Financial Highlights 1) Sales revenue and gross profit for the third quarter, inclusive of the portions attributable to the minority interest in its subsidiary, Dalian Huiming, were $39.7 million and $11.1 million. Although sales decreased 15% as compared to the prior year, gross profit was approximately equal to that of last year's comparable period, reflecting the Company's focus on higher margin trading opportunities. 2) Sales revenue and gross profit for the nine months, inclusive of the portions attributable to the minority interest in its subsidiary, Dalian Huiming, were $106.4 million and $26.4 million, a year-over-year increase of 97.4% and 103.8% respectively. 3) Selling, general and administrative expenses declined by 9.5% for the first nine months as compared to the same period a year ago in spite of the near doubling of revenues. 4) Earnings per share from continuing operations attributable to the Company for the quarter was $0.06, a substantial decrease from the $0.15 from continuing operations recorded in the comparable period last year.
Sales for the nine months ending
Although the sales during the three months ended
Net income attributable to CNOA shareholders was
The basic and diluted earnings per share for the third quarter
attributable to CNOA's shareholders were
Financial Conditions
On
During the nine months ended
Business Developments
On
In
About China Organic Agriculture
China Organic Agriculture is based 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, 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
For more information, please contact: China Organic Agriculture, Inc. Hans Shen Tel: +1-707-709-2321 Email: IR@cnoainc.com Financial Statements China Organic Agriculture, Inc. Consolidated Statement of Operations For Three and Nine Months Ended September 30, 2009 and 2008 (Unaudited) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2009 2008 2009 2008 Sales $39,656,537 $46,454,286 $106,402,273 $53,913,511 Cost of sales (28,547,725) (35,326,386) (79,978,832) (40,946,593) Gross profit 11,108,812 11,127,900 26,423,441 12,966,918 Selling, general and administrative expenses (587,239) (416,651) (1,429,388) (1,579,854) Income from operations 10,521,573 10,711,249 24,994,053 11,387,064 Gain on debt conversion -- 432,169 -- 432,169 Other income, net 154,774 180,964 837,841 269,014 Interest expense, net (108,578) (79,570) (674,152) (380,422) Income from Continuing operations before income taxes 10,567,769 11,244,812 25,157,742 11,707,825 Provision for income taxes (2,753,400) (2,773,251) (6,477,642) (3,222,007) Net income from Continuing operations 7,814,369 8,471,561 18,680,100 8,485,818 Discontinued operations: -- 1,028,074 -- 1,868,231 Net Income 7,814,369 9,499,635 18,680,100 10,354,049 Less Income attributed to noncontrolling interest (3,304,176) -- (7,763,626) -- Net Income attributable to CNOA $4,510,193 $9,499,635 $10,916,474 $10,354,049 Basic and Diluted weighted average shares 73,157,232 57,655,514 73,157,232 53,599,214 Basic and Diluted Earnings per Share Income from Continuing operations $0.06 $0.15 $0.15 $0.16 attributable to CNOA shareholders Income from Discontinued operations attributable to CNOA shareholders -- 0.02 -- 0.03 Total Basic Earnings Per Share $0.06 $0.17 $0.15 $0.19 China Organic Agriculture, Inc. Consolidated Balance Sheets As of September 30, 2009 (unaudited) and December 31, 2008 (audited/restated) Assets 09/30/2009 12/31/2008 (Unaudited) (Audited/Restated) Current Assets Cash and cash equivalents $17,306,954 $7,338,817 Restricted cash 8,786,059 -- Accounts receivable, net 44,169,190 26,448,294 Inventory 6,399,469 4,492,892 Other current assets 13,202,303 16,122,796 Total Current Assets 89,863,975 54,402,799 Goodwill 1,602,134 1,602,134 Property, plant & equipment, net 14,366,609 14,521,452 Other long term assets 1,062,163 1,199,788 Total Assets $106,894,881 $71,726,173 Liabilities and Stockholders' Equity Current Liabilities Mortgage payable - current $210,636 $198,854 Notes payable - 8,786,059 -- Short term loans 14,637,217 1,170,515 Accounts payable and accrued expenses 2,600,963 5,048,054 Due to related party 939,894 3,630,842 Taxes payable 2,753,710 3,335,751 Total Current Liabilities 29,928,479 13,384,016 Mortgage payable - long term 8,002,222 8,161,705 Total Liabilities 37,930,701 21,545,721 Stockholders' Equity CNOA Stockholders' Equity 56,506,480 45,496,017 Noncontrolling interest 12,457,700 4,684,435 Total Stockholders' Equity 68,964,180 50,180,452 Total Liabilities and Stockholders' Equity $106,894,881 $71,726,173 China Organic Agriculture, Inc. Consolidated Statements of Cash Flows (Unaudited) NINE MONTHS ENDED SEPTEMBER 30, 2009 2008 Cash flows used by operating activities $(5,035,988) $(11,452,162) Cash flows used by investing activities 5,219,324 (16,235,929) Cash flows from financing activities 9,775,025 18,603,785 Exchange rate effect 9,776 948,627 Net change in cash and cash equivalents 9,968,137 (8,135,679) Cash and cash equivalents, beginning balance 7,338,817 9,697,793 Cash and cash equivalents, ending balance $17,306,954 $1,562,114
SOURCE China Organic Agriculture, Inc.