On 24 March, the Hong Kong Stock Exchange postponed the trading in shares of China Huishan Dairy Holdings Company Limited after an 85% drop of its share price. China Huishan Dairy Holdings Company Limited and FrieslandCampina each own 50% of the shares in a joint venture ‘Friesland Huishan Dairy’ in the Liaoning province of which FrieslandCampina has full management control.
The joint venture in the Liaoning province was established for the production and marketing of high-quality infant milk formula under the Dutch Lady brand in China. The joint venture also produces tea and coffee creamers. The milk provided by China Huishan Dairy Holdings Company Limited to the joint venture comes from its own dairy farms in China.
The joint venture Friesland Huishan Dairy continues to be operational and focuses on continuity for employees, customers and suppliers. FrieslandCampina is closely monitoring the situation and will, if necessary, take appropriate action to ensure the successful continuation of the joint venture’s activities in the Chinese market.