HONG KONG--(BUSINESS WIRE)--National Agricultural Holdings Limited (“National Agricultural”, or together with its subsidiaries, the “Group”; stock code: 1236.hk) today announced that the Group had signed a framework agreement (the“Framework Agreement”) with China Co-Op Group Company Limited - Dalian Renewable Energy Exchange Company Limited (“Dalian Exchange”), under which the Group’s cash settlement system Agripay (農匯通) system will manage, operate and settle the operating funds by Dalian Exchange’s trading platform.
Dalian Renewable Energy Exchange Company Limited is wholly owned by China Co-Op Group Company Limited, and is operated by the All-China Federation of Supply and Marketing Cooperatives System. The Agripay system has been used to optimize enterprises’ capital management and reduce the cost of surplus capital. The cooperation underscores the strong support for the Agripay system from enterprises within the All-China Federation of Supply and Marketing Cooperatives System, and will further enhance the Group’s internet finance industry chain, proving that the Agripay system has won the support of large-scale domestic enterprises.
Dalian Exchange is principally engaged in the operations of an integrated commodities and services trading platform for renewable energy, agricultural by-products, agricultural means of production and financial rights. Based on statistics by Dalian Exchange, trading volumes exceeded 30 billion contracts in 2014, with turnover of over RMB 800 billion. Between 1 January and 28 February this year, trading volumes reached over 4 billion contracts, while turnover exceeded RMB 110 billion. Dalian Exchange is an active trading platform with a bright outlook. It has signed an agreement with Tianjing Boshang E-Commerce Company (天津渤商電子商務有限公司) and launched the “China Co-Op Group Petrochemical Trading Center” program on 20 April this year. The Center will manage the inventories and supervision system nationwide, and will manage the capital financing function and marketing network. It is expected that the platform’s trading volume will exceed RMB 150 billion within three years. The strong growth of Dalian Exchange will lead to a surge in capital flow for the Agripay system and concurrently benefit the Group.
Under the Agreement, all funds generated by Dalian Exchange’s trading platform, including transaction funds, trader membership fees, transaction management fees, handling fees, services charges and other subsidies and sponsorships received by the trading platform, will be collected and managed by the Agripay system. The Company will set up specialized access on the Agripay system for Dalian Exchange to facilitate the special management of the funds entrusted by Dalian Exchange.
Jointly operated by the Company and Guangzhou Unionpay Network Payment Co., Ltd. (廣州銀聯網絡支付有限公司), the Agripay system is mainly designed for professional agriculture-related market payments and cash sweep services. Since the start of the pilot run in 2014, its operations have been stable and achieved good results.
Mr. Chen Li-jun, Chairman of National Agricultural, said, “By cooperating with Dalian Exchange, the Group will expand the scope of application for the Agripay system nationwide, to proactively tap the strong demand for rural enterprise financing and financial services. This will further enhance our agriculture-related market payments and cash sweep services, and contribute to the “Agriculture, Rural Areas and Farmer” sector. As the government puts more effort into developing the agricultural finance industry, the Group will seize market opportunities, make more contributions to the agricultural industry, and strengthen its industry position while also achieving better returns for 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 on urbanization development and high-tech information technology, etc. These directives are fully implemented to accommodate China's strategic goal of vigorously developing “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.