Missfresh Expands China-wide Direct-Supply Vegetable Farm Network to Total More Than 1,300 Hectares

Rhea-AI Summary

Missfresh Limited (NASDAQ: MF) has signed an agreement to expand its vegetable farm network by nearly 70 hectares in Luliang County, Yunnan Province. This addition brings its total farm area to over 1,300 hectares across China, enhancing its direct vegetable supply. The company's strategy focuses on high-quality growth, optimizing its supply chain by sourcing products directly from farms, thereby reducing procurement costs and improving efficiency. With this model, Missfresh aims to stabilize supply and enhance cost-effectiveness, contributing to increased gross profits.

Positive

• Expansion of farm network by nearly 70 hectares in Yunnan Province.
• Total farm area increased to over 1,300 hectares, enhancing direct vegetable supply.
• Optimized supply chain reduces procurement costs and improves efficiency.
• Direct sourcing strategy aims to stabilize supply and enhance cost-effectiveness.

Negative

• None.

BEIJING, March 2, 2022 /PRNewswire/ -- Missfresh Limited ("Missfresh" or the "Company") (NASDAQ: MF), a pioneer in China's neighborhood retail industry, has just signed an agreement to add nearly 70 hectares of land in Luliang County in Yunnan Province to its China-wide vegetable farm network. This increases Missfresh's nationwide network of vegetable farms – which directly supply the Company with fresh vegetables – to more than 1,300 hectares.

With a business strategy that prioritizes high-quality growth and profitability, Missfresh continuously makes comprehensive upgrades to its product supply chain. By establishing a supply chain network of farms, factories, and processing facilities across China in order to directly source products from its origin, the Company eliminates middlemen, improves efficiency, and reduces procurement costs.

Laicang Xiao, who is in charge of Missfresh's vegetables segment that receives a direct supply of fresh produce from the Company's farm network, shared that Missfresh's agreement to directly source vegetables from Luliang County's farms employs an order-based planting model, which uses sales forecasts to determine production levels. This allows Missfresh to guarantee the stable supply of vegetables from Luliang County as well as closely control the quantity, quality, and cost of the produce.

Other than Luliang County, Missfresh already directly sources its fresh vegetables from Mengcheng County in Anhui Province, Zhongwei City in the Ningxia Hui Autonomous Region, Zhangjiakou City in Hebei Province, and Tai'an City in Shandong Province – amounting to a total area of more than 1,300 hectares.

Missfresh's strategy of directly sourcing goods from its place of origin is paramount to not only ensuring the stability of product supply but also enhancing the company's influence on the different stages in the supply chain.

Industry insiders have shared that Missfresh's focus on establishing a dense supply chain network for directly sourcing products will help the Company improve the cost-effectiveness of its products, reduce procurement costs, and increase overall gross profits.

Missfresh currently sources its products – such as fresh seafood, vegetables, fruits, meat, eggs, and fast-moving consumer goods – directly from almost 200 farms and 350 factories and processing facilities across China.

About Missfresh Limited

Missfresh Limited is an innovator and leader in China's neighborhood retail industry. The Company invented the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods (FMCGs). Through the "Missfresh" mobile application and Mini Program embedded in third-party social platforms, consumers can easily purchase quality groceries at their fingertips and have the finest products delivered to their doorstep in 36 minutes, on average.

Leveraging its core capabilities, Missfresh launched an intelligent fresh market business in the second half of 2020. This innovative business model is dedicated to standardizing and transforming fresh markets into smart fresh malls. Missfresh has also built up a full stack of proprietary technologies that empower a wide range of participants in the neighborhood retail business, such as supermarkets, fresh markets and local retailers, to jumpstart and efficiently operate their businesses digitally.

For more information, please visit: http://ir.Missfresh.cn.

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SOURCE MissFresh

FAQ

What is the recent development for Missfresh Limited (MF) regarding its vegetable supply chain?

Missfresh Limited has expanded its vegetable farm network by nearly 70 hectares in Luliang County, Yunnan Province, bringing the total area to over 1,300 hectares.

How does Missfresh's supply chain strategy impact its business?

The strategy focuses on direct sourcing from farms, reducing procurement costs and enhancing efficiency, which could improve overall gross profits.

What is the significance of the 1,300 hectares in Missfresh's agricultural network?

The 1,300 hectares represents a significant expansion of Missfresh's direct vegetable supply, supporting its goal of stable product supply.

When did Missfresh announce the expansion of its vegetable farm network?

Missfresh announced the expansion on March 2, 2022.