April 29, 2008

China's Shuanghui to expand pig breeding

Henan Shuanghui Industry in China disclosed Friday that it would increase its capital in Luohe Shineway Jiuxin Muye Co., Ltd. to construct a pig breeding base with a capacity of 200,000 heads a year.

Together with Shuanghui's controlling shareholder, Shineway Industrial Group, the project will be put into action.

Shuanghui will invest RMB53 million, while Shineway will invest RMB17.78 million in the project.

Upon completion, the registered capital of Luohe Shineway Jiuxin Muye will soar from RMB28.84 million to RMB100 million.

Meanwhile, the company reported a 63-percent surge in income in the first quarter of 2008, driven by hiking food prices and the expanding product sales volume.

However, the rising prices of pig and pork as well as the growing prices of the main materials drove down the company's net profits by 3.87 percent on-year in the period.

US$1 = RMB6.98 as of April 29, 2008