Unlocking Future Potential with "Heart" Quality Production, Founder of Zhou Hei Duck (01458) Calls for Industry Upgrading

Zhitong Finance APP has learned that recently, founder and chairman of Zhou Hei Duck (01458), Zhou Fuyu, was invited to attend the "Shandong Poultry High-quality Development Conference" hosted by the Shandong Poultry Association and delivered a keynote speech, proposing to break down industry barriers with "heart" quality production, and reshape the industry's value.

Zhou Fuyu emphasized that currently, the pace of development in the poultry industry has slowed down, and consumers have been complaining about the lack of flavor. The root cause is that businesses have been overly focused on costs while neglecting quality. "Heart" quality production is the key to returning to the essence of quality and regaining consumer trust.

"Heart" quality production can put entrepreneurs to the test, forcing them to balance benefits and costs strictly. In the industry, companies use technological means to upgrade their production capabilities, but often pursue profits at the expense of product quality, causing products to become increasingly inferior. Zhou Hei Duck has been practicing "food as a business" for 30 years, emphasizing that those involved in food production must be mindful of their conscience.

Based on "heart" quality production, Zhou Fuyu proposed two major initiatives for the industry:

The first initiative is to transform competition concepts from "horizontal and vertical internal competition" to "industry chain cooperation". By working together with upstream suppliers and downstream brands, companies can respond to external market competition and meet consumer demands for health and taste. Since 2024, the poultry industry has entered a severe period of intense competition, with companies engaging in intense cost battles behind the scenes, leading to losses.

The second initiative is to shift from "cost-driven" production to "quality-driven" production. By breaking away from the pursuit of extreme profit margins and focusing on quality, companies can ensure product safety and quality, safeguarding their own survival and development. The two initiatives are closely related, requiring coordination between upstream suppliers, downstream brands, and manufacturers to form a comprehensive quality control system.

Zhou Hei Duck is willing to take the lead in industry upgrading and work together with industry chain partners to promote the quality upgrade of the poultry industry.

How does Zhou Hei Duck implement these initiatives?

Zhou Hei Duck has a comprehensive supply chain management system, selecting more than 90% of its upstream suppliers from leading enterprises in the industry. By empowering suppliers and ensuring their development interests are safeguarded, Zhou Hei Duck ensures the quality and stability of raw materials. In logistics, the company works closely with logistics companies and builds its own cold chain system and transportation fleet, providing door-to-door delivery services to more than 3,000 stores nationwide.

Zhou Hei Duck has also invested heavily in online and offline channels, actively expanding new business scenarios, including e-commerce, social media, and other platforms.

The company's supply chain management system is highly coordinated with its production system. Zhou Hei Duck has participated in the drafting of industry standards such as "Requirements for Packaging of Ready-to-Eat Meat Products" and "Standards for Packaging of Meat Products".

Zhou Hei Duck has consistently emphasized "quality first" as its operating philosophy, from raw material selection to production process control, using high-quality materials to produce better-tasting products.

For example, the company selects old-maize ducks with a breeding period of around 400 days for their fine and tender meat. The company also requires suppliers to undergo rigorous testing and quality control procedures before supplying raw materials.

Zhou Hei Duck has invested heavily in automation, establishing a standardized production line with automated microwave thawing, automatic sorting, and other advanced technologies. The company's production line is highly automated, ensuring the safety and quality of its products.

Zhou Hei Duck has also established a standardized quality control system, ensuring the quality of its products from raw materials to final packaging. The company's production line is highly automated and intelligent, providing a strong guarantee for food safety.

Zhou Hei Duck has always prioritized product quality and is committed to making its products the best in the industry. The company's continuous innovation, cost reduction, and efficiency improvements have enabled it to maintain a strong market position.

Zhou Fuyu's announcement on June 30th revealed that the company expects its net profit per share to grow by 55.5% to 94.8% in the first half of 2025, exceeding industry averages for two consecutive semi-annual periods.

Zhou Hei Duck has been actively promoting reforms since last June, including "store quality reform", product innovation, comprehensive cost reduction and efficiency improvement, as well as overseas expansion. The company is committed to continuous upgrading and transformation, providing a successful model for other companies in the industry.