GDH Guangnan Hong Company Limited ("GDH Guangnan Hong") is a wholly-owned subsidiary of the Group. Its businesses include the distribution of livestock and poultry, sale of live pigs and foodstuffs trading. Currently, sale and distribution of livestock is the main profit contributor of the company.
GDH Guangnan Hong holds a 51% interest in GDH Guangnan Live Pigs Trading Limited, a 15.452% interest in an associate, Hubei Jinxu Agriculture Development Co., Ltd. (formerly known as Hubei Liangyou Livestock and Poultry Co., Ltd.), and a 34% interest in an associate, Guangdong Zijin Baojin Livestock Co., Ltd.
Distribution of livestock and poultry
The Group is originally the sole distributor in Hong Kong of poultry and livestock imported from the Guangdong Province as authorized by the then Ministry of Foreign Trade and Economic Cooperation and the People's Government of Guangdong Province in the PRC. On 21 July 2007, the Ministry of Commerce of the PRC granted the Group the distributorship for importing live pigs from Mainland China (including and beyond Guangdong province) to Hong Kong. Currently, GDH Guangnan Hong's wholesale fresh and live products includes live pigs, live cattle, chilled poultry, fresh and chilled pork, etc., The Group's overall market share in the live pigs supply into Hong Kong from the mainland China maintain around 46% and it is one of the main suppliers in the live livestock and poultry market in Hong Kong.
Sale of live pigs
GDH Guangnan Hong mainly operates and sells live pigs distributed by the Company. The overall market share in the live pigs supply into Hong Kong was above 45%. This provided a steady contribution to the earnings of the Group.
GDH Guangnan Hong foodstuffs trading businesses are the trading of chilled poultry and pork and frozen poultry, of which chilled foodstuffs is the main profit generator for this sector. GDH Guangnan Hong had started its local supermarket fresh meat retail business since 2010. As one of the main suppliers of the local chilled fresh market, GDH Guangnan Hong mainly imported chilled chicken, frozen chicken and chilled pork from the Mainland and abroad to supply large supermarkets and catering chained-stores in Hong Kong. The corn starch, corn gluten meal and corn feed of Yellow Dragon Food Industry Co., Ltd., an associate of the Group, are also distributed through GDH Guangnan Hong to Hong Kong and overseas.