WANWEI WUHAN DONGXIHU COLD CHAIN PARK ACHIEVES GREEN WAREHOUSE AND LEED GOLD CERTIFICATION

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WANWEI WUHAN DONGXIHU COLD CHAIN PARK ACHIEVES GREEN WAREHOUSE AND LEED GOLD CERTIFICATION

Wanwei Wuhan Dongxihu Cold Chain Park upholds the principle of sustainable development, creating a benchmark national cold chain park project aimed at enhancing intelligent, visualized, and lean warehousing information systems. It strives to build a green, energy-efficient, and environmentally friendly cold chain distribution center. Recently, the park received the highest-level Tier 1 Green Warehouse certification from the China Association of Warehousing and Distribution, and the Gold certification for LEED BD+C: Warehouses and Distribution Centers from the U.S. Green Building Council.

Wanwei Wuhan Dongxihu Cold Chain Park is the first high-standard cold chain intelligent park built by Wanwei in Wuhan. It is a three-story ramp park with a total construction area of about 90,000 square meters and a cold storage capacity of nearly 57,000 tons. Located in the premium area of Dongxihu District, the park includes all temperature zones such as frozen, refrigerated, constant temperature, and ambient temperature. It also has value-added service areas like food processing to meet the diverse needs of various customers, providing comprehensive cold chain logistics services to leading chain enterprises such as Walmart and Yum!

In the initial design phase, special meetings were held to discuss the energy-saving intelligent system of the park, responding to the “dual carbon” goals and practicing green concepts. The park is designed with solar photovoltaics and automation systems, with heat recovery from refrigeration used for floor heating and antifreeze in cold rooms. Energy-consuming equipment is chosen based on energy-saving standards. The park employs intelligent temperature control, intelligent refrigeration, intelligent fire protection, and intelligent security systems to ensure the storage, distribution, and environmentally friendly operation of the park.

All warehouse roofs in Wanwei Wuhan Dongxihu Cold Chain Park (three cold storage buildings) are covered with photovoltaic panels, using high-efficiency photovoltaic modules with a conversion efficiency of up to 21.2% and inverter efficiency of 98.6%. The roof area is 22,638 square meters with a total installed capacity of about 3.19 MW. Preliminary estimates suggest that the annual average power generation from the rooftop photovoltaics is about 3.03 million kWh.

Additionally, Wanwei Wuhan Dongxihu Cold Chain Park utilizes a fully automated warehouse system. Compared to traditional rack warehouses, the energy-saving rate of the automated warehouse system is as high as 33%. The automated warehouse doors are smaller than traditional ones, significantly reducing cold air leakage. Furthermore, the automated system’s dark operation mode reduces lighting electricity consumption compared to traditional cold storage. The double-deep stacker system has a real-time energy feedback function, also contributing to energy savings. From the perspective of rack height and efficiency, traditional industry racks generally have 5-6 layers, whereas Wanwei Wuhan Dongxihu Cold Chain Park’s automated racks reach 15 layers. The operational efficiency of the automated warehouse is 195 pallets/hour, peaking at 228 pallets/hour, which is 2-3 times the efficiency of manual operations. The automated warehouse features imported hydraulic buffers and world-class control technology and hardware. The warehouse adopts a conveyor + linear shuttle car mode, making the equipment compact and flexible, greatly saving corridor space and reducing the time goods stay in the corridors.

Based on the ASHRAE90.1-2010 Energy Standard for Buildings Except Low-rise Residential Buildings, the project’s energy-saving rate exceeds 50%.

As of June 30, 2023, Wanwei’s cumulative green building certification area exceeds 7.7 million square meters, with 101 projects obtaining three-star green certification. Twelve cold chain parks have received LEED Platinum/Gold certifications (including seven Platinum and five Gold). In the future, all new cold storage facilities will aim for 100% green warehouse certification and 100% coverage of distributed photovoltaics.

Introduction

The Xu Guifen family, who controls Huangshanghuang (002695.SZ), known as the “Queen of Marinated Food,” is once again embroiled in controversy. On September 22, Huangshanghuang disclosed details of a private placement, with the Xu Guifen family fully subscribing to the 450 million yuan issuance initiated nine months ago.

Controversy Surrounding the Private Placement

This private placement has sparked doubts for several reasons. First, Huangshanghuang’s stock price is currently at a historical low, and the private placement price of 10.08 yuan per share is a 10.56% discount to the current price. This move has raised suspicions of arbitrage by the actual controllers. Secondly, the funds raised will be entirely used for production expansion and warehouse construction. However, the company’s capacity utilization rate has significantly declined in recent years, with several projects not reaching expected capacity or being terminated. Is there a necessity for further expansion?

Xu Guifen, called the “Queen of Marinated Food,” started her entrepreneurial journey at 42 after being laid off, turning her marinated food business into a billion-yuan enterprise and creating a family fortune of hundreds of millions. But now, the marinated food business is no longer easy. Huangshanghuang’s performance has drastically declined, with net profits in 2022 dropping to 30.8162 million yuan, a historical low. After a brief wave of store closures, the Xu Guifen family restarted expansion efforts in 2023, opening 600 new stores in the first half of the year, yet revenue decreased instead of increasing.

From Laid-Off Worker to Queen of Marinated Food

Xu Guifen’s life has seen many ups and downs. Born in October 1951 into a dual-worker family, she found her first stable job in 1976 at a vegetable market due to her father’s unit. Her diligence led to a transfer to Nanchang Meat Food Company in 1979, marking her first significant engagement with the food industry. In 1984, she was appointed as a store manager.

However, she faced the wave of layoffs in 1993 and was forced to leave the food company. Faced with limited options, Xu Guifen turned to entrepreneurship, focusing on the marinated food business. She borrowed 12,000 yuan and opened the first Huangshanghuang Roast Poultry Shop in Nanchang, laying the foundation for her marinated food empire.

By 1995, Huangshanghuang began franchising. In just three years, it expanded to over 130 stores, generating 13.57 million yuan in sales and becoming a sensation in Jiangxi. Under Xu Guifen’s leadership, Huangshanghuang went public in 2012, achieving 893 million yuan in revenue and 97.4072 million yuan in net profit that year.

As Huangshanghuang’s performance stabilized and revenue grew, Xu Guifen handed over the reins to her eldest son, Zhu Jun, in 2017, who took on the roles of chairman and general manager. Her second son, Zhu Jian, became vice chairman and vice general manager, with Xu Guifen and her husband Zhu Jiangen both serving as directors.

By 2019, Huangshanghuang’s revenue had doubled since its IPO, reaching 2.117 billion yuan, with net profits of 220 million yuan. Under the Xu Guifen family’s management, Huangshanghuang, along with Juewei Duck Neck and Zhou Hei Ya, became one of the top three marinated duck brands, cementing Xu Guifen’s status as the “Queen of Marinated Food.”

According to Wind data, Huangshanghuang’s performance peaked in 2020, with revenue and net profits reaching 2.436 billion yuan and 282 million yuan, respectively. That year, the Xu Guifen family ranked 523rd on the Hurun Rich List with a wealth of 11 billion yuan. In 2021, Xu Guifen and her family were listed at 2,378th on the Forbes Billionaires List with a wealth of 1.2 billion US dollars.

The Challenge of Digesting 450 Million Yuan Capacity Expansion

On September 22, Huangshanghuang announced the completion of the private placement, raising concerns due to the low subscription price. The price of 10.08 yuan per share was a 10.56% discount to the stock price of 11.27 yuan per share on the issuance day. Notably, Huangshanghuang’s stock price is at a historical low, with the private placement price even lower than the year’s lowest price of 10.35 yuan per share.

Additionally, all the shares were subscribed by Xinyu Huangshanghuang, controlled by the Xu Guifen family. The shareholding structure reveals that the Xu family owns significant stakes in Huangshanghuang Group, which in turn holds a 99% stake in Xinyu Huangshanghuang.

The funds raised will be used for three projects: the meat duck slaughtering and by-product processing project by Fengcheng Huangda Food Co., Ltd., the 8,000-ton marinated food processing project by Zhejiang Huangshanghuang Food Co., Ltd., and the food processing and cold chain storage center construction project by Hainan Huangshanghuang Food Co., Ltd.

However, in recent years, Huangshanghuang’s performance has been declining. In 2021, the company’s revenue and net profit decreased to 2.339 billion yuan and 145 million yuan, down 4.01% and 48.76%, respectively. The decline continued in 2022, with revenue and net profit dropping to 1.954 billion yuan and 30.8162 million yuan, down 16.46% and 78.69%.

With declining performance, Huangshanghuang’s capacity utilization rate also fell from 63.58% in 2020 to 46.76% in 2022. Despite maintaining a capacity of 63,000 tons, the completion of the new projects will increase capacity by 12,000 tons, reaching a total of 75,000 tons. With the current low utilization rate, how to digest the increased capacity will be a challenge for Huangshanghuang.

In the first half of 2023, some projects failed to meet expected capacity or were terminated due to insufficient demand. According to the 2023 semi-annual report, the “5,500-ton meat product processing project” and “6,000-ton meat product processing project in Shaanxi” did not reach expected capacity, while the “8,000-ton meat product and other cooked product processing project” was terminated.

Moreover, declining performance led to a wave of store closures. At the end of 2021, the company had 4,281 stores, but this number decreased to 3,925 by the end of 2022, a reduction of 356 stores.

In 2023, Huangshanghuang resumed its store expansion strategy. By the end of June 2023, the company had 4,213 stores, including 255 directly operated stores and 3,958 franchise stores, covering 28 provinces and 226 cities nationwide.

However, the actual number of new stores fell short of expectations. Huangshanghuang planned to open 759 new stores in the first half of 2023 but only opened 600. The revenue for the first half of 2023 showed a slight decline, despite the increase in store numbers.

With declining capacity utilization rates and store expansions failing to boost revenue, how to lead Huangshanghuang back to growth is a critical challenge for the second-generation leader Zhu Jun.

Recently, Huacao Town held the 2023 “Quality Strong Town” work conference and the “Quality Month” themed event. Representatives from more than 10 leading biopharmaceutical companies, including Innovent, Weigao, Neusoft, Yunnan Baiyao, Merck, Carl Zeiss, Organon, Shanghai Pharmaceuticals Holding, GlaxoSmithKline, Baxter Healthcare, and Takeda Pharmaceutical, along with experts and scholars from related fields, gathered to discuss “Quality Strong Town” initiatives and further promote high-quality development of the biopharmaceutical industry in Hongqiao Qianwan.

As a key development sector in Minhang District, the biopharmaceutical industry is attracting increasing foreign investment due to its unique advantages. Located at the core of the Hongqiao International Hub, Huacao leverages the high-end medical services cluster of the New Hongqiao International Medical Park to accelerate the construction of biopharmaceutical R&D headquarters for companies such as Innovent Biologics, Weigao Group, Yunnan Baiyao, Simcere Pharmaceutical, Neusoft Medical Systems, and Chia Tai Tianqing Pharmaceutical Group, thereby creating a biopharmaceutical industry cluster.

During the event, Zhao Yongqing, Deputy Director of Shanghai Chuangqi Health Development Research Institute, and representatives from leading biopharmaceutical companies such as Innovent, Weigao, Merck, and Organon, jointly discussed topics like “Opportunities for High-Level Openness in Hongqiao” and “High-Quality Development of the Medical and Health Industry under New Regulatory Policies.” They explored how to accelerate industry clustering, leverage resource advantages, and facilitate more medical enterprise projects in Qianwan.

Currently, nearly 100 domestic and foreign biopharmaceutical companies have gathered in Huacao, gradually forming a future health industry cluster integrating R&D, clinical services, and overall healthcare. The Hongqiao Qianwan area will continue to focus on biopharmaceuticals, developing a distinctive industry cluster, and leveraging the New Hongqiao International Medical Center to innovate and develop the entire biopharmaceutical industry chain, enhancing the biopharmaceutical industry brand.

Huacao Town officials stated that they will continue to serve as “store clerks” to resolve issues for enterprises, creating an excellent environment for business development and stimulating new momentum for Qianwan’s growth.

Government innovation services and enterprise confidence are key. This year, Huacao introduced ten business-friendly policies, providing conveniences in education, healthcare, elderly care, and housing for enterprises. By relocating and freeing up land, they create space for enterprise development. Building a “world-class reception room” offers an efficient investment environment for businesses.

To continuously empower leading and key enterprises, Huacao provides high-quality services while nurturing enterprise potential, aiming for them to become industry standard setters and leaders. In this government-enterprise collaboration, Shanghai Shengsheng Logistics Co., Ltd. is a beneficiary. As a leading biopharmaceutical cold chain distribution company rooted in Huacao for many years, Shengsheng Logistics, under the guidance and support of the town government, actively participates in national standard-setting projects, enhancing industry standards. Its clinical supply chain service standardization pilot project passed the municipal assessment with high scores.

Huacao promotes high-quality regional development through initiatives like encouraging applications for various government quality awards, “Shanghai Brand” certifications, “Shanghai Standards” recognitions, and “Standardization Demonstration Projects” at all levels. This year, several units and individuals recommended by Huacao Town, such as the Ji Wang Nursing Home in Minhang District, Shanghai Rizhi Sheng Technology Co., Ltd., New East Garden Happy Home, and Shanghai Yongfeng Hot Dip Galvanizing Co., Ltd., have won the District Mayor Quality Award Organization Silver Award, Individual Innovation Award, and Personal Silver Award.

Highlight 1: Kuaishou E-commerce’s “Origin Tracing Plan” Enters Panjin

Kuaishou E-commerce’s “Origin Tracing Plan” has made its way to Panjin, aiming to attract more high-quality crab source merchants and promote the upward movement of fresh products.

Highlight 2: Overall Development Trends and Policy Interpretation of Kuaishou’s Fresh Produce Industry

At the meeting, a Kuaishou representative introduced the overall development trends of the fresh produce industry on Kuaishou and provided detailed explanations of the 2023 Kuaishou E-commerce “Crab Quality Control Rules” and the “‘Worry-Free Crab’ Rights Policy.”

Highlight 3: Rapid Growth in Sales of Key Seasonal Fresh Produce on Kuaishou E-commerce

According to data, the sales scale of key seasonal fresh produce on Kuaishou E-commerce has been growing rapidly. The number of sellers has exceeded 100, with cumulative GMV surpassing 100 million yuan and a year-on-year GMV growth rate of 105%, far exceeding the industry average.

Highlight 4: Various Initiatives by Kuaishou E-commerce to Support Source Merchants and Enhance Exposure Accuracy

To further inject strong momentum into the fresh produce industry, Kuaishou E-commerce has implemented several platform policies, including the Flow Plan, Super Brand Day, and four other major initiatives. Additionally, it provides continuous support through training and guidance, online operations, and offline activities, helping source merchants grow and enhance exposure accuracy.

Highlight 5: Success of Kuaishou E-commerce’s Tea, Wine, and Fresh Produce Industry IP “Origin Tracing Plan” in Driving Industry Development

The “Origin Tracing Plan” for the tea, wine, and fresh produce industry by Kuaishou E-commerce has already invested millions in traffic to help source merchants grow and thrive. This initiative has successfully boosted several brand merchants within the Suzhou hairy crab industry belt to expand their commercial territories.

Recently, Hong Kong Yuhu Group and JD Group signed a strategic cooperation agreement, marking a new phase in their collaboration. As a diversified multinational industrial group, Hong Kong Yuhu Group is committed to promoting the integrated development of the industrial chain and building an industrial ecosystem with both international and domestic circulation. This cooperation aims to fully leverage each party’s resource advantages and actively engage in multi-dimensional, multi-level, and multi-faceted deep cooperation. Together, they will create a fully digitalized, low-carbon cold chain food supply solution, promoting the integration and sustainable development of industrial chain resources.

According to the strategic cooperation agreement, Hong Kong Yuhu Group and JD Group will focus on comprehensively deepening the digitalization of the supply chain. They will jointly build a digital low-carbon cold chain smart park, achieving comprehensive cooperation in supply chain financial services, food supply chain, dual carbon management in parks, and enterprise services, promoting long-term mutually beneficial development.

Yuhu Cold Chain, a leader in the cold chain food supply chain sector, possesses outstanding industry insights and technological innovation capabilities. JD Logistics, as China’s leading technology-driven supply chain solutions and logistics service provider, offers integrated supply chain solutions based on the “trinity” of software, hardware, and system integration. Both parties will actively promote innovative cooperation models, exploring digital supply chain solutions through a “digital supply chain + supply chain finance” dual-chain linkage model, and jointly build a smart cold chain demonstration park.

Both parties agreed that this strategic cooperation will facilitate resource sharing and complementary advantages, further advancing digital transformation and high-quality integration of the industrial chain.

Yuhu Group, with over 20 years of history, is a multinational industrial investment group founded by Hong Kong entrepreneur and renowned patriotic overseas leader Huang Xiangmo, who has Guangdong roots. Huang Xiangmo currently serves as the executive director of the 9th Council of the China Council for the Promotion of Peaceful National Reunification, executive director of the 5th Council of the China Overseas Friendship Association, a member of the Hong Kong Election Committee, and a member of the Hong Kong National People’s Congress Election Meeting. Yuhu Cold Chain, a subsidiary of Yuhu Group, is a cold chain food supply chain enterprise. Leveraging its international high-standard digital cold chain park industrial cluster, it provides one-stop domestic and international procurement, warehousing, logistics solutions, comprehensive financial support, and high-quality living and office services. It aims to establish offline circulation standards, empower online digital trade, and build a dual circulation industrial ecosystem, earning the “2022 Social Value Enterprise” award.

Currently, Yuhu Cold Chain projects in Guangzhou, Chengdu, Meishan, Wuhan, and Jieyang have all commenced construction. These five projects are listed as provincial key projects in Guangdong, Sichuan, and Hubei provinces, forming the largest cold chain project cluster under construction in China. Additionally, the Guangzhou project ranks first among Guangdong Province’s cooperation projects with multinational enterprises during the 14th Five-Year Plan period and is a member of the “Guangzhou Airport-Type National Logistics Hub.” The Chengdu project is a key part of Chengdu’s “National Backbone Cold Chain Logistics Base,” the Meishan project is selected as a pilot project for large regional commodity distribution centers in Sichuan Province, and the Wuhan project is included in Wuhan City’s major construction projects under the “14th Five-Year Plan” for comprehensive transportation development and modern logistics industry development.

In recent years, food safety has become a focal point of public interest and policy support, with more and more companies targeting this trend and actively expanding their industrial layouts. Recently, Hubei Nongdinghui Technology Co., Ltd., from the fertile region of fish and rice, has been particularly active in this arena.

Industry news reports that on September 26, Nongdinghui’s Jiangsu partner, Jiangsu Xiandinghui, will host the Nongdinghui Nanjing City Partner Launch Conference and the Jiangsu Xiandinghui Fresh Produce Full Supply Chain Safety Loop Launch at the Buckingham Palace Hotel in Nanjing. This signifies the official launch of Nongdinghui’s local ecosystem in Nanjing, offering residents a safer dining experience.

It is known that under the opportunity of the second industrialization of agriculture, farm factories, central kitchens, and cold chain logistics have been successfully established nationwide, laying a high-quality development foundation for the prepared food industry.

Leveraging a decade of digital community experience and a solid foundation of three years in a full supply chain safety loop for fresh produce, Nongdinghui has rapidly expanded nationwide in just three years. Its ecosystem spans Wuhan, Yichang, Shiyan, and Anlu in Hubei; Shenyang and Dalian in Liaoning; Nanjing in Jiangsu; Hangzhou in Zhejiang; Hefei in Anhui; and Shenzhen, Dongguan, and Guangzhou in Guangdong, among other cities.

It is worth noting that while Nongdinghui’s fresh produce industry falls under the prepared food sector, it significantly differs from traditional prepared foods. All dishes have a freshness period of only 3-5 days and do not contain any preservatives, ensuring food safety as the cornerstone of the company’s development. They have a grand vision of safeguarding the dining tables of 1.5 billion people. Industry experts have noted that Nongdinghui’s innovative model is causing a stir and prompting reflection within the industry.

It is believed that with the implementation and operation of Nongdinghui’s full supply chain safety loop for fresh produce in Nanjing, this new type of safe dining experience will be favored by many consumers. It will also offer Nanjing residents new possibilities and more choices in their dining consumption.

On September 26, the Weihai Municipal Government and JD Group signed a framework agreement to deepen strategic cooperation, reaching substantial agreements in areas such as marine industry belts, e-commerce, logistics, and education. This collaboration not only aims to bring Weihai’s signature products like sea cucumbers and figs to households across the country but also sees JD’s deep involvement in Weihai’s education, healthcare, and technology sectors, empowering the city’s development comprehensively.

Why Did JD Group Choose Weihai?

The new chapter of cooperation between JD and Weihai can be traced back to a cherry flight to Jiangnan. Weihai’s favorable natural conditions have given rise to twelve distinctive agricultural product belts, including apples and cherries, and fostered high-quality seafood brands like natural wild sea cucumbers. Since the beginning of this year, coordinated efforts by the municipal e-commerce industry development task force, along with departments of commerce, marine, agriculture, and supply and marketing, have actively engaged leading e-commerce and logistics companies using these specialty products as a gateway. This quickly attracted the attention of JD Group, a leading player in the industry. In June, Weihai welcomed JD Air’s inaugural direct flight to Jiangnan, carrying fresh cherries, celebrated with the highest aviation ceremony of “water salute.”

The delicious Weihai cherries opened markets across Jiangnan and paved the way for deeper cooperation between Weihai and JD. In July, JD’s official seafood flagship store in Weihai launched operations, with a self-operated flagship store soon to follow. In August, the JD Logistics Supply Chain (Weihai) Industrial Base and JD Cloud Warehouse projects were established in Weihai, significantly reducing cold chain express prices by two-thirds, benefiting the city’s fresh produce logistics sector. In September, the “Weihai Sea Cucumber · JD Fresh” media promotion conference at JD headquarters garnered positive social feedback, propelling Weihai and JD onto a fast track of collaboration.

“Weihai is a major city in marine fisheries in China, leading in sea product yield among prefecture-level cities for over 30 years with large output and high quality. We have reached a consensus on building a marine industry belt,” said Feng Quanpu, Vice President of JD Group. JD will strengthen its cooperation with Weihai enterprises to support the sale of Weihai sea products to households nationwide through JD’s platform.

Comprehensive Strategic Cooperation Agreement

This consensus has evolved into a comprehensive strategic cooperation agreement: JD’s seafood operator and Weihai’s fishery enterprises signed an agreement to feature products in JD’s Weihai seafood flagship store. JD Logistics signed a logistics cooperation agreement with Weihai supply chain enterprises. The inauguration of JD’s Weihai seafood flagship store and JD Logistics Supply Chain (Weihai) Industrial Base took place, and JD Education signed a strategic cooperation framework agreement with Weihai Vocational College. The 2023 JD Agricultural Specialty Shopping Festival Weihai Session was launched simultaneously, further enhancing the competitiveness of Weihai’s seafood enterprises on leading e-commerce platforms.

To promote more “Weihai quality products” nationwide, the cooperation between Weihai and JD Group is deepening from “promoting products” to “setting standards.” JD Supermarket will collaborate with Weihai Sea Cucumber Industry Association, domestic research institutions, and major sea cucumber enterprises in Weihai to establish e-commerce standards for Weihai sea cucumbers.

“We will join hands with JD Group to focus on building specialty e-commerce industrial belts, integrated supply chain circulation systems, and multi-format online and offline consumption systems, achieving mutual benefit and win-win outcomes,” said a representative of the municipal e-commerce industry development task force. They emphasized using agricultural and marine product cooperation as an entry point to deepen comprehensive cooperation with JD Group, striving to create a local model of collaboration with leading e-commerce enterprises.

Recently, the most inland “seafood” has become a sensation! Thanks to the land-based seafood farming model, Xinjiang has seen bountiful harvests of specialty aquatic products such as salmon, white shrimp, crayfish, and hairy crabs. Xinjiang’s “seafood” has become a hot topic, trending on major social media platforms.

To better deliver these high-quality aquatic products to consumers nationwide, JD Logistics has partnered with the Urumqi High-tech Zone (Xinshi District) E-commerce Association. Leveraging JD Logistics’ cold chain services, various Xinjiang specialty aquatic products from association member merchants will be delivered nationwide in a timely and efficient manner.

Xinjiang’s vast and sparsely populated areas make it challenging to achieve scalable and intensive logistics. Most aquatic products require full cold chain transportation, presenting significant logistics challenges for local merchants.

JD Logistics, with its 10 distribution centers across Xinjiang, brings new opportunities for transporting Xinjiang’s specialty aquatic products nationwide. Through fixed-schedule cold chain transportation, these products can seamlessly integrate into the national cold chain warehouse network and reach consumers’ hands with full cold chain delivery.

During transportation, JD Logistics’ independently developed intelligent temperature monitoring platform ensures the entire cold chain transport process is “zero interruption” and “zero spoilage,” maintaining the freshness of the products. Additionally, JD Logistics provides full logistics traceability from the origin to the consumer.

Association member merchants will sell frozen salmon products such as hotpot fish slices, smoked salmon, and fish fillets on the JD platform. These products will be transported to cold chain warehouses nationwide via JD Logistics’ cold chain services. After consumers place orders online, JD Logistics will deliver the products from the nearest warehouse, ensuring both timely delivery and high-quality salmon.

Currently, JD Logistics operates approximately 100 temperature-controlled cold chain warehouses for fresh, frozen, and refrigerated foods, covering about 500,000 square meters. JD Logistics will continue to leverage its cold chain product advantages to create more professional solutions for the fresh produce industry. This will help clients achieve higher in-stock rates, faster inventory turnover, improved fulfillment efficiency, and reduced operating costs, thereby achieving high-quality growth.

1. Meituan Grocery Plans to Launch in Hangzhou in October

Meituan Grocery is planning a significant expansion move.

Exclusive information from DIGITOWN reports that Meituan Grocery is set to launch in Hangzhou in October. Currently, on third-party recruitment platforms, Meituan Grocery has started hiring for site development and ground promotion staff in Hangzhou, covering multiple districts. The job postings specifically highlight “new city launch, blank market, many opportunities.”

It is worth noting that earlier, there were reports of Meituan Grocery planning to enter other East China cities such as Nanjing and Wuxi, indicating a strategic focus on deepening its presence in the East China market.

In February this year, Meituan Grocery resumed its previously postponed plan to launch in Suzhou from early last year and plans to expand its fresh e-commerce business to more cities in East China.

Shortly after, Meituan Grocery hosted a supply chain summit titled “Gathering Momentum for Instant Retail, Technology Empowering Win-Win.” At the summit, Meituan Grocery’s business head Zhang Jing stated that Meituan Grocery will continue to leverage technology to boost retail, aiming to help 1,000 emerging brands achieve sales exceeding 10 million yuan.

On September 12, Meituan released an internal open letter announcing the new round of talent development and promotion list for 2023, promoting five managers to vice presidents, including Zhang Jing, head of the grocery division.

These actions clearly show that Meituan places significant importance on its grocery business and has great expectations for it, indicating that more time and effort will be invested in developing this business.

Since the beginning of this year, Meituan Grocery has been rapidly expanding. So far, it has launched new operations in parts of second-tier cities like Wuhan, Langfang, and Suzhou, continuously increasing its market share in the fresh e-commerce sector.

In terms of results, Meituan Grocery has seen improvements in both SKU count and delivery fulfillment efficiency over the past two years.

Regular users of Meituan Grocery would notice that this year, in addition to fresh produce, the platform has added various daily necessities and personal care products. Data shows that Meituan Grocery’s SKU count has exceeded 3,000 and is still expanding.

In the fresh produce category alone, Meituan Grocery boasts over 450 direct sourcing suppliers, nearly 400 direct supply bases, and more than 100 digital ecological production areas, ensuring a stable supply from the source.

In terms of delivery fulfillment, Meituan Grocery underwent a significant upgrade last year, rebranding itself as a 30-minute fast delivery supermarket. Official data indicates that over 80% of Meituan Grocery orders can be delivered within 30 minutes, with on-time rates increasing by 40% during peak periods.

However, it is well-known that achieving 30-minute delivery is challenging. Meituan Grocery’s positioning as a 30-minute fast delivery supermarket requires strong delivery capabilities, which is a strength of Meituan. Data shows that in 2021, Meituan had 5.27 million riders, and in 2022, this number increased by nearly one million to 6.24 million, with the platform adding 970,000 new riders in one year.

Thus, it is evident that Meituan Grocery has strong competitiveness and advantages in both product supply and delivery. As the business continues to expand, Meituan Grocery will create even greater possibilities for the fresh e-commerce industry.

2. Fresh E-Commerce Becomes a Game for Giants

The fresh e-commerce industry has experienced unprecedented challenges over the past two years.

However, since the beginning of this year, with Freshippo (Hema) and Dingdong Maicai announcing profitability, the industry seems to have entered a new development phase, seeing long-awaited hope.

Shortly after, giants like Alibaba, JD.com, and Meituan began intensifying their efforts in the fresh e-commerce sector, marking the start of a new round of competition.

In addition to Meituan Grocery mentioned earlier, Taobao Grocery and JD Grocery are focusing on instant retail and front-end warehouse models, respectively.

Regarding Taobao Grocery, in May this year, Alibaba merged “TaoCaiCai” and “TaoXianDa” into “Taobao Grocery.” Since then, Taobao Grocery has started offering “1-hour home delivery” and “next-day pick-up” services for fresh products in over 200 cities nationwide.

In the same month, “Taobao Grocery” launched a 24-hour pharmacy service, promising the fastest 30-minute home delivery. At that time, a representative from Taobao Grocery stated that Taobao Grocery had partnered with over 50,000 offline pharmacies, including Dingdang Kuaiyao, LaoBaiXing, YiFeng, and QuanYuanTang, to meet the daily medication needs of consumers.

Also in May, Alibaba integrated its Tmall Supermarket, TaoCaiCai, TaoXianDa, and fresh food businesses to form the “Supermarket Business Development Center” within its local retail division.

These moves by Alibaba indicate that its fresh e-commerce business layout is deepening.

On the JD Grocery side, the company is betting on the often overlooked front-end warehouse model. In June this year, JD.com established its Innovation Retail Department and consolidated businesses like Seven Fresh and Jingxi Pinpin into an independent business unit, furthering its offline retail layout and exploring innovative models.

Recently, the launch event for Beijier Beef by Jinxing Group was held in Zhengzhou. The fresh and delicious beef immediately caught the attention of customers from all over the country, indicating that Beijier Beef has completed its entire industry chain layout and is officially entering the market. At the event, Jinxing Group Vice Chairman Zhang Feng stated that Beijier Beef is committed to offering nutritious, safe, and authentic high-quality beef without injecting water into fresh meat or adding glue to braised meat.

Henan Beijier Meat Products Co., Ltd. also outlined its future development goals at the event: to become the number one brand of braised beef in Henan and a leading brand in China. Industry insiders believe that with the strong market entry of Beijier’s high-quality beef, the current landscape of the provincial beef market is poised for significant change.

Rampant Issues with Injected Water and Glue in Meat

Beijier Says No to Industry Malpractices

In recent years, the domestic beef market has been plagued by scandals involving injected water and glue in meat, severely impacting consumer health. At the launch event, Zhang Hailin, an expert in Chinese culinary studies and President of the Henan Province Catering and Accommodation Industry Association, critically addressed these issues.

Zhang Hailin also expressed admiration for Beijier’s solemn commitment on its first day of launch: “No water injected into fresh meat, no glue added to braised meat.” He emphasized that in the fast-developing catering industry, many substandard products have emerged, causing regret and concern. The catering industry is a livelihood and ethical industry. Companies that maintain quality, integrity, and treat consumers sincerely are worthy of support. Jinxing Group’s dedication to quality in Beijier Beef is commendable, and the Henan Province Catering and Accommodation Industry Association will support Jinxing, Beijier, and the development of Beijier’s beef products.

Self-Owned Livestock Farms Ensure High-Quality Beef

The Beijier Beef project was initiated in 2021. That year, Henan Xuehua Red Cattle Farming Co., Ltd., serving as the Beijier Beef breeding base, was completed and put into production. The project is located in Anliang Town, Jia County, Pingdingshan, covering over 500 acres, with 28 cow sheds and over 12,000 cattle. The biggest feature of Beijier Beef is its self-owned farms, ensuring meat quality from the source, with all cattle sourced from its own farms.

Anliang Town in Jia County, where Henan Xuehua Red Cattle Farming Co., Ltd. is located, lies at the foot of Mount Daliu in the Funiu Mountain Range. This area boasts a unique natural environment with selenium-rich soil, ample sunlight, and clean water, ensuring the high quality of beef from the feed source. To meet the demand for high-quality beef, Beijier uses grain feeding methods, scientifically mixing silage, corn, soybean meal, distiller’s grains, wheat bran, and red dates without adding any hormones or antibiotics. The beef is marbled, flavorful, and rich in protein and amino acids.

Beijier Beef’s breeding base has a unique advantage in distiller’s grains, provided by Jinxing Beer. The cattle consume fresh distiller’s grains daily, which retain high nutritional content, including around 25% crude protein. The red cattle in Jia County, fed with these distiller’s grains, have shinier coats and better meat quality. The breeding base also selects cow shed locations with strict criteria for sunlight, ventilation, and drainage, ensuring optimal living conditions for the cattle.

Beijier Beef’s cattle are of premium breeds, including Jia County Red Cattle and Simmental Cattle. Jia County Red Cattle, a renowned breed in China, received the “National Agricultural Product Geographical Indication” in 2020 and was named the “High-Quality Beef Production Recommended Breed” at the first China Beef Quality Beef Appraisal Conference the same year. The imported Simmental Cattle, originally from the Swiss Alps, are known for their large size, fast growth, and high meat yield, with tender and juicy meat that is easily absorbed and popular worldwide.

Strict Quality Control Ensures Authentic High-Quality Beef

“Food is the paramount necessity of the people, safety is the first priority in food, quality is the foundation of safety, and sincerity is the root of quality.” According to Zhang Feng, Beijier Beef is Jinxing Group’s first major cross-industry product in 41 years, with Chairman Zhang Tieshan investing considerable effort into it. Collaborating with multiple professional institutions, the company has conducted extensive research on breeding, slaughtering, and braising processes to create a high-quality national beef brand. The commitment to “no water injected into fresh meat, no glue added to braised meat” is the company’s baseline for quality, with “nutrition, safety, and reassurance” as its mission.

Jinxing Group chose Jia County for its breeding base due to the fame of its red cattle, especially the highly regarded snowflake beef, symbolizing high-end beef. According to Feng Lunping, General Manager of Henan Xuehua Red Cattle Farming Co., Ltd., Jia County Red Cattle beef is known for its bright red color, white fat, tender texture, juicy meat, and high nutritional value, comparable to Japanese Wagyu. The unique conjugated linoleic acid in Jia County Red Cattle beef, which helps melt fats and soften blood vessels, has earned it the title “King of Beef,” with over 58% of its fatty acids being unsaturated. The Simmental Cattle, known for their large size, fast growth, and high meat yield, also contribute to Beijier’s high-quality beef offerings.

From its inception, Beijier set out to develop a full industry chain model, encompassing cattle breeding, slaughtering, meat processing, cold chain storage, cold chain transportation, terminal sales, feed processing, and cattle breeding. During the breeding process, each cow has a unique ear tag, with dynamic records of age, weight, vaccination status, and feed information, ensuring traceability and real-time monitoring for any issues. Beijier strictly adheres to the “Agricultural Product Quality Safety Standard System, Quality Safety Traceability System, Monitoring and Evaluation Early Warning System,” deeply implementing food safety protocols at every stage.

Beijier’s braised beef products are renowned for their rich flavor and tender texture, achieved through meticulous selection, recipe, and process. The beef is marinated with a blend of dozens of spices, including star anise, Sichuan peppercorns, and cinnamon, following traditional methods and slow-cooked to enhance flavor. Using 121°C high-temperature sterilization and vacuum aluminum foil packaging ensures the beef retains its original taste. Every step, from production, slaughtering, braising, to quality control, is standardized to ensure consumers enjoy nutritious, safe, and reliable beef.

At the launch event, Jinxing Group’s Vice General Manager and Marketing Center General Manager Lü Xiaopeng stated that Beijier Beef aims to build a comprehensive sales network across all channels, achieving both online and offline growth. The goal is to establish Beijier as the leading braised beef brand in Henan and a top brand in China.

Currently, Beijier Beef has entered markets in Henan, Shanghai, Zhejiang, Jiangsu, Anhui, Jiangxi, Hunan, and Hubei. With the addition of braised products and leveraging Jinxing Beer’s mature sales network, Beijier Beef is poised to rapidly expand nationwide, influencing the market trends and dynamics of the beef industry across China.

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