BEIJING, Jan. 6 /PRNewswire-Asia/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye or "the Company") a leading manufacturer, developer and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced that the Company received government approval to Yongye's sole operating entity in the PRC, Yongye Nongfeng, for a preferential corporate income tax rate of 15% for the full years of 2009 and 2010.
Yongye Nongfeng accrued its income tax expenses for the first three quarters of 2009 based on the statutory income tax rate of 25%. Recently, Yongye Nongfeng received the approval from the local tax authority of Hohhot, Inner Mongolia Autonomous Region, that Yongye Nongfeng qualifies for a preferential 15% corporate income tax rate. As a result, Yongye will pay its income tax expenses for the full 2009 tax year based on the preferential 15% corporate income tax rate. The impact to first nine month earnings in 2009 prepared in accordance with U.S. GAAP is estimated to be a reduction of income tax expenses of approximately $3.1 million or an increase of $0.10 per diluted share. Corresponding accounting adjustment will be made in Yongye's 2009 annual financial reports."
"When added to the VAT exemption which we received in 2008, this preferential income tax rate provides us with additional financial strength to execute our strategic plan," said Mr. Zishen Wu, Yongye's Chairman and CEO.
About Yongye International, Inc.
Yongye International, Inc., headquartered in Beijing, is engaged in the manufacturing, development, distribution and sales of Shengmingsu brand plant and animal nutrient products. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock. Its sole operating subsidiary, Inner Mongolia Yongye Nongfeng Biotechnology Co., Ltd., is headquartered in Beijing with major operations located in Inner Mongolia, People's Republic of China. For more information, please visit the Company's website at http://www.yongyeintl.com .
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. 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 the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk 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:
Yongye International, Inc.
Mr. Larry Gilmore
VP of Corporate Strategy
Phone: +86-10-8232-8866 x8880
Email: larry.gilmore@yongyeintl.com
CCG Investor Relations, Inc.
Mr. Shaun Smolarz, Financial Writer
Phone: +1-646-701-7444
Email: shaun.smolarz@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com