Financial Highlights of the Second Quarter -- Sales revenue was $30.0 million, a year-over-year increase of over 800%. -- Gross profit was $6.9 million, a year-over-year increase of 650%. -- Net income allocable to CNOA shareholders was $2.5 million, or $0.03 per diluted share, compared to a net loss of $121,000 recorded in the second quarter of 2008. -- Cash on hand totaled $9.0 million as of June 30, 2009. -- Selling, general and administrative expense decreased 16% compared to a year ago.
Revenue for the second quarter 2009 reached
Net income allocable to CNOA shareholders was
Financial Highlights for the First Half
The Company's revenues for the first six months of 2009 were
Financial Conditions
At
During the six months ended
Business Developments
On
In
About China Organic Agriculture
China Organic Agriculture is based in
The Company sells to a limited number of distributors in
FORWARD-LOOKING STATEMENTS:
This document includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning future
acquisitions, estimates of, and increases in, production, cash flows and
values, statements relating to the continued advancement of China Organic
Agriculture's products and other statements which are not historical facts.
When used in this document, the words such as "could," "plan," "estimate,"
"expect," "intend," "may," and similar expressions denote forward-looking
statements. Although China Organic Agriculture Inc. believes that its
expectations reflected in these forward-looking statements are reasonable,
such statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these
forward-looking statements include, but are not limited to, those set forth in
our reports filed with the Securities and Exchange Commission, together with
the risks discussed in our press releases and other communications to
shareholders issued by us from time to time, such as our ability to raise
capital as and when required, the availability of raw products and other
supplies, competition, the costs of goods, government regulations, and
political and economic factors in
China Organic Agriculture, Inc. Consolidated Statement of Operations For Three and Six Months Ended June 30, 2009 and 2008 (Unaudited) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2009 2008 2009 2008 Sales $30,018,428 $3,268,668 $66,745,736 $7,459,225 Cost of sales (23,089,593) (2,341,174) (51,431,107) (5,655,331) Gross profit $6,928,835 $927,494 $15,314,629 $1,803,894 Selling, general and administrative expenses (477,413) (569,688) (842,149) (1,040,029) Income from operations $6,451,422 $357,806 $14,472,480 $763,865 Other income 68,514 -- 683,067 -- Interest expense, net (398,283) (300,852) (565,574) (300,852) Income from Continuing operations before income taxes $6,121,653 $56,954 $14,589,973 $463,013 Provision for income taxes (1,652,726) (228,797) (3,724,242) (448,755) Net income (loss) from Continuing operations $4,468,927 $(171,843) $10,865,731 $14,258 Discontinued operations: Income from ErMaPao, net of tax -- 50,651 -- 840,156 Net Income (loss) $4,468,927 $(121,192) $10,865,731 $854,414 Less Income attributed to noncontrolling interest (1,987,837) -- (4,459,450) -- Net Income attributable to CNOA $2,481,090 $(121,192) $6,406,281 $854,414 Basic and diluted weighted average shares 73,157,232 51,548,776 73,157,232 51,548,776 Basic and Diluted Earnings per Share: Income from Continuing operations attributable to CNOA shareholders $0.03 $0.00 $0.09 $0.00 Income from Discontinued operations attributable to CNOA shareholders -- 0.00 -- 0.02 Total Basic and Diluted Earnings Per Share $0.03 $0.00 $0.09 $0.02 China Organic Agriculture, Inc. Consolidated Balance Sheet AS OF JUNE 30, 2009 AND DECEMBER 31, 2008 06/30/2009 12/31/2008 Assets (Unaudited)(Audited & Restated) Current Assets Cash and cash equivalents $9,000,459 $7,338,817 Restricted cash 37,045,331 -- Accounts receivable, net 40,705,914 26,448,294 Inventory 2,848,503 4,492,892 Acquisition deposit 2,617,952 2,617,952 Consideration receivable 6,700,000 8,700,000 Trade deposits 7,743,622 2,832,507 Advances 1,860,161 1,846,041 Other receivables and prepayments 2,104,855 126,296 Total Current Assets 110,626,797 54,402,799 Goodwill 1,602,134 1,602,134 Property, plant & equipment, net 14,418,446 14,521,452 Mortgage costs - net 140,038 143,788 Intangibles, net 968,000 1,056,000 Total Assets $127,755,415 $71,726,173 Liabilities and Stockholders' Equity Current Liabilities Mortgage payable - current $206,633 $198,854 Notes payable - related party 37,324,902 -- Short term loan 14,637,217 1,170,515 Accounts payable and accrued expenses 4,079,801 5,048,054 Due to related party 694,894 3,630,842 Taxes payable 1,652,459 3,335,751 Total Current Liabilities 58,595,906 13,384,016 Mortgage payable - long term 8,056,406 8,161,705 Total Liabilities $66,652,312 $21,545,721 Stockholders' Equity Preferred stock, par value, $0.001 per share 20,000,000 shares authorized, none outstanding -- -- Common stock, no par value, 1,000,000,000 shares authorized, 73,157,232 issued and outstanding at June 30, 2009 and December 31, 2008 7,648,410 7,648,410 Additional paid in capital 638,831 597,209 Statutory reserves 1,423,933 1,423,933 Other comprehensive income 2,827,215 2,814,743 Retained earnings 39,418,003 33,011,722 CNOA Stockholders' Equity $51,956,392 $45,496,017 Noncontrolling interest 9,146,711 4,684,435 Total Stockholders' Equity $61,103,103 $50,180,452 Total Liabilities and Stockholders' Equity $127,755,415 $71,726,173 China Organic Agriculture, Inc. Statement of Cash Flows FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008 (UNAUDITED) SIX MONTHS ENDED JUNE 30, 2009 2008 CASH FLOWS FROM (USED BY) OPERATING ACTIVITIES Net income from Continued operations $6,406,281 $14,258 Adjustments to reconcile net income to net cash provided by operating activities: Net income from Discontinued operations -- 840,156 Stock based compensation 41,622 263,543 Noncontrolling interest 4,459,450 -- Depreciation and amortization 195,432 181,306 Effect of changes in assets and liabilities: Accounts receivables (14,244,344) (3,631,323) Inventory 1,645,827 1,839,981 Trade deposits (4,908,990) 42,420 Acquisition deposit -- (13,260,561) Consideration receivable 2,000,000 -- Advances (13,388) -- Other receivable and prepayment (1,977,933) (595,569) Accounts payable and accrued expenses (969,737) 3,050,927 Due to related party (135,948) 867,975 Taxes payable (1,684,597) 85,675 Net cash used by Operating Activities $(9,186,325) $(10,301,212) CASH FLOWS USED BY INVESTING ACTIVITIES Restricted cash (37,045,331) -- Purchase of property & equipment (676) (14,598,802) Net cash used by Investing Activities $(37,046,007) $(14,598,802) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds of notes payables 37,324,902 -- Proceeds of short term loan 14,637,217 -- Proceeds from mortgage payable, net of costs -- 8,515,000 Proceeds from related parties -- 7,016,000 Repayment of notes payable (2,800,000) -- Repayment of loan (1,170,515) -- Repayment of mortgage payable (97,520) (210,632) Net cash from Financing Activities $47,894,084 $15,320,368 Effect of exchange rate changes on cash and cash equivalents (110) 560,098 Net change in cash and cash equivalents $1,661,642 $(9,019,548) Cash and cash equivalents, beginning balance $7,338,817 $9,697,793 Cash and cash equivalents, ending balance $9,000,459 $678,245 For further information, please contact: China Organic Agriculture, Inc. Hans Shen Tel: +1-707-709-2321 Email: IR@cnoainc.com
SOURCE China Organic Agriculture, Inc.