March 9, 2010

Shandong Delisi Food embarks on new meat processing projects

Meat processor Shandong Delisi Food will inject part of proceeds from its initial public offering into several new projects, approved by its shareholders' meeting recently.

The company will additionally invest RMB127 million (US$18.6 million) in the deep processing of pig by-products in its headquarters in Zhucheng, Shandong province.

About RMB102 million (US$14.9 million) and RMB114 million (US$16.7 million) will be respectively pumped into its 8,000-tonne high quality meat food project located in Jilin province, as well as a 5,000-tonne prepared food processing project and carcass cutting of 500,000 live pigs in the northwestern city of Xi'an, Shaanxi province.

These three projects are all expected to be put into trial operation end of this year or at the inception of 2011, according to the company's announcement.

Separately, Delisi Food said it booked 2009 unaudited net profit and operating revenue of around RMB62.6 million (US$9.2 million) and RMB1.1 billion (US$161 million), respectively, both down 6.8% from the previous year.