Yasheng Group Announces Asset Swap for Premium Value Crops

REDWOOD CITY, CA--(Marketwired - October 13, 2015) - Yasheng Group, (OTCQB: HERB),a China-based agricultural growing Company with U.S. headquarters in Redwood City, California today announced that Yasheng's principal shareholders holding 90.17% of the outstanding shares of Yasheng Group, took Action by Consent without a Meeting approving the swap between Yasheng Group, Gansu Yasheng Salt Chemical Industrial Group, Gansu Asia-America Trade Co. Ltd and Gansu Yasheng Agro-Industrial and Commerce Group Co. Ltd. pursuant to which Yasheng Group will swap out all of its agricultural properties in exchange for certain long-term lease management rights in agricultural properties held by Gansu Yasheng Agro-Industrial and Commerce Group Co Ltd., our sister company.

A Preliminary Information Statement concerning the swap transaction was filed on October 6, 2015 with the Securities and Exchange Commission, copies of which are available at https://www.sec.gov/Archives/edgar/data/11233121000119983515000456/0001199835-15-000456-index.htm.

The swap out of Yasheng's existing agricultural assets will be effective 21 days after the final Information Statement is mailed to the Yasheng shareholders. The swap in portion of the transaction is already in effect.

The reason for the swap is that the agricultural properties of our sister company are rich in water resources and more suitable for farming than our properties. Furthermore, the mix of crops grown by our sister company are not as subject to downward price pressures as are our hop and cotton crops because they grow premium-value fruit and vegetables which can be sold at higher prices.

In the swap transaction, we received from our sister company, Gansu Yasheng Agro-Industrial and Commerce Co. Ltd, the long term lease management rights until 2039 of 76,557 mu (12,633 acres) of land in Taizhou City, Zhejiang Province, PRC, among which are: 24,300 mu (4,010 acres) of a broccoli plantation, 18,000 mu (2,970 acres) of a moso bamboo and bamboo shoot plantation, 25,200 mu (4,158 acres) of tangerine plantations, and 9,057 mu (1,495 acres) of a waxberry plantation.

Financial Terms of Swap

The swap of assets will be a non-currency transaction executed between Yasheng Group and our sister company whereby we swap our farmlands for those managed by our sister company Gansu Yasheng Agro-Industrial and Commerce Group Co., Ltd.

SUMMARY COMPARISONS

as of DECEMBER 31, 2014

Our Existing Balance Sheet		Our Pro-Forma Balance Sheet after the Swap
Total Equity & Liabilities: $2,480,030,368		$2,454,376,988
Our Existing Statement of Operations for Year Ended December 2014		Our Pro-Forma Statement of Operation after the Swap for Year Ended December 2014
Net Income: $138,935,086		$224,992,008 Pro Forma as if swap in effect for year ended December 2014
Our Existing Net Income Per Share: $0.90 based on shares outstanding per 2014 10-K		$1.45 Pro Forma net income per share as if swap in effect for year ended December 2014, based on shares outstanding per 2014 10-K

Chairman Ye Dong commenting on the swap said, "The new crops being swapped in will enable Yasheng to conduct high-efficiency agricultural operations in Southeast China. The new crops which we will be growing are all of premium value, and as a result should position Yasheng for future profitable growth."