200, on CHCL, seems to me there is even more interesting previous news that WSW didn't highlight>
Tuesday December 14, 12:14 pm Eastern Time
Company Press Release
SOURCE: China Continental, Inc.
China Continental Aims to Be a Leader in High Technology Agricultural Genetics
China Continental Unveils a 5 Year Growth Plan For the Future Developments of Dong Wu
HONG KONG, Dec. 14 /PRNewswire/ -- China Continental, Inc. (OTC Bulletin Board: CHCL - news) announced today that it is implementing its strategy to become a significant agricultural genetics player in the Far East region in the next millennium. Today, the Company unveiled a five-year growth plan for its recently acquired high technology agricultural genetic farm, Dong Wu Bio Tech Farm.
In addition to the sale of superior livestock and embryos, the Company
plans to:
-- Increase its investment in research and development of embryo
techniques.
-- Build an animal feed mill to process grass resources into high quality
animal feed.
-- Set up a plant to develop unpolluted spring water into premium bottled
mineral water.
-- Set up an abattoir and a meat packing plant.
''There is a synergy among the business operations that we are planning as the products are all derived and processed in Dong Wu. We want to maximize the economic value of Dong Wu and aim to be a leader in this high technology, rapidly growing industry in China,'' said Mr. Harry H. H. Ho, Chairman and Chief Executive Officer of China Continental. ''We believe that we will be in that position within the next 3 to 5 years.''
Research and Development on Embryo Techniques
Currently, Dong Wu has an embryo transfer vehicle which is capable of producing 10,000 fertilized embryos monthly. In addition, it has a highly qualified team of five top genetic professors from China who will provide research and development on embryo techniques in the Company's laboratory.
Recently, this team developed commercial skills in embryo splitting and frozen crystallized embryo techniques. Embryo splitting technique separates one embryo into two or four embryos at an early developmental stage. Currently, Dong Wu's technique has a higher success rate than international standards. Dong Wu's crystallized frozen technique is more effective because it requires only 30 seconds to freeze embryos for embryo transfer, instead of the normal two minutes, thereby reducing costs.
If the Company's business plan is fully achieved, the management believes that the estimated profit of Dong Wu will be approximately $23 million by the end of calendar year 2001.
''We are able to obtain embryos at a very low cost because of the Company's breakthrough in commercial embryo techniques. Because of the low cost, the Company can sell superior embryo and breeding livestock at very attractive rates in the international markets. We believe that demand is growing in this field and the Company will focus its efforts in this area in the future,'' said Mr. Ho.
Dong Wu has recently applied for two patents in commercial techniques in China and it plans to invest more than $10 million in this field within the next two years.
Production of Animal Feed
Dong Wu has the quality grass needed for feeding high yielding livestock. Each acre of farmland can produce 293 kilograms of quality grass annually. Recently, the research team developed an animal feed formula designed to boost the metabolic protein supply. Using its own feed formula, China Continental plans to construct an animal feed mill to process the grass into high quality animal feed.
''In the future, we plan to become the largest supplier of animal feed in China. In addition to the domestic market, we also plan to export this feed to countries such as Japan and Korea, which traditionally have had a strong demand for animal feed,'' commented Mr. Ho.
Production of Mineral Water
The farm contains a source of unpolluted spring water producing 5,000 metric tons of mineral water every day. Tests conducted by the internal research team showed that the quality of the spring water is equivalent to that of mineral water. China Continental plans to develop the spring resource and set up a plant to produce premium bottled mineral water.
''The production of mineral water is a very lucrative business. In China, sales of the best selling brand of mineral water totaled $190 million for 1998. We believe that there will be significant growth for such products in today's health conscious society. We plan to negotiate with several European companies to develop this product in China,'' said Mr. Ho.
Production of High Quality Meat
Dong Wu plans to construct an abattoir and a meat packing plant by 2002 with the capacity to process 500,000 head of sheep and goats, and 40,000 head of cattle annually. Based on current prices, this would produce $400 million in annual revenues.
China Continental, Inc.
The Company currently designs, installs and sells production lines on a turn-key basis. Although the turn-key business continues to provide favorable cash flow, China Continental has diversified its business activities by capitalizing on the tremendous opportunities in the agricultural genetic industry in China. It is also engaged in the manufacturing and distribution of chemical fiber-related products and steel drums in China.
Dong Wu Bio Tech Farm
Dong Wu is located in Mongolia Province, China. It covers an area of 406 square kilometers. It is the largest agricultural genetic farm in China and is currently valued at $350 million based on its future potential, by an international appraisal firm. Recently, China Continental acquired Dong Wu at $190 million. Dong Wu is primarily engaged in the development and sale of superior livestock and products and it currently has 30,000 goats and cattle on the farm.
Except for the historical statements made herein, the statements made in this release are forward-looking statements. Factors that could cause actual results to differ materially from those projected in forward-looking statements include the Company's ability to capitalize on diversification opportunities, manage its growth, achieve operating efficiencies associated with the acquisition, integrate the operation of the business and the ability to successfully compete in their respective markets. 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 with the Securities and Exchange Commission.
SOURCE: China Continental, Inc.
|
