JAKARTA (TheInsiderStories) – The company owned by Indonesian tycoon, Wilmar International Ltd., announced to bring Yihai Kerry Arawana Holdings Co., Ltd., (YKA), a 99.99 percent-owned subsidiary listing on the Shenzhen Stock Exchange. The unit has appointed China Securities Co., Ltd., and China International Capital Co., Ltd., as the sponsor and a joint lead underwriter of the initial public offering.
“Our Chinese subsidiary, Yihai Kerry Arawana, has obtained listing clearance from the Shenzhen Stock Exchange committee and has submitted the updated prospectus to the China Securities Regulatory Commission for final registration approval for listing,” said Kuok Khoon Hong, chairman and CEO of Wilmar on Sept. 15.
The unit plans to release 10 percent of paid up and issues shares and has set the IPO price at RMB25.70 (US$3.77) per share to raises RMB13.9 billion. 20 strategic investors involved in the IPO, including Singapore sovereign wealth fund GIC, China Life Insurance Co., Ltd., China Structural Reform Fund and Rongze Investment Co.. The proposed listing will take place in mid-October 2020.
In the first semester (1H) of 2020, the agribusiness group, reported a 50 percent improvement in net profit to $610.9 million on the back of improved contributions across all core segments. Excluding losses from non-operating items, core net profit in the same period also improved 49 percent to $635.9 million
The net revenues increased 12 percent to $22.66 billion from a year ago $20.23 billion, driven by improved demand across all core segments. As a result of the pandemic, consumer products sales increased significantly because people ate more often at home and also bought higher quality products.
Consumer products registered a 21 percent increase in pre-tax profit to $495.1 million in 1H of 2020 from $408.3 million in 2019. This improvement was partially offset by lower sales in the medium pack and bulk businesses, as demand from the hotels/restaurants/catering industry was weak in the first quarter of 2020 due to lockdowns in the major markets where the Group operates.
The consumer products sales also improved by 29 percent to 4.7 million metric tonnes (MT) from last year 3.7 million MT while medium pack and bulk sales decreased by 7 percent to 7.5 million MT fro 2019 at 8.1 million MT. Feed and industrial products achieved a 105 percent increase in pre-tax profit to $370.8 million in 1H of 2020 from $181.0 million in 1H of 2019, on the back of a strong recovery in oilseeds and frains, as demand in China recovered from the African swine fever outbreak that occurred in the previous year.
This resulted in strong crush margins and volume during the period. In addition, higher sugar merchandising activities in 1H of 2020 further improved the performance of the segment. Overall volume for these segment increased by 10 percent to 26.3 million MT in 1H of 2020 from 1H of 2019 about 24.1 million MT.
Total mature hectarage increased in the current period, production yield decreased marginally by 1 percent to 9.8 MT per hectare from 1H of 2019 of 9.9 MT per hectare as a result of a younger palm oil plantation age profile due to the Wilmar Group’ replanting activities in recent years. Total fresh fruit bunches production for 1H of 2020 increased by 0.5 percent to 1.91 million MT from 1.90 million MT in the same period of last year.
Hong stated, “The Group has produced a resilient set of results for 1H of 2020 amidst the pandemic. Both our food products and feed and industrial products segments did well in 1H 2020, on the back of strong recovery in 2Q 2020, and are expected to continue to perform well for the rest of the year.”
In Indonesia, Wilmar Group company conducts bird of prey conservation in Kalimantan.
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