A Shenyang-based food processing and berry cultivation firm hopes to sell its shares in Hong Kong and has quickly moved to scotch comparisons with a notorious burn-out case from the same province, Euro-Asia Agricultural (Holdings).
L&D Group - which last year recorded 1.4 billion yuan (about HK$1.3 billion) in sales - plans to use the listing proceeds to fund an expansion of sales and distribution channels across China.
L&D Group founder and managing director Yang Kai said the enterprise, formed in 1992, was considering a spin-off of three core businesses for separate listings in Hong Kong, including food processing, berry cultivation and its dairy division.
'We hope at least one division will be floated on the Hong Kong exchange in the second or third quarter,' Mr Yang said.
Although not revealing the firm's profitability he said food processing and dairy products each accounted for about 35 per cent of total sales last year while gross profit margins averaged 20 per cent.
In September, Shenyang-based orchid grower Euro-Asia was investigated by Hong Kong stock market regulators after it was alleged to have cooked its books by inflating revenue 20 times to obtain a listing in 2001.
Chairman Yang Bin remains under arrest in Beijing for tax evasion and other finance-linked crimes.