Zhejiang Dongri Limited Company: history, ownership, mission, how it works & makes money

Zhejiang Dongri Limited Company, founded in 1997 and listed on the Shanghai Stock Exchange in 2015 (600113), sits at the intersection of China's agricultural wholesale markets and fresh food distribution, reporting a 2024 revenue of ¥723 million (down 18.44% year‑on‑year) and a net profit attributable to shareholders of ¥135 million (down 34.94%), while delivering a rebound into 2025 with a first‑half net profit of ¥68.83 million (up 12.12%); headquartered in Wenzhou, the company-with a market capitalization of ¥23.60 billion as of December 12, 2025 when the share price was ¥57.96-operates agricultural product wholesale markets, leases market space, distributes fresh produce, and produces soy products, supported by digital advertising and sales platforms across cities like Hangzhou, Wenzhou and Quzhou, stewardship from major shareholder Zhejiang Dongri Agricultural Development Co., Ltd., a board and management team including Vice Chairman and General Manager Chengyu Yang and Deputy General Manager Xiaolei Xie, a workforce of 1,054 employees as of December 31, 2024 (up 0.38%), and recent insider activity such as Duan Xuedong's June 2025 purchase of 620,000 shares raising his stake to 5.007%, all while pursuing technological innovation, environmental protection, low‑carbon transformation, and a collaborative industry‑academia R&D ecosystem that underpins multiple revenue streams from wholesale, leasing, fresh food sales, soy processing, and platform services.

Zhejiang Dongri Limited Company (600113.SS): Intro

• 1997 - Company established in Wenzhou City, Zhejiang Province.
• 2015 - Listed on the Shanghai Stock Exchange (600113.SS).
• 2024 - Reported revenue of ¥723 million; net profit attributable to shareholders ¥135 million.
• H1 2025 - Net profit of ¥68.83 million, up 12.12% year-on-year.
• 12 Dec 2025 - Share price ¥57.96; market capitalization ¥23.60 billion.

• Major shareholders: combination of founding-family holdings, institutional investors, and free-float on SSE (exact percentages vary by filing periods).
• Board structure: independent and executive directors with audit and remuneration committees to align governance with SSE requirements.
• Corporate filings and shareholder meeting outcomes published per Shanghai Stock Exchange disclosure rules.

• Mission: deliver reliable, cost-effective industrial and consumer products while maintaining operational excellence and sustainable growth.
• Vision: be a regional leader in manufacturing innovation and customer service across core product categories.
• Core values: quality, integrity, customer focus, and continuous improvement.

• Product lines: diversified portfolio including manufactured components, consumer goods, and OEM supply contracts to domestic and international partners.
• Manufacturing: vertically integrated production facilities in Zhejiang with quality control and lean-production practices to reduce unit costs.
• Distribution: direct sales, dealer networks, and B2B contracts; selective exports to neighboring Asian markets.
• Revenue drivers: product sales (retail & wholesale), long-term OEM service agreements, and margin expansion from process optimization.

• Cost control and manufacturing efficiency directly impact gross margin; 2024 revenue fell 18.44% to ¥723 million, pressuring margins and profit.
• Net profit attributable in 2024 was ¥135 million, a 34.94% decline vs. 2023 (¥207 million), reflecting demand softness and cost pressures.
• Improvement in H1 2025: net profit ¥68.83 million (+12.12% YoY for the period), suggesting partial recovery from 2024 weakness.
• Market sentiment reflected in share price of ¥57.96 and market cap of ¥23.60 billion as of 12 Dec 2025.

Zhejiang Dongri Limited Company (600113.SS): History

• Listed: Shanghai Stock Exchange (600113.SS)
• Major shareholder: Zhejiang Dongri Agricultural Development Co., Ltd. (a subsidiary of Zhejiang Dongri Co., Ltd.)
• Public float: traded publicly with a diverse shareholder base
• Employees (Dec 31, 2024): 1,054 (up 0.38% YoY)

• Board composition: a board of directors comprising industry and corporate governance professionals oversees strategy, risk and operational performance.
• Recent insider activity: June 2025 share purchase by Duan Xuedong (620,000 shares) raising his stake to 5.007%.

Zhejiang Dongri Limited Company (600113.SS): Ownership Structure

• Core mission: provide safe, reliable agricultural and fresh-food supply-chain services while advancing low‑carbon, technology-enabled processing of soy and related products.
• Innovation: invest in R&D and energy‑efficient production; actively participate in industry standard formulation and collaborative research with universities and institutes.
• Sustainability: pursue environmental protection projects, waste reduction and energy recovery to support long‑term, low‑carbon transformation.
• Market orientation: optimize market transaction management and leasing operations to stabilize supply and expand distribution reach.

• Business segments: wholesale distribution of agricultural and fresh-food items; soy product manufacturing and processing; market operation & leasing services.
• Value chain activities: procurement → cold-chain logistics → processing & packaging → wholesale distribution to retailers and food‑service clients.
• Technology & sustainability investments: upgrade of processing lines for energy efficiency, deployment of environmental protection equipment, and implementation of traceability systems.
• Collaborative ecosystem: partnerships with research institutions, upstream farmers and downstream distributors to improve product quality and standards.

• Major shareholders typically include the founding group, institutional investors and public float; the controlling stake supports strategic direction toward integrated market operations and processing expansion.
• Corporate governance emphasizes compliance, environmental oversight and strengthening independent R&D capabilities to support product quality and standards leadership.

• Wholesale margins: margins derived from volume procurement and distribution efficiency across fresh and agricultural product lines.
• Processing margins: added value from soy product production (tofu, soy protein, oil) and branded packaged goods.
• Market operation & leasing: recurring income from leasing market stalls/space and transaction management fees from market operation services.
• Cost control: energy efficiency and environmental upgrades aimed at lowering unit production costs and meeting regulatory standards.

Zhejiang Dongri Limited Company (600113.SS): Mission and Values

• Wholesale market operations: Zhejiang Dongri leases stalls, manages vendor services, collects management and service fees, and handles transaction settlement across its network of agricultural wholesale markets in Zhejiang province (including Hangzhou, Wenzhou and Quzhou).
• Fresh food distribution: The company purchases, aggregates and distributes fresh fruits and vegetables through market channels and logistics partners, earning margins on commodity sales and distribution fees.
• Soy products production & processing: Dongri owns processing lines for soy-based products (tofu, soy milk intermediates, soybean meal), generating product sales and industrial supply contracts.
• Digital platform & advertising: A digitally empowered agricultural industry platform provides listing, advertising, and e-commerce sales services to producers and traders; advertising equipment with built-in sales functions is deployed in multiple cities to generate ad sales and transaction leads.
• Environmental and efficiency initiatives: Investments in energy- and water-efficiency technologies reduce operating costs and support premium positioning for key products, while enabling regulatory compliance and potential green subsidies.

• Space leasing & market management fees - recurring income from stall and facility leases, management contracts and ancillary service charges in wholesale markets.
• Commodity trading margins - procurement and resale of fresh fruits, vegetables and soy products; margin capture through aggregation and logistics optimization.
• Processed-product sales - revenue from sale of soy-derived products to wholesale, retail and industrial buyers.
• Advertising & platform services - sales of advertising inventory, paid listings, promotional services and transaction-facilitating digital tools on the company's platform.
• Value-added services - cold-chain logistics, settlement/clearing services, vendor financing facilitation and other merchant services for market participants.

• Digitization: Expand platform services (advertising, e-commerce, listing and settlement) to convert foot-traffic and vendor relationships into online transactions and recurring platform fees.
• Market optimization: Increase stall occupancy, diversify tenant mix (fresh produce, cold-chain vendors, value-added services) and enhance service bundles to raise per-stall revenue.
• Product verticals: Grow processed soy product output and integrate upstream procurement to stabilize input costs and margins.
• Sustainability & cost reduction: Scale energy- and water-saving technologies across processing and market facilities to reduce operating expenses and meet regulatory/CSR goals.
• Monetize advertising infrastructure: Leverage on-site and citywide advertising equipment with embedded sales functions to generate ad revenue and drive direct product sales.

Zhejiang Dongri Limited Company (600113.SS): How It Works

• Wholesale trading of fresh agricultural products through a network of regional wholesale markets and trading halls.
• Leasing of retail and cold-chain spaces within market complexes to vendors, logistics providers and retailers.
• Fresh food distribution and retail sales via owned distribution centers and partner networks serving supermarkets, wet markets and restaurants.
• Production and processing of soy-based products (tofu, soy milk, textured soy protein) sold to foodservice and retail channels.
• Investment returns and fee income from environmental protection, waste treatment and energy-efficiency projects associated with market operations.
• Digital platform services - advertising, online marketplace listings, logistics coordination and value-added services for agricultural enterprises.

• Volume-driven wholesale margins: Dongri aggregates large volumes from producers, leveraging scale to earn wholesale margins on high-turnover produce categories (vegetables, fruit, seafood).
• Property and service rents: Long-term and short-term leases for market stalls, cold storage and logistics facilities provide stable, recurring rental income and ancillary service fees.
• Value-added processing: Vertical integration into soy processing increases margin capture by converting low-margin raw soy into higher-margin consumer and B2B soy products.
• Distribution efficiencies: Owned DCs and third-party partnerships compress lead times and waste, increasing sell-through rates and reducing spoilage losses.
• Environmental project monetization: Capex on waste-to-energy, anaerobic digestion and energy retrofits generates government subsidies, carbon-related incentives and lower operating costs that flow to the bottom line.
• Digital monetization: The platform drives advertising revenue, listing fees and transaction commissions while enabling cross-selling of logistics and financial services to market tenants.

• High turnover of perishable goods - frequent inventory turnover generates steady transaction volumes and short cash conversion cycles.
• Lease-backed recurring revenues - stable base of rental contracts smooths revenue volatility from commodity price swings.
• Margin uplift from processing - capturing downstream value in soy products and selected fresh-processed items.
• Operational cost savings - energy and waste projects reduce utility and disposal costs, improving EBITDA.
• Platform-led cross-sell - digital services increase monetization per tenant and broaden advertising revenue pools.

• Commodity price volatility - mitigated via diversified sourcing, contract terms and hedging where feasible.
• Perishability and logistics disruption - mitigated via cold-chain investment and real-time logistics coordination through its platform.
• Regulatory and environmental compliance costs - turned into opportunities by investing in compliant treatment and energy projects that produce income streams.

Zhejiang Dongri Limited Company (600113.SS): How It Makes Money

• Wholesale trading of agricultural commodities (grains, oilseeds, bulk produce) - core revenue driver via volume margins and supplier-buyer matching.
• Fresh food distribution (fruits, vegetables, chilled/frozen items) - higher-margin urban retail and institutional sales supported by cold-chain logistics.
• Logistics & storage services - revenue from leasing cold-storage capacity, third-party distribution and value-added handling.
• Digital platform services - advertising, e-commerce facilitation, transaction fees and data services for agricultural actors.
• Environmental & energy-efficiency projects - cost savings and potential green subsidies/certificates from low-carbon investments.

• Zhejiang Dongri holds a significant position in China's agricultural wholesale market, servicing a wide network of suppliers and buyers across provinces.
• The company is expanding its presence in fresh food distribution, increasing cold-chain capacity and committing to perishable logistics to capture urban retail and institutional demand.
• Investments in environmental protection and energy efficiency (LED refrigeration upgrades, waste heat recovery, solar installations) aim to reduce operating costs and improve margins.
• Development of a digitally-empowered agricultural platform seeks to provide end-to-end services - advertising, transaction facilitation, logistics scheduling and data analytics - to lock in customers and generate recurring platform fees.
• Focus on sustainable development includes low-carbon transformation initiatives; these projects can both lower energy spend and unlock green financing or incentive programs.
• The company is building a collaborative innovation ecosystem with industry partners, universities, research institutes and application-side customers to accelerate technology adoption and create new commercial services.