DAQING, China, June 22, 2011 /PRNewswire-Asia-FirstCall/ --
China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China
Nutrifruit" or "the Company"), a leading producer of premium
specialty fruit based products in China ("PRC"), today announced that the
Company will complete construction of its new concentrate paste
production facility in Zhaoyuan, Heilongjiang Province and begin trial
production in July 2011.
In May 2011, China Nutrifruit
commenced construction of its new multi-purpose concentrate paste
production facility in Zhaoyuan city, Heilongjiang Province with an annual
production capacity of 9,600 tons. The Company's new multi-purpose
concentrate paste facility will cater to the raw material
requirements of the Company's new fruit and vegetable powder
production facility and will also be sold to its fruit concentrate
juice customers. The Company plans to begin trial production with
the production of concentrate tomato paste towards the end of
July 2011. The total capital
expenditure for the construction of this new concentrate paste
production facility is estimated to be approximately RMB 90 million (or $13.9
million) and management expects to finance the project
through cash on hand and cash flow generated from operations.
"The construction of our new multi-purpose concentrate paste
production facility is making significant progress and is on track
to begin trial production at the end of July
2011. This facility will come online in time for our peak
production season, contributing to our fiscal year 2012
operations," commented Mr. Changjun
Yu, Chairman and CEO of China Nutrifruit. "We have conducted
extensive research on our new concentrate tomato paste product and
expect to begin trial production following a ramp up of production
capacity to include other multi-purpose concentrate paste products.
Our concentrate paste products will be sold directly to our
customers in the food processing industry and can also be used as
raw material for our new fruit and vegetable powder production
line. Therefore, we anticipate our fruit and vegetable powder
production season to be extended beyond the harvest period,
positively impacting our future revenue growth and profitability.
With the introduction of our new products, including concentrate
paste and fruit and vegetable powder, we expect to deliver strong
financial and operational performance in fiscal year 2012."
About China Nutrifruit Group Limited
Through its subsidiaries Daqing Longheda Food Company Limited
and Daqing Senyang Fruit and Vegetable Food Technology Company
Limited, China Nutrifruit, is engaged in developing, processing,
marketing and distributing a variety of food products processed
primarily from premium specialty fruits grown in Northeast China, including golden berry, crab
apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its
processing facility possesses ISO9001 and HACCP series
qualifications. Currently, the Company has established an extensive
nationwide sales and distribution network throughout 18 provinces
in China. For more information,
please visit http://www.chinanutrifruit.com .
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). Such statements include, among
others, those concerning our new products, our new facility and
capacity expansion, and its expected impact on the Company's
business and financial performance, our expectations regarding the
market for our existing products and new products, our expected
financial performance and strategic and operational plans, as well
as all assumptions, expectations, predictions, intentions or
beliefs about future events. You are cautioned that any such
forward-looking statements are not guarantees of future performance
and that a number of risks and uncertainties could cause actual
results of the Company to differ materially from those anticipated,
expressed or implied in the forward-looking statements. The words
"believe," "expect," "anticipate," "project," "targets,"
"optimistic," "intend," "aim," "will" or similar expressions are
intended to identify forward-looking statements. All statements
other than statements of historical fact are statements that could
be deemed forward-looking statements. Risks and uncertainties that
could cause actual results to differ materially from those
anticipated include risks related to new and existing products; any
projections of sales, earnings, revenue, margins or other financial
items; any statements of the plans, strategies and objectives of
management for future operations; any statements regarding future
economic conditions or performance; uncertainties related to
conducting business in China; any
statements of belief or intention; any of the factors mentioned in
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended March 31, 2011, and
other risks and uncertainties mentioned in our other reports filed
with the Securities and Exchange Commission. The Company assumes no
obligation and does not intend to update any forward-looking
statements, except as required by law.
Company Contact:
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Investor Relations Contact:
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Mr. Colman Cheng, Chief
Financial Officer
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Mr. Crocker Coulson,
President
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China Nutrifruit Group
Limited
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CCG Investor
Relations
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Tel:
+ 852 9039 8111
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Tel: +1-646-213-1915 (NY
office)
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Email: zsj@chinanutrifruit.com
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Email: crocker.coulson@ccgir.com
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Website: www.chinanutrifruit.com
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Website: www.ccgirasia.com
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Linda Salo, Account
Manager
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Tel: +1- 646-922-0894 (NY
office)
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Email: linda.salo@ccgir.com
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SOURCE China Nutrifruit Group Limited