LE GAGA HOLDINGS LTD ADR 
By · Profit for the period decreased by RMB10.9 million, from RMB23.5 million for the three months ended June 30, 2010 to RMB12.6 million (US$2.0 million) for the three months ended June 30, 2011.
· Adjusted profit for the period2 (non-IFRS measure) increased by RMB11.6 million, or 39.5%, from RMB29.4 million for the three months ended June 30, 2010 to RMB41.0 million (US$6.3 million) for the three months ended June 30, 2011. A reconciliation of the adjusted profit for the period to profit for the period determined in accordance with IFRS was set forth in Appendix V.
· Adjusted EBITDA3 (non-IFRS measure) increased by RMB16.2million, or 40.5%, from RMB40.0 million for the three months ended June 30, 2010 to RMB56.2 million (US$8.7 million) for the three months ended June 30, 2011. A reconciliation of the adjusted EBITDA to profit for the period determined in accordance with IFRS was set forth in Appendix VI.
1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.4635 to US$1.00, the effective n oon buying rate as of June 30, 2011 in The City of New York for cable transfers of RMB as set forth in H.10 weekly statistical release of the Federal Reserve Board.
2 Defined as profit for the period before the net impact of biological assets fair value adjustment and further adjusted to exclude the effects of non-cash share- based compensation and offering expenses charged to the income statement.
3 Defined as EBITDA (earnings before net finance income (costs), income tax expense, depreciation and amortization), as further adjusted to exclude the effects of non-cash share-based compensation, the net impact of biological assets fair value adjustment and offering expenses charged to the income statement.
Le Gaga First Quarter FY 2012 Earnings ReleaseAugust 23, 2011· Basic and diluted earnings per share was RMB0.55 cents (0.09 US cents) and RMB0.53 cents (0.08 US cents), respectively, for the three months ended June 30, 2011. Basic and diluted earnings per ADS4 was RMB27.5 cents (4.25 US cents) and RMB26.5 cents (4.10 US cents), respectively, for the three months ended June 30, 2011.· Cash generated from operating activities increased by RMB37.7 million, or 84.2%, from RMB44.8 million for the three months ended June 30, 2010 to RMB82.5 million (US$12.8 million) for the three months ended June 30, 2011.
· Revenue-per-mu increased 36.8% from RMB4,420 for the three months ended June 30, 2010 to RMB6,046 for the three months ended June 30, 2011.
· Production output increased 42.1% from 29,267 metric tons for the three months ended June 30, 2010 to 41,592 metric tons for the three months ended June 30, 2011. Production yield (production output per mu) increased 29.2% from 1.6 metric tons for the three months ended June 30, 2010 to 2.0 metric tons per mu for the three months ended June 30, 2011.
· Total arable land as of June 30, 2011 was 21,952 mu (1,463 hectare), representing an increase of 1,550 mu compared to March 31, 2011, and an increase of 3,102 mu compared to June 30, 2010.
· Total greenhouse area as of June 30, 2011 was 7,150 mu (477 hectare), representing an increase of 371 mu compared to March 31, 2011 and an increase of 3,209 mu compared to June 30, 2010. Greenhouse land area as a percentage of total arable land decreased from 33.2% as of March 31, 2011 to 32.6% as of June 30, 2011.
4 American depositary shares, which are traded on the NASDAQ Global Select Market, each represents 50 ordinary shares of the Company.
Le Gaga First Quarter FY 2012 Earnings ReleaseAugust 23, 2011Mr. Shing Yung Ma, the Chairman and Chief Executive Officer of Le Gaga, commented, “We are very pleased with our performance in the first fiscal quarter. Our farm base development is on track with various construction projects at different farm bases. Most of the construction activity in our new Xianyou and Putian farm bases is approaching completion and the farm bases will be ready for solanaceous production during the off-season winter months. We are also working on a number of initiatives to further improve our greenhouse vegetable production model. Training and development of our farm managers remains a priority for us. Furthermore, we have recently added a new independent director to our board of directors and established a corporate governance and nominating committee.”Mr. Auke Cnossen, the Chief Financial Officer of Le Gaga, added, “As a result of our increasing greenhouse coverage, solanaceous products accounted for a larger percentage of total production in the first fiscal quarter and revenue per mu has increased further. Solanaceous vegetables typically have higher ASP compared to lower value leafy vegetables and are particularly well suited for greenhouse production. More solanaceous production increases our annual productivity but also increases the seasonality of our revenues, with higher production during the winter months. More land preparation for solanaceous planting activities during August and September may result in lower sales in the second fiscal quarter compared to other quarters. Furthermore, we continue to see land rental rates for new land increase at a rapid pace. This trend further validates our focus on increasing productivity, as measured in revenue per mu, through our greenhouse business model.”
