Mr. Thomas Lee, Chief Operating Officer of Uni Core Holdings Corporation (OTCBB: UCHC), called into SmallCapVoice.com to go over the business incubator business model for the Company. The Company is known as an aggressive ‘company doctor’ and ‘incubator’ of mid- to large-size companies in China. One of the business lines is the APT Paper Group (“APT”), a wholly-owned company of UCHC. As the pioneer entering into the honeycomb paper industry in China, APT heavily invested and promoted honeycomb paper products; the researched and developed honeycomb paper products, technologies and equipment had already been in the leading position with patents registered in many countries, out of which the technical parameters of honeycomb paper pallets were even adopted as Chinese national standard of the China Ministry of Railways. While developing the market for honeycomb paper products, APT also actively exports honeycomb paper technology and equipment to other parts of China and the world. The machinery and equipment for honeycomb paper developed by APT already cover all production processes, including honeycomb core production line, honeycomb paper panel production line, automatic production line of paper pallet, corner protector production line, punching machine and whirling machines.
The other business line is Shaanxi Prosperous Agriculture Limited Company (“Prosperous Agriculture”) that opened its agricultural resources direct sales outlet in Lao Town, Hu County, Shaanxi Province one month ago. The direct distribution chain operation and low distribution cost make the product pricing more competitive which enables a rapid expansion of local market share and the top sales ranking amongst similar agricultural resources shops in the same area. It is expected that the sales of this outlet will reach RMB2 million (about US$310,000) this year with a gross profit of up to 20% (China Government supports agriculture industry and exempts the value-added tax on the sale of agricultural products).
Prosperous Agriculture will give priority to set up 100 agricultural resources direct sales outlets in Shaanxi and the surrounding areas this year. It is expected that these 100 direct sales outlets shall achieve an annual sales of RMB200 million (about US$31 million) and the tax-exempt gross profit of RMB40 million (about US$6.2 million).