POULTRY and chicken-feed producer Shanghai Dajiang (Group) Stock Co plans to issue convertible bonds worth up to US$50 million to expand its core business, amid the absence of guidelines for bond issues.
Du Shugu, chairman of the Shanghai-listed company, said yesterday in Hong Kong that an application for the issue had been submitted to the Shanghai Securities Administration Office two weeks ago.
He said the company aimed to raise between $30 million and $50 million from the issue of convertible bonds, expected to be launched in three months.
''The funds raised will be mainly put into our core operations of food-related business,'' Mr Du said.
The agriculture-based firm is controlled by Hong Kong-listed Thai conglomerate C P Pokphand, through a stake owned by Chia Tai Shanghai Co.
Mr Du said it achieved high flexibility of operation by vertically integrating its food-related business with its aquatic operations, for both domestic and export markets.
He forecast the company's 1994 after-tax profits to be 150 million yuan (about HK$132.75 million), based on Chinese accounting principles.
