[Caihua News]Buping International (00043-HK)It was announced that on September 14, 2020, the company wholly owns Chia Tai Investment, a subsidiary company, and signed the agreement with Chia Tai Investments' existing shareholders and seller (Chia Tai Animal Husbandry Investment (Beijing) Co., Ltd., an indirect wholly owned subsidiary of the CPG owned by Xie Zhongmin). According to this, Chia Tai Investment invested about RMB 28.140 billion (equivalent to about US$4.109 billion) to acquire equity capital of 43 companies engaged in the pig business.

Chia Tai Investment will issue new shares of Chia Tai Investments to the seller to pay the price. Once completed, 35% of Chia Tai Investments will be held by the company, and the remaining 65% will be held by the seller.

The 43 companies have integrated breeding facilities in 22 provinces of China, producing 7.2 million pigs per year.

The company can enter the promising Chinese pig market through Chia Tai's investment and become one of the companies with the largest market share, vertically integrated, combining feed and pig industries. Chia Tai Investment will be integrated with 43 companies to become a group company covering feed mills, pig breeding, slaughter and food processing businesses. As shown by other large enterprises combining feed and pig businesses in China, the vertically integrated business model will enable enterprises (including future Chia Tai Investments) to better cope with market changes, utilize proprietary technology throughout the industry chain, and further expand their coverage in the future.