Overview of Yongye
Yongye International is a leading developer, manufacturer, and distributor of Shengmingsu brand plant and animal nutrient products and is located in the People's Republic of China. While we have only been in operations a short amount of time, our predecessor company, Inner Mongolia Yongye Company, had over 15 years' operational history which it has passed on to us. From this experience, Yongye International, through its sole operating subsidiary in China, Yongye Nongfeng aims to inherit its predecessor company's managerial experience and corporate culture to continue emulating its long-term success. Through our long term research and development efforts, Yongye has developed proprietary extraction techniques and patented mixture processes for our plant and animal nutrient products which sell under the brand name of "Shengmingsu".
Taking lignite coal and leonardite coal as the raw materials and by applying modern extraction technologies, we produce a highly pure and natural liquid nutrient. Yongye's plant nutrient product can significantly increase the plant's output and nutritional value and improve the taste. As a result of receiving greater value in the marketplace, our product helps increase farmers' incomes and improves their living standard.
Directly addressing the need for greater efficiency and more stringent environment friendly requirements in the agricultural sector, Yongye's products dramatically increase the quality of crops and yields, and improve the health of livestock.
Yongye International's sole operating subsidiary, Yongye Nongfeng, is headquartered in Beijing, and carries out its main operations in the city of Hohhot, Inner Mongolia, PR China. Yongye International was successfully listed on the OTCBB Market in the U.S.A. in April 2008 and now trades on the Nasdaq Global Select Market under the ticker of YONG. The majority of the Company's sales take place through a network of provincial level distributors and a retail sales model which includes a unique community based branded store footprint.
1. Greater yields, more production - sweet melon
In Tangshan, Hebei province, Mr. Shunli Yan sprayed Shengmingsu onto his sweet melon crop. He found that the melons onto which Shengmingsu was sprayed could be harvested up to 5 days earlier than those melons which did not receive any Shengmingsu. According to Mr. Yan, the previous year's production of sweet melons from his three sheds was very small, and generated total income of 30,000 RMB. This year, his yield was 7,000 grams of melons, which generated total income of 50,000 RMB, and his total income was 10,000 RMB more per mu.
2. Enhanced growth, stronger seedlings - cucumber
In 2007, Mr. Changliang Yang's cucumber seedlings were badly frozen after heavy snow falls in Cangzhou, Hebei province. After applying two bottles of Shengmingsu on them, they became stronger and their leaves became fuller and greener. Mr. Yang said, "With real effects, Shengmingsu helped my cucumber seedlings survive."
3. Resistance against disease and pests, improved effects - paddy
After using Shengmingsu, Mr. Guohua Lu in Huan'an, Jiangsu province saw his rice develop stronger individual plants and improved resistance against disease. His rice crop grew faster by an average of 4 to 5 days and were able to fight off the diseases which typically occur. Mr. Lu's average yields per mu increased by 18.6% and income per mu increased by 200 RMB.
4. Resistance against draught, prevention of frozen - chilli pepper
Located in a draught area, Mingqin county saw unprecedented snow in the spring of 2008. The county has 47 greenhouses. Mr. Yuhua Pei and five other households in Weiwu, Gansu province used Shengmingsu on their peppers in six greenhouses. Plants in 40 of the 41 other greenhouses froze to death. Plants barely survived in the one remaining greenhouse in which Shengmingsu was not used. Yuhua Pei said, "Shengmingsu has the amazing ability to help prevent plants from freezing."
5. Fights against continuous cropping, and reduces hazards to crops - cucumber
Ms Teng Zhang used streptomycin to prevent angular leaf spot disease on cucumbers. This caused burning, withering, fading, defoliation, and falling flowers and fruits. Three days after using Shengmingsu for the first time, life signs and normal growth returned to the cucumbers. Teng Zhang said, "Shengmingsu is a life-saving product!"
6. Improve product quality, better taste - white radish
Hohhot, Inner Mongolia
White turnips sprayed with Shengmingsu had stronger and faster growth, were fuller and crispier, and tasted sweeter than usual. They also went to market 10 days earlier than usual. Production per mu increased by 10,000 grams and total income per mu increased by 4,500 RMB.
7. Early maturity and longer picking period, higher price - tomato
According to Zhaoan Zhu in Weiwu, Gansu province, tomatoes sprayed with Shengmingsu were healthier and had a significant increase in disease resistance. They required a fifth as many fertilizer applications. Tomatoes sprayed with Shengmingsu went to market 17 days earlier than usual, and production increased by 1,200 kg per mu, generating additional total income of 2,800 RMB per mu.
8. Decrease in fertilizer residual, healthier products - cucumber
Xia Zhao in Cangzhou, Hebei province said that after using Shengmingsu, his cucumber plants grew longer, individual plant yields increased and his cucumbers tasted better. The harvest time increased by 20 days and production increased by 40%. Evidence showed that cucumbers absorbing "Shengmingsu" met all of China's national standards for green food.
China has a total of 155 million hectares of arable farm land and 1.3 billion people. This represents 7% of the world's arable land and 20% of the world's population. China's large population means that each hectare of land must feed an average of 10.3 people, versus 5.1 people in the European Union and 1.6 people in the United States. Because of its large population, China has only 0.04 hectare of arable land per person. This is approximately 50% of the amount of arable land per person in the United States (Source: US Census Bureau, www.census.gov). A limited amount of arable land and a large and growing population have created a significant need to increase the output of crops per hectare in China
As the China's economy continues growing, consumer demand for better quality food products is increasing. Food security has become a national priority in China. According to the China National Statistic Bureau, the proportion of middle class people in China will rise from 40% in 2005 to 66% in 2015. With a rapidly expanded middle class, consumer demand for better food products, "Green Food," is expected to grow.
Globally, crop nutrient demand remains very positive and has increased approximately 13% from 2006 to 2008 (IFA November 2008). In China, the demands for organic plant nutrients are expected to grow as concerns over food quality and environmental issues increase. Over reliance on chemical fertilizers has led to soil degradation and water pollution, raising the importance of alternative means of increasing productivity.
The Chinese government plans to spend approximately $169 billion, 1.6% of GDP, between 2006 and 2010 on projects associated with the environment. In 2007, China spent about $5.9 billion on direct subsidies for grain production and the purchase of agricultural materials, up 63% from 2006.The government currently is planning on additional farm subsidies, land reform initiatives and the elimination of certain agricultural taxes. It is promoting the production of organically grown products by setting new standards.
[b][u]Annotated Chart by BlackThought[/b][/u]