ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

US Corporation Acquires Chinese Pork Processor

by 5m Editor
8 January 2008, at 11:34am

CHINA - Energroup Holdings Corporation has taken over the Chinese pig meat processor, Dalian Chuming Precious Sheen.

The Nevada based corporation acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited, a British Virgin Islands corporation ("PSI") and parent company of PRC-based Dalian Chuming.

The Chinese pork processing company had sales of US$70.4 million in 2006, and $89.7 million in unaudited sales in the first three quarters of 2007.

The acquisition was completed through a share exchange, in which the former shareholders of PSI were issued a controlling stake in the Company.

Dalian Chuming, with its Chuming(TM) brand food products, is the second largest pork processor in both the Liaoning Province and the Northeast Region of the People's Republic of China, a region with a population of 108 million people. The Company is ISO 9001 and HACCP certified, maintains industrialized hog slaughtering, processing and distribution facilities and is known for its international quality management standards and food safety certifications.

Chuming, with its integrated pork production "cold food" chain is the first company in China's meat industry to receive "Green Food" Certification from the Ministry of Agriculture, an innovative project which is unique to China.

The "Green Food" status is an award given to companies, who produce food using environmentally sustainable methods and meet certain technical standards of quality control, low levels of pollution, safety, and product quality.

Chuming has a unique wholesale-plus-retail distribution model, coupled with a premium brand and sells fresh, frozen and packaged meat and deli products directly to thousands of retail outlets including supermarkets and hypermarkets in China such as Wal-mart, Metro, and Carrefour, three of the world's top ten retailers. Chuming(TM) products are also sold by Hymall, owned by Tesco of the UK, over 3,000 convenience stores, and 500 Chuming(TM) branded free-standing franchise locations.

Together with the acquisition on 31 December, Energroup completed a private placement with institutional and accredited investors led by Pinnacle China Fund, L.P. which resulted in gross proceeds to the company of $17.0 million by issuing 3,863,636 million shares of common stock, which represents approximate 18 per cent of the company.

"We are pleased to have completed this financing with a lead investor of Pinnacle's stature," said Mr. Huashan Shi, CEO and president of the Company and Chuming.

"The proceeds will be utilized for working capital, to expand our production capabilities to meet growing market demand, and to broaden our distribution footprint to include cities surrounding our primary hub of Dalian City located in the province of Liaoning, where to date we have achieved a 50% market share in the fresh pork market."

For the nine months ending September 30, 2007, Chuming recorded unaudited sales of $89.7 million and net income of $8.3 million, compared to sales of $50.2 million and net income $6.3 million for the first nine months of 2006.

5m Editor