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China
Organic Agriculture Inc., (OTCBB:CNOA)
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UPDATE ** Breaking
News ** UPDATE ** Breaking
News
China Organic Agriculture, Inc. (OTCBB:CNOA) just announced a
significant joint venture with a china-based wine company, once again placing
CNOA in the right market at exactly the right time. While there are currently
600 million urban Chinese, that number is expected to grow to over 1 billion
by 2020. The burgeoning Chinese middle class now includes more than 200
million people and is growing rapidly. Given the growing affluence of
China’s premium food products consumers, China Organic’s management believes
that the division has the potential to deliver significant revenues for
the next several decades.
China has been labeled as the sleeping giant of the wine industry.
Consumption of wines, especially foreign wines, has increased 50 percent
from 2000-2005 and looks to be exceeding that growth by a further 70 percent
for the balance of the decade. Demand is growing rapidly and supply of
foreign wines is extremely tight.
See Breaking *NEWS*
below
In Asia, it is estimated that organic retail sales now exceed $1
billion and China is the Asian country with the largest area of organic
certified land. In China, there’s a big incentive to make that land
pay off; organically.
ALSO - See our Comprehensive StockUpTicks Profile HERE
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Breaking *NEWS*
from China Organic Agriculture |
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Press Release Source:
China Organic Agriculture, Inc.
Friday December
5, 2008, 5:40 pm EST
China Organic Agriculture Announces
Joint Venture with
Premium Wine Producer East Star
Wine Company
LOS ANGELES &
LIAONING, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:
CNOA - News), an international diversified premium food products company
capitalizing on China's burgeoning domestic consumer demand, today announced
a Chinese-Foreign equity joint venture with China-based Xinbin Manchu Autonomy
County East Star Wine Company Ltd.
The joint venture, to
be branded Asia Star Ice Wine Company Ltd., will market and sell premium
and specialty ice wines through CNOA’s distribution subsidiary, Dalian
Ankang. Initial output of both premium wines and ice wines are projected
at approximately 2,000 tons. China Organic will own 60% of the new entity.
China, Canada, Germany
and Austria are the only countries in the world possessing the unique climate
required to produce ice wine, which results from the harvesting and processing
of a specific type of grape and consistent temperatures below -10 degrees
Celsius.
“Asian demand for ice
wine accounts for 60% of Canada’s top ice wine exports since 2004,” said
Jinsong Li, Chief Executive Officer of China Organic Agriculture. “Through
this relationship, we believe we can capture a significant portion of the
rapidly growing domestic Asian market for luxury ice wines as well as other
high quality offerings in several closely-related categories.”
The core activities of
the newly formed joint venture company are expected to include the processing
and distribution of red wine, ice wine, blueberry ice wine, and blueberry
drinks and the processing and distribution of grapes and blueberries.
The Asia Star joint venture
is characteristic of the type of acquisition or business relationship that
can provide opportunities for CNOA to achieve a significant market share
in the distribution and sale of premium wines in China.
While there are currently
600 million urban Chinese, that number is expected to grow to over 1 billion
by 2020. The burgeoning Chinese middle class now includes more than 200
million people and is growing rapidly. Given the growing affluence of China’s
premium food products consumers, China Organic’s management believes that
the division has the potential to deliver significant revenues for the
next several decades.
China has been labeled
as the sleeping giant of the wine industry. Consumption of wines, especially
foreign wines, has increased 50 percent from 2000-2005 and looks to be
exceeding that growth by a further 70 percent for the balance of the decade.
Demand is growing rapidly and supply of foreign wines is extremely tight.
Recent guidance released
by CNOA evidences the growth potential into fiscal 2009 and beyond:
*
Q4 2008 revenue $54 million versus $15.7 million Q4 2007
*
Full year 2008 revenue $113 million versus $44.5 million FY 2007
*
Q4 2008 net income $11 million versus $3.9 million Q4 2007
*
Full year 2008 net income $20 million versus $13.5 million FY 2007
*
Q4 2008 EPS $0.15. Full year 2008 EPS $0.29
The above figures include
our recent $8.7 million sale of our ErMaPao rice division as well as the
October 2008 acquisition of Dalian Huiming, a major agricultural trading
company with fiscal 2007 revenues and earnings of $40.2 million and $2.7
million respectively.
About China Organic
Agriculture
China Organic Agriculture
is a high growth international food products company capitalizing on China’s
burgeoning domestic demand for premium products due to an expanding class
of consumers with the ability to acquire premium food products.
The Company has developed
an extensive distribution network throughout China including Beijing, Shanghai
and Nanjing. The Company is positioned to leverage this network to increase
market penetration with broad distribution of agricultural, food and related
premium products. The Company has experienced significant growth since
its inception in 2002 and continues to implement a number of strategic
initiatives to further expand revenues and earnings. For more information,
please visit: www.chinaorganicagriculture.com.
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements. Forward-looking statements
include, but are not limited to, statements concerning future acquisitions,
estimates of, and increases in, production, cash flows and values, statements
relating to the continued advancement of China Organic Agriculture’s products
and other statements which are not historical facts. When used in this
document, the words such as "could," "plan," "estimate," "expect," "intend,"
"may," and similar expressions denote forward-looking statements. Although
China Organic Agriculture Inc. believes that its expectations reflected
in these forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual results
will be consistent with these forward-looking statements. Important factors
that could cause actual results to differ from these forward-looking statements
include, but are not limited to, those set forth in our reports filed with
the Securities and Exchange Commission, together with the risks discussed
in our press releases and other communications to shareholders issued by
us from time to time, such as our ability to raise capital as and when
required, the availability of raw products and other supplies, competition,
the costs of goods, government regulations, and political and economic
factors in the People's Republic of China in which our subsidiaries operate.
Contact:
China Organic Agriculture,
Inc.
Steve Wan, 310-441-9777
stevewan@chinaorganicagriculture.com
or
Kate Ou, 646-200-6322
kateou@chinaorganicagriculture.com
or
China America Financial
Communications Group
Darren Minton, 212-823-0523
chinaorganic@cafcg.com
Source: China Organic
Agriculture, Inc.
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About China Organic Agriculture |
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China Organic Agriculture Inc., "China Organic Agriculture""CNOA" is headquartered in the Liaoning province, People’s Republic of China,
and is a global diversified food products company engaged in the international
distribution and production of premium and natural foods. Serving the marketplace
demands of the fast-growing upscale consumer population throughout the
Asia-Pacific region, CNOA targets multibillion-dollar expanding markets
for premium and natural foods and wines, leveraging its established
distribution networks. Historically, the Company has been solely engaged
in the manufacturing and distribution of green and organic rice, yet in
recent months it has diversified its products.
In October of 2008 the Company’s new CEO, Jinsong Li, announced an expansion
of its activities to capitalize on worldwide opportunities in international
food markets. As a result, the Company’s expanding portfolio of premium
and natural food products will soon include green and organically
grown rice, as well as California wine, organic soybeans, kidney beans,
mushrooms and other premium products.
As one of the largest distributors of green and organic rice in China,
the CNOA has developed extensive networks throughout many of China’s major
cities, including Beijing, Shanghai and Nanjing, and is positioned to leverage
those networks to establish broad distribution of a number of natural and
premium food and related products.
China Organic Agriculture intends to achieve revenue growth both through
organic expansion, as well as by acquisition of complementary product lines
and companies. China Organic has experienced significant growth since
its inception in 2002. China Organic’s new CEO announced his future
vision for the company by outlining a number of strategic initiatives to
expand sales and revenues throughout Asia.
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Murphy Analytics Issues Research Report on China Organic Agriculture
Projecting 12-Month Share Price of $1.45 to $2.90
View the Full Research Report HERE
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You may view an updated company fact sheet and powerpoint
presentation: HERE
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Other Recent News from China Organic Agriculture, Inc. |
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Press Release
Source: China
Organic Agriculture, Inc.
Monday December
1, 4:23 pm ET
Murphy Analytics Issues Research
Report on China Organic Agriculture, Projecting 12-Month Share Price of
$1.45 to $2.90
LOS ANGELES &
LIAONING, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:
CNOA - News), an international diversified premium food products company
capitalizing on China's burgeoning domestic consumer demand, today announced
that Murphy Analytics, a fee-based equity research firm, has issued a research
report that includes a 12-month target share price of $1.45 to $2.90 following
the Company’s recently announced revenue and earnings guidance.
"I consider this report
a ‘must read’ for existing shareholders and anyone contemplating an investment
in our company,” said Jinsong Li, Chief Executive Officer of China Organic
Agriculture. “Not only does the report examine the potential of China Organic
Agriculture, it also provides timely analysis of the Asian premium food
markets as well.”
The Report was written
by Patrick Murphy, CFA, the principal of Murphy Analytics. In his report,
Mr. Murphy states:
While the capital markets
are experiencing relentless volatility and uncertainty, the long-term growth
story for China’s real economy endures, as does the opportunity before
CNOA. With a strategic shift to focus on product distribution, CNOA has
positioned itself to leverage not only the growth in domestic demand for
organic and green rice, but also for a range of other premium food and
wine products.
The Report discusses
the recent guidance released by CNOA, the prospects for the Company, and
the outlook for growth in the demographics positively impacting demand
in China’s agricultural and premium goods sectors. Mr. Murphy notes:
CNOA’s highly scalable
business model presents an opportunity for the Company to participate more
fully in the historic growth driven by the development and urbanization
of the Chinese economy. MORE
Press Release Source:
China Organic Agriculture, Inc.
Tuesday November
25, 4:01 pm ET
China Organic Agriculture Issues
Revenue and Earnings Guidance
LOS ANGELES &
LIAONING, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:
CNOA - News), an international diversified premium food products company
capitalizing on China's burgeoning domestic consumer demand, today announced
revenue and earnings guidance for fourth quarter 2008 and Fiscal Year 2008,
ending December 31, 2008, with estimates exceeding all previous revenue
and net income results for the Company.
Projected Guidance
for Q4 and FY08:
*
Q408 revenue of $54 million (vs. $15.7 million Q407), or an approximate
240% Quarter Over Quarter Revenue Increase
*
FY08 revenue $113 million (vs. $44.5 million FY07), or an approximate 150%
Year Over Year Revenue Increase
*
Q408 net income $11 million (vs. $3.9 million Q407), or an approximate
180% Quarter Over Quarter Net Income Increase
*
FY08 net income $20 million (vs. $13.5 million FY07), or an approximate
40% Year Over Year Net Income Increase
*
Q408 EPS of $0.15 and FY08 EPS of $0.29
"We remain unequivocal
in our commitment to revenue and earnings growth,” said Jinsong Li, Chief
Executive Officer of China Organic Agriculture. “Our successful restructuring
and the implementation of a number of high growth strategies are validated
by our current and forecasted top line and bottom line numbers. We believe
our proactive business model will serve to drive revenues, earnings and,
ultimately, shareholder value.”
Management noted the
Company’s results and forecasts reflect the recent sale of the Company’s
ErMaPao subsidiary for $8.7 million and the acquisition of Dalian Huiming
in October 2008.
CNOA recently announced
aggressive growth strategies for 2009 which include further diversification
of product lines, the development of new revenue streams and the completion
of a number of strategic acquisitions. The Company is committed to establishing
itself as a leading purveyor of premium international consumer products
including high-quality foods, organic rice and California wines. It is
uniquely positioned to capitalize on rapidly-growing Chinese and Asian
domestic consumer demand which is anticipated to continue to increase despite
the current economic slowdown worldwide. MORE
Press Release Source:
China Organic Agriculture, Inc.
Friday November 21,
6:38 pm ET
China Organic Agriculture Announces
Engagement of
China America Financial Communications
Group
LOS ANGELES &
LIAONING, China--(BUSINESS WIRE)--China Organic Agriculture, Inc. (OTCBB:
CNOA - News), a diversified food products company capitalizing on China's
consumer revolution, today announced that it has engaged China America
Financial Communications Group (CAF), a leading financial communications
and marketing firm uniquely focused on high quality Chinese-based companies
with exceptional growth potential.
CAF’s role will be to
provide financial communications services, drive global investor visibility
and support CNOA’s mandate of delivering significant shareholder value.
“China Organic is truly
an international investment opportunity,” said Jinsong Li, Chief Executive
Officer. “The challenges inherent in dealing with a Chinese-based company
dictate that we find the best partners to delineate our high-growth business
model to the global investment community. We are confident that the depth
of market experience and communications knowledge of the CAF team on all
of these fronts make this relationship an extremely powerful combination.”
CAF's responsibilities
under the agreement include ongoing contact with prospective investors
and the brokerage community, dissemination of news, research and information
to China Organic’s current shareholders and potential investors. CAF will
also manage ongoing outreach and special presentations to institutional
investors and others in the financial community through industry meetings
as well as national and international financial conferences.
“Given the volatility
of today’s markets, it is especially important that all companies, particularly
Chinese operating companies, align themselves with firms that understand
global markets as well as their unique character,” said A. J. Cervantes,
Chairman and CEO of China America. “China Organic represents a compelling
investment opportunity that has already displayed exceptional growth to
date. We are very much looking forward to working with Mr. Li and his team
to bring this impressive story to the attention of the global investment
community.” MORE
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Financial Highlights for CNOA |
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Net Sales Jump 111% to $47.2
Million
Compared to Third Quarter 2007,
Resulting in Net Income of $8.3 Million
... additional operating results for the third quarter and nine months
ended September 30, 2008.
Net sales for the third quarter of 2008 were $47.2
million, increasing 111% compared to $22.4 million for the comparable
quarter of 2007. For the nine months ended September 30, 2008 net sales
were $58.4 million, increasing 103% compared to $28.8 million for
the nine months ended September 30, 2007. China Organic had net income
of $8.3 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 $0.14 per diluted share compared with the third quarter of 2007
as a result of a proportionate increase in the weighted average number
of shares between the two periods.
aaaaa
Symbol: CNOA
Recent Trade: $0.50 (12/05/08)
52 Week Range 0.16 - 4.37
Average Vol (3-mo):
284,677
Shares Outstanding: 73 million
To read a CNOA fact sheet in a PDF format,
simply click the image above
November 13, 2008 - 10:00 AM Eastern
China Organic Agriculture Third Quarter 2008 Earnings Conference
Call
Introduction (00:34) - Business & Financials
(16:58) - Questions & Answers (6:09)
To listen with Windows Media
Player, simply click
here.
For all of CNOA's SEC filings, Click
Here
a
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Company Contact |
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Steve Wan
China Organic Agriculture Inc.
Tel. 310.441.1888
stevewan@chinaorganicagriculture.com
www.chinaorganicagriculture.com
Financial Communications Contact
Darren Minton
China America Financial Communications Group
Tel. 212.823.0524
chinaorganic@cafcg.com
http://www.cafcg.com
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