DGAP-News

Yasheng Group Announces Asset Swap for Premium Value Crops

DGAP-News: Yasheng Group / Key word(s): Miscellaneous
Yasheng Group Announces Asset Swap for Premium Value Crops

13.10.2015 / 14:00

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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/11233121000119983515000456/000119983
5-15-000456-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