NEW JERSEY and HARBIN, China, July 5 /Xinhua-PRNewswire/ -- China Kangtai Cactus Bio-tech Inc. announces that its main operating subsidiary, Harbin Hainan Kangda Cactus Hygienical Foods Co., Ltd. (''Harbin Hainan Kangda'') completed the acquisition of Guangdong Taishan Kangda Cactus Hygienical Food Co., Ltd. (''Taishan Kangda'') on June 29, 2006.
Taishan Kangda's assets include a cactus plantation of 360 mu (about 59.3 acres). The plantation is at the Shalan Township of Taishan City. In that location, there are also a plant and workshops occupying about 10,000 square meters, but no usable equipment.
We will produce cactus-based beverages in Taishang Kangda, including cactus palm juice drinks and cactus fruit juice drinks. We will also produce cactus dry powders, which can be consumed directly or used as ingredients for medicine and cosmetic products, and dry slices which can be used as inputs for the production of livestock feeds.
We also plan to produce in this new plant, if the demand grows, cactus based wines and beers.
We have large areas of cactus plantations in the area. However our major production facilities are based in the Heilongjiang Province, which is at the very north of China. By acquiring Taishan Kangda and shifting its production there, we anticipate savings in transportation costs and being able to more efficiently and effectively serve the market in Guangdong and the other 5 provinces in southern China.
We are also paying significant processing fees for our products processed by non-owned local plants in this area. We anticipate savings resulting from the elimination of these fees once we start to process the products ourselves in this new plant.
We believe that after completed the acquisition of Taishan Kangda, Harbin Hainan Kangda will see greater profits in the future.
China Kangtai Cactus Bio-tech Inc.
CONTACT: REN HU, +1-201-433-1213, or rh@xrz.cn, for China Kangtai
