Message #1 From:
NewsBot Date: December 7, 2007 06:47:21 AM
China Organic Announces Agreement With Major Songyuan City Retail Distribution System
Agreement Targeting Fast-Growing Middle Class Market Segment to
Generate $4 Million Within Calendar Year 2007
China Organic Agriculture, Inc. (OTCBB:CNOA), a growth-driven
agricultural and products company leading China's organic foods
revolution, today announced that the Company has reached a milestone
3-year retail distribution agreement with Shunda Grain and Oil Company
of Songyuan City, one of the largest cities in the northeastern province
of Jilin.
The agreement with Shunda Grain and Oil is the latest validation of CNOA’s
stated strategic initiatives to expand market share by gaining new
partnerships with major retail distribution system partners in China and
other emerging economies in Asia.
The agreement is expected to contribute revenues of 30 million Yuan,
equivalent to approximately USD $4 million within calendar year 2007.
The agreement states that Shunda Grain and Oil will become one of CNOA’s
authorized retailers in the supermarket chain store industry, selling “ErMaPao”
award-winning series of products to the Fuyu region with more than 2.8
million consumers.
“China Organic continues expand revenues and
earnings from an ever-growing list of agreements with some of China’s
largest retail distribution systems,” said
Huizhi Xiao, Chairman of China Organic Agriculture. “This
agreement as well as other major retail distributors such as Suguo and
Hualian will only help to increase our growth as we look to move forward
with expanding our distribution systems and broaden our share of the
large rice market in Songyuan City.”
Shunda Grain and Oil joins a growing network of large retailers that
CNOA has established over the past several months including two of China’s
largest retail chains Nanjing Suguo Supermarkets and Hulian Hypermarkets
of Beijing with annual revenues $3 billion and $780 million respectively.
About China Organic Agriculture
China Organic Agriculture is among the largest producers of organic rice
in China. CNOA controls all aspects of the process from seeds to
planting and processing, R&D and sales. The Company also has an
extensive sales network, located in the major cities in China.
CNOA has experienced significant growth since its inception in 2002, and
as an agricultural company is exempt from Chinese taxes. CNOA has put
solid plans in place to markedly expand revenues. The quality of CNOA’s
products results in the ability to command and receive prices 15% higher
than comparables.
CNOA has in excess of 6260 acres dedicated to green and organic rice.
The irrigation system is fed from the Nen River, one of the last
unpolluted rivers in China, and no chemicals or fertilizers are used in
the process. The Company’s flagship brand,
ErMaPao, has won several quality awards and holds the highest organic
certification.
For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/coa.
To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/coa/quote.html.
To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/coa/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995 -- With the exception of historical information, the matters
discussed in this press release are forward-looking statements that
involve a number of risks and uncertainties. The actual future results
of CNOA could differ significantly from those statements. Factors that
could cause actual results to differ materially include risks and
uncertainties such as the inability to finance the company's operations
or expansion, inability to hire and retain qualified personnel, changes
in the general economic climate, including rising interest rate and
unanticipated events such as terrorist activities. In some cases, you
can identify forward-looking statements by terminology such as "may,"
"will," "should," "expect," "plan," "anticipate," "believe," "estimate,"
"predict," "potential" or "continue," the negative of such terms, or
other comparable terminology. These statements are only predictions.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, such statements should not be
regarded as a representation by the Company, or any other person, that
such forward-looking statements will be achieved. We undertake no duty
to update any of the forward-looking statements, whether as a result of
new information, future events or otherwise. In light of the foregoing,
readers are cautioned not to place undue reliance on such
forward-looking statements. For further risk factors see the risk
factors associated with our Company, review our SEC filings.
