Mainland vegetable processor China Green (Holdings) says investors are keen on its planned initial public offer, despite troubles at two similar agricultural businesses. The Fujian-based company - which claims its average gross profit margin has been 60 per cent in recent years, while its average net profit margin was 40 per cent - said the offer was fully subscribed. This is despite the spectacular scandal surrounding orchid grower Euro-Asia Agricultural (Holdings), now in provisional receivership after it was discovered to have inflated its revenue by a factor of 20 in the lead up to its listing. Its founder Yang Bin is serving 18 years in prison for bribery and falsification of documents. There is also the case of Chaoda Modern Agricultural (Holdings), which ran into trouble last year after the company's former auditor PricewaterhouseCoopers refused to endorse its full-year earnings because of accounting discrepancies at two subsidiaries. It has since regained investor confidence. China Green said its high margins were due to economies of scale and its reliance on cheap mainland farm labour. The company sources directly from farmers - who typically earn between 300 and 400 yuan a month - and then processes the produce for export to Japan, where about 80 per cent of the company's output is shipped. China Green has fixed its offer price at $1.28 a share, the middle of its proposed price range. The offer is expected to raise about $175 million, with part of the proceeds being used to expand annual processing capacity to 100,000 tonnes next year and 150,000 tonnes by 2005, from 69,000 tonnes at present. Listing sponsor JS Cresvale director Francis Yeung said: 'The IPO was fully subscribed. But we have yet to audit the results.'