China Huafu Trade & Development Group Corp (hereinafter referred to as “Huafu Group”) is a large-scaled commercial enterprise group under the administration and supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), with a registered capital of 1.334 billion Yuan. Huafu Group is responsible for administration, execution and practice of central government buffer stocks of both sugar and meat. Its business scope includes not only production, wholesales, retails, imports & exports, and logistics of sugar, meat, vegetable, drinking alcohol and other non-staple food, but also engineering design and contract, food inspection and research, chain department store, China Sugar & Wines Fairs and advertisement. As a leading enterprise in China’s commercial circulation field, Huafu Group has sales networks and logistics facilities spread all over the country. Huafu Group now has six subsidiaries, i.e., China National Sugar and Alcohol Group Corp., China Food Group Corp., China Merchandise Reserve Management Centre, Zhongshangtie Vegetable Limited Company, The Internal Trade Engineering Design & Research Institute, and Guomao Food Science & Research Institute.
     The tenet of Huafu Group is Honest, Realistic, Creative and Courageous to challenge.
     The social responsibility of Huafu Group is that the Group is responsible for administration, execution and practice of central government buffer stocks of both sugar and meat, and has the responsibility both to play role when the central government take macro control over meat and sugar market and to fulfill the task of disaster relief, supply guarantee, price stabilization and protection of farmers’ interests that is requested by the central government.
     Huafu Group consists of the trading companies who deal with central government buffer stock of non-staple food, relevant administration and science and technological institutes that used to be under supervision of the former Ministry of Internal Trade. In December 1997, a decision was made by the former Ministry of Internal Trade that Huafu Group was incorporated. In January 1999, Huafu Group severed the ties with State Administration of Inter Trade, and became a central enterprises administrated by Central Work Committee of Large Enterprises. On 28th April 1999, Huafu Group was registered by the State Administration for Industry and Commerce, and was formally established on 8th June. In June 1999, The Internal Trade Engineering Design & Research Institute (formerly the Design Institute of Ministry of Trade) and Guomao Food Science & Research Institute (formerly the Food Inspection Institute of Internal Trade) severed the ties with State Administration of Inter Trade, and became full subsidiary of Huafu Group. From March 2003, Huafu Group is administrated by State-owned Assets Supervision and Administration Commission of the State Council.
     Huafu Group has constructed a complex of warehousing facility and sales network that covers most area in China. 18 sugar warehouses designed for central government buffer stocks across China consist of a total warehousing area of 560,000 square meters, and a capacity of 1.4 million tons. In the years before 2008, sugar trading volume was about 1.3 million tons a year, accounting for about 12% of the domestic consumption. The year of 2008 witnessed Huafu Group sugar trading volume of 1.766 million tons, which helps to keep Huafu Group the leading position in China’s sugar trading. Meanwhile, pig slaughter has been maintained at over 600,000 per year.
     By the end of 2008, Huafu Group has total assets of 6.142 billion Yuan, total indebtedness of 3.671 billion Yuan, and owner’s equity of 1.74 billion Yuan. Sales in 2008 reach 6.96 billion Yuan, profit 60.31 million Yuan.
     China Merchandise Reserve Management Centre is responsible for administration of central government sugar stocks and meat stocks, which are used by the central government as material base to deal with accidental disaster when the government has to stabilize market, guarantee supply and implement macro control efforts. As a matter of fact, they play important role in each emergency by both guaranteeing market supply in disaster-hit areas and maintaining social and price stability.
     The National Sugar and Alcoholic Commodities Trade Fairs, sponsored by China National Sugar and Alcohol Group Corp, is one of the largest trading fairs in China. The Fairs is held twice a year, respectively in spring and autumn, and has been held for 80 times so far. The fairs normally receive 100,000 more participants each time, and witness trading volume of over 10 billion Yuan.
     The Internal Trade Engineering Design & Research Institute was established in 1954, and is a national Class-A engineering design unit. Its core business includes construction design and engineering contracting of slaughterhouse, freezers, logistics facility, and civil construction. A total of over 2600 projects have been designed and constructed, of which more than 60 projects were awarded with national gold, silver and bronze medals.
     The National Non-staple Food quality Supervision and Inspection Center, which is set up under Guomao Food Science & Research Institute, is entrusted by government departments such as General Administration of Quality Supervision, Inspection and Quarantine, State Administration for Industry and Commerce, and Ministry of Commerce with inspection of sugar, sugar products, alcohol, soft drinks, seasonings, dairy products, meat, vegetable and fruit, and identification of new products. Guomao Food Science & Research Institute is responsible for drafting and amending relevant national and industrial standard.
     Huafu Group invested and controlled Jiuguijiu Co. Ltd, which is making efforts to restore its glory.
     Huafu Group invested in Sino-Japanese joint ventures of Beijing Ito-Yokado Department Store, Chengdu Ito-Yokado Department Store, and Beijing 7-Eleven Store, all of which both have been popular among local people and have achieved stable and sustainable growth in term of sales and profit.
     Both the Party Central Committee and the State Council have put great emphasis on macro control of the country’s non-staple food market recently. In 2007 and 2008, the scale of both meat and sugar of the central government buffer stocks was enlarged in time. The scale of the meat stocks was increased from 60000 tons before 2007 to 250000 tons (including 200000 tons of pork and 50000 tons of both lamb and beef), and that of the sugar stocks was increased from 1.6 million tons to 3.1 million tons. After the decision of scale enlargement was made, the construction of central government meat warehousing freezers of 100000 tons capacity and the construction and expansion of central government sugar stocks warehouse were subsequently proposed. The constructions are under way. Besides China Merchandise Reserve Management Centre who is responsible for administration and operation of central government meat and sugar stocks, China National Sugar and Alcohol Group Corp., China Food Group Corp., The Internal Trade Engineering Design & Research Institute, and Guomao Food Science & Research Institute also take responsibility of executing national macro controlling measures. This is an obvious point that Huafu Group is different from other trading companies.