Another year of record revenue for Dongfang Modern Agriculture

CHINESE agricultural producer Dongfang Modern Agriculture Holding Group Limited has had a year of record revenue.

ON THE RISE: Dongfang Modern Agriculture Holding Group’s revenue was up 10.4 per cent.

CHINESE agricultural producer Dongfang Modern Agriculture Holding Group Limited has had a year of record revenue.

Revenue was up 10.4 per cent from the previous year, at $244.9 million.

The growth was driven by strong demand for the company’s camellia, navel oranges, tangerines and pomelo.

Net profit after tax was recorded as $89.7 million down eight per cent from the previous year.

Dongfang Modern Agriculture Holding Group Limited executive chairman Hongwei Cai said the company achieved a seventh consecutive record harvest due to the acquisition of a 526-hectare camellia plantation and a 354- hectare navel orange plantation in 2018.

During the year, the company also entered into the health supplements market after acquiring a 70 per cent interest in Bio Health Pharmaceuticals.

“Our Net profit tax decline reflected lower productivity of recently acquired orchards and costs associated with the company’s acquisition strategy, including the acquisition of Bio Health Pharmaceuticals,” Mr Cai said.

“Excluding the impact of recent orchard acquisitions, our crop was in line with last year’s for all harvests. “

The board not announced a dividend for the 2018 year.

“We remain focused on growth and have decided not to declare a

dividend for the 2018 year,” Mr Cai said.

“Reinvesting the dividend in our business will enable us to take advantage of the significant opportunities in both Chinese orchards and the health supplements market.”