NEW YORK, Oct. 26 China Agri-Business, Inc.(OTC Bulletin Board: CHBU) a manufacturer and distributor of organicagricultural application products in China, opened its first "Fuqi YingyangFang", ("Lucky Seven Health Food Store" English translation), branded store inXian City, Shaanxi, China on September 8, 2009 under its "Fuqi" branded storeprogram. Fuqi Yingyang Fang is a branded prototype store with approximately1,720 square feet, (190 square meters). The store retails selected green,organic agricultural products as well as high-quality processed agriculturalproducts (such as eggs, rice, cereal grains, tea, fresh and dried fruits).This store also provides customized and value added food processing servicesto meet the diverse needs of consumers. In addition, in-store professionalnutritionists provide free dietary consulting services to customers inaccordance with their nutritional well being.
The Fuqi Yingyang Fang branded store program is intended to: (1) create anew market place for farmers to sell their green products and to realize thevalue of quality green products, especially for those who use the Company'sorganic fertilizer; (2) promote green agriculture products as well as theCompany's fertilizer products through the selling of green products; (3)create a new profit center for the Company to develop and maintain sustainablefuture growth; and (4) provide a better and more healthful choices forconsumers.
Commenting on the launch, Lipeng Deng, Chief Executive Officer of theCompany, stated, "A Fuqi Yingyang Fang branded store program is part of theCompany's market initiative, "New Agriculture-Generator", which began inSeptember 2008. We started with our Super Chain Sales Partner program and haveestablished 103 branded Super Chain stores as of today. Our Super Chain SalesPartner program is focused on establishing a direct sales network withfarmers. Fuqi Yingyang Fang branded store program is designed to help farmerssell green agricultural products grown using our organic fertilizer products.These two programs have formed a virtuous circle. Jointly, the two programsare expected to generate growth strength for the Company in the future. Weexpect the branded stores will benefit us as well as consumers."
The estimated cost per branded store is approximately $23,000 (150,000renminbi). The estimated revenue for each store is approximately $147,000(1,000,000 renminbi). The Company plans to invest approximately U.S. $2.3million (15,000,000 renminbi) and to establish 100 "Fuqi Yingyang Fang"branded stores nationwide in the PRC in the next three to five years.
ABOUT CHINA AGRI-BUSINESS, INC.
China Agri-Business, Inc., through its operating company in China, ShaanxiXin Sheng Centennial Agriculture and Technology Co., Ltd. manufactures andsells non-toxic fertilizer, bactericide and fungicide products used forfarming in China. Crops grown with Xinsheng's products are eligible to qualifyfor the "AA Green Food" rating administered by the China Green FoodDevelopment Center, an agency under the jurisdiction of the Ministry ofAgriculture of the People's Republic of China (However, our productsthemselves do not bear the "AA green food" designation). The green food ratingsystem consists of an "A" rating and a more stringent "AA" rating. The "AA"rating indicates that the crops contain minimal chemical residue fromfertilizers.
The Company's two primary product groups are organic fertilizer (XinshengLuyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has atotal of five brands and produces more than 50 different applications,including products designed to stimulate plant growth, condition soil, andprevent and cure plant diseases and parasites. The Company has products for avariety of crops, including potatoes, vegetables, cotton and fruit plants, andorchard trees. The products can be used either alone or to supplement otherproducts. The Company's Xinsheng's manufacturing facilities are located inXian, Shaanxi Province, China.
Safe Harbor and Cautionary Statement
This document contains forward-looking information about the Company'soperating results and business prospects that involve substantial risks anduncertainties. Statements that are not purely historical are forward-lookingstatements within the meaning of Section 21E of the Securities Exchange Act of1934, as amended, and Section 27A of the Securities Act of 1933, as amended.These statements include, but are not limited to, statements about theCompany's plans, objectives, expectations, strategies, intentions or othercharacterizations of future events or circumstances and are generallyidentified by the words "may," "expects," "anticipates," "intends," "plans,""believes," "seeks," "estimates," "could," "would," and similar expressions.Because these forward-looking statements are subject to a number of risks anduncertainties, the Company's actual results could differ materially from thoseexpressed or implied by these forward-looking statements. Factors that couldcause or contribute to such differences include, but are not limited to, thosediscussed under the heading "Risk Factors" in the Company's annual report onForm 10-K for the fiscal year ended December 31, 2008 and other documents ofthe Comapany files with the United States Securities and Exchange Commissionand available at www.sec.gov. The Company assumes no obligation to update anysuch forward-looking statements.For additional information, please contact: China Agri-Business, Inc. Building 2, Unit 1, 15th Floor Ling Xian Xin Cheng 86 Gaoxin Road Hi-Tech Industrial Development Zone Xian, Shannxi, China 710065 Tel: +86-29-6859-6556, +86-29-6859-6557 Fax: +86-29-6859-6589 Web: http://www.chinaagri-business.com Michael Segal, Director Tel: +1-212-348-5600 Fax: +1-212-348-5601 Email: [email protected]
SOURCE China Agri-Business, Inc.