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Past Profile

eBlast
China Organic Agriculture, Inc. (OTCBB: CNOA)
December 10th, 2007.

 
 China Organic Agriculture, Inc. (OTCBB: CNOA)

Dear Reader,

The extraordinary demand created by China and its impact on the world economy is well-documented with soaring prices for crude oil and other vital resources.  Behind that industrial growth are burgeoning middle and upper classes, the fastest-growing segments of China’s population. This expanding group of consumers demands ever-higher standards of foods and services – perhaps none more so than rice, the most important source of energy for the nation’s 1.3 billion citizens.

Today's featured company, China Organic Agriculture, Inc. (OTCBB: CNOA) is ahead of the curve and has already established significant brand loyalty among the nation’s affluent with high-quality, fully-certified organic rice products that are already generating revenues and net profits from China’s estimated $13 billion green foods market.

Building shareholder value is the driving force behind China Organic Agriculture. Its senior management team continues to deliver on this mission by consistently increasing margins – currently over 40% – and by continuing to build upon its 100% yearly revenue growth for the trailing four years.
<<<Spacer>>>
    About China Organic Agriculture, Inc. 

China Organic Agriculture Inc. (OTCBB: CNOA) is among the largest producers of green and organic rice in China. Unlike other more rural competitors, COA controls all aspects of the process from seeds to planting and processing, R&D and sales. China Organic has already established significant brand loyalty among the nation’s affluent with high-quality, fully certified organic rice products that are already generating revenues and net profits from China’s estimated $13 billion green foods market.

China Organic Agriculture has experienced significant growth since its inception in 2002, and has put solid plans in place to markedly expand revenues and increase shareholder value. The Company is among the largest producers of green and organic rice in China with a combined output of 88,600 tons, commanding a 7.1% share of the green rice market and a 3.6% share of the organic rice market. China Organic's proprietary, 20,000 square meter processing factory has an annual production capacity of 30,000 tons. The Company also has an extensive sales network located in China's major cities.

While China Organic certainly plans to expand its markets within China, the experienced management team also intends to increase exports at a rate of 2:1 domestic versus international, to significantly increase sales and reduce market risk. Plans are currently underway to increase production capacity, supporting projected revenues for FY2007 exceeding $18 million with a net income of approximately $6.7 million.

China Organics has the business plan, the depth of management and the capital to realize its mandated goal of becoming the leading organic agriculture company within this explosive sector in China as well as globally within the next five years.

You may watch a video introduction to China Organic Agriculture, Inc. HERE



You may view a white paper by Murphy Analytics HERE
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    Today China Organic Commands 40% of The Chinese Organic Rice Market
INDUSTRY DRIVERS
  • Demand for rice, particularly organic, is far outstripping supply for the foreseeable future
  • Demographics in China shows a rapidly-growing, health conscious affluent upper class
  • Rice is priced within global free market forces (no government pricing controls)
  • Since 2002, China has moved from 45th to second in the world with respect to the number of hectares under organic management
  • No tax policy exists for agriculture in China
  • More land under organic horticulture than any other country

  • Leaders in the Agribusiness Marketplace Include:
    Agria Corporation (NYSE: GRO), Bunge Ltd (NYSE: BG), Syngenta (NYSE: SYT), CHS, Inc. (NasdaqGS:CHSCP), 
    Archer-Daniels-Midland Co. (NYSE: ADM), Corn Products International, Inc. (NYSE: CPO), Cal-Maine Foods, Inc. (Nasdaq: CALM)
    <<<Spacer>>>
        China Organic Agriculture Products

    China Organic’s flagship product is the “ErMaPao” brand of organic and green rice that is natural, healthy, tastes great and is irrigated by the Nen River, one of the last unpolluted rivers in China. No chemicals or fertilizers are used in the process. ErMaPao has also won several quality awards, holds the highest organic certification and is the most popular rice brand in the country.
     

    The ErMaPao brand has been recognized as "AA status" products by the China Green Food Development Center. In 2005, ErMaPao won the title of “Consumer Recognized Famous Brand in the Chinese Market” from the China Association for Quality Inspection, and in August 2006, ErMaPao was referred to as a “Famous Brand Product” at the 6th China Changchun International Agriculture and Food Fair.

    ErMaPao brand organic agricultural products are available in gift packaging and supermarket packaging. It is also available in a full rage of sizes, including 1KG, 2KG, 2.5KG, 5KG, 7.5KG and 10KG. The company only employs environmentally-friendly production methods with no harmful materials used during the shipping, selection, production, cleaning, storage, and packaging of products.
    <<<Spacer>>>
         Recent News From CNOA

    Press Release Source: China Organic Agriculture, Inc.
    Thursday December 6, 8:30 am ET

    China Organic Announces Agreement With Major Songyuan City Retail Distribution System

    Agreement Targeting Fast-Growing Middle Class Market Segment to Generate 
    $4 Million Within Calendar Year 2007

    JILIN, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:CNOA - News), a growth-driven agricultural and products company leading China's organic foods revolution, today announced that the Company has reached a milestone 3-year retail distribution agreement with Shunda Grain and Oil Company of Songyuan City, one of the largest cities in the northeastern province of Jilin.

    The agreement with Shunda Grain and Oil is the latest validation of CNOA’s stated strategic initiatives to expand market share by gaining new partnerships with major retail distribution system partners in China and other emerging economies in Asia.

    The agreement is expected to contribute revenues of 30 million Yuan, equivalent to approximately USD $4 million within calendar year 2007. The agreement states that Shunda Grain and Oil will become one of CNOA’s authorized retailers in the supermarket chain store industry, selling “ErMaPao” award-winning series of products to the Fuyu region with more than 2.8 million consumers. MORE


    Press Release Source: China Organic Agriculture, Inc.
    Wednesday December 5, 8:30 am ET

    China Organic Agriculture Expands on Guidance for Revenues and Profits Going Forward

    Company to Pursue Senior Exchange Listing; Continued Corporate Initiatives 
    Increasing Productivity at a Rapid Pace

    JILIN, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:CNOA - News), a growth-driven agricultural and products company leading China's organic foods revolution, today announced that its new business model would continue to produce strong growth through 2008 and beyond. Recently China Organic Agriculture announced a 500% increase in forecast revenues and an over 400% increase in forecasted net income. Several key sales agreements signed by the Company have led to the sharp increase in forecast income. This has allowed the Company to significantly increase production and get more of its flagship product, green and organic rice, to market quickly. The Company is firmly committed to expanding operations and increasing earnings and has already set in motion several initiatives to expand capacity and extend its reach into other fast-growing economies in Asia. Given the progress the Company has made, the Company has determined to seek a listing on a more senior exchange.

    “We are very comfortable and confident that our forecasted revenue and profit growth are right on target. At this time we are looking at several more initiatives that will allow our Company to continue a pattern of strong growth for several years to come. And, we expect to announce more positive developments in the coming weeks,” said Huizhi Xiao, Chairman of China Organic Agriculture. ”We are sure that our shareholders will be pleased with our current and future developments. It is our firm intention to move to a senior exchange such as AMEX or the NASDAQ. Our Company and its loyal shareholders will benefit even more once this occurs,” Mr. Xiao concluded. MORE


    Press Release Source: China Organic Agriculture, Inc.
    Monday December 3, 8:30 am ET

    China Organic Agriculture Forecasts Record Revenue and Earnings for 2007

    Company Forecasts Revenues and Earnings of Approximately $45 Million and $14 Million; Validates High Growth Business Model

    JILIN, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:CNOA), today increased revenue and earnings forecasts for 2007. The upwardly revised guidance projects revenues to increase to approximately $45 million for calendar year 2007, a 500% increase over the $9 million for the comparable period the previous year. The Company has also raised projected earnings to more than $14 million, an estimated $0.29 in earnings per share, for calendar year 2007, an increase of approximately 408% over the $3.43 million for the comparable period the previous year.  MORE
    a
    Management Team

    Chairman of the Board: Xiao Huizhi
    Xiao Huizhi currently serves as Board Chairman of Ermapao Green Rice Co. Ltd. As a Senior Agronomist, he has extensive experience in industrial operations management, integrating rice planting, processing and sales. An adept and dynamic leader, he possesses proven enterprise management leadership skills. While engaged in agricultural production management from 1985 to 1995, Xiao introduced superior rice varieties that enabled double-digit increases in grain output, resulting in the honor of being chosen as a "county-level model worker". From 1995 to 2001 he served as General Manager of Guangsha Construction Co., driving 100% profit growth with multiple projects chosen as "superior projects of city and county". In 2002, he founded Songyuan Ermapao Green Rice Co. Ltd. and vigorously promoted the planting of green rice, enabling a 30% output increase and a 60% sales income increase. Xiao Huizhi is a graduate of Jilin Agricultural University.

     
    CEO: Lin Jian
    Lin Jian has extensive experience in financing, operations and enterprise administration. Additionally, he has deep ties with China’s agriculture policy administration. He has proven himself as a highly-strategic leader and is well known and highly-respected in the industry. Lin Jian’s leadership has been a major component of China Organic Agriculture’s quick development, with the Company growing at more than 100% each year.

     
    CFO: Hu Xian Hua
    Hu Xianhua is a graduate of Jiangxi Finance and Economy Management Institute with an emphasis on Finance Accounting. With 10 years of experience as a C.P.A., he has a thorough knowledge of China’s accounting and finance system, local and state taxation law, and international accounting legislation. He is known for his advanced finance management capabilities. 

     
    Secretary: Zhao Ping
    The executive secretary of COA is Zhao Ping, a graduate of the China Communist Party School with a major in economic management with an occupational title of economic engineer. He is well-versed in secretariat work in China and has profound knowledge in the standardization of the Company’s intra work flow.

     
    Independent Director: Jin Zhouzhe
    Jin Zhouzhe, a graduate of Yanbian Agriculture College, is an accredited senior agronomist in the Songyuan Agricultural Specialist Group of Jilin Province and has been an independent director and consultant to Songyuan Ermapao Green Rice Co. Ltd. since 2005. With a career beginning in the mid-1960's, Jin Zhouzhe has been a pioneer in the field of rice breeding with several acclaimed publications and awards for his work in developing and popularizing new, high quality breeds. In addition, he has received numerous awards and honors for his leadership and outstanding achievments in science and technology

     
    Independent Director: Ma Jingyong
    Mr. Ma Jingyong is a professor and researcher at Jilin Agriculture University where he studies new rice breeds with high quality, high yield and disease resistance. Since the beginning of 2005 he has been a consultant to Ermapao Green Rice Co. Ltd and more recently an independent director of China Organic Agriculture. Ma Jingyong has long been engaged in the science of rice breeding and has made adward-winning contributions in new, award-winning, high-quality, high-yield rice breeds.
    <<<Spacer>>>
        Financial Highlights
    KEY INVESTMENT HIGHLIGHTS
  • First-half 2007 sales of $6.4 million, up 60% vs. the same period in 2006, primarily due to increased production capacity and a growing customer base
  • First-half 2007 net income: $2.4 million, or 42% of sales
  • FY 2006 sales: $9 million, an increase of $2.4 million compared to FY 2005.
  • Projected FY2007 sales: $18 million
  • Doubling of sales projected by 2009
  • Profit margins exceed 40 percent and rising as a result of increased sales consistently exceeding cost of sales
  • ErMaPao name is well established as the most popular organic rice brand in China
  • Building shareholder value is the driving force behind for China Organic Agriculture. Its senior management team continues to deliver on this mission by consistently increasing margins – currently over 40% – and by continuing to build upon its 100% yearly revenue growth for the trailing four years.

    For the first six months of 2007, the Company’s revenues were approximately $6.4 million, a 60% increase over the same period in 2006. Six-month earnings were approximately $2.4 million, a 58% increase over the first half of 2006. Gross profit margins for the first six months of 2007 grew to 43.9%. (Note: numbers above reflect the six-month period beginning January 1, 2007 and ending June 30, 2007.) 
     

    China Organic feels confident that 2007 will continue to be a record setting year. China Organic’s forecasted 2007 calendar-year revenues are expected to reach approximately $18 million, a 100% increase over the comparable period in 2006. The Company has also projected net income of approximately $6.7 million, representing an approximate 95% increase over the $3.4 million reported for 2006. China Organic has set forth a solid, high-growth business model to continue making a significant impact in the growing market for green foods, which has grown to $13 billion, equal to the U.S. market for organic foods.




    Recent Price
    $3.90
    *
          52-Week Range
    0.51 - 4.00
    *
    Average Volume (3 mo)
    99,020
        *
          Estimated Market Cap
          188,668,520.16 as of Dec 6, 2007
        *
          Outstanding Shares
          51,548,776 as of May 10, 2007

     For quotes, news, Investor Fact Sheets, videos and more, please visit CNOA's
    Shareholder Information Portal

    <<<Spacer>>>
        Company Contacts 

    Corporate Contact:
    China Organic Agriculture
    Steve Wan
    Tel. 310-441-9777
     stevewan@chinaorganicagriculture.com

    Financial Communications Contact:
    Trilogy Capital Partners
    Ryon Harms
    Tel. 800.592.6067
     ryon@trilogy-capital.com


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