Breaking Down Fujian Sunner Development Co., Ltd. Financial Health: Key Insights for Investors

Step into the driven world of Fujian Sunner Development Co., Ltd., a poultry powerhouse founded in 1983 and headquartered in Nanping that today supplies major retailers and restaurant chains like Yum China, Dicos, Walmart and McDonald's through a tightly controlled, vertically integrated model that spans breeding, feed and meat processing; last year Sunner reported revenue of approximately 18.49 billion CNY-a robust 10% year‑on‑year increase-while employing over 28,000 people, reflecting both scale and sustained market demand, and attracting strategic capital such as Yum China's 5% equity stake in 2021 as it pursues a mission of safe, nutritious products, a vision of global leadership, and core values of integrity, innovation, sustainability, customer focus and excellence that drive technology adoption, green practices and premium market expansion

Fujian Sunner Development Co., Ltd. (002299.SZ) - Intro

• Core business: breeding, feed production, live poultry farming, cold-chain processing, retail & foodservice supply.
• Key customers: Yum China, McDonald's, Dicos, Walmart, national supermarket chains and food processors.
• Vertical integration benefits: traceability, quality control, cost management, rapid product innovation.

• Deliver safe, high-quality poultry and processed foods to consumers across China and export markets.
• Maintain full-chain control to ensure food safety, animal welfare and consistent supply.
• Create shared value for customers, suppliers, employees and communities.

• Be the most trusted and efficient poultry supplier in China with global competitiveness.
• Lead the industry in sustainable farming, cold-chain logistics and product innovation.
• Drive modernization of China's poultry supply chain through technology, scale and strategic partnerships.

• Food Safety First - uncompromising traceability and quality control across breeding to delivery.
• Customer-Centricity - align product development and service with retailer & foodservice needs.
• Innovation & Efficiency - continuous improvement in genetics, feed efficiency, processing automation and cold-chain logistics.
• Integrity & Compliance - adhere to regulatory standards, ESG practices and ethical sourcing.
• People Development - invest in training, safety and career pathways for the 28,000+ workforce.

• Expand cold-chain capacity and upstream breeding to secure margins and reduce supply volatility.
• Deepen partnerships with large foodservice accounts (e.g., scalable supply contracts with Yum China, McDonald's).
• Pursue productivity gains via automation in slaughtering/processing and digital farm management systems.
• Improve product mix toward higher-margin processed foods and branded retail offerings.

• Price volatility in feed and live-bird markets - hedging, backward integration into feed and breeding.
• Food safety incidents - rigorous HACCP, third-party audits and full-chain traceability systems.
• Regulatory and trade risks - compliance programs and diversified customer base including domestic retail and institutional clients.

Fujian Sunner Development Co., Ltd. (002299.SZ) - Overview

• Provide high-quality, safe, and nutritious chicken products to meet growing consumer demand through vertically integrated operations that control breeding, feed, slaughtering, processing, cold-chain logistics, and retail.
• Prioritize food safety and product quality via standardized management systems, traceability, and strict QC across the supply chain.
• Drive technological innovation and continuous process improvement to raise product quality, yield, and operational efficiency.
• Commit to environmental sustainability by adopting green processing, energy-efficient cold storage, optimized packaging, and waste-reduction measures to lower resource consumption and emissions.
• Strengthen market position by expanding production capacity and deepening relationships with premium customers and major retail/foodservice partners.
• Foster a corporate culture of continuous improvement and employee-driven innovation to enhance productivity and problem-solving on the ground.

• Be a leading, trusted provider of poultry products in China and selected export markets, recognized for food safety, product quality, and sustainability practices.
• Lead digital and automation adoption in poultry production to reduce costs, improve traceability, and enable rapid response to consumer trends.
• Scale premium product lines and value-added processed foods to capture higher margin segments and lift brand equity.

• Safety first - uncompromising focus on food safety and regulatory compliance.
• Quality-driven - continuous improvement of product standards and customer satisfaction.
• Integrity - transparent supply-chain governance and ethical operations.
• Innovation - investment in R&D, automation, and data-driven production management.
• Sustainability - responsible use of resources, pollution control, and circular approaches in processing/packaging.
• People-centric - develop talent, front-line empowerment, and performance-oriented culture.

• Vertical integration: control across breeding, feed, slaughtering, cold chain, and distribution to secure quality and margins.
• Capacity expansion: targeted additions to processing and cold-storage capacity to serve rapid urban consumption and e-commerce channels.
• Premiumization: growing higher-margin ready-to-cook and branded fresh product portfolios for supermarkets and foodservice.
• Environmental programs: implementation of energy-saving refrigeration, wastewater treatment upgrades, and packaging optimization.
• Digitalization: deployment of farm-to-fork traceability, production scheduling systems, and predictive maintenance in plants.

• Quality & safety: standardized HACCP and traceability systems across facilities, reducing nonconformances and product recalls year-on-year.
• Innovation: pilot automation lines and process upgrades that raise throughput and reduce per-unit labor costs.
• Sustainability: incremental reductions in energy use per ton processed and investments in wastewater treatment to lower environmental footprint.
• Market growth: expansion of premium product SKUs and strengthened retail/foodservice contracts to improve sales mix and gross margin.

Fujian Sunner Development Co., Ltd. (002299.SZ) - Mission Statement

• Deliver consistently safe, traceable, and high-quality chicken products to domestic and international markets.
• Invest in automation and modern processing to improve efficiency, product consistency, and food-safety controls.
• Expand supply-chain integration from breeding and feed to processing and distribution to reduce volatility and increase resilience.
• Implement sustainable farming and processing practices to minimize environmental impact and meet regulatory and consumer expectations.
• Foster a culture of continuous improvement, employee development, and innovation across operations and R&D.

• Meeting rising domestic demand for premium chicken by scaling capacity and diversifying product lines to capture higher-margin retail and processed-food segments.
• Expanding international presence through targeted export growth, strategic partnerships, and enhanced cold-chain logistics to serve larger customer bases in Asia and beyond.
• Accelerating technological advancement-modernizing processing facilities, embedding automation, and adopting data-driven animal health and feed-optimization systems.
• Embedding environmental responsibility into operations via energy efficiency, waste reduction, and responsible resource use to lower the company's ecological footprint.
• Cultivating an organizational culture of excellence and innovation that empowers employees to drive operational improvements and product development.

• Reduce per-unit energy consumption in processing plants by 15% within five years through equipment upgrades and process optimization.
• Increase automation in primary processing lines to >60% of throughput to improve food-safety consistency and labor efficiency.
• Expand integrated breeding and feed programs to lower mortality and feed-conversion ratios, targeting a 5% improvement in feed conversion over three years.
• Adopt waste-reduction and byproduct-utilization measures to cut solid-waste disposal volumes and create value-added outputs (e.g., organic fertilizers, rendered products).

• Capacity expansion in coastal and inland processing hubs to shorten domestic distribution times and strengthen cold-chain reliability.
• Form strategic partnerships with logistics and retail players to increase chilled and frozen product penetration in supermarkets and e-commerce channels.
• Invest in R&D partnerships with universities and technology providers for animal health monitoring, genetic improvement, and feed-efficiency programs.
• Implement enterprise resource planning (ERP) and traceability platforms to ensure end-to-end product visibility and faster quality incident response.

Fujian Sunner Development Co., Ltd. (002299.SZ) - Vision Statement

• Integrity: Uphold full regulatory compliance, transparent disclosure practices, and ethical behavior across all tiers of the supply chain.
• Innovation: Drive continuous improvement via targeted R&D investments and process automation to enhance product quality and margin.
• Sustainability: Reduce environmental footprint through measurable resource efficiency and waste reduction programs.
• Customer Focus: Deliver high levels of food safety, traceability, and service to maintain and grow market share.
• Excellence: Institutionalize best practices to lift operational productivity and product consistency.
• Collaboration: Foster cross-functional teamwork and partnership ecosystems across suppliers, retailers, and research institutes.

• Food safety & compliance: maintain 100% regulatory inspection pass rate across processing sites.
• Supply chain resilience: diversify feed and logistics suppliers to reduce single-source risk to below 10% of procurement spend.
• Product innovation pipeline: launch at least 8 new product formats or value-added SKUs per year to capture changing consumer trends.
• Digitalization: deploy IoT-enabled monitoring across 100% of high-risk production nodes within three years to cut loss and variability.

• Profitability focus: pursue sustained improvement in adjusted gross margin through yield improvement and value-added products.
• Capital allocation: balance reinvestment in farms, processing, and cold chain with prudent dividend and debt management.
• Transparency: adhere to timely, accurate disclosure consistent with Shenzhen Stock Exchange rules for code 002299.SZ.

• Green operations: invest in anaerobic digestion, renewable energy on-site, and circular waste programs to meet sustainability KPIs.
• R&D & partnerships: collaborate with universities and tech partners to accelerate vaccine, feed optimization, and processing automation.
• Market expansion: deepen presence in premium retail channels and expand export-ready product suites for regional markets.