"The Belt and Road Initiative" Improved Trade between China and Cambodia; North Asia Resources Holdings Limited (00061) Takes Advantage of the Opportunity

(ACN Newswire) At 24 March 2017, the Big Data Report of Trade Cooperation under the Belt and Road Initiative 2017 released. According to the figures, It was reported that the total trade volume between China and the along countries in 2016 about 953.59 billion US dollars, around 25.7% of the total trade volume of China. The export from China to the along countries increased steadily since 2011. In 2016, the export volume from China to along countries is about 587.48 billion US dollars and reached a high level in the recent years. Among which, Kyrgyzstan, Hungary, Romania, Cambodia and other 19 countries are in large trade scale between China. And the trade volume growth faster than the others, in the China's large trade volume, and trade growth is faster and in the context of global trade weakness, China is a "potential growth" country.

Cambodia, the cassava is the main crop and export product country, is an important node in Southeast Asia as an important step in China's "the Belt and Road Initiative". It has just begun to embark on industrialization, infrastructure and other aspects are constantly improving, which contains great investment opportunities. Utilizing a large-scale cassava planting in Cambodia, it can not only achieve the base of processing plants, but also save 80% of the cost of transportation of raw materials, but also solve the problem of fresh cassava storage.

Responding to the national strategies, North Asia Resources Holdings Limited reverted the corporate vision to the environmental biotechnology business.

Surfing the trends of the Belt and Road Initiative and having an insight of the potential development of the Cambodia's Economy, North Asia Resources Holdings Limited (00061.HK) (the "Company") has acquired some land resources in Cambodia and intended to build up a standardise and continuing sustainable business model for cassava business. The Company has also vigorously develop Biofuels Ethanol to strive for sustained competitiveness in the global marketplace.

At 31 March 2017, the Company announced the intention, in the consideration of not more than US$53,200,000, to acquire 21,000 mu of the Economic Land Concession in Pursat Province of Cambodia. The Company shall satisfy the consideration in (i) an aggregate of HK$28,000,000 as the Deposit will be payable in cash by three tranches by the Company to the Obligors on dates mutually agreed between the parties to the Acquisition Agreement prior to Completion; and (ii) the remaining balance of the consideration will be satisfied by the Company by way of allotment and issuance of a maximum of 11,512,878,787 Consideration Shares approximately 13.63% of the enlarged issued share capital.

At 13 April 2017, the Company further announced the execution of strategic cooperation framework agreement between the Company and Henan Tianguan Enterprise Group Co., Ltd.. Pursuant to the Strategic Cooperation Framework Agreement, the parties agreed that, among other things, the Company shall cooperate with Henan Tianguan in planning to build a recycling industrial module park in Cambodia using tapiocas as raw materials for the production of 100,000 tons of ethanol biofuel and their by-products annually, such as methane, carbon dioxide, bio-solid organic fertilizers and bio-power generation.

The current principal businesses of the Company are to sales of information technology products, system integration, software development, technology service and comprehensive product solution and geological survey, exploration and development of coal, sales of coking coal and coal trading. As the coal mining segment business was blocked by the government's policies in the past few years and since the Chinese Government intended to improve the better environmental conditions, lots of the polluted businesses were blocked under the policies. Hence, from 2015, the Company realized the necessity to explore different type of business segments to enrich the profit base and the continuing sustainable vision.

Commenced in 2016, the Company trial started the cassava trading project in Cambodia and exploring the chance to acquire the land resources. The Group targeted to acquire and develop 10 land models, around 200 thousands ha area. And in March 2017, the attempted acquisition of the first phase of the 315 thousands mu around 21 thousands mu area is in progress.

Cassava can be used to develop of bio-ethanol-based clean fuels and edible, industrial starches, biomass pellet fuels, bio-generating, carbon dioxide, solid organic fertilizers and corresponding ancillary products. By optimizing the combination of research and development to develop from the beginning of land cultivation to end products, i.e. Bio-fuel Ethanol, as a set of recycling modular business model for the next step in the strategic development and competition in the global industry market has laid a good foundation.

Strategic cooperation between the Company and Henan Tianguan to build up the new production chain of cassava products.

Throughout the cooperation between the Company and Henan Tianguan, it was planned to by using cassava as the raw material to build up an annual output of 100,000 tons of bio-fuel ethanol and its by-products of a recycling industry module park in Cambodia. Since Henan Tianguan is a leading global player in the domestic bioenergy industry with a history of 78 years and the largest domestic manufacturer of ethanol fuel, with an annual output of approximately 800,000 tons of ethanol, it needs to import a large number of tapioca slices annually from Southeast Asia as raw materials for the production of ethanol. With respect to industrial technology, it has built up over years numerous globally cutting-edge patents and proprietary technologies in the areas of ethanol fuel, biogas and power generation, as well as leading operational and management advantages. In particular, its integrated technology for the co-production of "ethanol, electricity, biogas and fertilizer" has gained a leading position in the domestic industry and achieved globally advanced standards.

Given the Company and Henan Tianguan have interests in common, the Board believes that the entering into of the Strategic Cooperation Framework Agreement would enable the Company to leverage on the expertise of Henan Tianguan, a domestic bioenergy producer, for the production, management and trading of ethanol biofuel and by-products of tapioca-based ethanol fuel as well as for other business cooperation in the recycling industry. The cooperation will substantially help the Group further expand its modular management and production of ethanol biofuel-related business, and will play a positive role in broadening the income stream and industrial transformation for the Group in the long run. READ MORE