Chapter 24

Due Diligence Guidelines –

Biological Assets

Appendix II – Examples of Factors for Consideration for Biological Assets

1. Plants (Trees/ Crops/ Other Plants)

• Site, size, location and nature of terrain

• Details and history of standing timber (for forestry)

• Production risks

• Rotation length

• Impact of weather, seasonality and/or pollution

• Disasters such as landslides, fire, earthquakes

• Cultivation plan, growth cycle and time to maturity

• Soil quality and improvement

• Irrigation

• Methods of harvesting and timing of harvesting

• Inventory checks – by weight or numerical count, remote sensing, field survey, aerial inspection and photography, satellite imagery

• Species and age profile

• Seed/genetic source

• Year of establishment or regeneration treatment

• Initial stocking

• Fertiliser and weedicide treatments

• History of pruning or thinning

• Insect and disease attacks and treatments

• Effect of any previous fires, flooding and storms

• Growth, mortality and removals

• Planned or potential future silviculture, strategies and projected growth rates

• Wildlife management

• Other uses of the land

• Operational practices

• Sustainability and environmental impact

• Supply strategy

2. Animals (Livestock)

• Life cycle

• Precautionary disease control

• Hygienic handling, sanitation and waste treatment facilities

• Contamination of feed (for example, melamine contamination), water or air

• Inventory control – records of quantity on regular basis, age group

• Inventory control of feed (as feed is perishable)

• Categorisation of breeder and progeny livestock

• Veterinary care, microbial tests, vaccination

• Disposal of aging breeders or unfit livestock – are they retired as scrap?

• Reproductive ability

• Slaughtering process

• Sustainability and environmental impact


HKCFEF Limited and the contributing law firms, accountants and sponsors are not offering these due diligence guidelines as legal, financial or professional advice or services and they should not be relied upon as such. These due diligence guidelines should not be used as a sole basis for any decision, action or inaction and are not meant to serve as a substitute for the advice of qualified professionals. See here for the full terms and conditions.

Due Diligence Guidelines

Factors for Consideration

Biological Assets

Hong Kong Sponsors Due Diligence Guidelines

Listing Document for Biological Assets

Examples of Factors for Consideration for Biological Assets

Biological Assets Listing Applicant

Initial Public Offerings of Agricultural Companies

Hong Kong Securities and Futures Commission

Biological Assets Due Diligence

Examples of Biological Assets
Due Diligence Checklist
Due Diligence Process
Due Diligence Compliance

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