China Shenshan Orchard lays out strategies to boost long-term development
China Shenshan Orchard Holdings Co. Ltd. has announced new strategies to enhance its long-term development, focusing on a low-cost operational model. The company plans to lease six of its nine orchards to third-party contractors for durations ranging from 1 to 6 years. For the remaining orchards, a 1.5-year fallow management policy will be implemented, with costs for maintenance borne by designated third parties. Additionally, the company will minimize its workforce to reduce labor expenses.
The new strategies aim for more flexibility.
China Shenshan Orchard Holdings Co. Ltd. has announced strategies it aims to implement to support its long-term development plans.
“After an evaluation conducted by the Group on the current options available, the Group has opted to implement the following strategies for a low-cost operational model, intending to provide flexibility in support of its long-term development plans,” China Shenshan Orchard said in a bourse filing.
Amongst its latest strategies is leasing six of its nine orchards to third-party contractors pursuant to the terms of the leasing contracts to be entered into between the Group and each respective contractor. The duration will vary depending on the specific orchard and contractor, ranging from 1 to 6 years.
For the three remaining orchards, China Shenshan Orchard will implement a fallow management policy 1.5-year fallow period. During this time, each orchard will be overseen by a designated third-party responsible person.
"All costs associated with the small-scale planting and daily maintenance of the respective Fallow Orchard, including, inter alia, weeding, utilities, repairs and labour, will be borne solely by the Responsible Person,” the company said.
China Shenshan Orchard will also retain only a minimal number of essential staff to significantly reduce labour-related expenses.
