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Introduction on the Direct Distribution Chain Operation Model of Prosperous Agriculture

2011-05-23 19:57
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SHENZHEN, China, May 23, 2011 /PRNewswire-Asia/ -- Uni Core Holdings Corporation (OTC Bulletin Board: "UCHC"), an aggressive 'company doctor' and 'incubator' of mid- to large-size companies in China, gives a detailed introduction on the agricultural resources direct distribution chain operation model of Shaanxi Prosperous Agriculture Limited Company ("Prosperous Agriculture"), an incubation project of UCHC.  Being the first organization operating the agricultural resources direct distribution chain platform in the nation, Prosperous Agriculture opened up direct sales outlets, acquired and united with large agricultural resources distributors in various provinces, in order to establish a direct distribution chain operation model, which echoed the previously advocated model combining production and sales operations, opening up the upstream and downstream production chain of the agriculture industry, and establishing the 'Home Depot' of the rural areas in China.

Agricultural resources direct distribution chain performs direct sales operation through terminal channel. The agricultural resources distribution and services terminal is formed through establishing sales outlets, answering to manufacturers and farmers directly, shortening the link between the distribution channels, integrating agricultural services; agricultural repurchase, and agricultural resources.  Prosperous Agriculture forms the agricultural resources distribution chain platform via the direct sales outlets and large agricultural resources distributors throughout various provinces in China.

It is difficult for traditional sales channels to operate at an effective scale due to the associated issues, such as the small scale of operation; low level of organization; low economic efficiency; excessive details for product circulation, and high circulation costs.  However, with the further development of China's agricultural market, the pace of opening up the agricultural resources distribution industry has been accelerated as well as the global competition in the market, the Chinese agricultural market is now a direct part of the international market, hence, reform in the distribution channel is imperative.  The direct distribution chain operation model of Prosperous Agriculture complements the deficiencies of distribution channels under traditional business model and responds to the current market development needs and has managed to achieve the economies of scale.

Prosperous Agriculture operates its direct distribution chain with unification of logo; brand; management; services, operation for various brands of pesticides; fertilizers; plastic sheets; agricultural machinery; seeds, feed and other agro commodities.  The operation adopts the mode of using shop as the front-end interface and backup by network as its core sales system; using sophisticated information management as its core control mechanism; facilitating the growth of members as core integration system, in order to combine purchasing; storage; distribution; wholesaling; retailing, and after-sale services into an agricultural resources sales and distribution chain platform with clear and effective divisions handling all the logistics directly with the manufacturers.  This allows complete elimination of the fake and shoddy products as the process involved in handling merchandises from the factory to the final retail points are all centralized for internal completion, and it simplifies the processes and reduces costs involved in delivering the products to the retail outlets throughout the urban and rural areas in China.  By offering membership system in the direct chain stores that offers better pricing and commission, it is expected that the market will be further expanded by continuously increasing the number of members.

The composite operation model, which incorporates production and sales into the system, further enhance the value chain of upstream and downstream businesses of the industry.  Currently, three heavy weight industry players - Shandong Mingshui Great Chemical Group, Shandong Luxi Chemical Co., Ltd. and Hubei Ezhong Chemical Industry Co., Ltd., had joined this composite model.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks, uncertainties and assumptions that, if they never materialize or if they prove incorrect, could cause the Company's results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligations and does not intend to update these forward-looking statements.

For more information, please contact:

Mr. Zhou Caiyi
Tel: +852-2827-6898
Fax: +852-2827-6989

Source: Uni Core Holdings Corporation

Related stocks: OTC-BB:UCHC

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