 Kiwi fruits are harvested in Sept-Oct at China Shenshan Orchard's plantations in Hubei Province. Photo: CompanyNew Zealand may be well-known for kiwi fruits but it's China which has become by far the world's largest producer of the fruit.
In its maiden financial report, the company said it reaped RMB111.2 million in revenue in the 6 months ended Dec 2021. It said it sold about 3.8 million kg of kiwifruits, produced in Hubei Province, at an average selling price of RMB29.5 per kg. Gross profit from the domestic sales, which made up 100% of its sales, was RMB14.8 million.  At investor briefing (L-R): Financial controller Raymond Ho; executive director David Zhao. |
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China Shenshan Orchard is the new name for the entity that was formerly Dukang Distillers Holdings, whose baijiu business has been disposed of.
After taking into account a RMB90.8 million gain arising from changes in fair value of its biological assets less costs to sell the assets, the Group reported an adjusted gross profit of RMB105.6 million for July-Dec 2021.
The net profit: RMB70.1 million.
The key harvest months are September and October, with sales in the subsequent months, while the 1H of the calendar year is devoted to planting and growing.
China Shenshan reports that it has enjoyed steady growth in revenue and profitability through the years, as illustrated below:
* Six months ended 31 Dec 2021, with respect to the continuing operations of the Group, being the kiwifruit business.
| Outlook for kiwifruit market in China |
The kiwifruit industry in China is rapidly growing, is fueled by rising disposable income as well as burgeoning domestic consumer demand for premium-quality kiwifruits.
Already, China accounts for 72% of the world’s total kiwifruit planting area.
Its production volume equates to 55% of the world’s total kiwifruit production1. (1 China Kiwifruit Industry Development Report (2020))
After more than 10 years’ experience in kiwifruit planting and cultivation in China, China Shenshan Orchard says it is more than just an ordinary producer:
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• Trademarks & patents: With a strong R&D focus, the Group currently holds 83 trademarks and 56 patents for grafting and harvesting methods and devices such as fertilisation mechanism and windproof device for kiwifruit planting, artificial pollination device, cutting device for grafting branches of fruit trees, etc. |
China Shenshan Orchard plans to start licensing its kiwifruit varieties to individual farmers. Photo: Company
While continuing its land expansion, China Shenshan Orchard plans to start licensing its kiwifruit varieties to individual farmers and expertise in kiwifruit planting to third-party kiwifruit growers.
In addition, it will manage kiwifruit plantation and cultivation operations in third-party kiwifruit plantations.
| Key takeaways: |
For more info, see the company's presentation deck here.
