China Organic Issues Revised 2007 Guidance Following Recent Partnership Agreement with Xinmiao and Accelerated Organic Growth.Company Forecasts Record 2007 Revenues and Earnings of Approximately $18 Million and $6.7 Million Validating High Growth Business Model JILIN, China -- China Organic Agriculture, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CNOA CNOA California Narcotics Officers Association ), a growth-driven agricultural products company leading China's organic foods revolution, has released updated revenue and earnings guidance for calendar year 2007. The Company has raised its previously announced forecast by an additional $2 million to approximately $18 million in revenues for calendar year 2007, representing a 100 % increase over the comparable period the previous year. The Company has also raised projected net income to $6.7 million, representing an approximate 95 % increase over the $3.43 million reported for 2006. The updated financial forecast follows CNOA's recently announced partnership with Xinmiao Grain Depot, which the Company has projected will generate approximately $1.97 million in 2007, with an approximate net income of $710,000 prior to the conclusion of 2007. Additionally, the Company has projected that the Xinmiao partnership will generate an additional $5.91 million in revenues and $2.13 million in net income within the first seven months of 2008. "We feel confident that the Xinmiao partnership will have a significantly positive impact on our previously stated revenue and earnings forecast," said Jian Lin, Chief Executive Officer of China Organic Agriculture. "This updated forecast is exemplary of our ongoing commitment to providing our investors with timely information regarding our strategic accomplishments and expected financial performance to give them every opportunity to make an informed investment decision." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. CNOA's recent agreement with Xinmiao, Xinmiao will purchase grain from local farmers to provide an initial order of 10,000 tons of processed rice to CNOA to meet ever-increasing demand for its well-known ErMaPao brand of high-quality rice products in the first year. Xinmiao is expected to gradually increase its purchase of grains by 1,000 tons each year bringing the numbers to 11,000 tons in the second year and 12,000 tons in the last year of the agreement. The agreement is consistent with the Company's commitment 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. The Company has posted approximately 100% annual growth for the trailing four years. CNOA's updated projected revenues reflect the Company's high-growth business model that continues to drive China's "Organic Foods Revolution" with a government-supported 40% share of all organic rice products sold. China Organic has set forth a solid, high-growth business model to continue making a significant impact in the growing market for organic foods, which has grown to $13 billion, equal to the U.S. market for organic foods. In the first quarter of 2007, the Company reported revenues of $4.1 million, up 30 percent from the same period 2006. Gross margins increased to 43.9% with earnings of $1.72 million, or 42% of sales. In 2006 return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 59% while return on equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) was 73%. For 2006, the Company reported revenues of $9 million and earnings of $3.43 million. About China Organic Agriculture China Organic Agriculture is among the largest producers of organic rice in China commanding a 40 percent market share. COA (Certificate Of Authenticity) A document that accompanies software which states that it is an original package from the manufacturer. It generally includes a seal with a difficult-to-copy emblem such as a holographic image. controls all aspects of the process from seeds to planting and processing, R&D and sales. The proprietary processing factory is 20,000 square meters Noun 1. square meter - a centare is 1/100th of an are centare, square metre area unit, square measure - a system of units used to measure areas and has an annual production capacity of 30,000 tons. The Company also has an extensive sales network, located in the major cities in China China is a geographical area encompassing multiple territories, under two states. You may be looking for:
COA, which follows GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounting principles and is fully SEC compliant, 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 quality of COA's products results in the ability to command and receive prices 40% higher than comparables. In the first quarter of 2007 (as of March 31st) the company posted $4.1 million in revenue, up 30 percent from the same period 2006. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. grew to 43.9% yielding net income of $1.72 million or 42% of sales. China Organic has in excess of 6260 acres dedicated to green and organic rice. The irrigation irrigation, in agriculture, artificial watering of the land. Although used chiefly in regions with annual rainfall of less than 20 in. (51 cm), it is also used in wetter areas to grow certain crops, e.g., rice. system is fed from the Nen River Nen River formerly Nonni River River, northeastern China. It is the main tributary of the Sungari (Songhua) River. It rises between the Da Hinggan and Xiao Hinggan ranges in northern Heilongjiang province and flows south, forming part of the border between , 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 Organic certification is a certification process for producers of organic food and other organic agricultural products. In general, any business directly involved in food production can be certified, including seed suppliers, farmers, food processors, retailers and restaurants. and is the most popular rice brand in the country. 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. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/coa. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/coa/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/coa/factsheet.html. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. |
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