Nisun International Enterprise Development Group Co., Ltd, a provider of innovative comprehensive solutions through an integration of technology, industry, and finance, has announced that Fintech (Henan) Supply Chain Management Co., Ltd, a controlled affiliate of the Company, has entered into a supply chain services agreement with Hubei Qianguopai Agricultural Ecology Co., Ltd., a company engaged in the planting and distribution of fresh fruits.
The agreement represents another significant initiative of the Company's supply chain business strategy to increase its presence in the fresh fruits market.
The demand for fresh fruits is growing in China. According to Statista, the revenue of the fresh fruits market in China is projected to reach US$83.96 million in 2022 and grow at a compound annual growth rate (CAGR) of 8.02% between 2022 and 2027. The volume of the fresh fruits market in China is expected to reach 45,573.8mkg by 2027 and is expected to reach a growth rate of 6.5% in 2023. The average volume per person of the fresh fruits market in China is expected to reach 23.3kg in 2022.
The Agreement was executed as part of Nisun's supply chain trading operation. Leveraging the advantage of the extensive network, Nisun would purchase fresh fruits from its selected vendors based on the order of HQAE and arrange for delivery of the products to the designated locations or customers. The Company anticipates the transaction volume under the Agreement to reach RMB$10 million (approximately US$1.4 million) through 2023.
Xiaoyun Huang, Chairman and Chief Executive Officer of Nisun, commented. "We are excited to cooperate with HQAE to increase our presence in the fresh fruits market. The rising in fresh fruit prices in China is driven by a confluence of factors including rising input costs and strict COVID-19 control measures, which provide more substantial profit space for us."
"Our extensive network of agricultural product suppliers will optimize the cost of products and HQAE's diversified sales channels with major e-commerce platforms like Meituan Select and Duo Duo Grocery will maximize the transaction volume. We are looking forward to working together with HQAE, combing our resources and offering greater value to customers. We believe this move will further broaden the scale of our business and create long-term value for our shareholders."
For more information:
Nisun International Enterprise
Development Group Co., Ltd
Tel: +86 (21) 2357-0055