China Growth Stocks

[derek2000]

YONG - CCG's reply.

I sent a quick email over to CCG, YONG's IR. The following is a reply:

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RE: YONG's PR at June 21, 2010
From: Crocker Coulson <[e-mail]>

We tried to make it very clear in the press release that this get them control over the distribution channel in their most important current province. Relative to the expected net income contribution and growth rate of the business the company felt that it was more advantageous to purchase it now. The move takes them closer to their end customers and it also removes the customer concentration risk of having one large distributor account for such a large portion of the sales.

There was no related party aspect to this transaction.

Thanks for your interest and let us know if there are other points we can help to clarify.

Best regards,

Crocker Coulson
President
CCG Investor Relations