China: Great-Sun Foods plans stock market listing - FreshFruitPortal.com

China: Great-Sun Foods plans stock market listing

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China: Great-Sun Foods plans stock market listing

Guangdong-based produce supplier and exporter Great-Sun Foods has announced plans to list on the Shanghai Stock Exchange, with the goal of raising up to CNY272 million (US$44 million) to fund new processing and distributing centers across the country. Longan cracked and opened sq

An initial public offering (IPO) prospectus released on the China Securities Regulatory Commission said the company would be selling up to 33.35 million shares.

Between 2011 and 2013 the company's annual revenue grew by almost 20% to reach CNY46.188 million (US$7.5 million), with fruit and fruit-related products making up 90% of sales.

The company and its regional subsidiaries have had a strategy of procuring local fruits during harvest season and exporting them to countries where the crops are out of season. However, with the value of Chinese currency slowly rising and sluggish economic recovery in many developed markets, the business has needed to change its strategy.

In 2011 Great-Sun's overseas sales made up 74% of revenue but this share dropped by almost six percentage points over two years. Results from this year's first quarter were not positive either, described by the company as an all-time low.

In terms of specific projects, the company plans to use CNY90.4 million (US$14.70 million) for a logistical hub in Tianjin and CNY79.7 million (US$12.96 million) for a center in Shanghai. A further CNY30.7 million (US$5 million) will be used to develop a produce information system.

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