HONG KONG, June 24, 2015 /PRNewswire/ -- National Agricultural Holdings Limited ("National Agricultural", or together with its subsidiaries, the "Group"; SEHK code:1236.hk) today announced that an aggregate of 58,000,000 placing shares have been successfully placed to the Peoples's Insurance Company (Group) of China, a wholly owned subsidiary of GF Fund Management Co., Ltd., New China Asset Management (Hong Kong) Limited and China Life Franklin Asset Management Company Limited at a placing price of HK$4.25 per placing share. The subscription by these prominent investors is a testament to the Group's recognition in the capital market. The net proceeds from the placing amounted to approximately HK$240.3 million, most of which will be invested in the Chengdu West Agricultural Products Wholesale Market (the "Wholesale Market") to boost the growth of the Group's online finance business .
The People's Insurance Company (Group) of China subscribed to the Group's placing shares, underscoring the increasingly close cooperation between the Group and PICC since the two parties signed a strategic cooperation framework agreement earlier this year. In addition, the subscription by GF Fund Management, New China Asset Management and China Life Franklin demonstrates that the Group's online finance business strategy has been recognized by notable investors and attracts such prestigious investors to help develop the Group's business.
Founded in October 1949, The People's Insurance Company (Group) of China Limited is the first nation-wide insurance company in the PRC, and has developed into a leading large-scale integrated insurance financial group in the PRC, ranking 208th on the Fortune Global 500 list in 2014.
Since its establishment in 2003, GF Fund Management Co., Ltd. has been growing rapidly in tandem with China's economy and has evolved to become a premier fund house. As of 31 December 2013, GF Fund manages assets worth over USD 23 billion across the globe, ranking it 7th in mainland China in terms of total AUM arising from public retail investment funds.
New China Asset Management (Hong Kong) Limited is a subsidiary of New China Life Insurance Co., Ltd. New China Life Insurance Co., Ltd is a large life insurance company established in September, 1996 and is headquartered in Beijing. In 2014 the Company recorded income of RMB109,868 million for its life insurance business, with growth in premiums income and total assets reaching 643,709 million, maintaining the company's third-place ranking the in China's life insurance market. China Life was included on the Forbes Global 500 list for the first time in 2014.
China Life is one of the largest institutional investors in China, and, through its controlling shareholding in China Life Asset Management Company Ltd, is the largest insurance asset management institution in China. As at December 31, 2013, China Life's investment assets reached RMB 1,848,681 million, an increase of 3.2% from the end of 2012.
Of the total net proceeds of approximately HK$240.3 million from the share placement, the Group intends to use approximately HK$200 million for the possible acquisition of the business and assets of the Wholesale Market. In May, the Group signed a letter of intent with Dujiangyan City Modern Agricultural Development Investment Co. Limited for the possible acquisition of the Wholesale Market operated by the latter. The Group plans to develop the Wholesale Market into the largest modern agricultural trading centre in southwest China and eventually in all of China, integrating O2O, B2B, and C2C trading, logistics, storage and inventory, agricultural finance, agricultural insurance, settlement, capital management, and a by-product trading centre. The move will not only strengthen the Group's agricultural by-products trading business but will also accelerate the Group's business expansion across China.
Mr. Chen Li-jun, Chairman of National Agricultural, said, "The successful placement with the support of well-known investors illustrates that the Group's online finance business strategies are highly appreciated and are recognized by the capital market. As a leading enterprise in the rural finance sector and e-commerce industry serving 'agriculture, rural areas and farmers,' the Group will continue to seize market opportunities for its agricultural-related business and facilitate rural development. The Group will leverage the vital support from its investors to achieve long-term business growth in return for the trust and support bestowed to us by our shareholders."
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 of urbanization development and high-tech information technology, etc. These directives are fully implemented to accommodate China's strategic goal of vigorously developing the "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.
