Green Grass Ecological Technology Development Co. (QQCY) intends to raise $23 million in an IPO of its ordinary shares, according to an F-1 registration statement.
The firm performs specialty farming of alfalfa and related agriculture harvesting for biomass and other purposes.
QQCY has intriguing market dynamics in its favor. When we learn more details about the IPO, I’ll provide an update.
Huhe Haote City, Inner Mongolia-based Green Grass was founded to grow alfalfa for livestock feed and sell biomass waste products (corn and wheat straw) to power generation plants and paper mills.
Management is headed by Chairman and CEO Mr. Jian Sun, who has been with the firm since May 2019 and was previously president of Inner Mongolia Green Grass Yuan Ecological Technology Development.
Below is a brief overview video of Mongolia’s alfalfa farming operations (in Spanish):
Source: China Xinhua Espanol
The firm has signed cooperative agreements with the Guoneng Biomass Power Generation Group and three other biomass power plants in Guoneng.
Management seeks to expand its specialty alfalfa farming business and other products for biomass purposes, as it sees a shortfall in supply compared to the demand for its products in China.
Green Grass has received at least $13 million from investors including JIAN Grasslands Holdings (Chairman and CEO controlled), Liling Grasslands Holdings, Lihua Grasslands Holdings, Xianho Grasslands Holdings, Jinyi Grasslands Holdings and XIAO Grasslands Holdings.
The firm sells its products to livestock operators and to large power plants using a direct sales approach.
Green Grass’ service team ‘provides inter-state services for an operating radius of more than 2,000 kilometers in Mongolia and in surrounding provinces.’
Selling, G&A expenses as a percentage of total revenue have dropped as revenues have fluctuated.
The Selling, G&A efficiency rate, defined as how many dollars of additional new revenue