American Dairy Announces Acquisition by Subsidiary Feihe Dairy
24 11월 2003 - 10:00PM
PR Newswire (US)
American Dairy Announces Acquisition by Subsidiary Feihe Dairy LOS
ANGELES and KEDONG COUNTY, China, Nov. 24 /PRNewswire-FirstCall/ --
American Dairy, Inc. (BULLETIN BOARD: ADIY) , one of the leading
producers and distributors of milk, milk powder and related dairy
products in China, today announced that its wholly owned subsidiary
Feihe Dairy will acquire Heilongjiang-based Kedong BEIBEI Foodstuff
Co., Limited. American Dairy will acquire all outstanding shares of
Kedong BEIBEI Foodstuff Co., Limited. for a total equity
consideration of US$400,966, the appraisal value for the property
is over US$1,000,000. The property consists of land use rights of
40,000 square meters of land and 6,000 square meters of factory
building in Kedong County Heilongjiang Province, China. "This
acquisition demonstrates American Dairy's aggressive execution of
key expansion and business development strategies," said Leng
You-Bin, Chairman, Chief Executive Officer and President of
American Dairy. "Through the acquisition of Kedong BEIBEI
Foodstuff, Co., Limited's land use rights and processing capacity,
Feihe Dairy will establish a new production line of milk powder.
Leveraging our strong brand identity and reputation, we believe
that this new milk powder production line will be the premier line
of its class in China and among the top milk powder production
lines in the world. "Feihe will be able to process an additional
300 tons of fresh milk daily following the acquisition," You-Bin
added. "Already one of the largest independent dairy enterprises in
China, we compete with few large volume dairy processors, and most
of China's milk is produced by small scale, low production dairy
farming households. Our acquisition of Kedong BEIBEI Foodstuff,
Co., Limited. significantly increases our production scale in our
market region, and will enhance our efforts to capture a growing
share of the Chinese dairy market." Currently, American Dairy's
large-scale dairy production has annual processing power of 112,000
metric tons. American Dairy's access to cattle herds of
approximately 8,500 milk cows generate annual milk output of
approximately 30,000 metric tons. Affiliated farmers have grazing
rights covering over 516,000 acres in Kedong County in northeastern
China. About American Dairy, Inc. American Dairy, Inc. conducts
operations in the People's Republic of China ("China") through its
wholly owned subsidiary Feihe Dairy. Founded in 1962, Feihe Dairy
is one of the leading producers and distributors of milk powder,
soybean milk powder, liquid milk and related dairy products in
China. Feihe Dairy's 99% owned subsidiaries Sanhao Dairy and
Baiquan Feihe Dairy produce and supply processed milk to Feihe
Dairy. Forward-Looking Statements Statements in this document that
are not statements of historical or current fact constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the actual results of the Company
to be materially different from the historical results or from any
future results expressed or implied by such forward-looking
statements. In addition to statements which explicitly describe
such risks and uncertainties, readers are urged to consider
statements labeled with the terms "believes," "belief," "expects,"
"intends," "anticipates," "will" or "plans" to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in the Company's reports and
registration statements filed with the Securities and Exchange
Commission. For further information please contact: Karney Chang,
General Information, of American Eastern Securities,
+1-213-488-5131, ext. 106, , for American Dairy, Inc. DATASOURCE:
American Dairy, Inc. CONTACT: Karney Chang, General Information, of
American Eastern Securities, +1-213-488-5131, ext. 106, , for
American Dairy, Inc.
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