China Dongsheng International, Inc. Enters into Letter of Intent to Acquire Strategic Ginseng Property
February 19 2008 - 8:00AM
PR Newswire (US)
NEW YORK, Feb. 19 /Xinhua-PRNewswire-FirstCall/ -- China Dongsheng
International, Inc. (OTC:CDSG.OB) (BULLETIN BOARD: CDSG.OB) (the
"Company") announced today that it has reached final terms and
entered into a letter of intent to acquire land and ginseng crops
in Jiaohe, Jilin Province for approximately $8,965,900. At the
closing, the Company will have successfully acquired land use
rights for the 3,133 acre property until February 7, 2034. This
property has been planted with approximately 18.8 million ginseng
plants (or 6,000 per acre) since 2004. According to an independent
evaluation from the Tonghua Huiyuan Ginseng Institute, the
property, which is located at Changbai Mountain (known as the top
ginseng production area of China), is a superior geographical
environment for the cultivation of high-quality forest ginseng. As
the current market price for 8 year-old ginseng is approximately $7
per plant, the total ginseng crop on this property would be valued
at approximately $132 million in 4 years at today's market prices.
According to industry reports, high-end healthcare product sales in
China are expected to increase by over 13 percent annually,
reaching $24 billion by 2010. Higher demand for ginseng related
products in China is expected over the coming years due to growing
affluence and the aging population. "This acquisition is another
important step in our expansion plans to vertically integrate our
operations. The process began when we brought the manufacturing of
our chitosan based products in-house during the second quarter in
fiscal year 2008," stated Aidong Yu, Chairman and President of
China Dongsheng, "This source of raw materials for ginseng will be
a strategic asset for the Company as we continue our plan to
enhance and expand our product offerings. With our extensive
distribution network, branded products, expanded R&D team, and
new GMP certified manufacturing facilities, the Company is becoming
increasingly well-positioned to take advantage of the growing
demand for healthcare products in China." About China Dongsheng
International, Inc. China Dongsheng International, Inc., through
its 100%-owned subsidiary, Jilin Dongsheng Weiye Science and
Technology Development Co., Ltd, is engaged in the development and
manufacture of nutritional supplements and personal care products
domestically in China. The Company sells these products through
approximately 200,000 distributors (with 18,000 full time
salespersons) and 2,500 retail outlets (with over 400 exclusive
franchise stores) in twenty-six provinces throughout China. Safe
Harbor Statement The statements contained herein that are not
historical facts are "forward-looking statements" within the
meaning of Section 21E of the Securities and Exchange Act of 1934,
as amended, and the Private Securities Litigation Reform Act of
1995. Such forward-looking statements may be identified by, among
other things, the use of forward-looking terminology such as
"believes," "expects," "may," "will," "should," or "anticipates" or
the negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy that involve risks and
uncertainties. In particular, our statements regarding the
potential growth of the markets are examples of such
forward-looking statements. The forward-looking statements include
risks and uncertainties, including but not limited to, general
economic conditions and regulatory developments, not within our
control. The factors discussed herein and expressed from time to
time in our filings with the Securities and Exchange Commission
could cause actual results and developments to be materially
different from those expressed or implied by such statements. The
forward-looking statements are made only as of the date of this
filing, and we undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances. Contact: Peter D. Zhou (212) 232-0058 DATASOURCE:
China Dongsheng International, Inc. CONTACT: Peter D. Zhou,
+1-212-232-0058, for China Dongsheng International, Inc.
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