New Huadu Industrial Group has announced their joining the Shanghai Povos Enterprise Group with a $32 million investment in Shanghai on Jan. 28.

After this, New Huadu becomes the second largest shareholder of Shanghai Povos, accounting for 19.9 percent.

At the press conference, Tang Jun, CEO and president of New Huadu, said Povos is a promising enterprise and New Huadu appreciates its rapid development and great potential. This financial participation serves New Huadu's overall strategy of diversified investment and will be the beginning for New Huadu to expand its business to private enterprises.

Tang added that New Huadu's future investments wil be directed towards whole industries and in doing so is most likely to choose representative enterprises like Povos in which to invest.

Tang also said that New Huadu hopes and will help Povos become listed on A shares in about three years, and help New Huadu to show a solid return on equity value.

Liu Jianguo, chaiman of Povos Group noted that partnership with New Huadu will play an important role in helping Povos become the "number one shaver brand " in China, and give it world market presence.

Liu thinks the cooperation not only brings funds, but also New Huadu's experienced team, which will offer Povos global management concept and development opportunities.

In addition, Liu mentioned most of the $32 million will be used for brand building and promotion.

Established in June, 2008, Shanghai Povos is an integrated large scale modern enterprise group, engaged in developing, manufacturing and marketing of home appliance products. Its current products' market share is about 10 percent and the net profit for 2009 hit 120 million yuan ($17.57 million).

New Huadu Industrial Group has expanded its business in various companies and industries, including mines, tourism, medicine, IT, real estate and so on.

To reduce high risks in investment, "to be number two" is the company's core strategy, and the company has been positioned as the second largest shareholder of many enterprises, which has so far been a high-yield strategy for New Huadu.