Product Innovation and Production

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.

While we outsource some of our lower-margin snack products to snack food processing manufacturers, we continue to upgrade our production lines to produce higher-margin snack products in-house and raise efficiency through higher automation. Currently, we have a total installed annual production capacity of approximately 13,440 tonnes of snack products.

Zixin Biotech’s high-tech manufacturing facility for the production of functional food with an installed annual production capacity of 35,000 tonnes announced in March and August 2021, is underway. Whilst the infrastructure of the building is being completed, the production equipment and machinery will be gradually installed and production of functional food such as purple sweet potato powder that can be used in the bakery industry, will be carried out in the financial year ending 31 March 2024 (“FY2024”).

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.