New Plants in Tianjin and Changge under Construction Will Begin Production as Scheduled
CHANGGE and BEIJING, China, Sept. 22 /PRNewswire-Asia/ -- Zhongpin Inc. ("Zhongpin" or the "Company", Nasdaq: HOGS), a leading meat and food processing company in the People's Republic of China, today announced that its pork processing plants under construction in Tianjin and Changge have been promised subsidies by the Chinese government.
China's policies in 2009 have been encouraging meat processing companies to further modernize and improve their products and processes. Earlier this year, Zhongpin applied for subsidies which were approved by China's National Development and Reform Commission for its three new pork processing facilities.
Zhongpin's two plants in Tianjin, which are currently under construction and are scheduled to begin initial production in the first and third quarters of 2010, together have been promised a subsidy of RMB 20 million (about US$ 2.9 million) to help support the development of the plants. Upon the completion of all construction, the two plants will have a total annual capacity of 136,000 metric tons for chilled, frozen, and prepared pork products.
The Chinese government also promised a subsidy of RMB 13.8 million (about US$ 2.03 million) for Zhongpin's new Changge plant, located in the Henan province. This plant, currently under construction and scheduled to begin production in the fourth quarter of 2009, will have an annual capacity of 36,000 metric tons for prepared pork products.
Zhongpin was also awarded a subsidy of RMB 4 million (about US$ 0.6 million) to support the expansion and further improvement of its integrated production, cold-chain logistics, and information system.
In addition to being granted these subsidies, the Company won two awards at the Fifth International Meat Conference in Qingdao in September, 2009. At the conference, Mr. Zhu Xianfu, Chairman of Zhongpin, spoke on the subject of "The Application of Modern Technology to Further Upgrade the Meat Industry." During the conference, Zhongpin received the award as the "Most Valuable Brand in China's Meat Industry 2009." In addition, Ms. Guo Gengrui, Director of Zhongpin's Technical Center, won the award for "Science and Technology Innovation in China's Meat Industry 2009."
About Zhongpin
Zhongpin Inc. is a meat and food processing company that specializes in pork, pork products, vegetables, and fruits in China. Its distribution network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,000 retail outlets. Zhongpin's export markets include the European Union and Southeast Asia. For more information about Zhongpin, please visit Zhongpin's website at http://www.zpfood.com .
Safe harbor statement
Certain statements in this news release may be forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Zhongpin has based its forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its business strategy, results of operations, financial condition, and financing needs.
These projections involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include but are not limited to such factors as downturns in the Chinese economy, unanticipated changes in product demand, any effect from the A(H1N1) virus on Zhongpin's market or sales, interruptions in the supply of live pigs and or raw pork, poor performance of the retail distribution network, delivery delays, freezer facility malfunctions, Zhongpin's ability to build and commence new production facilities according to intended timelines, the ability to prepare Zhongpin for growth, the ability to predict Zhongpin's future financial performance and financing ability, changes in regulations, and other information detailed in Zhongpin's filings with the United States Securities and Exchange Commission.
You are urged to consider these factors carefully in evaluating Zhongpin's forward-looking statements and are cautioned not to place undue reliance on those forward-looking statements, which are qualified in their entirety by this cautionary statement. All information provided in this news release is as of the date of this release. Zhongpin does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.
For more information, please contact:
Zhongpin Inc.
Mr. Sterling Song (English and Chinese)
Investor Relations Manager
Tel: +86-10-8286-1788 x101 in Beijing
Email: ir@zhongpin.com
Mr. Warren (Feng) Wang (English and Chinese)
Chief Financial Officer
Tel: +86-10-8286-1788 x104 in Beijing
Email: warren.wang@zhongpin.com
Christensen
Mr. Yuanyuan Chen (English and Chinese)
Tel: +86-10-5971-2001 in Beijing
Cell: +86-139-2337-7882 in Beijing
Email: ychen@christensenir.com
Mr. Tom Myers (English)
Cell: +86-139-1141-3520 in Beijing
Email: tmyers@christensenir.com
Ms. Kathy Li (English and Chinese)
Tel: +1-212-618-1978 in the US
Email: kli@christensenir.com