Message #2 From:
NewsBot Date: February 19, 2008 02:31:08 PM
China Dongsheng International, Inc. Enters into Letter of Intent to Acquire Strategic Ginseng Property
NEW YORK, Feb. 19 /Xinhua-PRNewswire-FirstCall/ -- China Dongsheng
International, Inc. (OTC Bulletin Board: CDSG.OB stock message board forums) (the 'Company') announced
today that it has reached final terms and entered into a letter of intent to
acquire land and ginseng crops in Jiaohe, Jilin Province for approximately
$8,965,900. At the closing, the Company will have successfully acquired land
use rights for the 3,133 acre property until February 7, 2034. This property
has been planted with approximately 18.8 million ginseng plants (or 6,000 per
acre) since 2004.
According to an independent evaluation from the Tonghua Huiyuan Ginseng
Institute, the property, which is located at Changbai Mountain (known as the
top ginseng production area of China), is a superior geographical environment
for the cultivation of high-quality forest ginseng. As the current market
price for 8 year-old ginseng is approximately $7 per plant, the total ginseng
crop on this property would be valued at approximately $132 million in 4 years
at today's market prices.
According to industry reports, high-end healthcare product sales in China
are expected to increase by over 13 percent annually, reaching $24 billion by
2010. Higher demand for ginseng related products in China is expected over the
coming years due to growing affluence and the aging population.
'This acquisition is another important step in our expansion plans to
vertically integrate our operations. The process began when we brought the
manufacturing of our chitosan based products in-house during the second
quarter in fiscal year 2008,' stated Aidong Yu, Chairman and President of
China Dongsheng, 'This source of raw materials for ginseng will be a strategic
asset for the Company as we continue our plan to enhance and expand our
product offerings. With our extensive distribution network, branded products,
expanded R&D team, and new GMP certified manufacturing facilities, the Company
is becoming increasingly well-positioned to take advantage of the growing
demand for healthcare products in China.'
About China Dongsheng International, Inc.
China Dongsheng International, Inc., through its 100%-owned subsidiary,
Jilin Dongsheng Weiye Science and Technology Development Co., Ltd, is engaged
in the development and manufacture of nutritional supplements and personal
care products domestically in China. The Company sells these products through
approximately 200,000 distributors (with 18,000 full time salespersons) and
2,500 retail outlets (with over 400 exclusive franchise stores) in twenty-six
provinces throughout China.
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'forward-looking statements' within the meaning of Section 21E of the
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Litigation Reform Act of 1995. Such forward-looking statements may be
identified by, among other things, the use of forward-looking terminology such
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forward-looking statements are made only as of the date of this filing, and we
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