SOURCE: Yasheng Group

January 11, 2012 10:11 ET

Yasheng Group Announces Agricultural Expansion for 2012

Plans to Implement 57,000 Acre Drip Irrigation Project, Increase Alfalfa Production, Add 5,000 Ton Potato Production Line

REDWOOD CITY, CA--(Marketwire - Jan 11, 2012) - Yasheng Group (OTCQB: YHGG) (PINKSHEETS: YHGG) (XETRA: YSF), a high-growth diversified China-based agricultural company with US headquarters in California, today announced plans to expand farming operations in 2012.

Drip Irrigation

Yasheng Group currently utilizes advanced drip irrigation technology, which enables crops to get the best moisture and nutrients, reduces weed growth and use of pesticides, increases average yield per acre by 30%, saves over 40% of water use, and is radically changing traditional farmland irrigation in China.

In 2012 Yasheng Group plans to begin building a new 57,000 acre water-saving drip irrigation system on its existing farmland, which will further increase yield per acre.


Yasheng Group will also expand alfalfa production, with the goal of becoming a leading supplier for China's "healthy milk" market. Alfalfa dry matter contains 15% -26% of crude protein, which can significantly improve milk protein content. The company currently has a base which supports 19,000 acres of alfalfa with an annual production of 50,000 tons of hay, and 80,000 acres of appropriate uncultivated farmland, which is sufficient to support the further expansion of the alfalfa business.


Yasheng Group's potatoes are mainly used for finished-goods processing and are sold to well-known enterprises such KFC, Pepsi, and Oishi. The company's potato products are primarily order-processed, which reduces the negative impact of fluctuations in prices. Tiaoshan, one Yasheng Group's largest subsidiaries, currently produces over 70,000 tons of potatoes on 5,000 acres of farmland annually.

This year Yasheng Group will further develop its potato deep-processing business, and is working to add a 5,000 ton potato processing line to further integrate its supply chain.

Yasheng Group

Yasheng Group, 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 led by a highly qualified management team and has total assets of approximately $2.0 billion, over 15,000 employees, and a history of strong sales and earnings growth. Please visit our website and register to receive future press releases directly.

Yasheng Group currently generates revenue in China. The company does not export from China to The United States. It has plans to begin exporting from the United States and is committed to the long-term relationship between the two countries.

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.