CHANGGE, Henan, China, May 14 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (Nasdaq: HOGS), a leading meat and food processing company in the People's Republic of China ("PRC"), announced today no loss of life at its production facility in Sichuan Province, as a result of the Sichuan Earthquake, which severely affected Sichuan Province on May 12, 2008. Zhongpin has a processing facility of 45,000 metric tons annual capacity, accounting for approximately 12.5% of Zhongpin's total capacity of chilled and frozen pork, located in Cangshan County, Sichuan Province, which is approximately 200 kilometers away from the epicenter of the earthquake. A preliminary evaluation has revealed minor damage to its facilities in Cangshan County.
Following the earthquake, water and electricity supplies were interrupted, but resumed since the morning of May 14, 2008. However, considering the risk of aftershocks and the safety of its employees, Zhongpin is unable to determine when operations may resume. In light of the circumstances, Zhongpin is considering possibly relocating its Cangshan production to other facilities in central China that were not affected by the earthquake.
"We feel deeply sorry about the loss of life and severe damage to the community of Sichuan Province. We are ready to provide aid to the local victims of the earthquake and to assist in reconstruction efforts," commented by Mr. Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin. "During the period that production is suspended, we will continue to pay full salary and social benefits to our employees. We will continue monitoring and evaluating the rapidly changing circumstances and provide any updates on such changes accordingly."
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products, and fruits and vegetables, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,900 retail outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, contact CCG Elite directly or go to Zhongpin's website at http://www.zpfood.com .
Safe Harbor Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release constitute forward-looking statements within the meaning of Federal securities laws. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of the company's management and are subject to risks and uncertainties which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions interruptions in production due to natural disasters, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the company's filings and future filings with the United States Securities and Exchange Commission.
For more information, please contact:
Crocker Coulson, President
CCG Elite
Tel: 646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
Yuanmei Ma, Chief Financial Officer
Zhongpin Inc.
Tel: +86-10-8286-1788
