REG-Sunrise Biotech Holding Ltd: FIRST DAY OF TRADING ON PLUS

* Reuters is not responsible for the content in this press release.

Tue Jan 22, 2008 5:34am EST

SUNRISE BIOTECH HOLDING LIMITED                        

                         ("Sunrise" or the "Company")                          

                         FIRST DAY OF TRADING ON PLUS                          

The directors of Sunrise Biotech Holding Limited (PLUS: SBHP), a leading
producer of mulberry based products in China, are pleased to announce that the
Company's entire ordinary share capital of 260,000,000 ordinary shares of 0.1
pence each has today been admitted for trading on the PLUS Market, initially
priced at [17] pence per share.

LISTING DETAILS

SECTOR CLASSIFICATION - Pharmaceuticals and Biotechnology

PRINCIPLE ACTIVITIES - The development and production of mulberry tree based
products - namely: mulberry tea, mulberry leaf powder and tablets for use in
food additives and herbal remedies, and mulberry leaf powder and granules for
use as animal fodder

CORPORATE ADVISER - Fisher Corporate plc

SYMBOL - SBHP

OVERVIEW

Sunrise Biotech Holding Limited is a recently formed holding company
incorporated in Jersey that owns 100% of the total share capital of Beijing
Sunrise Biology Technology Co., Ltd ("Beijing Sunrise"), which in turn owns
100% of the total share capital of Hebei Sunrise Biology Technology Co., Ltd
("Hebei Sunrise") (together "the Group"). Founded in January 2005, Beijing
Sunrise develops and produces mulberry based products from three locations in
the Yongledian Region of Beijing, whilst Hebei Sunrise, founded in May 2005,
operates from one location in the Hebei region of China. Currently the
Company's product range is focused on the production of mulberry tea, mulberry
leaf powder and tablets for use in food additives and herbal remedies, and
mulberry leaf powder and granules for use as animal fodder.

The Group's production base currently consists of over 3,100 acres of leased
land, having an annual mulberry leaf production capacity of 24,000 tons.

CURRENT TRADING AND PROSPECTS

Business Model

The Group at present employs over 900 members of staff, the majority of whom
work in production and sales.

Sunrise has two main distribution methods: through direct distribution to large
customers and via regional distributors. With regards regional distributors,
sales contracts have been signed with regional distribution agents in West
China, East China and North China areas. In addition, Sunrise has contracts
with international distributors such as with the Japanese company, Kechengliya
Co. Ltd, where a long-term contract has been signed which guarantees sales of a
minimum of 5,000 tons of mulberry fodder powder and granule per annum.

Pricing

The Group is currently able to maintain relatively high price levels, due, in
the opinion of the Directors, to the quality of the Group's products and lack
of competition in the market. However, in order to increase market share the
Directors intend to lower the price of all products. The Directors anticipate
that the Company will continue to develop its marketing strategy and will adopt
a more aggressive pricing policy to gain a greater market share in 2008.

Beijing Sunrise and Hebei Sunrise's Trading History

Set out below is summarised financial information, extracted from the
Accountants' Report on Beijing Sunrise and Hebei Sunrise. However, potential
investors should read the whole of the Admission Document and not solely rely
on the following summary:

                                          2006                    2005         
                                                                               
                                            £                      £           
                                                                               
Revenue                                 1,828,763               567,133        
                                                                               
Profit before taxation                  1,432,721               129,932        

Market information

In 1997 China's total output of fodder supplements reached 55-58 million tons,
since then the demand for fodder supplements has consistently increased at a
rate of 10% per annum(1). Thus creating a growing market for the Group's animal
fodder.

Increasingly, the market trend in China and the West is for modern agriculture
to produce safe, natural food and health care solutions without the use of
pesticides and fertilisers or genetically modified raw materials.

Additionally, in animal fodder production, some countries, including China,
have banned or limited the use of antibiotics. The Directors believe that in
future, the regulatory authorities may apply more restrictions and restraining
measures to limit the use of chemical based fertilisers, which the Directors
hope will create more opportunities for the Group's future development, given
that all its products are produced using no chemical fertilisers or pesticides.

The Directors believe the Group is one of the only companies to produce,
develop and market this type of animal feed produced exclusively from mulberry
trees grown without the use of conventional pesticides and artificial
fertilisers.

Globally there is a growing demand for healthy, nutritious, organic produce.
The Directors believe that coupled with the increasing purchasing power of
consumers, this will contribute significantly to the growth of the health food
market and therefore the demand for the Group's mulberry-based products.

The Group's technology is based exclusively on its pending patents. The
technology allows it to grow a high density of sand mulberry trees, thereby
creating economies of scale and allowing future price reductions.

Intellectual Property

Beijing Sunrise has 3 patents pending in China, relating to the following:

1. A mulberry tree planting method to provide wood feed for livestock.

2. A type of feed for livestock made by mulberry leaves and young shoots.

3. Composite mulberry leaf tea

These patent applications have been accepted by the State Intellectual Property
Office of the People's Republic of China and acceptance receipts have been
issued, pending the issue of patent certificates.

(1) Source: China Feed Industry Annual (1991-2000), China Feed Statistics
Annual (2000)

REASONS FOR JOINING PLUS

The Directors believe that the benefits of the Admission include:

  * the opportunity to raise the profile of the Group outside of the People's
    Republic of China in order to give greater trading opportunities; and
   
  * the ability to raise further funds in the future, either to raise
    additional working capital or development capital for the Company or to
    enable future acquisitions to be completed.
   
DIRECTORS' INTERESTS AND SIGNIFICANT SHAREHOLDERS

Directors

Shareholder               Share Number         Percentage (%)    
                                                                 
Li Yonghu                 100,000,000               38.46        

Significant Shareholders

Shareholder                   Share Number     Percentage (%)    
                                                                 
Li Yonghu                     100,000,000           38.46        
                                                                 
Feng Huijing                   48,576,219           18.68        
                                                                 
Miao Ling                      20,083,391           7.72         
                                                                 
Qu Faguo                       17,421,562           6.70         
                                                                 
Song Lihong                    14,263,356           5.48         
                                                                 
Zhang Xiaotang                 10,667,737           4.10         
                                                                 
Fortune 500 Capital Group      10,400,000           4.00         
Limited                                                          
                                                                 
Zhang Shu                      9,268,433            3.56         
                                                                 
Fu Shihong                     8,547,254            3.29         

THE DIRECTORS AND THEIR INTERESTS

Yonghu Li, Aged 43,Chief Executive Officerand Chairman(China)

Mr Li founded Beijing Sunrise in 2005 and is now supervising the strategic
development and business operation of the Group. Prior to establishing Beijing
Sunrise, he graduated from China University of Petroleum before becoming a
senior executive of several companies in different industries including:
petrochemical, entertainment equipment, environment protection technology and
forestry development. Mr Li has considerable management experience and strong
entrepreneurship gained from his years in industry.

Yonghua Li, Aged 36,Chief Finance Officer

Ms Li graduated from Xijiang Finance and Economics Institute. Ms Li has over 13
years of accounting and financial management experience gained from working in
a state-owned enterprise. She is now head of financial management and corporate
development for the Group.

Zhaoyi Kong, Aged 61,Chief Operating Officer

Mr Kong as a Certified Senior Engineer has 28 years' experience in technical
supervision and consultancy. He retired as a government senior officer of the
Development and Reforming Committee of Hebei Province in 2007 and joined the
Group to oversee its business operation and research and development.

Anthony CharlesDrury, Aged 61, Chairman (UK)

Tony is a Fellow of the Chartered Institute of Bankers (FCIB) and a Member of
the Securities Institute (MSI). He is the author of five financial books
including `The St Helen's Guide to the PLUS-quoted (Ofex) Market'.

He founded St Helen's Capital Plc in 1998 and built it into a leading PLUS
(previously Ofex) market corporate advisory firm acting for some of the most
successful PLUS-quoted companies including Oakdene Homes Plc (now listed on
AIM), MyHome International Plc (now listed on AIM), Ashpool Telecom Plc and
Espro Information Technologies Limited the first Israeli company to join
PLUS-quoted. In 2006 he led the £2.8 million fund-raising for Quercus
Publishing Plc.

He completed the Chairmanship of St Helen's Capital Plc in June. He is now a
director of two PLUS-quoted Companies.

ADDITIONAL INFORMATION ON THE BOARD

Other than directorships of the Company, the Directors have held the following
directorships or been partners in the following partnerships within five years:

Yonghu Li

Present                                  Previous 
                                                  
Beijing Julongdi Forestry Development    None     
Co., Ltd                                          
                                                  
Beijing Sunrise Biology Technology Co.,           
Ltd                                               
                                                  
Hebei Sunrise Biology Technology Co.,             
Ltd                                               

Yonghua Li

Present                          Previous                       
                                                                
None                             None                           

Zhaoyi Kong

Present                          Previous                       
                                                                
None                             None                           

Anthony Charles Drury

Present                         Previous                        
                                                                
DTT Plc                         VSA Resources Limited           
                                                                
St Helen's Finance Plc          Enterprise Britain Limited      
                                                                
SDF Productions Limited         St Helen's Capital Plc          
                                                                
The PLUS Fund plc                                               

Collectively, the Directors of the Company hold 38.46% of the issued share
capital.

RISKS FACTORS

The Ordinary Shares should be regarded as a speculative investment and an
investment in Ordinary Shares should only be made by those with the necessary
expertise to fully evaluate the investment. An investment in the Ordinary
Shares involves a high degree of risk. In addition to the usual risks
associated with an investment in a business at an early stage of development,
the Directors believe that the specific risks referred to below as well as
other information in this Document should be considered carefully by investors
before acquiring Ordinary Shares. Prospective investors are advised to consult
an independent adviser authorised under FSMA who specialises in advising on
investments of this kind before making any investment decision. If any of the
risks described in this Document actually occur, the Company may not be able to
conduct its business as currently planned and its financial condition,
operating results and cash flows could be seriously harmed. In that case, the
market price of Ordinary Shares could decline and all or part of an investment
in the Ordinary Shares could be lost. No inference ought to be drawn as to the
order in which the following risk factors are presented as to their relative
importance or potential effect.

Additional risks and uncertainties may also have an adverse effect on the
Company's business and the information set out below does not purport to be an
exhaustive summary of the risks affecting the Company. There may be additional
risks of which the Directors are not aware.

A prospective investor should consider carefully whether an investment in the
Company is suitable in light of his, her or its personal circumstances and the
financial resources available to him, her or it.

Information, opinions and quotations in this Document are as at the date of
writing and may change without notice. The Directors are under no obligation to
ensure that such updates are brought to the attention of any recipient of this
material.

 1. Suitability
   
An investment in Ordinary Shares may not be suitable for all recipients of this
Document. Investors are therefore strongly recommended to consult an investment
advisor authorised under the FSMA who specialises in advising on investments of
this nature before making their decision.

 2. Market Factors
   
Substantial future sales of Ordinary Shares could impact on their market price.
There has been no prior public market in the Ordinary Shares and an active
trading market may not develop or be sustained in the future.

Marketability of shares

Investment in shares traded on PLUS carries a higher degree of risk than an
investment in shares quoted on the Official List. The share prices of public
companies, particularly those operating in high growth sectors, are often
subject to significant fluctuations. Following Admission, the market price of
the Ordinary Shares may be volatile and an investor may receive less than the
amount originally invested on a sale of his Ordinary Shares in the market. The
sale of the Company's shares may be illiquid and it may be difficult for
investors to ascertain a market value and / or to sell their Ordinary Shares.

The Company's Ordinary Shares are primarily intended for capital growth and
therefore may not be suitable as a short-term investment. Consequently, the
Company's Ordinary Shares may be difficult to buy and sell and may be subject
to greater fluctuations. Investors may therefore not realise their original
investment.

Furthermore, the market price of the Ordinary Shares may not reflect the
underlying value of the Company's assets.

PLUS trading facility

Acceptance of the Company's application for Admission, and continued admission
to trading on PLUS, is entirely at the discretion of PLUS Markets plc.

Any changes to the regulatory environment, in particular the PLUS Rules, could
for example, affect its ability to maintain a trading facility on PLUS. There
is no guarantee that the market price of an Ordinary Share will accurately
reflect the underlying value of the Company's net assets or operations.

 3. Company & Group Factors
   
Key Personnel

The success of the Group's trading activities in dependent on the retention of
key personnel with the relevant experience and expertise. The loss of key
executives could cause material disruption to the Group's activities in the
short to medium term.

Regulation Risks

The biotech industry in China is a highly regulated business. Any changes in
relevant regulations could affect the Company's further development.

Patents

The Company is in the process of applying for patents on three major
technologies based on which the Company manufacture, process and market its
current product portfolio. It is estimated that the decision to grant will be
made by the local authority in the middle of 2009. There is no guarantee that
these patents will be granted.

Taxation

Beijing Sunrise, the Company's fully-owned subsidiary and business operating
entity in China, is currently exempt from any Chinese sales tax or value-adding
tax (VAT) and income tax under China's subsidiary tax policy for agriculture
industry related enterprises. These exemptions are given on a yearly basis and
require the approval of a renewal application by the tax authority. There is no
guarantee that these exemptions will be given.

Competitive threats

Adverse changes in the market place (whether relating to the actions of
competitors, entry into the market of new competitors changes to governmental
and Chinese regulations or changes to prices or other market conditions) could
adversely affect the Company's viability and financial performance.

Financial risk management

The Group is exposed to financial risk arising from weather and diseases which
are uncontrollable. Adverse weather and diseases can have a significant impact
on the biological assets and trading of the Group. Other than these two
factors, the Group does not anticipate that the prices of mulberry shoots and
other related products will decline significantly in the foreseeable future,
therefore has not entered into derivatives or other contracts to manage the
risk of declining prices. The Directors review the Group's position regularly
in considering the need for active financial risk management.

Future fundraising

It is possible that the Group will need to raise further funds in the future,
either to complete potential acquisitions or to raise further working or
development capital for the Group. There is no guarantee that the then
prevailing market conditions will allow for such a fundraising. Any further
issue of Ordinary Shares by the Company may materially dilute Shareholders.

Economics

The Group's business may be affected adversely by changes in economic,
political, administrative or other regulatory forces.

Past Performance

The past performance of the Company and the Group is not a guide to future
performance and no representation is made or warranty given regarding future
performance. The past performance of the Group will not necessarily be
repeated.

Dividends

There is no certainty that the Company will generate sufficient after tax
profits to be able to pay a dividend.

4. Other Factors

Legislation and Tax

This Document has been prepared on the basis of current legislation, rules and
practice and the advisers' interpretation thereof. Such interpretation may not
be correct and it is always possible that legislation, rules and practice may
change. Any changes in taxation legislation and rules, and in particular any
changes to bases of taxation, tax relief and rates of tax, may affect the
availability of reliefs. Changes in legislation affecting the Company's
business may be introduced at any time and may impact on the business
operations and financial condition of the Company.

Lock-in and Orderly Market Arrangements

The market price of Ordinary Shares could decline significantly as a result of
any sales of Ordinary Shares by certain Shareholders following expiry of the
lock-in period (or otherwise), as detailed in the paragraph entitled "Lock-in
and Orderly Market Arrangements" in paragraph 6 of Part I of the Company's
admission document or the perception that these sales could occur.

Forward-looking Statements

Forward-looking statements in this Document are no guarantee of future
performance and only reflect the views and assumptions as of the date of this
Document and are subject to risks, uncertainties, market conditions and other
factors, some of which are beyond the control of the Company and are difficult
to predict.

Currency Risk

The Company may transact in currencies other than pounds or Chinese Yuan.
Additionally, if the Chinese Yuan continues to appreciate in value this may
have a negative effect on the Group's ability to export its products in future.
The Company's performance may therefore be subject to exchange rate
fluctuations with respect to currencies employed.

CONTACT DETAILS:

Sunrise Biotech Holding Limited: Tony Drury (UK)     Tel: 07973 737284

                                 Steve Wayne (China) Tel: 0086 10 5172 7200

Fisher Corporate plc: Gary Miller Tel: 020 7380 4938

gth media relations: Toby Hall Tel: 020 7153 8039

Christian Pickel Tel: 020 7153 8036

The Directors of Sunrise Biotech Holding Limited accept responsibility for this
                                 announcement.                                 



END
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.