BUSINESS CHINA DAILY HONG KONG EDITION Wednesday, June 16, 2021 right track Rice dumpling maker Chip shortages lower auto sales Wufangzhai targets $166m from IPO in Shanghai May figure down By Zhu wenqian pace with changes in the highly com- 3% year-on-year [email protected] petitive market,” Zhu said. to 2.13m vehicles, Last year, Wufangzhai sold 366 Wufangzhai, a time-honored glu- million units of zongzi, accounting the first decline tinous rice dumpling brand, is plan- for nearly 70 percent of its revenue. ning to raise 1.06 billion yuan ($166 It has also diversified its portfolio since April 2020 million) from an initial public offer- into mooncakes, glutinous rice balls ing on the Shanghai Stock Exchange and other items. By Li Fusheng and Ma Si later this year, the company said in a As one of the largest retailers of regulatory filing. zongzi, from 2018 to 2020, Wufang- Vehicle sales in China fell for the Zhejiang province-based Wufang- zhai posted sales revenues of 2.42 bil- first time in 14 months in May as zhai will be the first Chinese gluti- lion yuan, 2.51 billion yuan, and 2.42 manufacturers delivered fewer nous rice dumpling, or zongzi, billion yuan, respectively. The compa- vehicles to the market due to global company, to raise funds from the ny achieved net profit of 97 million semiconductor shortages, accord- A-share market, indicating the yuan, 163 million yuan and 142 mil- ing to industry data. growing popularity of traditional lion yuan, respectively during the Last month, 2.13 million vehi- food products in the country. Zong- past three years. Due to the COVID-19 cles were sold in the world’s larg- zi is a traditional food served during pandemic, its revenue declined last est vehicle market, down 3.1 the Dragon Boat Festival. year. percent on a yearly basis, the Chi- The company, which also runs a Compared with other time-hon- na Association of Automobile chain of restaurants in Zhejiang and ored brands, Wufangzhai has made Manufacturers said. It was the Shanghai, said it would use the IPO some attempts in advertising and first decline in China since April proceeds to increase research and marketing. Last year, the gross prof- 2020, when the country’s vehicle development investment and build it margin of the company came in at market started to rebound from an intelligent food workshop. 44.57 percent, higher than other the COVID-19 pandemic. Wufangzhai, founded in 1921, said industry players. The CAAM also said it was cau- the proceeds would also be used to Other major retailers of zongzi in tiously optimistic on the perform- establish a smart and digitalized China include time-honored brand ance of the sector in the remaining industrial park and for upgrade of Guangzhou Restaurant, and frozen months. Visitors admire a car installed with domestic chips during an expo in Nanjing, Jiangsu province. its production base in Chengdu, food retailers Zhengzhou Sanquan Shi Jianhua, deputy secretary- long wei / for china daily Sichuan province. Foods Co Ltd and Zhengzhou Sinian general of the association, said Currently, the company has two Food Co. By 2024, domestic zongzi global chip shortages have been production bases in Chengdu and in sales are expected to reach 10.29 bil- hurting the industry since late last will start easing in the third quarter parts supplier Bosch opened a $1.2 ary to May to 950,000 units, over Jiaxing, Zhejiang. By the end of last lion yuan, said a report published by year. “The impact on production is and the overall situation will turn for billion chip plant in Dresden, Ger- three times the figure a year ago. year, Wufangzhai had 474 stores in China Food Magazine. continuing, and the sales figures in the better in the fourth quarter. many, saying that its automotive The China Passenger Car Associ- China, with most of them located in Among the top 10 zongzi brands June will be affected as well,” he Chipmakers and auto suppliers chips are expected to roll out in ation was even more optimistic East and Central China. It will con- in China, Wufangzhai is the market said. are already working around the September this year. about the full-year performance tinue to open new stores in the next leader. It is followed by Daoxiang- Electric car startup Nio delivered clock to solve the problem, while Despite the sales fall in May, the and hiked its new energy vehicle few years and has joined hands with cun, a time-honored food brand 6,711 vehicles in May, up 95.3 per- authorities are improving coordi- CAAM said it is optimistic about sales target to 2.4 million units this major e-commerce platforms such from Beijing, according to a report cent from the same month last year. nation among companies in the the market’s whole year perform- year. as Tmall and JD. by Guangzhou-based consultancy The carmaker said its deliveries industrial chain for better effi- ance because of China’s economic Cui Dongshu, secretary-general “Wufangzhai focuses on making iiMedia Research. would have been higher if not for ciency. resilience and soaring sales of new of the CPCA, said his confidence seasonal food, and its sales often In the next three years, Wufang- the chip shortages and logistical The Ministry of Industry and energy cars. came from such vehicles’ growing fluctuate with seasons. The product zhai said it would continue to inno- adjustments. Information Technology, the Shi said the association is consid- popularity in the country and their structure of Wufangzhai is relatively vate and launch more high-end SAIC Volkswagen, one of the nation’s top industry regulator, has ering raising the estimate for this increased exports to overseas mar- simple, which restricts its profitabil- products. Featuring glutinous rice, country’s leading carmakers, has asked local automobile makers and year’s sales growth to 6.5 percent kets. ity in a way,” said Zhu Danpeng, a it will mainly grab business oppor- already cut output at some of its semiconductor companies to com- from 4 percent, which was made at Nio said it will accelerate efforts food industry analyst. tunities emerging from traditional plants, especially production of pile a brochure to better match the start of the year. in June to make up for the loss “In zongzi sector, there are not Chinese festivals such as the Spring high-end models that require more their supply and demand of auto “Overall vehicle sales this year caused last month. The startup many large-scale or renowned com- Festival, Mid-Autumn Festival, the chips, according to Shanghai Secu- chips. are likely to reach 27 million units, said it will maintain the delivery panies, and most are regional brands. Lantern Festival and the Dragon rities Daily. The ministry is also encourag- while sales of new energy vehicles target of 21,000 units to 22,000 Time-honored brands need to keep Boat Festival. The China Auto Dealers Associa- ing insurance companies to roll may touch 2 million units, up from units in the second quarter of this tion, another industry association, out insurance services that can our previous estimate of 1.8 mil- year. Its models will be available said inventories are declining boost local automakers’ confi- lion,” said Shi. in Norway in September. Tesla steadily at many automobile deal- dence in using indigenously-pro- Statistics from the association sold 33,463 China-made vehicles ers and some models are in short duced chips, so as to help ease show that 10.88 million vehicles were in May, of which a third were supply. chip shortages. On Friday, four sold in China in the first five months, exported. Cui estimated that Tes- Jiemian, a Shanghai-based news Chinese chip design companies up 36 percent year-on-year. la’s exports from China would hit portal, said SAIC GM’s production in inked agreements with three local Sales of electric cars and plug-in 100,000 units this year. May fell 37.43 percent to 81,196 vehi- insurance companies to pilot such hybrids reached 217,000 units in cles primarily due to chip shortages. insurance services. May, up 160 percent on a yearly Contact the writers at However, Shi said the shortages Earlier this month German auto basis, bringing the total from Janu- [email protected] China, Central Asian nations to spur green ties

By zhang yue stantial exports of which have been Liang said. “China has done these banks such as the Asian Infrastruc- [email protected] the mainstay of growth over the successfully and has tremendous ture Investment Bank and the past decade. The relatively slower experiences to share with Central Asian Development Bank can come China should further strengthen pace of economic transition and Asian countries.” out with green financing tools to its bilateral engagements with Cen- industrial upgrade has contributed Liang said that for example, incentivize the industrial transition Rice dumplings made by Wufangzhai are on sale at a store in Bei- tral Asian nations and use its expe- to greater carbon emissions in countries like Kazakhstan which in Central Asian countries. jing. provided to china daily riences and advantages in capital these countries, he said. are rich in clean energy like wind However, economic growth and and talent to foster green, sustaina- The COVID-19 pandemic has power and photovoltaic resources transition has been a tough balan- ble growth in the region, especially forced many countries to deal with should invest more in building new cing act, particularly in the first half Briefly in the post COVID-19 era, an expert economic fallout and liquidity facilities in these areas and elimi- of the year due to the higher global said. crunches, and Central Asian coun- nate conventional, high carbon commodity and raw material prices. In terms of economic structure, tries are no exception. Despite the emission industries. Liang said such price rises will Liaoning’s 5G base infrastructure and facilities. most of the Central Asian countries economic setbacks, these countries, China can share its experiences, pose a challenge for the green stations increase are still at the lower end of the pro- like everyone else, will also be technology and management skills growth of Central Asian countries, SF Airlines expands duction and value chain and are required to share their responsibili- with these countries and help as most of these countries are large Northeast China’s Liaoning prov- heavily dependent on natural gas ty in the global efforts to achieve the transform conventional industries exporters of bulk commodities and ince has built 26,500 5G base sta- fleet to 66 freighters and coal exports for growth, said Sustainable Development Goals by to new ones due to its head start. raw materials. tions to date, amid efforts to SF Airlines, China’s largest air cargo Liang Ziqian, deputy director of the 2030 and keep the 1.5-degree goal The nation has already taken the “Price swings in bulk commodity accelerate the upgrade of its digital carrier, said its fleet size has contin- Central Asia Regional Economic of the Paris Agreement within lead in growing the digital econo- prices have impacted growth in Cen- infrastructure, local authorities ued to expand steadily, with the lat- Cooperation Institute. reach by 2050, he said. my, a pathway that effectively redu- tral Asian countries and are visible in said on Tuesday. The 5G network est count at 66 all-cargo freighters. Speaking at an international “Economic structures of Central ces energy consumption for many their per capita GDPs,” Liang said. now covers all urban areas in Lia- The airline on Monday welcomed a forum in Beijing recently, Liang Asian countries will remain conventional enterprises. Relative “The choice for them currently is oning, as well as key industrial B767-300BCF all-cargo freighter, its said that economies involved in the unchanged for quite some time, experiences and talents can be that they can keep benefiting from parks and enterprises, said the pro- 66th aircraft into the fleet. The B767- Belt and Road Initiative, including and this indicates that their carbon shared with Central Asian coun- the rising prices without making any vincial industry and information 300BCF long-range widebody Central Asian countries, are facing emissions will not increase imme- tries, he said. effort, or they can use price rises as a technology department. Liaoning freighter will help SF Airlines to severe challenges in cutting carbon diately. But more adjustments need Globally, the growth of new window of opportunity to inject plans to build 25,000 5G base sta- expand its global network. emissions. Most of these countries to be made in optimizing and industries requires extensive finan- newly earned funds into greener, tions this year to accelerate the con- are rich in energy resources, sub- upgrading their current structure,” cial support. Regional development cleaner industries.” struction and development of its 5G Xinhua

ling wrapped in reed leaves, have try’s central bank and legally backed put up “Pay with Digital RMB” by the government as an alternative E-CNY trials confirm potential for secure payments signs. to paper money. A merchant surnamed Pan said During the pilot programs in cit- After winning a prize in Beijing’s 22 million, handed out 40 million need to spend the money by Sunday. doled out 350,000 virtual hongbao that she could sell up to 4,000 Zong- ies including Beijing, Shenzhen, lottery-based digital renminbi pro- yuan ($6.25 million) in digital cur- Back in February, Beijing started before the Dragon Boat Festival. A zi a day during the Dragon Boat Fes- and Suzhou, Jiangsu province, gram, Tao Siyu couldn’t wait to rency to consumers in 200,000 digi- with 10 million yuan worth of digital student from Donghua University, tival holiday, and many of the orders businesses such as groceries, daily invite his friends for a celebratory tal red envelopes, each containing yuan giveaways to local residents in identified by his surname as Ding, were paid via the digital yuan that is necessities, and catering, among meal. 200 yuan. a bid to boost consumption during said that he and two of his room- convenient and free of transaction others, already supported pay- “I did not win a digital RMB red The lucky draw results were the Spring Festival holiday. These mates all won a hongbao each and commissions. ments using the digital yuan. envelope in February, and I felt sad announced on Friday, the eve of the giveaways were also distributed spent them in the city’s busiest com- China is aiming to upgrade its As the digital RMB pilot program for missing a chance to experience three-day Dragon Boat Festival holi- through a lottery of virtual red mercial districts. domestic retail system by further expands its scope in public life, Chi- (the new payment system),” Tao said day, as a travel and spending boom envelopes, or hongbao, a traditional “I saw many people ask if digital developing its digital currency. na is expected to enrich its opera- while footing the bill using the lucky was expected during the festival. Chinese practice of gifting money. RMB payments are entitled to spe- Gradual steps will expand its use via tional experience to pave the way money. “Once I got notified that I The digital yuan can be used in near- More and more consumers are cial discounts,” Ding said. trials, according to the country’s for large-scale adoption in small- was a winner this time, I invited my ly 2,000 businesses around Beijing, signing up for the digital yuan, In Shanghai’s Zhujiajiao ancient monetary authorities and experts. scale and high-frequency retail friends to dine and share the joy.” indicating wider acceptance. which promises to make daily life town, a popular tourist destination, The country began piloting the business scenarios, according to In the latest public trial run of Lottery winners need to down- easier and digital payments more stores including those selling the digital currency in select regions at experts. e-CNY, China’s digital legal tender, load the mobile app for the digital secure. festival delicacy of Zongzi, a pyra- the end of 2019. The currency is Beijing, with a population of around RMB to get online wallets. They also The financial hub of Shanghai mid-shaped glutinous rice dump- expected to be issued by the coun- Xinhua