JUNAN COUNTY, Shandong, China, May 12 /Xinhua-PRNewswire-FirstCall/ -- American Lorain Corporation (OTC Bulletin Board: ALRC) ("American Lorain" or the "Company"), an international packaged foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that it has signed two contracts worth $2.3 million, with Harbin Gaotai Food Co. Ltd ("Gaotai").
The two contracts, worth $2.3 million in sales for 48 containers of processed chestnuts, will be distributed to the European market via the French food processing company, Gyma Surgeles, a Gaotai customer. Of this, the first contract for $0.5 million worth of goods will be delivered by end of June 2008. The second contract worth $1.8 million will be delivered by end of August 2008. The Company has realized $90,000 in sales of three containers of processed chestnuts under these contracts to date. Additional chestnut contracts for the European market are expected.
"We are very excited about the new opportunity we have through Gaotai to expand out European market," said Mr. Si Chen, Chief Executive Officer of American Lorain. "Expanding our presence to the European markets is a very important step in our strategy to diversify our international business risk beyond Japan and South Korea. In addition, we are glad to expand our export sales, as the export markets command higher margin than sales of similar goods to domestic markets."
In 2007, the Company's chestnut sales to the European market stood at $4.7 million or 5.8% of total sales generated by the Company. With the addition of new business generated from Gaotai, the Company is expected to increase the percentage of total sales to the European region to 8-10%, in 2008. The Company reaffirms that it expects to meet or exceed the "make-good" provision of $12.956 million in after-tax net income for fiscal year 2008 related to the May 2007 private placement.
About American Lorain Corp.
Shandong Lorain, an indirectly owned subsidiary of American Lorain Corp., was founded by Mr. Si Chen, CEO of American Lorain, in Shandong Province, People's Republic of China, 1995. When American Lorain started its operations in 1995, the Company sold chestnut products. However, in 2002, the Company entered the canned, frozen and bulk foods packaged market and in 2004, the Company entered the convenience foods packaged market. Although, the Company's chestnut products are mostly for sales to international markets, the convenience food, and frozen, canned and bulk food products are for sale in the domestic market, in China.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains certain statements that may include 'forward-looking statements' within the meaning of federal securities laws. All statements, other than statements of historical facts, included herein are "forward-looking statements." Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
American Lorain Corp
Mr. Gang Liu, Director of IR
Tel: +86-586-386-2276
Email: liugangqd@yahoo.com
Web: http://www.loraingroup.com
CCG Elite Investor Relations
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com