Zixin Group’s wholly-owned subsidiary, Fujian Zilaohu Food Co., Ltd. (“Zilaohu”) focuses on continuous innovation and production techniques of our mainstay sweet potato snack products, to keep abreast of consumers’ preferences and production efficiency.
We continue to keep ourselves abreast with consumer preferences and snack food trends in China and overseas, and invest in R&D on the recipes as well as production techniques of higher nutritional value snack food and functional food products. These efforts will not only broaden our product portfolio and strengthen our market position of healthier and higher nutrition food products, but also could potentially generate higher revenue for Zixin Group.
Currently, we have a total annual production capacity of approximately 13,440 tonnes of snack products, which we achieved a utilisation rate of 85% in FY2024 as compare to 75% to 80% in FY2023 during the peak season.
Zixin Biotech’s high-tech manufacturing facility for the production of functional food with an annual production capacity of 35,000 tonnes announced in March and August 2021, is well underway. The planned expansion into high-tech manufacturing and research capabilities has progressed to interior renovation after the receipt of the property certificate and permission to proceed with the installation of equipment and machinery in March 2024. Manufacturing is expected to begin in stages at the end of September 2024 for trial production of functional food products using extraction technique to recover nutritional content from sweet potatoes, and to produce sweet potato processed products including functional food products.
We will also be installing solar panels on the roof of the building as part of our sustainability efforts – using renewable energy to generate electricity for the operations in the building, which will also translate to utility cost savings.
