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China Nutrifruit Begins Production of Fruit and Vegetable Powder and Concentrate Paste Products

2011-09-22 20:02 844

DAQING, China, September 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced that the Company commenced production of fruit and vegetable powder and cherry tomato paste products on August 29, 2011.

In August 2011, China Nutrifruit's research team completed its stringent quality assessment and market research for the Company's new fruit and vegetable powder products. The Company's new fruit and vegetable powder products facility in Daqing has an annual production capacity of approximately 10,000 tons and management expects to ramp up capacity utilization during fiscal year 2012. For fiscal year 2012, China Nutrifruit plans to produce approximately 6,000 tons of fruit and vegetable powder products. In addition, the production of these powder products is expected to extend the Company's production season by approximately 30 to 60 days. The Company has begun production of tomato and carrot powder and plans to produce other popular fruit and vegetable powder products based on the feedback from its ongoing market research.

In May 2011, the Company commenced construction of a new multi-purpose concentrate paste production facility in Zhaoyuan city, Heilongjiang Province with an annual production capacity of 9,600 tons. The new multi-purpose concentrate paste facility will cater to the raw material requirements of the Company's new fruit and vegetable powder production facility and will also be sold to its fruit concentrate juice customers. For fiscal year 2012, China Nutrifruit plans to produce approximately 8,000 tons of cherry tomato concentrate paste products before ramping up production capacity and producing other types of concentrate paste products.

"The launch of our new powder and paste products marks another important milestone for China Nutrifruit. We believe these new products complement our current product portfolio and will help diversify our customer base," commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "We began our fiscal 2012 production season with the launch of our new golden berry dried fruits and golden berry glazed fruits. Following the introduction of our new products and successful execution of our capacity expansion plan, we are confident in achieving our projected revenue of approximately $110 million to $113 million and net income of approximately $29 million to $30 million in fiscal year 2012," added Mr. Yu.

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces in China. For more information, please visit http://www.chinanutrifruit.com .

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our new products, our new facility and capacity expansion, expansion of our production period, our ability to ramp up capacity utilization during fiscal year 2012, our expected production volume of fruit and vegetable powder products and cherry tomato concentrate paste products in fiscal year 2012, financial performance and resource efficiency, our expectations regarding the market for our existing products and new products, our expected financial performance in fiscal year 2012 and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to 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; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2011, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

Company Contact:

Investor Relations Contact:



Mr. Colman Cheng, Chief Financial Officer

Mr. Crocker Coulson, President

China Nutrifruit Group Limited

CCG Investor Relations

Tel: + 852 9039 8111

Tel: +1-646-213-1915 (NY office)

Email: zsj@chinanutrifruit.com

Email: crocker.coulson@ccgir.com

Website: www.chinanutrifruit.com

Website: www.ccgirasia.com




Linda Salo, Account Manager


Email: linda.salo@ccgir.com


Tel: +1-646-922-0894 (New York office)



Source: China Nutrifruit Group Limited
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