Shenguan Holdings (Group) Limited (Shenguan HLDGS) disclosed that its indirect wholly owned unit, Inner Mongolia Shengguan Biotechnology Co., Ltd., signed a Framework Investment Agreement on 13 August 2026 with the People’s Government of Horinger County for a proposed collagen food production project in Horinger Dairy Development Zone, Inner Mongolia.
The project carries a preliminary investment budget of approximately RMB90.00 million, covering the purchase of land-use rights, construction of production facilities and the procurement of machinery and equipment. The envisaged plant will focus on preparing collagen raw materials and manufacturing edible collagen sausage casings and other collagen-based food products.
Site details • Planned location: north side of Haoyuan North Street, Horinger Dairy Development Zone • Land category: Class I industrial land • Area: about 219 mu, with minimum dimensions of 530 metres (north–south) by 275 metres (east–west)
Land acquisition will proceed through government-run bidding or auction. Shenguan Biotechnology must win the tender and comply with Hong Kong Listing Rules—including any necessary shareholder approvals—before signing the formal State-owned Construction Land Use Right Grant Contract.
Transaction classification Based on the estimated RMB90.00 million outlay, one or more applicable percentage ratios under Chapter 14 of the Hong Kong Listing Rules are expected to exceed 5% but remain below 25%, positioning the potential deal as a discloseable transaction.
Strategic rationale Management highlights four primary benefits: 1. Expanded capacity for medium- and large-caliber collagen casings to strengthen product mix and competitiveness. 2. Proximity to high-quality cattle-skin supply, reducing logistics costs and improving product quality. 3. Complementary production base to enhance nationwide supply chain efficiency and support overseas market expansion. 4. Enhanced collaboration with local authorities, enabling industrial integration and policy support.
Next steps and caution No binding land-use contract has been executed, and the framework agreement does not guarantee project implementation. Shareholders and investors are urged to exercise caution, as the project depends on successful land bidding and future definitive agreements.