Uni Core Holdings Corporation, a Hong Kong based holding company, announced that Shaanxi Prosperous Agriculture Company Limited (“Prosperous Agriculture”), one of UCHC’s subsidiaries, opened two direct sales chain stores within 5 days in May. The grand opening of Prosperous Agriculture’s Zhongnan chain store (“Zhongnan Store”) was held on May 12 in Zhongnan Town of the Zhouzhi County, Shaanxi Province. The Jiangcun chain store (“Jiangcun Store”) at Jiangcun Town of the Zhouzhi County, Shaanxi Province had its grand opening on May 16 as well.
More than 600 and 800 farmers visited the Zhongnan Store and Jiangcun Store, respectively, on their opening day to apply for membership. Zhongnan Store achieved a total turnover of more than RMB50,000 within 2 days whereas Jiangcun Store had a turnover exceeding RMB30,000 on its opening day. It is expected that these two stores can contribute a total of annual sales turnover of RMB4 million (around US$600,000), and a total profit of RMB800,000 (around US$120,000).
The business purpose of Prosperous Agriculture direct sales chain system is – “Low prices daily,Worry-free quality,Membership privilegesServices the whole”.
The “one-stop” procurement model shortens the link between manufacturers and retailers which helps achieve lower prices than general retailers. Further, the principles of “rather having to shut down business than selling counterfeit products” and “only partner with formal large enterprises” ensure worry-free quality. The membership system of the sales model provides all levels, especially the high-level members, better service and lower prices; pre-sales, during the sale, after-sales and agricultural services provide the key members worry-free services on agricultural resources procurement, application, results and tracking. For future agricultural resources sales, Prosperous Agriculture has undoubtedly developed a brand new and most appropriate sales model for the market development.
Farmers highly recognize the sales model of Prosperous Agriculture with direct sales chain stores and prefer to buy from formal agricultural resources direct sales chain stores than the traditional self-employed stores. The farmers’ purchasing decisions are not simply due to prices below the market, but the rest-assured product quality and better services. Many large agricultural product growers processed their membership with Prosperous Agriculture on the opening day to enjoy the company’s member services. In cooperation with large growers and co-operatives, the advantage of the direct sales chain model of Prosperous Agriculture is increasingly prominent.
Mr. Wang Fei, General Manager of Prosperous Agriculture, said: “As the pioneer and practitioner of agricultural resources direct sales chain model, Prosperous Agriculture not only is the first company to persistently apply its more than a decade of experience in enterprises of the agricultural industry, but is continuously exploring and reviewing the essence of direct sales chain model, through which, Prosperous Agriculture accumulated and precipitated a wealth of experience in operations management and logistics for the future replication of its direct sales chain model. Prosperous Agriculture intends to open about 100 direct sales stores in Shaanxi and the surrounding regions in three years by way of self establishment, merger and transformation in order to reach the target of sales turnover at RMB200 million (about US$31 million).”
About Uni Core Holdings Corporation (UCHC.OB)
Uni Core through its subsidiaries develops, manufactures and distributes environmental friendly paper and agricultural products based upon its proprietary technology and supply chains. The Company was founded in 1998 and is headquartered in Hong Kong.
APT Paper Group, a wholly owned subsidiary, headquartered in Shenzhen, Guangdong, China, was founded in November 1993. UCHC acquired 100% of APT in June 2010. Based upon proprietary technology, production, marketing and global supply chains, APT is one of the leaders of the modern environmentally friendly packing and honeycomb paper products industry in China. APT’s products are produced from recycled materials and are recyclable. APT’s products include honeycomb paper pallets, honeycomb paper panels, honeycomb paper cartons, honeycomb paper coffins, honeycomb paper cushions, paper slip-sheets, paper corner protectors and corrugated paper products. APT holds patents throughout the world on many of its products. Some of APT’s customers include Wal-Mart, Costco, Sam’s Club, Sony, Nokia, DHL, Haier, Hisense, among others.
Prosperous Agriculture, 51% of which is owned by UCHC, is headquartered in Xi’an, Shaanxi Province, China. Prosperous Agriculture manufactures and distributes agricultural brands and also establishes a national agricultural resources chain direct sales platform through the opening and acquiring of agricultural resources direct sales outlets and dealers, and by working with well-known manufacturers of agricultural products. Prosperous Agriculture integrated more than 2,000 agricultural resources.
Safe Harbor Statement:
Except for statements of historical fact, this document contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of the Company’s products. Such forward-looking statements are based on present circumstances and on the Company’s predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include the Company’s ability to raise capital to engage in operations, general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors that the Company has little or no control. Such forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in documents filed from time to time by the Company with the Securities and Exchange Commission.
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