Tehmag Foods held a press conference today, unveiling strategic plans for robust expansion into the Southeast Asian market, with Malaysia at the forefront of its ambitions. Despite facing challenges in the global environment, including slower-than-expected recovery in China’s consumer market, elevated interest rates, inflation in major countries, and currency depreciation, Tehmag remains committed to achieving annual growth.
In the first three quarters, Tehmag reported impressive financials, with combined revenue reaching 4.254 billion yuan and a net after-tax profit of 512 million yuan, reflecting a substantial 7.91% YoY increase. Both revenue and profit marked record highs, showcasing the company’s resilience.
General Manager Wu Wenqin’s guiding principle, “the number of customers is king,” remains central to Tehmag’s business philosophy. The company actively focuses on increasing monthly transaction customers in key markets like Taiwan, China, Malaysia, and Hong Kong to ensure stable performance growth.
For market operations in Taiwan, Tehmag Foods plans to continue introducing popular Japanese and Korean products, implementing a business model where commodities drive raw material sales. Simultaneously, the company aims to address labor shortage challenges by expanding into the OEM field, offering solutions to customer pain points.
In the Chinese market, Tehmag pursues the dual objectives of augmenting the number of transaction customers and enhancing the production capacity of self-made products. Optimistic about the rise of new retailers like Sam’s Club and Hema under rational consumption trends, Demai foresees effective product implementation from their foundries.
To tackle on-machine production challenges, Tehmag Foods collaborates with Xinmai and Sanneng, intending to strengthen ties with other equipment manufacturers. In navigating the Southeast Asian market, Demai strategically positions Malaysia as a center for development. Currently the second-largest food raw material supplier in Malaysia, Demai is actively engaged in negotiations for further collaborations, anticipating a substantial contribution to next year’s performance.
