(Yicai Global) Sept. 23 -- The brand owner of Chu Oranges, established by China's famous tobacco-turned-orange entrepreneur Chu Shijian, aims to go public within six years, according to the late founder's son.
Yunnan's Chu Agriculture started optimizing its corporate structure last year to prepare for the listing, state-backed The Paper reported yesterday, citing Chu Yibin.
Chu Shijian, dubbed 'King of Oranges', began growing the fruit after he was released from jail on medical parole in 2002. In 1999, he was sentenced to life on corruption charges related to his time as the director of Yuxi Tobacco.
Chu Oranges is not seeking to increase its output or profits but boost its the quality of the two brands of Chu Oranges and Yunguan Oranges over the next two years, Chu Yibin said. The firm is looking to add two new product lines too.
Last year, the sales volume of Chu Oranges was CNY200 million (USD28.2 million) on 13,000 tons of fruit, Chu Yibin said. This year, the firm expects to sell 10,000 tons. The yields of the company's two farms are expected to be reduced from last year's over 80 percent to as low as 50 percent this year.
However, this year's pricing has been consistent with that of last year. XL-sized oranges sell for CNY168 (USD23.70) per five kilos on presale on e-commerce platforms, including Tmall and fresh grocery market Benlai.Com.
Editor: Emmi Laine