The endophytic fungal strain KJ-1 was isolated from the symptomless tissue of stem bark of M. azedarach L., which was collected at Yangling, Shaanxi province, China, in August 2011. The producing strain was cultured on a plate of potato dextrose agar (PDA) medium at 28 ± 0.5 °C for 5 days. Then one piece (approximately 7 mm2) of mycelium was inoculated aseptically to 50 mL Erlenmeyer flasks each containing 20 mL of PD liquid medium, and the seed liquids were incubated at 28 ± 0.5 °C for 3 days on a rotary shaker at 120 rpm. A suspension (100 µL) of the seed liquid was inoculated aseptically to 500 mL Erlenmeyer flasks each containing 60 g of rice and 90 mL of distilled water. There were 300 flasks in total, and the flask cultures were incubated at 28 ± 0.5 °C for 4 weeks.