On November 2015, as for the transfer of shares of COFCO Packaging Holdings Co., Ltd. (“COFCO Packaging”), the Share Sale and Purchase Agreement has been signed between the company and COFCO Corporation (Hong Kong) Co., Ltd, and the company has accepted the transferred 27% of the issued shares of COFCO Packaging. In July 2016, COFCO Packaging issued new shares to other specific subscribers..In 2020, COFCO Packaging will repurchase some of its shares and cancel the registration, and the company's shareholding will be adjusted to 24.40% accordingly.
On March 7, 2016, to establish a strategic partnership, the company signed a Strategic Cooperation Agreement with COFCO Packaging. With the insisting of the principles of mutual benefit and win-win results, and jointly promoting the healthy development of the packaging industry, the two parties will conduct the deep cooperation in various dimensions including technology, marketing, production capacity distribution and supply chain.
COFCO Packaging is a company with investment holding. The subsidiaries manufacture the packaging products for consumer products such as food, beverages and daily chemical products in China. There are 7 major kinds of packaging products including beverage cans, food cans, aerosol cans, metal covers, printing iron, steel drums and plastics. It has a complete industrial layout in mainland China, and has a leading position in multiple market segments.
Through the strategic collaboration with the COFCO Packaging, and the powerful combination, it will achieve the complementary advantages and win-win development, and deep communication and cooperation between the two parties in the multi-business field will also be developed. This strategic cooperation will not only have the advantage to optimize the company's products and customer structure, but also extend the company's business area. Meanwhile, it will properly make use of the resources to strengthen market competitiveness and profitability. It will also benefit to the overseas markets expansion and overseas operations and production bases cultivation. Pushing forward steadily of the extension development.
From 2015 to 2017, the company has conducted the strategic investment in Huangshan NOVEL Co., Ltd. By the end of December 31, 2019, the direct shareholding ratio to NOVEL was 22.5%. According with its action person, the shareholding ratio of NOVEL shares was 24.32%, and the company has become the second largest shareholder of NOVEL.
With the stock code 002014, NOVEL is a company listed on the SME board of the Shenzhen Stock Exchange. It mainly engages on the production and sales of plastic color printing composite flexible packaging materials, which are mainly applied in food packaging, daily packaging, pharmaceutical / pesticide packaging and other product packaging. With advantages of good technical, market and management, it is a leading enterprise in the area of plastic flexible packaging. Its products have a strong strength of comprehensive competition.
This investment in NOVEL shares is expected to form synergy and complementarity with the company's main business, further enhancing the customer stickiness of the existing customers of the two companies, and creates new market opportunities and profit growth points to enhance the core competitiveness of both markets.
From April 2016 to May 2017, the company has conducted the strategic investment in Jiangsu Richland Group Co.,Ltd. By the end of December 31, 2019, the company held a total of 16.6 million shares of Richland Group. The shareholding ratio is 17.85%, it is its second largest shareholder.
With the stock code: 832139, Richland Group is a company listed on the National SME Share Transfer System. It is a large international modern agricultural enterprise professionally engaged in blueberry planting, variety research and development, seedling breeding, technical management, fruit production, fruit sales of fresh fruit and deep processing. It is the most important provider of high quality blueberry fresh fruit, blueberry seedling and blueberry deep processing products in the Chinese market.
Through cooperation with Richland Group, the company has started the investment in the consumer industry in downstream. It has created more opportunities for the business including existing packaging design and manufacturing, filling services, brand management, information-assisted marketing, etc. The benign pattern of making efforts to the coordinated development of business and FMCG business accords with the development orientation of the company's integrated packaging solution provider.