CHCL news -- running + volume
(COMTEX) B: CCI Reports on Positive Progress at Dong Wu Farm Receives
B: CCI Reports on Positive Progress at Dong Wu Farm Receives $5.8 Million
Contract for Animal Feed; Initiates Initial 2,000 Boar Goats Embryo Transfer
HONG KONG, Sep 19, 2000 /PRNewswire via COMTEX/ -- China Continental, Inc. (OTC
Bulletin Board: CHCL) announced today the signing of a $5.8 million contract for
animal feed and the initiation of embryo transfer activities at the Company's
Dong Wu farm.
Shang Jai Ji, Chairman of CCI, commented, "as stated in a recent press release,
the new management team determined that the Company should refocus its energies
on agricultural genetics that it believes is in the best interest of the Company
and its shareholders. As previously stated, we are pleased to report that the
Company will generate revenue from the Dong Wu Bio Tech Farm in both the third
and fourth quarter of this year from the harvesting of animal feed. Based on our
preliminary analysis, revenue for the third and fourth quarters will be
approximately US$2 million and US$4 million respectively."
Animal Feed
The Company has initiated harvesting of high quality forage grass for animal
feed. As of August 28, 2000, 15,000 tons of feed had been produced. The Company
expects at least another 50,000 tons will be harvested to fulfill a contract
with Beijing Fengrun Fine-Breed Husbandry to supply forage grass. The total
contract is for 65,000 tons, or approximately $5.8 million, all of which is to
be delivered before November 2000. The Company has received Rmb. 4 million, or
approximately US$482,000, as a deposit.
The Company plans to utilize American quality forage grass, which is superior to
the Chinese variation, adopt advanced cultivating and harvesting techniques, and
use high-tech equipment. Exports are planned to Japan, South Korea, Taiwan and
Southeast Asia in the fourth quarter of 2001.
The Company currently has 406 square kilometers of land, 50% of which will be
used to produce pollution-free grassland. Two hundred seasonal workers are being
employed for harvesting the grass.
Animal Husbandry
CCI is using Australian technology from Castella Research Pty Ltd. Two thousand
embryos are expected to be delivered to the farm in late October. Castella will
be providing several scientists together with Malcolm Roy Brandon, the Company's
Technical Director.
The Company's goals are to establish in China the most superior goat breed in
the world, Boer goats. Boer goat embryo production is currently based in
Australia. The group's intention is to establish embryo transfer technology,
services and sales for dairy cow embryos in addition to purebred goats in
Southeast Asia. The project will be initiated during the 2nd quarter of 2001.
The transfer center will be in Inner Mongolia.
CCI's new management team has had eight years of prior experience in the Chinese
agriculture and animal raising markets. With this successful experience, and
leveraging America's advanced agriculture and animal raising technology and
techniques, the Company plans to aid the technical development of the Chinese
market. The focus will initially be on embryo bioscience study and application,
agriculture and animal raising science as the Company's developing direction.
The following provides backgrounds on the scientific strengths of the Company.
Dr. Brandon is the Technical Director of the Company. He is also the Managing
Director of Castella Research Pty Ltd., an Honorary Professor of the University
of Inner Mongolia, Principal Fellow of Centre for Animal Biotechnology, School
of Veterinary Science at The University of Melbourne and a Research Associate of
the Austin Research Institute, Austin & Repatriation Hospital. Dr. Brandon
received his Bachelor of Agricultural Science and PhD degrees at the University
of Sydney. He has over 26 years experience in basic research, development and
production of biological products. He has been a visiting professor of Oxford
University and Michigan State University.
Zhong Cheng Zhang is a leader in animal biology and has contributed greatly in
maintaining the Peoples' Republic of China's highly competitive research field.
He has established eight research projects with the Government and has over 30
years experience in biotechnology.
Shujing Li is primarily responsible for developing, researching and supplying
technologies in agricultural genetics. He established a state owned project
employing agricultural genetics to improve the equality of existing foodstuff.
He received his Doctorate degree in Agriculture Science from China Agricultural
University. He holds positions in the Chinese Youth Association of Science and
Technology, the Asian Society of Animal Biotechnology, the Chinese Society of
Animal Reproduction and the College of Animal Science and Technology.
Water Resources
In addition to agriculture and animal raising science, the Company has access to
pollution-free quality mineral water resources in mainland China. Its strategy
is to purchase additional water resources in the same region of the country as
the present farm. In the future, the Company intends to set up a joint venture
with an international bottling company and utilize its sales network to develop
and produce high quality drinking mineral water. The Company is at a very
preliminary stage in this process.
About China Continental, Inc.
China Continental, Inc., traded on the OTC Bulletin Board market since 1995. The
Company's agricultural genetics and farming activities are centralized in the
Inner Mongolia Province of China at its farm, Dong Wu, covering an area of 406
square kilometers to commercialize its genetically improved products.
Safe Harbor Statement
Except for the historical statements made herein, the statements made in this
release are forward-looking statements, including "Based on our preliminary
analysis, revenue for the third and fourth quarters will be approximately US$2
million and US$4 million respectively." and "As of August 28, 15,000 tons had
been produced. The Company expects another 45,000 tons will be harvested." Risk
factors that could cause actual results to differ materially from those
projected in forward-looking statements include, but are not limited to, general
business conditions, managing growth, and political and other business risks.
Although the Company believes that the forward- looking statements contained
herein are reasonable, it can give no assurance that the Company's expectations
are correct. All forward-looking statements are expressly qualified in their
entirety by this Cautionary Statement and the risks and other factors detailed
in the Company's reports filed with the Securities and Exchange Commission.
SOURCE China Continental, Inc.
CONTACT: Harvey A. Goralnick of FOCUS Partners LLC, 212-752-9445, or
chcl@focuspartners.com, for China Continental, Inc.
(CHCL)
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KEYWORD: China
INDUSTRY KEYWORD: BIO
MTC
SUBJECT CODE: OTC
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