Sichuan New Hope to inject RMB 320 mln into Qianxihe Food

Aug. 31, 2009 (China Knowledge) - Sichuan New Hope Agribusiness Co Ltd<000876>, the listing unit of New Hope Group, China's largest animal feed producer, plans to inject RMB 320 million into Beijing Qianxihe Food Co Ltd in order to help the loss-making company return to profits.

Sichuan New Hope said in a statement filed with the Shenzhen Stock Exchange that eight individual investors of Qianxihe Food have agreed to sell 49.6 million shares to Sichuan New Hope for a token fee of RMB 1.00. 

As of the end of September, net assets per share of the Beijing-based food company were RMB -0.59.

Upon the completion of the asset transfer and capital injection, Beijing Qianxihe's registered capital will be boosted to RMB 480 million from the previous RMB 160 million, with Sichuan New Hope holding a 97% stake.

Separately, Sichuan New Hope will inject RMB 44 million into New Hope Dairy's subsidiary in Yunnan Province.

Sichuan New Hope on Monday posted RMB 265.52 million of net profit in the first half of this year, representing a year-on-year increase of 40.66%. However, the company's H1 revenue fell 13.36% from a year earlier to RMB 3.11 billion.