Feb. 7, 2007 (China Knowledge) – China Huiyuan Juice Group, the Mainland's largest maker of pure juice that is seeking a listing on the Hong Kong Stock Exchange, plans to pay out 25% of its profit as dividend as it needs to reserve capital for expansion.

The planned dividend payout ratio is higher than the 21% paid by Huiyuan's smaller rival China Haisheng Juice Holdings in 2005 but lower than Yantai North Andre Juice's 37.5%.

Huiyuan, in which French food giant Danone has a strategic stake, plans to build factories in China's south-central and east-central regions, according to its preliminary prospectus.

Aiming to raise up to HK$2.4 billion in an initial public offering in Hong Kong, Huiyuan will set aside 35% of the proceeds to build plants and another 35% to expand and upgrade its sales and distribution networks. The remainder will be used for working capital and to repay debt.