The Parkview Group, has announced the reverse merger with Anhui Taiyang Poultry, a vertically integrated duck breeder, processor and distributor and the completion of a $5 million private placement to fund future growth.
Located in Ningguo City, Anhui Province, China, Taiyang raises, processes and markets ducks and duck related food products through three business lines. Taiyang has the capability to manufacture its own feed and utilise the internal production stock to supply the food processing unit, thus reducing operating costs. All three of Taiyang's units are fully integrated to maximise production efficiency, operating leverage and profits. For the six months ended June 30, 2010, Taiyang generated $19.6 million in revenue and $3.2 million in net income.
Taiyang intends to utilise the majority of the net proceeds to add a cooked food processing line. The market for pre-packaged, ready-to-eat meals in China is growing rapidly and Taiyang intends to leverage its existing "Hao Yang Tian" name brand. Upon the completion of the new product line, Taiyang will have the ability to increase its gross profit margin through the sale of the higher-margin ready-to-eat meals.
Wu Qiyou, Chief Executive Officer and Chairman of the Board of Directors commented, "We are very pleased to become a US publicly listed company and thank our new investors, along with our partners at Laidlaw & Company for contributing the capital necessary for us to implement our growth strategy." Wu continued, "Having operated successfully for nearly 15 years, today our company consists of three complementary business units. Although each unit has its own business model the overall financial strategy remains the same, to integrate each unit together to maximise production efficiency and profits. In doing so, we save by leveraging shared overhead, reduced marketing, distribution and transportation costs. We are extremely optimistic about the opportunity to drive incremental growth by offering pre-packaged duck products to consumers, a rapidly growing vertical market in the food services industry."
Taiyang's current production units include 100,000 tons of feed, 600,000 parent duck seedlings, 30 million commercial duck seedlings, and processing capacity of 15 million ducks.