Zhou Jinsong, Chairman of Jinzai Food

Starting from April 30th, Huawen Food has been renamed as Jinzai Food, achieving consistency in company name, securities abbreviation, and main brand name. After years of cultivation, 'Jinzai' has become a leading brand in fish snacks. This renaming is a small step, but it actually indicates a big step. In the long run, we believe that the fish snack industry contains huge potential, "said Zhou Jinsong, Chairman of Jinzai Food.
 
Focusing on the 'Big Space' of Fish Snacks

As the first fish snack, Jinzai Food takes the lead in the field of flavored small fish and flavored dried tofu. In 2020, Jinzai Food achieved a revenue of 909 million yuan and a net profit attributable to shareholders of the listed company of 103 million yuan.

Throughout, 'Jinzai Xiaoyu' has been the company's flagship product. The annual report shows that in 2020, the revenue of the flavored small fish segment of Jinzai Food reached 709 million yuan, accounting for 78.01% of the total revenue. Secondly, the operating revenue of flavored dried tofu and flavored dried meat accounted for 13.79% and 6.52% respectively.
 
Jinzai Food stated that since its establishment, the company has adhered to the core of leisure food manufacturing. In recent years, the company has invested a lot of resources to build its main brand "Jinzai", which has gained a certain market awareness and influence in the national market. In order to unify the company name and market brand name, further enhance brand awareness and reputation, the company will integrate the main market brand name "Jinzai" into the company name and upgrade it to a securities abbreviation, achieving consistency between the company name, securities abbreviation, and main brand.
 
Jinzai Food said that on the basis of the existing main products such as flavored small fish, flavored dried tofu and flavored dried meat, it would increase the focus on fish snacks, optimize the existing product structure, expand other categories of fish snacks and seafood snacks, further expand and strengthen in the subdivided fields, and create a series product portfolio of fish snacks and seafood snacks to consolidate the leading position in the industry.
 
Industry data shows that the market size of leisure fish products was 20 billion yuan in 2020, and can reach 60 billion yuan by 2030.
 
If we estimate based on this, occupying 10% of the market space means billions of yuan in single category revenue for fish snacks, and the track space is huge.
 
The leisure fish products industry has the characteristics of high growth potential and large growth space. At the same time, the industry is still in a relatively scattered stage. In the future, on the one hand, the industry will develop rapidly, and on the other hand, the market share of leading enterprises in the leisure fish products industry will further increase. Zhou Jinsong said that Jinzai Food will promote the common development of the fish snack industry and enterprises in the coming time, focus on the fish snack industry, and concentrate on the fish snack track.
 
With the advancement of research and development, the fish snack industry can launch more varieties and flavors of large products, thereby promoting the overall development of the fish snack industry, "said Zhou Jinsong.
 
For the fish snack industry, the supply chain is particularly important. Zhou Jinsong introduced that the company has developed raw material bases in Southeast Asia such as Thailand and Vietnam, and is actively promoting the Kenya raw material procurement base project. In the future, more raw material procurement bases will be further developed, and quality and cost will be further optimized.
 
Accelerate the deepening and upgrading of channels

"In fact, in addition to fish snacks, flavored dried tofu have become a new category and large item with annual sales of more than 100 million yuan, and Jinzai Food has the ability to create new categories." Zhou Jinsong said that while focusing on fish snacks, Jinzai Food is also developing other categories in an orderly manner.
 
At present, Jinzai Food is exploring new categories of traditional flavor foods such as soy products, poultry products, and flavored vegetarian food, further optimizing its product structure and forming a product matrix dominated by fish products, supplemented by soy products, meat products, and other products.
 
After clarifying the product structure system, Jinzai Food will focus on deepening and upgrading its channels. In 2021, the company will further accelerate the development of modern supermarket channels and online channels, enabling them to grow in synergy with traditional distribution channels and support the steady growth of the company's performance.
 
It is reported that the sales model of Jinzai Food is divided into distribution model and direct sales model. Distribution model is currently the most important sales model, covering both offline and online channels. As of December 31, 2020, there were a total of 1737 distributors of Jinzai Food, a year-on-year increase of 24.96%. The products covered the whole country and were exported to the United States, Japan, South Korea and other places.
 
Zhou Jinsong stated that starting from 2020, Jinzai Food has accelerated its layout in modern channels with faster growth rates, especially KA stores, B-class chain supermarkets, and C-class convenience stores. It is reported that in 2020, Jinzai Food products have entered 18000 modern channels such as KA stores.
 
In addition, Jinzai Food has "played" with more "young" channels. At present, Jinzai Food has covered mainstream B2C platforms such as Tmall, JD.com, and Pinduoduo, as well as major B2B platforms such as JD New Channel, Alibaba Retail, and 1688. Jinzai Food has also joined popular community group buying platforms such as Xingsheng Youxuan, Meituan, Caiduoduo, and Shihui Tuan. According to data statistics from Taobao (Tmall, Taobao, etc.) and Pinduoduo platforms, Jinzai Deep Sea Fish has the highest sales volume in the ready to eat fish snack industry.
 
2020 is the explosive year of "live streaming sales", and live streaming sales have become a new breakthrough point. Jinzai Food has formed a live streaming team, utilizing both public and private domain traffic to explore new growth points. It is reported that Jinzai Food has collaborated with many top celebrities and influencers such as Viya and Li Jiaqi, further enhancing its brand influence and achieving a single live streaming sales revenue of over 2.5 million yuan. Last year, online sales reached 169 million yuan, a year-on-year increase of 44.91%.