Jack Ma, the co-founder of Alibaba Group Holding, has ventured into a new business domain with the establishment of a pre-packaged food company. The venture, named “Hangzhou Ma’s Kitchen Food,” was registered in Hangzhou, Ma’s hometown and the cradle of his business empire. This move signifies Ma’s expanding focus in the agricultural sector following his retirement from Alibaba.
The new company, with a registered capital of 10 million yuan (about US$1.4 million), is a wholly-owned subsidiary of Hangzhou Dajingtou No 22 Arts and Culture, another venture of Ma’s set up in 2019. Ma holds a 99.9% stake in this parent company. “Hangzhou Ma’s Kitchen Food” will focus on the sale of pre-packaged food and the primary processing and retail of edible agricultural products.
Jason Pau, who serves as the executive director and general manager of the company, is also the executive director of international programs at the Jack Ma Foundation, Ma’s philanthropic organization. Another former executive of Ma’s foundation, Xu Shi, has been reported to take a supervisory role in the new venture.
This latest enterprise by Ma is seen as a strategic move into the booming ready-meals industry in China, which has seen significant growth during the pandemic as consumer lifestyles have evolved. Although some reports suggest that the company’s reference to pre-packaged food may not directly imply pre-cooked meals, the venture aligns with the growing market trend. The ready-meals industry in China is expected to reach about 510 billion yuan in sales this year and could potentially double in the next three years.
Since stepping down as Alibaba’s chairman in 2019, Ma has shifted his focus towards agriculture and education. He has been actively exploring various aspects of agriculture, visiting farms and markets globally to gain a deeper understanding of the sector.
“Hangzhou Ma’s Kitchen Food” is part of Ma’s broader investment in agriculture. Earlier this year, he was linked to a fishery and agricultural start-up, 1.8 Metres Marine Technology, with a considerable investment and a diverse business scope including aquatic products and food processing.
Despite his reduced role in Alibaba, Ma continues to wield significant influence over the e-commerce giant. His return to China earlier this year coincided with Alibaba’s largest-ever corporate restructuring, dividing the conglomerate into six independent units. However, Alibaba recently faced a setback with the suspension of plans to list Alibaba Cloud publicly. This news, combined with Ma’s family trust’s announcement to sell a substantial amount of Alibaba shares, led to a sharp drop in the company’s stock value.
Ma, through a letter from Alibaba’s chief people officer, clarified his intention to support his initiatives in agricultural technology and philanthropy with the funds from the planned share sale. He also emphasized that he has not yet sold any Alibaba shares, considering the stock to be undervalued at present.
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