“Lotus MSG” Renamed “Lotus Health”, as It Builds a Smart Agriculture and General Health Industry Ecosystem

2016-10-17 Posted by:admin Categor:News of the group
Recently, the A-share listed company Lotus MSG (600186) issued the Public Notice on the Completion of Business Registration of Changes, announcing that it has completed the registration of changes to the company’s name and business scope, and has received a Business License of Enterprise Legal Person from Henan Provincial Administrative Bureau for Industry and Commerce. The Company’s Chinese name has been changed from “河南莲花味精股份有限公司” to “河南莲花健康产业股份有限公司”, and its English name is now the “Lotus Health Industry Holding Group Company.” 

Previously, Lotus MSG convened the 24th meeting of the sixth Board of Directors on November 23, 2015 and the 2nd extraordinary general meeting on December 28, 2015, which discussed and passed the Proposal on Change of the Company Name to Lotus Health Industry Holding Group Company, the Proposal on Change of the Company’s Business Scope, and the Proposal on Amendment to the Companys Articles of Association. In addition, the two meetings also approved a plan to fully enter the smart agriculture and general health industry within the next five years. According to the plan, Lotus Health will integrate global high-quality resources and optimize the allocation of its own resources to forcefully develop general health-related business. 

The change of the company’s name is another important milestone in Lotus’s development. From now on, “Lotus MSG” will be known as “Lotus Health” on the capital market, meaning that it is no longer an MSG deep-processing company on the industry chain in the conventional sense. Instead, the company will fully tap its advantages in MSG and amino acid production technology to develop innovative condiment services. On this base, the company will strive to build a smart agriculture industry chain and a general health industry ecosystem centered on seven areas, namely the source of health products, the food safety and nutrition detection management system, the land and plant nutrition ecosystem, the integrated smart agricultural production system, the innovative agricultural finance, the C2B nutritional and health products platform, and the integrated health service system. 

Specifically, Lotus will continue to develop and improve its existing condiments production capacity. Based on its condiment series (e.g., MSG and chicken essence), its plant protein series (mainly wheat gluten), its wheat flour series, and its wheat starch series, Lotus will continue to develop new health condiments, health food products and other products to meet consumer demands. In doing so, Lotus will promote product upgrades and build a more complete health food bank. The above segments complement each other to form three core smart systems, namely the “source of health product system”, the “land-plants and animals-human health ecosystem”, and the “general health industry chain service system”. Via these three smart systems, Lotus will establish itself as a safe, organic, healthy, and trustworthy brand, achieving the goal of bringing natural, healthy, and high-quality products as well as reliable service to families all over the world. 

Lotus MSG came into being in the 1980s. Relying on the abundant food resources of the Central Plains region, it has gradually developed into one of China’s most important MSG production and export bases. “Lotus” MSG is recognized by the Ministry of Commerce as the most competitive brand in the MSG industry. As one of the most popular brands, it holds an industry-leading position in the Chinese household consumption market. As well as receiving the “Green Food” award from China Green Food Development Center, Lotus was recognized as a National Ke Agricultural Industrialization Enterprise by the Ministry of Agriculture and seven other ministries and commissions. In 2015, the Lotus brand was evaluated at RMB 5.596 billion, ranking 385th among the Top 500 Most Valuable Chinese Brands.

After becoming an A-share company listed on Shanghai Stock Exchange in 1998, Lotus MSG entered the capital market and expanded rapidly. In recent years, the company made its presence felt in the industry with its MSG, chicken essence, condiments, sweat flour, sweat gluten, fertilizers, and other by-products. The company  has already developed into an agricultural deep processing conglomerate actively involved in agricultural industrialization, deep processing of grains and agricultural recycling economy, and enjoys a favorable position for agricultural industrialization. In early 2015, Zhejiang RECON Investment Co., Ltd., successfully acquired Lotus MSG and established a strategic goal of building a complete smart agriculture and general health industry chain and ecosystem. This goal will be achieved on the foundations of maintaining its traditional advantages in amino acid bio-fermentation technology and condiment production.

As a milestone event, the renaming of the company’s name to “Lotus Health” demonstrates the company’s determination as an old state-owned brand to seek reform of its operations and strategic transformation. As for its future strategic layout, Lotus will rely on its MSG business and continue to expand to the following four bricks-and-mortar businesses: First, to develop fourth generation condiments based on amino acid fermentation and refining technology and other core technologies; second, to increase investment in food production technology and gradually build and enrich the source of health product system; third, to strengthen the construction of brand channels and terminal service system and improve the health products and services marketing system; fourth, to complete the technological shift from organic fertilizers to organic plant nutrition. Lotus will enhance product development according to different crops’ individual needs for organic fertilizer and promote the shift from organic fertilizer to a plant nutrition product system. The innovation and transformation of Lotus’s main business will enhance its sustainable profitability and growth potential. At the same time, Lotus Health will meet global customers’ expectations for the health industry, smart agriculture, healthy food and other businesses. As its name suggests, Lotus Health hopes to provide customers with their future general healthy lives and further increase its social value.

At present, the arrival of the era of great agriculture and general health represents an economic law and trend. For Lotus Health, one of China’s largest agricultural deep processing conglomerates, the industries and areas covered by its diversified businesses are completely in line with China’s economic growth and development. At a deeper level, according to industry sources, Lotus’s change of name not only involves the reconstruction of its brand and corporate culture, but also demonstrates Lotus’s intention to carry out a comprehensive reform from its strategic layout to products and marketing. For the company’s development, this event will also further promote Lotus’s business transformation and growth, help to enhance Lotus’s comprehensive competitiveness and brand influence, and provide impetus for Lotus’s exploration of overseas markets, thus pushing Lotus into the fast lane of development.