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China Yingxia International, Inc. Announces Record Fourth Quarter and Year 2007 Results
Date:3/31/2008

Food Co., Ltd. ("Seller") to

purchase its six (6) Soybean Milk production lines for a total amount

of RMB 30,000,000 (approximately US$4.1 million), including production

equipments, technique know-how and marketing resources. The Agreement

calls for the Company ("Buyer") to make three installment payments of

the full purchase price before January 31, 2008. Once the payments are

made in full, the Seller will transfer the ownership of the equipments

and all related resources to the Buyer. As of December 31, 2007, the

Company made all three-installment payments and recorded the entire

amount as investment advance since the transaction has not been

completed yet. Upon closing of this transaction, the Company will

reclassify the amount to fixed assets and other related accounts.

"We are very excited about the opportunities for organic soy milk," Ms. Jiao stated. "If all goes as expected, we will have these production lines fully operational by mid-year. We believe these production lines could enable us to grow our sales faster than planned and develop new channels of distribution."

-- Other receivables typically represent cash advances to employees and

sales representatives for normal business purposes. Included in the

other receivables was also an advanced payment in the amount of

RMB13,800,000 (approximately US$1.9 million) made to a organic rice

growing project in Donghai, Jiangsu Province, in anticipation of a good

harvest year. The advance was not utilized because the actual output of

the rice was less than expected. The Company collected the full amount

in the first quarter of 2008.

As of March 31, 2008, the Donghai receivable has been fully collected.

-- As of December 31, 2007, the Company has loans receivable from related

parties in the amount of $2,037,551
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SOURCE China Yingxia International, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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