China Organic Agriculture, Inc. (OTCBB: CNOA)

Dear Reader,

The changing of a CEO is an event usually met with consternation by the market. But often times the introduction of a new steward of the company's fortunes ... especially when it is an experienced new leader ... can provide a company with a burst of enthusiasm and new business prospects.  Clearly, the departure of an outgoing CEO can be seen as a detriment. But if the departing CEO has been surrounded by solid management, his skill set may vicariously be in place and his list of contacts available to them. This provides a 'jumping off' point, if you will, for the new CEO, expanding the company's business using his own acumen.

This transition is occurring for China Organic Agriculture, Inc. (OTC BB:CNOA) who has appointed a new CEO - Changqing Xu, an experienced leader with 15 years of experience in management and five years of senior level management outside of China.  Xu's lengthy management resume and specific expertise in the agricultural space may prove a compelling marriage for CNOA's expansion and acquisition efforts. See News Below

Breaking *NEWS* From CNOA

Press Release Source: China Organic Agriculture, Inc.
Thursday December 13, 8:30 am ET

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 Changqing Xu, has been appointed as the new Chief Executive Officer of China Organic Agriculture on December 6th. The Company has been under the oversight of Huizhi Xiao, Chairman for the last several months. New CEO Changqing Xu will add to the already strong leadership of the Company. Mr. Xu, MBA has 15 years of experience in management, and 5 years of senior level management overseas. Mr. Xu held positions such as CEO, COO, market manager and supervisor specializing in asset and resource restructuring as well as overseas expansion.

“We are very happy to announce the appointment of our new CEO, Mr. Xu. His extensive experience will only help us realize our goals. With his admirable leadership and guidance, we will be able to pursue more green food corporations as well as other acquisitions that will be beneficial for our Company and its shareholders,” said Chairman, Huizhi Xiao.

“We feel that this process will enable our Company to see even great growth in 2008 and beyond. We will expand our distribution channels as well as diversify our operations,” added Changqing Xu, the new CEO of China Organic.

About Changqing Xu, CEO
August 2002 to present: CEO of Hubei Tianjian Limited. Xu was in charge of the Company’s investment plans and policies as well as management and market expansion. During this time, he signed contracts for one of Tianjin’s subsidiary with local agricultural universities to improve rice grain quality and increased grain production as well as their quality; he also signed exclusive retail agreements in the Hubei and Hunan area as well.

1997-2002: COO of Shanghai Huaying Investments Limited. He was mainly in charge of market planning, internal control, financing, and asset restructuring. During this time, he successfully acquired Xiamen Dragonboat Group and has also completed other mergers and acquisitions.

1992-1997: Market manager and Managing Director of Shenzhen Fuxing Printing Company Limited. Imported production in from the US and increased production by 80%. He was also in charge of sales and promotions of the product and has expanded sales from Guangdong to nationwide. During this time he has also signed exclusive contracts with various vendors and retailers.

About China Organic Agriculture
China Organic Agriculture is among the largest producers of organic rice in China. CNOA controls all aspects of the process from seeds to planting and processing, R&D and sales. The Company also has an extensive sales network, located in the major cities in China.

CNOA has experienced significant growth since its inception in 2002, and as an agricultural company is exempt from taxes in China. CNOA has put solid plans in place to markedly expand revenues. The quality of CNOA’s products results in the ability to command and receive prices 15% higher than comparables.

CNOA has in excess of 6260 acres dedicated to green and organic rice. The irrigation system is fed from the Nen River, one of the last unpolluted rivers in China, and no chemicals or fertilizers are used in the process. The Company’s flagship brand, ErMaPao, has won several quality awards, holds the highest organic certification and is one of the most popular rice brands in the country.

For more information, please visit www.chinaorganicagriculture.com

Mission Statement
China Organic Agriculture, Inc. is firmly committed to increasing shareholder value through setting the next generation standard for quality organic food products in China and throughout the world.

Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of CNOA could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

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

Source: China Organic Agriculture
 

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.

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

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You may view a white paper by Murphy Analytics HERE

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.
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Recent News From CNOA

Press Release Source: China Organic Agriculture
Wednesday December 12, 8:30 am ET

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 will acquire Dalian Baoshui District Huiming Trading Limited. Huiming ranks in the top 20 in net income and top 50 in revenue in the food transportation industry in the northeast provinces. In 2006, revenue was 40 million USD and 3.7 million USD in net income (unaudited). For the first 6 months of 2007, revenues of $24 million, net income of $2.6 million USD, an increase of 20% from previous year (unaudited). The acquisition is pending due diligence and is expected to be finalized within the next few weeks.

Dalian Baoshui District Huiming Trading Limited was established in July 2001. The Company’s operations include food purchasing, local and international wholesale, transportation of food to enterprises, processing food products and distributing them throughout China. The Company 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 are well established enterprises, comprising 80% of Huiming’s total sales. Huiming has established a system for both local and international trade, distribution and sales, and processing. Its goal is the consolidation of its chain operations thereby solidifying their position in the food transportation industry. MORE

Press Release Source: China Organic Agriculture, Inc.
Tuesday December 11, 8:30 am ET

JILIN, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:CNOA - News), a growth-driven agricultural and products company leading China's organic foods revolution has been rated a strong buy with a short term target price of $5.94 and 12 month target price of $11.09 by Source Advisors, Inc. The full report is available at Source Advisor’s web site at http://investsourceinc.com/company/China-Organic-Agriculture-Inc/reports (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

The following items from the report were key in the investment analysis: Record $22M in revenues for Q3 2007, Record $7M in net earnings for Q3 2007, Year to date revenues total $28.8M, Year to date earnings total $9.6M. China Organic has also announced several recent developments which will add significantly to the Company’s Revenue and Net Income figures for 2007.

The report also includes a detailed Company Overview of China Organic’s business, details regarding the global rice market, the organic foods market and specifics on the Chinese markets. Other subjects covered include environmental impacts and economic issues as well as fundamental and technical analysis of China Organic’s stock.

About Source Advisors, Inc.
At Source Advisors, it is our stated mission to enhance the transparency of the small- and micro-cap markets through the assiduous use of sound, reliable and time-tested analytics. We bring to bear a combination of fundamental, technical, and structural benchmarks to elucidate individual small- and micro-cap companies. From there, we distribute the results of our research through an extensive distribution network. All of our work adheres strictly to applicable regulatory requirements and industry standard practice guidelines. We provide fee-based research, but the precise nature and amount of compensation is always fully disclosed in order to maintain the highest standards of objectivity.
MORE

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

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

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
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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

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.) 

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

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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