China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) was founded in 2005 and is headquartered in Chongqing, China . It has 200 full-time employees (2/19/2019), together with Its subsidiaries, Chongqing Penglin Food Co., Ltd. and Guangan Yongpeng Food Co., Ltd., operate as an emerging growth food company engaged in pork processing in China .
China Xiangtai Food Co. (PLIN):
China Xiangtai Food Co., Ltd. is mainly engaged in pork food processing . The company’s business spans key parts of the pork processing value chain, including slaughtering, packaging, distribution and wholesale of various fresh pork, etc. The company provides a series of fresh processed products, including various pork, Beef, lamb, chicken, duck and rabbit meat and other products. China Xiangtai Food Company is committed to maintaining the highest standards of food safety, product quality and sustainable development, and provides high-quality, nutritious and delicious food in a responsible manner through its trusted brand portfolio.
Xiangtai Food has a large-scale pig breeding base , a standard fully automated pig slaughter line, and complete environmental protection facilities, including sewage treatment and harmless treatment, incineration treatment, etc. The all-steel structure factory building and 1,200-ton standardized cold storage can meet the daily average slaughter capacity of 1,000 pigs.
Xiangtai Foods Co., Ltd. adopts the “company + farmer” approach, and has reached agreements with dozens of farmers for pig breeding. Now it has formed a business model covering the entire industrial chain of breeding, slaughter, raw and cooked processing, stock freezing, wholesale sales, and dozens of raw Fresh and cooked food product series. The company’s fresh meat and deep-processed meat products have entered hundreds of stores in large supermarkets such as New Century and Yonghui Supermarket. Xiangtai Food Company has fixed assets of 200 million yuan and annual operating income of 350 million yuan.
Xiangtai Food Co., Ltd. faces the consumer market in China and Southeast Asia, implements the “two-legged” strategy of ordinary pig + sweet pig industry to achieve scale expansion and rapid profit growth, build an industrial chain for the sweet pig market, and promote deep processing of meat products. The company predicts that by the end of 2020, it will achieve operating income of 5.5 billion yuan and profit of 800 million yuan. Among them: ordinary pig slaughter and deep processing achieved annual sales revenue of 4 billion yuan and a profit of 400 million yuan. The sales of fragrant pig fresh and deep processing achieved a total sales revenue of 1.5 billion yuan and a profit of 400 million yuan throughout the year.
Official website information (from the company’s official website):
Chongqing Penglin Food Co., Ltd. is a diversified enterprise that integrates breeding, processing, distribution, wholesale and retail. It focuses on ordinary raw pork products, and specializes in fresh pork meat and deep-processed products. It has food circulation. License and national industrial product production license. Company address: No. 128, Xinyuan Road, Zhenxi Town, Fuling District, Chongqing City, with more than 500 employees. The company implements the general manager responsibility system under the leadership of the board of directors. It has established Guangan Yongpeng Food Co., Ltd., Mingwen Food Co., Ltd., Chunmuyuan Farmhouse (Penglin Mountain Villa), Penglin Fragrant Pig Breeding Base, and has standard fully automated pig slaughter Assembly line, complete environmental protection facilities, including sewage treatment and harmless treatment, incineration treatment, etc. The all-steel structure factory building and 1,200-ton standardized cold storage can meet the daily average slaughter capacity of 1,000 pigs. At the same time, the company adopts the “company + farmer” approach to reach pig breeding agreements with dozens of farmers, and has now formed a business model covering the entire industry chain of breeding, slaughter, raw and cooked processing, stock freezing, wholesale sales, and dozens of fresh products And cooked food product series. The company’s fresh meat and deep-processed meat products have entered hundreds of stores in large supermarkets such as New Century and Yonghui. The company has 200 million yuan in fixed assets and 350 million yuan in annual operating income.
Over the years, the company has adhered to the principle of quality first and honest management, and has a good reputation in the industry and users, and has successively won honors such as “honest and trustworthy customer” and annual sales star. In April 2015, Chongqing Penglin Food Co., Ltd. was listed on the Shanghai Equity Custody and Trading Center (enterprise code: 204675).
Especially in order to meet the people’s demand for high-quality meat, Penglin Company began to introduce rare and protected animal species from China in 2013, and built the Xishanping Lurui fragrant pig breeding base in Beibei, Chongqing, plus the “company + farmer” approach , Has formed a 20,000-head fragrant pig breeding scale, developed more than 100 fragrant pig raw and cooked food series, and has been sold in major supermarkets, and the market response has been good. Only during the 2016 Spring Festival, the total number of fragrant pigs The sales amount reached more than 10 million yuan. With the successful development and listing of the Xiangzhu series of products, the company has formed a full range of fresh and cooked food and a multi-level product structure. The Xiangzhu industry will also become the company’s new business direction and new profit growth point.
2. Development plan
Pork is the main source of protein intake for residents in China and Southeast Asia. China is a country with a large population, and raw pork products are the main consumer goods in the daily life of the people, and they are also the “vegetable basket project” and “people’s support project” that governments at all levels are striving to grasp. At present, the output value of China’s domestic meat processing industry has reached more than 300 billion yuan.
With the continuous development of China’s social economy, the continuous improvement of people’s living standards and the continuous advancement of new urbanization, the meat processing industry has a broad market prospect. Chongqing Penglin Foods Co., Ltd. is responding to this demand for people’s livelihood, providing high-quality and hygienic meat products to the market in strict accordance with national laws and regulations and food processing specifications. While meeting market supply and serving the people, it can also obtain Develop and grow.
(1) Development goals
Based on Chongqing, relying on Chongqing’s unique geographical resource and environmental advantages, facing the huge consumer market in China and Southeast Asia, it implements the “two-legged” strategy of ordinary pig + fragrant pig industry to achieve scale expansion and rapid profit growth. By the end of 2020, the company will achieve annual operating income of 5.5 billion yuan and profit of 800 million yuan. Among them: ordinary pig slaughter and deep processing achieved annual sales revenue of 4 billion yuan and a profit of 400 million yuan. The sales of fragrant pig fresh and deep processing achieved a total sales revenue of 1.5 billion yuan and a profit of 400 million yuan throughout the year.
(2) Company development strategy
1. Expand and strengthen the scale of operations.
Focus on ordinary pork processing, accelerate the pace of mergers and acquisitions, accelerate scale expansion, and achieve rapid growth. Invest in 25 live pig slaughtering and processing enterprises in major pork product consumption cities through mergers and acquisitions, cooperation, etc., and build a comprehensive meat processing base to realize the slaughtering and processing scale of 2 million pigs per year. The sales network is also covered simultaneously, and products are sold in major supermarkets, forming a nationwide and overseas production and sales network, achieving large-scale and intensive growth, and further enhancing the business scale and brand strength of “Penglin Food”.
2 . Build the entire industrial chain of the fragrant pig market .
Taking the company’s “Penglin Lurui” ecological fragrant pig high value-added products as the lead, cultivate new economic growth poles. From the “company + base + pig farmer” model to the “vertical integration” business model, from the green pig breeding, segmentation processing, deep processing, and market sales, the main business covers all the upstream and downstream of the production and processing of fragrant pork products. Links, forming a green industrial chain of ecological fragrant pigs, exerting economies of scale, resisting market risks, and improving the overall competitiveness and profitability of enterprises. By 2020, 60 large-scale fragrant pig breeding bases will be built in Chongqing and surrounding provinces and cities, and the annual scale of breeding 500,000 Luru fragrant pigs will be established. With the deep processing of meat products, the annual fragrant pig business scale will reach 1.5 billion yuan.
3. Promote deep processing of meat products.
On the basis of expanding the scale of fresh pork business, research and develop new formulas and new techniques, increase the deep processing of pork and accessories, and beef and sheep (chicken, rabbit) meat, and increase added value and profitability. Especially based on the processing of high-quality fragrant pork products, the focus is on the research and development of low-cholesterol meat products and health-care meat products for specific groups of people, making it another profit growth point for the company’s future development.
4. Create international brands of “Penglin Food” and “Lurui Xiangzhu”.
Brand is the lifeblood of a product. Only by establishing a good brand image can we further increase international visibility and increase product added value. Penglin Company will implement the international and domestic market policies to strive for greater development space. Implement the “going out” strategy to build an upstream and downstream industrial chain of pig breeding and processing in traditional pork consumption and trade areas such as Southeast Asia, and export meat products to the international market. Explore brand and technical cooperation in relatively developed countries to increase the international reputation and brand influence of “Penglin Food” and “Lurui Xiangzhu”.
3. The company’s main product processing technology
1. Fresh meat.
Pig cleaning and disinfection → electric shock bleeding → scalding and shaved hair → carcass processing → simultaneous sanitation inspection → by-product processing → white strips acid removal → split packaging → transport and listing.
2. Semi-finished products.
Raw materials are thawed → washed and cut → seasoned and seasoned → packaged and sterilized → shipped to the market. (Shredded pork, sliced meat, minced meat, pickled pepper series, lamb and lamb, steamed series, KFC chicken strips, spicy series)
- (1) Steamed meat with rice flour. Material selection → slicing → mixing → bagging → steaming → cooling and packing → storage → listing.
- (2) KFC chicken strips. Material selection → cutting → mixing → frying → cooling → bagging → storage → listing.
- (3) Spicy Diced Chicken. Select ingredients → diced → boil → mix ingredients → stir-fry → cool → bagging → storage → market.
- (4) Spicy intestines. Material selection→cutting→poaching→mixing→stir-frying→cooling→bagging→storage→listing.
- (5) Pickled pepper rabbit. Select ingredients → diced → boil → mix ingredients → stir-fry → cool → bagging → storage → market.
3. Cooked food.
Sausages, bacon, stewed products, braised pork, roasted white, luncheon meat.
- (1) Sausage. Material selection→cutting→vacuum chopping→filling→sterilization→smoke→washing→labeling→storage→listing.
- (2) Bacon. Material selection → pickling → washing → sterilization → smoking → washing → labeling → storage → listing.
- (3) Luncheon meat. Material selection → fast cutting → minced → chopped and mixed → seasoning → stirring → packaging → steaming → cooling and packing → storage → listing.
- (4) Braised pork in brown sauce. Selection of ingredients → boiling → drying → sugar coloring → frying → dicing → mixing → bagging → steaming → cooling and packing → storage → listing.
- (5) Burn white. Material selection → boiling → drying → sugar coloring → frying → slicing → mixing → bagging → steaming → cooling and packing → storage → listing.
- (6) Halogen products. Select ingredients → boil in water → marinate for one day → boil in brine → cook and cool → bagging → storage → listing.
Four, featured products
(1) Lurui Xiang Pig
Over the years, with the continuous improvement of people’s living standards, health and self-cultivation have become people’s fundamental requirements for diet. A new healthy pig breed jointly developed and cultivated by Penglin Company and the Department of Animal Science and Research of Chongqing Southwest University???????????????—— Lurui pig, with high protein, low fat, low Calories, while being rich in a variety of trace elements necessary for human physiology, are indispensable and safe foods on people’s tables. Coupled with the “company + farmer” approach, a 20,000-head fragrant pig farming scale has been formed, and more than 100 fragrant pig raw and cooked food series have been developed and sold in major supermarkets. The market response has been good, only 2016 During the Spring Festival, the total sales amount of Xiangzhu reached more than 10 million yuan.
Luruixiang pig originated from the national second-level rare protected livestock species Congjiangxiang pig. Since ancient times, it has been known as “a family of boiled meat with four neighbors fragrant” and “cheeks and teeth remain fragrant for three days” since ancient times. Lurui pigs are raised with a new breeding method of “Chinese medicine + farm grains”, and the breeding time is more than 365 days. The food is mainly high-quality farm grains such as corn, rice, wheat bran, and bean cypress, with a certain proportion of grass and vegetables. , Coupled with the company’s secret pure natural Chinese medicine preparations, not only can achieve the effect of strengthening pork meat, but also can prevent cholera and hepato-intestinal pneumonia. During the feeding period, Luruixiang pigs are guaranteed not to add any additives and no antibiotics are used during the whole process. It is absolutely natural and safe food.
The fragrant pigs in the Penglin fragrant pig base adopt a stocking mode. During the day, the fragrant pigs are allowed to run freely on the mountain and grassland, foraging for wild grass and trees, which can not only enhance physical fitness, but also improve disease resistance. There will be no unpleasant smell when you enter the pig house. There are only 8 to 10 pigs in each 12 square meter fence. The ground is composed of cement and soft sand. The sand is also called a “fermentation bed”. It is currently the most technologically-content ecological and environmentally friendly breeding method in China, with the characteristics of low odor, low odor, harmless, zero emission and no pollution. It uses a certain proportion of fermented strains, mixed with sawdust and rice husks, and uses microbial fermentation to produce heat, which makes the temperature in the pig house comfortable and dry, and ensures the healthy growth of fragrant pigs.
With the successful development and listing of the Xiangzhu series of products, the company has formed a full range of fresh and cooked food and a multi-level product structure. The Xiangzhu industry will also become the company’s new business direction and new profit growth point.
(B) gymnandrum pig jars of meat
Jar meat originated in the ancient country of Bayu nearly 2,000 years ago and has a long reputation. In order to dig out the treasure of traditional food culture for thousands of years, the company specially introduced the national rare and protected pig breeds for cultivation, and jointly built the Lurui Xiang pig breeding base with Southwest University. The breeding time of Luruixiang pig is more than 365 days. It is fed with farm grains and green vegetable feed. It has the characteristics of high protein, low fat, low calorie and rich in various trace elements. The company adopts Luruixiang pig forelegs, hind legs, third-line, ribbed, lean meat and other varieties, and inherits traditional craftsmanship, with pickles and precious spices secretly, kept in the altar for more than 100 days. Urge him, he will be beautiful when the fire is full”, forming a fat but not greasy, mellow and delicious unique flavor “Lurui Xiangzhu” jar meat series products, which are welcomed by consumers as soon as they are on the market. The products are in short supply and become home delivery. Friends’ food is still good. Nowadays, the “Lurui Fragrant Pig” jar meat has become a special delicacy developed by Chongqing Penglin Food Co., Ltd., and it also allows citizens across the country to enjoy the moisture and beauty brought by thousands of years of traditional cuisine.
(3) Other products
- 1. Fresh meat. The company has established Guangan Yongpeng Food Co., Ltd. and a designated slaughter plant in Linshui, Sichuan, slaughtering 170,000 pigs annually. Mainly supply local and Chongqing sales.
- 2. Semi-finished products. (1) Steamed meat with rice flour. (2) KFC chicken strips. (3) Spicy Diced Chicken. (4) Spicy intestines. (5) Pickled pepper rabbit.
- 3. Cooked food. Fragrant pork sausages, bacon, braised products, braised pork, roasted white, luncheon meat, braised beef tendon, sweet pig jar meat series and gift sets.
China Xiangtai Food Co. (PLIN) investment:
China Xiangtai Food Co., Ltd. (NASDAQ:PLIN) submitted its IPO listing documents on 8/24/2018. The listing plan was postponed for nearly a year, and it was finally registered on August 14, 2019. Starck, the issue price of 5 US dollars, the issuance of 1,172,360 ordinary shares, raised 5.86 million US dollars, Boustead Securities, LLC acted as the sole underwriter of this IPO, and Ortoli Rosenstadt LLP served as the company’s legal counsel for this public offering, and Sichenzia Ross Ference LLP served as the underwriter’s legal counsel.