Deyu Agriculture Corp. Explores Institutional Sales Segment and Reaches Supply Agreement Valued at USD18.4 Million
BEIJING, Dec. 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 it has reached an agreement with Beijing Suning Appliance Co., Ltd. (Suning), which is one of China's largest electrical and electronic appliance retailers with annual sales of approximately US$15 billion in 2011, to supply Suning with refined packaged grain goods valued at US$18.4 million.
"We are seeing more and more large retailers and service providers in China, like Suning, integrating consumer trends into their marketing strategies," said Jianming Hao, Chief Executive Officer of Deyu. "One example is the usage of our refined grain products of famous brands as promotional items for their main products, as gift items for customers, and as benefit items for employees. In view of this trend, we believe that our sales to Suning, which is one of China's top electronic appliance retailers with over 1,700 chain stores nationwide, indicate that our brand is becoming a highly recognizable grain product brand in China."
"So far, we have been pleased to see Suning record US$12.3 million in sales revenue since our shipments commenced in August 2012," added Mr. Hao. "We understand the large market potential of institutional sales, and we are committed to further expanding into this area by developing more strategic institutional clients and further exploring the commercial sales segment. We believe the commercial sales of such nature and scale can introduce more and more customers to Deyu's products through those institutional clients' large national sales networks."
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.