Shanghai Xuerong Biology Science & Technology Co., Ltd(hereafter “the company”,300511.SZ) mainly deals with R&D of fresh edible mushroom, industrialized growing and sale, main products include Enoki mushroom, Hypsizigus marmoreus, Shiitake and so on.
The company is incontrovertibly the leading enterprise in its industry, by the signing date of letter of intent for share offer, daily capaciy for Enoki mushroom is 304 tons, 26 tons for Hypsizigus marmoreus, 130 tons for Shiitake, total daily output of edible mushroom reaches 460 tons, and ranks the first among the industrialized enterprises of edible mushroom in our country with daily output capacity two times of the second enterprise.
Looking from external environment the demand for edible mushroom grows rapidly, the percentage of edible mushroom industrialized growing expands day by day; looking from self condition, the company entirely specializes in industrialized fresh edible mushroom growing and is incontrovertibly the leading enterprise which has multiple overwhelming advantages in capacity, channel, technology, brand and so on.
With above factors play together the company achieves rapid growth. Operation revenue during report period is respectively 773.02 million Yuan, 888.37 million Yuan and 1019.00 Yuan; net profit is respectively 78.94 million Yuan, 97.26 million Yuan and 125.24 million Yuan, net profit increase is respectively 23.21% and 28.77%.
Multiple factors decide development space is broad
In recent years Chinese edible mushroom industry develops rapidly, from 2001 to 2013 average annual compound growth rate is about 12.37%, annual compound growth rate of production value is about 16.75%.
Edible mushroom has rich nutrition and is helpful to people’s health, accords with the demand of modern consumption upgrade, its consumption proportion increases year by year and future development prospect is broad.
Through grasping the good opportunity brought by that China attaches importance to food security, speeds up industry upgrade and industrialized edible mushroom industry develops vigorously, the company gradually became the leading enterprise of industrialized edible mushroom growing industry during its long-term pursuit of high quality and brand moulding process.
Industrialized growing mode of edible mushroom has become the development trend of edible mushroom industry and is also the only way which must be passed during the process of edible mushroom industry develops from big to strong.
Although Chinese industrialized edible mushroom output increases rapidly, the proportion accounting for total output is still low, in 2013 it is only 6.47%. Industrialized growing mode still has big development space. It is predicted that in the next ten years industrialized growing output will account for 20%-30% of total output, the center of gravity of international edible mushroom industrialized growing has gradually moved from Europe and America, Japan and South Korea to China.
Although Chinese industrialized edible mushroom output increases rapidly, the proportion accounting for total output is still low, in 2013 it is only 6.47%. Industrialized growing mode still has big development space. It is predicted that in the next ten years industrialized growing output will account for 20%-30% of total output, the center of gravity of international edible mushroom industrialized growing has gradually moved from Europe and America, Japan and South Korea to China.
Have brand premium ability
Compared with traditional agriculture the company’s industrialized edible mushroom growing belongs to new type facility agriculture, has obvious advantages in saving land, stabilizing supply, protecting environment and food security, and confirms to national industry policy. From 2002 to now the company has been jointly approved as “national key leading company of agriculture industrialization”in succession by eight ministries and commissions of Agriculture Ministry, Development and Reform Commission, CSRC and so on.
The company has established edible mushroom production bases in six cities of Shanghai, Dujiangyan of Sichuan Province, Changchun of Jilin Procvince, Dezhou of Shandong Province, Huizhou of Guangdong Province and Bijie of Guizhou Province, within transportation radius of 900 km covers 90% of Chinese population and further consolidates the company’s advantage position in edible mushroom industry.
The company firmly propels the implementation of nationwide layout strategy. Through reasonable nationwide layout gives full play to the advantages that products are more close to consumption market, distribution logistics cost is reduced greatly and products are supplied with fresh quality.
In the future on the basis of consolidating market share in key cities the company will quickly get sale channel sink to middle and little cities, and further strengthen market penetration to second and third-tier cities.
Excellent product quality, leading channel construction awareness and continuous brand operation make Xuerong products become leading brand in the industry.
In August 2012 the company formally signed a contract with China Aerospace Fundation and became a partner of China aerospace undertaking; in 2014 the company was awarded “Shanghai Famous Brand of 2014”.
In the future the company will continue to combine the coverage advantage in consumption end by Xuerong brand, highlight the characteristic that products are pollution-free, additive free, pesticide free and hormone free which complys with modern food consumption concept, further enlarge the gap with rivals and elevate product pricing room and brand premium ability.
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