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Intermost Corporation Reports Favorably on China Stock Market; Highlights Jifeng Agricultural Machinery

SHENZHEN, China, Dec. 1 /PRNewswire-Asia/ -- Intermost Corporation (OTC Bulletin Board: IMOT, which filed an application to change its name to Uni Core Holdings Corporation, and referred to as "UCHC"), an experienced 'company doctor' and aggressive 'incubator' of mid- to large-size companies in China, is pleased to provide analysis of China's agricultural industry. Intermost Corporation is a major industry player, and particularly recognizes great potential in Sichuan Jifeng Agricultural Machinery Chain Co., Ltd.

Due to investor enthusiasm about the enormous potential of the Chinese agricultural resources market, the China Stock Market recently showed strong interest in these agricultural resources distribution chain companies. On October 30, the first batch of 28 companies listed on the China GEM of the Shenzhen Stock Exchange (http://www.szse.cn/main/chinext/ ) went public. In just a few days, the share prices of a majority of these GEM listed companies dropped by more than 30% as compared to the highest price since listing, with the exception of the farm machinery chain enterprise -- Sichuan Jifeng Agricultural Machinery Chain Co., Ltd. ("Jifeng Agricultural Machinery", stock code SZ300022) -- which rose straight up and hit a new high since listing. With its 2008 net profit of only about RMB27.62 million, its market value is now more than RMB5.5 billion with a Price-Earnings ratio of higher than 200 times.

What exactly is supporting such a high valuation of Jifeng Agricultural Machinery? It's the enormous potential of China's farm machinery chain market and the rapid growth of Jifeng Agricultural Machinery. The 2008 National farm machinery sales exceeded RMB180 billion, of which RMB160 billion sales was done through agents, while only about RMB1.2 billion of these sales were managed through chain operation, which is less than 1%. Jifeng Agricultural Machinery is the largest farm machinery chain enterprise in the nation, its market share in 2008 was 0.4%; the company now has 70 directly operated stores and a chain sales network with 550 agents at county and township-level. With the business model of chain operation, Jifeng Agricultural Machinery grew rapidly in the last three years (2006-2008), with a compound annual growth rate (CAGR) in sales, in operating profit, and in net profit of 93.74%. 338.33%, and 429.96%, respectively; the net profit of Jifeng Agricultural Machinery reached RMB25.08 million in the first half-year of 2009, which is already close to the whole year net profit of 2008.

"However, sales of farm machinery only accounts for 20% of the national agricultural resources market," Mr. Wang Fei, Chief Executive Officer of Prosperous Agriculture Limited Company ("Prosperous Agriculture") said. "We are building the largest agricultural resources sales and distribution platform of China, it will not only be for the sales of farm machinery, but also fertilizers, pesticides, seeds, agriculture plastic, agricultural appliances, etc., covering almost all the agricultural resources with even more varieties; moreover, the coverage of Jifeng Agricultural Machinery's chain stores only concentrates on part of the country, the number of those stores is quite small when comparing with the capacity of the national market, whereas the agricultural resources sales and distribution platform of Prosperous Agriculture covers the whole country with a scope much bigger. The co-operation with IMOT is a realization of an organic combination by utilizing the capital and financial advantageous position of IMOT as well as the strength of the brand and chain operation of Prosperous Agriculture, the ultimate goal is to extend the platform from just selling agricultural products to also including other consumer goods, becoming the "Home Depot" of the rural areas in China and eventually the "Walmart" of the China rural areas." Mr. Wang Fei has a full vision for the future