China Organic Agriculture, Inc (CNOA.OB), a leading organic food company, announced that the company is to acquire Dalian Baoshui District Huiming Trading Limited. Huiming is a growth driven company that has demonstrated increasing net income and revenue during previous fiscal periods. In particular, revenue totaled $40 million and net income totaled $3.7 million during fiscal year 2006. For the first 6 months of 2007, revenues totaled $24 million and net income totaled $2.6 million; representing an increase of 20% from the previous year.
Dalian Baoshui District Huiming Trading Limited was first established in July 2001. The Company is focused on food purchasing, local and international wholesale distribution, transportation of food to enterprises, and processing food products. Huiming also manages the distribution of beans, corn, and processed food products in areas such as Liaoning Province, Jilin Province, Heilongjiang Province, Sichuan Province, Fujian Province, Beijing and Shanghai. Huiming’s main customers, established entities, compromise 80% of Huiming’s total sales.
Huizhi Xio, China Organic’s Chairman, stated, “The completion of this acquisition allows us to expand our distribution channels and diversify our operations from a homogeneous product – rice. Our Company will continue to target and acquire other food industry corporations to remain competitive and bring more product experience compared to other companies in the industry.”
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