Mr. Cheng: Our company, China Nutrifruit, was listed on OTC last year under the ticker symbol CNGL. Our company is a leading producer of premium specialty fruit-based products in China. We specialize in developing, processing, marketing and distribution of a variety of fruit products, such as golden berry, crab apple, blueberry and raspberry, processed from premium specialty fruits grown in northeastern China. CNGL's processing facilities are strategically located in close proximity to specialty fruit orchards in northeastern China that are known for their fertile soil and nutrient dense fruits. Our product offerings primarily include, fruit concentrates, nectar, glazed fruit and beverage, as well as fresh fruits. We sell our products through our extensive nationwide sales and distribution networks covering 19 provinces and 43 cities in China. As of March 31, 2009, this network was composed of 70 distributors. Currently, we have two factories in Heilongjiang, located in Daqing and Mudanjiang.
TWST: What do you see as the key opportunities and challenges facing China
Nutrifruit over the next two to three years?
Mr. Cheng: With the marketing opportunity over the next several years, we are
expecting a very high growth in the demand for our products. Let's take an
example. Last year Coca-Cola proposed a 2.4 million acquisition of a major
fruit juice manufacturer in China. This is a very good indicator that an
international company such as Coca-Cola has a very positive outlook on the
future fruit juice market in China. Also, looking at statistics, fruit juice
consumption per capita in China is only one-tenth of the global average, and it
is merely one-fourteenth of other developed nations such as the United States,
Japan and England. So there are enormous growth opportunities here. As well, the
growth of the middle class has been increasing in China over the past several
years and this will continue. They have more disposable income and have
increased their health and consciousness in their fruit and fruit juice
consumption. So anticipating this kind of growth in the future, our company has
several different strategies to take advantage of those opportunities.
Specifically, we will first increase our production line to increase our fruit
processing capacity to meet the demand of the premium specialty fruit products.
Secondly, we will further strengthen our raw material procurement networks to
secure the supply of premium specialty fruits for our production. In addition,
we will integrate it upstream by developing our own orchards. Thirdly, on the
sales side, we will add five to 10 new distributors annually. This will enhance
our distribution channel throughout China. We have also been attending different
international trading conferences on fruit products to increase our brand
awareness. And finally, we have allocated significant resources to new product
development in order to take advantage of the rapid changes in the customers'
demand and taste.
Tickers included in this excerpt: CNGL
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