FoodChina.com is a B2B agribusiness e-marketplace and professional service provider based in the Greater China region with a view to serving the agribusiness community worldwide. FoodChina now has operations in Beijing, Hong Kong and Taiwan, through which it runs websites in simplified Chinese, traditional Chinese, English and Japanese. FoodChina.com has been nominated as "Agribusiness E-Commerce Website with Excellence" by China's Ministry of Agriculture, and is the only agribusiness e-marketplace in the region that actually conducts real-time online transactions. Total revenue for the first half of 2002 has exceeded US$30 million, solidifying its lead in the industry.

FoodChina's Board Chairman, Mr. LIU Fuchun, is President of COFCO, and FoodChina's CEO, Mr. Mark HAN, is President of DaChan Greatwall Group.

FoodChina's short-term action plan includes mobilizing shareholder resources, gaining support from other agribusiness companies, obtain further government endorsement, developing a feasible e-commerce business model, establishing a foothold in the world market while serving the agribusiness community in the Greater China region.
 

1. Agricultural Trade

• Feed and grain trade is the corner stone of our business operation. At present we trade in feed, oilseeds, wheat and meat.
  
• Foreign trade leads domestic trade. Our strategy is to develop agribusiness e-commerce in the East Asian market first.
  
• FoodChina is an international joint venture, making it an excellent trading partner for companies worldwide. In addition, we enjoy advantages in trading across the Taiwan Strait.
  
• To become an agribusiness e-marketplace in the full sense of the term, we are taking steps to enhance the role of e-trading and e-service in the overall business model.

2. E-Procurement and E-Auctions

• E-Procurement has been proven to be a successful business model from overseas practices. FoodChina is the only e-commerce company in Asia to be actually conducting e-procurement transactions. Dozens of online sourcing and auctions have been successfully conducted.
  
• The key to the success of e-procurement is the selection of qualified companies and the establishment of supplier and purchaser communities around the major products traded. FoodChina has set up supplier communities for over 20 products in addition to a community for feed users worldwide. The communities in turn help companies develop new markets and new procurement channels.
  
• We welcome our shareholders and all enterprises and government agencies to conduct procurement and auctions on FoodChina's online platforms.

3. Agribusiness Communities

FoodChina is now establishing three kinds of communities:

• Professional Communities. The swine farming community has been set up in Taiwan with large swine farms as members (with annual production over 10,000) and organized into the Top 100 Club. Plans are underway to develop the poultry farming community and the vegetable growers community in the mainland this year. Other professional communities are also underway. FoodChina provides on-site technology support throughout the entire product growth cycle (seed selection, seed growing, planting and feeding technology, disease prevention etc.) coupled with online production cost calculation and database support. We hope to eventually obtain joint brand names for healthy products based on a record of online interactions.
  
  
• Supplier's Communities in support of e-procurement and e-auctions. We have set up supplier's communities around 20 major feed and feed additive products and the number is expected to increase to 30 to 40 by the end of this year. Every product community will include at least 20 qualified suppliers. Once this project is completed, both Chinese and foreign purchasers will be able to conduct effective and efficient e-procurement on FoodChina's transaction platforms.
  
  
• International Communities. Starting from the English and Japanese communities, FoodChina provides value-added information services (instead of general news reports) and various trade services to attract International Members to FoodChina's core business.