BEIJING, Sept. 6, 2011 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today announced that Yongye Fumin, a wholly-owned subsidiary of Yongye Nongfeng, the Company's main operating entity in China, obtained government approval for mineral resource exploration for its designated project site in Wuchuan, Inner Mongolia, China. Yongye entered into an agreement to purchase this mineral resource project in March 2010 to secure the key raw material used in the production of Yongye's Shengmingsu crop and animal nutrient products.
China's Ministry of Land and Resources has granted the Company a Mineral Resource Exploration Permit which gives it exclusive exploration rights for the 29.74 square kilometer project site for an initial period of three years effective August 2, 2011. The project site in Wuchuan is located near Yongye's primary production facility which manufactures the majority of Yongye's Shengmingsu products.
Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye stated, "We are pleased to receive this permit which will allow us to apply for and obtain final approval for production development of this project site after we complete standard exploration work with professional third parties. This is a significant next step in the development of this project site as a primary long-term raw material source for our agricultural nutrient products. This project is part of our long-term strategy to realize significant competitive advantages, and meet the growing demand for our products. Furthermore, our initiatives in this area will help upstream integration of our raw material supplies and generate long-term value for the business."
About Yongye International
Yongye International is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient which accounted for 99.3% of total sales for the first half of 2011. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Ms. Kelly Wang
Finance Director – Capital Markets
Ms. Wendy Xuan
Phone: +86-10-8232-8866 x 8827
FTI Consulting (formerly known as Financial Dynamics)
Mr. John Capodanno (U.S. Contact)
Ms. Mingxia Li (China Contact)
SOURCE Yongye International, Inc.