WEIFANG,
The Company estimates that the unit cost per day-old broiler from
externally-produced eggs purchased via these contracts will range between
At the time of the contract signings, all of the parent breeders were
between two and 39 weeks of age and over 90% of them were in the middle of or
close to entering their egg-laying cycle. The total egg-laying capacity of the
parent breeders is estimated to be between 55 million and 60 million eggs,
with more than 90% of the eggs expected to be produced before
Yuhe carefully inspected the quality of the breeder farms and the parent breeder stocks before entering into these supply contracts. Each supplier is obligated to continue to comply with Yuhe's quality control criteria on parent breeder mortality, broiler egg fertility, hatchability, and hatched broiler condition throughout its respective contract period.
Yuhe expects these supply contracts to benefit its cost structure by locking in favorable prices for external eggs; however, these contracts are not expected to impact the Company's projected broiler volume output. The Company continues to expect to achieve a total 2010 output of 150 million broilers and 2011 output of 250 million broilers.
"We believe that entering into these favorable supply contracts is an
example of our ability to use our industry expertise to capitalize on
opportunities in our market to optimize our input costs," stated Mr.
About Yuhe International
Founded in 1996, Yuhe is the largest day-old broiler breeder in
Cautionary Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Yuhe International
Mr. Vincent Hu, Chief Financial Officer
Phone: +86-536-7300-667
Email: vincent.hu@yuhepoultry.com
Mr. Jason Wang, Director of Investor Relations
Phone: +1-765-409-1844
Email: jason.wang@yuhepoultry.com
Web: http://www.yuhepoultry.com
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
SOURCE Yuhe International, Inc.