- Business
- Chia Tai Enterprises International Limited (Stock Code: 3839.HK; OTC: CAIHF) is an investment holding company principally engaged in the manufacture and sale of animal health products and chlortetracycline in Mainland China, the Asia Pacific excluding Mainland China, the Americas, Europe and other international markets. The company operates through two primary segments: Biochemical, which encompasses the production and sale of chlortetracycline premix, chlortetracycline hydrochloride, vaccines, test kits, additives and other related veterinary products used as feed additives to promote livestock growth, prevent or cure animal diseases and enhance feed efficiency under the Shihao and Citifac brand names; and Industrial, which through its joint venture ECI Metro Investment Co., Ltd. and associate Zhanjiang Deni Vehicle Parts Co., Ltd. involves the sale, leasing and servicing of Caterpillar machinery equipment such as excavators, power generators, bulldozers and compactors along with spare parts, as well as the manufacture and sale of motorcycle carburetors and automotive parts for automobile and motorcycle manufacturers. Incorporated in 1987 and headquartered at 21st Floor, Far East Finance Centre, 16 Harcourt Road, Central, Hong Kong, the company serves major customers including farms, pharmaceutical companies, trading companies and feed mills, with 99% of its non-current assets located in Mainland China and approximately 900 employees across Mainland China and Hong Kong; it is a subsidiary of Charoen Pokphand Foods Public Company Limited. In recent developments, the company reported revenue from its biochemical segment doubling to US$323.3 million for the six months ended 30 June 2025, driven by a strategic shift toward animal health products which rose to 84% of sales from 67% a year earlier, reflecting expanded trading of new offerings including vaccines, test kits and additives with the HOEL Group since October 2024 amid the latter's animal feed and farming business growth. To accommodate this demand surge, evidenced by 2024 sales to the HOEL Group reaching US$160.3 million and US$77.7 million in the two months to February 2025, the company proposed revising its 2025 and 2026 annual caps under the 2023 Master HOEL Purchase Agreement from US$194.3 million and US$218.8 million to US$506.1 million and US$556.7 million respectively, incorporating a 5% buffer above projections based on historical trends, competitor pricing and expected HOEL Group expansion, with internal controls including monthly sales monitoring by the Pucheng Head of Finance to ensure compliance.