Yangxiang was founded by Mr. YANG Xiang in Guigang, Guangxi Zhuang Autonomous Region in 1998.

The Project is estimated to cost $293 million and the proposed IFC investment includes an A Loan of up to US$50 million.

51.28 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	43.58
Equity	7.70

* These investment figures are indicative

The Project will take place in Guangxi and Liaoning.

Boost economy in the frontier regions: Yangxiang is the largest private pig company in Guangxi, a frontier region, and has presence in other frontier regions, including Henan, Hebei, Liaoning, and Hunan. The proposed Project will help improve farmers'' income and boost the economy in the frontier regions.

Food Safety and Supply Chain Efficiency: The Chinese pig sector is still characterized by poor hygiene standards, inadequate bio-security, and over-use of antibiotics. By investing in Yangxiang, IFC is supporting a company with both the capacity and willingness to improve food safety. Besides positive impact on food safety, an upgrading supply chain management supported by the Project will also result in the improvement of pig farming operation and quality of output (better feed conversion ratio and lower mortality), which enhances the overall supply chain efficiency.

Farmers Reached: Currently, about 1,000 contract farmers are growing the commercial hogs for Yangxiang. The Project is expected to reach 4,000 additional contract farmers. Yangxiang is to enable the contract farmers to reduce piglet mortality and improve operational efficiency.

Long-term Partnership: Yangxiang is keen to attract financing from credible and knowledgeable partners such as IFC who has a long-term investment horizon and can patiently support the Company to implement its strategic plan.

Global Perspective and Sharing of Industry Knowledge: IFC has invested in the pork sector around the world and built up in-depth industry knowledge. Yangxiang values IFC''s insights and lessons learned. Particularly, Yangxiang is looking forward to IFC''s knowledge and expertise in food safety, disease prevention/bio-security, operational efficiency improvement, and E&S management.

Stamp of Approval: IFC''s due diligence and investment can help Yangxiang enhance its image and reputation, sending a positive signal to the capital market and supporting its planned IPO in the near future.

Advice on Corporate Governance: The Company has established adequate corporate governance structure and processes. The Company is contemplating an IPO plan in China, hence it should meet the minimal level of Chinese corporate governmence regulatory requirements. Based on IFC''s assessment, Improvements in the area of internal audit function and risk management have been recommended.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Occupational Health and Safety(%)	Occupational Health and Safety(%)		Not Available	Not Available	Not Available
Sustainable Management of living natural resources(%)	Sustainable Management of living natural resources(%)		Not Available	Not Available	Not Available

The Project is categorized as B. The key E&S issues identified during the IFC E&S due diligence activities include the following: 1) the need for the Company to develop and implement a corporate-wide environmental and social management system (ESMS); of particular importance is how this system is expanded – and staffed – to allow for the identification and then management of E&S risks and impacts associated with Yangxiang’s contract farms; 2) community engagement especially with regard to Yangxiang’s operations through their contract farms; 3) the management of OHS issues in relation to contractor workers.



Specific concerns related to waste management at Yangxiang’s own breeder farms are addressed through the regulatory-required construction and operation of biogas facilities and use of stabilized wastes as fertilizers, and for irrigation (after testing is done to ensure that the quality of liquid effluents meet discharge standards). Yangxiang has a dedicated unit managing and operating these facilities. Yangxiang’s feed mills overall are generally simple operations and are well managed facilities with limited environmental and social impacts.



Mitigation measures for the potential E&S impacts have been identified and are incorporated into an ESAP. The potential adverse E&S impacts of this project are therefore few in number and limited to project sites, and may be readily mitigated.



Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the Environmental & Social Review Summary.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.