HARBIN, China, March 6 /PRNewswire-Asia-FirstCall/ -- China Yingxia International, Inc. (OTC Bulletin Board: CYXI) ("China Yingxia" or "the Company"), a leading provider in the nutraceutical industry engaged in the development, manufacture and distribution of nutritional food products, dietary supplements and personal care products in the People's Republic of China ("PRC"), today disclosed that its CEO and chairwoman, Ms. Yingxia Jiao, is in talks with the committee formed by certain investors in China.
The investors with whom Ms. Jiao is in negotiations had loaned funds to her prior to the Company acquiring Harbin Yingxia Industrial Group Co., Ltd., our wholly-owned subsidiary in China. Currently, there are disputes between these investors and Ms. Jiao concerning interest payments on these loans. These disputes adversely affected the normal operations of Harbin Yingxia.
Ms. Jiao believes that the slowdown of the general economy in China contributed to the difficulties in cash flows of her businesses which have further affected the interest payments to the initial Chinese investors. The disputes that arose since November 2008 have caused our subsidiary, Harbin Yingxia Industrial Group Co., Ltd., to shut down its operations temporally on in late February 2009. As a result, the financial performance of the Company in the forth quarter of 2008 and the first quarter of 2009 have been and will continue to be adversely affected. The Company therefore withdraws its guidance of sales and net income for 2008 as well as other forward-looking statements previously set forth in SEC filings, press releases and other public discussions.
The Company expects to give a more detailed account of these matters, as well as the full financial implications, in a separate press release or in its annual report on Form 10-K for the fiscal year ended December 31, 2008. These difficulties may cause the Company to be unable to file the Form 10-K timely.
"Efforts have been made to resolve the disputes and restore the daily operations of the Company. Arrangement is being made with the participation of the Harbin municipal government officials to negotiate with the representatives of the initial Chinese 'investors.' We hope that an agreement will be reached with the committee of the investors that will allow the Company to return to its operations and to carry out the annual audit and 10K preparation, although delay may be expected," said Ms. Yingxia Jiao, Chief Executive Officer of China Yingxia International, Inc.
About China Yingxia International, Inc.
China Yingxia International, Inc., through its 100%-owned subsidiary, Harbin Yingxia Industrial Group Co., Ltd. ("Yingxia"), is primarily engaged in the development, production and sales of health food products in China. Yingxia is located in the Province of Heilongjiang, People's Republic of China. Yingxia's products include soybean-based foods and drinks, longgu golden millet enriched products, organic rice products, cactus-based herbal supplements, personal care products, Nestle products, and organic rice products.
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The statements contained herein that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will, " "should," or "anticipates," "expect" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, our statements regarding the potential growth of the markets or forecasting financial results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including but not limited to, general economic conditions and regulatory developments, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed or implied by such statements. The forward-looking statements are made only as of the date of this filing, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
|SOURCE China Yingxia International, Inc.|
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