January 4, 2007

Revenue for China's Shuanghui Group increases 15 percent in 2006

China's largest meat processor Shuanghui Group's revenue hit RMB 23 billion (US$2.9 billion) for 2006, up 15 percent compared to the year before.

Net profit hit RMB1.3 billion (US$166 million), an increase of 20 percent compared to last year while total export income amounted to US$85 million.

During 2006, Shuanghui has expanded aggressively while acquiring high-end technology and showing creativity in its product range. It has managed to expand its market share in low-temperature processed products on the basis of its market share in high-temperature processed products. Currently, Shuanghui has modernised processing plants in Liaoning, Inner Mongolia, Hebei, Shangdong and six other provinces across China.

The company processed 11 million hogs in 2006, producing 1 million tonnes of meat products.

Shuanghui is currently seeking to enter the international market through partnerships with major international companies and a number of the company's projects are slated to begin this year. 

Shuanghui Group aims to exceed RMB 50 billion (US$6.4 billion) in revenue and to be among the world's top three meat companies in the next 5 years. By the end of the next decade, the company plans to have its revenue top RMB 100 billion (US$12.8 billion) and be among the Fortune 500 companies.

China approved the sale of Shuanghui to a unit of US investment firm Goldman Sachs in December 2006 for RMB 2 billion (US$257 million). Market analysts speculated the company would be sold back to Shuanghui's senior management in a management buyout after the company has listed abroad.

Although Shuanghui holds less than a 5-percent market share in China's meat market, it accounts for nearly 40 percent of the high-temperature processed meat products market.