We intend to expand our arable land bank through the acquisition of companies engaging in similar businesses and/or the acquisition of arable plots of land. While we have not identified any specific plots of land or companies for acquisition, we intend to focus our acquisition of land on plots of land which are near our current operations and/or nearer the ports in the Rostov region. Our sources for our land bank acquisitions may be through the sale of distressed assets by banks, land brokers and/or our personal connections.
We intend to acquire new machinery to upgrade our existing equipment and machinery and/or expand our equipment and machinery in line with our expansion of our land bank. Such equipment and machinery may include seeders, tractors and harvesters. We believe that the acquisition of such new equipment and machinery will improve our efficiency, productivity and yield for our crop business.
Over the years, our Group has grown organically by increasing the number of our management staff. Our Directors recognise that there may be opportunities that may arise through mergers and acquisitions, joint ventures and strategic alliances with domestic and foreign companies. This would enable us to expand our Group’s network and provide us with opportunities to learn from our business partners who have the relevant expertise and relationships. By leveraging on our expertise and experience in Russia, we intend to seek new and suitable opportunities to expand into the high growth regional markets. To-date, we have not identified any specific investment targets.