Zhengbang Group, a leader in agricultural industrialization and agroprocessing in China, has announced that it will raise CNY1.139 billion (US$190 million) to expand its pig and feed production. Of the money the company raises, CNY732 million will be invested towards live pig operations, CNY64.5927 million will be devoted to new feed production sites, and CNY340 million will be used to repay loans from various banks.
The project includes three pig breeding centers in Fuyu that will house 9,600 pigs, a 10,000-head piggery in Haifeng, and a 4,800-head piggery in Ji'an. Collectively, this project is expected to produce a total of 404,000 commercial pigs and 96,000 piglets annually to contribute CNY664 million in revenue and CNY79 million in net profits, according to a report provided by Smart Agriculture Analytics.
The new feed mill will have CNY64.5927 million in funding and is planned to produce about 600,000 tons of mixed feed, 120,000 tons of aquaculture feed and 300,000 tons of pig feed annually to earn CNY1.53 billion in revenue and CNY11.166 million in net profits.
Zhengbang hopes the expansion will lower its debt-asset ratio and increase financial stability.
Records show that the company's main shareholders did not participate in the recent purchasing plans.