China Nutrifruit Group Limited(NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), announced that the Company commenced production of fruit and vegetable powder and cherry tomato paste products on August 29, 2011.
In August 2011, China Nutrifruit's research team completed its stringent quality assessment and market research for the Company's new fruit and vegetable powder products. The Company's new fruit and vegetable powder products facility in Daqing has an annual production capacity of approximately 10,000 tons and management expects to ramp up capacity utilization during fiscal year 2012. For fiscal year 2012, China Nutrifruit plans to produce approximately 6,000 tons of fruit and vegetable powder products. In addition, the production of these powder products is expected to extend the Company's production season by approximately 30 to 60 days. The Company has begun production of tomato and carrot powder and plans to produce other popular fruit and vegetable powder products based on the feedback from its ongoing market research.
In May 2011, the Company commenced construction of a new multi-purpose concentrate paste production facility in Zhaoyuan city, Heilongjiang Province with an annual production capacity of 9,600 tons. The new multi-purpose concentrate paste facility will cater to the raw material requirements of the Company's new fruit and vegetable powder production facility and will also be sold to its fruit concentrate juice customers. For fiscal year 2012, China Nutrifruit plans to produce approximately 8,000 tons of cherry tomato concentrate paste products before ramping up production capacity and producing other types of concentrate paste products.
"The launch of our new powder and paste products marks another important milestone for China Nutrifruit. We believe these new products complement our current product portfolio and will help diversify our customer base," commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. "We began our fiscal 2012 production season with the launch of our new golden berry dried fruits and golden berry glazed fruits. Following the introduction of our new products and successful execution of our capacity expansion plan, we are confident in achieving our projected revenue of approximately $110 million to $113 million and net income of approximately $29 million to $30 million in fiscal year 2012," added Mr. Yu.
About China Nutrifruit Group Limited
Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces in China. For more information, please visit http://www.chinanutrifruit.com.