December 07, 2010 11:02 ET
Yasheng Group Fruit Segment Expects Increases of Approximately 27% and 15% in Sales Revenue and Net Profits Respectively in 2010
REDWOOD CITY, CA--(Marketwire - December 7, 2010) - Yasheng Group (OTCQB: YHGG), a high-growth diversified China-based agricultural company with US headquarters in California, expects sales revenue and net profits for its fresh and processed fruit segment to advance by approximately 27% and 15% respectively in 2010 as a result of increased demand and rising food cost. The Company estimates total sales of fruit products to exceed $ 300 million in 2010 compared to $249 million in 2009. A decrease in harvested product volume caused by an early snow storm in part of Northwest China this year was offset by 50% higher purchasing prices of fruit products, which led to better returns than in the previous year.
When combined, Yasheng Group's orchards exceed 4,000 acres, on which twelve products are grown, including award winning Zaosu pears, Red Fuji apples, and apricots. These products have become world renowned as a result of their growing regions. The dry climate with long sunny, hot days combined with cold nights, enables the fruit to produce more sugars as well as reach superior size, creating a demand in high-end markets.
The China Green Food Development Center designated Yasheng as the "National Grade A Green Food Production Base." The base adopts "ISO 14001" environmental management standards and has been certified by CEC (China Environmental United Certification Center). The Yasheng facilities represent one of the largest enterprise-scale "Green Food" fruit-product bases in China.
The apples and pears produced by Yasheng are 100% organic and each fruit is grown inside a special bag that protects it from pests, frost, and air-borne diseases. The package is applied to the fruit after it blossoms and the fruit is harvested with the bag intact for packaging. There is no need to apply any harmful pesticides and natural fertilizers are fed through filtered water-saving drip irrigation.
AAA Fresh fruit products are packaged and palletized for shipment to high-end markets along the coastal regions of China, Hong Kong, and Taiwan and sold at premium prices. Yasheng Group has a modern cold storage facility that holds over 30,000 tons of products with a shelf life of up to eight months.
The majority of medium quality fruit products are sold within the province and around China and odd size fruit are used for purees and sauces utilizing ISO HACCP standards with imported modern processing equipment that packages the product directly into 0.2-ton airtight bags. The company also produces dried fruits, with apricots being nationally recognized for their all natural quality.
Yasheng's fruit orchards are relatively new and just entering their most productive years and the company is expecting an increase in yields from the current orchard bases. The company also has plans to plant an additional 500 acres of fruit trees over the next three years and will continue this trend for a stable cycle of fresh fruit trees. In addition, Yasheng has planned to expand the dried fruit and vegetable processing line, as well as to develop an IQF "Packaged Frozen Fruit & Vegetable" product line.
Yasheng Group (OTCQB: YHGG) (www.yashenggroup.com), founded over 30 years ago, is a US holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is lead by a highly qualified management team and it has total assets of approximately $1.7 billion, over 15,000 employees, and a history of strong sales and earnings growth.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.