About Us

We are an Australian-registered Company that operates in China and parts of Asia.

Our business is the China-based manufacture, packaging and distribution of Australian-developed RLF Specialty Liquid Fertiliser products for the Asia marketplace.

The Company operates predominately in China, but has the rights to operate in 19 other countries in the greater Asia region, with small scale sales already occurring in some of these countries.

The size of the market in which the Company can distribute its products represents approximately 28.6% of global crop production (based on 2017 data), and current statistical trends indicate upward pressure and demand for agricultural products as the emerging middle class across the Asia-Pacific region increases.

Welcome to our Website, where we have documented our operations and business structure, together with our history and plans for future growth.

Company Overview

What Does RLF Asia Do?

The Company distributes a range of specialty is a liquid fertiliser manufacturing, distribution and sales business with the majority of its operations being conducted in China but has the rights to operate in 19 other countries in the greater Asia region (see figure 3.2). The Company currently has small scale sales occurring in Thailand, Cambodia and Vietnam through distributors in these countries and has previously sold specialty fertiliser products in Sri Lanka and Myanmar.

The liquid fertiliser products which are manufactured and sold by the Company (RLF Products) in Asia have been tried and tested in the Australian market for over 25 years by RLF Australia, an Australian fertiliser company that developed and continues to improve the RLF Products. RLF Australia has a manufacturing, distribution and sales network of the RLF Products in Australia. The Company has in place an Operating Agreement and Distribution Agreement with RLF Australia, under which the Company benefits from RLF Australia’s knowhow and expertise in manufacturing the RLF Products and has been granted rights to distribute the RLF Products in Asia.

What is the Company’s History?

In 2004, Ken Hancock identified an opportunity to create a manufacturing, distribution and sales business of the RLF Products into Asian markets (China being the initial focus) leveraging off the RLF Products that were tried and tested in the Australian market. Between 2004 and 2007 significant time was spent in China researching the opportunity, including conducting product trials and evaluations.

In 2007 the Chinese operating entity, RLF Kaifeng was incorporated, with the Hong Kong company, RLF Hong Kong the ultimate parent company, and in 2009 operations commenced in China. As the business grew, another Chinese entity, RLF Shanghai was incorporated as a wholly owned subsidiary of RLF Hong Kong in 2014. Following various restructures, the Company today owns and controls the RLF Asia business by its 100% ownership of the Chinese operating entities, effective from June 2018.

What is the Company’s Business?

The Company manufactures, packages and distributes a range of specialty liquid fertiliser products (RLF Products) under the Distribution Agreement and Operating Agreement with RLF Australia. RLF Australia is a fertiliser company that operates in Australia and has developed the RLF Products and has established a manufacturing, distribution and sales network for the RLF Products in Australia. The Company’s business currently operates predominantly in China, but the Company also has the rights to operate in 19 other countries in the greater Asia region.

There are approximately 80 product formulations that the Company has access to under its licensing arrangements. At present, the Company has 16 RLF Products registered and being sold in China, comprising the below.

BSN Superstrike Seed Priming FertiliserDynamo Fertigation RangeZinc Plus Foliar FertiliserSilica Plus Foliar Fertiliser
BSN Ultra Seed Priming FertiliserPlant Milk Fertigation RangeCaltro High Calcium Foliar FertiliserPotassium Plus Foliar Fertiliser
Fruits+Veggies Plus Ultra Foliar FertiliserPowerPK Foliar and Injection FertiliserCaltro FertigationBoron Plus Foliar Fertiliser
Broadacre Plus Ultra Foliar FertiliserRapid Zinc Foliar FertiliserCalcium Plus Foliar FertiliserPlasma Power Foliar Fertiliser

The Company’s main business is situated in the City of Kaifeng located in Henan, a Province in central China. From there, the Company services 25 Provinces of China and exports to other Asian countries. The Company operates from a large 12,000 square metre (approx.) leased facility that houses formulation, packaging, storage and distribution services. The Company currently employs more than 100 people in its integrated manufacturing and sales business.

Who are the Company’s Clients?

The Company’s clients vary from retail, to multi-regional distributors, to large multinational companies. The Company also distributes through seed manufacturing and distribution businesses as well as other fertiliser and pesticide companies. The Company’s distribution model of operating the business directly with its clients reduces reliance on the efforts of third-parties or intermediaries. This method provides the Company with direct management over its valued distribution channel relationships

The Company’s main business is situated in the City of Kaifeng located in Henan, a Province in central China, and from there it currently services 25 of China’s 33 Provinces and exports to other Asian countries. The Company operates an integrated formulation and sales business which currently employs more than 100 people. The Company operates from a 12,000 square metre leased facility that houses formulation, packaging, storage and distribution services

Its Channels to Market can be summarised into six categories.

1. Direct to Market
2. Non-China Territories
3. Seed Companies
4. Manufacturer of Suppliers
5. Crop Protection Distribution
6. Corporate Distribution

Who are the Company’s Competitors?

The Company operates in a competitive market with many operators.

Competition in this market, is not limited to, but typically comes from fertiliser manufacturing or distribution companies, agricultural chemical or other agricultural product manufacturers and/or distributors and multi-national, national, regional or local companies operating in the
agricultural marketplace.

What is the Company’s Key Business Objective?

Its key business objective is to implement its operational strategy, which has its primary focus on the China business. Whilst no assurance is given, the desired outcome of the operational strategy is to increase sales of the Company’s products, so that the Company might achieve its objectives and targets.

Where does the Company Operate?

The Company has the rights to operate in China, as well as 19 other countries in the Asia region.

In recent years it has been working on establishing the distribution of RLF products into the greater-Asia region. Typically, this has been through the establishment of local Distribution Partnerships with agricultural distributors and retailers.

It takes time however, to establish distribution into new markets because the sales cycle typically involves product trials and evaluation programs, and sometimes lengthy government product registration procedures. This is often before products are sold to the market. Once in the market, a progressive sales ramp-up that may take many years is the typical pattern.

The Distribution Rights Agreement allows the Company to conduct its business in the countries identified on the world map.

The Operating Agreement provides for items such as, but not limited to:

  • Toll manufacture of the fertiliser products
  • Supply of activators used in manufacture
  • Rights to use IP and brands
  • Reciprocal purchase and supply of products
  • Research and Development, technical support and other services.

The terms and conditions of these agreements are fully detailed in the Prospectus.

The Company has already embarked on these relationships in several Asian countries.

How has the Company Performed?

RLF in China operates with a predominantly Australian executive supported by Chinese
management and personnel.

The business has been materially operating since 2009. At this time, the Company was the first Australian Specialty Fertiliser company to have invested directly into the set-up of its own manufacture, packaging and distribution facilities. It also established its own local sales and technical support teams.

Today, the systems used in the development of the business have been based on the successful operations and execution of product sales and delivery. During this period, the Company has demonstrated its ability to scale the manufacture and supply of increased product demand.

The reputation of RLF in China is now based on many years of selling product into this
marketplace, to a wide range of returning customers.

Financially, the Company has steadily increased its operating performance year by year, and detailed Financial Information is contained within the Prospectus.

What are its Strategies Going Forward?

The Company’s operational strategy is relatively straightforward, as it is about expanding existing functions of the business through the increased investment in people and physical resources.

The expectation is that increased resourcing may result in an accelerated expansion of the existing business. The Company believes that by expanding the existing business it will be able to reach more of the market, and therefore have more potential for sales.

Its operational strategy is based on six actions:

  1. Employ more people in sales and customer support roles to expand the points of contact in the distribution channels which might result in more opportunity to increase sales through these channels.
  2. Release more Specialty Liquid Fertiliser products into the market (through R&D and product registrations) to develop more sales opportunities from the introduction of the new product lines.
  3. Establish a team of people focused on customer support and sales of the Company’s seed treatment products into the seed company or seed distributor markets.
  4. Establish and support sales through new and existing Distributor Partnerships in the other Asia markets outside of China.
  5. Capital investment in the manufacturing, packaging and distribution segments of the business to manage future supply requirements.
  6. Increase funding to marketing programs, such as field demonstrations and evaluating trials, farmer meetings, distributor meetings, electronic and print media, attendance at tradeshows and training resources.

Key Advantages of Specialty Fertilisers

The fertiliser market in which the Company operates is an emerging part of Asian farmers’ fertiliser practice. Demand for specialty fertilisers across Asia is growing as speciality fertilisers are proving to be an effective and viable alternative to conventional fertilisers and traditional practices which also align with many of the new policy directives introduced by Asian governments to address sustainable agricultural outcomes.

Agronomic Advantages

The Company is seeking to introduce farmers to the potential of specialty fertilisers because of their many agronomic advantages. These advantages can be categorised as improved application efficiencies and improved crop outcomes, as outlined below.

  • Ease of application, together with the potential to mix with a wide range of crop protection products can deliver savings in time and labour, as well as with the reduced cost and number of applications required. This reduction in the cost of crop inputs increases the potential for greater agricultural productivity for the farmer or grower
  • More efficient nutrient uptake in plants – because of the science and technology applied in the development of products – brings potential for reduced nutrient losses to the environment as they are typically applied with a foliar spray. Another important agronomic benefit is the value-add potential of increased natural soil quality which could be achieved when a physically larger root system is developed creating more microbial activity in the soil which remains after the crop has been harvested.

Specialty fertilisers are low impact with resource and labour-saving attributes that commonly deliver quality crops and produce that attract better financial returns at market.

Commercial Advantages

Specialty fertilisers are a specialty product rather than a commodity product which differentiates them from other products within the fertiliser market. As a result, there are less direct competitor formulators and a lower number of specialty fertiliser products in the fertiliser marketplace, creating potential for better margins for the Company.

The RLF Products have up to a 25-year history of development and farmer use and provide a comprehensive range of nutrition products for most crop types, soil or plant therapies and for specialised agronomic growing situations which makes them attractive from a
commercial perspective.

How will it Build its Brand and Sales?

At an operational level, the Company has confidence in its strategy for future growth and sales. The RLF brand is becoming increasingly more recognised throughout China, and has received several industry awards for excellence during 2018.

“We are Doing the Things We Know and Have Done Before”

Given that the operational strategy is predominantly about increasing resourcing to expand the size of the Company’s current operational practices, the management and execution of this strategy will be done by the people currently employed in these roles, having been responsible for the development of the business to this point.

“The Numbers are Based on Historical Metrics”

The Company’s target growth objectives are based on the current business and its historical
metrics. This provides reasonable grounds for having more confidence in their achievement.

“The Marketplace is Just So Large”

Given that the marketplace is so large – and the Company has only achieved a fraction of sales to this market – the sales potential is not considered an impediment to future growth as it is clear a market exists for the Company’s products.

Corporate Strategy

Corporate strategy for the Company broadly consists of the following types of unidentified possibilities. They include:

  1. Acquisition. The Company could identify and investigate acquisition opportunities.
  2. Joint-Venture. The Company could identify and investigate joint venture opportunities, typically product related or other business related.
  3. Complementary Product Distribution. The Company could identify and investigate the manufacture and/or distribution of third-party products which are complementary to the Company’s current capabilities.
  4. Diversification. The Company could diversify its operations into areas that are new or complementary to the existing business.

Economies of Scale

The Company will make its best efforts to gain benefit from any increase in economies of scale to the business.