HONG YUAN HOLDING GROUP

Hong Yuan Holding Group

Overview

Hong Yuan Holding Group (formerly Cereplast, Inc.; previously Biocorp North America Inc.) is focused on supply chain management, wholesale and internet sales of fast-moving consumer goods (FMCG), including food, daily necessities and electronic products across multiple categories.

History and ownership

• Incorporated September 29, 2001 in Nevada. The company has undergone name changes and completed bankruptcy proceedings in 2014, adopting a liquidation basis of accounting for discontinued operations.
• Xudong Li has served as a director and officer since 2020 and is the majority shareholder.
• In October 2024 the company began a restructuring involving Hongyuan HK and related Chinese entities, including Fengcuiyuan Chang Technology Development Co., Ltd. and Rongcheng (Sichuan) Supply Chain Management Co., Ltd., with the group consolidated under common control.

Business activities

• Core activities include procurement, warehousing, logistics and distribution for FMCG through physical stores, contract/manufacturing arrangements, and online channels.
• The company uses technologies such as AI, Internet of Things (IoT), blockchain and robotics to improve supply chain and distribution processes.

Operations and store footprint

• Operates physical stores and works with contract manufacturers and partners to distribute products, with an initial emphasis on Chinese liquor and related goods and planned expansion into broader FMCG categories.
• Active locations include Chongqing and Jiangyou (Sichuan Province). A Leshan site was in the site selection/decoration phase as of late 2024.
• Store ownership model: prior to December 31, 2024, stores were planned to be invested in so that Rongcheng (Sichuan) Supply Chain Management Co., Ltd. would hold a 55% stake. By June 2025 the company revised its approach to fund store openings without retaining equity ownership; invested funds are expected to be recovered as loans repaid from store profits.

Business model and revenue approach

• Before 2025 the company focused on distributing well-known brands through offline stores and partner/member channels, planning to register its own brand and pursue contract manufacturing with established liquor producers.
• After June 2025 the company shifted to funding store openings while recovering investments through loan arrangements rather than equity stakes. Regional service partners assist in sourcing store partners and members; the company supports partners by sharing stock growth dividends and providing commitments on quality, price and after-sales service.

Products and brands

• Liquor and spirits: brands listed with the company include Moutai, Wuliangye, Luzhou Laojiao, Jiannanchun, Shede, Xijiu, Langjiu, Jinsha, Jingjiu, Fenjiu, Shixian Taibai, Jiang Xiaobai, Great Wall and others.
• Tea and beverages: premium teas including Zhongcha varieties (for example Zhongcha Dianhong, Zhongcha Zijuan, Zhongcha Qianli Jiangshan) and Nongfu Spring beverages.
• Cigarettes, local specialties, seasonal products, gifts and mid-to-high-end gift items.
• Cosmetics: brands such as Chanel, Lancôme, La Mer and SK-II are included in the product mix.
• Private label and contract manufacturing: the company pursues OEM/private label opportunities and intends to establish strategic OEM partnerships with quality assurance controls.
• Other contemplated categories include tea, beverages, rice, cooking oil and related daily-life goods.

Market positioning and channels

• Primary channels: partner and member sales through offline stores and service providers, plus cooperative relationships with other trading companies and e-commerce platforms.
• Value proposition: focus on high-quality, reasonably priced products with strong service, member-based programs and customer-friendly return/exchange policies to promote loyalty and repeat purchases.
• Market dynamics: online and live-streaming channels have increased price competition; the alcohol market is moving toward lower volumes with higher prices, increasing brand concentration and demand for brand endorsement.

Employees and leadership

• Ten full-time employees: one executive, two in finance, and seven in operations, sales and marketing.
• Leadership: Mr. Xudong Li serves as director/officer and is the principal shareholder.

Headquarters and facilities

• Administrative offices are located in Chengdu under a two-year lease expiring April 24, 2026.

Financial and accounting notes

• The company characterizes itself as a development-stage enterprise, focused on establishing operations, capital raising and product research.
• The reorganization with Fengcuiyuan and related entities is accounted for as a reorganization of entities under common control, with assets and liabilities recorded at historical carrying amounts.

The summary reflects the company’s public disclosures through late 2024 and the model shift announced in 2025.