To be named a strategic product for development in China, a product has to satisfy various criteria set forth by the Chinese government. The criteria means that it must be a brand new product unique to the market, that it complements the government's plans for economic, technical and strategic development and that it offers significant benefits to both society and economic development.
Shujun Liu, CEO of American Oriental Bioengineering (AOBO), said, "We are pleased with this recognition as it validates the large existing market and potential growth for our soybean protein peptide products. Our recognition by the Chinese government gives American Oriental Bioengineering a competitive advantage. We believe this will help us ramp our sales growth even quicker as we expand our presence in China, penetrate new markets such as Europe and the US, and develop and commercialise our biotech and pharmaceutical products given the increasing demand we are seeing globally."
http://www.bioaobo.comAmerican Oriental Bioengineering, is a leading Chinese biotechnology company that uses proprietary processes for producing soybean protein peptide more efficiently than traditional extracting techniques. These techniques are used to manufacture and formulate supplemental and medicinal products. Soybean peptides are used widely in general foods, health food products and medicines, among other applications.
Currently AOBO is applying for listing on the New York Stock Exchange. In a statement released last week the company said it was cooperation with AMEX, the US regulatory body, adding that it was doing everything possible to speed up the process.
At the end of last month the company reported that it expects to achieve double-digit revenue and net income growth for the full year 2004 off the back of increasing demands for its biotech and pharmaceutical products in both the US and Europe. This announcement followed financial results for the first quarter which showed revenue up from $4.5 million to $5.9 million. The company also said that it will continue to aim to be a leading player in the soy-related health market.
AOBO's approval could open the way to a raft of new biotech developed foods in China, particularly as the country races to meet rising demand for processed foods in an effort to feed its still burgeoning population - currently said to stand at 1.3 billion people. The supply of soy products has proved particularly problematic in recent years, leading the country to become a net importer of soybeans.
This has led to a reliance on imports from both Argentina and Brazil, where the increasing use of GMO soybeans has led the Chinese government to introduce measures to restrict the import of such products. Many industry observers view this measure as a means of protecting the domestic market, though.