New Stock News | China Zhonghe Agriculture Credit once again submitted an application to be listed on the main board of the Hong Kong Stock Exchange. The company's business covers over 550 counties in 23 provinces across the country.

According to the disclosure on September 27 by the Hong Kong Stock Exchange, Zhonghe Agricultural Credit Co., Ltd. (referred to as Zhonghe Agricultural Credit) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC as the sole sponsor. The company had previously submitted an application to the Hong Kong Stock Exchange on February 28, 2024. The prospectus shows that Zhonghe Agricultural Credit is a leading comprehensive agricultural service provider in China, focusing on the rural market in China, providing technology-driven comprehensive products and services including rural inclusive credit services, agricultural production services, rural consumer goods and services, and rural clean energy services, empowering small farmers and rural micro-enterprise owners. With nearly 30 years of deep cultivation in the rural market, the company has established a direct offline service network reaching rural areas and leading digital service capabilities, achieving outstanding results. As of June 30, 2024, the company's business covers over 550 counties in 23 provinces nationwide, rooted in over 100,000 villages, and reaching nearly 200 million rural population. As of the same date, the company has over 7,200 service team members and around 127,000 village-level partners in approximately 550 local service outlets, reaching rural users. According to Frost & Sullivan's report, the company is the largest non-traditional financial institution in the Chinese rural market with a market share of approximately 8.6% (based on total loan balances as of December 31, 2023). According to the same source, the company is the sixth largest agricultural materials and agricultural equipment e-commerce platform in China based on the total transaction value in 2023. As a leading comprehensive agricultural service provider in China, the company enhances cross-selling by providing credit solutions to intent customers of the agricultural production services and rural consumer goods and services division who have passed credit assessment, aiming to improve the cost-effectiveness of higher-priced products. These customers' increased demand for goods and services provided under the agricultural production services and rural consumer goods and services divisions enhances their demand for rural inclusive credit services, while the company's provision of rural inclusive credit services further promotes their demand for goods and services provided under the agricultural production services and rural consumer goods and services divisions. As of June 30, 2024, 84.8% of customers purchasing agricultural materials and agricultural equipment, and 71.3% of customers purchasing green durable goods, used the company's credit solutions to fund their purchases. Therefore, the company's product mix and customized product and service capabilities help enhance customer stickiness, reduce customer acquisition costs, promote cross-selling, and increase user lifetime value. Financially, in the fiscal years 2021, 2022, and 2023, and for the six months ended June 30, 2024, Zhonghe Agricultural Credit achieved total revenue of approximately RMB 2.224 billion, RMB 2.429 billion, RMB 3.181 billion, RMB 1.482 billion, and RMB 1.920 billion respectively; during the same period, the company's net profit was approximately -RMB 36.438 million, -RMB 199 million, RMB 206 million, RMB 280 million, and RMB 79.091 million respectively.