Jinan Shengquan Group Share Holding Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Jinan Shengquan Group Share Holding Co., Ltd.

Established in 1999, Jinan Shengquan Group Share Holding Co., Ltd. specializes in the production of polymer materials and is based in Jinan, Shandong Province, China. The company has made significant strides in the fields of bio-based materials and agricultural products.

As of the end of 2022, Jinan Shengquan reported a revenue of approximately RMB 1.92 billion (around $281 million). The net profit reached around RMB 215 million (approximately $31 million), highlighting robust financial performance.

The company has become a leader in the production of bio-based polymer materials, with an annual output exceeding 200,000 tons. In 2021, Jinan Shengquan invested RMB 600 million (around $87 million) into expanding its production capacity and upgrading technology.

In 2023, the company announced a projected growth rate of 10% in revenue due to increased demand for sustainable materials. Jinan Shengquan has also committed to achieving a carbon neutrality target by 2030, further solidifying its position in the green technology sector.

Jinan Shengquan is listed on the Shenzhen Stock Exchange under the ticker symbol 002640. As of October 2023, the stock price hovered around RMB 16.50 per share, reflecting a market capitalization of roughly RMB 4.2 billion (approximately $607 million).

The company’s investments in R&D reached RMB 150 million (about $22 million) in 2022, contributing to numerous patents in polymer materials. Their major products include modified starch, starch-based biodegradable plastics, and other bio-materials, which are critical in various industries including packaging, agriculture, and construction.

Jinan Shengquan has also established partnerships with numerous universities and research institutions to foster innovation and development in sustainable practices, positioning itself as a key player in the global market for bio-based materials.

A Who Owns Jinan Shengquan Group Share Holding Co., Ltd.

Jinan Shengquan Group Share Holding Co., Ltd. is a publicly traded company based in China, primarily involved in the production of food additives, including gelatin, and various bio-materials. As of the latest available data, the company's ownership structure features a mix of institutional investors, individual shareholders, and founding members.

According to the 2022 annual report, the top shareholders are as follows:

As of June 2023, the company reported a total of approximately 944 million shares outstanding. The ownership distribution indicates a significant concentration of shares held by the Shengquan Group Co., Ltd., highlighting the influence of founding ownership in the overall control of the company.

Jinan Shengquan Group's market capitalization was approximately RMB 18.8 billion as of the last trading day in June 2023, reflecting its robust position within the food additive sector. The company is listed on the Shenzhen Stock Exchange under the ticker 002395.

Financial data from the latest quarterly reports indicates notable revenue growth, with a year-over-year revenue increase of 15.8% for the first half of 2023, totaling approximately RMB 3.2 billion. Gross profit margins have remained stable around 28.4%, showcasing effective cost management and operational efficiency.

In terms of dividends, Jinan Shengquan Group declared a dividend of RMB 0.10 per share in the last fiscal year, reflecting a commitment to returning value to shareholders. The payout ratio stood at about 25%, indicating a balanced approach to reinvesting in business growth while rewarding investors.

The company is also strategically focusing on expanding its international footprint and diversifying its product offerings, which is reflected in its increased R&D expenditure, rising to approximately RMB 180 million in 2023, accounting for approximately 5.6% of total revenue.

Investors looking into Jinan Shengquan Group should consider not only the ownership structure but also the company's consistent performance in the food additive market, its financial health, and its strategy for sustainable growth in upcoming years.

Jinan Shengquan Group Share Holding Co., Ltd. Mission Statement

Jinan Shengquan Group, established in 1996, operates within the biochemical sector, focusing on the research, development, and manufacture of various biopolymers and essential chemical products. The mission statement of the company emphasizes innovation, sustainability, and customer satisfaction. This commitment is reflected in their strategic initiatives aimed at enhancing product quality and environmental responsibility.

The company aims to be a leader in the biopolymer industry through advanced technology and a strong emphasis on R&D. As of 2022, Shengquan reported investing approximately RMB 300 million (around USD 46 million) in research and development, which underscores their commitment to innovation.

Furthermore, their sustainability goals are integral to their mission statement, focusing on reducing carbon emissions and waste. In 2021, Jinan Shengquan Group achieved a reduction in CO2 emissions by 12% compared to 2020 levels, demonstrating progress toward their environmental targets.

As per their operational strategy, Jinan Shengquan Group's mission involves fostering partnerships that enhance customer value. They focus on delivering high-quality products such as biodegradable materials, which align with global trends towards sustainability. The company has a significant market share in the biopolymer sector, capturing approximately 15% of the domestic market as of the end of 2022.

Furthermore, their commitment to customer service is evidenced by achieving a customer satisfaction rate of over 90% in recent surveys, highlighting their focus on responsiveness and quality. The company also emphasizes the importance of talent development, with over 500 employees dedicated to R&D, indicating their belief in human capital as a critical driver of innovation.

The financial stability of Jinan Shengquan Group is reflected in its consistent revenue growth. From 2019 to 2022, their revenue increased from RMB 1.5 billion to RMB 2.5 billion, marking a compound annual growth rate (CAGR) of approximately 25%.

In summary, Jinan Shengquan Group Share Holding Co., Ltd. operates under a mission that prioritizes innovation, sustainability, customer satisfaction, and employee development, which collectively contribute to their growth and leadership within the biopolymer industry.

How Jinan Shengquan Group Share Holding Co., Ltd. Works

Jinan Shengquan Group Share Holding Co., Ltd., established in 1999, operates primarily in the production of food additives, specifically hydrocolloids. The company is recognized for its innovation in biopolymer technology and has expanded its market presence globally.

As of the end of 2022, Jinan Shengquan reported a revenue of approximately RMB 1.2 billion, reflecting a year-over-year increase of 15%. The company's net profit for the same year reached RMB 150 million, demonstrating a profit margin of about 12.5%.

The company has diversified its product offerings, mainly focusing on four categories: gelatins, carrageenan, konjac gum, and other food-grade hydrocolloids. Below is a breakdown of their revenue by product category for the fiscal year 2022:

In terms of production capacity, Jinan Shengquan operates multiple manufacturing facilities across China. The combined annual production capacity is estimated at **30,000 tons**, enabling them to meet both domestic and international demand effectively. The company exports approximately 40% of its products to regions including Europe, North America, and Southeast Asia.

Additionally, the firm invests heavily in research and development, allocating around 5% of its total revenue to innovation. As of 2023, it has filed more than 100 patents related to new biopolymer applications, reinforcing its competitive edge in the market.

Jinan Shengquan’s stock is listed on the Shenzhen Stock Exchange under the ticker code **002395**. The stock price as of October 2023 is approximately RMB 10.50, with a market capitalization of around RMB 8 billion.

The company’s P/E ratio is noted to be around 53, indicating a high growth expectation among investors. Its dividend yield stands at 1.5%, reflecting a commitment to returning value to shareholders.

Jinan Shengquan maintains a strong balance sheet, with total assets reported at RMB 1.5 billion and total liabilities of RMB 800 million, resulting in a debt-to-equity ratio of approximately 0.53.

In response to market trends, the company has also been focusing on eco-friendly production methods and sustainable sourcing of raw materials, aligning with the global push for sustainability in the food industry.

As competition intensifies in the hydrocolloid market, Jinan Shengquan Group aims to expand its technological capabilities further and enhance its value proposition through strategic partnerships and acquisitions.

How Jinan Shengquan Group Share Holding Co., Ltd. Makes Money

Jinan Shengquan Group Share Holding Co., Ltd. operates in multiple segments, generating revenue primarily through the manufacture and sale of various chemical products. The company’s major business lines include the production of gelatine, collagen peptide, and hyaluronic acid, among others. These products find applications in food, pharmaceuticals, cosmetics, and other industries, contributing significantly to the firm's revenue streams.

As of the latest report for the fiscal year ending December 31, 2022, Jinan Shengquan Group reported total revenues of approximately 3.3 billion CNY, marking an increase of 12% from the previous year's revenue of 2.95 billion CNY. The growth is attributed to an expanding market demand for their core products, particularly in the health-and-nutrition sectors.

The company's cost of goods sold (COGS) for the same period was around 2.5 billion CNY, resulting in a gross profit of 800 million CNY and a gross margin of approximately 24.2%. This gross margin reflects the company's operational efficiencies and pricing strategies.

Jinan Shengquan has over the years invested in research and development (R&D). The R&D expenditure for 2022 was reported at 150 million CNY, which was approximately 4.5% of total revenues, aimed at product innovation and improvement. This investment is fundamental in responding to market trends and enhancing product quality, thus ensuring continued competitiveness.

Moreover, Jinan Shengquan has expanded its international reach. In 2022, overseas sales constituted about 30% of total revenue. Key markets include Europe and North America, where the demand for health supplements is on the rise. The company's strategic partnerships and distribution networks in these regions have bolstered its market presence.

The following table provides a detailed breakdown of the revenue segments for Jinan Shengquan Group in 2022:

In terms of operational efficiency, the company has consistently focused on enhancing production capacity. As of the end of 2022, total production capacity stood at 40,000 tons of gelatine and 20,000 tons of collagen peptides annually. This capability positions the company well to meet the increasing global demand.

Profitability is another key aspect of Jinan Shengquan's financial health. The net income for 2022 was approximately 450 million CNY, translating to a net profit margin of about 13.6%. This profitability has allowed for reinvestment in core business operations and growth initiatives.

Looking ahead, the company plans to further diversify its product line and invest more in sustainable practices to align with global trends. The management has set a goal to achieve a 20% increase in revenue by 2025, supported by new product launches and expansion in emerging markets.