SOURCE: Yasheng Group

October 25, 2010 14:13 ET

Yasheng Subsidiary Xiaheqing Becomes the Largest Hops Producer in China

REDWOOD CITY, CA--(Marketwire - October 25, 2010) - Yasheng Group (OTCQB: YHGG), a high-growth diversified China-based agricultural company with US headquarters in California, today announced that its subsidiary Xiaheqing Group has become the largest hops producer in China. With close to 40 years of experience of hops cultivation, Xiaheqing has taken the lead in 2010 and broken the national record with an output of 2.325 tons per acre.

Chairman Zhou Changsheng commented: "On August 6th Xiaheqing Group had the pleasure to host the first annual China Hops Festival in Jiuquan. It was attended by the leadership of the China Hops Association and by representatives from the National Breweries. Tsingtao, Beijing Yanjing, Huarun, and other major breweries participated in forum discussions about the development of the hops industry in China and internationally. Attendees also analyzed current market trends and strategies for further development of the hops industry in the Jiuquan region where Xiaheqing is located. We are pleased to report that all parties agreed to enhance cooperation to accelerate growth in the beer industry to meet the growing domestic demand for beer. This cooperation strengthens our supply chain and positions Xiaheqing for further continued expansion." 

According to the 2010 USDA GAIN Report "China Beer Market," China's beer industry is the largest in the world by production volume. In 2009, China's beer production increased by almost five percent to 43 billion liters from 41 billion liters in previous year. From 2006 through 2009 beer consumption increased by 10% annually.

Geologically the Jiuquan area where Xiaheqing is located is recognized as one of the best areas in the world for hops cultivation due to its long sunshine hours, large temperature differences between night and day, low humidity, and major evaporation, which creates an ideal climate. Xiaheqing hops are considered high quality hops and are popular among brewers in China, used, for example, by the Tsingtao brewery.

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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