In the company’s news yesterday,
China Organic Agriculture Inc. announced its operating results for the third quarter and nine months ended September 30, 2008, posting triple-digit growth in net sales and net income.
China Organic attributes the increases to expansion of distribution operations and its decision to purchase rice from other rice producers and then selling it to retailers and wholesalers. Net sales for the third-quarter of 2008 were $47.2 million, up 111 percent from the $22.4 million posted for the third quarter of last year. For the nine-month period, net sales were $58.4 million, up 103 percent as compared to $28.8 million for the same nine months of 2007.
The company reported net income of $8.3 million 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 14 cents per diluted share compared with the third quarter of 2007 because of a proportionate increase in the weighted average number of shares between the two periods.
China Organic also attributes the positive results to positive harvest results, as well as the growth of its new Ankang subsidiary, which posted $53.9 million in sales.
“Due to the timing of the harvest season, the third and fourth quarters are historically China Organic’s most impressive. This year we did not disappoint,” Jinsong Li, CEO of China Organic Agriculture stated in the press release. “With revenue of topping $47 million in the third quarter, we more than doubled our sales over the comparable period in 2007. The fact that 98% of third quarter revenue came from China Organic’s relatively new, but fast-growing Ankang subsidiary is a substantial achievement.”
The company noted the recent appointment of Li as CEO, as well as the recently signed agreement to trademark Xiaoxinganling, an organic name brand in northeast China, and the distribution of several premium food products, including soybeans, kidney beans and mushrooms.
The company also completed its acquisition of Dalian Huiming Industry Ltd, in which China Organic acquired 60 percent of Dalian Huiming for $10.6 million in an all cash transaction. The acquisition allowed the company to diversify its product offerings and to move forward in China’s competitive market.
“With the finalization of Dalian Huiming and our successful acquisition of the ‘Xiaoxinganling’ brand name, China Organic will diversify into a variety of different agricultural products including soybeans, corn, mushrooms and kidney beans. The fourth quarter will bring together these multiple revenue streams as we integrate them into our operations. China Organic will continue to increase value for our shareholders as we strive to be one of the foremost leaders in premium and natural food products in China and Asia’s agricultural industry,” Li Stated.
About QualityStocks
QualityStocks, based in Scottsdale, Arizona is a free service that collects data from hundreds Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their advertising efforts and now has over 500,000+ subscribers that receive The Daily Stock Newsletters.
To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
