Nanfang Black Sesame Group Co., Ltd.: history, ownership, mission, how it works & makes money

From its roots as a private venture founded in 1984 to becoming the first black-sesame company to list on the Shenzhen Stock Exchange under 000716.SZ in 2005, Nanfang Black Sesame Group has grown into a national leader with six production bases, collaborations with Jiangnan University and the Chinese Academy of Engineering, and the 2022 opening of the world's largest Healthy Food Granary Intelligent Factory in Rongxian; the firm's product mix-black sesame paste, beverages, snacks and supplements-helped drive total sales of approximately 5.3 billion RMB and saw black sesame paste revenue top 1 billion RMB in 2014, while 2024 revenue reached 2.46 billion RMB (down 7.92% year-over-year), exports now reach over 30 countries under trade frameworks like the RCEP, and recent corporate moves including a branded China Railway High-speed train, a June 2025 'Key Export Enterprise of Yulin City' honor, a H1 2025 net income of 7.77 million RMB (versus 10.98 million RMB prior year), and a December 12, 2025 closing share price of 6.05 RMB (market cap ~4.55 billion RMB) underscore the company's market positioning, ownership shift to the Guangxi SASAC in August 2025, and ongoing emphasis on innovation, sustainability and food safety to expand both domestic and international reach

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): Intro

• Core products: black sesame paste, black sesame beverage, sesame oil and related nutri-foods.
• Production footprint: multiple factories with flagship Rongxian intelligent facility (2022).
• Distribution channels: mass retail, e-commerce, specialty stores and foodservice.

• 1984-2004: Founding and regional consolidation - established manufacturing/process know‑how in black sesame processing and built brand recognition in southern China.
• 2005: Public listing on Shenzhen Stock Exchange (000716.SZ) - first black sesame company in China to go public, enabling access to capital markets for expansion.
• 2010-2014: Capacity and product expansion - completion of Rongxian factory phase I (2010) and product diversification, culminating in 2014 when black sesame paste revenue surpassed RMB 1 billion.
• 2011 onward: Category extension - launched beverage products (2011) and expanded packaged formats to capture mainstream consumption occasions.
• 2022: Smart manufacturing era - inauguration of the Healthy Food Granary Intelligent Factory in Rongxian, employing advanced international intelligent-production technologies to scale output and improve quality control.

• Public company listed on Shenzhen Stock Exchange (ticker 000716.SZ).
• Shareholder mix: institutional investors, retail investors and controlling/shareholders aligned with founding management (typical for Chinese listed private-origin food groups).
• Governance: board of directors, supervisory board and executive management overseeing operations, R&D and brand/market strategy.

• Vertical focus on sesame raw-material sourcing, processing (roasting, milling, extraction), product formulation and packaging.
• Manufacturing scale: multi‑phase Rongxian production base expanded since 2010; 2022 intelligent factory introduces automation, traceability and higher throughput.
• Quality and standards: product testing, HACCP/food-safety processes and integration of intelligent monitoring in new plant operations to reduce variability and waste.
• Sales channels: omni-channel distribution - national retail networks, direct sales, e-commerce platforms and institutional customers (foodservice/wholesale).

• Product sales: primary revenue from black sesame paste (notably exceeded RMB 1 billion in 2014), beverages, oils and related value-added sesame products.
• Channel monetization: retail and e-commerce margins, bulk/industrial sales and branded packaged-goods pricing premiums supported by brand recognition.
• Cost structure drivers: raw sesame seed procurement prices, processing yields, labor and increasingly capital depreciation and tech investment tied to intelligent factory operations.
• Scale and margin levers: product mix shift to higher-margin value‑added items (beverages, ready‑to‑consume paste), supply-chain optimization and automation-enabled cost efficiencies from the Rongxian intelligent plant.

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): History

• Ownership change: In August 2025 the Guangxi State-owned Assets Supervision and Administration Commission (Guangxi SASAC) became the actual controller following a significant share transfer.
• Prior largest shareholder: Before the transfer, Guangxi Black Five Categories Food Group Co., Ltd. was the company's largest shareholder, holding a substantial stake.
• Branding collaboration: In March 2025 Nanfang Black Sesame partnered with China Railway High-speed to name a train after the brand, boosting consumer awareness.
• Export recognition: In June 2025 the company was named a 'Key Export Enterprise of Yulin City' for outstanding foreign trade performance.

• Core products: black sesame paste, sesame oil, sesame snacks and upstream sesame seed procurement and processing.
• Channels: domestic retail (supermarkets, e-commerce), institutional food buyers, and export markets-supported by the Yulin export designation.
• Monetization: product sales (bulk and branded consumer goods), licensing/co-branding (e.g., train naming), and potential state-backed procurement advantages after SASAC control.

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): Ownership Structure

• Mission and values: prioritize natural ingredients, food safety, traceability and continuous R&D to meet evolving consumer health needs.
• Innovation: invest in product development and manufacturing process upgrades to expand functional and ready-to-eat sesame offerings.
• Sustainability: source raw sesame and ancillary ingredients responsibly and implement waste- and energy-reduction measures in production.
• Market ambition: lead the domestic sesame-based health-food market and expand international distribution channels.

• How it makes money: product sales across retail, foodservice and B2B ingredient channels; margins driven by value-added products (ready-to-eat and fortified sesame items) and manufacturing efficiencies.
• Revenue drivers: new-product introductions, expanded distribution, e-commerce penetration and export growth.
• Cost and quality controls: vertical supply-chain coordination, standardized processing and traceability systems to protect margin and brand trust.

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): Mission and Values

• Six major production bases located across China (including Guangxi, Anhui, Hubei, Zhejiang) provide regional capacity and supply-chain resilience.
• Comprehensive product portfolio: black sesame paste, beverages, snacks, and health supplements tailored for different age groups and consumption occasions.
• Strong emphasis on R&D and quality enhancement through partnerships with academic institutions such as Jiangnan University and the Chinese Academy of Engineering.
• Multi-channel sales approach, with proprietary e-commerce operations (NANFANG Black Sesame E-commerce (Guangxi) and Shanghai Liduoduo E-commerce) alongside traditional retail distribution.

• Manufacturing footprint: six large production bases allow for specialization by product category and regional raw-material sourcing.
• Smart manufacturing: in 2022 the company launched the Healthy Food Granary Intelligent Factory in Rongxian, Guangxi - described by the company as the world's largest intelligent factory for healthy food - to scale automated production, improve traceability and reduce unit costs.
• Product development loop: R&D teams collaborate with external academic partners to optimize formulation, extend shelf‑life, and validate nutritional claims; results feed directly into new SKU launches and product upgrades.
• Distribution and sales: a dual approach combining nationwide wholesale/retail networks with growing direct-to-consumer online channels to increase margins and collect consumer data for targeted product development.

• Product sales: primary revenue from packaged consumer goods sold through supermarkets, convenience stores, specialty food shops and online stores.
• Private-label and OEM: manufacturing capacity enables B2B sales and co-packing for other brands, leveraging scale to improve factory utilization.
• Premiumization and value-added SKUs: higher-margin health supplements and fortified products aimed at health-conscious consumers.
• Direct-to-consumer margin capture: growth of proprietary e-commerce channels reduces reliance on intermediaries and supports recurring-purchase programs and promotions.

• Academic collaborations inform nutritional formulation and process improvements, enhancing product differentiation and supporting regulatory claims.
• Intelligent factory investments increase automation, batch traceability, and food-safety compliance while lowering per-unit labor costs.
• Continuous SKU upgrades and new product development target both traditional consumers of sesame-based foods and younger, convenience-oriented demographics.

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): How It Works

• Core product categories: black sesame paste, ready-to-drink sesame beverages, snacks, confectionery, and health supplements.
• Distribution channels: retail (supermarkets, convenience stores), e-commerce (company platforms and major marketplaces), foodservice and institutional B2B, and exports to international markets.
• Value drivers: branded recognition in traditional sesame products, product innovation (R&D on formulations and packaging), scale manufacturing, and expanding digital sales capabilities.

• Primary revenue source: direct product sales across the product mix (retail and wholesale), with growing contributions from e-commerce and institutional contracts.
• 2024 reported revenue: 2.46 billion RMB, a decrease of 7.92% from 2023 revenue of 2.68 billion RMB.
• Milestone sales: total cumulative sales amounting to approximately 5.3 billion RMB, indicating strong historical market traction.

• Manufacturing: owned/contract production captures margin via scale and standardized sesame processing.
• Branded retail & wholesale: packaged goods sold through national retailers and distributors drive consistent SKU-level revenue.
• E-commerce: digital storefronts and marketplace sales accelerate 2C demand and enable direct margin improvements; 2B e-commerce capabilities support institutional ordering and bulk sales.
• Export sales: international shipments to 30+ countries diversify revenue and benefit from multilateral trade agreements (e.g., RCEP) to lower tariff friction.
• R&D and product innovation: ongoing investment in formulations, functional ingredients, packaging, and food safety to support premium pricing and new SKUs.

• Product portfolio expansion into beverages, snacks, and health supplements to increase basket size and repeat purchases.
• Channel mix optimization - shifting more volume to higher-margin e-commerce and direct sales while maintaining wide retail presence.
• Geographic diversification through exports to reduce domestic demand cyclicality.
• Quality control and certification investments to meet export requirements and premium domestic segments.

Nanfang Black Sesame Group Co., Ltd. (000716.SZ): How It Makes Money

• Core revenue streams: branded packaged black sesame cereals, black sesame oil, snacks and ready-to-eat products sold through retailers, supermarkets and online marketplaces.
• Export & bulk sales: B2B shipments and international distributors leveraging the company's 'Key Export Enterprise of Yulin City' status.
• E-commerce & cross-border platforms: direct-to-consumer (Tmall, JD, cross-border e-commerce) and international marketplaces to expand global reach.
• R&D-driven premiumization: new product formats and value-added health positioning to increase ASP (average selling price) and margin.

• Leading domestic share in the black sesame cereal category; recognized consumer brand with premium positioning.
• International expansion is prioritized via trade agreements and e-commerce channels to diversify revenue and capture higher-growth overseas demand.
• Ongoing R&D investment focused on product innovation and quality improvement to counter margin pressure and respond to changing consumer tastes.
• Near-term earnings showed pressure: H1 2025 net income fell to 7.77M RMB from 10.98M RMB year-over-year, signaling cost, price or mix challenges management aims to address.
• Equity-market sentiment remains supportive as reflected in a 6.05 RMB closing share price and ~4.55B RMB market cap (Dec 12, 2025), implying investor confidence in recovery and growth plans.