Peanut oil is identified by the PRC government as a key product to increase the domestic supply of edible vegetable oil. (Source: IMRR) In relation to this and in recognition of Henan XingHe’s capabilities to produce high quality peanut oil, the Henan Finance Bureau has in 2009 invested RMB15.0 million via a subscription of preference equity in Henan XingHe. The preference equity entitled Henan Agric to 8.85% equity stake in Henan XingHe and has certain preferential rights, details of which are set out in Section 10 herein.
At the helm of Henan XingHe is Ms. Li Hui Jun and Mr. Ma GuoLiang, being the Chairman and Managing Director of the company, respectively. Ms. Li Hui Jun is the spouse of Mr. Ma GuoLiang. Collectively they have 35 years experience in the edible vegetable oil industry. Capitalising on their extensive industry experience and management capabilities, they have played a pivotal role in steering Henan XingHe to become a well-recognised name in the PRC’s edible vegetable oil industry.
On 29 April 2014, XingHe Holdings Berhad (formerly known as Key West Global Telecommunications Berhad) completed its reverse acquisition of Supreme Global Group Limited. Supreme Global, through its operating subsidiary, Henan XingHe, is principally involved in the production, blending and marketing of edible vegetable oil and peanut protein cake in the PRC domestic market. Peanut protein cake is a by-product of peanut oil production.
In 2012, Henan XingHe’s market share, in terms of estimated production volume of peanut oil in the PRC, was in the range of 2.4% to 3.6%. Within Henan Province, the company’s market share was estimated to be 12.1% to 18.2%. (Source: IMRR)
Realising the importance of branding, Henan XingHe had in 2010 began marketing its peanut oil under the proprietary brand name of “XingHe” (星河). Following thereon and to complement the sale of its peanut oil, the company further diversified into the blending and marketing of blended oil (a combination of peanut oil and soybean oil) under its own brand name in 2011 and marketing of repackaged soybean oil and corn oil under its own brand name in 2012. The strength of Henan XingHe’s own-branded products is reflected in the numerous awards that have been conferred upon the company. These include, amongst others, “Henan Famous Brand” and “Henan Top Brand” in 2010 and “Henan Famous Halal Food Brand” in 2011.
The group’s history can be traced back to 2002 when Henan XingHe was established to engage in the trading of edible vegetable oil. Following the completion of its present production facility in Neihuang County, Henan Province, China in 2004, the company began producing peanut oil for supply to other edible oil companies. With a production facility spanning approximately 111,500 sqm, Henan XingHe has the capacity to process approximately 240,000 metric tonnes (“mt”) of peanut annually, transforming peanuts into peanut oil as well as peanut protein cake.
Since its inception in 2002, Henan XingHe has established itself as a successful producer and marketer of high quality edible vegetable oil. As a testament to its reputation, the company has been accredited with, amongst others, the “Leading Enterprise” status in 2007 and “Henan Famous Halal Food Enterprise” and “National Green Food Model Enterprise” in 2011. Further, the company has also been bestowed with several quality and management standard certifications in 2010 and 2011 including the internationally-recognised ISO9001:2008 quality management system, GB/T22000-2006 food safety management system, which demonstrates compliance with the principles of Hazard Analysis and Critical Control Points (“HACCP”), as well as the Halal food production certification by Neihuang Bureau of Religious Affairs.
Established in 1992, Henan Agric is a wholly-owned subsidiary of Henan Finance Bureau. It is a wholly state-owned strategic investment institution (省属国有独资政策性投资机构), the operation of which is authorised by the Henan Province People’s Government. It has investments in various leading agricultural and food-related industries based in Henan Province and has been a driving force behind the development of Henan Province’s agricultural sector over the years. (Source: Official website of Henan Agric - www.hnnt.cn).