SOURCE: Yasheng Group

August 30, 2005 16:01 ET

YaSheng Group Sets New Standard in Domestic Potato Industry While Increasing Their Hops Production by 10%

REDWOOD CITY, CA -- (MARKET WIRE) -- August 30, 2005 -- YaSheng Group (OTC: YHGG) had established potatoes as a key product segment in the company's product portfolio. The potato segment generates approximately US $3.5 million in after-tax profit and creates a growing number of jobs for the company. Production output reached a record high of 18.21 tons per acre. Furthermore, the YaSheng Marketing department had established long-term sales contracts with a number of domestic food companies for distribution. Potato consumption in China is growing rapidly.

Since 1996, the company implemented drip irrigation technology in the potato plant base that grew from approximately 490 acres to 618 acres. The YaSheng Potato Plant Base enjoys favorable climate conditions in the North West region of China. The company places heavy emphasizes on the Management and Marketing for this key product segment with focus on "high quality high output" as the main competitive advantage to increase market share.

With support from YaSheng Group's Academy of Sciences Research department, the company was able to enhance the production cycle with improved seeds selection and the integration of raw materials. Since 2002, the company had invested in a number of facilities and equipment dedicated to potato production including multiple breeding bases of crop varieties that allows accurate measurement of growth, demonstration and testing.

Other production reports for the company includes the Hops division, which generated an output of 3397 tons, an increase of 10% compared with last year.

YaSheng serves as the main supplier and holds long-term contracts with giant domestic beer breweries such as Qingdao Beer, Yanjing Beer and Huarun Beer Group. The Vinylon/PVA division of YaSheng Group currently ranks 7th in China in terms of sales. The estimated sales revenue for this year is approximately 58.5 million dollars with 2 million dollars in after-tax profit.

About YaSheng Group:

The YaSheng Group (OTC: YHGG) is a diversified industrial conglomerate incorporated in Redwood City, California, operates in hi-tech agriculture, salt chemistry and biological technology as its core business with advantages in rich land, mineral resources, capital and technology reserves.

Through its 136 subsidiaries, the company operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing.

Forward-Looking Statements:

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations and statements of future economic performance. Statements containing terms like "believes," "does not believe," "plans," "expects," "intends," "estimates," "anticipates" and other phrases of similar meaning are considered to imply uncertainty and are forward-looking statements.

Contact Information