May 13, 2010
Jiuding Capital invests in China's Zhejiang hog producer
Kunwu Jiuding Capital Co. Ltd, a Beijing-based private equity house, has made an investment in hog producer Zhejiang Qinglian Food Co. Ltd.
Jiuding Capital deployed RMB50 million (US$7.3 million) for a minority stake in the firm, which is based in Haiyan county, Zhejiang province.
Founded in 2001, the firm operates a complete supply chain of hog, from pig farming to meat processing.
According to Jiuding Capital, it is this complete supply chain management that makes Zhejiang Qinglian unique among other suppliers.
Zhejiang Qinglian is a contracted supplier of hog to Shanghai's World Expo, and is expected to sell 15,000 tonnes of meat for the event.
Over the past years, Zhejiang Qinglian has been growing in excess of 30% in profit. It is one of the few suppliers with an established brand in the hog market, winning a 15% market share in Shanghai.
