August 29 -- Macrolink Real Estate (000620) and Beijing Sanyuan Foods (600429) will participate in the restructuring of Hunan Taizi Milk, reports Securities Daily, citing a company filing. Sanyuan Food will spend no more than 720 million yuan on the restructuring.

Chen Jianhong, who managed in Taizi Milk’s bankruptcy process, said Taizi Milk now confirmed unpaid loans of 1.2 billion yuan. The dairy firm once owned three companies, namely Taizi Milk Group, Taizi Milk Biological and Taizi Milk Distribution. It owned total land area of 530,342 square meters, 3,338 units of equipment, and 422 trademarks and 27 patents.

Insiders say that since Beijing Sanyuan Foods’ acquisition of Sanlu caused two consecutive years of losses, the profitability of the current acquisition is still uncertain.

Sanyuan Foods reported net profit of 28.39 million yuan in the first half of 2011, with sales revenue of 1.48 billion yuan, up 15 percent year-on-year.

The company attributed the profit growth to market integration, higher sales and gross margin as well as its Hebei subsidiary’s emergence from losses.

Sanyuan Foods also received investment income of 47.88 million yuan from McDonald’s in the first six months.

Source:capitalvue