Executive Summary
The Group is the single largest orange plantation owner and the single largest orange producer in the PRC. Asian Citrus currently owns and operates two orange plantations: the Hepu Plantation in Hepu County in the Guangxi Zhuang Autonomous Region, occupying
approximately 30.9 sq. km, and the Xinfeng Plantation in Xinfeng County in Jiangxi province,
occupying approximately 37.1 sq. km.
Company History
Current Events
Business Model
The Group’s primary focus is selling quality oranges at an affordable price and strengthening its position as a leading orange producer in the PRC. The Group’s strategy comprises:
* increasing volume through higher production levels and sourcing from third parties;
* building a national brand in the PRC;
* increasing profitability by growing sales to supermarkets; and
* expanding vertically by developing juicing and nursery businesses.
Products/Services
The Group cultivates and sells two types of oranges: winter (the varieties grown being Navel, Hamlin, Pineapple and Hong Jiang) and summer (principally Valencia).
Segments/Customers
The Group sells its oranges to supermarket chains, corporate customers, wholesalers and sole proprietors in the PRC.
Production/Operations
The Hepu Plantation produced approximately 111,201 tonnes of oranges in the financial year ended 30 June 2006. The Directors expect the development of the Xinfeng Plantation to be completed in June 2007 and the plantation’s first commercial harvest to take place in November 2007.
Distribution/Routes to Market
The Group is developing a wholesalers’ market and an orange processing centre in the Xinfeng County Zhongduan Industrial Park near the Xinfeng Plantation.
Market & Competition
According to the United States Department of Agriculture, world citrus production in selected major producing countries in the year to November 2006 was estimated to be 72.8 million tonnes. According to the United States Department of Agriculture, Chinese orange production increased by nearly 5 per cent in the year to November 2006, to approximately 4.5 million tonnes, and is forecast to grow by a further 8 per cent, to 4.8 million tonnes, in the year to November 2007.2 According to the USDA, Chinese production is expected to increase significantly by 2010, in particular in Jiangxi and Chongqing.
According to a report by McKinsey, China will become the world's third largest consumer market by 2025. By that time, McKinsey predicts that 59 per cent of Chinese residents will live in cities and aggregate urban disposable income will have reached RMB22.6 trillion, up from RMB4.8 trillion in 2005.
Market Share
There are no official statistics…
