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Beijing Firm Finds Success in HKSAR

Founded in 1997, the Beijing Shenan Investment Group has developed from a small-sized business trading company to a “3A” (any time, any where, any device) high-level, multi-functional company.

Beginning as a small firm with a casting technique, the Shenan Group, catering to the needs of the market, has grown into a modern, high-tech company in Beijing with 13 subcompanies, including the Huicong Steel Structure Company, Shenan Casting Company, Sunrise Lightning, and Shenan Food Company.

As an integrated, star company in Beijing involved in the food, bioengineering, real estate development, lighting, steel structure, gardening and iron casting industries, the Beijing Shenan Investment Group has 320 million yuan in fixed assets and an annual production of at least 30 million yuan. Located at the Yufa Industrial Area in Beijing, Daxing District, the Beijing Shenan Investment Group has a great location and access to sufficient natural resources.

With its rapid development, the company aims to pursue new opportunities in Hong Kong.

Zhuang Shenan, CEO of the Beijing Shenan Group, visited Hong Kong in June 2005 seeking opportunities and investigating Hong Kong’s investment environment, with the aid of the Hong Kong Trade and Development Council.

With the signing of the Closer Economic Partnership Arrangement (CEPA) in January 2004 between the Hong Kong Special Administrative Region (HKSAR) and the Chinese mainland, the relationship between the mainland and Hong Kong became much closer. The Hong Kong Trade and Development Council, a professional platform for information resources, serves as a bridge between Hong Kong and the mainland.

“We have a bright future,” Zhuang said confidently. “And some Hong Kong companies have already ordered our products. We are prepared to trade with Hong Kong.”

Among Shenan’s 13 branch companies, lighting, steel structures and food stand out, especially the company’s selenium-enriched garlic project, which has a wide market presence in Europe.

The selenium-enriched garlic product, a top biotechnology, is served raw or as a supplementary material used in medicine and food production. The selenium-enriched series also includes fruit juices, eggs and milk.

According to Zhang, the Shenan Group has established an Export-Production Base for selenium-enriched garlic products in Jinxiang, Shandong Province, with an area of more than 10,000 hectares and annual output up to 10,000 tons. By 2007, the area of the base will be extended to 100,000 hectares.

Zhuang said the selenium-enriched garlic project has achieved remarkable success and he is optimistic about the Hong Kong market.

Meanwhile, Shenan Food Company, one of the 13 subcompanies, has invested 50 million yuan importing complete juice production lines from Germany and has achieved good results in its condensed fruit-juice production, which has been certified by the State Administration for HACCP (Hazard Analysis Critical Control Points) for its high-standard food-health security system and QS (Quality Safety) certification.

Benefiting from a growing environment, the company’s location is rich in high-grade fruit resources. It was cited as the “Chinese Pear Hometown” by the State Forest Administration and Economic Forest Association of China. With an annual output up to 50,000 tons and fruit purchases of more than 40,000 tons, the company exports 80 percent of its products to Europe. 

The company plans to set up a comprehensive condensed fruit production operation at the Yufa Industrial Zone, combining production, processing, and circulation and monitoring processes.

Continued reform and opening up of the Chinese economy and initiatives such as the CEPA have strengthened economic ties between Hong Kong and the mainland. The mainland will continue to be the principal growth driver for Hong Kong as more mainland State-owned enterprises undergo restructuring.