As a leading enterprise in the frozen food industry, Sanquan Foods’ capacity reached 230 thousand tons with market share of 27.4% (by sales) in 2010, ranking No.1 in the industry. Due to the strong demand in peak season in 2010Q4, Sanquan could merely meet 40% of the orders. Capacity shortage has become the bottleneck for further development of Sanquan.

Market Share of Sanquan Foods, 1998-2010

Source: Sanquan Foods; ResearchInChina

On 8 Sept. 2011, Sanquan Foods announced that it will raise funds of RMB498 million for the construction of food production base (II phase), of which designed capacity is 150 thousand tons/ year, including frozen dumpling capacity of 85.6 thousand tons/ year and frozen rice dumpling 64.4 thousand tons/ year. This completion of the project will not only ease the capacity shortage, but also improve its profitability and further enhance its position in the industry.