Zhejiang Dongri: The company's business adopts a "1+2+N" layout

Securities Daily, March 18 — When asked by researchers, Zhejiang Dongri stated that the company’s business follows a “1+2+N” layout. “1” refers to the wholesale trading market for agricultural and sideline products. The company’s Wenzhou Louqiao Agricultural and Sideline Products Logistics Industrial Park mainly focuses on vegetable and fruit wholesale. By 2025, the Wenzhou regional markets are expected to handle 1.3 million tons of various agricultural products, including vegetables, fruits, and meats, with a transaction volume of about 10.3 billion yuan. Relying on the Wenzhou market, the company has been expanding outward in recent years, establishing projects in Zhejiang Longyou, Zhejiang Changshan, Shanxi Linfen, Heilongjiang Harbin, and others. In the coming years, the company hopes to replicate the success model of Wenzhou in its outward expansion projects, providing new growth momentum for market management services. “2” refers to fresh food delivery and soybean product manufacturing and processing. As downstream industries of agricultural wholesale markets, fresh food delivery businesses are characterized by dispersed markets, generally small operators, and low levels of informatization. Although the company’s fresh food delivery business has the highest market share in Wenzhou, it accounts for only about 5%. Leveraging its technological advantages in informatization, the company’s market share continues to grow. Currently, the company’s soybean product manufacturing and processing mainly focus on the main urban area of Wenzhou, with a market share of about 80% and high consumer recognition. As the new factory for Snow Top soybean products begins operation and capacity increases, the business will expand to surrounding counties and cities in Wenzhou, bringing new revenue to the company. “N” indicates that in recent years, the company has prioritized enhancing its technological innovation capabilities. Around its core business, it has expanded into multiple sectors along the industry chain, including digital industry output, precise nutritional meal R&D and production, medical technology, supply chain services (agricultural and sideline products), and modern breeding and farming. Agricultural product wholesale markets belong to the agricultural trade circulation sector, connecting upstream producers of agricultural products (including primary agricultural products) and serving downstream end consumers. Therefore, growth in agricultural product supply driven by modernization upstream and increased downstream consumer demand will effectively promote the continuous growth of total agricultural product circulation. China has a wide variety of agricultural products but relatively low standardization, so offline agricultural wholesale markets remain the main channel for agricultural product circulation. With economic and social development and urbanization, traditional agricultural wholesale markets are expected to transform into modern and intelligent markets. In recent years, the application and deep integration of information technology in the agricultural product circulation field have increased. In the future, the level of informatization and digitalization will become one of the core competitive advantages in the agricultural product circulation sector.

(Source: Securities Daily)