials	$ 7,221,229	$ 6,009,686
Supplies and packing materials	610,839	565,559
Work in progress	304,235	127,140
Finished goods	20,523,411	21,900,299
Total	$ 28,659,714	$ 28,602,684

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LOAN PAYABLES (Details Textual) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Jun. 30, 2012
Debt Instrument, Maturity Date, Description	The short-term loans payable consist of eight loans which mature on dates ranging from October 17, 2011 through September 24, 2013		The short-term loans payable consist of eight loans which mature on dates ranging from July 23, 2012 through April 22, 2013
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum	6.30%		6.89%
Debt Instrument Interest Rate For Collaterized Loans Stated Percentage	8.87%		8.87%
Interest Expense, Short-term Borrowings	$ 385,792	$ 156,479

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COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Sep. 30, 2012
September 30, 2013	$ 61,921
September 30, 2014	61,921
September 30, 2015	15,447
September 30, 2016	15,447
September 30, 2017	$ 15,447

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INTANGIBLE ASSETS (Details 5) (USD $)	Sep. 30, 2012
Estimated amortization expenses, September 30, 2013	$ 1,662,447
Estimated amortization expenses, September 30, 2014	1,662,447
Estimated amortization expenses, September 30, 2015	1,662,447
Estimated amortization expenses, September 30, 2016	1,620,708
Estimated amortization expenses, September 30, 2017	$ 1,378,288

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INVENTORIES

3 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

NOTE 4 - INVENTORIES

Inventories consist of the following:

	September 30,		June 30,
	2012		2012
Raw materials	$	7,221,229	$	6,009,686
Supplies and packing materials		610,839		565,559
Work in progress		304,235		127,140
Finished goods		20,523,411		21,900,299
Total	$	28,659,714	$	28,602,684

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COMMITMENTS AND CONTINGENCIES (Details Textual)	3 Months Ended		1 Months Ended												12 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Jul. 31, 2007 Xian Techteam Science and Technology Industry Group Co [Member] USD ($)	Jul. 31, 2007 Xian Techteam Science and Technology Industry Group Co [Member] CNY	Jan. 31, 2008 Xian Jinong Hi Tech Agriculture Demonstration Zone [Member] USD ($)	Jan. 31, 2008 Xian Jinong Hi Tech Agriculture Demonstration Zone [Member] CNY	Feb. 29, 2004 Village Committee Of Dong Gao Village and Zhen Nan Zhang Dai Village [Member] USD ($)	Feb. 29, 2004 Village Committee Of Dong Gao Village and Zhen Nan Zhang Dai Village [Member] CNY	Jul. 31, 2012 Kingtone Information [Member] USD ($)	Jul. 31, 2012 Kingtone Information [Member] CNY	Jun. 30, 2012 Kingtone Information [Member]	Sep. 30, 2010 Kingtone Information [Member]	Jul. 31, 2010 Kingtone Information [Member] USD ($)	Jul. 31, 2010 Kingtone Information [Member] CNY	Jun. 30, 2012 Kingtone Information [Member] USD ($)	Jun. 30, 2012 Kingtone Information [Member] CNY
Operating Leases, Rent Expense	$ 15,480	$ 63,724	$ 954	6,460	$ 822	5,200	$ 468	2,958	$ 3,870	24,480			$ 1,596	10,800	$ 3,870	24,480
Date Of New Lease Agreement Entered															Jul. 01, 2010	Jul. 01, 2010
Rented Lease Area In Square Meter							47333	47333			612 Square Meters				612 Square Meters	612 Square Meters
Rented Lease Area In Square Feet							509488	509488			6,588 square feet				6588 Square Feet	6588 Square Feet
Lease Term					10 years	10 years	50 years	50 years	2 years	2 years		2 years

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INTANGIBLE ASSETS (Details 1) (Use Rights [Member], USD $)	Sep. 30, 2012	Jun. 30, 2012
Use Rights [Member]
Land use rights	$ 12,887,671	$ 12,912,125
Less: accumulated amortization	(1,029,531)	(1,897,534)
Total land use rights, net	$ 11,858,140	$ 11,014,591

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INTANGIBLE ASSETS (Tables)

3 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Impaired Intangible Assets [Table Text Block]

Intangible assets consist of the following:

	September 30,		June 30,
	2012		2012
Land use rights, net	$	11,858,140	$	11,014,591
Technology patent, net		909,075		1,902,131
Customer relationships, net		7,980,824		8,253,368
Non-compete agreement, net		114,781		125,453
Trademarks		6,311,123		6,323,098
Total	$	27,173,943	$	27,618,641

Land Use Rights Disclosure [Table Text Block]

The Land Use Rights consist of the following:

	September 30,			June 30,
	2012			2012
Land use rights	$	12,887,671		$	12,912,125
Less: accumulated amortization		(1,029,531	)		(1,897,534	)
Total land use rights, net	$	11,858,140		$	11,014,591

Technology Know How Disclosure [Table Text Block]

The technology know-how consisted of the following:

	September 30,			June 30,
	2012			2012
Technology know-how	$	2,383,368		$	2,387,891
Less: accumulated amortization		(1,474,293	)		(485,760	)
Total technology know-how, net	$	909,075		$	1,902,131

Customer Relationships Assets Disclosure [Table Text Block]

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired customer relationships was estimated to be RMB 65,000,000 (or $10,276,500) and is amortized over the remaining useful life of ten years.

	September 30,			June 30,
	2012			2012
Customer relationships	$	10,276,500		$	10,296,000
Less: accumulated amortization		(2,295,676	)		(2,042,632	)
Total customer relationships, net	$	7,980,824		$	8,253,368

Non Compete Agreement Assets Disclosure [Table Text Block]

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired non-compete agreement was estimated to be RMB 1,320,000 (or $208,692) and is amortized over the remaining useful life of five years using the straight line method.  

	September 30,			June 30,
	2012			2012
Non-compete agreement	$	208,692		$	209,088
Less: accumulated amortization		(93,911	)		(83,635	)
Total non-compete agreement, net	$	114,781		$	125,453

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Estimated amortization expenses of intangible assets for the next five (5) years after September 30, 2012, are as follows:

Year Ends	Expense ($)
September 30, 2013		1,662,447
September 30, 2014		1,662,447
September 30, 2015		1,662,447
September 30, 2016		1,620,708
September 30, 2017		1,378,288

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PROPERTY, PLANT AND EQUIPMENT (Tables)

3 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment consist of the following:

	September 30,			June 30,
	2012			2012
Building and improvements	$	41,804,139		$	36,174,009
Auto		852,333			835,412
Machinery and equipment		61,865,034			63,280,923
Agriculture assets		3,157,294			3,163,286
Total property, plant and equipment		107,678,800			103,453,630
Less: accumulated depreciation		(26,146,463	)		(23,388,469	)
Total	$	81,532,337		$	80,065,161

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TAXES PAYABLE (Details Textual) (USD $)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2008	Sep. 30, 2012	Sep. 30, 2011	Jun. 30, 2012
New Enterprise Income Tax Rate	25.00%
Existing Enterprise Income Tax Rate	33.00%
Income Tax Rate Reconciliation Tax Holidays	50.00%
High Tech Income Tax Rate	15.00%
Provision for income taxes		$ 1,849,984	$ 2,463,511	$ 10,801,313
Value Added Tax Rate				13.00%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential		17.30%	18.70%
Jinong [Member]
Provision for income taxes		1,754,200	2,463,511
Gufeng [Member]
Provision for income taxes		$ 95,784	$ 622,653
Enterprise Income Tax [Member]
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential				25.00%

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INTANGIBLE ASSETS (Details 2) (Patented Technology [Member], USD $)	Sep. 30, 2012	Jun. 30, 2012
Patented Technology [Member]
Technology know-how	$ 2,383,368	$ 2,387,891
Less: accumulated amortization	(1,474,293)	(485,760)
Total technology know-how, net	$ 909,075	$ 1,902,131

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ACCRUED EXPENSES AND OTHER PAYABLES (Tables)

3 Months Ended

Sep. 30, 2012

Accrued Expenses and Other Payables [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accrued expenses and other payables consist of the following:

	September 30,		June 30,
	2012		2012
Payroll payable	$	125,558	$	127,149
Welfare payable		167,832		168,150
Accrued expenses		3,213,543		2,827,028
Other payables		1,720,377		1,045,010
Other levy payable		122,679		122,912
Total	$	5,349,989	$	4,290,249

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LOAN PAYABLES (Tables)

3 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The short-term loans payable consist of eight loans which mature on dates ranging from October 17, 2011 through September 24, 2013 with interest rates ranging from 6.30% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loans No. 4, 5, and 6 are collateralized by the inventory of Gufeng. In addition, the loans No. 7, 8 and 9 are guaranteed by Jinong’s credit.

No.	Payee	Loan period per agreement	Interest Rate			September 30,2012
1	Agriculture Bank of China-Beijing Branch	January 11, 2012 - January 10, 2013		6.89	%	$	1,328,040
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 - March 22, 2013		8.20	%		1,264,800
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.20	%		1,596,810
4	Bank of Tianjin	August 7,2012-May 15, 2013		7.20	%		1,106,700
5	Bank of Tianjin	August 7,2012-June 19, 2013		7.20	%		1,106,700
6	Bank of Tianjin	August 7, 2012-June 3, 2013		7.20	%		948,600
7	China Merchant Bank	August 30, 2012-August 29, 2013		6.30	%		3,952,500
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,581,000
9	Industrial and Commercial Bank of China	September 25, 2012-September 24, 2013		8.00	%		1,581,000
		Total				$	14,466,150

As of June 30, 2012, the short-term loans payable consist of eight loans which mature on dates ranging from July 23, 2012 through April 22, 2013 interest rates ranging from 6.89% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loan No. 4 is collateralized by the inventory of Gufeng. In addition, the loans No.5, 6, 7 and 8 are guaranteed by Jinong’s credit.

			Interest			June 30,
No.	Payee	Loan period per agreement	Rate			2012
1	Agriculture Bank of China-Beijing Branch	JaJanuary 11, 2012 - January 10, 2013		6.89	%	$	1,330,560
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 -  March 22, 2013		8.2	%		1,267,200
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.2	%		1,599,840
4	Bank of Tianjin	September 9, 2011 - July 23, 2012		7.54	%		1,813,680
5	Minsheng Bank	September 8, 2011 - September 8, 2012		8.2	%		1,814,372
6	Minsheng Bank	September 19, 2011 - September 19, 2012		8.2	%		561,628
7	China Merchant Bank	July 25, 2011 - July 26, 2012		8.53	%		3,960,000
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,584,000
		Total				$	13,931,280

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EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 3 - EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards.

The components of basic and diluted earnings per share consist of the following:

	For the Three Months Ended September 30,
	2012		2011
Net Income for Basic Earnings Per Share	$	8,861,400	$	10,731,636
Basic Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Basic	$	0.32	$	0.40
Net Income for Diluted Earnings Per Share		8,861,400		10,731,636
Diluted Weighted Average Number of Shares		27,462,578		26,857,338
Net Income per Share – Diluted	$	0.32	$	0.40

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TAXES PAYABLE (Tables)

3 Months Ended

Sep. 30, 2012

Taxes Payable [Abstract]

Schedule Of Tax Payable [Table Text Block]

Taxes payable consist of the following:

	September 30,		June 30,
	2012		2012
VAT provision (credit)	$	102,633	$	68,180
Income tax payable		19,092,083		17,274,817
Other levies		346,168		332,392
Total	$	19,540,884	$	17,675,389

Schedule Of Provision For Income Taxes [Table Text Block]

The provision for income taxes consists of the following:

	September 30,		June 30,
	2012		2012
Current tax - foreign	$	1,849,984	$	10,801,313
Deferred tax		-		-
Total	$	1,849,984	$	10,801,313

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the three months ended September 30, 2012, 2011 for the following reasons:

	China					United States
September 30, 2012	15% - 25%					0.34					Total
Pretax income (loss)	$	12,050,347				$	(1,338,963	)			$	10,711,384
Expected income tax expense (benefit)		3,012,587		25.0	%		(455,247	)	34.0	%		2,557,340
High-tech income benefits on Jinong		(1,168,747	)	(9.7	)%		-		-			(1,168,747	)
Losses from subsidiaries in which no benefit is recognized		6,144		0.1	%		-		-			6,144
Change in valuation allowance on deferred tax asset from US tax benefit		-					455,247		(34.0	)%		455,247
Actual tax expense	$	1,849,984		15.4	%	$	-		-	%	$	1,849,984		17.3	%

September 30, 2011	China					United States
	15% - 25%					0.34					Total
Pretax income (loss)	$	14,681,072				$	(1,485,925	)			$	13,195,147
Expected income tax expense (benefit)		3,670,268		25	%		(505,215	)	34.0	%		3,165,054
High-tech income benefits on Jinong		(766,515	)	(5.2	)%		-		-			(766,515	)
Losses from subsidiaries in which no benefit is recognized		(440,242	)	(3.0	)%		-		-			(440,242	)
Change in valuation allowance on deferred tax asset from US tax benefit		-					505,215		(34.0	)%		505,215
Actual tax expense	$	2,463,511		16.8	%	$	-		- %		$	2,463,511		18.7	%

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PROPERTY, PLANT AND EQUIPMENT (Details Textual) (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Depreciation	$ 2,802,291	$ 1,132,399
Intermediate-life Plants, Estimated Useful Life		8 Years

XML

TAXES PAYABLE (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
VAT provision (credit)	$ 102,633	$ 68,180
Income tax payable	19,092,083	17,274,817
Other levies	346,168	332,392
Total	$ 19,540,884	$ 17,675,389

XML

CONSOLIDATED CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2012	Jun. 30, 2012
ASSETS
Cash and cash equivalents	$ 74,197,824	$ 71,978,630
Accounts receivable, net	67,699,174	62,001,158
Inventories	28,659,714	28,602,684
Other current assets	756,788	299,526
Advances to suppliers	14,985,197	12,207,325
Total Current Assets	186,298,697	175,089,323
Plant, Property and Equipment, Net	81,532,337	80,065,161
Construction In Progress	171,704	0
Other Assets - Non Current	158,912	182,119
Intangible Assets, Net	27,173,943	27,618,641
Goodwill	5,066,195	5,075,809
Total Assets	300,401,788	288,031,053
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	5,594,344	6,881,748
Unearned revenue	2,452,464	2,625,014
Accrued expenses and other payables	5,349,989	4,290,249
Amount due to related parties	1,477,357	370,719
Taxes payable	19,540,884	17,675,389
Short term loans	14,466,150	13,931,280
Total Current Liabilities	48,881,188	45,774,399
Commitment and Contingencies
Stockholders' Equity
Preferred Stock, $.001 par value, 20,000,000 shares authorized, zero shares issued and outstanding	0	0
Common stock, $.001 par value, 115,197,165 shares authorized, 27,490,762 and 27,455,722 shares issued and outstanding as of September 30, 2012 and June 30, 2012, respectively	27,491	27,456
Additional paid-in capital	103,042,573	102,175,709
Statutory reserve	16,183,362	15,130,158
Retained earnings	116,951,020	109,142,824
Accumulated other comprehensive income	15,316,154	15,780,507
Total Stockholders' Equity	251,520,600	242,256,654
Total Liabilities and Stockholders' Equity	$ 300,401,788	$ 288,031,053

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INTANGIBLE ASSETS (Details 3) (Customer Relationships [Member], USD $)	Sep. 30, 2012	Jun. 30, 2012
Customer Relationships [Member]
Customer relationships	$ 10,276,500	$ 10,296,000
Less: accumulated amortization	(2,295,676)	(2,042,632)
Total customer relationships, net	$ 7,980,824	$ 8,253,368

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ORGANIZATION AND DESCRIPTION OF BUSINESS

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Nature of Operations [Text Block]

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

China Green Agriculture, Inc. (the “Company”), through its subsidiaries, is engaged in the research, development, production, distribution and sale of humic acid-based compound fertilizer, compound fertilizer, blended fertilizer, organic compound fertilizer, slow-release fertilizers, highly-concentrated water-soluble fertilizers and mixed organic-inorganic compound fertilizer and the development, production and distribution of agricultural products.

The Company’s corporate structure as of September 30, 2012 is set forth in the diagram below:

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CONCENTRATIONS AND LITIGIATION (Details Textual)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Supplier Concentration Risk [Member] | Vendor 1 [Member]
Percentage Of Vendor From Purchased By Company	10.00%	10.00%
Customer Concentration Risk [Member] | Sinoagri Holding Company Limited [Member]
Entity-Wide Revenue, Major Customer, Percentage	10.00%	10.00%

XML

COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Sep. 30, 2012

Leases [Abstract]

Schedule of Rent Expense [Table Text Block]

Accordingly, the Company recorded an aggregate of $15,480 and $63,724 as rent expenses for the three months ended September 30, 2012 and 2011, respectively. Rent expenses for the next five years ended September 30, are as follows:

Years ending:
September 30, 2013	61,921
September 30, 2014	61,921
September 30, 2015	15,447
September 30, 2016	15,447
September 30, 2017	15,447

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Sep. 30, 2012

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

NOTE 17 - COMMITMENTS AND CONTINGENCIES

On June 29, 2012, Jinong signed an office lease with Kingtone Information upon the expiration of its existing lease with Kingtone Information. Pursuant to the new lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a two-year term effective as of July 1, 2012 with monthly rent of $3,870 (RMB 24,480).

In January 2008, Jintai signed a ten year land lease with Xi’an Jinong Hi-tech Agriculture Demonstration Zone for a monthly rent of $822 (RMB 5,200).

In February 2004, Tianjuyuan signed a fifty year lease with the village committee of Dong Gao Village and Zhen Nan Zhang Dai Village in the Beijing Ping Gu District, at a monthly rent of $468 (RMB 2,958) for approximately 47,333 square meters (509,488 square feet) of land in the Ping Gu District of Beijing.

Accordingly, the Company recorded an aggregate of $15,480 and $63,724 as rent expenses for the three months ended September 30, 2012 and 2011, respectively. Rent expenses for the next five years ended September 30, are as follows:

Years ending:
September 30, 2013	61,921
September 30, 2014	61,921
September 30, 2015	15,447
September 30, 2016	15,447
September 30, 2017	15,447

XML

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Net Income for Basic Earnings Per Share	$ 8,861,400	$ 10,731,636
Basic Weighted Average Number of Shares (in share)	27,462,578	26,857,338
Net Income per Share - Basic (in dollars per share)	$ 0.32	$ 0.40
Net Income for Diluted Earnings Per Share	$ 8,861,400	$ 10,731,636
Diluted Weighted Average Number of Shares (in shares)	27,462,578	26,857,338
Net Income per Share - Diluted (in dollars per share)	$ 0.32	$ 0.40

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Jintai, Yuxing, Gufeng and Tianjuyuan. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

New Accounting Pronouncements Policy [Policy Text Block]

Recent accounting pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, which was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This guidance is effective for the Company beginning on January 1, 2012. The adoption of ASU 2011-04 did not significantly impact the Company’s consolidated financial statements.

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. The new guidance removes the presentation options in Accounting Standards Codification (ASC) 220, Comprehensive Income, and requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The ASU does not change the items that must be reported in other comprehensive income. In December 2011, the FASB issued ASU 2011-12 which defers the requirement in ASU 2011-05 that companies present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. ASU 2011-05 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2011, with early adoption permitted. The adoption of ASU 2011-05, as amended by ASU 2011-12, did not significantly impact the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The revised standard is effective for the Company for its annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 is not expected to significantly impact the Company’s consolidated financial statements. In November 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to adopt ASU 2011-11 for reporting periods beginning on or after January 1, 2013. The adoption of ASU 2011-11 is not expected to significantly impact the Company’s consolidated financial statements.

On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) - Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on the Company’s financial statements.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principle of consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Green New Jersey, Jinong, Jintai, Yuxing, Gufeng and Tianjuyuan. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Recent accounting pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS, which was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. This guidance is effective for the Company beginning on January 1, 2012. The adoption of ASU 2011-04 did not significantly impact the Company’s consolidated financial statements.

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. ASU 2011-05 revises the manner in which entities present comprehensive income in their financial statements. The new guidance removes the presentation options in Accounting Standards Codification (ASC) 220, Comprehensive Income, and requires entities to report components of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. The ASU does not change the items that must be reported in other comprehensive income. In December 2011, the FASB issued ASU 2011-12 which defers the requirement in ASU 2011-05 that companies present reclassification adjustments for each component of accumulated other comprehensive income in both net income and other comprehensive income on the face of the financial statements. ASU 2011-05 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2011, with early adoption permitted. The adoption of ASU 2011-05, as amended by ASU 2011-12, did not significantly impact the Company’s consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test for goodwill impairment. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. The revised standard is effective for the Company for its annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 is not expected to significantly impact the Company’s consolidated financial statements. In November 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities, which requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. An entity is required to adopt ASU 2011-11 for reporting periods beginning on or after January 1, 2013. The adoption of ASU 2011-11 is not expected to significantly impact the Company’s consolidated financial statements.

On July 27, 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350) - Testing Indefinite-Lived Intangible Assets for Impairment. The ASU provides entities with an option to first assess qualitative factors to determine whether events or circumstances indicate that it is more likely than not that the indefinite-lived intangible asset is impaired. If an entity concludes that it is more than 50% likely that an indefinite-lived intangible asset is not impaired, no further analysis is required. However, if an entity concludes otherwise, it would be required to determine the fair value of the indefinite-lived intangible asset to measure the amount of actual impairment, if any, as currently required under US GAAP. The ASU is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this pronouncement is not expected to have a material impact on the Company’s financial statements.

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CONSOLIDATED CONDENSED BALANCE SHEETS [Parenthetical] (USD $)	Sep. 30, 2012	Jun. 30, 2012
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	115,197,165	115,197,165
Common stock, shares issued	27,490,762	27,455,722
Common stock, shares, outstanding	27,490,762	27,455,722

XML

TAXES PAYABLE

3 Months Ended

Sep. 30, 2012

Taxes Payable [Abstract]

Disclosure Of Taxes Payable [Text Block]

NOTE 12 - TAXES PAYABLE

Enterprise Income Tax

Effective January 1, 2008, the new Enterprise Income Tax (“EIT”) law of the PRC replaced the existing tax laws for Domestic Enterprises (“DES”) and Foreign Invested Enterprises (“FIEs”). The new EIT rate of 25% replaced the 33% rate that was applicable to both DES and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007. Jinong’s provision for income taxes for the three months ended September 30, 2012 and 2011 was $1,754,200 and $2,463,511, respectively. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $95,784 and $622,653 for the three months ended September 30, 2012 and 2011, respectively. Jintai and Yuxing have been exempt from paying income tax since its formation as it produces products which fall into the tax exemption list set out in the EIT. This exemption is expected to last as long as the applicable provisions of the EIT do not change.

Value-Added Tax

All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “ Exemption of VAT for Organic Fertilizer Products ”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. The VAT exemption applies to all agricultural products sold by Jintai and Yuxing, and all but a nominal amount of agricultural products sold by Jinong.

Income Taxes and Related Payables

Taxes payable consist of the following:

	September 30,		June 30,
	2012		2012
VAT provision (credit)	$	102,633	$	68,180
Income tax payable		19,092,083		17,274,817
Other levies		346,168		332,392
Total	$	19,540,884	$	17,675,389

Income Taxes in the Consolidated Statements of Income and Comprehensive Income

The provision for income taxes consists of the following:

	September 30,		June 30,
	2012		2012
Current tax - foreign	$	1,849,984	$	10,801,313
Deferred tax		-		-
Total	$	1,849,984	$	10,801,313

Tax Rate Reconciliation

Our effective tax rates were approximately 17.3%and 18.7% for the three months ended September 30, 2012 and 2011, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the three months ended September 30, 2012, 2011 for the following reasons:

	China					United States
September 30, 2012	15% - 25%					0.34					Total
Pretax income (loss)	$	12,050,347				$	(1,338,963	)			$	10,711,384
Expected income tax expense (benefit)		3,012,587		25.0	%		(455,247	)	34.0	%		2,557,340
High-tech income benefits on Jinong		(1,168,747	)	(9.7	)%		-		-			(1,168,747	)
Losses from subsidiaries in which no benefit is recognized		6,144		0.1	%		-		-			6,144
Change in valuation allowance on deferred tax asset from US tax benefit		-					455,247		(34.0	)%		455,247
Actual tax expense	$	1,849,984		15.4	%	$	-		-	%	$	1,849,984		17.3	%

September 30, 2011	China					United States
	15% - 25%					0.34					Total
Pretax income (loss)	$	14,681,072				$	(1,485,925	)			$	13,195,147
Expected income tax expense (benefit)		3,670,268		25	%		(505,215	)	34.0	%		3,165,053
High-tech income benefits on Jinong		(766,515	)	(5.2	)%		-		-			(766,515	)
Losses from subsidiaries in which no benefit is recognized		(440,242	)	(3.0	)%		-		-			(440,242	)
Change in valuation allowance on deferred tax asset from US tax benefit		-					505,215		(34.0	)%		505,215
Actual tax expense	$	2,463,511		16.8	%	$	-		- %		$	2,463,511		18.7	%

XML

DOCUMENT AND ENTITY INFORMATION	3 Months Ended
	Sep. 30, 2012	Nov. 05, 2012
Entity Registrant Name	China Green Agriculture, Inc.
Entity Central Index Key	0000857949
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Trading Symbol	cga
Entity Common Stock, Shares Outstanding		27,938,839
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2013

XML

STOCKHOLDERS' EQUITY

3 Months Ended

Sep. 30, 2012

Stockholders Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 13 - STOCKHOLDERS’ EQUITY

Common Stock

On July 2, 1010, the Company issued a total of 2,275,931 shares of common stock to Gufeng’s previous shareholders or their designees. Of the shares being issued in the acquisition, 40% have been held in escrow pending satisfaction of certain conditions such as make good targets set for Gufeng for the fiscal year ended June 30, 2011.

On March 31, 2011, the Company granted a total of 96,000 shares of restricted common stock of the Company to certain directors and executive officers under its 2009 Equity Incentive Plan. Pursuant to the terms of the grant, 8,000 shares of restricted common stock were vested on April 30, 2011, 44,000 shares vested on June 2, 2011, and 44,000 shares vested on December 31,2011. These shares were issued in September 2011.

On March 8, 2012, the Company issued 63,158 shares of common stock in a private placement to Mr. Tao Li, the Company’s Chairman and Chief Executive Officer, at a purchase price of $4.75 per share, for an aggregate purchase price of $300,001 pursuant to and in accordance with the terms and provisions of a Securities Purchase Agreement in a form previously presented to the Board of Directors of the Company.

On March 31, 2012, the Company issued 5,704 shares of Common Stock valued at $24,000 of consulting services.

On June 14, 2012, the Company granted a total of 1,000,000 shares of restricted common stock of the Company to certain directors, executive officers and key employees under its 2009 Equity Incentive Plan. Pursuant to the terms of the grant, the stock grants vest in three installments on June 30, 2012, September 30, 2012 and December 31, 2012. The Company has issued 445,000 shares of common stock related to these grants with 555,000 yet to be issued.

On September 12, 2012, the Company issued 35,041 shares of Common Stock valued at $130,000 of consulting services.

Preferred Stock

Under the Company’s articles of incorporation, the board of directors has the authority, without further action by stockholders, to designate up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges, qualifications and restrictions granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference and sinking fund terms, any or all of which may be greater than the rights of the common stock. If the Company sells preferred stock under its registration statement on Form S-3, it will fix the rights, preferences, privileges, qualifications and restrictions of the preferred stock of each series in the certificate of designation relating to that series and will file the certificate of designation that describes the terms of the series of preferred stock the Company offers before the issuance of the related series of preferred stock.

As of September 30, 2012, the Company has 20,000,000 shares of preferred stock authorized, with a par value of $.001 per share, of which no shares are issued or outstanding.

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CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Sales
Net sales	$ 39,512,740	$ 53,102,594
Cost of goods sold
Cost of goods sold	22,579,367	34,193,862
Gross profit	16,933,373	18,908,732
Operating expenses
Selling expenses	3,034,087	2,490,474
General and administrative expenses	2,875,942	3,138,695
Total operating expenses	5,910,029	5,629,169
Income from operations	11,023,344	13,279,563
Other income (expense)
Other income (expense)	(600)	(25,424)
Interest income	74,432	97,487
Interest expense, net	(385,792)	(156,479)
Total other income (expense)	(311,960)	(84,416)
Income before income taxes	10,711,384	13,195,147
Provision for income taxes	1,849,984	2,463,511
Net income	8,861,400	10,731,636
Other comprehensive income
Foreign currency translation gain (loss)	(464,353)	1,904,146
Comprehensive income	8,397,047	12,635,782
Basic weighted average shares outstanding (in shares)	27,462,578	26,857,338
Basic net earnings per share (in dollars per share)	$ 0.32	$ 0.40
Diluted weighted average shares outstanding (in shares)	27,462,578	26,857,338
Diluted net earnings per share (in dollars per share)	$ 0.32	$ 0.40
Jinong [Member]
Sales
Net sales	27,850,976	22,242,251
Cost of goods sold
Cost of goods sold	12,839,498	8,110,130
Operating expenses
Income from operations	11,611,611	12,187,448
Other income (expense)
Interest expense, net	0	0
Provision for income taxes	1,754,200	2,463,511
Net income	9,937,587	10,429,494
Gufeng [Member]
Sales
Net sales	10,936,971	29,613,091
Cost of goods sold
Cost of goods sold	9,189,762	25,269,670
Operating expenses
Income from operations	688,639	2,608,589
Other income (expense)
Interest expense, net	(385,792)	(156,479)
Provision for income taxes	95,784	622,653
Net income	207,670	1,817,896
Jintai [Member]
Sales
Net sales	0	1,198,887
Cost of goods sold
Cost of goods sold	0	748,830
Operating expenses
Income from operations	0	10,459
Other income (expense)
Net income	10	10,501
Yuxing [Member]
Sales
Net sales	724,793	48,365
Cost of goods sold
Cost of goods sold	550,107	65,232
Operating expenses
Income from operations	62,129	(40,730)
Other income (expense)
Net income	$ 55,092	$ (40,331)

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CONSTRUCTION IN PROGRESS

3 Months Ended

Sep. 30, 2012

Construction In Progress [Abstract]

Construction In Progress Disclosure [Text Block]

NOTE 7 - CONSTRUCTION IN PROGRESS

As of September 30, 2012 and June 30, 2012, construction in progress representing construction for Yuxing’s supporting facilities amounted to $171,704 and $0, respectively.

XML

PROPERTY, PLANT AND EQUIPMENT

3 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property Plant and Equipment Excluding Construction Progress Disclosure [Text Block]

NOTE 6 - PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

	September 30,			June 30,
	2012			2012
Building and improvements	$	41,804,139		$	36,174,009
Auto		852,333			835,412
Machinery and equipment		61,865,034			63,280,923
Agriculture assets		3,157,294			3,163,286
Total property, plant and equipment		107,678,800			103,453,630
Less: accumulated depreciation		(26,146,463	)		(23,388,469	)
Total	$	81,532,337		$	80,065,161

Depreciation expenses for the three months ended September 30, 2012 and 2011 were $2,802,291 and $1,132,399, respectively.

Agriculture assets consist of reproductive trees that are expected to be commercially productive for a period of eight years.

XML

SUBSEQUENT EVENTS

3 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 18 – SUBSEQUENT EVENTS

On September 26, the Company agreed to issue 151,515 shares of Common Stock at the market price of $3.30 per share to Mr. Tao Li, the Company’s Chairman and Chief Executive Officer in the first offering of the Company’s Employee Stock Purchase Plan (“ESPP”) adopted by the Company’s Board of Directors (the “Board”) on August 9, 2012. Mr. Li had previously advanced the Company $300,000 and has unpaid compensation accrued in the accompanying balance sheet. The 151,515 shares were not issued until after September 30, 2012 and accordingly the due to officer of $300,000 and accrued compensation of $200,000 will be deducted during the quarter ended December 31, 2012.

On September 28, 2012, the Company approved the granting of (i) 200,000 shares of restricted stock to Mr. Ken Ren, the Company’s Chief Financial Officer (the “CFO”), and (ii) 40,000 shares of restricted stock to Mr. Yizhao Zhang, 30,000 shares of restricted stock to Ms. Yiru Shi, and 20,000 shares of restricted stock to Mr. Lianfu Liu, each is an independent director of the Company (the “Stock Grants”). The Stock Grants all vest in three installments on December 31, 2012, March 31, 2013, and June 30, 2013, with 100,000 shares vesting first and 50,000 shares vesting on each of the other two vesting dates to the CFO; and 10,000 shares vesting first and half of the their respective remaining shares vesting on each of the other two vesting dates to the three independent directors. The vest of the restricted shares is conditioned on the individuals being employed by the Company at the time of the vest. These shares will be issued during the quarter ended December 31, 2012 and the expenses associated with the issuance of these shares will be recorded over the vesting period of the shares.

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STOCK OPTIONS

3 Months Ended

Sep. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 14 - STOCK OPTIONS

On March 31, 2011, the Company’s Compensation Committee approved the cancellation of all those outstanding unvested options granted to officers and directors and former officers on March 1, 2010 and February 7, 2010 under the 2009 Equity Incentive Plan.

There were no issuances of stock options during the three months ended September 30, 2012 and 2011.

Options outstanding as of September 30, 2012 and related weighted average price and intrinsic value are as follows:

			Weighted
			Average
	Number		Exercise		Aggregate
	of Shares		Price		Intrinsic Value
Outstanding, June 30, 2012		115,099	$	14.66	$	-
Granted		-
Forfeited/Cancelled		-
Exercised		-
Outstanding, September 30, 2012		115,099	$	14.66	$	-

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AMOUNT DUE TO RELATED PARTIES

3 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 10 - AMOUNT DUE TO RELATED PARTIES

As of September 30, 2012 and June 30, 2012, the amount due to related parties was $1,477,357 and $370,719, respectively.  These amounts represent unsecured, non-interest bearing loans that are due on demand.  These loans are not subject to written agreements.

On August 10, 2010, Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd (“Yuxing”) which is a subsidiary of the Company, entered into an agreement with Kingtone Wirelessinfo Solution Holding Ltd (“Kingtone”) which was responsible for developing certain electronic control systems for Yuxing. The total contracted value of this agreement, including value-added taxes and other taxes, is RMB3,030,000, or approximately $479,043.

In July 2007, Jinong signed an office lease with Xi’an Techteam Science and Technology Industry (Group) Co., Ltd. (the “Group Company”), which is controlled by Mr. Tao Li, Green Nevada’s Chairman, President and CEO at a monthly rent of $954 (RMB 6,460) per month. On September 30, 2010, Jinong cancelled this lease agreement with the Group Company without penalty and signed a two year lease effective as of July 1, 2010 directly with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”), who owns the property. Kingtone Information is a Variable Interest Entity (“VIE”) controlled by Kingtone Wirelessinfo Solution Holding Ltd. (“Kingtone Wirelessinfo”), whose Chairman and majority shareholder is Mr. Tao Li. According to the new lease agreement, the monthly rent is $1,596 (RMB10,800).

On June 29, 2012, Jinong signed an office lease with Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”). Pursuant to the lease, Jinong rented 612 square meters (approximately 6,588 square feet) of office space from Kingtone Information. The lease provided for a two-year term effective as of July 1, 2012 with monthly rent of RMB 24,480 (approximately $3,870).

During the quarter ended September 30, 2012, the Company entered into a related party transaction to borrow $1,106,700 (RMB 7,000,000) from Xi’an Techteam Science & Technology Industry (Group) Co. Ltd. (“Xi’an”). The Company’s Chairman Tao Li, also serves as Chairman of Xi’an, and is a controlling shareholder. The amount borrowed is non interest bearing and does not contain a specific maturity date.

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SEGMENT REPORTING (Details) (USD $)	3 Months Ended
	Sep. 30, 2012		Sep. 30, 2011		Jun. 30, 2012
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated	$ 39,512,740		$ 53,102,594
Operating income :
Operating income Consolidated	11,023,344		13,279,563
Stock compensation	(866,899)		(557,192)
Net income:
Net income Consolidated	8,861,400		10,731,636
Depreciation and Amortization:
Depreciation and Amortization Consolidated	3,194,681		1,463,901
Interest expense:
Interest expense Consolidated	385,792		156,479
Capital Expenditure:
Capital Expenditure, Consolidated	4,592,810		919,666
Identifiable assets:
Identifiable assets, Consolidated	300,401,788		288,031,053		288,031,053
Jinong [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated	27,850,976		22,242,251
Operating income :
Operating income Consolidated	11,611,611		12,187,448
Net income:
Net income Consolidated	9,937,587		10,429,494
Depreciation and Amortization:
Depreciation and Amortization Consolidated	2,035,853		575,478
Interest expense:
Interest expense Consolidated	0		0
Capital Expenditure:
Capital Expenditure, Consolidated	4,343,939		765,309
Identifiable assets:
Identifiable assets, Consolidated	164,958,221		221,575,406		221,575,406
Gufeng [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated	10,936,971		29,613,091
Operating income :
Operating income Consolidated	688,639		2,608,589
Net income:
Net income Consolidated	207,670		1,817,896
Depreciation and Amortization:
Depreciation and Amortization Consolidated	845,363		789,592
Interest expense:
Interest expense Consolidated	385,792		156,479
Capital Expenditure:
Capital Expenditure, Consolidated	46,153		24,341
Identifiable assets:
Identifiable assets, Consolidated	93,171,801		57,657,305		57,657,305
Jintai [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated	0		1,198,887
Operating income :
Operating income Consolidated	0		10,459
Net income:
Net income Consolidated	10		10,501
Depreciation and Amortization:
Depreciation and Amortization Consolidated	0		283
Capital Expenditure:
Capital Expenditure, Consolidated	0		0
Identifiable assets:
Identifiable assets, Consolidated	4,599,779		6,670,058		6,670,058
Yuxing [Member]
Revenues from unaffiliated customers:
Revenues from unaffiliated customers Consolidated	724,793		48,365
Operating income :
Operating income Consolidated	62,129		(40,730)
Net income:
Net income Consolidated	55,092		(40,331)
Depreciation and Amortization:
Depreciation and Amortization Consolidated	313,465		98,548
Capital Expenditure:
Capital Expenditure, Consolidated	202,718		130,016
Identifiable assets:
Identifiable assets, Consolidated	37,448,008		1,851,745		1,851,745
Green New Jersey [Member]
Operating income :
Operating income Consolidated	0	[1]	(705,036)	[1]
Net income:
Net income Consolidated	75	[1]	278	[1]
Identifiable assets:
Identifiable assets, Consolidated	227,885	[1]	280,445	[1]	280,445	[1]
Parent Company [Member]
Operating income :
Operating income Consolidated	(602,138)	[2]	(781,167)	[2]
Stock compensation	736,897	[2]	0	[2]
Net income:
Net income Consolidated	(1,339,034)	[2]	(1,486,202)	[2]
Interest expense:
Interest expense Consolidated			0	[2]
Identifiable assets:
Identifiable assets, Consolidated	$ (3,906)	[2]	$ (3,906)	[2]	$ (3,906)	[2]

[1] Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

[2] Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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INTANGIBLE ASSETS

3 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 8 - INTANGIBLE ASSETS

Intangible assets consist of the following:

	September 30,		June 30,
	2012		2012
Land use rights, net	$	11,858,140	$	11,014,591
Technology patent, net		909,075		1,902,131
Customer relationships, net		7,980,824		8,253,368
Non-compete agreement, net		114,781		125,453
Trademarks		6,311,123		6,323,098
Total	$	27,173,943	$	27,618,641

LAND USE RIGHT

On September 25, 2009, Yuxing was granted a land use right for approximately 88 acres (353,000 square meters or 3.8 million square feet) by the People’s Government and Land & Resources Bureau of Hu County, Xi’an, Shaanxi Province. The fair value of the related intangible asset was determined to be the respective cost of RMB 73,184,895 (or $11,570,532). The intangible asset is being amortized over the grant period of 50 years using the straight line method.

On August 13, 2003, Tianjuyuan was granted a certificate of Land Use Right for a parcel of land of approximately 11 acres (42,726 square meters or 459,898 square feet) at Ping Gu District, Beijing. The purchase cost was recorded at RMB1,045,950 (or $165,365). The intangible asset is being amortized over the grant period of 50 years.

On August 16, 2001, Jinong received a land use right as a contribution from a shareholder, which was granted by the People’s Government and Land & Resources Bureau of Yanling District, Shaanxi Province. The fair value of the related intangible asset at the time of the contribution was determined to be RMB 7,285,099 (or $1,151,774). The intangible asset is being amortized over the grant period of 50 years.

The Land Use Rights consist of the following:

	September 30,			June 30,
	2012			2012
Land use rights	$	12,887,671		$	12,912,125
Less: accumulated amortization		(1,029,531	)		(1,897,534	)
Total land use rights, net	$	11,858,140		$	11,014,591

TECHNOLOGY PATENT

On August 16, 2001, Jinong was issued a technology patent related to a proprietary formula used in the production of humid acid. The fair value of the related intangible asset was determined to be the respective cost of RMB 5,875,068 (or $928,848) and is being amortized over the patent period of 10 years using the straight line method.

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired technology patent was estimated to be RMB 9,200,000 (or $1,454,520) and is amortized over the remaining useful life of six years using the straight line method.

The technology know-how consisted of the following:

	September 30,			June 30,
	2012			2012
Technology know-how	$	2,383,368		$	2,387,891
Less: accumulated amortization		(1,474,293	)		(485,760	)
Total technology know-how, net	$	909,075		$	1,902,131

CUSTOMER RELATIONSHIP

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired customer relationships was estimated to be RMB 65,000,000 (or $10,276,500) and is amortized over the remaining useful life of ten years.

	September 30,			June 30,
	2012			2012
Customer relationships	$	10,276,500		$	10,296,000
Less: accumulated amortization		(2,295,676	)		(2,042,632	)
Total customer relationships, net	$	7,980,824		$	8,253,368

NON-COMPETE AGREEMENT

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired non-compete agreement was estimated to be RMB 1,320,000 (or $208,692) and is amortized over the remaining useful life of five years using the straight line method.  

	September 30,			June 30,
	2012			2012
Non-compete agreement	$	208,692		$	209,088
Less: accumulated amortization		(93,911	)		(83,635	)
Total non-compete agreement, net	$	114,781		$	125,453

TRADEMARKS

On July 2, 2010, the Company acquired Gufeng and its wholly-owned subsidiary Tianjuyuan. The preliminary fair value on the acquired trademarks was estimated to be $6,311,123, an equivalent amount in U.S. dollars to an amount of RMB 40,700,000, and is subject to an annual impairment test.

Total amortization expenses of intangible assets for the three months ended September 30, 2012 and 2011 amounted to $392,390 and $331,502, respectively.

AMORTIZATION EXPENSE

Estimated amortization expenses of intangible assets for the next five (5) years after September 30, 2012, are as follows:

Year Ends	Expense ($)
September 30, 2013		1,662,447
September 30, 2014		1,662,447
September 30, 2015		1,662,447
September 30, 2016		1,620,708
September 30, 2017		1,378,288

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ACCRUED EXPENSES AND OTHER PAYABLES

3 Months Ended

Sep. 30, 2012

Accrued Expenses and Other Payables [Abstract]

Accrued Expenses and Other Payables Disclosure [Text Block]

NOTE 9 - ACCRUED EXPENSES AND OTHER PAYABLES

Accrued expenses and other payables consist of the following:

	September 30,		June 30,
	2012		2012
Payroll payable	$	125,558	$	127,149
Welfare payable		167,832		168,150
Accrued expenses		3,213,543		2,827,028
Other payables		1,720,377		1,045,010
Other levy payable		122,679		122,912
Total	$	5,349,989	$	4,290,249

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LOAN PAYABLES

3 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

Short-term Debt [Text Block]

NOTE 11 - LOAN PAYABLES

The short-term loans payable consist of eight loans which mature on dates ranging from October 17, 2011 through September 24, 2013 with interest rates ranging from 6.30% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loans No. 4, 5, and 6 are collateralized by the inventory of Gufeng. In addition, the loans No. 7, 8 and 9 are guaranteed by Jinong’s credit.

No.	Payee	Loan period per agreement	Interest Rate			September 30,2012
1	Agriculture Bank of China-Beijing Branch	January 11, 2012 - January 10, 2013		6.89	%	$	1,328,040
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 - March 22, 2013		8.20	%		1,264,800
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.20	%		1,596,810
4	Bank of Tianjin	August 7,2012-May 15, 2013		7.20	%		1,106,700
5	Bank of Tianjin	August 7,2012-June 19, 2013		7.20	%		1,106,700
6	Bank of Tianjin	August 7, 2012-June 3, 2013		7.20	%		948,600
7	China Merchant Bank	August 30, 2012-August 29, 2013		6.30	%		3,952,500
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,581,000
9	Industrial and Commercial Bank of China	September 25, 2012-September 24, 2013		8.00	%		1,581,000
		Total				$	14,466,150

The bank loan from Industrial and Commercial Bank of China had been renewed after expiration with the same loan amount and 8.0% interest rate. The renewed loan period is from September 25, 2012 to September 24, 2013.

As of June 30, 2012, the short-term loans payable consist of eight loans which mature on dates ranging from July 23, 2012 through April 22, 2013 interest rates ranging from 6.89% to 8.87%. The loans No.1, 2 and 3 are collateralized by Tianjyan’s land use rights and building ownership right. The loan No. 4 is collateralized by the inventory of Gufeng. In addition, the loans No.5, 6, 7 and 8 are guaranteed by Jinong’s credit.

			Interest			June 30,
No.	Payee	Loan period per agreement	Rate			2012
1	Agriculture Bank of China-Beijing Branch	JaJanuary 11, 2012 - January 10, 2013		6.89	%	$	1,330,560
2	Agriculture Bank of China-Beijing Branch	March 23, 2012 -  March 22, 2013		8.2	%		1,267,200
3	Agriculture Bank of China-Beijing Branch	April 23, 2012 - April 22, 2013		8.2	%		1,599,840
4	Bank of Tianjin	September 9, 2011 - July 23, 2012		7.54	%		1,813,680
5	Minsheng Bank	September 8, 2011 - September 8, 2012		8.2	%		1,814,372
6	Minsheng Bank	September 19, 2011 - September 19, 2012		8.2	%		561,628
7	China Merchant Bank	July 25, 2011 - July 26, 2012		8.53	%		3,960,000
8	Industrial and Commercial Bank of China	October 17, 2011 - October 17,2012		8.87	%		1,584,000
		Total				$	13,931,280

The interest expenses from short-term loans were $385,792 and $156,479 for the three months ended September 30, 2012 and 2011, respectively.

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SUBSEQUENT EVENTS (Details Textual) (USD $)	3 Months Ended					3 Months Ended
	Sep. 30, 2012	Sep. 30, 2012 Subsequent Event [Member]	Sep. 30, 2012 Subsequent Event [Member] Vested On 31 December 2012 [Member]	Sep. 30, 2012 Subsequent Event [Member] Vested On 31 March 2012 [Member]	Sep. 30, 2012 Subsequent Event [Member] Vested On 31 June 2013 [Member]	Mar. 31, 2011 Chief Executive Officer [Member] Restricted Stock [Member]	Sep. 30, 2012 Chief Executive Officer [Member] Subsequent Event [Member]	Sep. 30, 2012 Chief Financial Officer [Member] Subsequent Event [Member] Restricted Stock [Member]	Sep. 30, 2012 Director1 [Member] Subsequent Event [Member] Restricted Stock [Member]	Sep. 30, 2012 Director2 [Member] Subsequent Event [Member] Restricted Stock [Member]	Sep. 30, 2012 Director3 [Member] Subsequent Event [Member] Restricted Stock [Member]
Common Stock, Capital Shares Reserved for Future Issuance							151,515
Long-term Debt							$ 300,000
Common Stock Price Per Share							$ 3.30
Due to Officers or Stockholders		300,000
Increase (Decrease) in Deferred Compensation		$ 200,000
Stock Issued During Period Shares Restricted Stock Granted								200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	1,000,000					96,000			40,000	30,000	20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number			100,000	50,000	10,000

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SEGMENT REPORTING (Tables)

3 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following tables present a summary of our businesses and operating segments results. 

	Three months ended September 30,
	2012			2011
Revenues from unaffiliated customers:
Jinong	$	27,850,976		$	22,242,251
Gufeng		10,936,971			29,613,091
Jintai		-			1,198,887
Yuxing		724,793			48,365
Consolidated	$	39,512,740		$	53,102,594
Operating income :
Jinong	$	11,611,611		$	12,187,448
Gufeng		688,639			2,608,589
Jintai		-			10,459
Yuxing		62,129			(40,730	)
Reconciling item (1)		-			(705,036	)
Reconciling item (2)		(602,138	)		(781,167	)
Reconciling item (2)—stock compensation		(736,897	)		-
Consolidated	$	11,023,344		$	13,279,563
Net income:
Jinong	$	9,937,587		$	10,429,494
Gufeng		207,670			1,817,896
Jintai		10			10,501
Yuxing		55,092			(40,331	)
Reconciling item (1)		75			278
Reconciling item (2)		(1,339,034	)		(1,486,202	)
Consolidated	$	8,861,400		$	10,731,636
Depreciation and Amortization:
Jinong	$	2,035,853		$	575,478
Gufeng		845,363			789,592
Jintai		-			283
Yuxing		313,465			98,548
Consolidated	$	3,194,681		$	1,463,901
Interest expense:
Jinong	$	-		$	-
Gufeng		385,792			156,479
Consolidated	$	385,792		$	156,479
Capital Expenditure:
Jinong	$	4,343,939		$	765,309
Gufeng		46,153			24,341
Jintai		-			-
Yuxing		202,718			130,016
Consolidated	$	4,592,810		$	919,666
		As of			As of
		September 30, 2012			June 30, 2012
Identifiable assets:
Jinong	$	164,958,221		$	221,575,406
Gufeng		93,171,801			57,657,305
Jintai		4,599,779			6,670,058
Yuxing		37,448,008			1,851,745
Reconciling item (1)		227,885			280,445
Reconciling item (2)		(3,906	)		(3,906	)
Consolidated	$	300,401,788		$	288,031,053

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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LOAN PAYABLES (Details) (USD $)	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Jun. 30, 2012
Short term loans	$ 14,466,150	$ 13,931,280
Agriculture Bank Of China Beijing Branch [Member]
Debt Instrument, Maturity Date Range, Start	Jan. 11, 2012	Jan. 11, 2012
Debt Instrument, Maturity Date Range, End	Jan. 10, 2013	Jan. 10, 2013
Debt Instrument, Interest Rate, Stated Percentage	6.89%	6.89%
Short term loans	1,328,040	1,330,560
Agriculture Bank Of China Beijing Branch 1 [Member]
Debt Instrument, Maturity Date Range, Start	Mar. 23, 2012	Mar. 23, 2012
Debt Instrument, Maturity Date Range, End	Mar. 22, 2013	Mar. 22, 2013
Debt Instrument, Interest Rate, Stated Percentage	8.20%	8.20%
Short term loans	1,264,800	1,267,200
Agriculture Bank Of China Beijing Branch 2 [Member]
Debt Instrument, Maturity Date Range, Start	Apr. 23, 2012	Apr. 23, 2012
Debt Instrument, Maturity Date Range, End	Apr. 22, 2013	Apr. 22, 2013
Debt Instrument, Interest Rate, Stated Percentage	8.20%	8.20%
Short term loans	1,596,810	1,599,840
Bank Of Tianjin [Member]
Debt Instrument, Maturity Date Range, Start	Aug. 07, 2012	Sep. 09, 2011
Debt Instrument, Maturity Date Range, End	May 15, 2013	Jul. 23, 2012
Debt Instrument, Interest Rate, Stated Percentage	7.20%	7.54%
Short term loans	1,106,700	1,813,680
Bank Of Tianjin 1 [Member]
Debt Instrument, Maturity Date Range, Start	Aug. 07, 2012
Debt Instrument, Maturity Date Range, End	Jun. 19, 2013
Debt Instrument, Interest Rate, Stated Percentage	7.20%
Short term loans	1,106,700
Bank Of Tianjin 2 [Member]
Debt Instrument, Maturity Date Range, Start	Aug. 07, 2012
Debt Instrument, Maturity Date Range, End	Jun. 03, 2013
Debt Instrument, Interest Rate, Stated Percentage	7.20%
Short term loans	948,600
Minsheng Bank [Member]
Debt Instrument, Maturity Date Range, Start		Sep. 08, 2011
Debt Instrument, Maturity Date Range, End		Sep. 08, 2012
Debt Instrument, Interest Rate, Stated Percentage		8.20%
Short term loans		1,814,372
Minsheng Bank 1 [Member]
Debt Instrument, Maturity Date Range, Start		Sep. 19, 2011
Debt Instrument, Maturity Date Range, End		Sep. 19, 2012
Debt Instrument, Interest Rate, Stated Percentage		8.20%
Short term loans		561,628
China Merchant Bank [Member]
Debt Instrument, Maturity Date Range, Start	Aug. 30, 2012	Jul. 25, 2011
Debt Instrument, Maturity Date Range, End	Aug. 29, 2013	Jul. 26, 2012
Debt Instrument, Interest Rate, Stated Percentage	6.30%	8.53%
Short term loans	3,952,500	3,960,000
Industrial and Commercial Bank Of China [Member]
Debt Instrument, Maturity Date Range, Start	Oct. 17, 2011	Oct. 17, 2011
Debt Instrument, Maturity Date Range, End	Oct. 17, 2012	Oct. 17, 2012
Debt Instrument, Interest Rate, Stated Percentage	8.87%	8.87%
Short term loans	1,581,000	1,584,000
Industrial and Commercial Bank Of China 1 [Member]
Debt Instrument, Maturity Date Range, Start	Sep. 25, 2012
Debt Instrument, Maturity Date Range, End	Sep. 24, 2013
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Short term loans	$ 1,581,000

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SEGMENT REPORTING

3 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 16 - SEGMENT REPORTING

The Company was organized into four main business segments based on location and product: Jinong (fertilizer production), Gufeng (fertilizer production), Jintai (agricultural products production) and Yuxing (agricultural products production). Each of the four operating segments referenced above has separate and distinct general ledgers. The chief operating decision maker (“CODM”) receives financial information, including revenue, gross margin, operating income and net income produced from the various general ledger systems to make decisions about allocating resources and assessing performance; however, the principal measure of segment profitability or loss used by the CODM is net income by segment. Jintai is in process of combining with Yuxing.

The following tables present a summary of our businesses and operating segments results. 

	Three months ended September 30,
	2012			2011
Revenues from unaffiliated customers:
Jinong	$	27,850,976		$	22,242,251
Gufeng		10,936,971			29,613,091
Jintai		-			1,198,887
Yuxing		724,793			48,365
Consolidated	$	39,512,740		$	53,102,594
Operating income :
Jinong	$	11,611,611		$	12,187,448
Gufeng		688,639			2,608,589
Jintai		-			10,459
Yuxing		62,129			(40,730	)
Reconciling item (1)		-			(705,036	)
Reconciling item (2)		(602,138	)		(781,167	)
Reconciling item (2)—stock compensation		(736,897	)		-
Consolidated	$	11,023,344		$	13,279,563
Net income:
Jinong	$	9,937,587		$	10,429,494
Gufeng		207,670			1,817,896
Jintai		10			10,501
Yuxing		55,092			(40,331	)
Reconciling item (1)		75			278
Reconciling item (2)		(1,339,034	)		(1,486,202	)
Consolidated	$	8,861,400		$	10,731,636
Depreciation and Amortization:
Jinong	$	2,035,853		$	575,478
Gufeng		845,363			789,592
Jintai		-			283
Yuxing		313,465			98,548
Consolidated	$	3,194,681		$	1,463,901
Interest expense:
Jinong	$	-		$	-
Gufeng		385,792			156,479
Consolidated	$	385,792		$	156,479
Capital Expenditure:
Jinong	$	4,343,939		$	765,309
Gufeng		46,153			24,341
Jintai		-			-
Yuxing		202,718			130,016
Consolidated	$	4,592,810		$	919,666
		As of			As of
		September 30, 2012			June 30, 2012
Identifiable assets:
Jinong	$	164,958,221		$	221,575,406
Gufeng		93,171,801			57,657,305
Jintai		4,599,779			6,670,058
Yuxing		37,448,008			1,851,745
Reconciling item (1)		227,885			280,445
Reconciling item (2)		(3,906	)		(3,906	)
Consolidated	$	300,401,788		$	288,031,053

(1) Reconciling amounts refer to the unallocated assets or expenses of Green New Jersey.

(2) Reconciling amounts refer to the unallocated assets or expenses of the Parent Company.

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INVENTORIES (Tables)

3 Months Ended

Sep. 30, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following:

	September 30,		June 30,
	2012		2012
Raw materials	$	7,221,229	$	6,009,686
Supplies and packing materials		610,839		565,559
Work in progress		304,235		127,140
Finished goods		20,523,411		21,900,299
Total	$	28,659,714	$	28,602,684

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ACCRUED EXPENSES AND OTHER PAYABLES (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
Payroll payable	$ 125,558	$ 127,149
Welfare payable	167,832	168,150
Accrued expenses	3,213,543	2,827,028
Other payables	1,720,377	1,045,010
Other levy payable	122,679	122,912
Total	$ 5,349,989	$ 4,290,249

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CONSTRUCTION IN PROGRESS (Details Textual) (USD $)	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2011
Construction In Progress	$ 171,704	$ 0	$ 0

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net income	$ 8,861,400	$ 10,731,636
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Issuance of common stock and stock options for compensation	866,899	557,192
Depreciation	2,802,291	1,132,399
Amortization	392,390	331,502
Changes in operating assets, net of effects from acquisitions
Accounts receivable	(5,815,442)	(6,387,104)
Other current assets	(457,831)	(235,450)
Inventories	(111,202)	(12,195,943)
Advances to suppliers	(2,800,991)	(1,213,600)
Other assets	22,862	(98,716)
Change in operating liabilities, net of effects from acquisitions
Accounts payable	(1,275,065)	1,316,676
Unearned revenue	(167,578)	97,505
Tax payables	1,898,972	2,461,823
Accrued expenses and other payables	1,063,143	1,493,111
Amount due to related parties	1,106,700	0
Net cash provided by (used in) operating activities	6,386,548	(2,008,969)
Cash flows from investing activities
Purchase of plant, property, and equipment	(4,421,106)	(828,035)
Increase in construction in progress	(171,704)	(91,631)
Net cash used in investing activities	(4,592,810)	(919,666)
Cash flows from financing activities
Repayment of loan	0	0
Proceeds from loans	561,255	8,010,765
Net cash provided by financing activities	561,255	8,010,765
Effect of exchange rate change on cash and cash equivalents	(135,799)	645,368
Net increase in cash and cash equivalents	2,219,194	5,727,498
Cash and cash equivalents, beginning balance	71,978,630	65,606,413
Cash and cash equivalents, ending balance	74,197,824	71,333,911
Supplement disclosure of cash flow information
Interest expense paid	385,792	148,101
Income taxes paid	$ 0	$ 7,664

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OTHER CURRENT ASSETS

3 Months Ended

Sep. 30, 2012

Prepaid Expense and Other Assets, Current [Abstract]

Other Current Assets [Text Block]

NOTE 5 - OTHER CURRENT ASSETS

Other current assets consisted of the following:

	September 30,		June 30,
	2012		2012
Advancement	$	756,788	$	299,526
Prepaid insurance		-		-
Total	$	756,788	$	299,526

Advancement represents advances made to non-related parties and employees. The amounts were unsecured, interest free, and due on demand. Prepaid insurance is related to the underwriting of the Company’s directors and officers insurance policy.

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STOCK OPTIONS (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2012
Number of Shares, Outstanding, June 30, 2012	115,099
Number of Shares, Grants	1,000,000
Number of Shares, Forfeited/Cancelled	0
Number of Shares, Exercised	0
Number of Shares Outstanding, September 30, 2012	115,099
Weighted Average Exercise Price, Outstanding, June 30, 2012	$ 14.66
Weighted Average Exercise Price, Granted	$ 0
Weighted Average Exercise Price, Forfeited/Cancelled	$ 0
Weighted Average Exercise Price, Exercised	$ 0
Weighted Average Exercise Price, Outstanding, September 30, 2012	$ 14.66
Aggregate Intrinsic Value, Outstanding, June 30, 2012	$ 0
Aggregate Intrinsic Value, Outstanding, September 30, 2012	$ 0

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OTHER CURRENT ASSETS (Tables)

3 Months Ended

Sep. 30, 2012

Prepaid Expense and Other Assets, Current [Abstract]

Schedule of Other Current Assets [Table Text Block]

Other current assets consisted of the following:

	September 30,		June 30,
	2012		2012
Advancement	$	756,788	$	299,526
Prepaid insurance		-		-
Total	$	756,788	$	299,526

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OTHER CURRENT ASSETS (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012
Advancement	$ 756,788	$ 299,526
Prepaid insurance	0	0
Total	$ 756,788	$ 299,526

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CONCENTRATIONS AND LITIGIATION

3 Months Ended

Sep. 30, 2012

Concentration and Litigation [Abstract]

Concentration And Litigation [Text Block]

NOTE 15 -CONCENTRATIONS AND LITIGIATION

Market Concentration

All of the Company's revenue-generating operations are conducted in the PRC. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, and by the general state of the PRC's economy.

The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among other things , the political, economic and legal environments and foreign currency exchange. The Company's results may be adversely affected by, among other things, changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation.

Vendor and Customer Concentration

 There were two vendors from which the Company purchased more than 10% of its raw materials for the fertilizer products for the three months ended September 30, 2012.

There was no vendor from which the Company purchased more than 10% of its raw materials for the fertilizer products for the three months ended September 30, 2011.

There was no customer that accounted over 10% of the total sales of fertilizer products as of three months ended September 30, 2012 and 2011.

Litigation

On October 15, 2010, a class action lawsuit was filed against the Company and certain of its current and former officers in the United States District Court for the District of Nevada (the "Nevada Federal Court") on behalf of purchasers of the Company’s common stock between November 12, 2009 and September 1, 2010.  On April 27, 2011, the court appointed the lead plaintiff and lead plaintiff’s counsel. On June 13, 2011, lead plaintiff filed an amended complaint, which adds several additional defendants and expands the class period to include purchasers who purchased our common stock between May 12, 2009 and January 4, 2011. The amended complaint alleges that the Company and certain of its current and former officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended, by making material misstatements and omissions in the Company’s financial statements, securities offering documents, and related disclosures during the class period..  The plaintiffs claim that such allegedly misleading financial statements inflated the price of the Company’s common stock and seek monetary damages in an amount to be determined at trial. Defendants moved to dismiss the amended complaint on October 7, 2011. Defendant’s motions were argued on October 2, 2012. On November 2, 2012, the Nevada Federal Court issued a decision dismissing the claims for violation of sections 11, 12(a)(2) and 15 of the Securities Act of 1933 as to all defendants and dismissing certain individual defendants from the complaint and allowing the claims for violations of section 10(b) and 20(a) of the Securities Exchange Act of 1934 to continue with respect to the Company and certain of the individual defendants.