JD Capital-Invested Jiahe Agricultural Stockbreeding Gets Listed on NEEQ

2017-06-29

Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Lately, JD Capital-invested Jiahe Agricultural Stockbreeding Co., Ltd. (short for “Jiahe Agricultural Stockbreeding”; stock code: 871537) was successfully listed company on the National Equities Exchange and Quotations (NEEQ).Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Jiahe Agricultural Stockbreeding is a modern integrated company which takes pig breeding as its core business, and specializes in industrialized operation of pig supply. Its products and services include high-quality breeder pigs, commodity pigs, trading of feeds and veterinary drugs, and organic fruits, vegetables, and forest products.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

At present, Jiahe Agricultural Stockbreeding has established more than 30 branches and 20-odd breeding bases across China, boasting a leading pig-breeding system and advanced pig-breeding bases. All these make Jiahe one of the best breeding companies of new Denmark-originated pigs.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In 2012, a fund managed by JD Capital became one of Jiahe’s shareholders, holding 15.28% of its shares prior to its listing.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Consolidation-Oriented Investment Facilitates Large-Scale Operation of Industry LeadersRuv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Currently, as China’s economic development enters the new normal, the growth rate of macro-economy slows down, so does that of individual companies. Under such circumstances, the latest topic in China’s industrial development is to improve industrial concentration through large-scale business consolidation.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Take agricultural stockbreeding, the industry Jiahe is in, for example. At present, the industrial concentration of pig-slaughtering sector in China is valued at less than 10%, way below 70% in the mature market; meanwhile, there are a relatively small number of large-scale companies. In the future, as the government strengthens its regulation of stock-slaughtering and meat-processing businesses, those lagged, small companies will soon be eliminated, and scale operation will become an inevitable trend in the development of the industry.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

Under these new circumstances, the model of consolidation-oriented investment has dominated the PE sector in China. It, at the core, features the model of “1+N”: to be more specific, the investors will help the leader or quasi-leader (i.e. “1”) in a subsector to perform industry consolidation by acquiring other enterprises (i.e. “N”) and become a leader in the region, nationwide and even worldwide. In 2017, JD Capital has launched the “Bellwether Plan”, with which it will perform “1+N” consolidation-oriented investment practices in a comprehensive and systematic manner, dig deep into different industries, including agricultural stockbreeding, and fund the growth and mergers and acquisitions of leaders in various industries.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

In the future, JD Capital will continue to support the development of Jiahe Agricultural Stockbreeding, and, by virtue of the “1+N” consolidation-oriented investment model, help it consolidate resources in its industry, lift scale effects, and become an industry leader enjoying competitive advantages from scale operation.Ruv九鼎投资(600053.SH)_上交所私募股权投资领域上市公司

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