Yayi International Inc., ("Yayi International" or "the Company"), a leading producer and distributor of premium goat milk formula products for infants, toddlers, and adults throughout the People's Republic of China, today announced that it has retained CCG Investor Relations ("CCG") to design and execute its investor relations campaign.
Yayi International is a leading manufacturer and distributor of goat milk powder products in China. While the Company's main focus is premium infant formula goat milk products, its product portfolio currently includes goat milk powders, goat milk formula tablets, and goat foremilk powder. The products are distributed through a network of approximately 3,600 retail points, such as infant-maternity store chains, supermarkets (including multinational retailers such as Carrefour and Wal-mart), and drug stores as well as catalogue sales. Although the Company's sales efforts currently focus on cities in southern China, the Company is looking to strengthen its presence in Tier 1 cities, such as Beijing and Shanghai, in the future.
According to a study by the Institute of Nutrition and Food Hygiene, Chinese Academy of Preventive Medicine, more than 30% of Chinese children between 7 and 13 years old showed symptoms of lactose intolerance. Compared with cow milk, the molecules of lactose in goat milk are smaller, making the milk more easily absorbed by individuals who are sensitive to milk products.
Because the fat globules of goat milk are smaller compared with cow milk and will remain suspended in the solution, goat milk is more easily absorbed by the human digestive system. Moreover, lower acidity, the concentration of medium-chain triglyceride fatty acids, and the absence of r-casein, the main allergen found in cow milk, improve the digestibility of goat milk, making it an appealing substitute for cow milk. Goat milk is also an excellent source of nutrition, containing more than 200 different nutrients, including 64 types of lactic acids, 20 types of amino acids, 20 different vitamins, 25 different minerals, and several different enzymes and variations of lactose. In terms of fat content, acidity, and Vitamin A levels, goat milk is closer to human milk compared with cow milk.
"Because of its favorable properties, goat milk may be more easily digested by people who are sensitive to cow milk products. We are increasing marketing and brand building efforts in order to enhance our position as a leading supplier of goat milk products in China and are confident that consumer awareness of the benefits of goat milk will continue to expand," said Ms. Li LIU, Chief Executive Officer of Yayi International. "We look forward to working with CCG to communicate information about our business operations and financial performance to our shareholders."
"According to the China Dairy Association, goat milk can potentially account for 3% of China's RMB200 billion (approximately $29 billion) dairy market, while the infant formula market is expected to grow at a compound annual growth rate of 23.1% between 2008 and 2013 according to Euromonitor. Yayi International, with its broad product portfolio and first mover position in goat milk production and distribution, is well positioned to take advantage of this increased demand," said Crocker Coulson, President of CCG Investor Relations.
Yayi International is in the process of increasing its production capacity for powdered goat milk products by more than 200%, with the facility for two new production lines expected to be completed in the first quarter of 2010 and to go into trial production in the second quarter of 2010.
In the nine months ended July 31, 2009, Yayi International generated revenue of $18.9 million up 34.3% from the prior year. Net income was $4.5 million, as compared to $0.1 million for the same period of last year.
About Yayi International
Yayi International is the first mover and the leading producer and distributor of premium goat milk formula products for infants, toddlers and adults and goat milk tablets throughout China. Its current formula product lines are targeted at the premium market segment and health-conscious consumers. The Company's distribution network comprises of approximately 3,600 retail points including infant-maternity store chains, supermarkets, and drug stores as well as catalogue sales across China.
About CCG Investor Relations
CCG is one of the nation's leading investor relations and strategic communications agencies. In business for more than 30 years, the agency provides a complete range of investor communications and counseling services to nearly 80 clients across multiple capital markets. CCG has been awarded a number of industry honors for its handling of complex investor relations and crisis communications matters. The agency's corporate headquarters is in Los Angeles with additional offices in New York, San Francisco, Beijing, Shanghai, Frankfurt and Tel Aviv. For further information, contact CCG directly, or visit the Company's web sites at http://www.ccgir.com and http://www.ccgirasia.com .
This press release contains certain statements that may include 'forward-looking statements'. All statements other than statements of historical fact included herein are 'forward-looking statements'. These forward looking statements are often identified by the use of forward-looking terminology such as 'believes,' 'expects' or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.