15 Apr 2015 09:00
For immediate release 15 April 2015
Asian Citrus Holdings Limited
("Asian Citrus" or the "Company")
Market Update
Asian Citrus provides the following update in relation to its Xinfeng Plantation situated in Jiangxi province, in the People's Republic of China.
The Company has identified the presence of Huanglongbing ("HLB"), also known as citrus greening disease, which is a bacterial plant disease not harmful to humans, spread by an insect called the Asian citrus psyllid, a tiny insect that feeds on the leaves and stems of citrus trees. Detection of HLB can be difficult, as symptoms may not show up for more than a year after the tree has become infected. The first symptoms are yellowed and mottled leaves, which are often just associated with nutritional deficiencies. Whilst the spread of the disease in a plantation can only be limited by the use of pesticides against the insect, the disease itself, despite current industry know how, is fatal once the trees are infected. The disease destroys the production, appearance and economic value of citrus trees. Diseased trees produce bitter, hard, misshapen fruit and die within a few years of being infected.
HLB has been recently found in citrus plantations in the USA. In the Gannan region of the province where the Xinfeng Plantation is located, plantations in the neighbouring counties have witnessed infection and management believes that the source of the infection has come from insect transmission from these nearer regions.
Based on the initial sampling that has been undertaken, which indicates an infection rate of approximately 18% of the total population in Xinfeng Plantation, the Board wishes to make clear that the impact of HLB in Xinfeng Plantation will be significant, especially with regard to the 2015 winter harvest.
The Company is urgently undertaking further field work and laboratory testing as part of what will be a comprehensive investigation into the extent of the infection and what can be done to prevent the spread of the disease in order to minimise the losses, including but not limited to replanting. It will take the Group a period of time to quantify the physical and financial losses given the 1.6 million orange trees at Xinfeng Plantation, which is fully planted. The Board will provide a more detailed update as soon as practicable.
For furtherenquiriespleasecontact:
Asian Citrus +852 2559 0323
MarkNg, Executive Director and Chief Financial Officer
Cantor Fitzgerald Europe (NOMAD and Broker) +44 (0) 20 7894 7000
Rick Thompson/David Foreman (Corporate Finance)
Richard Redmayne (CorporateBroking)
Weber Shandwick Financial +44 (0) 20 7067 0700
Nick Oborne, Stephanie Badjonat, Tom Jenkins