Mr. Lu Qingguo, Chairman, Founder and General Manager, is the largest shareholder of Chenguang with a shareholding of 18.58%. He is an executive council member of the China Food Additives and Ingredients Association. He has over 20 years of industry experience in the natural extracts space.

Total Project cost is around US$30-40 million and IFC investment is an up to US$40 million equivalent, 6-year, senior, secured CNY loan.

Handan, Hebei Province, China

Development Impact:
- To consumers, the Project is expected to deliver high quality natural ingredients at a larger scale, which will in turn be used in various consumer goods, such as healthcare products, processed foods, cosmetics etc.
- To employees, the Project can create new knowledge of production technologies and train staff to fill gaps in the current job market that is facing a shortage of highly skilled talents in food manufacturing and safety monitoring.
- To suppliers and distributors, the Project will engage various actors, domestic and global, in the value chain for products and services. It will also help improve the quality standards of food exporters in China.

Market Impact:
By supporting a global provider of natural pigments and extracts that generates 30+% of revenue through exports, IFC hopes to raise the quality and competitiveness of natural ingredients that are used broadly in industrial value chains, to increase visibility of Chinese companies with sophisticated technologies, to promote South-South investment between China and India.

Currently, all of the Company's debts are short-term. By providing long term local currency financing that is not readily available for most privately sector companies in China, IFC helps strengthen Chenguang's capital structure, putting the Company in a more prudent financial position.

The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through good international industry practice (GIIP) and mitigation measures that are described in this document and in the attached Environmental and Social Action Plan (ESAP). This is a category B project in accordance with IFC's Policy on Environmental and Social Sustainability.