China Organic Agriculture, Inc. (cnoa.ob)
Food and Beverage
- True Success Story: In its recent SEC filings for the third quarter of 2007, China Organic Agriculture revealed the spectacular success of its operations so far this year. The Company reported revenues and earnings for the quarter ended September 30, 2007 of approximately $22 million, an increase of 1,357% over the comparable period the previous year, and also reported earnings of approximately $7 million, an increase of approximately $6.6 million or 1,156% over the comparable period the previous year. China Organic Agriculture also reported that revenues for the nine months ending September 30, 2007, surpassed $28.8 million, an increase of approximately $23.2 million or 419% over the $5.5 million for the comparable period in 2006, and earnings for the nine months ending September 30, 2007, were approximately $9.6 million, an increase of approximately $7.5 million or 360% increase over the comparable period in 2006. The increase of $7.5 million in earnings for the period is due to the expansion of the Company’s sales and distribution channels, which it achieved while keeping operating expenses steady.
- Going Green in China: With the tremendous sustained economic growth in China, the dynamics of the Chinese consumer markets are changing dramatically. Increased production levels have raised tremendous concerns about long term environmental impacts, and China Organic Agriculture has seized on the shift in the market by producing quality agricultural products organically. 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 the most popular rice brand in the country.
- Tremendous Industry: With over 300,000 hectares of organic fields, China now has command of 11% of the entire global organic farmland (Source: Organic Consumers Association). China now dominates the supply of organic pumpkin seeds, sunflower seeds, kindney beans, and black beans. China’s exports of organic food sales are growing at an astounding clip; the most recent 2005 figure of $350M trumps the previous year’s exports by 133% (Source: Businessweek “Organic, With Pesticides” by Chi-Chu Tschang, 7/30/2007). With average incomes rising by 4.5 times from 1998 to 2005 (Source: www.worldbank.org), a rapidly growing Chinese middle and upper class is now in a position to consider more carefully the nutritional content and safety of their diets as well as the environmental impact of their consumption.
Company Contact Information
East Ping Feng Xiang Zheng Fu
Qian Guo District
Songyuan City, ,
CHINA
- Phone:310-441-9777
- Fax:n/a
- E-mail:steve@thestrategicidea.com
On-line contact form
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