China Putian Food Holding Limited (01699.HK)

China Putian Food Holding Limited is a leading vertically integrated pork products supplier in Fujian, China operating an integrated business model comprising hog farming, hog slaughtering and sale of pork products. The principal pork products include whole hog carcasses, various cuts of pork meat and internal organs.

Head quartered in Putian City, Fujian, the Group's hog slaughterhouse is the only "2-Star Slaughterhouse" recognised and approved by the government of Putian City in four districts (Chengxiang District, Licheng District, Xiuyu District and North Meizhouwan Bay Economic Development District) out of the five districts and one county in Putian City. The Group contributed to approximately 21.7% of the aggregate output of hogs in Putian City, Fujian Province in 2010.

The Group's hog farm has adopted high technology environmental-friendly management system. The Group implements stringent controls starting from the source in order to ensure quality and safety of its pork products, including establishing an environmental-friendly hog farming production base, using hog feeds with tailor-made formula and 6-round filtration of drinking water for hogs. The Group is also able to turn the hog wastes into organic fertilizers, and its wastewater disposal system installed in the slaughterhouse is in accordance with national first grade discharge standard to minimise pollutants.

The Group's self-owned brand, "Putian (普甜)", has won numerous awards, namely "Harmless Products to the Public" and "Certificate of Origin of Harmless Product to the Public, Fujian Province" by the Ministry of Agriculture of Fujian Province, "Fujian Province's Famous Brand Product" by the People's Government of Fujian Province and "Fujian Province Famous Trademark" by the Committee of Recognition of Famous Trademark of Fujian Province. These awards prove that "Putian" brand is well-recognized among the consumers.

The Group's sales network effectively covers the consumer market. It penetrates into Putian City, Fuzhou City, Quanzhou City and Zhangzhou City areas through its retail network consisting of direct sales outlets, concession counters at supermarkets and bulk-purchase customers; while wholesales its products to rural areas through individual local pork product traders.

The Group vertically integrated business model has minimized our reliance on the supply of finishers (180 days old), and enhanced our flexibility of sales planning under market situation and also our profitability. We can also ensure healthy and harmless products by way of homegrown farming, slaughtering and sales.