Climate Change Data

Environmental Metrics

Environmental Achievements

• Majority of farms use high tech irrigation allowing for water efficiency, reducing the presence of insects, therefore minimizing the need for heavy pesticides.

Social Achievements

• We believe that we maintain good relations with our employees as well as offer incentive and training programs to motivate our workers.
• Yasheng has successfully completed the first shipment of its Angel Star infant formula from the United States to China.

Governance Achievements

• We have enlisted many international experts and consultants as well as added key management with western and eastern business and finance experience.
• We are also in the process of implementing an enterprise system to upgrade internal and external communications and internal management controls.

Climate Goals & Targets

Environmental Challenges

• Our agricultural operations are concentrated in Gansu Province. This area is subject to occasional periods of drought.
• Crop disease, severe weather conditions, such as floods, droughts, windstorms and hurricanes, and natural disasters, may adversely affect our supply of one or more product, reduce our sales volumes, increase our unit production costs or prevent or impair our ability to ship products as planned.
• Prices of agricultural products are subject to supply and demand, a market condition of which is not predictable.
• Increased costs for such commodity or raw product costs may adversely affect our operating results in the future.
• Due to fluctuations in the supply of and demand for our products, our results of operations are subject to seasonal variability.
• We are subject to the risk of product contamination and product liability claims.
• Our new technologies such as our drip irrigation system for precision agriculture or the introduction, testing and promotion of new agricultural varieties, must be able to adapt to local conditions.
• Our failure to integrate our subsidiaries may adversely affect our financial condition.
• Our success depends on the same level services of our senior executives, the loss of which could disrupt our operations.
• Our acquisition and expansion strategy may not be successful.
• We have no business experience in mining ventures and carbon credit trading and generation and we may lose our entire investments in those new business ventures that we plan to undertake in 2013.
• We may have difficulty managing our growth.
• Our business may be adversely affected by conditions in the financial markets and economic conditions generally.
• Agriculture risks
• Macroeconomic policy
• Natural Disasters
• Market competition and rising costs risks
• Financial risks

Mitigation Strategies

• Although we have deployed drip irrigation systems for its crops, the uncontrollable weather conditions may affect our agricultural productions.
• We have implemented different levels of tracking for each industry and product.
• We have also established cold and dry storage facilities for products that have those demands.
• We also seek to increase efficiency by applying new high breed strains, high tech growing techniques, modern processing and storage facilities, supported by modern logistics that maximize our products’ abilities to compete.
• We have also established outside research and development capabilities through cooperation with the International Hops Association, Mexico’s wheat and grain development department, as well as other industry associations, to continue growth with high-edge technologies.
• We utilize external capital sources, such as long-term notes and structured financing arrangements, and short-term borrowing, to supplement our internally generated sources of liquidity as necessary.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• drought
• floods

Opportunities

• carbon credit generation and trading

Sustainable Products & Innovation

• bio friendly products such as bio plastics, bio mass molding products, bio fuels and others