Soupman's Growth Story A Review of 700 Years of Chinese Dietary Culture

1. Introduction to Soupman (00610)

With the rising importance of health and wellness, a new era of growth in the Chinese dietary supplement market has emerged. Soupman (00610), a leading company in the soup-based health food sector, has been riding this trend with success, and its stock price has been performing well.

2. Overview of Chinese Dietary Culture

Soupman's success stems from its unique approach to traditional Chinese dietary culture. The Chinese have been using soups as a form of healthcare for over 700 years. In traditional Chinese medicine, soups are used for balancing yin and yang in the body and to nourish the organs. This ancient wisdom has been passed down through generations, and Soupman has incorporated it into its product line.

3. Product Development

Soupman has innovatively developed a range of products that cater to consumers' specific health and nutritional needs. Its soup products include functional soups, which target specific health concerns such as immunity enhancement, digestion improvement, and blood sugar management. Soupman has also diversified into other health food products such as herbal tea, vitamin supplements, and dairy products.

4. Strong Distribution Network

Soupman has established a strong distribution network, with over 1000 retail stores across China, including major supermarkets, pharmacies, and health food stores. It has also expanded its presence in e-commerce platforms, such as Tmall and JD.com, to reach a wider customer base. Besides, Soupman has set up its own stores and opened franchised stores to increase its visibility and market share.

5. Quality Control and Assurance

Soupman ensures that its products are of the highest quality and safety standards. It has strict quality control procedures in place and adheres to the "three-zero" guarantee system - zero antibiotics, zero added hormones, and zero heavy metals. Soupman has received numerous recognition and commendation for its product quality, including the "National Green and Organic Product" certification and the "Green Food" certification.

6. Solid Financial Performance

Soupman has shown strong financial performance, with revenue and profit growth exceeding market expectations. In the first half of 2021, its revenue increased by 39.2% year-on-year to RMB 935.2 million, and net profit rose by 24.9% YoY to RMB 152.7 million. The company's EPS has also increased consistently over the years.

7. Conclusion

Soupman is at the forefront of the booming Chinese dietary supplement market, benefiting from the rising trend of healthy eating and traditional Chinese medicine. Its innovative product line, strong distribution network, and quality control have contributed to its robust financial performance. Soupman's growth prospects remain promising, and its stock price is expected to continue to perform well.