Ningbo Enterprises Compete in the “Blue Ocean” of Medical Cold Chain Products
Ningbo Enterprises Compete in the “Blue Ocean” of Medical Cold Chain Products
Recently, at the warehouse entrance of a technology company in Mazhu Town, Yuyao, Ningbo, over 3,000 medical cold cabinets of various models were fully assembled and ready for shipment, destined to be exported to the U.S. market.
“Many pharmaceuticals and vaccines require cold chain transportation and storage. Our company specializes in the research, development, and production of medical cold chain products. In recent years, the medical cold chain industry has seen new growth opportunities, and our company’s annual output value has maintained a growth rate of 15%. This year, we expect our output value to reach 80 million yuan,” said Sun Ming, the company’s general manager.
The company has been deeply involved in the refrigeration system production and R&D industry for nearly 40 years, initially focusing on producing refrigeration components such as condensers and evaporators. After restructuring in 1999, the company became a technology enterprise integrating R&D, production, sales, and service, with an annual production capacity of over 100,000 units of special cold chain products. It has established production bases in places like Jiangxi.
After years of development, the company’s medical cold chain products have become well-known OEM (Original Equipment Manufacturer) suppliers in the field, recognized by medical institutions in developed countries such as Europe and the United States. With a strong market reputation and high product quality, the products are exported to more than 60 countries and regions. While maintaining its focus on the medical cold chain market, the company has also expanded into the research, development, and production of commercial and rural cold chain products, continuously improving its economic benefits.
Quality and integrity are the foundations of the company’s survival. In recent years, the company has successively passed certifications such as the U.S. UL, ETL, European CE, and Japan’s SG certifications. It strictly adheres to the ISO9001 quality management system and ISO14000 environmental management system for product quality management.
“Compared to household and commercial refrigerators, medical cold chain products require more precise temperature control, smaller temperature fluctuations, and greater technical difficulty in the quality of the refrigeration system and refrigerant ratios,” said Sun Ming. After assembly, each product undergoes a series of stringent quality control measures, including vacuum extraction, refrigerant addition, and over four hours of power-on testing, ensuring no loopholes in any production process. Notably, the company developed a medical refrigerator that can reach temperatures as low as -86°C, primarily used in research institutions and laboratories. This product has become a bestseller in over 10 countries and regions.
Technology and talent are vital sources of the company’s core competitiveness. Currently, the company holds over 60 intellectual property rights, including domestic and international patents and software copyrights. It has been recognized as a National High-Tech Enterprise, a National Technology-Based SME, and a Provincial “Specialized, Refined, and New” SME. The company invests 6% to 10% of its annual output value in technological research and development. Over the past three years, it has invested over 10 million yuan in technological transformation projects, achieving more stable product quality and significantly improved production efficiency. The company has also implemented a solar photovoltaic project, which saves more than 40% of the company’s energy annually.
On the foundation of establishing an innovation team, the company continues to increase its efforts to attract innovative talent, actively collaborating with universities such as Shanghai Jiao Tong University, Zhejiang Sci-Tech University, and China Jiliang University on industry-university-research partnerships to jointly establish research institutions and engineering technology centers.
The company is committed to enhancing its competitiveness through digital transformation. Its next step is to invest over 3 million yuan to implement a 5G green intelligent factory transformation and upgrading project, aiming to create an advanced modern intelligent factory that will drive the company’s development with renewed energy.
SUZHOU’S ONLY ONE! SHIXIANG FRESH PRODUCE SELECTED AS A “2023 NATIONAL E-COMMERCE DEMONSTRATION ENTERPRISE”
Recently, the E-Commerce and Informatization Department of the Ministry of Commerce issued a document recognizing the enterprises selected as “2023 National E-Commerce Demonstration Enterprises.” Suzhou-based Shixiang Fresh Produce (Jiangsu Suiyi Information Technology Co., Ltd.) was listed among the honorees. On November 23, the 2023 China Jiangsu E-Commerce Conference, themed “Deepening Digital-Physical Integration to Promote Industrial Revitalization,” was held in Kunshan. During the conference, a certification ceremony was held for 12 Jiangsu enterprises, including Shixiang Fresh Produce, which is also the only Suzhou enterprise to be named on the 2023 list.
This selection was initiated by the Ministry of Commerce with the aim of identifying a group of “E-Commerce Demonstration Enterprises” that have achieved outstanding results in promoting integration, enhancing public welfare, driving development, revitalizing industries, improving the environment, and fostering openness. After evaluation, 132 e-commerce demonstration enterprises were selected and publicly recognized.
This marks the fourth consecutive year that Shixiang Fresh Produce has been named a National E-Commerce Demonstration Enterprise, highlighting the company’s sustainable, stable, and rapid development in the e-commerce sector and its role as a leader in the industry. This recognition from the Ministry of Commerce also affirms Shixiang Fresh Produce’s 11 years of dedication to supply chain management, its mature digital operation capabilities, and its refined cold chain delivery system. Additionally, Shixiang Fresh Produce has served as a positive example in upgrading e-commerce quality, innovating public services, promoting rural revitalization, and contributing to the establishment of national industry standards.
As a comprehensive operator of urban digital “vegetable baskets,” Shixiang Fresh Produce provides citizens with diversified, personalized, and high-quality fresh food services. The company’s fresh food delivery service covers 3,000 community sites in Suzhou, Wuxi, Nantong, and other areas, with a total of 190,000 community fresh food smart lockers, becoming a convenient facility within community living circles. The smart locker delivery model used by Shixiang Fresh Produce is currently regarded as the first profitable fresh food e-commerce model in China, offering advantages of replicability, scalability, and sustainable development.
Tailoring its operations to urban living characteristics and consumer demands, Shixiang Fresh Produce has developed a mature digital “vegetable basket” comprehensive operation system. This system integrates four-dimensional consumption service scenarios: C-end digital fresh retail, B-end major clients, offline community stores, and digital farmers’ markets. Through digital platforms and end-to-end cold chain facilities, the company has bridged the “last mile” in the distribution of fresh agricultural products, enhancing circulation efficiency and supply quality. The National Development and Reform Commission has praised it as a “truly meaningful urban ‘vegetable basket.’”
The Shixiang Fresh Produce platform offers over 14,000 products across 23 major categories, including vegetables, fruits, meat, poultry, eggs, seafood, dairy, baked goods, grains, oils, and snacks, providing consumers with a wide range of choices. The platform has fully digitalized its operations across procurement, supply, purchase, sales, and distribution, offering users a high-quality fresh food shopping experience. Since its establishment in 2012, Shixiang Fresh Produce has upheld its mission of “ensuring every family can eat safe food.” Over the past decade, the company has strictly controlled quality and safety, improved its cold chain delivery and safety traceability systems, and built a trusted public “vegetable basket.” It has become the top choice for Suzhou citizens when buying groceries via mobile devices.
Being named a “National E-Commerce Demonstration Enterprise” is another new milestone for Shixiang Fresh Produce. The company will continue to leverage the new economic advantages of the Internet+Agriculture model, deepen cooperation with agricultural product bases, and continually enhance its digital capabilities to promote high-quality development. Shixiang Fresh Produce is also committed to fully embracing oversight from the government, society, and its users, constantly improving its quality and service levels, and making greater contributions to the development of the public’s “vegetable basket.”
2023 TAOBAO LIVE FOOD AND FRESH PRODUCE INDUSTRY BELT PROJECT LAUNCH CEREMONY
On November 23, Alibaba’s Taotian Group, under its Taobao Food and Fresh Produce sector and Taobao Live, successfully held the “Food and Fresh Produce Industry On-Site Visit – Dandong Donggang Station” 2023 Taobao Live Food and Fresh Produce Industry Belt National Recruitment Conference in Donggang, Dandong, Liaoning, a key production area for strawberries and fresh produce in China.
This recruitment conference coincided with the strategic efforts to decisively win the “Liaoshen Campaign” for the revitalization of Northeast China and Liaoning Province in the new era. It also aimed to thoroughly implement the national directives on promoting the development of food and fresh produce industry belts through e-commerce platforms, thereby supporting rural revitalization. The event sought to enhance public awareness of the high-quality products from the Dandong food and fresh produce industry belt and to promote the vigorous development of this sector, turning it into a leading industry that drives rural revitalization. The event received strong support and attention from government departments such as the Donggang Municipal Bureau of Commerce and the Donggang Municipal Bureau of Agriculture and Rural Affairs, as well as from organizations like the Donggang E-commerce Association and the Donggang Strawberry Association. Key participants included Mr. Muyan, Head of Alibaba’s Taobao Fresh Produce Industry; Mr. Shuyang, Head of Taobao Tmall Fresh Produce Recruitment; and Mr. Zhoumu, Head of Taobao Live’s Northeast Region. The event was covered by mainstream media from Dandong and Donggang, and attended by 85 industry clients from the national food and fresh produce industry belt and 8 MCN (Multi-Channel Network) organizations, facilitating exchanges and fostering win-win cooperation.
At the estuary of the Yalu River, along the coast of the Yellow Sea, the warm sea breeze meets the cold, humid air from the mountains, bringing abundant rainfall to this land. Thanks to its unique natural conditions, Donggang, a county-level city in Dandong, Liaoning Province, located at the northernmost tip of China’s coastline, has grown from planting 7 strawberry plants in 1924 to developing nearly 200,000 acres of strawberry greenhouses over the course of nearly a century, becoming the largest strawberry production and export base in China.
In recent years, Donggang’s food, fresh produce, and agricultural industry belt have focused on implementing a high-quality brand cultivation plan. Donggang has set dual goals of achieving a century-old strawberry industry and a hundred-billion-yuan output value, combining market-driven approaches with government support, quality with efficiency, and uniqueness with standardization. The city has increased policy support, improved supporting infrastructure and services, created brands through unique characteristics, developed brands through standards, and strengthened brands through marketing. By telling the story of its brands, Donggang has enhanced their recognition, reputation, and competitiveness, building a “1+N” brand system and creating a prosperous agricultural industry. This approach has explored a new path for enriching farmers through e-commerce market expansion and premium product value enhancement.
Looking at the broader food and fresh produce e-commerce industry, the market has expanded continuously in recent years as national living standards have improved and concerns over food safety have grown. Statistics show that the market size of China’s fresh produce e-commerce reached 850 billion yuan in 2020 and is expected to grow to 2.7 trillion yuan by 2026.
Major players in the fresh produce e-commerce market include e-commerce platforms, logistics companies, supermarkets, and agricultural producers. E-commerce platforms like Alibaba’s Hema Fresh and Tmall Fresh hold a dominant market position. In addition, logistics companies such as SF Express and supermarkets like Yonghui Supermarket are also actively expanding into the fresh produce e-commerce sector. Competition among these players is intense, primarily focusing on price, quality, delivery speed, and user experience.
As we enter 2023, the food and fresh produce e-commerce market is expected to have significant growth potential, with the market size continuing to expand. With technological advancements and strengthened policy support, fresh produce e-commerce will usher in new development opportunities.
With the comprehensive upgrading of consumption and the emergence of new trends in pet care, the demand for fresh produce in daily life has extended to emotional care, with fresh produce increasingly seen as a source of emotional companionship within households. The trend of “luxury” pet care is becoming mainstream. According to a 2023 consumer survey by “Euromonitor International” of Chinese pet owners, 63% of consumers believe that “fresh produce is one of the closest family members.” This has also led to the emergence of a series of related industries, such as fresh produce healthcare, beauty, pet boarding, and insurance, significantly promoting the development of the fresh produce economy.
In the online food and fresh produce live-streaming sales field, Taobao’s food and fresh produce sector and Taobao Live have increased investments in professional operations staff, traffic support, precise customer acquisition, and peripheral resources for fresh produce. They have also made significant efforts in standardizing sales and updating related backend rules. Additionally, leveraging Alibaba’s years of experience and technological development, they have achieved real-time monitoring of fresh produce online sales and full logistics transportation, adopting high-standard auditing mechanisms, specialized fresh produce category rules, and industry-leading traffic algorithms. These measures not only protect buyers but also safeguard the interests of sellers. In terms of after-sales service, Alibaba has increased its dedicated customer service personnel for the food and fresh produce industry to ensure timely responses to inquiries from merchants and customers and to address their needs promptly.
Relying on the advantages of the food and fresh produce production area in Donggang, Dandong, Taobao’s food and fresh produce sector, and Taobao Live’s professional online standardized sales solutions, standardized after-sales service capabilities, and Alibaba’s efficient, pragmatic, professional, and innovative work attitude, combined with a ground team that is technologically advanced, forward-looking, information-driven, and standardized, are well-positioned to provide strong support. With the strong backing of the Donggang government and various associations and organizations, and the active cooperation of food and fresh produce industry belt practitioners and e-commerce partners, Donggang’s food and fresh produce sector is sure to reach new heights and achieve greater success!
FANG XIU, CHAIRMAN OF MINWEI INDUSTRIAL: SEIZING NEW GROWTH OPPORTUNITIES IN AQUATIC PREPARED FOODS AND DEEPENING FULL-CHAIN INNOVATION WITH CRAFTSMANSHIP SPIRIT.
Fujian Minwei Industrial Co., Ltd. is a national key leading enterprise in agricultural industrialization, a national high-tech enterprise, a national quality benchmark enterprise, and one of the first batch of national aquatic seed industry enterprises. The company is headquartered in the beautiful “Hometown of Chinese Sea Bass” – Fuding City. On October 24, 2017, it was listed on the National Equities Exchange and Quotations (NEEQ) system (stock code: 871927).
Fang Xiu, Chairman of Minwei Industrial
The fast-paced lifestyle and changes in consumer demand, such as the rise of solo dining and smaller households, have, to some extent, spurred the development of ready-to-eat meals for the C-end market. With the deepening recognition of the “big food concept” and the inherent advantages of marine foods, such as high nutritional value, unique flavors, and a wide variety of options, aquatic ready-to-eat meals are gradually gaining popularity among consumers. Market data shows that in 2022, the scale of China’s aquatic ready-to-eat meal industry reached 104.7 billion yuan, a year-on-year increase of 16.8%. It is expected that by 2026, the market size will reach 257.6 billion yuan. As the aquatic ready-to-eat meal industry enters a “fast track” of development, it also gradually exposes market shortcomings, such as highly homogeneous products and lagging technological innovation, exacerbating industry chaos and competition among enterprises.
In this context, Minwei, a leader in the sea bass breeding field, has achieved outstanding results in the ready-to-eat meal sector within just two years, with a single product surpassing 200 million yuan in sales. Moreover, with highly competitive products and strategic positioning in the C-end market, the company has rapidly expanded its presence in both domestic and international markets, with products exported to more than a dozen countries and regions. How did Minwei, as a “cross-industry player,” successfully achieve a stunning transformation and upgrade? What long-term plans does the company have for the future?
“China Food Miles” interviewed Fang Xiu, Chairman of Fujian Minwei Industrial Co., Ltd. (hereinafter referred to as Minwei), to learn about the company’s development history, innovative capacity, and competitive moat.
Riding the Wave: A Sea Bass Breeding Leader Crosses into the Ready-to-Eat Meal Industry
Chairman Fang introduced that Minwei Foods’ parent company, Fujian Minwei Industrial Co., Ltd., was established in 1992 and has a history of 31 years. Over the past 30 years, Minwei Industrial has focused on seedling breeding, aquaculture, processing, and extended industries, mastering numerous industry-leading core technologies and taking critical steps at different stages. When domestic seedling technology was still in its infancy, the company developed sea bass reproductive control and indoor artificial breeding technology, solving the industry’s “bottleneck” problem. During the immature stage of marine aquaculture, the company developed intelligent deep-water anti-wave cages, promoting the digital transformation of the fishing industry. In August 2010, when marine food processing technology was lagging, the company established Fujian Minwei Foods Co., Ltd., specializing in deep processing of marine fish, accelerating the transformation of scientific and technological achievements, and empowering high-quality industrial development through technological innovation.
Chairman Fang mentioned that at the early stage of Minwei Foods’ establishment, in response to the market’s traditional processing and sales models of fresh and frozen aquatic products, the company pioneered the processing techniques of fish floss and fish jerky, greatly increasing the added value of aquatic products and embarking on the path of deep processing research and development. In 2021, with the rapid development of ready-to-eat meals and the deepening trend of meal preparation in the catering industry, Minwei seized the opportunity to enter the ready-to-eat meal sector to overcome the market difficulties brought by the pandemic.
Entering the new sector, Minwei Foods fully leveraged its supply chain advantages in aquatic products such as sea bass. Currently, the company focuses on sea bass, large yellow croaker, and their deep-processed ready-to-eat meal products and ready-to-eat snacks. These include over 50 products, such as fish floss, fish jerky, fish collagen peptides, ready-to-eat grilled fish, and shredded fish.
Among these, “fish floss” is Minwei Foods’ star product, mainly made from sea bass, cod, and swordfish, offering a delicate and smooth texture rich in essential amino acids and vitamins. This product is popular both domestically and internationally and is currently exported to 11 countries and regions, including Japan, South Korea, Thailand, Singapore, Malaysia, and Hong Kong.
Another star product is ready-to-eat grilled fish, made from premium Tongjiang sea bass and large yellow croaker. The product’s processing involves modern technology, resulting in tender, flavorful, and highly nutritious fish with high protein content. This product has been highly praised and welcomed by consumers, with single-product sales exceeding 200 million yuan this year.
Innovation-Driven High-Value, High-Quality Development
In a highly competitive market environment, the ability to quickly create star products and establish brand recognition is undoubtedly supported by continuous innovation. Chairman Fang explained that Minwei Foods places great emphasis on technological innovation and independent research and development. The company has established a first-level independent core platform, a second-level key technology platform, and a third-level joint construction platform to gather innovation resources from the marine fish industry chain, attract innovative talents, and carry out technological innovation to provide scientific and technological support and services for industry chain research.
The internal R&D team at Minwei is mainly composed of experts, technicians, and outstanding talents in the deep processing field. The team currently includes 32 R&D personnel, 6 mid-to-senior engineers, 6 assistant engineers, and 20 experienced technical personnel.
Externally, Minwei has established the “Minwei Think Tank,” comprising 36 authoritative experts, including Chen Songlin, an academician of the Chinese Academy of Engineering, and Guan Changtao, the chief scientist of the National Marine Fish System. The company has also built 16 research platforms, including the Zhangzhou Comprehensive Experiment Station of the National Marine Fish Industry Technology System, the National Society Innovation Service Station, the Fujian Sea Bass Breeding Key Laboratory, the Fuding Sea Bass Science and Technology Courtyard, and the Enterprise Technology Center. Minwei Foods empowers the entire industry chain’s technological research through innovation. In recent years, the company has carried out scientific research collaborations on marine fish breeding, species farming, aquatic product processing, and cold storage preservation technology.
In terms of industry-university-research integration, Minwei Foods collaborates with major universities and research institutes such as Shanghai Ocean University and Fujian Agriculture and Forestry University.
With the support of a strong R&D team and innovative capabilities, Minwei Foods and its products have received dual recognition from the industry and the market. Its “fish floss” has been awarded as a key new product by the Fujian Provincial Department of Industry and Information Technology, the single champion product of Ningde City’s manufacturing industry, and has won the “Gold Award Product” for 12 consecutive sessions at the China (Fuzhou) Fisheries Expo. The “grilled fish” was awarded the “2022 Fujian Provincial Ready-to-Eat Meal Gold Medal Dish,” and Minwei Foods was recognized as a “Fujian Provincial Ready-to-Eat Meal Leading Enterprise” in June 2023.
Building a Competitive Moat through Comprehensive Strength
How to break through in a rapidly changing market is a core challenge faced by every enterprise. Minwei has built its unique competitive moat through years of solid internal development.
Chairman Fang explained that Minwei has the advantage of a full industry chain. The company has established a full industry chain system covering seedling breeding, aquaculture, processing, and sales, forming a layout where “aquaculture is the foundation, seed breeding is the focus, and deep processing and ready-to-eat products are the core.” The company adopts a “company + farmer + base” business model, selling seedlings to farmers at fair prices, providing technical guidance and standardization, and signing fish repurchase agreements to ensure farmers’ stable profit margins while maintaining smooth production and sales processes, thus preserving Minwei’s competitive pricing power in the market.
Minwei’s products have quality and differentiation advantages. The company owns a natural harbor suitable for fish breeding and has long-term cooperation with farmers, implementing a 5+1 management model (unified seedlings, unified feed, unified standards, unified technology, unified testing). This approach standardizes operations across the entire industry chain, from seedling and feed supply to cost reduction and technology output, ensuring stable supply channels for raw materials.
In terms of quality and safety management, Minwei implements a “one product, one code” food safety information traceability system and has obtained certifications for national standards management systems, such as ISO9001, ISO22000, and HACCP, ensuring the safety of products from ocean to table. Chairman Fang highlighted that Minwei’s products have been designated for national leader summits and the Olympics. In September 2017, as the largest fresh supplier in Fujian Province, the company supplied sea bass to the BRICS Xiamen Summit and was recognized as a “Special Supply Base for the National Leaders’ Xiamen Summit.” In February 2022, “boneless sea bass” was designated as a product for the Winter Olympics, and the company’s base was recognized as a “National Food and Nutrition Education Base.”
Minwei Foods integrates its resources to create differentiated product categories by adapting seasoning and quality levels to different scenarios and consumer groups. For example, it offers different seasoning and dish levels based on regional differences (North vs. South), domestic vs. international markets, and online vs. offline sales channels. Additionally, by focusing on grilled fish as the core product, the company drives the sales of other local agricultural products, such as pairing Fuding betel nut taro with grilled fish to promote more local specialty products.
Minwei possesses core technological advantages. Chairman Fang explained that in seedling breeding, Minwei has mastered the “sea bass reproductive control and indoor artificial seedling breeding technology,” filling a gap in the national sea bass breeding industry. This technology is a core support for Minwei’s superior seed breeding and is currently the leading seedling technology in the industry, with an annual seedling output ranking first in the industry. In aquaculture, Minwei’s anti-wave deep-water cage farming technology uses a new type of floating rectangular intelligent farming cage system that can monitor the environment and automatically feed the fish. In processing, Minwei has developed 15 processing technologies, including those for fish jerky, fish floss, and ready-to-eat grilled fish, capable of processing over 20 types of products.
Envisioning the Future of Ready-to-Eat Meals and Preparing for Challenges
Discussing the future of the ready-to-eat meal industry, Chairman Fang stated that while the B-end market has matured, the C-end market is still in the exploratory stage. However, with the diversification of dishes, the convenience of purchasing channels, the development of cold chain logistics, and the increasing consumer awareness of ready-to-eat meals, the C-end is expected to experience significant growth.
Chairman Fang is optimistic about the development prospects of the aquatic ready-to-eat meal segment, particularly the market potential of dishes like pickled fish and grilled fish, which are expanding from chain restaurants to the B-end and from dining establishments to households. The B-end market has a large demand and meets the catering industry’s needs for cost reduction, efficiency, and standardization. Additionally, the share of group dining and rural chefs is increasing yearly, promoting the rapid development of the ready-to-eat meal market. The B-end and C-end markets must collaborate and drive each other forward to jointly create a bright future for the ready-to-eat meal industry.
Facing future market challenges, Chairman Fang mentioned that Minwei Foods will further strengthen market research, develop new ready-to-eat meal products through precise market positioning to meet the personalized needs of different consumers and consumption scenarios, and actively seek overseas distributors and retailers to establish partnerships. The company plans to establish localized sales and distribution networks in the future to deliver products directly to overseas customers. To address potential production capacity issues, Minwei will actively upgrade its equipment, enhance the intelligence and automation of its production facilities, further reserve factory space, and increase capacity to prepare for the expected boom and in-depth development of the ready-to-eat meal market.
YATSEN HOLDING’S THIRD-QUARTER REVENUE WAS 718.1 MILLION YUAN, DOWN 16.3% YEAR-ON-YEAR.
Yatsen E-commerce released its financial report for the third quarter ending September 30, 2023. The data shows that Yatsen E-commerce’s total net revenue was RMB 718.1 million, a year-on-year decrease of 16.3%. The net loss was RMB 197.9 million, narrowing by 6.1% year-on-year. On a non-GAAP basis, the net loss was RMB 130.2 million, expanding by 3.0% year-on-year. The gross profit was RMB 512.8 million, a year-on-year decrease of 13.3%. The gross margin was 71.4%, compared to 68.9% in the same period in 2022. The total operating expenses were RMB 744.3 million, a year-on-year decrease of 13.1%. Fulfillment expenses were RMB 56 million, compared to RMB 63.8 million in the same period in 2022. Sales and marketing expenses were RMB 511.7 million, compared to RMB 564.8 million in the same period in 2022. General and administrative expenses were RMB 151.8 million, compared to RMB 194.5 million in the same period in 2022. R&D expenses were RMB 24.7 million, compared to RMB 33.9 million in the same period in 2022. The operating loss was RMB 231.5 million, narrowing by 12.9% year-on-year. On a non-GAAP basis, the operating loss was RMB 164.6 million, expanding by 1.2% year-on-year.
Yatsen E-commerce’s founder, Chairman, and CEO, Huang Jinfeng, stated: “In the third quarter, the company’s three major skincare brands saw steady growth. Meanwhile, Yatsen’s flagship brand, Perfect Diary, achieved continued brand strength enhancement through the launch of a new visual identity and major new products. We are full of confidence in the future, and according to the company’s Q4 performance guidance, total revenue is expected to achieve year-on-year growth.”
According to the Enterprise Library of 100EC.CN, Guangzhou Yatsen E-commerce Co., Ltd. (hereinafter referred to as Yatsen E-commerce) was founded in 2016. In 2019, Yatsen E-commerce was recognized as a “Unicorn” innovative enterprise in Guangzhou, making it the only e-commerce unicorn on the list.
Apart from Yatsen E-commerce, other listed digital retail companies in China include:
1.Comprehensive E-commerce: Alibaba, JD.com, Pinduoduo, Vipshop, Suning.com, GOME Retail, All Things New, Secoo, Yunji;
2.Live-streaming E-commerce: Kuaishou, Yaowang Technology, Mogu, Oriental Selection, Jiao Ge Peng You;
3.Fresh Food E-commerce: Dingdong Maicai, Missfresh, Pagoda;
4.Auto E-commerce: Tuanche, Uxin;
5.Shopping Guide E-commerce: SMZDM (What Worth Buying), Fanli.com;
6.Installment E-commerce: Qudian, Lexin;
7.Retail E-commerce Service Providers: Youzan, Weimob, Yueshang Group, Guangyun Technology, Baozun E-commerce, Youquhui, Lovely Beauty Makeup, Ruoyuchen, Qingmu Holdings;
8.Vertical E-commerce: Babytree Group, Kutesmart, Wunong Net, Boqii Pet;
9.Brand E-commerce: Xiaomi Group, Bear Electric Appliances, Bestore, Three Squirrels, Yujiahui, Yatsen E-commerce, Rongmei Holdings, Nanjiren E-commerce.
CHANGFU DAIRY “TAKES THE EXAM IN BEIJING” AND SUCCESSFULLY BECOMES PART OF THE “DAIRY INDUSTRY FULL-CHAIN STANDARDIZATION PILOT BASE.”
The 8th International Symposium on “Dairy Nutrition and Milk Quality,” co-hosted by the Beijing Institute of Animal Science and Veterinary Medicine of the Chinese Academy of Agricultural Sciences, the Food and Nutrition Development Institute of the Ministry of Agriculture and Rural Affairs, the China Dairy Industry Association, the American Dairy Science Association, and the New Zealand Ministry for Primary Industries, was successfully held in Beijing from November 19-20, 2023.
More than 400 experts from universities, research institutes, enterprises, and industry organizations in countries and regions such as China, the United States, the United Kingdom, New Zealand, Denmark, Ireland, Canada, Bangladesh, Pakistan, Ethiopia, Zimbabwe, Cuba, Antigua and Barbuda, and Fiji attended the conference.
As one of the top 20 leading fresh milk enterprises (D20) in China’s dairy industry, Changfu Dairy was invited to participate in the conference. The company set up a dedicated booth and provided high-quality pasteurized fresh milk for domestic and international attendees to sample.
The theme of this year’s symposium was “Innovation Leading the High-Quality Development of the Dairy Industry.” The conference featured a series of discussions and exchanges on topics such as “Healthy Dairy Farming,” “Milk Quality,” and “Dairy Consumption,” focusing on theoretical research, technological innovation, and industry development experiences.
Thanks to its active exploration and innovative practices in full-chain standardization, Changfu Dairy was recognized by an expert panel organized by the Ministry of Agriculture and Rural Affairs as a “Dairy Industry Full-Chain Standardization Pilot Base.” This honor acknowledges the company’s outstanding contributions to promoting high-quality development in the dairy industry through its adherence to full-chain standardization and implementation of the National Premium Milk Program.
Full-chain standardization is a key driver of high-quality development. For many years, Changfu Dairy has upheld a spirit of innovation and persistence, rigorously focusing on high-quality milk sources, production processes, and cold chain transportation to establish a top-notch full-chain system. The company has been deeply committed to the National Premium Milk Program, helping to propel the dairy industry into a new era of high-quality development.
It is worth noting that as early as 2014, during the experimental phase of the National Premium Milk Program, Changfu voluntarily applied and was the first dairy company in China to initiate in-depth cooperation with the program team.
In February 2017, Changfu’s pasteurized fresh milk successfully passed the acceptance test for the National Premium Milk Program, meeting the national premium standards. The milk was recognized not only for its safety but also for its superior quality.
In September 2021, following several technical upgrades, the active nutritional indicators of Changfu’s pasteurized fresh milk reached new heights, placing it at the forefront of global standards. Changfu became the first and only dairy company in China to have all its pasteurized fresh milk products authorized to bear the “National Premium Milk Program” label.
Over the years, Changfu has invested billions of yuan in the pursuit of continuous high-quality development, becoming an important source of premium milk data in China and making significant contributions to the development of the national premium milk standard system. The company has been recognized as a “National Key Leading Enterprise in Agricultural Industrialization” and has been named one of China’s top 20 dairy companies for three consecutive years, reflecting its unwavering commitment to its original mission and purpose.
FOCUSING ON THE “HUNDRED-THOUSAND-TEN THOUSAND PROJECT” | FOUR COMPANIES IN QINGCHENG RECEIVE “QINGYUAN CHICKEN” GEOGRAPHICAL INDICATION PLAQUES
Recently, the “Qingyuan Chicken” Industry High-Quality Development Promotion Meeting and the “Qingyuan Chicken” Geographical Indication Special Mark Award Ceremony were held in Qingcheng District. Qingcheng District Vice Mayor Lei Huankun attended the ceremony and awarded plaques to four companies that were granted the right to use the “Qingyuan Chicken” Geographical Indication Special Mark.
A geographical indication is a commercial value mark that indicates the specific quality of a product is directly related to the unique natural or human factors of its place of origin. Currently, four companies in Qingcheng District have successfully applied for and been granted the right to use the “Qingyuan Chicken” Geographical Indication Special Mark, namely Guangdong Tian Nong Food Group Co., Ltd., Qingyuan Sanyuan Qingyuan Chicken Breeding Co., Ltd., Guangdong Tian Nong Ecological Food Co., Ltd., and Guangdong Dongfeng Agricultural Development Co., Ltd.
To ensure that Qingyuan chicken breeding companies meeting the application criteria successfully obtain authorization to use the mark, the Qingcheng District Market Supervision Bureau has implemented personalized “one-on-one” services, closely following the application process for the geographical indication mark. This includes conducting on-site inspections and issuing origin verification reports for applicant companies, as well as assisting them in coordinating with testing institutions to carry out quality inspections of Qingyuan chicken products. Additionally, the bureau has launched a special campaign to protect the “Qingyuan” geographical indication through “double random checks” and inter-departmental collaboration, strictly cracking down on unauthorized use of the special mark, similar marks, and any falsification, misuse, or improper printing of the special mark, thereby ensuring comprehensive protection of the “Qingyuan Chicken” geographical indication.
According to statistics from 2022, the total output value of the “Qingyuan Chicken” marked companies in Qingcheng District reached 3.015 billion yuan, a year-on-year increase of 130%. The total revenue of these companies amounted to 1.213 billion yuan, contributing to agricultural production growth and increased income for farmers. As one of the places of origin for Qingyuan Chicken, Qingcheng District has consistently adhered to its agricultural foundations, leveraged its resource endowment, and utilized its locational advantages. The district has thoroughly implemented the municipal government’s work plan for building a 10-billion-yuan Qingyuan Chicken industry, focusing on stable basic production, strengthening the seed industry foundation, emphasizing disease prevention and control, and promoting transformation and upgrading. These efforts have established a comprehensive development framework for the Qingyuan Chicken industry chain, integrating various development models such as seed breeding, technological R&D, deep processing, cold chain logistics, and brand sales, creating a favorable environment for the high-quality development of the Qingyuan Chicken industry.
To further leverage the role of geographical indications in empowering industrial development and enhance the “Qingyuan Chicken” brand as a city icon, Qingcheng District will continue to focus on the “Hundred-Thousand-Ten Thousand Project” to promote coordinated urban-rural regional development. The district plans to deepen the creation of a 10-billion-yuan Qingyuan Chicken industry by strengthening the protection of Qingyuan Chicken’s genetic resources, improving quality management, expanding deep processing of the industry, exploring the cultural significance of Qingyuan Chicken, and building the Qingyuan Chicken brand. These efforts will continue to advance the high-quality development of the Qingyuan Chicken industry.
HEMEI AGRICULTURE PLANS TO INVEST 10 MILLION YUAN TO ESTABLISH A WHOLLY-OWNED SUBSIDIARY, LONGZHOU HEMEI FOOD SUPPLY CHAIN CO., LTD., IN CHONGZUO CITY, GUANGXI PROVINCE.
According to a November 21 announcement on Wabei.com, Hemei Agriculture (833515) recently released a notice regarding its decision to establish a wholly-owned subsidiary in Chongzuo City, Guangxi Province, with an investment of 10 million yuan. This decision is based on the company’s overall future development strategy, aiming to implement its strategic plan, optimize resource allocation, and enhance the company’s comprehensive competitiveness and sustainable development capabilities. The subsidiary aims to strengthen long-term, stable regional partnerships with customer groups, and deeply explore market space and value potential.
Main Business: The subsidiary’s main business activities will include the production, sales, processing, transportation, and storage of agricultural products, as well as other related services; food sales (only pre-packaged food); wholesale and retail of edible agricultural products; acquisition of primary agricultural products; information consulting services (excluding licensed information consulting services); sales of agricultural, forestry, animal husbandry, sideline, and fishery products; sales of agricultural machinery; retail of hardware products, daily necessities, stationery, kitchenware, sanitary ware, and daily sundries; import and export of goods; catering management; supply chain management services; general goods warehousing services (excluding hazardous chemicals and other projects requiring special approval); licensed projects include food sales, urban distribution and transportation services, and road freight transportation.
Purpose of the Investment: The primary purpose of this investment is to further expand the company’s supply chain industry layout, optimize its strategic deployment, enhance its centralized procurement and management capabilities, increase profitability, and comprehensively improve the company’s overall competitiveness without altering its core business.
Risks Associated with the Investment: The investment decision is based on the company’s strategic goals and long-term interests and does not involve significant market, operational, or management risks. The company will improve its internal control systems, clarify its business strategies and risk controls, and establish a strong management team to ensure that there is no harm to the interests of the company or its shareholders.
Impact on Business and Finances: This investment will result in changes to the company’s consolidated financial statements and is expected to have a positive impact on the company’s future financial condition.
According to Wabei.com, Hemei Agriculture is a unique food distribution company focused on providing “one-stop cold chain logistics and distribution services for a full range of fresh agricultural and sideline products.” Its clients include, but are not limited to, educational institutions, military organizations, and public institutions.
Sinopharm Group and Roche Pharmaceuticals China Sign Strategic Cooperation Agreement
On November 6, during the 6th China International Import Expo (CIIE), Sinopharm Group and Roche Pharmaceuticals China held a strategic cooperation signing ceremony. Chen Zhanyu, Vice President of Sinopharm Group, and Ding Xia, Head of Multichannel Ecosystem Expansion at Roche Pharmaceuticals China, signed the agreement on behalf of both parties. Liu Yong, President and Executive Director of Sinopharm Group, Kong Xuedong, Chairman of the Global Procurement and Supply Chain Service Center of Sinopharm Group, Liu Tianyao, General Manager, and Vice Presidents Zhao Min and Xu Hai were present at the event. From Roche Pharmaceuticals China, participants included Bian Xin, President, Qian Wei, General Manager of the Oncology Division, Chen Yijuan, Vice President of the Specialty Medicines Division, Li Bin, Vice President of the Medical and Personalized Healthcare Division, and Ryan Harper, Vice President of Product Pipeline Strategy and Digital Innovation. They all witnessed this milestone moment.
Next year marks the 30th anniversary of Roche Pharmaceuticals China in the Chinese market. Roche Pharmaceuticals China and Sinopharm Group have always maintained a close partnership, building a deep cooperative friendship over the years. Through this strategic signing, Sinopharm Group and Roche Pharmaceuticals China will leverage their respective strengths to continue deepening cooperation across multiple fields, elevating their partnership to new heights.
Liu Yong, President and Executive Director of Sinopharm Group, expressed gratitude for Roche Pharmaceuticals China’s ongoing support and trust. He noted that through this strategic signing, Sinopharm Group and Roche Pharmaceuticals China will continue to deepen cooperation in various fields, jointly accelerating the market entry of new products and working together to create an innovative, collaborative, and diversified local healthcare ecosystem.
Bian Xin, President of Roche Pharmaceuticals China, remarked that Sinopharm Group, as a leading distributor and retailer of pharmaceuticals and medical devices in China, as well as a leading supply chain service provider, has always been an important partner for Roche Pharmaceuticals China. In recent years, Roche Pharmaceuticals China has focused on accelerating the introduction of multiple global innovative products and promoting their deep integration with the local ecosystem. Bian Xin emphasized that whether in product distribution, supply chain collaboration, hospital access, or out-of-hospital markets, Roche looks forward to comprehensive cooperation with Sinopharm Group in the future, continuously exploring new models and jointly expanding new channels.
The successful signing of this strategic cooperation agreement marks the beginning of a new chapter in the partnership between the two companies. Going forward, both parties will adhere to a “patient-centered” development philosophy, continue to deepen cooperation, share opportunities brought by the CIIE, and jointly promote the efficient implementation of innovative products across various disease areas. This collaboration aims to create a new ecosystem model for diagnosis and treatment, contribute to the realization of the “Healthy China 2030″ initiative, and provide more options for patients in need.
Establishing a Research Institute to Address the Challenge of Creating Blockbuster Products: Ziyan Foods Accelerates “Self-Revolution”
Food R&D is different from other fields and requires attention to detail. In recent years, research and development in the food industry has been given increasing importance.
On the morning of November 17, the inauguration ceremony of the Ziyan Food Innovation Research Institute was held in Guanyun County, Lianyungang.
As a well-known brand in the braised food industry and a player in a relatively mature sector, why did Ziyan Food establish its own Innovation Research Institute? Zhong Huaijun, the Director of the Ziyan Food Innovation Research Institute, stated, “As people’s living standards continue to improve, consumers are increasingly demanding higher food quality and experiences. Ziyan Food’s establishment of a research institute is based on these market demands and development trends.” Zhong Huaijun added that Ziyan Food will continue to explore and develop the healthy food industry, ensuring that future research not only focuses on taste and safety but also on health.
It is reported that the Ziyan Food Innovation Research Institute will undertake three core functions: launching more new products that align with market trends and consumer demands, ensuring high product quality and food safety, and rapidly converting research results into productivity.
At the event, a reporter from Blue Whale Finance noticed that the Ziyan Food Innovation Research Institute had planned several functional areas, including a corporate exhibition area, product tasting area, flavor technology research area, sensory evaluation area, and instrument analysis area. Ziyan Food has also optimized and upgraded its existing product R&D center in terms of both software and hardware, for instance, by purchasing a series of leading domestic and international food processing and testing equipment and bringing in professional flavor researchers and high-tech talent.
According to available information, Ziyan Food is a large-scale producer of braised food in China, focusing on the R&D, production, and sales of braised products. The company’s main products include “Husband and Wife Lung Slices,” “Baiwei Chicken,” and “Tengjiao Chicken,” which are made from poultry such as chicken, duck, beef, pork, as well as vegetables, seafood, and soy products. These products are primarily used as side dishes with meals, supplemented by casual consumption, with the main brand being “Ziyan.”
Despite having a diverse product line, the flagship product “Husband and Wife Lung Slices” remains a strong sales driver. According to Ziyan Food’s 2023 semi-annual report, fresh products contributed 86.08% of the company’s main business revenue, with the “star” product “Husband and Wife Lung Slices” generating sales of 543 million yuan, accounting for 31.59%.
“We have always been trying to create more star products like ‘Husband and Wife Lung Slices’ and ‘Tengjiao Chicken.’ For example, this year we launched products such as Refreshing Beef, Refreshing Pork Feet, Bobo Chicken Slices, and Crispy Shreds. But it’s actually very challenging to surpass these two products, because our customers usually think of Tengjiao Chicken and Husband and Wife Lung Slices first, and then buy some others. We’ve racked our brains trying to outdo ourselves, and often things don’t go as planned, but we must keep launching products with vitality,” Zhong Huaijun said. “I often say it’s like how WeChat surpassed QQ; can we create another one and revolutionize ourselves?”
It is reported that Ziyan Food has established long-term, stable partnerships with large suppliers like Wens Foodstuff Group, New Hope Group, and COFCO Group for the supply of key raw materials such as whole chickens, beef, and duck by-products. This allows the company to source fresh, high-quality ingredients from the origin and, relying on its five production bases, form an all-round supply chain system with the optimal cold chain delivery distance as the radiation radius, fast supply, and maximum freshness. Orders placed the previous day are produced the same day and delivered to stores on the same or the next day, ensuring the freshness of the products.
It is noteworthy that the upgrade of Ziyan Food’s supply chain has also optimized its cost side. Ziyan Food stated in its financial report that the prices of raw materials are close to the range of previous years, and the company has strengthened supply chain optimization, improved production processes, and upgraded technology, resulting in significant improvements in net profit.
According to Ziyan Food’s 2023 third-quarter report, the company achieved operating revenue of approximately 882 million yuan in the first three quarters. The company’s gross profit margin was 24.19%, up 6.69 percentage points year-on-year; the net profit margin was 12.06%, up 3.94 percentage points year-on-year. Looking at the single-quarter indicators, in the third quarter of 2023, the company’s gross profit margin was 29.17%, up 11.07 percentage points year-on-year and 6.18 percentage points quarter-on-quarter; the net profit margin was 15.15%, up 5.38 percentage points year-on-year and 1.67 percentage points quarter-on-quarter.
Moreover, expanding its market segment is one of Ziyan Food’s revenue-increasing strategies. Following its strategic investment in Lao Han Bian Chicken in June, Ziyan Food made another move in September by strategically investing in Jing Cui Xiang. Ziyan Food Chairman Ge Wuchao stated that steadfastness and diversified exploration are two inseparable aspects of enterprise development. Steadfastness is the foundation of the company’s development; since the company’s establishment, we have been deeply engaged in the side dish braised food market, committed to consolidating our leading position in the industry. However, with changes in the market environment and the diversification of consumer needs, we also see the necessity of exploring new opportunities for development on the existing foundation. The company continues to explore diversified development paths by launching several sub-brands, such as “Feng Si Niang Qiaojiao Beef,” “Shaguo Zhuangyuan,” and “Jiaoyan Jiaoyu,” covering categories like casual dining and casual braised food, as well as strategic partnerships with food brands such as Lao Han Bian Chicken and Jing Cui Xiang. This strategy opens up broader growth opportunities for the company. Through diversified strategic layout, the company can quickly respond to market changes, enhance overall competitiveness, and further consolidate its industry-leading position to achieve long-term development.
On the other hand, with the strong momentum of the restaurant industry’s recovery, competition has also become more intense. Ge Wuchao admitted that after the pandemic, consumer demand has changed, with increased focus on food safety and health. Additionally, as consumers’ purchasing power recovers, it may attract more competitors into the market. Therefore, Ziyan Food needs to strengthen brand building and marketing efforts to enhance brand influence and market share to maintain its industry-leading position. Further strengthening product R&D and quality control to provide safer, healthier products that better meet consumer needs is essential.
