China Organic Agriculture (OTCBB: CNOA) is an agricultural and products company driven by growth and acquisition, and is one of the largest producers of organic rice in China. China Organic has established an extensive sales network among the major cities in China and has experienced significant growth in its five years of operation. The company has more than 6,260 acres of land dedicated to green and organic rice irrigated from the Nen River, one of the few unpolluted rivers in China.
The company recently announced its intentions to acquire Dalian Baoshui District Huiming Trading Limited – a company ranking in the top 20 in net income and 50 in revenue in the food transportation industry in northeast China.
The numbers across the board are an obvious reason China Organic sees the acquisition as a step forward. In 2006, Huiming posted US$40 million, and net income of US$3.7 million. For the first six months of 2007, revenue was reported at US$24 million, and US$26 million in net income – a 20% rise from the year prior.
“The completion of this acquisition allows us to expand our distribution channels and diversify our operations from a homogeneous product – rice,” China Organic Chairman Huizhi Xiao stated in a press release. “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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