Project Description
Shandong Hekangyuan Poultry Breeding Company Ltd. (“Hekangyuan - HKY” or the “Company”) was established in December 2010. Currently, HKY operates through twenty one active subsidiaries, organized across three main business segments, including:
1) The duck breeding division has 8 subsidiaries, located in Shandong, Hebei and Jiangsu provinces. Both grandparent stock (GP) and parent stock (PS) ducks are bred, with existing capacity of around 80 million PS day-old ducklings (DODs) per annum;
2) The broiler breeding division has 3 subsidiaries, located in Shandong and Hebei provinces with capacity of around 38 million PS day-old chicken (DOCs) per annum;
3) Commercial growing poultry (duck and broiler) division, operated by 10 subsidiaries in Shandong with production capacity per annum of 4 million broilers birds and 10 million ducks. About 90% of the farming is contracted to independent farms.
Post the expansion, HKY can be the top 2 duck company and the top 5 broiler company by 2016, with total breeding capacity of 189 million DODs and 90 million DOCs, and locations in Shandong, Jiangsu and Hebei provinces (the “Project”). The construction of the Project has already commenced and it is expected to be completed over the next 18-24 months.