The Company was first listed in 2008 as China’s No.1 developer and operator of underground shopping malls, it managed 22 malls across 12 cities in China. As at 31 December 2015, the total gross floor area (“GFA”) under management amounts to approximately 1.27m square meters (“sq.m”), and leasable GFA amounts to approximately 0.87m sq.m. In addition, the Company also has project reserves of approximately 4.81m sq.m.In 2015, the company had undergone some reorganization, in which we purchased the operations rights of one of the most profitable agri-produce wholesale market operators in China and subsequently in 2016 disposed most of the underground shopping mall assetsfor a cash consideration of US$1bn. As a result, the Company is now in the more promising agriculture sector with enhanced cash flow.On 5 June 2018, the Company announced the Hangzhou Acquisition and the Hada Acquisition, in order to (i) acquire various companies which operates fruits, vegetable and seafood wholesale markets in Hangzhou, the PRC; and (ii) to acquire the land and properties where our existing 7 wholesale markets operate. The completion of Hangzhou Acquisition took place on 24 July 2018.
Our business model primarily consists of the following:
(a) the leasing or providing of space in the form of trading halls or open areas tothe traders for the trading of agriculture produce;
(b) the leasing or providing of warehouses, icehouses and other designated spaceto the traders for the storage and packaging of agriculture produce;
(c) the provision of transportation and third-party logistics information services totraders;
(d) other value-added services including packaging of the agriculture produce.
We believe the macro backdrop of urbanization and consumption upgrade in China brings huge growth potential to the company’s business, we endeavors to becoming the trusted partner with most major wholesalers and retailers of agriculture produce in China in bringing affordable and better quality food to the consumers.
