Both Ankang and Dalian Huiming (DH) were growing rev. quickly even before the DH acquisition in Oct. 08. With the synergy created b/w the networks (Ankang can now sell its rice thru Dalian's retail network and Dalian can sell its soybean, mushrooms... thru Ankang's retail network..).
Before the acquisition Dalian did 40.2m rev, and 2.7m NI in 2007, alone in the last 2 months of 2008 as part of CNOA it did about 20m (my estimate) with 60% profit going to CNOA. In the 2 first quarters of 2009, where Ankang typically brings only 6 to 7m rev per q, CNOA reported rev of 37m and 30m this year. So 30m and 24m per q are attributable to Dalian, a huge increase compared to 2007 as a standalone network. So we should look at the DH acquisition not based on its own pre-acquisition numbers but based on the synergy b/w two giant networks feeding each other. That's why I am expecting 120m+ rev for the coming quarter, and another 100m for 4q09. For me, Dalian is undoubtedly an excellent acquisition.
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