9 Dec 2009 08:28

Neptunus Bio to dive into health supplement market

Shanghai. December 9. INTERFAX-CHINA - Shenzhen Neptunus Food Co. Ltd. will soon become a wholly-owned subsidiary of Shenzhen Stock Exchange-listed Shenzhen Neptunus Bioengineering Holdings Co. Ltd., as part of a plan to enter the domestic health supplement market, Neptunus Bioengineering announced on Dec. 9.

According to the announcement, Neptunus Bioengineering has signed an agreement to purchase a 75 percent shareholding in Neptunus Food for RMB 1 million ($146,412.88) from its parent company Neptunus Group. Neptunus Bioengineering currently already owns a 25 percent stake in Neptunus Food.

Neptunus Bioengineering hopes to enter China's health supplement market through the acquisition. To date, Neptunus Bioengineering has mainly been engaged in the production of Western medicines, biochemical products and finished traditional Chinese medicines.

The announcement noted that the transaction is expected to be completed within three months. Neptunus Food recorded a net loss of RMB 7.33 million ($1.07 million) in 2008. As of the end of October this year, the company saw a net loss of RMB 26.83 million ($3.93 million).