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Management Side
Yantai Completes Reverse Merger With China Agro-Technology
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Santa Monica, California, USA, 28 December 2007 -- /PRNewswire/ -- Yantai Dahua Holding Company (YDHCF) today announced that it has completed a reverse merger with China Agro-Technology, Ltd. The name of the listed company has been changed to China Agro-Technology Holdings Ltd.; a new stock symbol is expected in the coming days.

Yantai Dahua issued 288 million shares of common stock in exchange for all of the issued and outstanding shares of China Agro-Technology, Ltd. (CAT). As a result of the transaction, CAT became a wholly-owned subsidiary of Yantai Dahua.

CAT, an agro-biotechnology firm, has total revenues of USD 37 million in fiscal year ended 30 September 2007, with gross profit of USD 35 million and net income of USD 32.8 million.

Leveraging its many competitive advantages, CAT is executing the following strategies to broaden its market penetration, deliver results consistently, and increase shareholder value in the long term:

-- Focus on acquiring additional forestry plantation trees and access to
long-term supply of wood fiber in promising Chinese markets;
-- Continue to improve the yields at its plantations by investing in
research and development;
-- Leverage its unique non-tube plant propagation technology and broaden
its business scope into other products, such as bamboos, Jatropha, and
aromatherapy plants;
-- Continue to practice sustainable forestry management; and
-- Continue revenue & intellectual property growth through technology transfer.

CAT is also seeking to establish a strong market position in the bamboo cultivation industry, a USD 5 billion worldwide growth market, by leveraging its non-tube propagation technology. CAT's technology allows it to harvest bamboo within two years and increase unit yield by 20%-30%.

CAT will also seek diversified growth by cultivating a market for Jatropha, which produces seeds containing up to 40% oil. When the seeds are crushed and processed, the resulting oil can be used in a standard diesel engine, while the residue can be processed into biomass to power electricity plants. According to an 24 August 2007 "Wall Street Journal" article, which was also cited on CNBC on 14 September 2007, Goldman Sachs spotlighted Jatropha as one of the leading candidates for biodiesel production. CAT has signed a memorandum of understanding for 50,000 acres of Jatropha plantation in Indonesia.

CAT owns 100% of the capital in Tian Agro-Technology Ltd. (TAT); TAT owns 100% of the shares in Tian Agro-Technology Pte Ltd., a Singapore-incorporated company, which in turn owns 80% of the capital in Qing Yuan Zhao Tian Eco-Agriculture Co., Ltd. (QYZT). QYZT was set up in Qing Yuan City, Guangdong Province, China in 1997 for eucalyptus cultivation. QYZT currently owns and operates a 16,650-acre eucalyptus plantation.

About China Agro-Technology, Ltd.

CAT is an ecologically sustainable agricultural technology enterprise that aims at promoting a global reforestation program, generating environmental rehabilitation and serving the acute demands for paper products. CAT is primarily involved in the ownership, management, and operation of genetically engineered plantations, non-tube clone plantations, and the marketing of the proprietary rights and technological know-how to the global market.

CAT's strength is its group of highly innovative research scientists and agronomists who specialize in the R&D of agriculture and intelligent computer non-tube plant propagation technology. Driven by agro-biotechnology, CAT is able to achieve higher output with a shorter growth period. CAT's genetically engineered eucalypt tree (GEET) strains are suitable for cultivation at different climatic conditions. GEETS can grow to 35-40 meters within four or five years, as compared to other species that take about six to eight years to grow as tall. The company's trees also yield 50% more in wood timber, about 150 cubic meters per hectare as compared to 100 cubic meters per hectare for those which currently leads the world in eucalyptus production.

Other unique features of CAT's GEETs include increased resistance against pests and weeds, the ability to flourish under adverse weather and soil conditions, reduced usage of agrochemicals, and growth of at least eight rotations over a period of 50 years without the need for replanting of new saplings.

Source: China Agro-Technology, Ltd.
 

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