'Sweet potato economy' helps Quzhou enterprise strengthen its industry
Zhejiang Huakang Pharmaceutical Co Ltd has been rooted in Kaihua county, Quzhou, for 61 years and is a national high-tech enterprise engaged in the research, development, production, and sale of various functional sugar alcohols and health food ingredients.
In 2003, struggling with raw material procurement and transportation, the Huakang management team visited Henan province to seek a stable raw material base in the corn-producing area, creating the foundation for the "sweet potato economy". This refers to a high-growth model created by Zhejiang. Under it, local people invests in various places in China and overseas – participating in the global supply chain – while keeping its roots firmly in Zhejiang, making the local economy stronger.
Over the past 20 years, Huakang Xylitol Technology Co Ltd in Jiaozuo, Henan, as a wholly-owned subsidiary of Huakang, has grown into one of the largest and most competitive enterprises in the domestic xylitol industry.
Since then, other subsidiaries of Huakang have been gradually established at home and abroad, ensuring the enterprise's continued development.
Jiaozuo in Henan, Gaomi in Shandong and Yahua in Sichuan serve as raw material bases, providing sufficient raw material support for enterprise development. The Amsterdam office serves as a warehousing center for European markets to ensure that overseas orders can be delivered on time.
Huakang's products are currently exported to more than 80 countries and regions around the world. In 2022, Huakang achieved an operating income of 2.2 billion yuan ($305 million), an increase of 38.02 percent.