Quantcast

China Yida Announces China Yang-sheng (Nourishing Life) Tourism Project in Jiangxi Province

April 22, 2010

FUZHOU, China, April 22 /PRNewswire-Asia-FirstCall/ — China Yida Holding
Company (Nasdaq: CNYD) (“China Yida” or the “Company”), a leading diversified
entertainment enterprise in China, today announced that it has entered into an
agreement with Zhangshu Municipal Government to develop China Yang-sheng
(Nourishing Life) tourism project (the “Project”), a large-scale vacation
destination covering a total area of approximately 6000 Mu (approximately 988
acres as 1 acre = 6.07 Mu), in Zhangshu City, Jiangxi Province. The Project is
designed to focus on the theme of famous Taoist practice – Yang-sheng
(Nourishing Life), with Zhangshu City’s rare natural resources – salt water
hot spring, and reputation as one of China’s traditional medicine and herb
centers. Yang-sheng (Nourishing Life) is the foundation of Taoist lifestyle,
which is still desired and actively pursued within today’s Asian community.

(Logo: http://www.newscom.com/cgi-bin/prnh/20091012/CNM039LOGO )

The Project will be developed approximately 2 kilometers from Zhangshu’s
downtown, and within one hour travel from the adjacent airport or Nanchang,
the capital city of Jiangxi Province. In addition, the Project is on the route
from Nanchang to Lu Mountain, a World Natural Heritage site, and Jing-Gang
Mountain
, one of the most popular political education tourism destinations as
it was at the origin of Chairman Mao’s military force. In addition to several
highways, there are two railway lines connecting Zhangshu with Beijing,
Guangdong Province and Zhejiang Province. The Company estimates the Project
will be very accessible to a population of over 50 million within the 3-hour
economic circle of influence.

Other than its location, the Project will also benefit from other
advantages brought by Zhangshu City to potentially develop into one of China’s
premier Yang-sheng (Nourishing Life) vacation destinations. (1) The region is
endowed with rare resource of salt water hot spring, where visitors can float
on the water due to over 25% of salinity. The salt water hot spring also
contains over 40 mineral and microelements, including Na+, K+, Mg+, Br-, and
I-, all proven to be beneficial to human health. Due to its rareness, the salt
water hot spring could become the centerpiece of a Project to attract visitors
who pursue life wellness. (2) Zhangshu City, as one of the four major Chinese
traditional medicine centers attracts a large number of medicine dealers,
manufacturers and distributors, especially during the one-month annual Chinese
traditional medicine and herb trade expo held in October. For over 1800 years,
Zhangshu City is viewed as being associated with health and wellness of life,
which could be used to extend the Project beyond a traditional hot spring
destination. (3) The Zhangshu region is the home of “Site”, a famous Chinese
Baijiu (White Wine). Originated from Taoist practice, moderate use of Chinese
Baijiu is considered to be beneficial to human health. With Zhangshu’s deep
Chinese Baijiu culture background, the Project could reflect the merger of
Chinese Baijiu culture with Taoist Yang-sheng practice. (4) Zhangshu is
considered as the birthplace of Taoist’s Lingbao School, an important Taoist
school that created the Yang-sheng philosophy and practice. The Company’s
management believes that the Project could consolidate Zhangshu City’s
geographic advantages, unique natural resources, long history, and Yang-sheng
culture, to become a premium Yang-sheng (Nourishing Life) vacation destination
that reflects China Yida’s Yang-sheng concept – “Wellness, Happiness,
Lifestyle and Longevity.”

The capital expenditure planned for the first development phase of Project
is estimated at approximately RMB250 million (approximately $36.6 million),
which includes the construction of the Salt Water Hot Spring Spa & Health
Center (the “SPA Center”), the Yang-sheng Holiday Resort (the “Resort Hotel”),
in-destination roads and lakes, and the purchase of the land use rights for a
parcel of approximately 3000 Mu (approximately 494 acres, commercial and
residential land use, the “Commercial Land”) as well as the rental payment for
a parcel of approximately 3000 Mu (approximately 494 acres) with the annual
rent estimated at RMB0.5 million (approximately $73,300).

Management expects that the SPA Center and the Resort Hotel will be open
to the public by the end of 2012. Management thinks that the total number of
visitors in the first twelve months following the grand opening is expected to
reach approximately 300,000, contributing approximately $14.6 million to its
sales revenues and approximately $7.3 million to its net income. The payback
period of the first development phase is estimated to be within 4 years after
the grand opening.

The Company’s management believes that it will be able to fund the first
development phase of Project and the first phase of the Bengbu project (please
see Company’s press release on April 15, 2010 and its current report on Form
8-K on April 16, 2010) from current cash and operating cash flow over the next
two years, and does not expect to require additional equity financing. After
the SPA Center and the Resort Hotel start operation, the Company expects to
obtain loans from local banks backed by fixed assets, including significantly
appreciated land.

In addition to the SPA Center and the Resort Hotel, Company plans to build
additional attractions on the Project site that may include the World Yang-
sheng Cultural Museum, the International Camphor Tree Garden, the Chinese
Medicine & Herb Museum, the Yang-sheng Sports Club, the Old Town of Chinese
Traditional Medicine and other Yang-sheng related projects and tourism real
estate projects. The Company is now conducting in-depth research, evaluation
and preparation on these plans.

In return for China Yida’s proven track record of tourism destinations’
management and execution abilities in China as well as its long-term
investment commitment to make its project successful, the Zhangshu Municipal
Government is providing the following preferential arrangements to assist the
Company’s project development:

1. Low Cost of Land. Zhangshu Municipal Government agreed to return
revenues from land use right transfer in excess of RMB8,000 per Mu to China
Yida for infrastructural developments and constructions. Based on the current
price of approximately RMB1.5 million per Mu for commercial land at Zhangshu
City’s downtown which is 2 kilometers from the Project, the 3000 Mu Commercial
Land will become one of Company’s most valuable appreciating assets. Although
the management does not intend to develop any commercial real estate at this
time, they believe it is rare for the private entity like China Yida to be
able to obtain such a large piece of commercial use land in cities like
Zhangshu with large economic growth potential, especially China Yida has full
rights on this 3000 Mu Commercial Land, such as re-sell and pledge.

2. Full Rights on Commercial Use Land. Pursuant to the Company’s agreement
with Zhangshu Municipal Government, the Company has the right to develop and
sell residential villas up to half size of the Commercial Land, i.e. 1500 Mu.
The management expects to accrue significant benefits from this right, even
management were to decide to just re-sell the land based on today’s
approximately RMB1.5 million per Mu at Zhangshu City’s downtown which is 2
kilometers away.

3. Exclusivity. Zhangshu Municipal Government has agreed not to approve
any additional salt water hot spring or related tourism projects to any third
parties to protect the exclusivity of the Project. The exclusivity of the
Project will ensure its uniqueness and protect its profitability in the long
term. The Zhangshu Municipal Government will also try to list the Project as a
Key Project at municipal and provincial level so as to obtain the financial
support from senior levels of government.

4. Preferential Tax Treatments. Zhangshu Municipal Government will try
its best to minimize the operating expenses of the Project. It will waive 100%
of the income tax for the first two years commencing from the grand opening
and 50% for the subsequent three years. It will also waive the salt water hot
spring resources tax and tourism resources tax within the Project’s whole life.
In addition, it will waive or reduce most of the administration fees
throughout the Project’s constructions. It will also allow China Yida to pay
for its outdoor lighting at a cheaper rate as of city’s street lighting.

“Through the accumulation of our experience and growth of China Yida’s
brand recognition after many years of practice, I believe China Yida has
entered an era of high-speed growth,” commented Dr. Minhua Chen, Chairman and
Chief Executive Officer of China Yida, “Due to Chinese Central Government’s
plan to accelerate the growth rate of China’s tourism industry, a company like
China Yida with rich tourism management experience is going to play a more
important role in the market place. At the same time, our value will continue
to grow with the expansion of China’s tourism industry due to the scarcity of
capable players like us who can bring China’s local tourism resources onto the
world stage. We are committed to building a firm foundation for Company’s
long-term growth and shareholder value.”

For more details about the contract between the Company and Zhangshu
Municipal Government, please refer to the China Yida’s current report on Form
8-k filed with the Securities and Exchange Commission.

About China Yida

China Yida is a leading diversified entertainment enterprise focused on
China’s fast-growing media and tourism industries and headquartered in Fuzhou
City, Fujian province of China. The Company’s media business provides
operations management services; including channel, column and advertisement
management for television station, presently the Fujian Education Television
Station (“FETV”, a top-rated provincial education television channel), and
“Journey through China on the Train” (an advertisement-embedded travel program,
currently the only on-board media program from third party authorized by
Ministry of Railways). Additionally, the Company provides tourism management
services, and specializes in the development, management and operation of
natural, cultural and historic scenic sites. China Yida currently operates the
Great Golden Lake tourist destination (Global Geopark, including Golden Lake,
Shangqing River, Zhuanyuan Rock, Luohan Mountain and Taining Old Town.),
Hua’An Tulou tourist destination (World Culture Heritage, including Dadi Tulou cluster and the Shangping Tulou cluster), and China Yunding tourist
destination (National Park, including Colorful Rock Valley, Yunding Paradise,
Yunding Waterfall, South Heavenly Mountain, and Seven Star Lake). The
Company’s operating scenic sites are over 300 square kilometers in the area.
For further information, please contact the Company directly, or visit its Web
site at http://www.yidacn.net .

Forward-Looking Statements

Certain statements in this press release that are not historical facts are
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as “anticipate, “believe,” “expect,” “future,” “may,” “will,”
“would,” “should,” “plan,” “projected,” “intend,” and similar expressions.
Such forward-looking statements, involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of China Yida Holding Co., Inc. (the “Company”) to be
materially different from those expressed or implied by such forward-looking
statements. The Company’s future operating results are dependent upon many
factors, including but not limited to: (i) the Company’s ability to obtain
sufficient capital or a strategic business arrangement; (ii) the Company’s
ability to build and maintain the management and human resources and
infrastructure necessary to support the anticipated growth of its business;
(iii) competitive factors and developments beyond the Company’s control; and
(iv) other risk factors discussed in the Company’s periodic filings with the
Securities and Exchange Commission, which are available for review at
www.sec.gov.


    For more information, please contact:

    China Yida Holdings
     George Wung, CFO
     Phone: +1-909-843-6358
     Email: ir@yidacn.net

    CCG Investor Relations
     Crocker Coulson, President
     Phone: +1-646-213-1915
     Ed Job, CFA
     Phone: +1-646-213-1914

SOURCE China Yida Holding Company


Source: newswire



comments powered by Disqus