Guoquan Industrial Acquires Huading Cold Chain, Strengthening Leadership in Catering Supply Chain Logistics

According to the China Federation of Logistics and Purchasing, China’s cold chain logistics demand totaled 191 million tons in the first five months of 2024, a year-on-year increase of 4.2%. The total value of cold chain logistics reached ¥2.76 trillion, up 4.0%.

With a trillion-yuan market size and rapid growth, the industry is full of potential, attracting major players and publicly listed companies.

Top News recently reported that Huading Cold Chain Technology, ranked among the top 100 cold chain companies in China, has been fully acquired by Guoquan Industrial. Guoquan Industrial is a key shareholder (32.08%) of Guoquan Food (Shanghai) Co., Ltd., a Hong Kong-listed company (Stock Code: 2517).

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Huading Cold Chain Fully Acquired by Guoquan Industrial

Business registration records show that Huading Cold Chain Technology is now 100% owned by Guoquan Industrial (Shanghai) Co., Ltd. This is corroborated by a July 22 announcement from Guoquan Food, stating that its board had approved a service procurement framework agreement with Huading Cold Chain. Under this agreement, Huading Cold Chain will provide integrated digital cold chain warehousing and logistics solutions for Guoquan Food.

As of July 22, 2024, data from Tianyancha shows that China has over 49,000 cold chain logistics companies, with more than 2,500 located in Henan Province, ranking fifth nationwide.

Why Did Huading Cold Chain Stand Out?

Founded in 2019, Huading Cold Chain Technology positioned itself as a catering supply chain service platform from the outset. It offers integrated services, including cold chain warehousing, inventory management, food safety control, and big data applications.

Over five years, Huading has established a robust nationwide presence, setting up 22 provincial-level regional centers and operating 2,890 transportation routes. Its distribution network covers 290 cities and nearly 2,000 counties across China, excluding Hong Kong, Macau, Taiwan, and Tibet.

Huading leverages its self-developed Huading Cloud SAAS platform, enabling daily order processing of up to 800,000 items. This digital system significantly enhances cold chain efficiency, improving order fulfillment and customer experience. The company has already provided high-quality cold chain services to over 200,000 chain restaurant locations.

Industry Leadership and Recognition

At the 16th Global Food Cold Chain Conference in June 2024, Huading Cold Chain ranked 14th on the national top 100 cold chain list, marking its fourth consecutive appearance since its establishment. Industry analysts regard Huading as a rising leader in China’s cold chain logistics sector.

Increasing Investment in Cold Chain by Listed Companies

The cold chain logistics industry plays a critical role, especially in food and pharmaceutical sectors. Besides Guoquan, several other publicly listed companies are making significant investments in the sector:

  • Changhong Meiling (000521.SZ) focuses on home appliances and has expanded into biomedical products, emphasizing “life sciences and cold chain.”
  • Snowman Co., Ltd. (002639.SZ) specializes in compressors and central air conditioning systems, aiming to improve China’s cold chain technology ecosystem.
  • Haier Cold Chain (603187.SH) develops and sells commercial cold chain equipment for fast-moving consumer goods industries like beverages and frozen foods.

Strong Synergies: A Potential First Publicly Listed Catering Supply Chain Platform

China’s catering industry has entered a “10,000-store era.” Major chains such as Mixue Bingcheng, Wallace, and Luckin Coffee have thousands of outlets, supported by robust supply chains. For instance, Mixue Bingcheng generates over 87% of its revenue from supply chain services.

The acquisition of Huading Cold Chain by Guoquan Industrial strengthens both companies’ positions. Huading will support Guoquan’s expansion domestically and internationally, while Guoquan’s resources will bolster Huading’s capabilities. This collaboration positions Huading to become the first publicly listed catering supply chain platform, unlocking significant market potential.

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Post time: Nov-15-2024