---
title: "Once Famous for Non-Fried Noodles, Wugudao Chang Now Sells Equity and Debt, Clearing Assets and Fading from the Market"
description: "Following the sale of Golden帝 chocolate, is Wugudao Chang, the instant noodle brand, next on COFCO's cleanup list? The Beijing Equity Exchange has listed the equity and debt of COFCO Jiangxi Natural Wugu Food Co., Ltd. for sale, indicating the company's ongoing losses and the brand's decline."
author: "阿茹汗"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-09-11"
language: "en"
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# Once Famous for Non-Fried Noodles, Wugudao Chang Now Sells Equity and Debt, Clearing Assets and Fading from the Market

> Following the sale of Golden帝 chocolate, is Wugudao Chang, the instant noodle brand, next on COFCO's cleanup list? The Beijing Equity Exchange has listed the equity and debt of COFCO Jiangxi Natural Wugu Food Co., Ltd. for sale, indicating the company's ongoing losses and the brand's decline.

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After Golden帝 chocolate, will the instant noodle brand Wugudao Chang become the next target for COFCO Group's cleanup? For Wugudao Chang, which has been struggling operationally, this is not impossible. Perhaps the integration starts with divesting non-performing assets. The Beijing Equity Exchange yesterday listed the equity and debt of COFCO Jiangxi Natural Wugu Food Co., Ltd. for sale. Behind the sale of its subsidiary is the difficult journey of this once-famous instant noodle company after its glory faded.
Public information shows that COFCO Jiangxi Natural Wugu Food Co., Ltd. began construction in June 2009 and started production in August of that year, mainly producing Wugudao Chang's fried and non-fried instant noodle series. The company's business scope includes food technology development, processing, and sales of instant noodles. According to the Beijing Equity Exchange, the listing price for 100% equity and debt of COFCO Jiangxi Natural Wugu Food Co., Ltd. is 125 million yuan.
COFCO Jiangxi Natural Wugu Food Co., Ltd. is a wholly-owned subsidiary of COFCO Natural Wugu Food Investment Co., Ltd., and the parent company did not explain the reason for selling this subsidiary. However, from the sale information, it can be seen that the subsidiary's continuous losses may have prompted the parent company to sell. In 2015, COFCO Jiangxi Natural Wugu Food Co., Ltd. had operating revenue of only 27,000 yuan, operating profit of -4.3718 million yuan, and net profit of -4.3694 million yuan; in the first half of this year, operating revenue was 48,600 yuan, operating profit was -343,800 yuan, and net profit was -343,800 yuan. Notably, the company has zero employees.
It is reported that Wugudao Chang is currently under the entrusted management of China Foods Limited, a subsidiary of COFCO Group. China Foods responded to Beijing Business Today yesterday, saying that COFCO Wugudao Chang's instant noodle business mainly focuses on the seven northern provinces and cities, and does not plan to expand to the southern market. COFCO Jiangxi Natural Wugu Food Co., Ltd. has already ceased production. According to the "Guiding Opinions of the CPC Central Committee and the State Council on Deepening the Reform of State-Owned Enterprises," in accordance with the "Work Plan for Central Enterprises to Deepen Reform, Slim Down and Get Fit" and COFCO Group's specific work deployment for "slimming down, improving quality and efficiency," China Foods Limited intends to transfer the equity and debt of COFCO Jiangxi Natural Wugu Food Co., Ltd. Relevant progress can be monitored on the Beijing Equity Exchange announcement.
Another source close to COFCO Wugudao Chang revealed that, in fact, several years ago, COFCO Jiangxi Natural Wugu Food Co., Ltd. had already dismissed its employees. From the current sale of equity and debt, it is clear that the company has entered the stage of asset liquidation, and the suspension of operations is also a reflection of Wugudao Chang's poor business performance.
Wugudao Chang once became famous overnight for its "non-fried" concept, but due to the founder's excessive factory construction leading to cash flow problems, the company had to sell assets. In 2009, state-owned enterprise COFCO Group specifically allocated 109 million yuan for Wugudao Chang to repay debts and pay bankruptcy costs, thereby acquiring 100% equity of the company. Since then, Wugudao Chang has become a subsidiary of COFCO Group.
Although it had the strong backing of COFCO, Wugudao Chang failed to benefit from the shade of a big tree. Since it was not included in the listed company segment, Wugudao Chang's operating data has not been made public. However, Zhu Danpeng, a researcher at the China Brand Research Institute, said that after being incorporated into COFCO Group, Wugudao Chang has been unable to change its loss-making situation. COFCO Group has not given up on the brand, providing financial support and also conducting extensive brand promotion, adjusting product flavors, etc., but these measures have all failed, and Wugudao Chang's market share has been shrinking. "It is understood that Wugudao Chang's own sales team has been disbanded, and other COFCO subsidiaries are managing it on its behalf. Now it can only be said to be maintaining the status quo," Zhu Danpeng revealed.
**The decline of Wugudao Chang is first closely related to the consumption environment of instant noodles.** Due to challenges from health concepts and the rise of other substitutes, the instant noodle industry is declining. Data shows that in 2015, China's total instant noodle production was 36.249 billion packs, down 8.54% year-on-year; instant noodle sales were 49.091 billion yuan, down 6.75% year-on-year. Among the existing 22 companies, 6 exited the market, and another 13 saw production declines. When the overall industry faces a cold winter, small and medium-sized enterprises are the most vulnerable.
**Secondly, Wugudao Chang's own problems are also prominent.** Zhu Danpeng analyzed: "For the instant noodle industry, non-fried is a pseudo-innovation. In addition, Wugudao Chang did not highlight this feature. Whether in product, channel, or price, Wugudao Chang did not keep up with market changes, being left far behind by companies like Master Kong and Uni-President, thus becoming a declining instant noodle brand."
Beijing Business Today (Reporter: A Ruhan)
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