Deyu Agriculture Corp. Adds New Subsidiary, Extends Business Coverage to Northeast China
BEIJING, Jan. 14, 2012 /PRNewswire/ -- Deyu Agriculture Corp. (OTCBB: DEYU) (the "Company"), a Shanxi Province, China based vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains, announced today that the Company formed a 99% owned subsidiary, Jilin Jinglong Agriculture Development Limited ("Jinglong"), which is primarily engaged in the procurement, storage and sales of corn and grain.
In October 2012, Jinglong was incorporated in Jilin Province, one of the three Provinces of Northeast China, with registered capital of approximately US$3.2 million. The Provinces of Northeast China are some of the nation's top crop producing areas. According to the China's National Bureau of Statistics, in 2011, crop production from these regions collectively reached approximately 107.8 billion kilograms, which was approximately 18.9% of China's total crop production.
Regions in Northeast China are especially rich in the production of corn, rice and various types of grains, including soybeans, kidney beans and sunflower seeds. The area as whole is situated around the same Latitude (45° of North Latitude) as the U.S. and Ukraine corn belts, which are collectively known as the world's three "Golden Corn Belts."
"Setting up Jinglong is a major step for us in further developing our agriculture production chain," said Jianming Hao, Chief Executive Officer of Deyu. "With its strategic location in Jilin Province, we expect that Jinglong will play a pivotal role in extending our business coverage to the whole Northeast Region of China. Furthermore, by establishing a more complete value chain from the farm to the market, we are looking to strengthen our commitment to providing organic and green products, as we anticipate that Jilin will help us better ensure quality and efficiency, as well as fortify our resources to develop a more diversified product portfolio."
About Deyu Agriculture
Deyu Agriculture Corp. is a vertically integrated agricultural value chain from farmland to consumer market, which produces, processes, markets and distributes organic and other agricultural products made from corn and grains operating in Shanxi Province in China. The Company has access to over 109,000 acres of farmland in Shanxi Province for breeding, cultivating, processing, warehousing and distributing grain and corn products. Deyu Agriculture Corp. has an extensive wholesale network in over 15 provinces and a retail distribution network of approximately 20,000 supermarkets and convenience stores in 29 provinces across China. Deyu Agriculture Corp.'s facilities include sophisticated production lines and modern warehouses with a total production capacity of over 105,000 tons for grain products, storage capacity of over 100,000 tons and annual turnover of 700,000 tons for corn products. The Company's website is located at www.deyuagri.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu Agriculture Corp.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company's ability to maintain its competitive position. Additional Information regarding risks can be found in the Company's quarterly and annual reports filed with the U.S. Securities and Exchange Commission at www.sec.gov.
Deyu Hotline: +1-646-499-5475
Mr. Greg Chen, President
Deyu Agriculture Corp.
Ms. Amy He, Chief Financial Officer
Deyu Agriculture Corp.
Tel: +86-10-5224-1802 X389
Mr. Kevin Ma
NUWA Group LLC
SOURCE Deyu Agriculture Corp.