Yongye Nongfeng accrued its income tax expenses for the first three
quarters of 2009 based on the statutory income tax rate of 25%. Recently,
Yongye Nongfeng received the approval from the local tax authority of Hohhot,
Inner Mongolia Autonomous Region, that Yongye Nongfeng qualifies for a
preferential 15% corporate income tax rate. As a result, Yongye will pay its
income tax expenses for the full 2009 tax year based on the preferential 15%
corporate income tax rate. The impact to first nine month earnings in 2009
prepared in accordance with U.S. GAAP is estimated to be a reduction of income
tax expenses of approximately
"When added to the VAT exemption which we received in 2008, this preferential income tax rate provides us with additional financial strength to execute our strategic plan," said Mr. Zishen Wu, Yongye's Chairman and CEO.
About Yongye International, Inc.
Yongye International, Inc., headquartered in
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SOURCE Yongye International, Inc.