The C&S segment focuses on (i) the cultivation, management, and supply of high-quality sweet potato seedlings; (ii) the provision of farming solutions such as supply of specialised agricultural materials and technical support for cultivation; (iii) the sale of fresh sweet potatoes sourced from our contracted farmlands, where we provided the seedlings, farming solutions and technical support, and (iv) the trading and sales of fresh sweet potatoes.
Zixin Group, through its subsidiary, Liancheng Dizhongbao Modern Agriculture Development Co., Ltd. (“Dizhongbao”), has entered into several purchase contracts with local co-operatives that work directly with local farmers to secure supplies of selected high-quality fresh sweet potato varieties. Under these agreements, Dizhongbao will have the first right of refusal to purchase the supply of fresh sweet potatoes. Dizhongbao currently manages a seedling nursery covering an area of 431.2 mu (approximately 287,466 m² or 28.7 hectares) and prioritises supplying sweet potato seedlings to farmland overseen by local co-operatives. Any surplus seedlings grown in excess of this requirement will be sold to thirdparty farmers in the vicinity of Liancheng County.
Our primary objective in cultivating sweet potato seedlings and developing in-house cultivation solutions is to ensure traceability, food safety, and a consistent supply of highquality fresh sweet potatoes. This strategy aims to improve harvest yields of the farmers managed by the local cooperatives and support our Group’s sales of fresh sweet potatoes. Additionally, it aims to enhance our highermargin processed sweet potato foods and functional foods for our range of proprietary products.
Zixin Group also offers a comprehensive suite of cultivation solutions, which include soil enhancement, fertilisers, and R&D of patented sweet potato seedling varieties. These solutions assist individual farmers in increasing their crop yields and producing high-quality sweet potatoes.
Additionally, the outsourced services provided by the third-party-operated smart warehouse, which encompass processes such as curing and saccharification, automated washing, sorting, packing, and cold storage, significantly enhance Zixin Group’s front-end operational efficiency while reducing spoilage. This process, in turn, results in a higher volume of fresh sweet potatoes being available for sale, which possess an extended shelf life, thereby mitigating price competition during the harvesting season.
