China’s Aoxin Tianli Group, a producer of breeder hogs, market hogs and black hogs, has signed an agreement with Shangzhi Xiaop (Dalian) E-Commerce to sell its products online.
As per the agreement, Aoxin Tianli will sell its Tianli-Xiduhei black hog pork products through Xiaop's group-buying web portal.
The agreement, which is effective from August 19, 2016, has a one year term. It can be automatically extended for successive one-year periods.
Aoxin Tianli chairman and co-chief executive officer Wocheng Liu said: “With the increasing popularity of online shopping, especially group buying in China, we believe that Ixiaop.com could potentially open up tremendous opportunities for our retail business.
“As an emerging online group buying site in China, Ixiaop.com is the sister site of www.popular.com.tw, a top-3 ranked online group buying site in Taiwan. Our branded specialty black hog pork products are now available for sale athttp://www.ixiaop.com/."
In July, Aoxin Tianli signed a letter of intent (LoT) to acquire a majority stake in Hainan-based Hainan Chengmai Zaohuaxiang Hog Industry (Zaohuaxiang).
Zaohuaxiang is a specialty black hog farm operator with an annual production capacity of 30,000 hogs.
Wuhan-based Aoxin Tianli is acquiring the stake through its wholly-owned subsidiary Wuhan Fengze Agricultural Science and Technology Development Company (Fengze).
Under the terms of the deal, Fengze will acquire a 51 to 60% equity interest in Zaohuaxiang for a combination of cash and stock.
Aoxin Tianli reported 5.5% decline in its revenues to $9.06m for the March quarter of this year compared to $9.59m in the same period of last year.
The company said that the fall in revenue reflected a reduction in the number of hogs sold as a result of the sale of two hog farms during the third quarter of 2015.