Hong Yuan Holding HGYN

Hong Yuan Holding Group is a development-stage enterprise focused on supply chain management services, primarily engaged in the wholesale and internet sales of fast-moving consumer goods including food, daily necessities, and electronic products. The company operates through its subsidiary Hongyuan International Holding Group Co., Ltd. and associated agreements with Fengcuiyuan Chang Technology Development Co., Ltd., concentrating on optimizing procurement, logistics, storage, sales, and distribution processes using technologies such as artificial intelligence, IoT, blockchain, and robotics. The company’s core activities involve managing supply chain operations to improve efficiency and cost-effectiveness for product distribution across various consumer goods sectors.

Hong Yuan Holding Group generates revenue through the wholesale and online sale of fast-moving consumer goods such as baijiu, red wine, cigarettes, tea, beverages, local specialties, and mid-to-high-end gifts. The company develops and operates offline brand-authorized stores that sell these products while also supplying goods to cooperative e-commerce platforms. Revenue is derived from product sales to members and partners through store service providers, as well as from trading companies via long-term cooperative relationships with e-commerce platforms.

The company operates through the following segments: Supply Chain Management Services and Retail Store Operations.

• Supply Chain Management Services: This segment focuses on optimizing all activities involved in procuring raw materials and transforming them into products, managing logistics, storage, sales, and shipping to consumers. It leverages technology such as artificial intelligence, IoT, blockchain, and robots to improve supply chain efficiency. The segment serves industries including pre-packaged food, agricultural by-products, household goods, and consumer electronics through wholesale and internet sales channels.
• Retail Store Operations: This segment develops and operates offline brand-authorized stores primarily selling baijiu products at various price points, along with classic red wine brands, renowned cigarettes and teas, local specialties, beverages, and mid-to-high-end goods. The segment also supplies goods to cooperative e-commerce platforms as part of its distribution strategy. Store operations include site selection, decoration, staffing, and customer acquisition through regional service partners who help attract consumers and develop loyalty via stock growth dividends, quality commitments, and after-sales support.

Hong Yuan Holding Group operates in a competitive supply chain and retail industry where it faces pressure from large e-commerce platforms and new retail models that offer low-price promotions on branded alcoholic beverages. The company differentiates itself through its integrated supply chain approach, combining offline store operations with digital platform partnerships and a focus on brand-authorized product distribution. Its competitive advantage lies in its ability to provide value-sharing plans, zero-cost return policies, and direct procurement methods that enhance customer loyalty and reduce intermediate costs.

Hong Yuan Holding Group serves members and partners through its store service providers, as well as other trading companies and e-commerce platforms. The company attracts customers by offering high-quality, reasonably priced products with strong service commitments, including worry-free return and exchange policies. Specific customer names are not disclosed in the filing, but the company references cooperative e-commerce platforms and regional service partners as key components of its distribution and customer acquisition model.