Zheng Hui Industry Corp Common (NASDAQ:ZHIC)

We are engaged in hatching “Cherry Valley” duck and producing, processing, marketing and distributing frozen processed duck, duck feed and other duck-related products in the People’s Republic of China (the “PRC” or “China”). We sell frozen duck, in whole or cut-up form, to wholesalers, food processing companies and distributors in 15 Chinese provinces, including the cities of Beijing, Shanghai, Tianjin, and Chongqing. Our objective is to establish ourselves as a leading producer and distributor of “Cherry Valley” ducks in the PRC.

Our major product is frozen, lean-meat “Cherry Valley” duck, which is an improved breed from the traditional Peking or Beijing duck and was developed by Cherry Valley Farm, a United Kingdom (“UK”) company. Our product is the third generation of the Cherry Valley species introduced from the UK, which we purchase from their authorized distributor in China. According to the definition from the China Agriculture Association, this species has the following general characteristics relative to other ducks: (1) high growth rate; (2) high conversion rate of feed, that is, with the same amount of feed, the duck will provide more meat; (3) high lean meat content; (4) strong disease immunity; and (5) great ability to be cultivated in different geographical regions. Cherry Valley ducks also have less fat content. Also, Cherry Valley ducks have less fat content. According to a report from January 2010 in the Meat Trade News Daily in the UK, a traditional Peking duck will have a fat level in excess of 35%, whereas a Cherry Valley duck will have a fat level of less than 27%. The Cherry Valley duck converts its feed to meat rather than fat, which has both economic and social benefits for consumers.

Last updated August 4, 2010