FURTHER B share issues are expected in Shenzhen from Shenzhen Yi Li Mineral Water and from two companies that have already listed their A shares; Shenzhen Gintian and Shenzhen Vanke.
Shenzhen Yi Li Mineral Water Factory is the largest mineral water company in China, selling under the brand name ''Mount Bijia''. The water is actually natural spring water from a Shenzhen spring discovered in 1982 and first bottled the following year. In 1988, Yi Li started advertising. The company has received a number of quality awards. In 1992 the business was incorporated and permission given to list both A and B shares on the Shenzhen exchange.
Yi Li's bottled water is so popular that wholesalers are willing to pay cash before delivery. Yi Li's permanent market position is illustrated by the fact that 300 companies share 70 per cent of the market, while Yi Li Mineral Water has the remaining 30 per cent share. Demand for ''designer water'' is growing fast in China and as consumer tastes become more sophisticated supply is failing to keep up.
Yi Li sells 43 million 600 ml bottles of Mount Bijia water a year. Production capacity is only some 15 per cent higher than this so a new factory is being built. By 1994, annual production could have increased from 1.8 million cases to 7.2 million.
Yi Li, like virtually every Shenzhen company, plans to go into property development, and already owns land in Futien and Baoan.
In Futien, Yi Li plans to develop a commercial/residential/office block on 20,000 square metres. In Baoan, a residential/commercial property is planned on 150,000 sq metre site.
