Chenguang Bio (IFC-40616)

  • China
Where the impacts of the investment may be experienced.
Specific Location
The company's headquater is based in Handan, Hebei province
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Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
The holder of the loan, grant, or other investment.
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 10, 2020

Disclosed by Bank Jun 22, 2018

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Project Description

The objective of the proposed investment of up to US$30 million for Chenguang Biotech Group Co., Ltd. (Chenguang” or the “Company”) is to support the company’s permanent working capital needs to increase production. Chenguang is a leading producer of natural, plant-based food extracts and additives in China.

The Company currently sources raw materials from Xinjiang Province, China and Andhra Pradesh, India, and is looking to expand its sourcing footprint to Africa, which is the subject of an IFC advisory engagement. Chenguang is headquartered in Hebei Province and is listed on the Shenzhen Stock Exchange with a market capitalization of US$700 million.

The Company uses plant-based inputs including paprika, capsicum, marigold to extract flavoring and coloring ingredients for the food industry as well as active substances for pharmaceutical use. Chenguang’s procurement of plant-based inputs provides an invaluable market access for farmers in its supply chain. The company has historically relied on short-term loans for its financing needs and is seeking a long-term loan from IFC to help strengthen its balance sheet and support growth in China as well as in India.

Early Warning System Project Analysis



Investment Description

The total Project cost is around US$30-40 million and IFC investment is an up to US$30 million equivalent.

Private Actors Description

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.

Chairman Lu Qingguo owns 18.58% of Chenguang and his wife, Ms. Li Yuezhai (board member of the Company) holds 4.17%. 13 senior management team members own 5.35%. The remaining shares are owned by public investors.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Chenguang Biotech Group Co Ltd Client -

Contact Information

1/ The Project Contact

Company: Chenguang Biotech Group Co., Ltd. 
Point of Contact: Zhou Jing 
Title: Board Secretary 
Telephone Number: +86 310 8859024 
Mailing Address: No.1 Chenguang Road, Quzhou County, Hebei Province, China 057250 

2/General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

3/The Project Information Access

No.1 Chenguang Road, Quzhou County, Hebei Province, China, 057250


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