A Look at Yasheng ECO-Trade – YASH
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Yasheng ECO-Trade Corporation (YASH)
Website: www.YashengEcoTrade.com
“Yasheng Group The Parent Company of YASH Has Over Fifteen Thousand Employees with Offices in the U.S. and China. The Company Reported USD $656 Million in Revenue in 2007, and Net Income of USD $71 Million.”
Overview
Yasheng ECO-Trade (YASH) is an independent emerging resources company. The Company’s focus is on the acquisition, exploration, and development of undervalued assets. YASH’s objective is to find, acquire and develop resources at the lowest cost possible and recycle its cash flows into new projects yielding the highest returns with controlled risk
The company competencies include financial services, mergers and acquisitions, accounting, real estate development, and natural resources exploration.
Yasheng Group (The Parent Company)
Yasheng Group (The Parent Company) is a a diversified industrial conglomerate incorporated in California, which operates a group of companies engaged in the agriculture, chemicals and biotechnology businesses in the People’s Republic of China.
Through three major industries, Agriculture, Chemical, and Biotechnology, the company’s operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing.
The Company produces over 51 major products in Northwest China, seven of which have received the national ‘Green Award’ for meeting the environmental and health quality standards.
The Company’s products are sold in China as well exported to the U.S., Canada, Australia, Pakistan, Iran, and many other countries in Europe and Asia. Major customers include well-known companies; Tsingtao Beer, KFC, and McDonalds, among others.
China’s growing population and increasing demand for food, along with favorable policies from the central government, have created a favorable environment for Yasheng to grow its operations and businesses within China. The company has dedicated a considerable amount of resources in bringing advanced technologies to expanding its product lines and improved yield.
Yasheng Group employs over fifteen thousand employees with offices in the U.S. and China. The company reported USD $656 million in revenue in 2007, and net income of USD $71 million.
The Yasheng growth plan is to capitalize on its longstanding market leadership in the Chinese agriculture industry. At the same time, the Company is poised to expand further into the global market through organic growth and merger and acquisitions.
Yasheng ECO Trade Corporation is currently under a term sheet to acquire the Yasheng Group, pending board approval. This transaction is subject to the drafting of a final definitive agreement, performing due diligence as well as board approval of the Company.
YASH Investor Highlights
- Yasheng Group, the Parent Company of YASH has over fifteen thousand employees with offices in the U.S. and China. The company reported USD $656 million in revenue in 2007, and net income of USD $71 million.
- Announced that YASH has developed a strategy with UFX Bank, through an arrangement with a third party, to provide export currency hedging for Yasheng Group (“Yasheng”). Yasheng currently exports worldwide and trades goods in multiple currencies. Yasheng currency translations for 2008, per its audited financials, were over $87 million and have accumulated $238,919,350 since 2006. As a result, YASH, through the above described arrangement, is currently developing a hedging program to minimize Yasheng’s exposure to wide fluctuations in currency.
- The Asian Pacific Trade Zone is currently scheduled for construction to begin in 2009. The location of the project is in The California Enterprise Zone in Southern California. This strategic location provides easy access to all major export transportation services. The port of Long Beach & Los Angeles are within 45 minutes of the location and linked by a high speed container rail system.
- The projected economic impact of the Asian Pacific Trade Zone on the company are Annual Sales of almost $70 million with $21 million coming from import and export freight income, $16, million coming from domestic direct sales, $15 million from lease agreements with participating companies and the remaining $22 million coming from the sales of pharmaceutical and drip irrigation products.
- YASH recently announced that based on current market conditions and Federal and Local incentives available to the company, it has decided to move forward with leasing an existing building rather than building a new complex. Based on construction bids received from a general contractor, the cost of building the project would be in excess $70 million. In today’s market, a similar building can be purchased for $30 to $40 million. The company’s strategy is to lock in today’s prices with a lease with an option to buy. This allows the company to operate at a lower cost via low lease payments and still take advantage of reduced prices for the purchase. Chairman Rubin states further that “when we plug in the new cost structure to our business plan for the logistics center the feasibility is tremendously improved!”
- Announced it has has engaged Legend Transportation Group to consult on the development of its Logistics Center. As part of its effort to open the Yasheng Asian Pacific Cooperative Zone and Logistics Center before the end of 2009, Legend Transportation Group has been hired to provide expertise in transportation management systems, common carrier LTL services, full truck load brokerage, expedited services, pool distribution and vendor consolidation, freight management, bill audit and payment, green transportation and small carrier evaluation.
- Announced it has has signed an Agreement creating the Yasheng Group Russia. The Yasheng Group Russia, as part of a Joint Venture with Create Agrogroup Zao, will be developing an Eco-Trade distribution and logistics center in Russia similar to the one the company is currently working on in Southern California. The joint venture is the culmination of several months of negotiations headed by former Prime Minister of Tajikistan and ambassador to Russia Abdoumalik Abdoulladjanov. The first stage of the development is a Stock Breeding Complex in the Russian Federation. The purpose of the development will be to increase exports to China, which management believes will be a significant opportunity for the company. Create has been working for several years acquiring over 220 acres of land and has recently received approval to begin stage one of the developments.
- Announced it has has signed a Financial Advisor Engagement Letter with a foreign investment banking firm to obtain bank financing for the Yasheng Russia Breeding Complex. The expected cost of the project is $186 million that is projected to be completed in three stages over five years.
- Announced YASH has signed an agreement with Better Online Solutions (“BOSC”) for Consulting Services for the Yasheng Asian Pacific Cooperative Zone and the Yasheng Russia Live Stock Breeding Complex.
- Announced that Cukierman & Co. Investment House LTD. will work on behalf of YASH to identify potential acquisition target companies as well as facilitate YASH’s expansion into Europe and the Middle East. Cukierman & Co. Investment House Ltd is the leading European oriented investment house.
Asian Pacific Trade Zone
The goal of this venture is to build an international platform for driving Gansu Province and other Chinese Province’s overseas investment enterprises and exports. The project will be positioned to combine the agricultural and industrial advantages of the Gansu Province with the logistics and distribution services of the Cooperation Zone’s service platform to provide a basis for expanding markets through local representation.
The projected economic impact on the company are Annual Sales income of almost $70 million with $21 million coming from import and export freight income, $16, million coming from domestic direct sales, $15 million from lease agreements with participating companies and the remaining $22 million coming from the sales of pharmaceutical and drip irrigation products.
The project is currently scheduled for construction to begin in 2009. The location of the project is in The California Enterprise Zone in Southern California. This strategic location provides easy access to all major export transportation services. The port of Long Beach & Los Angeles are within 45 minutes of the location and linked by a high speed container rail system. The Southern California Logistics Airport is just 15 minutes south of the location with a full range of global.
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CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com