China Growth Stocks

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YUII Yuhe International Inc. Completes Construction of Breeder Farm

WEIFANG, China, Dec. 22 /PRNewswire-Asia-FirstCall/ -- Yuhe International Inc. (NASDAQ:YUII) ("Yuhe" or "the Company"), a leading supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China ("PRC"), today announced that the Company completed the construction of a new breeder farm, bringing Yuhe's total number of breeder farms to fourteen

The new breeder farm covers an area of 142 acres. From the local government, Yuhe acquired the land use rights for 50 years for a total of RMB 14.2 million (USD $2.1 million). Yuhe intends to add approximately 55,000 sets of parent breeders to the new breeder farm on or before December 30, 2009, which will increase the company's total capacity of parent breeders to 1,205,000 sets

There are three additional new breeder farms under construction, one of which is expected to start operation after mid January 2010, with the other two to be completed by March 2010. In addition, Yuhe plans to introduce a new hatchery with 40 sets of hatchers by February 2010

"Our new breeder farms will allow us to further expand production of day-old broilers in order to meet China's growing demand for chicken," said Mr. Zhentao Gao, CEO of Yuhe. "As with our existing facilities, these farms will use sophisticated imported equipment and employ our high-quality production methods. We are confident that these facilities will come online as planned and enable us to achieve our 2010 production target of 150 million day-old broilers."