WEIFANG, Shandong, China, April 21 /PRNewswire-Asia-FirstCall/ -- Yuhe International, Inc. (Nasdaq: YUII) ("Yuhe" or the "Company"), a leading supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China ("PRC"), today announced that the Company extended the maturity dates of its RMB 56 million (approximately $8.2 million) bank loans to the first quarter of 2013. In addition, the interest rate on these loans was reduced to a fixed annual interest rate of 7.56% compared to the previous rates which varied between 8.64% and 13.82%.
The balance of Yuhe's bank loans was approximately $10.8 million as of March 31, 2010. The new terms for the bank loans will reduce the Company's average bank loan interest rate from 10.8% to 7.8%. The Company's incurred interest prior to any capitalized interest will decrease from RMB 8.2 million (approximately $1.2 million) per annum to RMB 5.9 million (approximately $0.86 million) per annum.
"We successfully renewed our bank loans at a lower interest rate because of our long term relationships and credibility with our local banks and thanks to China's recent policy to decrease the benchmark interest rate," commented Mr. Zhentao Gao, Chief Executive Officer. "As a result of these more favorable loan terms, we expect significant cost-savings and improved net income and cash flow for Yuhe. We will continue to focus on optimizing our capital and cost structure to build value for our shareholders."
About Yuhe International, Inc.
Founded in 1996, Yuhe is the second largest day-old broiler breeder in China. The Company's main operations involve breeding, as all broilers are sold within a day of hatching. With headquarters in Weifang, Shandong Province, the Company has modern facilities and is led by an experienced team which includes experts in chicken breeding, disease prevention and animal husbandry science. Yuhe has two operational subsidiaries, Weifang Yuhe Poultry Co. Ltd. and Weifang Taihong Feed Co. Ltd. which largely supplies the Company's internal demand for chicken feed. Currently, 90% of the Company's sales of day-old broilers are in Shandong Province through 28 local agents there. There are 10 other sales agents in adjacent provinces. The Company has imported state-of-the-art equipment from the United States, Germany and Japan and has passed ISO9001 certification, allowing it to adhere to international standards of operation. For more information on the Company and its products, please visit http://www.yuhepoultry.com .
Cautionary Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Yuhe International, Inc.
Mr. Vincent Hu, CFO
Phone: +86-536-7300-667
Email: vincent.hu@yuhepoultry.com
Mr. Jason Wang, Director of IR
Phone: +1-765-409-1844
Email: jason.wang@yuhepoultry.com
Web: http://www.yuhepoultry.com
CCG Investor Relations Inc.
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
Shaun Smolarz, Financial Writer
Phone: +1-646-101-7444
Email: Shaun.Smolarz@ccgir.com
Web: http://www.ccgirasia.com
