HONG KONG, Sept. 2, 2016 /PRNewswire/ -- National Agricultural Holdings Limited ("National Agricultural", or together with its subsidiaries, the "Group"; stock code: 1236.hk) today announced the Group's interim results for the six months ended 30 June 2016. During the period, helped by the generous state support for the development of "agriculture, farmers and rural areas", the Group consolidated the layout of the internet finance industry chain within the nationwide network of supply and marketing cooperative system by using rural e-commerce and rural financial services as the entry points. The Group's business development strategy became more targeted and more effective and its revenue recorded RMB77.62 million -- representing an increase of 6.1% year-on-year; gross profit increased by 4.7% to RMB53.62 million and showing an upward trend. In addition, financial information services and software terminal operations brought satisfactory revenues to the Group, and loss attributable to owners of the Company was reduced by more than half year-on-year to RMB18.64 million.
Establishing JVs with enterprises under the supply and marketing cooperative system
Expanding the customer base and deepen the influence of Agripay
As the sole overseas-listed platform of the supply and marketing cooperative system under the direct supervision of the State Council, the Group captured the network resources of "agriculture, rural areas and farmers" accumulated over decades and successfully entered into cooperation agreements with several rural capital financed supply and marketing cooperatives at a provincial level, and obtained support from a number of well-established enterprises to use the "Agripay" capital management platform, laying a solid foundation for the rapid development of the Group's core businesses.
In May 2016, the Group entered into a cooperation agreement with Sichuan Agricultural Means of Production Group Company Limited ("Sichuan Agricultural") to jointly establish an e-commerce joint venture for the development of an e-trading platform in Sichuan province, which is to integrate supply chain finance into the traditional supply chain of Sichuan Agricultural and its subsidiaries.
After that, in July 2016, the Group entered into a cooperation agreement with Guangdong New Co-Op Skyrise Investment Co., Ltd. under Guangdong Province Supply and Marketing Cooperatives to jointly establish an e-commerce joint venture, which aims to integrate the existing resources of Guangdong Supply and Marketing Cooperatives and to jointly establish a tea trading platform and monitored warehouse meeting international standards.
Planning to establish a clearing center for bulk commodities to improve its internet finance industry chain
In 2016, the government has been advocating the establishment of independent third-party clearing centers which can provide unified settlements for commodity exchanges and factor markets. To actively follow this trend, during the period, the Group signed a letter of intent with Dalian Renewable Energy Exchange Company Limited which has an annual turnover in excess of RMB1 trillion, to establish an independent standard clearing center to provide unified settlement and transaction risk controls for various factor markets and platforms, such as Dalian Renewable Energy Exchange and bulk commodities exchanges, and to promote the development of financial derivatives and value-added online financial services. The Clearing Center is likely to become a professional and comprehensive service platform that can serve various factor markets and also encourage innovative development of relevant financial business. In addition, Agripay has obtained approval to develop wide-ranging cooperation with the Clearing Center in "intensive capital management" and online funding.
Seeking diversified growth strategies in various segments
Developing new sources of profit growth in internet finance sector
The Group has established diversified business strategies in agricultural-related business and internet finance sectors, including integrating resources for finance leasing business sector with the aim of developing China Coop Mengda as a stable resource of income. In addition, the Group has set up a diversified agricultural-related equity fund with key partners, to operate in the primary market and secondary market and to acquire high-quality agricultural-related enterprises and projects in China and abroad, which will boost the balanced profit growth for the Group and improve its overall profitability.
Mr. Chen Lijun, Chairman of National Agricultural said: "The Group has entered into several strategic agreements and participated in several quality cooperation projects based on its overall strategy. The Group will focus on the implementation and economic effectiveness of the agreements and programs, such as online and offline cooperation with the supply and marketing cooperatives in provinces, establishing and jointly managing the Clearing Center through a joint venture with Dalian Exchange and the highly effective operation of diversified finance and investment areas. In so doing, it will enhance the trading volume and user base of its finance platform Agripay. In addition, the Group will improve various comprehensive service functions of Agripay such as capital clearing, trading risks control and value-added financial research to further improve the depth and width of the Group's participation in rural financial services and e-commerce, so as to share the abundant results of agricultural economic development and create stable long-term return for our shareholders."
About National Agricultural Holdings Limited
National Agricultural Holdings Limited (1236.HK) is the only overseas listed platform of all the supply and marketing systems in China. It is an integrated company firmly rooted in rural markets. Its principal businesses include rural financial services, trading in agricultural means of production, urbanization planning, operations and management, and high-tech IT. The Group developed "Agripay" cash settlement system with UnionPay Network and Agricultural Bank of China; and a trading platform for agricultural products with Guangzhou Exchange Group and Dalian Renewable Energy Exchange respectively. To cater to the growth of its two flagship financial platforms, the Company -- in tandem with the large agricultural groups in provinces in China -- has pushed forward the online trading, through e-commerce joint ventures, of resources of the traditional supply chain of supply and marketing cooperatives and large agricultural groups in provinces in China. This year, National Agricultural Holdings Limited intends to continue to push steadily forward its cooperation with large agricultural groups in provinces in China, as it has done by establishing an e-commerce joint venture with Sichuan Agricultural Means of Production Group in May this year, and by establishing an e-commerce joint venture with Guangdong New Co-Op Skyrise Investment Co. under Guangdong Supply and Marketing Cooperative this time. This way, the strategic position will be further strengthened of National Agricultural Holdings Limited in the internet finance industry chain within the rural villages and supply and marketing cooperatives system throughout China
