Archive for the ‘China Organic Agriculture Inc. CNOA’ Category

China Organic Agriculture, Inc. (CNOA.OB) Announces Financial Results for First Quarter

Tuesday, May 25th, 2010

China Organic Agriculture, Inc. announced yesterday their financial results for the first quarter ended March 31, 2010. First Quarter 2010 results include revenue of $32.4 million. This represents a decrease from $36.7 million in the first quarter of 2009. Gross profit was $8.2 million, compared to $8.4 million in the first quarter of 2009. Net income attributable to the Company’s shareholders in the first quarter of 2010 was $3.0 million.

Fully diluted earnings per share in the first quarter of 2010 were $0.04. This is in comparison to $0.05 in the first quarter of 2009. China Organic Agriculture, Inc. acquired 60 percent of the stock of Changbai Eco-Beverage Co., Ltd. for $10.3 million, on March 23, 2010. As the Company acquired Changbai Eco-Beverage Co., Ltd.’s new blueberry product segment, its contribution to the Company’s first quarter revenues was limited.

The gross profit margin for the first quarter of 2010 was 25.4 percent compared to 22.8 percent in the same period of the prior year. The improvement in gross profit margin largely offset the decline in revenue. The improvement to their gross profit margin was in part attributable to China Organic Agriculture, Inc.’s decision to trade in beans and soybeans more actively. Beans and soybeans have better margins.

Concerning their financial condition, as of March 31, 2010, China Organic Agriculture had cash and cash equivalents of $25.1 million. This is up from $18.5 million as of December 31, 2009, excluding restricted cash. Working capital as of March 31, 2010 was $62.7 million, compared to $47.5 million as of March 31, 2009.

China Organic Agriculture, Inc. primarily engages in the acquisition, trading, and distribution of agricultural products. Headquartered in Liaoning Province in China, the Company consists of several subsidiaries including Ankang Agriculture, Dalian Huiming, and Bellisimo Vineyard.

The Company is a diversified company and they mainly engage in green and organic rice processing and distribution, food provision, mountain specialty trading, and production and marketing of ice wine and red wine. They distribute their products throughout China to meet the rapidly growing demand in healthy food.

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China Organic Agriculture Inc. (CNOA.OB) is “One to Watch”

Tuesday, January 13th, 2009

With offices in Los Angeles, California, and Liaoning, China, China Organic Agriculture Inc. is an active trader of agricultural products in China. Trading on the OTCBB, their mission is to capitalize on China’s growing economy with the ability to acquire upscale products. China Organic Agriculture, Inc. is engaging in the organic foods revolution. They are one of the largest producers of green and organic rice in China.

Founded in 2002, China Organic Agriculture controls all aspects of the rice production process from seeds to planting, as well as, research and development and distribution. China Organic Agriculture has established their brand loyalty among China’s affluent population with high-quality, fully certified organic rice products. China Organic Agriculture is also working to establish broad distribution of several agricultural, food, and related premium products. They have an extensive distribution network throughout major cities, including Beijing, Shanghai, and Nanjing.

The Company has their 20,000 square meter processing factory, and they have a 7.1 percent share of China’s green rice market and a 3.6 percent share of the organic rice market. The Company’s total combined output is 88,600 tons. For the twelve months ended December 31, 2007, the Company’s revenue was $44.5 million, a 390 percent increase over $9.0 million for the comparable period of 2006. For the twelve months, ended December 31, 2007 net income was $13.5 million, a 300 percent increase over $3.4 million for the same period in 2006.

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China Organic Agriculture, Inc. (CNOA.OB) Releases In-Depth Audio Interview

Monday, December 1st, 2008

China Organic Agriculture, Inc. (CNOA.OB), a global diversified food products company engaged in the distribution and production of premium and natural foods, recently announced that Steve Wan, the U.S. vice president for China Organic Agriculture, released an audio interview with Bob Beaty, the executive vice president of China America Financial Communications Group.

As an international diversified premium food products distributor capitalizing on China’s burgeoning domestic consumer demand, China Organic Agriculture’s U.S. vice president discusses the company’s recently released guidance, which forecasts revenues for 2008 at $113 million, a significant jump from $44 million for 2007. The company also predicts that earnings per share for fiscal year 2008 will total $0.29.

The interview also details the sale of the ErMaPao division, as well as the recent acquisition of Dalian Huiming, a major agricultural trading company that generated revenues of $40.2 million and net income of $2.7 million during fiscal year 2007. In addition, Mr. Wan discusses the transformation of China Organic from an agricultural company to a purveyor of high-end products, such as California wine and natural foods specifically targeted at the rapidly growing and affluent middle class in China and throughout Asia. The full interview is available on China Organic Agriculture’s website:

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China Organic Agriculture Inc. (CNOA.OB) Posts Impressive Q3 Results, Fueled by Distribution Expansion and Strategic Acquisition

Wednesday, November 12th, 2008

China Organic Agriculture Inc. (OTCBB: CNOA) is an aggressive agricultural products trader in China – the company has designed its business plan to allow it to capitalize on China’s growing economy and consumer sector. The company today announced its operating results for the third quarter and nine months ended September 30, 2008, posting triple-digit growth in net sales and net income.

China Organic attributes the increases to expansion of distribution operations and its decision to purchase rice from other rice producers and then selling it to retailers and wholesalers. Net sales for the third-quarter of 2008 were $47.2 million, up 111 percent from the $22.4 million posted for the third quarter of last year. For the nine-month period, net sales were $58.4 million, up 103 percent as compared to $28.8 million for the same nine months of 2007.

The company reported net income of $8.3 million for the third quarter of 2008, compared to net income of $7.2 million for the third quarter of 2007. Earnings per share maintained its level of 14 cents per diluted share compared with the third quarter of 2007 because of a proportionate increase in the weighted average number of shares between the two periods.

China Organic also attributes the positive results to positive harvest results, as well as the growth of its new Ankang subsidiary, which posted $53.9 million in sales.

“Due to the timing of the harvest season, the third and fourth quarters are historically China Organic’s most impressive. This year we did not disappoint,” Jinsong Li, CEO of China Organic Agriculture stated in the press release. “With revenue of topping $47 million in the third quarter, we more than doubled our sales over the comparable period in 2007. The fact that 98% of third quarter revenue came from China Organic’s relatively new, but fast-growing Ankang subsidiary is a substantial achievement.”

The company noted the recent appointment of Li as CEO, as well as the recently signed agreement to trademark Xiaoxinganling, an organic name brand in northeast China, and the distribution of several premium food products, including soybeans, kidney beans and mushrooms.

The company also completed its acquisition of Dalian Huiming Industry Ltd, in which China Organic acquired 60 percent of Dalian Huiming for $10.6 million in an all cash transaction. The acquisition allowed the company to diversify its product offerings and to move forward in China’s competitive market.

“With the finalization of Dalian Huiming and our successful acquisition of the ‘Xiaoxinganling’ brand name, China Organic will diversify into a variety of different agricultural products including soybeans, corn, mushrooms and kidney beans. The fourth quarter will bring together these multiple revenue streams as we integrate them into our operations. China Organic will continue to increase value for our shareholders as we strive to be one of the foremost leaders in premium and natural food products in China and Asia’s agricultural industry,” Li Stated.

China Organic Agriculture Inc. (CNOA.OB) Announces Completion of Strategic Acquisition to Gain Foothold in China’s Agricultural Market

Friday, October 31st, 2008

China Organic Agriculture Inc. (OTCBB: CNOA) trades agricultural products in China and has established a business plan that will enable it to capitalize on China’s growing consumer class. The company today announced the $10.6 million acquisition of 60% of Dalian Huiming Industry Ltd., a major agricultural trading company with a wide distribution, which will allow China Organic to boost its distribution capabilities.

“The completion of this acquisition marks an important milestone in the history of China Organic Agriculture,” Jinsong Li, China Organic’s CEO stated in the press release. “We’re now able to focus on the successful integration of Dalian Huiming into CNOA’s operations, allowing us to expand distribution channels and diversify our product offerings.”

As one of the top-tier agricultural trading companies in the Northeast provinces of China, Dalian Huiming focuses on China’s major agricultural products, including soybeans, corn and cereal crops. The company’s success helped it achieve revenue of $40.2 million for 2007 and net income of $2.7 million, four times that of 2006.

Through the acquisition, Organic Agriculture anticipates benefiting from Dalian Huiming’s position in China’s consumer market through the expansion of its line of products and operating efficiencies.
“The highly synergistic acquisition of Dalian Huiming dovetails perfectly into our expanded business model,” Li stated. “We believe our plans to distribute soybeans and mushrooms under the recently acquired ‘Xiaoxinganling’ brand name will greatly benefit from China Organic’s enhanced reach and influence through Dalian Huiming.”

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China Organic Agriculture Inc. (CNOA.OB) Adds California Vineyard and Premium Wines to its Product Mix

Tuesday, July 29th, 2008

There are many aspects of marketing that Chinese companies are just now coming to understand. As these intricacies of selling become more apparent to the controlled expansion of the Chinese marketplace, companies once stifled are now taking advantage. In the past, there may not have been a need for many of these intricacies, but there now appears to be room to take advantage as China’s middle class begins to wield buying power. An investor who can find a Chinese company that understands how to appeal to this class with commonplace Western marketing tactics is an investor who will profit handsomely.

China Organic Agriculture Inc., an organic foods grower, distributor and marketer, works to provide the Chinese market with high-value food products directed primarily at the rising Chinese middle-class. The company is currently following a high-growth strategy through its leading position in growing and distributing green rice/organic rice (7.1% overall rice market share, 3.6% organic green rice market share) and imported, high-quality wines.

Food production and distribution in China is a large task in the best of times; but the company appears to be succeeding and expanding in its quest to become a leader. Largely, the company sees its path as one of providing high-value products to those in the marketplace willing to spend for quality and choice. To this end, the company has recently acquired Bellisimo Vineyards, a California wine property. It believes that this acquisition will allow it to take advantage of the Chinese consumer’s desire for imported, high-quality wines in a Chinese wine market that is quickly outpacing wine markets around the world. Private labels will constitute a portion of the company’s strategy, while highlighting California wines as a quality brand will be another.

Recent news regarding rice supplies around the world has not affected the company significantly. Even though the company’s ErMaPao products are a leading store brand within China, supply and distribution has not been a large issue – although it is there. China organic has put in place a series of distribution agreements that enable it to grow and distribute through major cities and provinces throughout most of China, and the company continues to find wide-spread acceptance of its products.

The company is very aware of the standards associated with providing quality organic products to an astute customer base. To this end, it has received organic certification and located its primary rice growing locations (6,200 total acres) where standards can be controlled and maintained. Its organic rice, for example, is grown in land situated near one of the few remaining unpolluted rivers in China. China Organic Agriculture controls its products from planting to sale, and has profited by this policy since its inception. If past successes are an indication, profit growth is likely as the company fine-tunes its high-growth strategy and targeting of a wealthy middle-class.

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China Organic Agriculture Inc. (CNOA.OB) Continues Expansion Plans in a Solid and Growing Domestic Chinese Market

Thursday, June 5th, 2008

Investing in the commodities markets is always a risky adventure in the best of times. Add in a few bad years or weather or economic conditions, and the scenario can get either incredibly profitable or disastrously damaging. Add to that scene a commodity that the world considers its staple food source and anything can happen, unless one has positioned themselves to account for the most improbable profit situations.

China Organic Agriculture Inc., an organic rice grower and wholesale marketer, serves the domestic Chinese rice markets through company-leased rice properties, buying from family-leased rice operations, buying on the open market, and purchasing from third-party growers on fixed contracts. Although there may be issues several years out, the company has effectively shielded itself from rice speculators through these fixed contracts and leasing/contracting a majority of its production/facilities.

The company has now found itself in a positive long-term position after the leasing, through the central government, of 1,600 acres of productive rice-producing land. It engages local labor at these sites and makes use of family rice growing collective units located on 4,660 acres of land – with full-use rights granted by the government. Where available, the company also buys from producers that are able to meet its stringent requirements for organic labeling.

Current rice supply levels are of concern across the globe. The company, however, operates in and serves only China. This will give it a certain advantage for stable sales and a reliable supply base (if it can stem black market theft and speculators.) There may be a certain amount of pressure from outside China to supply rice to other regions of the world. China, however, is fairly stringent in protecting its self interests in this regard and will likely resist overtures from outside its borders.

Whichever direction the world’s rice markets move, China Organic Agriculture is positioned nicely to take advantage of a growing middle-class with money to spend on a better grade of rice. It is also positioned to take advantage of a large customer base that has a long history with regard to rice as a staple.

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China Organic Agriculture, Inc. (CNOA.OB) Announces Acquisition of Food Transportation Company

Thursday, December 13th, 2007

China Organic Agriculture, Inc (CNOA.OB), a leading organic food company, announced that the company is to acquire Dalian Baoshui District Huiming Trading Limited. Huiming is a growth driven company that has demonstrated increasing net income and revenue during previous fiscal periods. In particular, revenue totaled $40 million and net income totaled $3.7 million during fiscal year 2006. For the first 6 months of 2007, revenues totaled $24 million and net income totaled $2.6 million; representing an increase of 20% from the previous year.

Dalian Baoshui District Huiming Trading Limited was first established in July 2001. The Company is focused on food purchasing, local and international wholesale distribution, transportation of food to enterprises, and processing food products. Huiming also manages the distribution of beans, corn, and processed food products in areas such as Liaoning Province, Jilin Province, Heilongjiang Province, Sichuan Province, Fujian Province, Beijing and Shanghai. Huiming’s main customers, established entities, compromise 80% of Huiming’s total sales.

Huizhi Xio, China Organic’s Chairman, stated, “The completion of this acquisition allows us to expand our distribution channels and diversify our operations from a homogeneous product – rice. Our Company will continue to target and acquire other food industry corporations to remain competitive and bring more product experience compared to other companies in the industry.”

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China Organic Agriculture, Inc. (OTCBB: CNOA) Completes Acquisition to Ramp-up Competition

Wednesday, December 12th, 2007

China Organic Agriculture (OTCBB: CNOA) is an agricultural and products company driven by growth and acquisition, and is one of the largest producers of organic rice in China. China Organic has established an extensive sales network among the major cities in China and has experienced significant growth in its five years of operation. The company has more than 6,260 acres of land dedicated to green and organic rice irrigated from the Nen River, one of the few unpolluted rivers in China.

The company recently announced its intentions to acquire Dalian Baoshui District Huiming Trading Limited – a company ranking in the top 20 in net income and 50 in revenue in the food transportation industry in northeast China.

The numbers across the board are an obvious reason China Organic sees the acquisition as a step forward. In 2006, Huiming posted US$40 million, and net income of US$3.7 million. For the first six months of 2007, revenue was reported at US$24 million, and US$26 million in net income – a 20% rise from the year prior.

“The completion of this acquisition allows us to expand our distribution channels and diversify our operations from a homogeneous product – rice,” China Organic Chairman Huizhi Xiao stated in a press release. “Our company will continue to target and acquire other food industry corporations to remain competitive and bring more product experience compared to other companies in the industry.”

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China Organic Agriculture, Inc (CNOA.OB) Announces Retail Agreement to Further Expand Distribution Channels

Monday, December 10th, 2007

China Organic Agriculture, Inc. (CNOA.OB) announced that the company has reached a 3 year retail distribution agreement with Tongda Grain and Oil Company. This agreement is expected to generate revenues of 30 million Yuan, around USD $3 million, within the calendar year 2007. This agreement is the latest measure of China Organic’s stated strategic initiative to expand market share by gaining new partnerships with retail distribution system in China and other emerging industries in Asia.

According to the agreement, Tongda Grain and Oil will become one of CNOA’s authorized retailers. As a result, Tonga will offer the company’s “ErMaPao” products to over 7 million consumers in the Songyuan City, Siping City, and Baicheng City areas.

Huizhi Xia, Chairman of China Organic Agriculture, stated, “China Organic continues to expand revenues and earnings from an ever-growing list of agreements with some of China’s largest retail distribution systems. This agreement will help to continue our growth as we look to move forward with expanding our distribution systems and broaden our share of the rice market in Songyuan City. With the recent announcements of agreements, we look forward to reaching our target revenue goals for 2007.”

After this news was released, China Organic’s stock rose 5.90%. Specifically, an above average 443,000 shares were traded, whereas the daily average is only 99,000 shares. This significant surge in volume contributed to the overall share price increase, and the increased volume could continue within the upcoming trading sessions.

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China Organic Agriculture, Inc. (CNOA.OB) Upgraded by International Stock Targets

Wednesday, December 5th, 2007

International Stock Targets announced a “Strong Buy” recommendation for China Organic Agriculture (CNOA.OB). In addition to upgrading their overall buy/sell recommendation, International Stocks Targets have also specified a one month and six month price target of $5.00.

China Organic Agriculture, Inc recently announced increase revenue and earnings forecasts for 2007. China Organic expects revenues to total an upwards of $45 million for calendar year 2007, a 500% increase over the $9 million for the comparable period the previous year. Furthermore, the company has also raised earnings to more than $14 million, or an estimated $0.29 in earnings per share for calendar year 2007. This figure represents an increase of approximately 408% over the $3.43 million reported during the comparable period the previous year.

This new guidance represents an increase of corporate initiatives to increase productivity, as well as shareholder value. The updated financial forecast follows CNOA’s recently announced production and distribution partnerships with Nanjing Suguo Supermarket, Beijing Hualian Supermarket, Changchun Huaxing Ltd, Changchun Qinghai Oil and Grain Ltd, Songyuan Oil and Grain Ltd. All of these new contracts are expected to generate a total of $21 million in revenues for this current period.

Huizhi Xiao, Chairman of China Organic, stated, “These strategic sales agreements help China Organic purchase and process green and organic rice with higher margins and also enables us to increase our production significantly in a short amount of time. In addition, these new contracts better ensure the successful sales of our newly produced rice, helping us achieve our sales goals and generating increased returns and value for our shareholders. We are very pleased with our projected revenues for this calendar year and expect another strong year of sustainable growth in the years to come.”

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