China Organic Agriculture Inc. reports business growth due to the acquisition of BVI-based and China-based subsidiaries

China Organic Agriculture, Inc. (CNOA), one of China’s leading agricultural and products companies, has announced its financial results for the 2nd quarter 2007, ended June 30, 2007. The reported growth of revenues made $2.3 million, the earnings made $675,000 – that is a 180% increase compared to the same period of 2006, and a revenue record generated during any second quarter in the Company’s history.

In March 2007, CNOA became the whole owner of two subsidiaries: the company owns directly China Organic Agriculture, Ltd. (COAL), incorporated in 2006 in the British Virgin Islands. In its turn, the BVI company owns Jilin Songyuan City ErMaPao Green Rice Ltd, which was  incorporated in China in 2002. Through its BVI and China subsidiaries, the Company is involved in the business of rice production and processing, and ErMaPao now is the main brand of the Company amd the most popular rice brand in the country, which has won several quality awards and holds the highest organic certification.

The increase of Company’s revenues after acquisition of the subsidiaries is seen by the record growth in the Q2 2007, which is cited to the increases in production capacity, production output and consumer brand awareness.

Company’s reported revenues for the six months ending June 30, 2007 were than $6.4 million – 60% more than in the same period of 2006. Earnings for this period were approximately $2.4 million, a 58% increase over the comparable period 2006.

CNOA has also recently released updated revenue and earnings guidance for calendar year 2007, where raised its previously announced forecast by an additional $2 million to approximately $18 million in revenues, which made a 100% increase over the comparable period of the previous year.

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