China Kangda Food Company's (HKG:0834) indirect subsidiary, Qingdao Kangda Rabbit Co., Ltd (Kangda Rabbit), has incorporated a wholly-owned subsidiary known as Laiwu Kangda Feeds Company Limited (Laiwu Kangda Feeds) in the PRC and expected to start operations in the second half year of 2012.

Laiwu Kangda Feeds was incorporated with a registered and paid-up capital of RMB3 million.

Laiwu Kangda Feeds is engaged in the production of feeds which will supply to China Kangda and the third parties. The establishment of Laiwu Kangda Feeds will be able to secure the supply of raw materials and control the cost of raw materials through its own supply. The management of China Kangda also believed that the production and sales of feeds will further strengthen its product mix and satisfy market demand.