NEW YORK, April 7, 2008 /Xinhua-PRNewswire-FirstCall/ -- China YCT International Group Inc. (OTC Bulletin Board: CYIG) today announced that its wholly owned subsidiary, Shandong Spring Pharmaceutical Co., Ltd, has entered into an Entrusted Management Agreement with Shandong Yong Chun Tang Bioengineering Co. Ltd., effective as of April 4, 2008. The agreement provides that Shandong Spring Pharmaceutical will manage the operations of Shandong Yong Chun Tang, in exchange for all of the net profits earned by Shandong Yong Chun Tang. Shandong Yong Chun Tang is the primary supplier of products marketed by Shandong Spring Pharmaceutical. The companies also announced that they intend to enter into a strategic relationship to integrate and distribute Shandong Yong Chun Tang's gingko products using Shandong Spring Pharmaceutical's advanced logistics solutions.
At the same time, the parties entered into a Purchase Option and Cooperation Agreement with Yan Tinghe, who is the Chairman of China YCT International Group, Inc. and principal owner of Shandong Yong Chun Tang. The Purchase Option gives Shandong Spring Pharmaceutical the right to purchase Shandong Yong Chun Tang at a fair value price to be determined by the parties at the time the option is exercised. Mr. Yan also gave to Shandong Spring Pharmaceutical a proxy to exercise his voting rights as a shareholder of Shandong Yong Chun Tang.
Commenting on the announcement, Yan Tinghe, Chairman of China YCT International Group, Inc., said, "Today's agreement accomplishes our goal of focusing our organization, while also establishing a long-term relationship with Shandong Spring Pharmaceutical., Ltd that will be beneficial to both companies. Our newly distribution management team, professional staff, and financial resources can now concentrate on establishing meaningful market share, awareness, and industry appreciation for gingko products."
Commenting on the synergies of the companies' planned strategic relationship for Shandong Spring Pharmaceutical Co, Ltd., Mr. Yan said, "Customers are looking for product sets that provide practical solutions to the health needs, and fast and safe delivery. Being able to provide a distribution management solution that is tightly coupled with the high-tech production will provide our common customers with a significant advantage."
Shandong Spring Pharmaceutical was organized in 2005 under the laws of The People's Republic of China. From January 2006 until January 2007 management was engaged in developing the company's manufacturing facility and distribution network. In January 2007 Shandong Spring Pharmaceutical commenced revenue-producing activities; specifically distributing products manufactured by Shandong Yong Chun Tang.
Shandong Spring Pharmaceutical was originally organized as a subsidiary of Shandong Yong Chun Tang for the purpose of focusing on advanced technology related to the use of gingko as an aide to health. Shandong Yong Chun Tang later transferred ownership of Shandong Spring Pharmaceutical to its equity-holders. Nevertheless the business plan remains focused on developing a fully-integrated business engaged primarily in the application of advanced biological engineering technology to the growth and refining of gingko and the use of its constituent compounds in products that will provide health benefits and/or cosmetic advantages.
This press release includes forward-looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, the ability to fund operations, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.
About China YCT International Group, Inc.
China YCT International Group, Inc. engages in the development, manufacture, and marketing of gingko products and other dietary supplement products in the People's Republic of China. The company was formerly known as ItLinkz Group, Inc. and changed its name to China YCT International Group, Inc. in November 2007.
|SOURCE China YCT International Group Inc.|
Copyright©2008 PR Newswire.
All rights reserved