BEIJING, Feb. 25, 2014 /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, today announced,
based on its preliminary review of the Company's unaudited
consolidated financial statements, it was expected that the Company
would record a loss of between $24 million
and $28 million for the fiscal year ended December 31, 2013 as compared to a profit of
$16 million for fiscal year ended
December 31, 2012.
The expected loss was mainly attributable to: (i) the
substantial decrease in the gross margin of corn sales caused by a
decrease in demand in the corn market; (ii) the increase in cost of
raw materials for grain products; (iii) the increase in operating
expenses including, without limitation, freight costs, warehouse
and handling expenses and allowance of bad debts; and (iv) the
nonrecurring losses that occurred in 2013, which included
impairment losses of certain assets and corn inventory damages due
to weather related conditions.
"China's on-going economic
slowdown continued to impose challenges on our business in 2013,"
Mr. Greg Chen, Chief Executive
Officer of the Company commented. "Given that the decrease in
demand of corn from the downstream industries, another good corn
harvest in 2013 and anticipated increases in corn imports with low
prices, we anticipate the oversupply in the corn market will
continue to impact our business in the coming months. The Company
has been undertaking measures to optimize operations, to increase
efficiency and to reduce operational costs. At the same time, the
Company is continuing its business development initiatives. We
expect these measures, together with new business development, will
help us get through this difficult period and restore the growth in
the future."
The information contained in this announcement is only based on
a preliminary assessment by management in accordance with the
unaudited accounting balance of the Company for the year ended
December 31, 2013, and is not based
on any information or figures which have been audited or reviewed
by the Company's independent auditors and may be subject to
possible adjustments. Shareholders and potential investors are
advised to read carefully the annual report on Form 10-K of the
Company for the year ended December 31,
2013, which is expected to be filed in March 2014.
About Deyu Agriculture Corp.
Deyu Agriculture Corp. is a vertically integrated producer,
processor, marketer and distributor of organic and other
agricultural products made from corn and grains operating in
Shanxi Province in the People's Republic of 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.
We have a nationwide sales network covering manufacturers, grain
traders, wholesalers, distributors, institutional clients and
retail stores in 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.
Company Contact:
Mr. Greg Chen, Chief Executive
Officer
Deyu Agriculture Corp.
Tel: +1-646-499-5475
Email: gregchen@china-deyu.com
Ms. Amy He, Chief Financial
Officer
Deyu Agriculture Corp.
Tel: +86-10-8273-2870 x8522
Email: amy@china-deyu.com
SOURCE Deyu Agriculture Corp.