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China Organic (CNOA) Issues Guidance

 

 

As CEO of China Organic Agriculture, it is always my pleasure to bring shareholders and potential investors the latest news on the Company. Our mandate is to deliver exceptional shareholder value and with today’s release of revenue and earnings guidance for Q4 and full year 2008, we have once again met that goal.

Here are a few highlights from today’s press release:

  • 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
The above figures include our recent $8.7 million sale of our ErMaPao 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.

While these figures are exceptional, with the strategic initiatives that will be executed over the next few weeks, we are confident that the Company is extremely well positioned to experience further stellar growth into 2009 and beyond.

CNOA is establishing itself within China and throughout Asia as a leading purveyor of premium foods, including California wines and high-quality organic foods.

The demographics of China are very much in CNOA's favor with population projections forecasting 1 billion urban Chinese by 2020; up 66 percent from the 600 million today. Incomes are rising rapidly and with GDP forecast average of between 5-7 percent annually for those years, we see a continued and consistent increase in the demand for exactly the types of high-quality products we produce and distribute.

I look forward to bringing you more and substantive news soon about the aggressive corporate initiatives CNOA plans to undertake to further accelerate both our revenue and earnings growth and deliver exceptional shareholder value.

Until then, I invite you to read today's press release (PDF) and visit our website for the latest news and corporate developments.


Sincerely,

Jinsong Li
Chief Executive Officer
China Organic Agriculture, Inc.

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