China Ouhua Winery Holdings Pte Ltd was incorporated in Singapore under the Singapore Companies Act on 12 January 2009 as a private limited company. On 30 October 2009, our Company was registered in Malaysia as a foreign company. We were subsequently converted into a public limited company on 24 November 2009 and assumed our present name, China Ouhua Winery Holdings Limited (“Ouhua”) (中国欧华庄园葡萄酒国际控股有限公司). Ouhua was incorporated and commenced business as an investment holding company to facilitate our listing on Bursa Securities Malaysia Berhad.
Presently, we have two (2) registered offices, one located in Singapore as required under Section 142 of the Singapore Companies Act and the other located in Malaysia as required under Section 333 (1) of the Malaysian Companies Act, 1965.
Yantai Fazenda Ouhua Winery Co., Ltd (“Ouhua PRC”) (烟台欧华庄园葡萄酿酒有限公司 Company No. 370600400012580) became our 95%-owned subsidiary pursuant to the Restructuring Exercise carried out prior to our Initial Public Offering.
Through Ouhua PRC, we are involved in the business activities as follows:-
We are one of the producers and distributors of quality grape wines in the PRC, with a portfolio that includes well-recognised proprietary wine labels distributed with approximately 3,100 point-of-sales across the PRC. Our business operations span across the entire value chain of the wine industry, from the cultivation of vineyards and production of wines to the strategic management of distribution networks for our wine labels, adding value at each stage of the value chain. Our Group sold approximately 7,700 tonnes of wines throughout the PRC in 2009.
We produce red and white wines which we distribute for sale under our flagship Fazenda Ohua Wine labels. We also distribute red and white wines produced from wine of French, Australian, Spanish, Chilean and German origins under our International Wine labels, which include "Prinator", "Stourier", "Mondeke Castle", "Mecod Valley", "Reinnadberg", "Bullock Vineyard", "Avillar", "Kass Valley", "Aiblleon Vineyard" and "Chateau Gaussnar". As at September 2010, we offer approximately 87 and 60 varieties of wine under our local Fazenda Ohua Wine labels and International Wine labels respectively. Our multiple label and product strategy serves to broaden our consumer base and revenue streams.
Our wines are primarily distributed for sale within the PRC through our appointed master distributors, who in turn distribute these wines to end consumers via an extensive retail network of Fazenda Ohua specialty stores, which are managed by experienced and knowledgeable service staff trained by our in-house winemaker. Other distribution channels include direct sales to retail intermediaries such as hypermarkets, retail outlets and third party specialty stores that sell alcohol as well as food & beverage establishments such as restaurants, hotels and entertainment outlets.
As at September 2010, our distribution network encompasses 13 appointed master distributors, 113 Fazenda Ohua specialty stores (including nine (9) Ohua Château type stores and 104 Ohua Manor type stores that are operated and owned by these appointed master distributors and sub-distributors) and our wines are, to the best of our Directors’ knowledge, retailed at approximately 3,100 point-of-sales spanning no less than 13 provinces and cities throughout the PRC.
Our wine estate comprising our winery and vineyards is situated in Yantai City, Shandong Province. Yantai is a coastal city located in the province of Shandong, where it enjoys a moderate winter and summer. It is at the same latitude as major vine cultivation regions in France and Italy and is reputed to be the best place in PRC to grow vines due to its plentiful rain and abundant sunshine, earning the city the moniker of "Oriental Bordeaux". The industrialised production of grape wine in Yantai has been established for more than 100 years and today, Yantai is known as the wine hub of the PRC.
As at September 2010, our winery has a production capacity of approximately 12,480 tonnes of wine per annum, and our own two (2) vineyards in the Yantai-Penglai locality span across cultivation areas of approximately 5,500 Mu (equivalent to approximately 3.67 million sq m) in aggregate.