8-K/A 1 cnoa_8ka-032310.htm cnoa_8ka-032310.htm
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A
(Amendment No. 1)

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
March 23, 2010

CHINA ORGANIC AGRICULTURE, INC.
-----------------------------
(Exact Name of Registrant as Specified in its Charter)

Florida
 000-52430
  20-3505071
State of
  Commission
  IRS Employer
Incorporation
   File Number
 I.D. Number

Dalian City, Zhongshan District, Youhao Road
Manhattan Building #1, Suite # 1511
Dalian City, Liaoning Province, P.R. China
(Address of principal executive offices)

(707) 709-2321
(Issuer's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

|_|   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 

Explanatory Note

As previously reported in a Form 8-K filed on March 24, 2010, on March 23, 2010, China Organic Agriculture, Inc. (the “Company”), through Ankang Agriculture (Dalian) Co., Ltd. (“Dalian”), an indirect wholly owned subsidiary, completed the acquisition of 1,800,000 shares, representing approximately 60% of the capital stock, of Changbai Mountain Protection Zone Changbai Gongfang Ecoproducts Co., Ltd. (referred to as Changbai Eco-Beverage Co., Ltd. in the Form 8-K initially filed) (“Changbai”) from Mr. Hongjun Ma for $10,250,403 (70 Million RMB). The variation in the name of Chanbai is the result of the translation from Chinese to English.
 
Changbai produces a variety of products from blueberries grown in the Mountain Changbai region of Northeast China, including blueberry wines, blueberry beverages, blueberry food products such as jam, jelly, preserves and cakes, and blueberry healthcare products.  Changbai also produces honey and other products from locally grown herbs and fruits. Changbai sells its products primarily through over 50 franchisees and retail chains.

The Company is filing this amendment to file the information relating to the acquisition of Changbai required by Item 9.01(a) and (b) of Form 8-K.

Item 9.01 Financial Statements and Exhibits.
 
(a)
Financial statements of businesses acquired. 
 
The audited financial statements of Changbai for the year ended December 31, 2009 and for the period from May 7, 2008 (inception) through December 31, 2008 are annexed hereto as Appendix A.

 
(b)
Pro forma financial information.
 
The proforma financial information giving effect to the acquisition of Changbai is annexed hereto as Appendix B.

 

SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
CHINA ORGANIC AGRICULTURE, INC.
  
       
       
Dated: June 8, 2010
By:
 /s/ Bo Shan  
   
Bo Shan
  
   
Chief Financial Officer
  
   
(Principal Executive Officer)
  

 
 
 
 
Appendix A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
Appendix B
 
China Organic Agriculture, Inc. and Subsidiaries

 Unaudited Pro Forma Condensed Consolidated Statement of Income
 
For the Period Ended December 31, 2008
 
         
Changbai - May 7,
        
         
2008 (inception of
        
         
Operations) to
        
   
CNOA - 2008
    
December 31, 2008
    
Total CNOA Pro-forma
  
                   
 Sales
   $ 112,695,908     $ 3,797,023     $ 116,492,931  
                         
 Cost of Sales
     (87,329,141 )     (2,270,272 )     (89,599,413 )
                         
 Gross Profit
     25,366,767       1,526,751       26,893,518  
                         
 Selling, General and Administrative
     (1,743,201 )     (99,556 )     (1,842,757 )
                         
 Bad Debt Expense
     (12,143 )     -       (12,143 )
                         
 Loss on Impairment
     -       -       -  
                         
 Income from Operations
     23,611,423       1,427,195       25,038,618  
                         
 Gain on Debt Conversion
     432,169       -       432,169  
                         
 Other Income, net
     395,408       -       395,408  
                         
 Interest Expense, net
     (541,959 )     381       (541,578 )
                         
 Income from Continuing Operations
                        
    Before Taxes
     23,897,041       1,427,576       25,324,617  
                         
 Provision for Income Taxes
     (6,975,212 )     (356,894 )     (7,332,106 )
                         
 Net Income from Continuing Operations
     16,921,829       1,070,682       17,992,511  
                         
 Discontinued Operations:
                        
     Income from ErMaPao, net of tax
     934,037       -       934,037  
     Income Due to Disposal of ErMaPao,
                        
         net of tax
     934,194       -       934,194  
 Income from Discontinued Operations
     1,868,231       -       1,868,231  
                         
 Net Income
     18,790,060       1,070,682       19,860,742  
                         
 Less Income Attributable to
                        
    Non-Controlling Interest
     (1,328,623 )     (428,273 )     (1,756,896 )
                         
 Net Income Attributable to CNOA
     17,461,437       642,409       18,103,846  
                         
 Basic and Diluted weighted
                        
     Average Shares
     58,515,437       n/a       58,515,437  
                         
 Basic and Diluted Earnings per Share:
                        
    Income from Continuing Operations
                        
      Attributable to CNOA shareholders
   $ 0.27             $ 0.31  
 Income from Discontinued Operations
                        
      Attributable to CNOA shareholders
   $ 0.03             $ 0.03  
                         
 Total Basic and Diluted Earnings per Share
   $ 0.30             $ 0.34  
 
 
 
 

China Organic Agriculture, Inc. and Subsidiaries
 
 Unaudited Pro Forma Condensed Consolidated Statement of Income
 
For the Period Ended December 31, 2009
 
   
CNOA - 2009
    
Changbai - 2009
    
Total CNOA Pro-forma
  
                   
 Sales
   $ 143,856,835     $ 7,466,701     $ 151,323,536  
                         
 Cost of Sales
     (106,797,867 )     (4,268,293 )     (111,066,160 )
                         
 Gross Profit
     37,058,968       3,198,408       40,257,376  
                         
 Selling, General and Administrative
     (3,713,734 )     (187,025 )     (3,900,759 )
                         
 Bad Debt Expense
     (1,930,568 )     -       (1,930,568 )
                         
 Loss on Impairment
     (1,539,403 )     -       (1,539,403 )
                         
 Income from Operations
     29,875,263       3,011,383       32,886,646  
                         
 Gain on Debt Conversion
     -       -       -  
                         
 Other Income, net
     1,071,989       -       1,071,989  
                         
 Interest Expense, net
     (1,294,020 )     1,263       (1,292,757 )
                         
 Income from Continuing Operations
                        
    Before Taxes
     29,653,232       3,012,646       32,665,878  
                         
 Provision for Income Taxes
     (8,446,233 )     (753,161 )     (9,199,394 )
                         
 Net Income from Continuing Operations
     21,206,999       2,259,485       23,466,484  
                         
 Discontinued Operations:
                        
     Income from ErMaPao, net of tax
     -       -       -  
     Income Due to Disposal of ErMaPao,
                        
         net of tax
     -       -       -  
 Income from Discontinued Operations
     -       -       -  
                         
 Net Income
     21,206,999       2,259,485       23,466,484  
                         
 Less Income Attributable to
                        
    Non-Controlling Interest
     (10,331,078 )     (903,794 )     (11,234,872 )
                         
 Net Income Attributable to CNOA
     10,875,921       1,355,691       12,231,612  
                         
 Basic and Diluted weighted
                        
     Average Shares
     73,157,232       n/a       73,157,232  
                         
 Basic and Diluted Earnings per Share:
                        
    Income from Continuing Operations
                        
      Attributable to CNOA shareholders
   $ 0.15             $ 0.17  
 Income from Discontinued Operations
                        
      Attributable to CNOA shareholders
   $ -             $ -  
                         
 Total Basic and Diluted Earnings per Share
   $ 0.15             $ 0.17