HOW TO USE A COOLER ICE PACK

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HOW TO USE A COOLER ICE PACK

A cooler ice pack is a convenient tool for keeping food, medicine, and other items at the proper temperature. Proper use of ice packs is essential. Here are detailed instructions:

Preparing the Ice Pack

Choose the Right Ice Pack: Ensure the ice pack size and type match the items you need to keep cool. Some are suitable for daily use, like small portable cooler packs, while others are designed for larger transport coolers.
Freeze the Ice Pack: Place the ice pack in the freezer for at least 24 hours before use to ensure it is fully frozen. Larger ice packs or gel packs may require more time.

Using the Ice Pack

Pre-Cool the Container: If possible, pre-cool the container (like a cooler) before use. You can do this by placing the empty container in the freezer for a few hours or by placing several ice packs inside to cool it down.
Pack the Items: Cool the items you need to refrigerate as much as possible at room temperature first. For example, transfer frozen food from the shopping bag directly into the cooler.
Place the Ice Packs: Distribute the ice packs evenly at the bottom, sides, and top of the container. Ensure the ice packs make good contact with the items but avoid crushing delicate items.
Seal the Container: Make sure the cooler or container is sealed as tightly as possible to reduce air circulation and maintain a low-temperature environment.

Care During Use

Check the Ice Pack: Regularly inspect the ice pack for any cracks or leaks. If damaged, replace it immediately to prevent gel or liquid from leaking.
Avoid Direct Contact with Food: If the ice pack is not food-grade, avoid direct contact with food. Use plastic bags or food wrap to separate the food from the ice pack.

Cleaning and Storing the Ice Pack

Clean the Ice Pack: After use, if the ice pack is dirty, clean it with warm water and a small amount of soap, then rinse it thoroughly with clean water. Allow it to air dry in a cool, shaded area.
Proper Storage: After cleaning and drying, place the ice pack back in the freezer, ready for the next use. Avoid placing heavy objects on the ice pack to prevent damage.

By using cooler ice packs correctly, you can extend the shelf life of food and medicine, enjoy cold drinks and chilled food during outdoor activities, and enhance your overall quality of life.

Chilled meat products have become an essential part of the diet in China, favored for their tender texture, good taste, high nutritional value, and safety. From 2015 to 2023, the revenue from meat in China’s fresh cold chain logistics industry has shown a year-on-year increase, with a compound annual growth rate of 16.9%, consistently holding a leading position in total revenue. According to China’s Food Safety Law, strict control is applied to 127 standards for meat, with cold chain transportation playing a crucial role.

I. Regulations and Precautions for Meat Transportation

To ensure the quality and safety of meat and meat products during commercial logistics, the General Administration of Quality Supervision, Inspection, and Quarantine of China, along with the National Standardization Management Committee, issued the national standard GB/T 21735-2008 “Logistics Specifications for Meat and Meat Products” on May 7, 2008, which has been in effect since December 1, 2008. This standard outlines the logistics process for low-temperature meat products, including storage, transportation, and retail, emphasizing the importance of maintaining proper temperatures to ensure meat quality. Compliance with these standards highlights the importance of an appropriate transportation plan.

II. Challenges in Meat Transportation

The main challenges in meat transportation are the tight timeframes and difficulty in temperature control. There are two types of meat commonly sold: “fresh meat,” which is slaughtered and sold quickly, and “chilled meat,” which is usually found in supermarkets after being acidified and refrigerated. Common packaging methods include oxygen-permeable tray packaging, vacuum packaging, and modified atmosphere packaging, all of which require strict temperature control during transportation. Long-distance cold chain transportation, both domestically and internationally, remains in an exploratory phase, with the challenge of maintaining the cargo hold temperature between 0-5℃ for long periods requiring ongoing technological efforts. Thus, most meat products, whether imported or sold over long distances through e-commerce platforms, are typically transported frozen at around -18℃.

III. How to Choose the Right Meat Transportation Plan

Meat products, after slaughtering, acid removal, and cutting, need precise temperature control during pre-cooling, storage, and logistics. The common practice is to check if the core temperature of the slower-cooling hindquarters reaches 0-4℃ as a criterion for release, ensuring high quality upon reaching wholesalers and retailers. Post-production, refrigerated transport vehicles and insulated packaging materials must maintain a constant low temperature, minimizing temperature fluctuations. Additionally, temperature monitoring equipment and systems are essential to track temperature changes during transport, allowing for timely interventions when necessary.

The critical challenge in the logistics of meat products, from production to retail to the consumer, is temperature control. So how can this process be effectively managed?

Packaging As mentioned, the three common packaging methods for meat products vary in cost and are suitable for different scenarios. The basic principle is to maintain a stable low-temperature environment using highly insulative materials like cooler boxes, cooler bags, ice packs, ice boxes, foam boxes, and dry ice. These materials can be combined or used individually, depending on transport distance and time, to ensure that meat products remain within legally required storage temperatures
throughout the entire logistics process, guaranteeing product quality in line with national food safety standards.
Transportation Methods Common cold chain transportation methods include refrigerated transport, air freight, and sea freight. Refrigerated trucks, equipped with advanced refrigeration equipment and temperature monitoring systems, are the primary means for transporting meat and seafood products, maintaining a constant low temperature throughout the journey. For long-distance transport, especially internationally, air freight is an efficient choice, shortening transit times and reducing the risk of temperature fluctuations, though it is more costly. Sea freight containers are suitable for large-scale import and export over long distances. Regardless of the cold chain transportation method chosen, meticulous temperature control measures and planning are essential, necessitating the expertise of a logistics provider who can develop a comprehensive transportation plan for you.Additionally, during the cold chain logistics process from the slaughterhouse to distribution centers and fresh food supermarkets, the distance between distribution centers and supermarkets is often short. In such cases, using refrigerated trucks may be unnecessarily costly, so various insulation materials such as cooler boxes, cooler bags, ice packs, ice boxes, and foam boxes may be more appropriate. A logistics expert who can tailor a low-cost cold chain packaging and transportation solution to your needs will be invaluable.

IV. How Huizhou Does It

If you partner with us, Huizhou Industrial will provide you with a custom cold chain packaging and transportation solution for your meat products, ensuring that your products maintain the highest quality and safety throughout the transportation process until they reach your customers. Here’s our recommended approach:

4.1 Pre-Treatment and Packaging

Vacuum Packaging: For fresh meat, vacuum packaging effectively isolates the product from air, reducing bacterial growth and keeping the meat fresh.
Insulation Materials: To maintain a low-temperature environment, using cooler boxes with ice packs or ice boxes is common practice. Considering cost, foam boxes with ice packs or ice boxes can also be used, or our cooler bags with ice packs or ice boxes. Our Huizhou ice packs come in refrigerated and frozen varieties, with different insulation durations. They are available in various materials, including non-woven fabric that prevents condensation from contaminating the product’s packaging. The ice packs and boxes come in different sizes to suit the characteristics, size, and space of your product, ensuring its quality and safety. We also offer tray covers that wrap the entire meat product rack more efficiently than other insulation methods. Suitable combinations can ensure that your meat products maintain a temperature of 0-4°C during long-distance transport. Moreover, all the insulation materials mentioned are available in reusable types, offering environmental benefits, durability, cost-effectiveness, and temperature control.

4.2 Temperature Control

Refrigerated Transport: For long-distance transport, we use refrigerated trucks with temperature control systems to ensure stable temperatures within the appropriate range. For short-distance transport, regular trucks may be an option if the product packaging is well-insulated, ensuring the quality of the meat products.
Temperature Monitoring: We install high-precision online thermometers in each cooler box transporting meat, continuously monitoring and recording temperature changes during transit to ensure the temperature stays within the set range and complies with meat food safety standards.

4.3 Rapid Transportation

We will select the shortest route and fastest transport method to reduce transit time, thereby lowering the risk of spoilage.
Ensure that all packaging materials meet food safety standards, and thoroughly clean and sanitize vehicles and packaging before and after transport to maintain compliance and hygiene.
Implement a tracking system for the cargo, allowing full traceability from origin to destination, with the ability to quickly identify and address any issues.

4.4 Customized Delivery Solutions

We will provide personalized delivery services based on your specific needs (such as delivery frequency, quantity, and special requirements), ensuring service quality.
Develop contingency plans to swiftly adjust in case of transport delays or equipment failures, ensuring meat quality is not compromised.
Provide food safety training for transport and delivery personnel to ensure they understand the correct procedures and hygiene standards.

By adopting the measures outlined above, Huizhou can greatly enhance the freshness of your meat products during transport, ensuring the final quality and taste meet your customers’ health and safety needs. Our cold chain packaging products are used in major fresh food supermarkets across China and are customized for leading logistics providers and pharmaceutical manufacturers. We believe your discerning choice will be the same as theirs: choose Huizhou to make your products stand out in the industry.

Weizhixiang Leads Industry with Probiotic Preservation

On October 18, Weizhixiang held an opening ceremony for its Suzhou Industrial Base. At the ceremony, Weizhixiang announced the launch of a project to produce 5,000 tons of food-grade fermented bacterial liquid and 50,000 tons of fermented prepared foods annually. Weizhixiang is the first company in the industry to adopt the new probiotic preservation technology, marking the beginning of a new chapter and signaling a transformation in the semi-prepared food industry.

On the same day, under the guidance of the China Institute of Food Science and Technology and with support from the Institute of Food Biotechnology of Jiangsu Industrial Technology Research Institute, Weizhixiang hosted the China Future Food Nutrition and Health Development Forum. At the forum, the Weizhixiang Food Nutrition and Health Fund was established to encourage universities and research institutions to conduct more research and innovation in food nutrition and health, thereby promoting the better development of the semi-prepared food industry in the future.

Forum Establishes Weizhixiang Food Nutrition and Health Fund

“Using probiotic preservation technology can effectively inhibit the production of harmful bacteria and promote the growth of beneficial bacteria, providing an excellent taste experience while ensuring nutrition and health. We hope that through the application, research, and practice of this new technology, we can drive the semi-prepared food industry towards a healthier, more nutritious, and delicious direction,” said Academician Shan Yang, an expert in food engineering from the Chinese Academy of Engineering, at the opening ceremony. He noted that with continuous technological progress, the semi-prepared food industry is also facing new opportunities and challenges, with technological innovation becoming an important driving force for high-quality industry development.

Meng Suhe, Honorary Chairman of the China Institute of Food Science and Technology, expressed her delight at the forum with two “firsts.” “This is the first time that probiotic fermented liquid has been applied to the preservation technology of meat products and semi-prepared foods on an industrial scale. This is also the first time that China has broken Japan’s technological monopoly in this field, a significant leap!” She highly praised the innovation and application of this new health and nutrition technology, calling it a significant enhancement of Weizhixiang’s core competitiveness after 13 years of development.

Academician Shan Yang mentioned that the safety, nutrition, and health of semi-prepared foods are core issues for industry development. The industry usually employs liquid nitrogen quick-freezing technology to preserve freshness, quickly passing pre-processed products through their maximum ice crystal area at temperatures below -35°C, reducing the loss of nutritional components. Probiotics, being a natural and safe preservative, with lactic acid bacteria as an important component, can inhibit the growth of harmful bacteria and promote the production of phenols, amino acids, peptides, and other substances in food raw materials, ensuring the nutritional content and taste of food while benefiting human health. Probiotics have profound significance for the healthy development of the food processing industry.

Academician Chen Wei, President of Jiangnan University, discussed the importance of probiotics, emphasizing their close relationship with the gut, which is a crucial digestive organ, responsible for absorbing 99% of the food consumed. The gut is also the largest immune organ in the body, with about 70% of the immune function deriving from it. Additionally, the gut has a relatively independent nervous system, known as the body’s second brain. The gut microbiota is vital for maintaining health and preventing diseases. Probiotics, defined as live microorganisms, mainly function to regulate gut microbiota balance, stimulate the immune system, and affect the digestive, immune, and nervous systems.

Research conducted by the Institute of Food Biotechnology (Yangzhou) of the Jiangsu Industrial Technology Research Institute found that lactic acid bacteria fermented liquid can enrich the flavor of beef products, inhibit the growth of spoilage microorganisms, delay the decomposition of fats and proteins, and improve the texture and taste of beef.

In his speech, Weizhixiang Chairman Xia Jing emphasized the importance of embracing a diversified food supply system and the potential of agricultural equipment facilities. He reiterated Weizhixiang’s mission to provide excellent products for customers and contribute to societal development. Weizhixiang has always pursued high-quality raw materials to ensure the best nutrition and taste for consumers. To this end, they have developed a procurement and evaluation system for raw materials, incorporated fermented bacterial liquid technology into marination processes, and established comprehensive quality inspection standards. They also possess low-temperature storage equipment and independent cold chain transportation logistics, ensuring products remain in a low-temperature environment throughout storage, dispatch, and transport.

As Xia Jing pointed out, semi-prepared food is far more than just simple washing and cutting; it involves comprehensive food and culinary knowledge supported by advanced technology.

With the opening of Weizhixiang Industrial Base, the project to produce 5,000 tons of food-grade fermented bacterial liquid and 50,000 tons of fermented prepared foods annually will gradually reach full production capacity. This will effectively meet market demand and enhance the company’s industry competitiveness. The use of food-grade fermented bacterial liquid aligns with consumers’ increasing demand for higher product quality and supports future sustainable development.

Auntie Shanghai Plans HKEX Listing by Year – end, with Over 5,000 Stores

Recently, Shanghai Auntie plans to list on the Hong Kong Stock Exchange and will submit its prospectus by the end of this year, with CITIC Securities and Haitong International jointly advancing the plan.

Founded in 2013, Shanghai Auntie specializes in fresh fruit tea, with Shan Weijun serving as the Chairman. As early as April this year, Shanghai Auntie announced its ambitious goal of opening 10,000 stores: adding 3,000 new stores in 2023, bringing the total number of operational stores to over 8,000, with signed contracts for over 10,000 stores. As of February 2023, Shanghai Auntie Fresh Fruit Tea has opened more than 5,000 stores in over 200 cities nationwide, selling over 350 million cups throughout 2022.

In terms of the supply chain, Shanghai Auntie Fresh Fruit Tea has established 8 major warehousing and logistics bases, 6 large fresh fruit cold chain warehouses, 22 cold chain front warehouses, and 4 national equipment warehouses, achieving nearly 100% cold chain coverage nationwide. Downstream in the supply chain, Shanghai Auntie efficiently manages the QSC (Quality, Service, Cleanliness), standard operations, and service experience of each store through an online and offline operational model.

Firm Rejects SF Express Stake, Aims for Main Board IPO with 600M Revenue, 6B Valuation

Shanghai Shengsheng Pharmaceutical Cold Chain Technology Co., Ltd. (hereinafter referred to as “Shanghai Shengsheng”) is a professional cold chain service provider for biopharmaceuticals and a pioneer in China’s biopharmaceutical cold chain service industry. Since its establishment, the company has been focusing on providing full-chain integrated cold chain services for customers in drug research and development, life sciences, biotechnology, and commercial finished pharmaceuticals. With over a decade of professional experience and technical accumulation, Shanghai Shengsheng continuously innovates, leading and shaping the industry’s practice models and service standards.

On June 30th of this year, Shanghai Shengsheng submitted its listing materials and received acceptance, aiming for an IPO on the main board of the Shanghai Stock Exchange. On July 28th, it received the first round of inquiries, but as of now, the company has not yet responded. The company’s listing sponsor is China International Capital Corporation (CICC).

On September 30, 2023, due to the financial information recorded in the application documents for issuance and listing having expired, supplementary submissions were required. According to Article 60 of the Shanghai Stock Exchange Stock Issuance and Listing Review Rules, the review of Shanghai Shengsheng’s issuance and listing has been suspended.

According to the data in the prospectus, Shanghai Shengsheng’s revenue in 2022 was 630 million yuan. The company plans to raise 900 million yuan this time, with an estimated market value of about 6 billion yuan after listing.

Biopharmaceutical cold chain service refers to the full-chain cold chain solutions provided for the temperature safety of biopharmaceutical products during research, production, and circulation, based on temperature control technology and professional operating schemes.

With self-developed and produced VIP insulation boxes, PCM ice packs, and other cold chain equipment, combined with professional refrigerated trucks and liquid nitrogen tanks, Shanghai Shengsheng provides safe, professional, and efficient door-to-door cold chain services for various biopharmaceutical products, including clinical trial medicines, biological samples, medical devices, and commercial finished pharmaceuticals. Based on the long-term cooperative relationships established with clients and a deep understanding of the supply chain needs for innovative drug research, the company further offers services such as temperature-controlled storage management, labeling and secondary packaging, recovery and destruction of clinical trial medicines and biological samples, and temperature-controlled storage management of biological samples throughout the innovative drug development lifecycle, covering pharmaceutical research, preclinical research, and clinical research.

Headquartered in Shanghai, Shanghai Shengsheng has over 40 regional cold chain operation centers in cities such as Beijing and Guangzhou, with a service network covering 99% of prefecture-level cities nationwide. Additionally, the company has three overseas subsidiaries in the United States, Belgium, and Australia, and its partner resources cover more than 50 countries worldwide, supporting the globalization of Chinese pharmaceutical enterprises.

The company has obtained WHO-standard GDP, GMP certifications, and ISO9001 quality system certification. With extensive practical experience, a comprehensive service network, professional cold chain equipment, intelligent information systems, and a strict quality control system, the company has built a professional biopharmaceutical cold chain service capability, receiving high recognition from over 7,000 clients in the biopharmaceutical industry, including long-term partnerships with renowned companies such as Hengrui Group, Fosun Group, Chia Tai Tianqing, Junshi Group, WuXi AppTec, and Kingmed Diagnostics.

Before this issuance, the total share capital was 340 million shares, with this issuance not exceeding 60.01 million shares, accounting for no less than 15% of the total share capital after issuance.

As of the date of signing this prospectus, Ju Jibing directly holds 67.128893 million shares, accounting for 19.7438% of the company’s total shares, making him the controlling shareholder of the company.

Ju Jibing and Xiao Zhongmei jointly and indirectly control 42.6249% of the shares, making them the actual controllers of the issuer.

Many of the executives at Shengsheng Logistics are relatives of Ju Jibing. The prospectus shows that Ju Jibing’s wife, Xiao Zhongmei, serves as the deputy director of the settlement department; Xiao Zhongmei’s brother, Xiao Zhonghai, serves as the deputy director of sales; and Xiao Zhongmei’s sister-in-law, Pan Xiaxuan, serves as the senior quality manager.

As of the date of signing this prospectus, the company’s directors, supervisors, senior management personnel, and their immediate family members indirectly hold shares in the company as follows:

It is worth noting that Shanghai Shengsheng Logistics boasts a prestigious lineup of shareholders in both the pharmaceutical and logistics industries.

Among them, Hillhouse Capital and Legend Capital are top-tier biopharmaceutical investment institutions, while Zhongding Capital and Deppon Ventures are known as the “Kings of Domestic Logistics Investment” and the wholly-owned investment platform of Deppon Logistics, respectively. Junding Xieli represents state-owned shareholders.

It is understood that before its financing in 2018, Shengsheng Cold Chain had contact with the strategic investment department of SF Express, which wanted to collaborate with Shengsheng Cold Chain through a combination of logistics business and capital investment. However, Shengsheng Cold Chain chose to forgo this opportunity, opting for pure capital financing instead to ensure its future development independence.

Shanghai Shengsheng plans to raise approximately 900 million yuan this time, to be invested in the headquarters R&D base and R&D center construction project, the biopharmaceutical cold chain service capability upgrade project, the intelligent information system R&D construction project, and the working capital supplement project.

During the reporting period, Shanghai Shengsheng achieved revenues of 269 million yuan, 525 million yuan, and 634 million yuan, with net profits attributable to the parent company after deducting non-recurring gains and losses of 45.7688 million yuan, 73.7676 million yuan, and 77.3619 million yuan, respectively.

According to the “Shanghai Shengsheng Pharmaceutical Cold Chain Technology Co., Ltd. Initial Public Offering and Listing on the Main Board Application Report,” the issuer has chosen the specific listing standards stipulated in item (1) of Article 3.1.2 of the Shanghai Stock Exchange Stock Listing Rules, namely, “(1) The net profit in the most recent three years is positive, and the cumulative net profit in the most recent three years is not less than 150 million yuan, the net profit in the most recent year is not less than 60 million yuan, and the cumulative net cash flow from operating activities in the most recent three years is not less than 100 million yuan, or the cumulative operating income in the most recent three years is not less than 1 billion yuan.”

1. Divergence Between Revenue and Net Profit Changes, Continuous Decline in Gross Profit Margin

The prospectus shows that from 2020 to 2022, the company’s revenue was 269 million yuan, 525 million yuan, and 634 million yuan, respectively, with revenue growth rates of 95.23% and 20.92% in 2021 and 2022. During the same period, net profits were 49.6911 million yuan, 86.4515 million yuan, and 78.6582 million yuan, with year-on-year growth rates of 73.98% and -9.01% in 2021 and 2022, respectively.

Regarding the decline in net profit in 2022, Shanghai Shengsheng explained that in 2021, there was an investment income of 13.0681 million yuan from the disposal of Taikun Pharmaceutical equity. It should be noted that there was a divergence between changes in revenue and net profit. During the reporting period, revenue increased by 20.92% year-on-year, while net profit decreased by 9.01% year-on-year.

The prospectus shows that from 2020 to 2022, the company’s main business gross profit margins were 35.24%, 29.08%, and 27.95%, respectively. By 2022, the gross profit margin continued to decline, with a year-on-year decrease of 1.13%, and a decrease of 7.29% compared to 2020.

Specifically, the gross profit margins for the core business of innovative drug research and development and life sciences cold chain services were 37.71%, 33.75%, and 31.93%, respectively. The company stated that the reasons for the year-on-year decline were mainly: (i) increased investment in equipment and facilities such as vehicles, cold storage, and VIP insulation boxes in recent years, leading to higher fixed asset depreciation costs; (ii) in 2022, due to external environmental impacts, the growth rate of income slowed down, and factors such as emergency material procurement and logistics disruptions led to increased operating costs.

Notably, the gross profit margins for international pharmaceutical cold chain services were 22.85%, 21.60%, and 11.32%, respectively, with a significant decline of 10.28% in 2022. The year-on-year decline was mainly due to: (i) efforts to further enhance brand awareness in this segment and strengthen penetration into the mid-to-low-end market; (ii) high initial costs for Medilange, acquired in 2020, and YanJia Cold Chain, established in the second half of 2021.

During the reporting period, the gross profit margins for international pharmaceutical cold chain services were 22.85%, 21.60%, and 11.32%, respectively, with a slight decline in 2021 and a significant decline in 2022. The main reasons were: (i) the international pharmaceutical cold chain services were still in the investment and business expansion stages, with increased expenses for labor, venues, etc. In 2022, the establishment of Shengsheng International further increased investment in this segment; (ii) due to external environmental impacts, rising transportation agency fees led to increased operating costs.

During the reporting period, the gross profit margins for cell therapy cold chain services were 29.11%, 34.47%, and 33.65%, respectively, showing some fluctuations. The gross profit margin increased in 2021 compared to 2020, mainly because 2020 was still in the early stage of new business development, and with the rapid business growth in 2021, economies of scale were gradually realized. The gross profit margin slightly decreased in 2022 compared to 2021, mainly due to external environmental impacts, slower revenue growth, and increased operating costs.

During the reporting period, the gross profit margins for new materials and cold chain equipment sales were 15.02%, 11.60%, and 23.99%, respectively. The gross profit margin decreased in 2021 and rebounded in 2022, mainly because in 2021, the gross profit margin for vacuum insulation panel sales to overseas customers was relatively low and accounted for a large proportion of revenue, lowering the overall gross profit. In 2022, with reduced business cooperation with this customer, the gross profit margin rebounded.

Compared to peers engaged in SMO business and CRO services, such as Prevalence and Northreg, the company’s main business gross profit margin in 2020 was higher than the average, while in 2021 and 2022, it was lower than the average.

Shanghai Shengsheng stated that if future market demand in the biopharmaceutical industry declines or strong competitors emerge, intensifying industry competition, or if the company’s future sales prices decrease and costs rise, this could lead to a decline in gross profit margin, thereby affecting profitability.

2. Slowdown in Order Growth

During the reporting period, Shanghai Shengsheng’s main business includes five segments: innovative drug research and development and life sciences cold chain services, commercial circulation cold chain logistics for pharmaceuticals and medical devices, international pharmaceutical cold chain services, cell therapy cold chain services, and new materials and cold chain equipment sales. Among these, innovative drug research and development and life sciences cold chain services are the core businesses, with revenues of 211.9386 million yuan, 344.8025 million yuan, and 441.5211 million yuan, accounting for 79.01%, 65.77%, and 69.64% of total revenue, respectively, with a proportion generally exceeding 70%.

The second-largest business segment, commercial circulation cold chain logistics for pharmaceuticals and medical devices, accounted for less than 15% of total revenue, and the remaining three segments accounted for even smaller proportions, indicating a certain dependence on innovative drug research and development and life sciences cold chain services.

For cold chain logistics companies, the volume of logistics orders is an important indicator. Shanghai Shengsheng stated that changes in this indicator have a strong predictive effect on performance. During the reporting period, the company’s order volumes were 361,900 orders, 601,200 orders, and 662,200 orders, respectively, showing a growth trend. However, the growth rates of 66.13% and 10.14% in 2021 and 2022, respectively, indicate a significant slowdown, which is a worrying signal for Shanghai Shengsheng.

3. Risks of Leasing Defects, Operational Qualification Renewals, and Traffic Violations

As of the end of the reporting period, the company and its subsidiaries used a total of 6,152.57 square meters of leased operating or office space, accounting for 7.68% of the company’s total operating or office space in China. These properties had issues such as lack of property ownership certificates, being located on collective land, or allocated land. If these properties are deemed illegal constructions and require demolition, or if there are disputes over property ownership between landlords and other parties, the company or its subsidiaries may not be able to use these properties normally, posing a relocation risk.

The company’s provision of biopharmaceutical cold chain services involves multiple steps requiring operational qualifications, including customs registration certificates, medical device business licenses or filings, and road transportation business licenses. These qualifications need to be renewed or updated periodically. If the company fails to obtain or renew these qualifications, it may face certain legal risks.

As of the end of the reporting period, the company had 324 self-owned vehicles, with traffic violations and penalties for reasons such as passenger vehicles carrying goods and violations of traffic restrictions amounting to 314,100 yuan, 395,700 yuan, and 510,600 yuan in each reporting period. With the increase in the number of vehicles and potential expansion of traffic restrictions in major cities, traffic violation-related expenses may increase, adversely affecting the company’s operations.

4. Risks of Fundraising Project Implementation and Increased Fixed Asset Depreciation

The company plans to use the funds raised for the “Headquarters R&D Base and R&D Center Construction Project,” “Biopharmaceutical Cold Chain Service Capability Upgrade Project,” “Intelligent Information System R&D Construction Project,” and “Supplementary Working Capital Project.” These investments revolve around the company’s main business. Although the company has conducted thorough feasibility studies and formulated specific countermeasures for each stage of the projects, issues such as delayed fund allocation and project execution may still arise. Upon project completion, changes in policy environments, customer demands, and market conditions may hinder smooth implementation, adversely affecting the project’s actual returns and the company’s performance. As of the signing date of this prospectus, the company has signed an “Investment Agreement” for the land needed for the “Headquarters R&D Base and Innovation Drug Clinical Supply Chain Asia Center Project (tentative name)” in Minhang District, Huacao Town, with the Minhang District Nanhongqiao Management Committee Office and Huacao Town People’s Government. The company has obtained a “Project Review Opinion” (2022-006) from the Minhang District Economic Committee and an “Explanation on the Land Use of Shengsheng Cold Chain Fundraising Project” from the Minhang District Nanhongqiao Management Committee Office, but has not yet obtained land use rights. Failure to obtain the corresponding land use rights may hinder the smooth implementation of the fundraising projects.

Among the fundraising projects, the “Headquarters R&D Base and R&D Center Construction Project,” “Biopharmaceutical Cold Chain Service Capability Upgrade Project,” and “Intelligent Information System R&D Construction Project” have a combined planned investment of 1.001 billion yuan, with an estimated new investment of approximately 764 million yuan in fixed assets such as equipment, buildings, and cold storage. Upon completion, the substantial increase in fixed assets and depreciation expenses may not be offset by immediate revenue gains, posing a risk of profit decline.

CFLP: Accelerating International Logistics Supply Chain Build, Improving Operations

China Federation of Logistics & Purchasing: Construction of the International Logistics Supply Chain System is Accelerating, and International Logistics Operations Continue to Improve

The China Federation of Logistics & Purchasing announced at the “Khorgos International Logistics and Supply Chain Summit Forum” that the development of the international logistics supply chain system is gaining momentum. National plans, including the “14th Five-Year Plan for Modern Logistics Development” and others, have outlined specific goals for advancing the international logistics supply chain. Key logistics enterprises are expanding their networks, and initiatives like the “Two Belts and Ten Corridors” are advancing steadily. National logistics hubs and cold chain logistics bases are growing rapidly.

Foreign trade shipping, China-Europe freight trains, and the new land-sea corridor are seeing improved operations. From January to August, national ports handled 3.34 billion tons of foreign trade cargo, up 9.7% year-on-year, and air transport recorded a 4.9% increase. China-Europe freight trains transported 1.262 million TEUs, a 23% increase. Key land ports like Khorgos saw an 89.1% growth in cargo volume.

R-C (3)

Currently, China has 125 national logistics hubs, 66 national cold chain logistics bases, and more than 2,500 large-scale logistics parks. President He Liming emphasized leveraging the strong domestic market and logistics network to strengthen international logistics hubs, improve connectivity with overseas markets, and optimize the reserve structure of strategic resources. This approach aims to bolster China’s supply chain security and promote the global expansion of domestic products.

YANGZHOU UNIVERSITY AND SUZHOU CAIYUANZI COLLABORATE TO DEVELOP BEGGAR’S CHICKEN

The Tourism and Culinary Institute of Yangzhou University and Suzhou Caiyuanzi Network Technology Co., Ltd. recently held a strategic cooperation signing ceremony in Yangzhou, Jiangsu Province. The two parties will collaborate on research and development in areas such as alternative packaging materials for Beggar’s Chicken, ingredient combinations for its stuffing, and ambient temperature preservation technology for Beggar’s Chicken, aiming to enhance the quality and taste of this traditional delicacy.

The signing ceremony was attended by Xie Xiaoqing, Party Secretary of the Tourism and Culinary Institute of Yangzhou University, Dean Hou Bing, and Xu Yongqing, Chairman of Suzhou Caiyuanzi Network Technology Co., Ltd., among other guests. Xu Yongqing, a recognized inheritor of the Lu Garden Beggar’s Chicken culinary technique, was also appointed as an adjunct professor at the Tourism and Culinary Institute of Yangzhou University.

After the signing ceremony, Xu Yongqing visited the E308 laboratory in the Culinary Department of the Tourism and Culinary Institute at Yangzhou University’s Yangzijiang Campus. There, he taught students of the 2023 Huaiyang Cuisine Traditional Culinary Skills Training Class and demonstrated the making of the Lu Garden Royal Beggar’s Chicken.

Lu Garden Royal Beggar’s Chicken is a traditional dish using Lu Garden chicken as the main ingredient. Its unique preparation involves wrapping and slow cooking. This dish won the Silver Award at the First International Food Culture Expo during the 2023 International Tea Day event, and Xu Yongqing was awarded the title of “International Chinese Culinary Master.”

Suzhou Caiyuanzi Network Technology Co., Ltd. is a modern enterprise known for producing the well-known Zhangjiagang brand “Lu Garden Royal Beggar’s Chicken” and for its cold chain transportation and distribution of pork and quality agricultural products. The company’s sales strategy combines online and offline methods, with physical stores and online promotion through platforms like Douyin and Meituan. They have also established an independent live streaming sales team for promotion.

This cooperation will inject new vitality into the inheritance and development of Lu Garden Beggar’s Chicken. Through joint research and development, the partnership aims to allow more consumers to taste and appreciate the unique charm of this traditional delicacy.

THE PRE-MADE DISH “JUXIAN FLAVOR” SPREADS ITS AROMA WORLDWIDE.

“We are developing ‘Eight Dishes in a Quarter,’ a pre-made meal that serves eight dishes in 15 minutes, truly embodying ‘nutritious, delicious, and affordable’,” said Sun Chunlu, General Manager of Shandong Herun Pre-made Food Group Co., Ltd., with great confidence.

A small dish holds infinite business opportunities. The No. 1 Central Document proposed to “cultivate and develop the pre-made food industry,” heralding a springtime of accelerated development for the industry. Since the beginning of this year, Juxian County has seized the new opportunity of “cultivating and developing the pre-made food industry,” leveraging its unique industries and resource endowments to vigorously develop the pre-made food industry. The focus has been on tightly linking raw material bases, product processing, cold chain storage, product sales, and citizens’ dining tables to accelerate the transformation of agricultural products into food products, thereby adding a “special dish” to rural revitalization and accelerating the transformation and upgrading of the agricultural industry.

Currently, the industrial chain for the pre-made food industry in Juxian County is beginning to take shape, with 18 pre-made food production enterprises. Among them are 12 quick-frozen fruit and vegetable processing enterprises represented by Zhonglu Food and Fangxin Food, with more than 90% of their products exported to countries and regions such as Japan, South Korea, the EU, the United States, Canada, Southeast Asia, and Africa. The export volume of green asparagus accounts for more than 70% of the province’s total, and the export volume of quick-frozen vegetables ranks second in the province. There are two livestock and poultry processing enterprises, with Rizhao Tyson Foods Co., Ltd.’s products mainly sold domestically through channels such as McDonald’s, KFC, and direct stores. Shandong Hengbao Food Group Co., Ltd. primarily exports meat products and marinated products to Japan. Two convenience rice processing enterprises mainly supply brands like Haidilao and Moxiaoxian for self-heating pots in China, with Shangjian Food holding an 80% market share, ranking first among convenience rice manufacturers. Additionally, there is one canned food processing enterprise and one seasoning sauce production enterprise, both primarily exporting their products overseas.

The new track for industrial development is full of momentum. The Rizhao Zhengji International Cold Chain Logistics Industrial Park, a major provincial project, is accelerating its construction. Using the industrial park as a platform, it aims to create two major functional segments: “agricultural product trading + centralized transportation and distribution” and “cold chain storage + processing and distribution.” The central kitchen and distribution trading center segments are planned to begin trial operations in November, gradually launching over 160 types of pre-made food products across seven major categories. The annual production capacity is expected to reach 50,000 tons of pre-made food products, with an output value of 500 million yuan, making it another “main battleground” for the county’s pre-made food industry development. Livestock and poultry cutting enterprises like Dehui Food and Chengqun Food are also accelerating their transformation and upgrading, shifting from primary processing to deep processing through new ready-to-eat food processing projects.

Next, Juxian County will base its efforts on local realities and development advantages, focusing on creating frozen, product-based, and restaurant-style pre-made foods as the main line. The county will continue to deeply cultivate the pre-made food industry, driving the extension of characteristic agricultural product raw materials such as fruits, vegetables, livestock, poultry, grains, and oils into clean vegetables, primary processing, semi-finished products, and finished products. By precisely attracting leading pre-made food enterprises and supporting enterprises along the industry chain, the county aims to enhance new competitive advantages in the pre-made food industry and promote its high-quality development.

LAIYANG CITY: CHINA’S NUMBER ONE CITY FOR PRE-MADE FOOD

Laiyang is renowned both domestically and internationally for its agricultural production, processing, and export, earning the title of China’s Green Food City. In April this year, the China Vegetable Marketing Association awarded Laiyang the title of “China’s Number One City for Pre-made Food.” On October 30, as part of the “Hemei Countryside, Treasure Yantai” media tour focusing on rural revitalization, journalists visited Laiyang to explore the Pre-made Food Industry Party Building Complex, Longda Food, and Chunxue Group, gaining insights into Laiyang’s approach to promoting rural revitalization and shared prosperity.

The first stop for the journalists in Laiyang was the Pre-made Food Industry Party Building Complex. As they entered, the prominent words “Hometown of Pre-made Food in China” greeted them. The exhibition hall showcased a wide variety of pre-made food products, including Kung Pao Chicken, Sour Soup Fatty Beef, Seafood Pizza, and Seafood Dumplings.

Pre-made food, also known as pre-prepared or ready-to-eat food, has gained popularity in recent years. Laiyang has a long history with pre-prepared foods. Since the 1980s, Laiyang enterprises, led by Longda Food, began exporting pre-prepared dishes to Japan. After over 30 years of development, Laiyang has established a comprehensive pre-made food industry system, including vegetables, livestock, poultry, seafood, and pastries, represented by enterprises such as Longda, Chunxue, and Tianfu.

Data provided by the Laiyang Agriculture Bureau shows that the pre-made food industry has engaged over 100,000 local farmers in various stages such as cultivation, processing, and transportation. This has increased farmers’ annual income by over 1.8 billion yuan, with an average income increase of nearly 20,000 yuan per person, carving out a rural revitalization path for Laiyang that is based on industrial prosperity, farmer income growth, and shared prosperity.

The second stop was Shandong Longda Food Co., Ltd. As a company with 25 years of experience in the food industry, Longda Food has garnered numerous accolades, including being recognized as a key leading enterprise in agricultural industrialization at the provincial level, among the top 100 industrial enterprises, top 100 pre-made food enterprises in China, top 100 private enterprises in Shandong, a gold member of the World Meat Organization, president of the Pan-Yangtze River Delta Supply Chain Alliance, president of the Shandong Healthy Meat Industry Association, and vice president of the Shandong Pre-made Food Industry Alliance.

According to Li Xinxin, Marketing Director of Longda Food Co., Ltd., the company’s revenue in 2022 reached 16.116 billion yuan, with pre-made food accounting for 1.314 billion yuan. “Our ‘131’ flagship products, including pork intestines, crispy pork, meatballs, sausages, and bacon, are our key expansion series.”

Currently, Longda Food has partnered with 1,000 well-known enterprises and is an annual excellent supplier for companies such as Tyson Foods and Yum China, and a long-term partner for organizations like Haidilao, Shanghai Pangu, Half-Day Yao, Master Kong, Carrefour, and RT-Mart. Li Xinxin stated that the company adheres to a “one body, two wings” development strategy, focusing on pre-made food as the core business, supported by slaughtering and breeding. The company aims to become a leading food enterprise in China, providing high-quality system solutions for healthy eating.

The final stop for the journalists in Laiyang was Chunxue Food Group. Founded in November 2012, the company specializes in the research, production, and sales of white-feather chicken meat products, along with meat chicken slaughtering and commercial meat chicken farming. Chunxue aims to become a leader in the segmented industry of chicken prepared foods in China.

At the Chunxue Food processing plant, chicken breast meat is transformed into popular chicken patties through processes such as battering, frying, metal detection, and freezing. “Take the chicken patty home and fry it in an air fryer—it’s delicious,” said Zheng Jun, Director and President of Chunxue Food Group Co., Ltd. “We began venturing into chicken pre-prepared foods in 2002 and implemented an industrial transformation and upgrading strategy in 2014, focusing on the domestic market for chicken pre-prepared foods. In 2022, the company achieved a revenue of 2.495 billion yuan, a 22.71% year-on-year increase.”

Zheng Jun explained that Chunxue Food has developed breeding bases through a “leading enterprise + base + farmers” model, establishing long-term cooperation with 214 farmers and providing over 60 million yuan in financial support, achieving an annual output of 80 million chickens and generating an additional 150 million yuan in annual income. “We collaborate with local farmers, providing loan guarantees or lending money to help them build chicken farms, ensuring quality through standardized breeding. Additionally, auxiliary ingredients for pre-made foods, such as green onions, ginger, and garlic, have boosted the income of some vegetable farmers. The labor required in production workshops has also created local employment opportunities.”

As the pre-made food industry accelerates, Laiyang has taken the lead. According to the Laiyang Agriculture Bureau, the city now hosts over 200 pre-made food enterprises. In 2022, the scale of the city’s food industry surpassed 80 billion yuan, with pre-made food production capacity increasing from 540,000 tons to 760,000 tons, and sales revenue doubling to over 10 billion yuan within a year.

County Signs 12.13 – Billion – Yuan Angus Beef Cattle Project

On October 28th, our county successfully signed the Angus Beef Cattle Industry Cluster Project. The signing ceremony was attended by Yu Chenshan, Vice Chairman of Anges Agricultural Technology (Beijing) Co., Ltd., Co-CEOs Hu Jianu and Huang Shaoyu, Chen Jijun, President of the China Township Enterprises Association, Liu Jianfeng, Chairman of Fengxiang Industrial (Shanghai) Co., Ltd., County Party Secretary Zhou Chongyan, Deputy Secretary of the County Party Committee and County Mayor Yang Peng, and county leaders Pan Shixin, Tian Xinyi, and Yu Xiaowu.

In his speech, Zhou Chongyan, on behalf of the county’s “Four Major Groups” and the 220,000 people of all ethnic groups in the county, extended a warm welcome to the visiting entrepreneurs and expressed heartfelt gratitude to Anges Agricultural Technology (Beijing) Co., Ltd. for their care and support for Xinhuang.

Zhou Chongyan pointed out that Xinhuang is an important node on the Xiangqian High-speed Rail Economic Belt, a forefront area for Hunan’s westward opening, and a pilot county for Hunan Province’s Beef and Mutton Quality and Quantity Enhancement Action Project. It has unique location advantages, a convenient transportation network, and abundant resources. The landing of the Angus Beef Cattle Industry Cluster Project in Xinhuang will become a strong engine for the high-quality development of characteristic agriculture and a powerful force for the high-quality development of the economy and society.

Zhou Chongyan stated that the Xinhuang County Party Committee and County Government will fulfill their commitments, providing the most favorable policies, the best environment, and the highest quality services to help the project start, build, produce, and become effective as soon as possible. He also hopes that Anges Agricultural Technology (Beijing) Co., Ltd. will fully leverage its brand and technological advantages to further support the development of Xinhuang’s characteristic agriculture.

Yu Chenshan remarked that Xinhuang has unique transportation and location advantages, distinct resource characteristics, a rich cultural history, a good ecological environment, and a harmonious and safe society. Xinhuang’s yellow cattle industry is a regional economic specialty with a solid foundation in beef cattle breeding. Together with the Xinhuang County Party Committee and County Government, they aim to build Xinhuang’s Angus beef industry into a billion-yuan-level industry cluster, making it the first wind-solar-pasture complementary super ranch demonstration project in Hunan Province. This project will serve as a model of green circular economy integrating farming and breeding, a rural revitalization model linking and benefiting farmers, and a model park integrating primary, secondary, and tertiary industries, striving to become a key national wind-solar-pasture complementary super ranch project.

With the witnesses from both parties, Yang Peng and Hu Jianu successfully signed the agreement on behalf of their respective parties.

It is reported that the total investment of the Xinhuang Angus Beef Cattle Industry Cluster Project is approximately 12.13 billion yuan. The project plan includes the construction of new standardized large-scale beef cattle fattening farms, modern beef cattle slaughtering enterprises, a beef fine cutting and cold chain logistics center, and supporting 1GW wind power construction and photovoltaic resource development. The total construction cycle of the project is planned to be three years, divided into two phases: the first phase (to be completed and fully operational by December 2024) and the second phase (to be completed and fully operational by December 2026).

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