Fresh orange is a common fruit that contains nutrients such as sugar, dietary fiber, vitamin B complex, vitamin C, calcium, phosphorus, potassium, citric acid, and pectin. Today, the COVID-19 epidemic is still here, eating fresh oranges in moderation every day can enhance resistance and help human health. According to CRI Report’s analysis, the world’s major orange producing countries include Brazil, the United States, and China.
In 2020, the global and Chinese economies have been hit by the COVID-19 epidemic, but some industries have been able to buck the trend. According to CRI Report’s consultation with China Customs, from January to July 2020, China’s export volume of fresh oranges reached 37,621 tons, a slight decrease over the same period in 2019. The main reason is that the epidemic has affected logistics operations; China’s exports of fresh oranges reached US$68.61 million in July, a year-on-year increase of 6.9%. The main reason for the increase in exports is the increase in average export prices.
Asian Citrus Holdings Ltd. (Code 00073.HK), listed in Hong Kong, is one of China’s major exporters of fresh oranges. On the one hand, Asian Citrus has its own orchards, and at the same time, it adopts a model of cooperation with farmers to purchase fresh oranges, bananas, dragon fruits and other fruits and resell them after initial processing. On the one hand, with the rising living standards of Chinese residents, the demand for high-quality fruits is rising. Therefore, China imports a large number of oranges every year, such as SUNKIST. On the other hand, because oranges are divided into many varieties, the ripening time varies greatly. In order to fill the gap in the market, other countries also import a large number of fresh oranges from China every year.
The main producing area of fresh oranges in China is Guangxi, because the climate, soil and other links are suitable for the growth of citrus fruits. In addition, fresh orange planting companies such as Asian Citrus have decades of planting experience, mature technology and cooperation models, and have a wealth of resistance to Huanglong China’s overall export of fresh oranges has maintained an upward trend due to the experience of unfavorable factors such as diseases and natural disasters. Due to the good quality of fresh oranges exported from China, the market positioning is relatively high. For Asian Citrus, the fresh orange business has a good market space. Asia Fruit’s orange business not only includes export, but also gradually expands its fruit distribution business in China. Asian Citrus’s own brand is Xin Yaqi ROYALSTAR.
Asian Citrus is an excellent enterprise whose main business is fruit planting and distribution. Asia Fruit has tens of thousands of acres of fresh orange planting base in Hepu, Guangxi. Guangxi is one of China’s important fruit producing areas. The fertile land, mild climate and superior natural conditions are conducive to growing oranges. At the same time, Guangxi is close to the west coast of China, relies on the inland, and is close to Southeast Asia, which is conducive to developing business in the ASEAN market with a population of 700 million. Asian Citrus was listed on the British AIM in 2005 and Hong Kong in 2009, and then suspended trading on the Hong Kong Stock Exchange in September 2016, and resumed trading smoothly on September 1, 2020. The financial advisor for the resumption of trading in Asian Citrus is Fuyu Capital, and the industry advisor is CRI Report.
According to the forecast of CRI Report, with the recovery and development of the global and Chinese economies, consumer demand for fruits will continue to rise, which will also promote the growth of Asian fruit industry. Hepu, Guangxi has a long history. In the sixth year of Yuanding in the Western Han Dynasty (111 BC), Hepu County was established by Emperor Wu of the Han Dynasty when he flattened Nanyue Kingdom. Hepu is rich in products, including fresh oranges, Hepu pearls and other specialties. It is also the ancestral home of Hong Kong’s well-known singer Ms. Anita Mui and rich in tourism resources. It is expected that in the future, the Asian fruit industry can vigorously expand the cultivation and distribution of fruits, and at the same time, rely on Hepu’s history and natural resources to vigorously develop cultural and tourism industries.