Company culture

　　DIC Zhonglu Fruit Juice Co., Ltd. (hereinafter SDIC Zhonglu) is a corporate enterprise with State Development & Investment Corp., Ltd. (SDIC) as the holding corporation. In June 2004, SDIC Zhonglu was listed on the Shanghai Stock Exchange with 65 million shares and the stock code is 600962, which made it the first listed state-holding company on the main board of China in the industry of apple juice concentrate processing. At present, the registered capital of the company is 262.21 million CNY, and the shareholder SDIC holds 44.57% of the shares.

Historical evolution

　  SDIC Zhonglu Juice Co., Ltd. originated from Shandong Zhonglu Food Industry Co., Ltd., which was established in 1991, and was later renamed Shandong Zhonglu Juice Co., Ltd.; at the beginning of 2001, it was changed to SDIC Zhonglu Juice Co., Ltd. on the basis of the original company. The company moved to Beijing on March 15, 2001 and registered with a registered capital of 100 million yuan and a total share capital of 100 million shares. The State Development and Investment Corporation holds 69 million shares of the company, or 69%.

　  In June 2004, the company issued 65 million RMB common shares for the first time, increasing the total share capital to 165 million shares. The State Development and Investment Corporation holds 69 million shares and holds 41.82% of the shares. The company's shares were listed on the Shanghai Stock Exchange on June 22, 2004.

　　In 2006, in order to actively implement the State Council’s "Several Opinions on Promoting the Reform, Opening up and Stable Development of the Capital Market", the "Guiding Opinions on the Reform of Equity Division of Listed Companies" jointly issued by five ministries and commissions, and the "Regarding the Reform of Equity Division of Listed Companies by the China Securities Regulatory Commission" According to relevant regulations, the State-owned Assets Supervision and Administration Commission of the State Council and the State-owned Assets Supervision and Administration Commission of the State Council’s “Notice on Issues Concerning the Management of State-owned Shares in the Reform of Equity Division of Listed Companies” and other relevant regulations, the State Development and Investment Corporation, based on actual conditions, will hold some non-tradable shares for every 10 shares. The consideration was paid to shareholders of tradable shares for 3.5 shares in exchange for non-tradable shares, and the share structure reform was carried out. After the completion of the share reform, the total share capital of the company remains at 165 million shares, and the number of shares held by the State Development and Investment Corporation has dropped to 53,302,500 shares, representing a shareholding ratio of 32.30%.

In 2007, based on development strategy considerations, the company issued 36.7 million additional shares to the controlling shareholder, the State Development and Investment Corporation, and used the raised funds to build and expand the company’s investment projects to expand the company’s main business. The company's total share capital has become 201.7 million shares, and the State Investment Corporation holds 44.37% of the shares.

　　In July 2012, with the approval of the general meeting of shareholders, the company converted the capital reserve into share capital by converting 3 shares for every 10 shares. After the transfer, the company's total share capital became 262.21 million shares, and the shareholding ratio of SDIC remained unchanged.

　  In July 2015, in order to protect the interests of listed company shareholders and maintain the stability of listed company stock prices, the company’s controlling shareholder, the State Development and Investment Corporation, actively responded to the call of the China Securities Regulatory Commission and the State-owned Assets Supervision and Administration Commission and increased its holdings of 499,926 company shares in the secondary market. After the increase, the total share capital of the company remains unchanged, and the shareholding ratio of SDIC increased to 44.56%.

Organizational structure

　　The company has established a relatively complete corporate governance structure, and formulated rules based on the "Articles of Association", "Rules of Procedures for the General Meeting of Shareholders", "Rules of Procedures for the Board of Directors", and "Rules of Procedures for the Board of Supervisors", covering the chairman, general manager, independent directors, A series of complete management systems such as the secretary of the board of directors and the working rules of various special committees have clarified the responsibilities, working procedures and due obligations of the shareholders meeting, the board of directors, the board of supervisors and the management in terms of decision-making, implementation, supervision, etc., and formed powers Institutions, decision-making institutions, operating institutions and supervisory institutions have a scientific division of labor, their respective responsibilities, and effective checks and balances to ensure that the company’s institutions and members can exercise their rights and perform their duties in accordance with the rules and regulations.

Operation Management

　  SDIC Zhonglu Juice Co., Ltd. is the first domestic enterprise to introduce a concentrated apple juice production line. The production plants are located in Shandong, Shanxi, Shaanxi, Hebei, Liaoning, Jiangsu, Yunnan and other advantageous apple producing areas. The export rate of juice products more than 80%. As an export-oriented enterprise, the company attaches great importance to the construction of food safety management and quality control systems, SDIC Zhonglu was the 1st enterprise that was approved by CIQ and CQC for HACCP Certificate, ISO9000 quality control system in China, has passed the U.S. Food and Drug Administration (FDA) unannounced inspection time and again. As a state-controlled listed company, SDIC Zhonglu pays attention to fulfilling its social responsibilities while actively fulfilling its economic responsibilities. SDIC Zhonglu is an experienced enterprise and has been focusing on juice concentrate industry for more than 30 years with the title of Vice with the title of Vice President Unit of China Chamber of Commerce of I/E of Foodstuffs, Native Produce and Animal By-products(CFNA) Council, Chairman Unit of China Chamber of Juice of CFNA, Vice President Unit of Juice branch in CBIA, Membership of Agricultural Industrialized Leading Companies Associationand Beijing high-tech enterprises. SDIC Zhonglu has set up a globalized marketing network by taking Beijing head office as sales center and American office as service arm for North American customers.By having significant market shares through the years on United States, Japan, the European Union, Australia, Russia, Canada and other regions. SDIC Zhonglu has been building up a stable business relationship with some world famous figures of food and beverage in a long run.

Technical Innovation

　　SDIC Zhonglu Juice Co., Ltd. has focused on fruit juice production for more than 30 years, has rich experience in concentrated fruit and vegetable juice production and product quality control, continues to build a quality control system that is in line with the world, and has an advanced quality control laboratory and large storage capacity The company’s cold storage ensures the sustainable development of the company with scientific and technological strength. Especially in terms of food safety management, the company has established a complete food safety and quality management system to effectively ensure the safety and quality control of all aspects from the supply of raw and auxiliary materials, production and processing, finished product storage, logistics and transportation, and insist on providing consumers with high quality Quality concentrated fruit and vegetable juice products are our responsibility.   SDIC Zhonglu was the 1st enterprise that was approved by CIQ and CQC for HACCP Certificate, ISO9001 quality control system in China, as well as has passed the U.S. Food and Drug Administration (FDA) unannounced inspection time and again, and KOSHER. The quality of product has reached standards of all countries in the world and Customer indicator requirements.

　　The company has a number of independently developed core technologies and product results. At present, the company’s main products are divided into fruit juices and vegetable juices: fruit juice products include concentrated apple juice, concentrated apple juice, concentrated pear juice, concentrated jujube juice, and decolorized juice , Apple fructose, pear fructose, apple flavor, etc.; vegetable juice products include concentrated sweet potato juice, concentrated cucumber juice, concentrated carrot juice, concentrated snow lotus juice, concentrated celery juice, etc. The company's products are widely used as base materials or ingredients in food and beverage production industry. At present, the company has obtained 8 national invention patents, 1 American invention patent, and 7 provincial invention and scientific and technological progress awards.

　　The SDIC Zhonglu Rushan R&D Center was built by the company in 2013, with a total investment of 59.9 million yuan and an area of 2,000 square meters. It is a domestic first-class comprehensive fruit and vegetable juice processing R&D center, and it is also recognized by the Ministry of Agriculture as a “National Agricultural Product Technology R&D Center”. Professional Sub-center". In the past two years, the R&D center has developed a variety of new products such as concentrated cold potato juice, concentrated purple potato juice, concentrated peach juice, concentrated hawthorn juice, multi-variety beverage concentrate, NFC apple juice, peach puree and blueberry puree. Continue to rise, and make active efforts to maintain the company's competitiveness.

Safety in production

　　Safety is the lifeline of enterprise development. The company has always been guided by the safety production policy of "safety first, prevention first, and comprehensive management", adhered to the safety production concept of "safe development, system management, and focus on risk", and improved the safety management system. Strengthen safety awareness and skill training, strengthen on-site management and hidden danger investigation.

　　In order to implement the work of standardization of production safety in the enterprise, the company has formulated the implementation plan of standardization of production safety, requiring all branches and subsidiaries to actively carry out the work of standardization of production safety. The regular and repetitive work in the production process is standardized as much as possible through the method of customization and regulation. Through standardization, employees can do it at one time, which will not only help the company improve the efficiency of safety management, but also ensure the safety of employees.

　　In order to strengthen employee safety awareness and improve employee safety skills, the company regularly conducts safety training every year, organizes safety knowledge contests, welding mechanic skills contests and other activities, and conducts emergency drills such as fire fighting, emergency escape, and liquid ammonia leakage. Ensure that employees respond consciously to potential safety hazards that may arise during production, and ensure their production safety.

Social Responsibility

　　As a state-owned holding company, the company has a strong sense of social responsibility and always adheres to the business philosophy of "for shareholders, society, and employees". It is our responsibility to provide users with safe and reliable concentrated fruit juice products to ensure food safety and continuously improve quality control management. The system focuses on production safety, energy conservation, emission reduction, and environmental protection, and advocates the company and its shareholders, customers, employees, suppliers and other stakeholders to grow together, achieve harmony and win-win results, actively perform social responsibilities, and increase social contribution.

　　The company gives priority to the interests of customers, and strictly controls safety and quality in all links to ensure safety and reliability of final products: the supply of raw and auxiliary materials, production and processing, storage of finished product, and logistics. In addition, with customer demand as the guidance, we will strive to improve product diversification, actively develop and investigate new concentrated fruit and vegetable juices with higher technology and good market prospects, to provide customers with more choices to meet their diverse needs. Besides, the company has established a complete quality management system and has a complete set of customer complaints and claims management procedures to ensure that the rights and interests of customers and end consumers are not to be harmed.

　　The company always adheres to the "people-oriented" principle, and regards safeguarding the interests of all employees as one of its priorities. We attach much importance to the improvement of employees' professional quality and ability, and strive to create a growth platform and rising space for our employees; actively create a healthy working atmosphere for employees to ensure their occupational health and legal rights. In spare time, rich cultural activities help our people to promote work-life balance.

　　Practicing social responsibility is the mission of company with sense of social responsibility. As an export-oriented enterprise, the company always adheres to high standards and strict requirements, and actively cooperates with customers to complete social responsibility audits, and has been affirmed by the certification company. In addition, it promotes the traditional virtues of the Chinese nation and enhances employees' sense of social responsibility by organization of voluntary tree planting and donations to disaster-stricken areas.

　　　Adhering to the concept of sustainable use of resources, the company continues to innovate to improve the efficiency of resource use. In terms of waste water utilization, actively promote the steam water recycling program, reuse the treated sewage for environmental greening, greatly reduce the impact on the environment, and save water resources; in terms of waste resources, the pomace and cinder after production are sold to feed and building materials companies to achieve the effect of circular economy.

Strategic Development

　　After the financial crisis, the global economy has entered an era of major adjustments, changes and transformations. After several years of recovery, certain progress has been made in the rebalancing of the global economy, and the evolution of the world economic structure has shown new characteristics. At the same time, after more than 30 years of rapid growth, China's economy has shown a slowdown in growth. Transformation and upgrading, deepening reforms, and reforms have become the main theme of macroeconomic policy. These new characteristics of the international and domestic economic environment present both opportunities and challenges for SDIC Zhonglu.

　　As far as the company itself is concerned, after years of development, while achieving certain achievements, some shortcomings have also appeared in its operation. As an export-oriented enterprise, the company relies heavily on the international market. The company's sales and operating performance are more affected by fluctuations in the overseas juice market, and its ability to resist risks is relatively weak. The company will use the country's economic transformation and upgrading and the reform of state-owned enterprises as an opportunity to achieve profit growth through internal industrial integration and overseas resource utilization, to steadily expand its market share.

　　　The company has always set its development vision to become a comprehensive fruit and vegetable processing enterprise with strong strength and greater influence in the world, providing customers with the best services and achieving the best benefits. In the future, the company will focus on expanding the scope of business and business areas at home and abroad, obtaining the synergistic benefits of different business units, and continuously advancing toward its own development vision, and strive to become a comprehensive group of international fruit processing and trading.