National Agricultural to Acquire Chengdu West Agricultural Products Wholesale Market
27 May 2015 - 12:25PM
Business Wire
Acquisition to Strengthen Agricultural
By-products Trading Platform, Promote Nationwide Internet Finance
Industry Chain
National Agricultural Holdings Limited (“National Agricultural”,
or together with its subsidiaries, the “Group”; SEHK:1236.HK) today
announced that the Group had entered into a letter of intent (the
“Letter of Intent”) with Dujiangyan City Modern Agricultural
Development Investment Co. Limited (都江堰市現代農業發展投資有限責任公司)
(“Dujiangyan Investment Co.”) for the possible acquisition of the
Chengdu West Agricultural Products Wholesale Market* (成都西部農產品批發市場)
(the “Wholesale Market”) operated by the latter, to expand the
Group’s agricultural-related business. The potential acquisition
will promote the upgrade of the Wholesale Market, facilitating the
circulation of agricultural-related products. It also marks a
milestone in the strategic deployment of the Group’s agricultural
by-products trading business, as well as further strengthening the
Group’s online finance industry chain, through transforming the
industry from a traditional wholesale market to an e-commerce
platform comprising O2O, B2B and C2C. In addition, the acquisition
underscores the extension of National Agricultural’s business
coverage from northern and southern China to western China and the
whole nation eventually.
Dujiangyan Investment Co. is developed by Sichuan Province
Dujiangyan City National Properties Supervision Management Office
(四川省都江堰市國有資產監督管理辦公室), which is also its investor. It has RMB28
million in capital and total assets of RMB200 million. The
Wholesale Market has a gross floor area of approximately 34,323
square meters and comprises three trading centers, a multi-function
building and a refrigerated storage and processing warehouse. It is
mainly involved in the trading of fruits, nuts and other
agricultural by-products. Leveraging the opportunity to cooperate
with the local government and state-owned enterprises in Dujiangyan
City, the Group plans to expand its agricultural e-commerce
business and agricultural finance business.
Upon the successful acquisition of the Wholesale Market, the
Group plans to develop the Wholesale Market into the largest modern
agricultural trading center in southwest China and eventually the
nation, integrating O2O, B2B, and C2C trading, logistic, storage
and inventory, agricultural finance, agricultural insurance,
settlement, capital management, and a by-product trading center
with trading of kiwis, imported fruits, nuts and agricultural
by-products.
Mr. Chen Li-jun, Chairman of National Agricultural, said,
“The acquisition is a significant move for the Company. It
underscores the strategic deployment of the Group’s agricultural
by-products trading business, after the successful launch of China
Agricultural Commodities Exchange early this year. In addition, the
acquisition demonstrates that National Agricultural’s business
coverage has extended from northern and southern China to western
China, and is expected to spread across China. More importantly,
the potential acquisition will further optimize and upgrade the
Group’s online finance business by transforming a traditional
wholesale market to an O2O, B2B, and C2C e-trading platform, with
value-added services such as trading, logistics, inventory,
agricultural finance, agricultural insurance, settlement and
capital management.”
About National Agricultural Holdings
Limited
National Agricultural Holdings Limited (SEHK:1236.HK) is a rural
market-based company that integrates financial services,
agri-related trade, information, industry and science research. Its
principal businesses are rural financial services, trading in
agricultural means of production, planning, operation and
management on urbanization development and high-tech information
technology, etc. These directives are fully implemented to
accommodate China's strategic goal of vigorously developing
“Agriculture, Rural Areas and Farmer” sector and a new model of
urbanization. Hebei Supply and Marketing Cooperative made an equity
investment in National Agricultural Holdings through its subsidiary
Parko (HongKong) Ltd. in November 2013.
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