Famous Beijing food manufacturer fined for violating food labelling and food safety rules
In a statement released, Yu Shi Yuan admitted that the firm, together with its subsidiaries Yu Shi Xin Yu and Yu Shi Yuan e-commerce firm, was fined RMB$15,000, with another illegal earnings of 3877 yuan confiscated for violating China’s food safety law.
Food and Drug Administration of Beijing Huairou district penalised Yu Shi Yuan and its two subsidiaries late last month (28 Aug).
One is able to find more than 500 Yu Shi Yuan points of sales in Beijing alone. Yu Shi Yuan Flagship stores are also present in the tourist hotspots. Its speciality lies in developing, manufacturing, and selling Beijing food and snacks.
The food safety saga involved Yu Shi Yuan’s original flavour sugar-coated haws, otherwise known as bingtang hulu in Mandarin.
The food ingredients information printed on the product’s outer packaging were found to differ from the details stated on the inner packaging.
For selling the food, Yu Shi Yuan and its two subsidiaries have violated manufacturing, labelling, and food safety law.
The three have paid the total penalty of RMB$18,877.
Following the offence, Yu Shi Yuan said it had conducted an investigation and revamped its packaging design processes, and strengthened quality management.
It also planned to further standardise its production process, in order to “safeguard the stable development of the firm.”
Previous offences
Yu Shi Yuan was previously penalised for selling individually packaged food online illegally.
Yu Shi Yuan’s e-commerce firm got caught for selling individual packs of crispy Fu Ling Gao snacks without permission from the authorities in August last year.
It the other subsidiary, Yu Shi Xin Yu had violated the same law with the online sales of individually packed mahua (fried dough twist). The two subsidiaries were each slapped with a fine of RMB$10,000. Illegal earnings of over RMB$800 were also confiscated.
Business performance
Yu Shi Yuan’s operating revenue for the first half of 2018 was 5.86% lower than the same period last year, reaching RMB$126 million, according to its latest financial report.
Its net profit nosedived 19.87% to reach RMB$5.25 million.
It said that it would work on its research and development and expand its sales channel to meet industry competition.
For instance, it had launched around eight new products which contained improved food texture and combined elements of food and medicine to meet consumer demand for healthier food.
The firm added that it had ramped up quality control by strengthening food safety training and product inspection.
