Direct Sales Outlet of Prosperous Agriculture in Shaanxi Ranks Top in Sales

SHENZHEN, China, June 16, 2011 /PRNewswire-Asia/ -- Uni Core Holdings Corporation (OTC Bulletin Board: UCHC), an aggressive 'company doctor' and 'incubator' of mid- to large-size companies in China, gives detailed description of its incubation project, 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).

Mr. Wang Fei, General Manager of Prosperous Agriculture, said: "There are issues with traditional sales channels, such as small scale of operation, low level of organization, low economic efficiency, excessive details for product circulation and high distribution costs, which make it difficult for these channels to operate in an effective scale. Prosperous Agriculture directly opens direct sales outlets to sell its own brand of 'Xiduofeng' series and to act as agent of 'Luxi', 'Ezhong', and 'Jinyuanfeng' compound fertilizers; this shortens the link between the distribution channels and reduces costs. The pricing and after-sale service are more competitive than the traditional stores."

Mr. Wang Fei further said: "The establishment of the direct sales outlet is the strategy materialization of Prosperous Agriculture's compound mode which combines production and sales. Prosperous Agriculture will gradually integrate and transform the 2,000 sales terminals into the direct sales outlet model and will extend this model from Shaanxi to Henan, Shandong, Hebei, Shanxi, Gansu, Ningxia and Xinjiang; with the gradual expansion of direct sales outlets, Prosperous Agriculture will form the largest direct distribution chain marketing system and the future annual sales is expected to reach RMB4 billion (about US$620 million). "

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SOURCE Uni Core Holdings Corporation