Mainboard-listed Dukang Distillers Holdings has completed its restructuring with the acquisition of the kiwi fruit business.
Dukang Distillers was previously in the business of producing white liquor (baijiu) in China’s Henan Province, has disposed of its existing baijiu business.
To reflect its new business, the company will change its name to China Shenshan Orchard Holdings.
Its stock code BKV on the SGX-ST and 911616 on the Taiwan Stock Exchange will remain unchanged.
According to the company’s circular dated March 31, the company has recorded a steady growth in revenue and net profit. The figures were also minimally impacted by the Covid-19 pandemic in China in 2020.
In the FY2017, FY2018 and FY2019, Dukang Distillers saw revenue of RMB49.5 million ($10.3 million), RMB61.7 million and RMB99.5 million respectively.
Net profit for the FY2017, FY2018 and FY2019 stood at RMB19.5 million, RMB25.3 million and RMB53.4 million respectively.
The restructuring is expected to bring an immediate turnaround with its steady revenue stream and sustained profitability, according to the group.
Moving forward, the group will become a horticultural marketing company that focuses on the planting, cultivating and sale of kiwi fruits in China.
This is in line with the Chinese government’s goal of eradicating total poverty by modernising the agricultural industry in China by 2035.
As such, the government has granted higher subsidies for large scale landholders and boosting the process of rural land transfer.
The group is expected to benefit by the policies of the Chinese government. It is also entitled to a full exemption of enterprise income tax on profits from its kiwi fruit business.
The group holds forest use rights for eight orchards, spanning a total land area of 6.5 million sqm, which is believed to be one of the largest domestic kiwi fruit orchards in Hubei’s Chibi City.
Shares in Dukang closed 2.8 cents lower or 14.9% down at 16 cents on July 5.
Photo: Dukang Distillers
