HONG KONG--(BUSINESS WIRE)--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.