Deyu Agriculture Corp. Adds New Subsidiary, Extends Business
Coverage to Northeast China
BEIJING,
Jan. 14, 2012 /PRNewswire/ -- Deyu
Agriculture Corp. (OTCBB: DEYU) (the "Company"), a Shanxi Province, China based vertically integrated producer,
processor, marketer and distributor of organic and other
agricultural products made from corn and grains, announced today
that the Company formed a 99% owned subsidiary, Jilin Jinglong
Agriculture Development Limited ("Jinglong"), which is primarily
engaged in the procurement, storage and sales of corn and
grain.
In October
2012, Jinglong was incorporated in Jilin Province, one of the three Provinces of
Northeast China, with registered
capital of approximately US$3.2
million. The Provinces of Northeast China are some of the nation's top
crop producing areas. According to the China's National Bureau of Statistics, in
2011, crop production from these regions collectively reached
approximately 107.8 billion kilograms, which was approximately
18.9% of China's total crop
production.
Regions in Northeast China are especially rich in the
production of corn, rice and various types of grains, including
soybeans, kidney beans and sunflower seeds. The area as whole is
situated around the same Latitude (45° of North Latitude) as the
U.S. and Ukraine corn belts, which
are collectively known as the world's three "Golden Corn Belts."
"Setting up Jinglong is a major step
for us in further developing our agriculture production chain,"
said Jianming Hao, Chief Executive
Officer of Deyu. "With its strategic location in Jilin Province, we expect that Jinglong will
play a pivotal role in extending our business coverage to the whole
Northeast Region of China.
Furthermore, by establishing a more complete value chain from the
farm to the market, we are looking to strengthen our commitment to
providing organic and green products, as we anticipate that
Jilin will help us better ensure
quality and efficiency, as well as fortify our resources to develop
a more diversified product portfolio."
About Deyu Agriculture
Deyu Agriculture Corp. is a vertically
integrated agricultural value chain from farmland to consumer
market, which produces, processes, markets and distributes organic
and other agricultural products made from corn and grains operating
in Shanxi Province in China. The Company has access to over 109,000
acres of farmland in Shanxi
Province for breeding, cultivating, processing, warehousing
and distributing grain and corn products. Deyu Agriculture Corp.
has an extensive wholesale network in over 15 provinces and a
retail distribution network of approximately 20,000 supermarkets
and convenience stores in 29 provinces across China. Deyu Agriculture Corp.'s facilities
include sophisticated production lines and modern warehouses with a
total production capacity of over 105,000 tons for grain products,
storage capacity of over 100,000 tons and annual turnover of
700,000 tons for corn products. The Company's website is located at
www.deyuagri.com.
Safe Harbor
Statements
This press release contains
forward-looking statements made under the "safe harbor" provisions
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statements are based upon the current plans,
estimates and projections of Deyu Agriculture Corp.'s management
and are subject to risks and uncertainties, which could cause
actual results to differ from the forward looking statements. Such
statements include, among others, those concerning market and
industry segment growth and demand and acceptance of new and
existing products; any projections of sales, earnings, revenue,
margins or other financial items; any statements of the plans,
strategies and objectives of management for future operations; any
statements regarding future economic conditions or performance;
uncertainties related to conducting business in China, as well as all assumptions,
expectations, predictions, intentions or beliefs about future
events. Therefore, you should not place undue reliance on these
forward-looking statements. The following factors, among others,
could cause actual results to differ from those set forth in the
forward-looking statements: business conditions in China, general economic conditions;
geopolitical events and regulatory changes, availability of
capital, changes in the agricultural industry, the Company's
ability to maintain its competitive position. Additional
Information regarding risks can be found in the Company's quarterly
and annual reports filed with the U.S. Securities and Exchange
Commission at www.sec.gov.
Investor Contact:
Deyu
Hotline: +1-646-499-5475
Mr. Greg
Chen, President
Deyu Agriculture Corp.
Tel: +1-646-820-8085
Email: gregchen@china-deyu.com
Ms. Amy
He, Chief Financial Officer
Deyu Agriculture Corp.
Tel: +86-10-5224-1802 X389
Email: amy@china-deyu.com
Mr. Kevin Ma
NUWA Group LLC
Tel: +1-212-984-1869
Email: qma@nuwagroup.com
SOURCE Deyu Agriculture Corp.