The YaSheng Group (Other OTC:YHGG.PK) High Tech Agricultural Segment is in position to profit from an internal coordinated development of a strain of cotton that is disease, drought, and insect-resistant. This advancement was jointly developed by YaSheng Group's high tech agricultural department & Gansu Yasheng Academy of Science. The company has sowed 584 acres and gained a record-breaking harvest that yielded more the 20% of normal.

This strain of cotton can resist insect and disease by applying transgenic technology and solves many problems that have burdened the local industry for many years. This cotton strain will also do better under water shortage conditions.

The cotton boll output has increased by 0.6 CM and the cotton strain is well received by the farmers because of its compatibility with the local environments. YaSheng expects this development to increase in yields by 20% with the quality reaching international standards that will open up new markets.

The company has also mastered the ability to develop and grow colored cotton, keeping up with modern developments in the textile industry. The company is expected to further tap into the textiles market by producing this strain of quality cotton that is leading the demand of the development of the textiles industry in China and within other countries in Asia.

Testing has been completed on over 584 acres and the company expects to expand production by 20% per year over the next 5 years with goals of 1,800 acres cotton farm.

The YaSheng Group (Other OTC:YHGG.PK) is a diversified industrial conglomerate incorporated in Redwood City, California, operates in hi-tech agriculture, salt chemistry and biological technology as its core business with advantages in rich land, mineral resources, capital and technology reserves.

Through its 136 subsidiaries, the company operating categories include: chemical engineering, agricultural production, biotech, pharmaceuticals, textile products, printing and dyeing, commercial trading, beverages and inorganic salt manufacturing. With total assets of approximately $1.5 billion USD and over 15,000 employees, YaSheng Group has 155,097,355 shares issued and outstanding as of December 1, 2004.