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Xuzhou Zhengchang Feed Co., Ltd.: An industry leader emerging from Zhengchang Group
Xuzhou Zhengchang Feed Co., Ltd.: An Industry Leader Emerging from Zhengchang Group
The growth history of Xuzhou Zhengchang Feed Co., Ltd. is a remarkable journey of a company from being incubated by its parent company to independent operation, and then to becoming an industry benchmark. As part of Zhengchang Group, it has drawn on the deep technical accumulation and resource support of the parent company; after becoming independent, it has opened up its own glorious chapter through innovation and hard work.
Startup: Strategic Layout of Zhengchang Group
In the 1990s, China's feed industry entered a period of rapid development, with an increasing demand for high-quality feed products in the market. Zhengchang Group, a leading enterprise known for feed machinery manufacturing, keenly sensed the synergy between feed production and equipment manufacturing, and at the invitation of the Pizhou Grain Bureau, invested in the establishment of Xuzhou Zhengchang Feed Co., Ltd. in 1995.
The establishment of Xuzhou Zhengchang is an important part of Zhengchang Group's diversified development. Relying on the technical advantages and equipment support of Zhengchang Group, Xuzhou Zhengchang quickly built an efficient and modern feed production line, focusing on the production of livestock and poultry feed, aquatic feed, and other fields in its early stages. Zhengchang Group not only provided key equipment but also sent a professional team to assist Xuzhou Zhengchang in establishing a complete production management system, laying a solid foundation for its early development.
Development: Relying on the Parent Company, Scale Expansion and Market Development
After its establishment, Xuzhou Zhengchang Feed Co., Ltd. quickly opened up the market with the technical and resource support of Zhengchang Group, gaining wide recognition in Jiangsu and surrounding provinces. As market demand continued to grow, the company gradually expanded its production capacity and product line.
In 2006, Xuzhou Zhengchang established a branch in Huai'an, marking an important milestone in the company's development. The establishment of the branch not only significantly increased production capacity but also further expanded market coverage. By this time, Xuzhou Zhengchang's business had expanded from the local area of Xuzhou to multiple provinces including Shandong, Zhejiang, and Anhui, establishing its leading position in the regional market.
Independence: A Key Decision
In the fifteen years following its establishment, Xuzhou Zhengchang Feed Co., Ltd. has always been an important business segment of Zhengchang Group. With changes in the market environment and the rapid maturation of the feed industry, Zhengchang Group made a strategic adjustment to the company's business structure, planning to operate the feed production segment independently.
In 2010, some external investors recognized the development potential of Xuzhou Zhengchang and proactively proposed a high-priced acquisition intention. However, Zhengchang Group's chairman, Hao Bo, did not choose external capital but first thought of Yuan Zhenhu, the general manager of Xuzhou Zhengchang. He knew that Yuan Zhenhu had devoted a lot of effort to the company's development over the years and had a clear vision for the company's operational status and future development.
Chairman Hao Bo personally approached Yuan Zhenhu to ask if he was willing to take over the company. After Yuan Zhenhu expressed his interest, Hao Bo proactively proposed to reduce the transfer price by 2 million yuan to support the smooth transition of the company, helping Yuan Zhenhu successfully complete the acquisition. Yuan Zhenhu was deeply moved by this trust and sincerity, and resolutely accepted the challenge, officially taking over Xuzhou Zhengchang Feed Co., Ltd.
This decision not only preserved the integrity and cultural heritage of the enterprise but also provided important guarantees for subsequent rapid development. The support of Zhengchang Group laid a solid foundation for the independent development of Xuzhou Zhengchang.
Takeoff: From Independence to Listing
After independence, Xuzhou Zhengchang Feed Co., Ltd. entered a new stage of rapid development. Under the leadership of Yuan Zhenhu, the company vigorously promoted technological innovation, continuously optimized the layout of production lines, and increased investment in research and development, continuously launching high-quality livestock and poultry feed, aquatic feed, and concentrated feed products, quickly capturing the market. In May 2015, Xuzhou Zhengchang Feed Co., Ltd., as part of Jiangsu Shichang Agricultural and Animal Husbandry Co., Ltd., successfully listed on the Beijing New Third Board.
This marked the official entry of Xuzhou Zhengchang into the capital market, bringing new opportunities for the company in technological upgrades, market expansion, and brand enhancement.
After going public, Xuzhou Zhengchang further improved its production line layout and established a stable sales network in multiple provinces, with its brand influence continuously increasing, becoming a benchmark enterprise in the industry.
Review and Outlook: Rooted in Zhengchang, Moving Towards the Future, Continuously Climbing New Heights
Looking back at the development history of Xuzhou Zhengchang Feed Co., Ltd., its brilliance cannot be separated from the support of Zhengchang Group. From the initial equipment and technical support from Zhengchang Group to the independent exploration of Xuzhou Zhengchang after independence, the two companies have demonstrated a spirit of cooperation and win-win in the process of mutual achievement.
Despite having achieved many accomplishments, Xuzhou Zhengchang has not stopped its pace. In the future, the company plans to further expand the domestic market and actively explore international market opportunities. At the same time, it will continue to focus on product diversification, technological innovation, and ecological farming to seize the initiative in the wave of industry transformation and upgrading.
Conclusion: From Zhengchang to Glory
The growth of Xuzhou Zhengchang Feed Co., Ltd. is a classic case of Chinese enterprises exploring diversified development and independent operation. From being incubated by Zhengchang Group to independence and then to industry leadership, this journey not only witnesses the joint efforts of the two companies but also provides valuable experience for the future of China's feed industry.
