Yasheng Group, through its subsidiaries, designs, develops, manufactures, and markets farming and sideline products; chemical materials and products; textiles; construction materials; and livestock and poultry primarily in the People’s Republic of China. Products The company’s food and agro-byproducts are processed primarily from specialty agriculture products grown in Northwest China in six agricultural product categories, such as fresh fruits, vegetables, field crops, specialty crops, seeds, and eggs. Its primary product offering includes approximately 30 major agriculture products under 6 product categories with the major products, including field crops, such as cotton, corns, barley, wheat, flax, and alfalfa; vegetables, such as onions, potatoes, beet, and peas; fruit, such as apples, pears, and apricots: specialty crops, such as hops, wolfberries, cumin, hemp, and liquorices; seeds, such as black melon seeds, sunflower seeds, corn seeds, flax seeds, and hemp seeds; and poultry, such as eggs. It also produces various additional fresh fruits and vegetables, which supply the local and provincial markets. The company sells products through a nationwide sales and distribution network covering 19 provinces and approximately 121 cities in China. As of December 31, 2014, the company had approximately 238 distributors and 41 direct clients. The company’s products are also sold directly to food processors, as well as processed within company and then resold to supermarkets or other distributors, or further processed into retail food products. The company also sells fresh products within Gansu province, as well as nationally to food processors and distributors, or directly to the supermarkets. The company’s customers are based primarily in China and include national and international companies. The company’s products are also sold as feed for livestock, ingredients for Chinese traditional medicines, as well as other important ingredients in the food industry. Strategy The company’s strategies include the following: hold and grow existing domestic market positions with premium quality products with a focus on customer satisfaction with consistent availability; continue the transformation from the collective family farms to industrial scale farming resulting in more control over the quality, consistency, and yields of products; expand product line with new byproducts by utilizing modern processed food technology; strengthen industry research focusing on shifting trends and demands for strategic cultivation; continue to implement product quality upgrades through high tech agro technology; expand domestic and international business development and sales departments to open the doors to new markets; expand animal husbandry division, agriculture chemicals, fertilizers, animal feed, and environmental products and continue to implement the vision as leading company in sustainable agricultural practices; and continue to develop high end environmental products. Seasonality As a result of seasonal sales price fluctuations, the company has historically realized a greater portion of net sales and of gross profit during certain quarters of the year. The sales price of agricultural products item fluctuates throughout the year due to the supply of and demand for that particular item, as well as the pricing and availability of other agricultural items, many of which are seasonal in nature. Sales and Distribution The company’s products are sold directly to buyers and distributed through food suppliers. It sells products to both distributors and direct customers across 19 provinces in China, including Gansu, Shanxi, Beijing, Shandong, Liaoning, Guangdong, Tianjin, Shanghai, Ningxia, Qinghai, Hebei, Inner Mongolia, Xinjiang, Jilin, Hubei, Guizhou, Xizang, and Hainan. As of December 31, 2014, the company had approximately 238 distributors and 41 direct customers in China. Trademarks The company owns eight registered trademarks, YASHENG, TIAO SHAN, XIA HE QING, LV JIA, XING WEI, LIN DAN, JING TAI, TAI YU, JIUAN, and ANGEL STAR. Regulations The company is subject to the following regulations: The Company Law of the People’s Republic of China; Labor Law of the People’s Republic of China; Insurance Law of the People’s Republic of China; The Food Safety Law of the People’s Republic of China; Patent Law of the People’s Republic of China; Law of the People’s Republic of China on the Prevention and Control of Water Pollution; Law of the People’s Republic of China on Scientific and Technological Progress; and Energy Conservation Law of the People's Republic of China. Competition The company’s competitors include China National Cereals, Oil and Foodstuffs Corporation, and China Grains and Oils Group. History YaSheng Group was founded in 1998.
yasheng group (HERB:OTC US)
805 Veterans Boulevard
Redwood City, CA 94063
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