YaSheng Group, through its subsidiaries, designs, develops, manufactures, and markets farming and sideline products; chemical materials and products; textiles; construction materials; and livestock and poultry in the People’s Republic of China (China). The company also designs, develops, and markets new technologies related to agriculture and genetic biology. The company’s food and agro-byproducts are processed primarily from specialty agriculture products grown in Northwest China in six agricultural product categories, such as fresh fruits, vegetables, field crops, specialty crops, seeds, and eggs. Its primary product offering includes approximately 30 major agriculture products under 6 product categories with the major products, including field crops, such as cotton, corns, barley, wheat, flax, and alfalfa; vegetables, such as onions, potatoes, beet, and peas; fruit, such as apples, pears, and apricots: specialty crops, such as hops, wolfberries, cumin, hemp, and liquorices; seeds, such as black melon seeds, sunflower seeds, corn seeds, flax seeds, and hemp seeds; and poultry, such as eggs. It also produces various additional fresh fruits and vegetables, which supply the local and provincial markets. The company sells its products through a nationwide sales and distribution network covering 19 provinces and approximately 118 cities in China. As of December 31, 2013, it had approximately 232 distributors and 38 direct clients. The company’s products are also sold directly to food processors, as well as processed within the company and then resold to supermarkets or other distributors, or further processed into retail food products. It also sells majority of its fresh products within Gansu province, as well as nationally to food processors and distributors, or directly to the supermarkets. Its customers are based primarily in China and include national and international leading companies. The company’s products are also sold as feed for livestock, ingredients for Chinese traditional medicines, as well as other primary ingredients in the food industry. Sales and Marketing The company’s products are sold directly to buyers and distributed through food suppliers. It sells its products to both distributors and direct customers across 19 provinces in China, including Gansu, Shanxi, Beijing, Shandong, Liaoning, Guangdong, Tianjin, Shanghai, Ningxia, Qinghai, Hebei, Inner Mongolia, Xinjiang, Jilin, Hubei, Guizhou, Xizang, and Hainan. As of December 31, 2013, the company had approximately 219 distributors and 38 direct customers in China. It exports its products indirectly through the Chinese companies with import and export qualification and licenses. Its distributors sell its products to their various customers, including food processors, supermarkets, and wholesale stores. Strategies The company’s growth strategies include holding and improving existing domestic market positions with premium quality products with a focus on customer satisfaction with consistent availability; continuing the transformation from the collective family farms to industrial scale farming resulting in control through the quality, consistency, and yields of its products; expanding product line with new byproducts by utilizing modern processed food technology (such as CO2 extraction techniques, deep processing, concentrates technology, and bio mass for alternative fuels) that produces high quality products and environmental friendly products that meet the demands of the domestic and international markets; strengthening industry research focusing on shifting trends and demands for strategic cultivation; continuing to implement product quality upgrades through high tech agro technology; expanding domestic and international business development and sales departments to open the doors to new markets; expanding animal husbandry division, agriculture chemicals, fertilizers, animal feed, and environmental products and continuing to implement the vision as leading company in sustainable agricultural practices; internal and external acquisitions that bring added value in technology, management, production capabilities, and open up new markets and distribution points; and continuing to develop high end environmental products. Intellectual Property Trademarks: The company owns eight People’s Republic of China registered trademarks, such as YASHENG, TIAO SHAN, XIA HE QING, LV JIA, XING WEI, LIN DAN, JING TAI, TAI YU, JIUAN, and ANGEL STAR. Seasonality The company’s harvest seasons are from the end of June to mid-November. The sales price of its agricultural products item fluctuates throughout the year due to the supply of and demand for that particular item, as well as the pricing and availability of other agricultural items, majority of which are seasonal in nature. Regulatory Issues and Policies The company is subject to the Company Law of the People’s Republic of China; Labor Law of the People’s Republic of China; Insurance Law of the People’s Republic of China; the Food Safety Law of the People’s Republic of China; Patent Law of the People’s Republic of China; Law of the People’s Republic of China on the Prevention and Control of Water Pollution; Law of the People’s Republic of China on Scientific and Technological Progress; and Energy Conservation Law of the People's Republic of China. Significant Events In July 2014, Yasheng Group announced that it has entered into a joint venture agreement with Inner Mongolia Meng Yuan Agriculture Co. Ltd. The purpose of the joint venture is to create a new industrial hemp plantation and develop hemp products for domestic and export markets. Competition The company’s competitors include China National Cereals, Oil and Foodstuffs Corporation, and China Grains and Oils Group. History YaSheng Group was founded in 1998.
yasheng group (HERB:OTC US)
805 Veterans Boulevard
Redwood City, CA 94063
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