Hong Kong-based tycoon Hung Cheung has become a strategic investor in leading Chinese citrus producer Dongfang Modern, paving the way for expansion plans flagged earlier this year.
To facilitate Cheung’s entry to the register, Dongfang’s major shareholder and chairman, Hongwei Cai, sold 7m shares at A$1.01 earlier this month in an off-market transaction. Cheung has reportedly signalled his intention to increase this stake in the company.
Dongfang – which listed on the Australian Securities Exchange (ASX) in 2015 – has citrus plantations spanning in excess of 9,800ha in the Guangzhou City district of Jiangxi Province. In June, the company signalled its intentions to acquire more plantations in China and explore possible investments in Australia, with Cheung's investment seemingly positioning the company to explore both options.
“We are excited to have Mr Hung Cheung invest in our company, and we value his strong support,” said Dongfang’s chief executive Charles So. “The company is now in the midst of harvest season, and we expect to surpass last year’s record output of 24,000 tonnes of fruit products. We look forward to reporting on a strong financial performance in the year ahead.”
Cheung has over 20 years experience in investment markets and is the executive director and chairman of Rui Kang Pharmaceutical Group Investments.
