Xi’an CGA group Founded in 2000 is one of the largest liquid organic fertilizer suppliers in China. The company by the end of June in 2008 fiscal year revenue of $22.6 million, up 48.9% compared to previous year.

** deferred acquisitions and capital operations to ensure ample cash flow**

The impact of the financial crisis has serious affected on the company's operations in capital markets, so that the work of financing and acquisitions must stop, said by Li.

"Although we have a lot of cashon hand, but during this special period, it is important to stick on conservative attitude under the relatively optimistic condition, the abundant cash flow is also very important." he said. In his opinion, the current situation enterprise guarantee abundant cash flow is very important. The company was considering some mergers and acquisitions about the industries who have ability to sale agricultural products orstrong regional control ability, but now had to suspend the process temporally.

"If capital market is getting better, we will continue to buy the dealers who meet the requirements about regional market." he stressed. At present, the priority work for company is doing some preparation works forthe capital market, but no substantial progress. In recent year and a half year, the company aimed to focus on building the new production line to ensure the stability of the new production line operation.

** appropriate long-term policy**

Liquid organic fertilizer industry in China is still relatively small industry. According to the estimate from Department of Agriculture, the entire industry's sales is about 100 billion yuan in 2006, weight about 20% of the fertilizer industry. There are more than 2000 enterprises in total in the industry, but only a few truly established the enterprise, the industry is still under the situation of unexpectable.

Li believes that the current policy requires to form a new rural development pattern, scale and industrialization, it is the perfect opportunity for liquid fertilizer industry, because of the scale and industrialization can reflect the effect of liquid organic fertilizer on agriculture.