Bojun Agriculture Holdings Limited announced that since listing on the Australian Securities Exchange in early December 2017, it has rolled out its product development and is on target to meet its new production line commissioning, as disclosed in its prospectus dated 5 September 2017.
As part of the Company’s stated growth plan, Bojun has acquired a new bottled fruit vinegar beverage production line (approximately $1 million), and it is at the stage of installation and commissioning. Following commissioning, and when it is reached full production, it is expected that the new production line will expand the Company’s fruit vinegar production capacity from 25,000 tonnes to 30,000 tonnes per annum.
Bojun has also built a new peel processing workroom with peel drying equipment to turn citrus peel previously discarded as waste, into sellable dried peel products for further thirdparty processing. The new peel handling facility has also improved the overall utilisation rate of raw material (citrus fruits) and will generate additional revenue for the Company. The cost of building this facility was a modest $0.25 million, with a potential payback period of approximately 3 years.
Research and Development
A special temperature and mix cycle air-conditioning control system for fruit wine fermentation was developed in conjunction with Jiangxi Agricultural University costing $0.3 million.
The Company has also been focusing on R&D to support new product development. A total of $0.93 million wasinvested in R&D projects with universities and other research institutions in China on planting and cultivation of fruit trees. This includes investment in research on deep processing of fruit peel which resulted in the building the new peel workroom referred to above. Another investment was the research of industrial applications of key techniques of Nanfeng Mandarin fruit juice fermentation, as well as comprehensive utilisation of whole fruit biomass. The Company has also invested in researching the integration of high-yield cultivation technology of Magu Mountain Date and a demonstration orchard.
Although specific R&D funds have yet to be invested in the R&D projects with an Australian institution at present, in November 2017, Australian agricultural expert Dr. Shane Hetherington, Director of Horticultural at NSW Department of Primary Industries, undertook a visit to the Company’s office and plant in Jiangxi to learn more about Bojun’s corporate culture, production, R&D, fruit vinegar and fruit snacks. The parties discussed the potential cultivation and planting of Australian citrus and other citrus fruits in details. The parties expressed strong desire to negotiate at an appropriate time to determine the implementation of a final R&D cooperation project.
Marketing and Promotion
As outlined in the Company’s prospectus, the marketing and sales strategy consisted of targeted marketing and advertising to increase product awareness and brand recognition. These efforts have seen a positive result in product sales and order enquiries. The Company is looking forward to highlighting these results in its upcoming half year report, due by the end of May 2018.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.