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.
The total Project cost is around US$30-40 million and IFC investment is an up to US$30 million equivalent.
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.
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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
2121 Pennsylvania Avenue, NW
Washington DC 20433
3/The Project Information Access
No.1 Chenguang Road, Quzhou County, Hebei Province, China, 057250
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