Chinese food manufacturer makes ASX debut

Chinese food manufacturer makes ASX debut

Tue, 05/12/2017 - 15:24
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Nangfeng mandarin

An ASX listing will give Bojun access to a new source of capital, as well as premium Australian fruit. Photo: Jonathan Pielmayer

Chinese food and beverage manufacturing business Bojun Agriculture Holdings says it is well-placed to capitalise on a growing Chinese market for fruit-based snacks and beverages, after listing on the Australian Securities Exchange.

Bojun Agriculture Holdings was officially listed on the ASX last week, after it raised more than $7.6 million through its IPO, which was priced at 30 cents per share.

Its stock has been largely steady since listing, closing trade today at 31 cents.

Bojun’s parent company is Jianxi Bojun Ecological Agriculture Development Co, which was established in April 2006.

The company has created a fruit cider and fruit vinegar manufactured from Nanfeng mandarins, through a patented process.

Bojun also owns patents to produce Nanfeng mandarin orange fruitcake.

Nanfeng mandarins are well-known in China for their thin skin and abundant juice, making them the key ingredient in Bojun’s range of drinks and other fruit-based products.

The products have been in increasingly high demand in China, as consumers become increasingly health-conscious and seek out healthy snack alternatives.

According to its prospectus, Bojun is planning to use the IPO proceeds to upgrade its China manufacturing base, create new products and fund other research and expansion programs.

Its Australian subsidiary is chaired by former NSW deputy premier Andrew Stoner, while Bojun was founded by Jianxi Horticultural Society director Bo Zhu.

“The company believes that an ASX listing improves liquidity and funding sources and provides access to the Australian market,” Mr Stoner said in a letter to investors in Bojun’s prospectus.

“In particular, the company will be able to gain access to procurement avenues of Australia’s high-quality fruit produce and developed R&D capabilities.”

Bojun Agriculture Holdings reported a net profit of $10.1 million in the 2015-16 financial year, and is on track to eclipse that in FY2017, after lodging a net profit of $5.4 million in the first six months of the financial year.