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A Good Start for CoStone’s 2020:Ganyuan Food’s IPO Approved

2020.03.31 CoStone Capital Views:


March 19, 2020, marks a milestone for Ganyuan as its IPO was approved by CSRC. The approval also brought CoStone a good start to the new year.


Within the reporting period, Ganyuan Food’s operating income and net profits enjoy a stable increase. The net profit grows at an even greater rate of 93%, and 26% in 2018 and 2017.


According to Euromonitor data, China’s package food market was 231.6bn USD in 2017 and 253.2bn USD in 2019; savory snacks occupied about 20bn USD with a compound growth rate of 7.7% from 2011 to 2016.


By “upgrading” traditional street food and hand-made food, Ganyuan makes beans and peas a one billion business. Standardization and brand name are also part of the success.


Ganyuan Food’s modern technologies to produce savory food are highly commercialized. Automatic production lines for roasted seeds greatly improve the company’s productivity, food quality, and safety.



Ganyuan Food’s rigorous product traceability system monitors the whole process from raw material procurement to finished product sales, allowing it to trace products back to their origins and control the whole process in a standardized way.


Over 1000 stable and professional seller teams are working for the company. Their retail stores can be found in shopping malls in the core business circle to small stores in supermarkets, chain stores, schools, and transport stations.


As for online business, the company has a presence on over ten e-commerce platforms like Tmall, and JDcom. Ganyuan Food, based on the large user scale on these platforms, has gone into the hearts of all types of consumers.

The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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