National Agricultural Holdings Announces 2014 Annual Results
01 April 2015 - 6:29PM
Business Wire
Makes Steady Progress in Three Major
Businesses and Proactively Engages in Mergers, Acquisitions of
Agricultural Businesses and Upgrade of Industry Chain
National Agricultural Holdings Limited (“National
Agricultural”, or together with its subsidiaries, the “Group”;
stock code: 1236.hk) today announced the annual results of the
Group for the year ended 31 December 2014.
In 2014, leveraging government policies that support the
“Agriculture, Rural Areas and Farmers” sector, the Group aimed to
build a highly-effective agricultural industry chain through
partnering with leading enterprises in the market. It also focused
on mergers and acquisitions involving high-quality agri-related
enterprises by tapping the resources of the system of supply and
marketing cooperatives. During the year, the Group’s revenue rose
on the back of the establishment of agricultural business
platforms, and the commencement of parts of the operations. For the
year ended 31 December 2014, the Group recorded revenue of RMB116.8
million, representing an increase of 22% compared with the previous
year, attributable to the acquisition of China Coop Mengda, and the
Group’s increasing engagement in financial leasing businesses. With
cost of sales remaining steady, gross profit increased by 31% to
RMB88.1 million.
During the period under review, the Group proactively worked in
tandem with the system of supply and marketing cooperatives in
integrating, optimizing and upgrading various segments along the
industry chain of agri-related transactions. The Group further
promoted the development of “Rural Financial Services”, “Trading in
Agricultural Means of Production” and “Planning, Operation and
Management on Urbanization Development”.
Rural Financial Services
In 2014, the Group entered into joint venture agreements with
Xinyuan Taifeng Agricultural Asset Management (Beijing) Company
Limited (新源泰豐農業資產管理(北京)有限公司) and injected capital into China Coop
Mengda Financial Leasing Company Limited (中合盟達融資租賃有限公司). These
initiatives not only strengthened the Group’s capabilities in
various business segments including asset management, project
investment and mega data management, but also generated new sources
of revenue by solving the financing problems of agricultural
enterprises. The Group also jointly operated the “Agripay” (農匯通)
system with Guangzhou Unionpay Network Payment Co., Ltd.
(廣州銀聯�絡支付有限公司), which was mainly designed for professional
agriculture-related market payments and cash sweep services. The
Group aims to expand the scope of application for the system
nationwide, so as to proactively tap the strong needs of rural
enterprise financing and financial services.
Trading in Agricultural Means of Production
The electronic trading platform for agricultural products
jointly established by the Group and Guangzhou Exchange Group Co.,
Ltd. (廣州交易所集團有限公司) was officially launched at the beginning of
2015. The first batch of products traded on this platform –
chemical fertilizers – recorded turnover on the first half day of
launch exceeding RMB200 million. The Group believes that the
financial benefits of the platform will emerge next year. The Group
has started to expand the scope of trading in terms of product
variety, and to explore business opportunities for agricultural
machinery which will be available on the trading platform. Its
innovative e-commerce model has not only helped companies reduce
logistics costs and stabilized market prices, but also enhanced the
growth potential of the Group itself.
Planning, Operation and Management on Urbanization
Development
The progress in domestic industrialization, informatization,
urbanization and agricultural modernization continued to speed up
the development of rural land property rights transfer, which is
key to the development of “Agriculture, Rural Areas and Farmers”.
In light of such circumstances, the framework agreement signed by
the Group and the Guangzhou Exchange also covers the rural land
operation rights transfer business, which will be launched in the
future by both parties. While providing services for “Agriculture,
Rural Areas and Farmers”, both parties are jointly exploring other
potential businesses in the sector.
Mr. Chen Li-jun, Chairman of National Agricultural, said,
“The year 2015 marks the 12th consecutive year that the No. 1
Document of the Central Government has focused on the ‘Agriculture,
Rural Areas and Farmers’ sector, emphasizing the promotion of the
comprehensive reform of Supply and Marketing Cooperatives. The
government has continued its support for the development of rural
finance, and the transaction volume of agricultural means of
production and agricultural products is set for explosive growth.
The goal of reaching an urbanization rate of 60% by 2020 is coming
to fruition. All these demonstrate the enormous opportunities
arising from the market National Agriculture is operating in. The
Group is actively engaged in mergers and acquisitions to expand our
footprint in ‘Agriculture, Rural Areas and Farmer’ sector at a
faster pace. Some of the related businesses have started operations
and are making preliminary revenue contributions to the Group,
raising our confidence in the Group’s prospects.”
“Through the resources network and talent pipeline of the supply
and marketing cooperatives system and the Group’s scientific and
innovative business model, we are confident that the Group will
continue to develop innovative financial services, strengthen the
trading platform for agricultural products and improve the rural
land property rights transfer business. Further, we will work in
tandem with cooperatives to integrate the agri-related sector’s
industry chain by carrying out acquisitions and mergers. We are
confident of maximizing returns for our shareholders in the New
Normal of China’s economy,” Mr. Chen Li-jun added.
About National Agricultural Holdings
Limited
National Agricultural Holdings Limited (SEHK code: 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.
For National Agricultural Holdings Limited:Hill+Knowlton
StrategiesIris Wong, +852-2894-6263hl.wong@hkstrategies.comorJackie
Hua, +852-2894-6256jackie.hua@hkstrategies.com