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| | Business Summary: Yuhe International, Inc. is a supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China. The company's day-old broilers are primarily sold, through third-party distributors or directly, to broiler farms and integrated chicken companies. | | | Address
301 Hailong St
Weifang
, Shandong Province 000000
Phone: 86-536-736-3688
Website: http://www.yuhepoultry.com
| | Auditor |
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Child, Van Wagoner & Bradshaw
| | Transfer Agent |
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Interwest Transfer Co. Inc.
| Employees: 1,230
ShareHolders: 46 | Founded: 1997
Domicile: Nevada | | | |
| | Yuhe International, Inc. is a supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China. The company's day-old broilers are primarily sold, through third-party distributors or directly, to broiler farms and integrated chicken companies. The company's operations are conducted exclusively by its subsidiaries in China.
The company purchases parent breeding chickens from grandparent breeder farms and raises them to maturity. Once these parent breeding chickens have matured, they produce hatching eggs that the company incubates. Yuhe then sells the resulting day-old broiler chicks to its customers.
Yuhe operates 13 breeder farms and two hatcheries with an annual capacity of 1,150,000 sets of breeders and 100 hatchers. It also operates two feed mills with an aggregate annual capacity of 52,000 metric tons. The company's primary geographic markets are Shandong Province and the ten surrounding provinces and special municipalities, which are Jiangsu, Anhui, Henan, Hebei, Jilin, Liaoning, Heilongjiang, Tianjin, Beijing, and Shanghai.
Typically, a breeder is capable of producing approximately 167 eggs which will be hatched to 137 broilers over its production lifetime, and the breeders are maintained by the company for a period of 420 days. The company sources its parent breeder chickens from licensed suppliers located in Beijing, and Shandong and Jiangsu provinces.
In addition to selling day-old broilers, the company also sells related chicken products, non-productive parent breeders, and a small amount of feed for livestock and poultry. While the company produces substantially all of its inventory of hatching eggs through its own parent breeders, it occasionally purchases additional hatching eggs from unaffiliated third parties to meet market requirements.
Yuhe sold 75,000,000 day-old broilers in 2008.
The company's customers are principally comprised of distributors and end users such as integrated chicken companies, broiler raising companies and individual broiler raisers. Approximately 85% of the company's total sales are made through third-party distributors. | | History: INCORPORATED in Nevada Sept. 9, 1997, as First Growth Investors, Inc.; name changed to Yuhe International, Inc. Apr. 4, 2008.
March 12, 2008, acquired Bright Stand International Co., Ltd. for 8,626,318 (post-split) Common shares. Bright Stand was incorporated in the British Virgin Islands Aug. 3, 2007. | | | | Subsidiaries: |
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Bright Stand International Limited
Weifang Taihong Feed Co. Ltd.
Weifang Yuhe Poultry Co. Ltd.
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Management
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| Officers | Position |
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| Zhentao Gao | Chairman, President & Chief Executive Officer | | Hu Gang | Chief Financial Officer | | Crocker Coulson | Investor Relations Contact |
| | Directors |
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| Zhentao Gao | | Chengxiang Han | | Greg Huett | | Peter Li | | Yaojun Liu | | | |
| | | | Capitalization as of 12/31/2008: | | | | | Authorized Shares | Outstanding Shares |
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| Preferred $0.001 par | 1,000,000 | None | | Common $0.001 par | 500,000,000 | 15,722,178 |
| | | | LONG TERM DEBT: $9,410,289. | | | | Common $0.001 par | | | | COMMON SOLD PRIVATELY: March 12, 2008, the company completed a private placement of 5,829,018 (post-split) Common shares for an aggregate purchase price of approximately $18,000,000. | | | |
Stockholders:
03/31/2009,
46.
| | PRINCIPAL STOCKHOLDERS: March 19, 2009, Kunio Yamamoto owned or controlled 48.7% of the Common, Black River Small Capitalization Fund Ltd. 8.2%, Pinnacle Fund, L.P. 7.7%, Pinnacle China Fund L.P. 7.7%, Ardsley Partners Fund II, LP 7.2%, and Black River Commodity Select Fund Ltd. 6.2%. | | | |
Transfer Agent: Interwest Transfer Co. Inc.
Salt Lake City
, UT | | | | OTC Bulletin Board( Primary): YUII | | | | Exchange | Year | High | Low |
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| OTC Bulletin Board | 2008 | 8.0000 | 4.0000 |
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| | | | RECENT DIVIDENDS: Common $0.001 par: 2007, $0.21; 2008, No cash.
Common reverse split 1-for-14.70596492, Apr. 7, 2008. | | | | | |
| | Annual Report |
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| | | Income Statement | |
| 2008 | 2007 |
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| Net sales | 34,626 | -- | | Cost & exps. | 22,810 | 2 | | Oper. income as calculated | 11,816 | (2) | | Interest income | 250 | -- | | Gain on disposal of fixed assets | 85 | -- | | Bad debts recovery | 813 | -- | | Other income (expense), net | (9) |
| | Total income | 12,955 | (2) | | Depr. & amort. | 1,727 | -- | | Interest exp. | 703 | Nil | | Net income | 10,525 | (2) | | Share earns. basic | $0.74 | Nil | | Share earns. diluted | $0.73 | Nil | | Avge. com. shs. (Thou.) | 14,477 | 8,626 |
| | | | Balance Sheet | |
| 2008 | 2007 |
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| Assets: |
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| | Cash & equiv. | 13,412 | 1,050 | | Advances to suppliers | 4,473 | -- | | Accts. rec., net | 1 | -- | | Inventories | 6,645 | -- | | Tot. curr assets | 24,531 | 1,050 | | Deposits paid for acquisition of long term assets | 2,281 | -- | | Receivables, net | 74 | -- | | Due from related companies | 3,707 | 1,000 | | Net property | 27,112 |
| | Intangible assets, net | 2,910 | -- | | Other assets | 904 | -- | | Total assets | 61,519 | 2,050 | | Liabilities: |
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| | Curr debt. mat. | 1,357 | -- | | Loan from director | 292 | -- | | Due to related companies | 211 | 2 | | Accts. pay. | 4,606 | -- | | Advances from customers | 673 | -- | | Other payables & accruals | 3,348 | Nil | | Tot. curr. liabs. | 10,487 | 2 | | Loans pay. | 9,410 | -- | | Com. stk. p.$0.001 | 16 | 9 | | Paid-in cap. | 29,944 | 2,041 | | Retained earns. | 10,523 | (2) | | Accumulated other comprehensive income | 1,139 | -- | | Total liabs. | 61,519 | 2,050 | | Common Shares (Thou.) | 15,722 | 8,626 |
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* On Mar. 12, 2008, Yuhe International Inc., (formerly known as First Growth Investors, Inc.), acquired Bright Stand International Co., Ltd., in a transaction accounted for as a reverse acquisition, with Bright Stand being deemed the acquiring company. | | | |
| | Interim Report
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2009 |
1 | 10,910,000 | | 2009 |
2 | 9,830,000 | | 2009 |
Full Year
| 0 | | 2008 |
1 | 1,100,000 | | 2008 |
2 | 5,600,000 | | 2008 |
3 | 9,610,000 | | 2008 |
4 | 18,310,000 | | 2008 |
Full Year
| 34,600,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2009 |
1 | 2,910,000 | | 2009 |
2 | 2,090,000 | | 2008 |
Full Year
| 10,520,000 | | 2007 |
Full Year
| (10,000) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2009 |
1 | .19 | | 2009 |
2 | .13 | | 2009 |
Full Year
| .73 | | 2008 |
1 | (.03) | | 2008 |
2 | .07 | | 2008 |
3 | .12 | | 2008 |
4 | .48 | | 2008 |
Full Year
| .73 |
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