Shenzhen Agricultural Products Group Co., Ltd.: history, ownership, mission, how it works & makes money

Shenzhen Agricultural Products Group Co., Ltd.: history, ownership, mission, how it works & makes money

CN | Consumer Defensive | Food Distribution | SHZ

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A Brief History of Shenzhen Agricultural Products Group Co., Ltd.

Shenzhen Agricultural Products Group Co., Ltd. was established in 1992 and has since developed into one of the leading agricultural product suppliers in China. The company plays a crucial role in the agricultural supply chain, involving production, processing, and distribution.

In 2010, Shenzhen Agricultural Products Group reported a revenue of approximately RMB 7 billion. The firm is known for its large-scale operations across several provinces, including Guangdong and Hunan.

The company's growth accelerated with the implementation of the "Opinions on Promoting the Development of Agricultural Product Logistics," introduced in 2015. This initiative aimed to modernize agricultural logistics and improve food safety standards in China.

Year Revenue (RMB) Net Profit (RMB) Assets (RMB)
2015 8 billion 600 million 12 billion
2016 8.5 billion 650 million 13 billion
2017 9 billion 700 million 14 billion
2018 10 billion 800 million 15 billion
2019 10.5 billion 850 million 16 billion
2020 11 billion 900 million 17 billion
2021 12 billion 950 million 18 billion
2022 13 billion 1 billion 19 billion

In 2021, the company expanded its operations internationally, entering markets in Southeast Asia and Europe. This strategic move contributed to their revenue increasing by 8% year-over-year.

Shenzhen Agricultural Products Group emphasized sustainability in its operations in 2022, investing RMB 500 million towards eco-friendly farming practices and supply chain improvements.

By 2023, the company achieved a market capitalization of approximately RMB 30 billion, reflecting investor confidence in its long-term growth strategy and operational efficiency.



A Who Owns Shenzhen Agricultural Products Group Co., Ltd.

Shenzhen Agricultural Products Group Co., Ltd. is a prominent player in the agricultural sector in China. The company, primarily involved in the distribution and retail of agricultural products, operates under various ownership structures.

As of the latest reports, the company is predominantly state-owned. The Shenzhen Municipal People's Government holds a significant portion of its shares, typically around 60%, indicating strong government influence over its operations and strategic direction.

In addition to state ownership, there are also minority stakeholders that play a role in the company's governance. Institutional investors, including domestic and foreign investment firms, hold approximately 20% of the shares. These holdings can vary as institutional investors may adjust their portfolios based on market conditions.

Individual shareholders and smaller investment groups represent the remaining 20% of ownership. This distribution of ownership reflects a mixed model that integrates both public sector and private sector participation in the agricultural supply chain.

Ownership Type Ownership Percentage Details
State Ownership 60% Shenzhen Municipal People's Government
Institutional Investors 20% Includes domestic and foreign investment firms
Individual Shareholders 20% Minority shareholders and small investment groups

The company also engages in partnerships and collaborations with various agricultural organizations, enhancing its operational reach and market influence. Notably, Shenzhen Agricultural Products Group Co., Ltd. has been involved in initiatives aimed at improving agricultural practices and supply chain efficiency.

Financially, the company reported revenues of approximately RMB 15 billion in the most recent fiscal year, with net income margins averaging around 5%. Such financial metrics highlight the company's capacity to generate profit within a competitive market that often faces pressures from pricing and supply chain disruptions.

In terms of market impact, Shenzhen Agricultural Products Group Co., Ltd. plays a critical role in the distribution of essential food items within Shenzhen and the surrounding regions. Its operations significantly contribute to local food security and agricultural sustainability efforts.

Overall, the ownership structure of Shenzhen Agricultural Products Group Co., Ltd. reflects a strategic blend of state control and private sector participation, aimed at leveraging strengths from both sectors to enhance productivity and market competitiveness in the agricultural domain.



Shenzhen Agricultural Products Group Co., Ltd. Mission Statement

Shenzhen Agricultural Products Group Co., Ltd. (SAPG) aims to enhance agricultural production efficiency and provide high-quality agricultural products. The company's mission emphasizes sustainable practices and technological innovation to ensure food safety and environmental stewardship.

In 2022, SAPG reported a revenue of approximately ¥3.2 billion, reflecting a growth rate of 8.5% compared to the previous year. The company focuses on integrating various aspects of agriculture, including production, processing, and distribution, to create a comprehensive supply chain.

According to the latest statistics, SAPG has established partnerships with over 1,500 farming cooperatives. This collaboration allows the company to source fresh produce efficiently while supporting local farmers through fair market practices.

Core Objectives

  • Enhance Food Safety: SAPG commits to rigorous quality control measures, ensuring that all products are safe for consumer consumption.
  • Sustainability: The company aims to reduce carbon footprints by 20% by embracing sustainable agricultural practices by 2025.
  • Technological Innovation: Investment in R&D amounted to ¥500 million in 2022, focusing on smart farming technologies.

Market Presence

As of October 2023, SAPG holds an estimated market share of 15% in the fresh produce sector within Guangdong Province. The company’s distribution network spans over 30 cities, enabling timely delivery of products.

Financial Performance

Year Revenue (¥ Billion) Net Profit (¥ Million) Growth Rate (%)
2020 2.8 180 7.2
2021 2.95 200 6.7
2022 3.2 250 8.5

Community Engagement

SAPG is actively involved in community development. The company has allocated ¥50 million towards community farming programs aimed at education and sustainable practices. These initiatives have benefitted over 10,000 local farmers by providing training and resources.

Future Aspirations

Looking ahead, SAPG plans to expand its product line by introducing organic and premium products, targeting a market growth of 25% by 2025. The company remains dedicated to maintaining its mission of enhancing agricultural productivity while ensuring environmental protection.



How Shenzhen Agricultural Products Group Co., Ltd. Works

Shenzhen Agricultural Products Group Co., Ltd. operates primarily in the procurement, processing, and distribution of agricultural products. The company plays a pivotal role in the supply chain of fresh produce and other agricultural goods, impacting both local and regional markets.

In 2022, Shenzhen Agricultural Products Group reported a revenue of approximately RMB 32.5 billion, showcasing a year-on-year growth of 12%. This growth is attributed to the company's expansion into new markets and the diversification of its product offerings.

Year Revenue (RMB Billion) Net Income (RMB Billion) Growth Rate (%)
2020 26.8 1.5 8
2021 29.0 1.8 8.2
2022 32.5 2.2 12

The company's operational model is integrated, encompassing various aspects of the supply chain. It sources products directly from farmers, processes them in its facilities, and distributes them through a network of wholesalers and retailers. This direct engagement with producers ensures quality control and stable prices, benefiting both suppliers and consumers.

In 2023, the company announced plans to invest RMB 1 billion in new processing facilities to increase its production capacity by 25%. This initiative aims to enhance efficiency and respond to growing consumer demands for fresh, organic products.

Shenzhen Agricultural Products Group has also been actively involved in e-commerce, leveraging online platforms to reach a broader customer base. In 2022, online sales accounted for approximately 30% of total revenue, a significant increase from 18% in 2021.

E-commerce Growth 2021 (%) 2022 (%)
Online Sales Contribution 18 30

The company maintains a robust supply chain management system, utilizing technology for inventory tracking, logistics optimization, and market analysis. This technology integration has led to a reduction in operational costs by around 15% over the past two years.

Shenzhen Agricultural Products Group is also committed to sustainability. It has implemented eco-friendly practices in its operations, reducing waste by 20% and increasing the use of renewable resources.

As of the latest fiscal year, the company has more than 5,000 employees and operates over 100 distribution centers across various provinces in China. Its market presence extends beyond mainland China, with exports to Southeast Asian countries contributing to 10% of total revenues.

The future growth strategy for Shenzhen Agricultural Products Group includes expanding its product lines to include more processed foods and enhancing partnerships with international suppliers to diversify its offerings further.



How Shenzhen Agricultural Products Group Co., Ltd. Makes Money

Shenzhen Agricultural Products Group Co., Ltd. generates revenue through a multifaceted business model primarily centered around the procurement and distribution of agricultural products. The company operates within critical segments, including wholesale and retail markets for fresh produce, processed foods, and logistics services. As of the latest financial data, the company reported a revenue of approximately RMB 12.8 billion in 2022, showcasing a 6% growth compared to the previous year.

Key revenue streams for Shenzhen Agricultural Products Group include:

  • Wholesale distribution of fresh fruits and vegetables
  • Retail sales through supermarkets and convenience stores
  • Logistical services supporting agricultural supply chains
  • Export of agricultural products to international markets

The company benefits from an extensive distribution network, which includes over 1,000 retail outlets across Guangdong Province. Additionally, Shenzhen Agricultural Products Group provides logistics solutions that include cold chain transportation, ensuring the freshness and quality of perishable goods.

Revenue Source 2022 Revenue (RMB) % Contribution to Total Revenue
Wholesale Distribution 6.5 billion 50.8%
Retail Sales 4.2 billion 32.8%
Logistics Services 1.6 billion 12.5%
Export Sales 500 million 3.9%

The wholesale segment remains the largest contributor, driven by the growing demand for fresh produce in both retail and food service sectors. The retail arm has also expanded considerably, with a rise in e-commerce and online grocery shopping contributing to a 15% increase in online sales for 2022.

Shenzhen Agricultural Products Group emphasizes partnerships with local farmers, ensuring a steady supply of high-quality products. The company's revenue model is further augmented by value-added services, including packaging and branding, which help in enhancing profit margins. In 2022, the gross profit margin was reported at 18%, up from 16% in 2021.

Furthermore, the company's commitment to sustainability and organic farming has attracted a growing customer base, particularly among health-conscious consumers. This segment’s revenue reached around RMB 1 billion, indicating a significant growth trajectory and potential for further expansion.

In conclusion, Shenzhen Agricultural Products Group Co., Ltd. leverages its extensive network, diverse revenue streams, and commitment to quality and sustainability to establish a robust financial performance trajectory in China’s agricultural sector.

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