Jiangcheng Sino-Aus Agricultural Science Development Co., Ltd (“SAAT”) was founded on April 14, 2014, with a registered capital of RMB 126.6 million. The Company is primarily engaged in the planting and sales of macadamia nuts. SAAT has three wholly-owned subsidiaries and three branches with 31 managers, more than 80% of whom hold specialized bachelor degrees or above. The plantation’s management team consists of over 20 experienced and knowledgeable experts in agriculture, and two international experts from Australia. The executive team is comprised of global talent with rich experience in agriculture, finance, management, and legal risk management.
SAAT increased its capital to RMB 140.64 million in August 2016. The revenues from 2014 to 2016 were generated from the seedling. In the years to come, the company expects plantation and manufacturing income from macadamia nuts. The operating income of SAAT in 2014 was RMB 4.56 million and the net profit was RMB 1.64 million, while the operating income in 2015 was RMB 8 million and the net profit was RMB 3.02 million; the operating income in 2016 is estimated to be RMB 24.96 million and net profit is estimated to be RMB 5.37 million.
In June 2016, HHBT and Shenzhen Jiuao Investment Centre, a wholly-owned subsidiary of Beijing Tongchuangjiuding Investment Management Holdings Co., Ltd, reached an agreement to secure a capital investment of RMB 75 million in SAAT, with HHBT and Jiuao Investment now owning 10% equity of SAAT respectively. Shenzhen Jiuao Investment Centre is engaged in real estate investment and cross-border mergers acquisitions.
In [June/July] 2016, HHBT and SAAT entered into an Equity Purchasing Agreement, which states that HHBT is entitled to purchase the equity of SAAT before June 30, 2018 and shareholders of SAAT have the obligation to transfer all their shareholdings to HHBT.