SOURCE: Yasheng Group

December 13, 2010 08:30 ET

Yasheng Group's R&D Drives Growth of Hybrid Seed Segment

REDWOOD CITY, CA--(Marketwire - December 13, 2010) - Yasheng Group (OTCQB: YHGG), a high-growth diversified China-based agricultural company with US headquarters in California, reported several R&D achievements in the seed segment. Through its own genetic research and development efforts, including the cultivation of hybrid seed strains, processing, packaging, and storing, Yasheng does not rely on outside seed companies to control its ability to grow its main products and maintains a seed bank of all types of seeds. The current global seed market has been very active because of the shortage of quality seeds.

Yasheng develops corn, potato, transgenic soybean, transgenic cotton seeds, as well as many others. The R&D unit develops genetically modified seeds with higher yields and enhanced draught- and pest-resistance, for example; hybrid corn and potato seeds are producing 8% to 10% higher yields. The company's labs have also developed an improved soybean with oil content rising to 27% from 18%. Yasheng's advanced hybrid cotton seed produces velvet that is 4.2 mm longer than others and blooms in color. The company's pollination techniques are done by hand as well as through "heirloom" natural pollination supplied by Yasheng's internal bee operations which produces award winning organic honey products.

All seed products are cultivated within Yasheng's "Agro Bases" and are processed and packaged for resale and long-term storage for use within the company's operations. Yasheng sells approximately 80% of its corn seeds to outside companies and keeps the residual 20% of corn seeds and all other seeds for its own seed bank and internal operations. 

Yasheng Group grows sunflower, Black Melon, and flax seeds which are used in making oils, snack foods, or animal feeds. Several of Yasheng's "Agro Bases" are located in the Jiuquan, GanSu Province, one of the best places to grow seeds around the world, where the company does contract growing of seeds for domestic or foreign customers.

Chairman Zhou Changsheng said, "Yasheng was founded to become a self sufficient enterprise. We believe we are realizing this vision through our ongoing commitment to investing in R&D, responsible management of our natural resources, use of modern and organic agriculture techniques, international cooperation, and through the dedication and hard work of our people."

To learn more about Yasheng, you may wish to view our video on YouTube at this link: "Yasheng Group Introduction Video"

Yasheng Group

Yasheng Group (OTCQB: YHGG) (, 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 lead by a highly qualified management team and it has total assets of approximately $1.7 billion, over 15,000 employees, and a history of strong sales and earnings growth.

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.

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