"The Belt and Road Initiative" improved Trade between China and Cambodia; North Asia Resources Holdings Limited (00061) takes advantage of the Opportunity

"The Belt and Road Initiative" improved Trade between China and Cambodia;
North Asia Resources Holdings Limited (00061) takes advantage of the
Opportunity

At 24 March 2017, the Big Data Report of Trade Cooperation under the Belt
and Road Initiative 2017 released. According to the figures, It was reported
that the total trade volume between China and the along countries in 2016
about 953.59 billion US dollars, around 25.7% of the total trade volume of
China. The export from China to the along countries increased steadily since
2011. In 2016, the export volume from China to along countries is about
587.48 billion US dollars and reached a high level in the recent years.
Among which, Kyrgyzstan, Hungary, Romania, Cambodia and other 19 countries
are in large trade scale between China. And the trade volume growth faster
than the others, in the China's large trade volume, and trade growth is
faster and in the context of global trade weakness, China is a "potential
growth" country.

Cambodia, the cassava is the main crop and export product country, is an
important node in Southeast Asia as an important step in China's "the Belt
and Road Initiative". It has just begun to embark on industrialization,
infrastructure and other aspects are constantly improving, which contains
great investment opportunities. Utilizing a large-scale cassava planting in
Cambodia, it can not only achieve the base of processing plants, but also
save 80% of the cost of transportation of raw materials, but also solve the
problem of fresh cassava storage.

Responding to the national strategies, North Asia Resources Holdings Limited
reverted the corporate vision to the environmental biotechnology business.

Surfing the trends of the Belt and Road Initiative and having an insight of
the potential development of the Cambodia's Economy, North Asia Resources
Holdings Limited (00061.HK) (the "Company") has acquired some land resources
in Cambodia and intended to build up a standardise and continuing
sustainable business model for cassava business. The Company has also
vigorously develop Biofuels Ethanol to strive for sustained competitiveness
in the global marketplace.

At 31 March 2017, the Company announced the intention, in the consideration
of not more than US$53,200,000, to acquire 21,000 mu of the Economic Land
Concession in Pursat Province of Cambodia. The Company shall satisfy the
consideration in (i) an aggregate of HK$28,000,000 as the Deposit will be
payable in cash by three tranches by the Company to the Obligors on dates
mutually agreed between the parties to the Acquisition Agreement prior to
Completion; and (ii) the remaining balance of the consideration will be
satisfied by the Company by way of allotment and issuance of a maximum of
11,512,878,787 Consideration Shares approximately 13.63% of the enlarged
issued share capital.

At 13 April 2017, the Company further announced the execution of strategic
cooperation framework agreement between the Company and Henan Tianguan
Enterprise Group Co., Ltd.. Pursuant to the Strategic Cooperation Framework
Agreement, the parties agreed that, among other things, the Company shall
cooperate with Henan Tianguan in planning to build a recycling industrial
module park in Cambodia using tapiocas as raw materials for the production
of 100,000 tons of ethanol biofuel and their by-products annually, such as
methane, carbon dioxide, bio-solid organic fertilizers and bio-power
generation.

The current principal businesses of the Company are to sales of information
technology products, system integration, software development, technology
service and comprehensive product solution and geological survey,
exploration and development of coal, sales of coking coal and coal trading.
As the coal mining segment business was blocked by the government's policies
in the past few years and since the Chinese Government intended to improve
the better environmental conditions, lots of the polluted businesses were
blocked under the policies. Hence, from 2015, the Company realized the
necessity to explore different type of business segments to enrich the
profit base and the continuing sustainable vision. Commenced in 2016, the
Company trial started the cassava trading project in Cambodia and exploring
the chance to acquire the land resources. The Group targeted to acquire and
develop 10 land models, around 200 thousands ha area. And in March 2017, the
attempted acquisition of the first phase of the 315 thousands mu around 21
thousands mu area is in progress. Cassava can be used to develop of
bio-ethanol-based clean fuels and edible, industrial starches, biomass
pellet fuels, bio-generating, carbon dioxide, solid organic fertilizers and
corresponding ancillary products. By optimizing the combination of research
and development to develop from the beginning of land cultivation to end
products, i.e. Bio-fuel Ethanol, as a set of recycling modular business
model for the next step in the strategic development and competition in the
global industry market has laid a good foundation.

Strategic cooperation between the Company and Henan Tianguan to build up the
new production chain of cassava products.

Throughout the cooperation between the Company and Henan Tianguan, it was
planned to by using cassava as the raw material to build up an annual output
of 100,000 tons of bio-fuel ethanol and its by-products of a recycling
industry module park in Cambodia. Since Henan Tianguan is a leading global
player in the domestic bioenergy industry with a history of 78 years and the
largest domestic manufacturer of ethanol fuel, with an annual output of
approximately 800,000 tons of ethanol, it needs to import a large number of
tapioca slices annually from Southeast Asia as raw materials for the
production of ethanol. With respect to industrial technology, it has built
up over years numerous globally cutting-edge patents and proprietary
technologies in the areas of ethanol fuel, biogas and power generation, as
well as leading operational and management advantages. In particular, its
integrated technology for the co-production of "ethanol, electricity, biogas
and fertilizer" has gained a leading position in the domestic industry and
achieved globally advanced standards. Given the Company and Henan Tianguan
have interests in common, the Board believes that the entering into of the
Strategic Cooperation Framework Agreement would enable the Company to
leverage on the expertise of Henan Tianguan, a domestic bioenergy producer,
for the production, management and trading of ethanol biofuel and
by-products of tapioca-based ethanol fuel as well as for other business
cooperation in the recycling industry. The cooperation will substantially
help the Group further expand its modular management and production of
ethanol biofuel-related business, and will play a positive role in
broadening the income stream and industrial transformation for the Group in
the long run.

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Link to Original Article:
http://en.acnnewswire.com/press-release/english/36607/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com