SHANGHAI, CHINA —Nisun International Enterprise Development Group Co., Ltd., an integrated supply chain solutions provider, is expanding its presence in the grain commodities market with management agreements focused on the procurement and delivery of wheat and corn in China.
In a Feb. 17 announcement, Nisun said its controlled affiliate, Fintech (Henan) Supply Chain Management Co., Ltd., has entered into an agricultural trade management services agreement with Jiaozuo Xinfeng Yinong Agricultural Materials Co., Ltd. (JXY) and related purchase and sale framework agreements with Jiyuan Pengjinxiang Planting Professional Cooperative (JP).
JXY is engaged in the purchase and sale of grain planting, agricultural materials, seed breeding and other businesses while JP provides members with services related to the purchase of agricultural production materials, the planting, storage, and sale of agricultural products, and agricultural production and operation.
These agreements were executed as part of Shanghai, China-based Nisun's supply chain trading operations. Nisun will purchase wheat or corn from JP based on orders from JXY and arrange for delivery to the designated locations or customers. Nisun anticipates the transaction volume under these agreements to reach $2.9 million.
Nisun said these agreements represent a significant initiative of the company’s supply chain business strategy to increase its presence and explore growth opportunities in China's wheat and corn markets. According to the National Bureau of Statistics of China, China's 2022 wheat output rose 0.6% from a year earlier to 137.72 million tonnes and corn output was up 1.7% to 277.2 million tonnes.
“We are excited to step into the market of wheat and corn, as China is one of the biggest producers and consumers of wheat and corn in the world,” said Xiaoyun Huang, chairman and chief executive officer of Nisun. “The business cooperation this time provides us with opportunities to enter into such a huge and high-potential market while facilitating the development of our supply chain business.“Looking forward, we expect to continue to increase our presence in the commodity grain market while optimizing our supply chain,” he added. “We believe this initiative will add our supply chain exposure to a highly promising segment and create long-term value for our shareholders.”