SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (“SkyPeople” or “the Company”), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, recently declared […]
SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (“SkyPeople” or “the Company”), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, recently declared that on March 20, 2017, its wholly owned auxiliaries, Hedetang Foods (China) Co. Ltd. (“Hedetang China”) and Hedetang Farm Products Trading Market (Mei County) Co. Ltd., (“Hedetang Farm”) reached a contract with Xi’an Taizhan Financial Administration Co., Ltd. (“Taizhan”) to jointly establish a new company presently named China Agricultural Commodity Trading Market Co., Ltd. (the “China Agricultural Commodity Trading Center”) in Mei County, Shaanxi Province, China. The trading center’s name is to be approved byChina’s National General Administration for Industry and Commerce.
“We estimate that the China Agricultural Commodity Trading Center could generate commodities trading volume of RMB 100 billionand revenue of RMB 100 millionover the next three years,” commented Hongke Xue, Chief Executive Officer of SkyPeople. “Instead of a traditional trading model for agricultural products, our trading center will utilize an e-commerce business model which we envision will draw major commercial traffic and market share to the platform.”
“To further enhance our new trading platform, we are also launching standardized financial contracts, long-term commodity trading services and commodity options that we believe will broaden the trading center’s platform while generating additional revenue. We also plan upon developing close relationships with banks who would offer financing services to meet our customers’ needs. Our recent declarement of our entry into the FinTech space is meant to augment this traditional access to capital.”
“Our aim is to build a regional agricultural products trading market and to become a leader in agricultural finance technology. We are anxious as to the potential of this new business and view the establishment of this innovative trading center as an important milestone for SkyPeople,” Mr. Xue concluded.
Following the agreement, the total registered capital for the China Agricultural Commodity Trading Center will be RMB 50 million (about $7.35 million). Hedetang China has agreed to contribute RMB 17.50 million (about $2.57 million), Hedetang Farm has agreed to contribute RMB 15 million (about $2.21 million) and Taizhan has agreed to contribute RMB 17.50 million (about $2.57 million) to the China Agricultural Commodity Trading Center. The agreement stipulates that each shareholder will split both the profits and the losses of the new entity on a pro rata basis.
The business scope of the China Agricultural Commodity Trading Market will include market administration of pan-resource commodity contract transactions and transaction capital settlements; commodity transaction market administration services; relevant consultation services of the above-mentioned businesses; RMB settlement services for commodity cross-border transactions; and, supervision services for logistics storage. Once established, the China Agricultural Commodity Trading Center will become an innovative platform that promotes agricultural e-commerce trading, industrial integration and modernization, and financial innovation.
It is planned that the China Agricultural Commodity Trading Center will focus on the trading of agricultural products and will expand its capabilities to include financial derivatives based on market trends and shareholders’ needs. The China Agricultural Commodity Trading Center will be designed to rely on advanced financial and trading technology to standardize the prices of agricultural products and will offer an open, fair and market-based pricing mechanism. It is also planned that trading center will offer a call auction market and tradeable derivatives to meet customers’ investing and financing needs.
Interpace Diagnostics Group, Inc. (NASDAQ: IDXG) (the “Company”), a fully integrated commercial company that provides clinically useful molecular diagnostic tests and pathology services, recently declared […]
David Williams is a chartered accountant by profession. He looks for investments that generate strong value in the long run, and also assist investors avoid pitfalls through his analysis. He covers various equities that interest him and writes about these equities from a unique and “out of the box” perspective.