New Hope Liuhe to promote 51% stake in poultry breeding, processing trade
18 December 2023
2 minute learn
Chinese language animal feed and hog manufacturer New Hope Liuhe plans to boost 4.2 billion yuan ($589.13 million) through promoting majority stakes in two of its devices, it stated overdue on Friday, because it seeks to refill capital after months of losses from pig farming, reported Reuters.
New Hope Liuhe stated it might promote a 51% stake in its poultry breeding and processing trade Shandong Zhongxin Meals to state-owned China Animal Husbandry Workforce for two.7 billion yuan in money.
China Animal Husbandry is a significant manufacturer of animal vaccines and could also be interested by breeding and feed components.
New Hope Liuhe stated it might additionally promote a 67% stake in its Beijing meals processing unit for 1.5 billion yuan to Hainan Shengchen Funding Co, a company owned through New Hope Funding Workforce, an funding arm based through New Hope Workforce.
Privately-owned New Hope Workforce is the dad or mum corporate of New Hope Liuhe.
The indexed corporate, China’s third-largest hog manufacturer, reported losses of three.88 billion yuan within the first 3 quarters of this yr, as susceptible call for and oversupply stored hog costs beneath manufacturing prices for many of this yr.
It advised shareholders in July that it deliberate to usher in state-backed traders to take -stakes in its poultry and meals devices.
The stake gross sales will be certain that the corporate’s competitiveness and sustainable construction, New Hope Liuhe stated.
A scarcity of running capital has grow to be an expanding drawback for all pig breeders, with hog costs now not anticipated to recuperate to successful ranges till neatly into 2024.
New Hope Liuhe’s stocks fell 0.64% on Monday morning to 9.25 yuan and are buying and selling on the lowest degree since early 2019.
($1 = 7.1292 Chinese language yuan)