1158420--1/16/2007--CHINA_AGRO_SCIENCES

related topics

{operation, international, foreign}

{cost, regulation, environmental}

{regulation, change, law}

{product, candidate, development}

{gas, price, oil}

{acquisition, growth, future}

{customer, product, revenue}

Our manufacturing plants are located in China and our pesticide and herbicide production, sale and distribution is subject to Chinese regulation. We depend upon governmental laws and regulations that may be changed in ways that hurt our business. The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. Future inflation in China may inhibit our activity to conduct business in China. Restrictions on currency exchange may limit our ability to receive and use our revenues effectively. The value of our securities will be affected by the foreign exchange rate between U.S. dollars and Renminbi. Currently, we manufacture all of our products at DRC s manufacturing facility. Currently, we only have one customer for our products. We give no assurances that any plans for future expansion will be implemented. We will face a lot of competition, some of which may be better capitalized and more experienced than us Our business is largely subject to the uncertain legal environment in China and your legal protection could be limited.

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1158420--1/16/2007--CHINA_AGRO_SCIENCES_CORP.