Agricultural investment has become a hot issue in China. However, investment in agricultural industry, especially financial investment, faces a number of financial risks in assets confirmation, pricing strategy establishment, profitability valuation, etc.
On Oct. 11, 2012, Northeast Pharmaceutical Group Co., Ltd. (North Pharmaceutical) published its performance alert in Q3 2012, which showed the company would turn loss into gain in Q3 2012. As indicated, North Pharmaceutical received a compensation of USD49.6 million from Shenyang Tiexi Industry Transformation Headquarters which was counted into the company's non-operating revenue in Q3 2012. Hence, North Pharmaceutical estimated that its net profit in Q3 2012 would be USD29.9 million-USD37.8 million and the company would obtain profit in the first nine months of 2012 even though it suffered a USD19.1 million loss in H1 2012.
Jiangsu Yoke Technology Co., Ltd. (Yoke Technology) succeeded in expanding sales to Europe in H1 2012, owing to the previous investment in one of its wholly-owned subsidiaries - Shekoy Chemicals Europe B.V.
In Aug. 25th, 2011, Yoke Technology announced to increase capital in Shekoy Chemicals Europe B.V. with the investment of USD6.2 million, targeting at expanding European market. Obviously, the investment brought great expected result to Yoke Technology.
According to the semi-annual report disclosed by Yoke Technology on Sept. 25th, 2012, the revenue from European market made up 20.16% of the total revenue in H1 2012, increasing by 88.29% compared to the same period of last year.