Company Study of Shineway Group, 2007

On May 23, 2007, the overall average price of pork in Chinese 286 agricultural product wholesale markets reached RMB15.96 per kilogram, seeing a year-on-year growth of 53.7%. Shineway Group now purchases live hogs at the price of RMB 11.5-11.8 per kilogram, reaching a quite high level.

Among the business structure of Shineway, fresh frozen meat occupies 36.68% of the main business revenue. Among Shineway's 11.3 million slaughter hogs, 70 percent is made of cold fresh meat and 30 percent for frozen meat, while 18-20% of total pork is processed into meat products.

Shineway's hog slaughter capacity reaches 14 million. It plans to slaughter 13.1 million live hogs in 2007, while its subsidiary company Shineway Investment & Development Co., Ltd intends to slaughter 5.25 million hogs. Several plants are not further expanded. It is forecast that Shineway Investment & Development Co., Ltd will not greatly improve slaughter amount. However, as pork price continues to rise, the revenue growth of its cold fresh meat will be at a high level.

Selected Chats

• Price trend of piglet, live hog and pork in China
• Structure of Shineway's main business revenue, 2006
• Profit structure of Shineway's main business, 2006
• Proportion of related sales declined in recent years
• Proportion of related purchase improved
• Main business status of Shineway by sector