80 per cent of Beijing’s edible ice cubes from ‘illegal’ factoriesl Only six manufacturers have production license for edible ice in the capital in a market worth $80-130 million

80 per cent of Beijing’s edible ice cubes from ‘illegal’ factories

China Daily/ANN | Thu Aug 1 2013

Only six manufacturers have production license for edible ice in the capital.

China, August 1, 2013

As much as 80 per cent of the edible ice cubes in Beijing’s shops and restaurants come from “illegal” factories, National Business Daily reported. Only six manufacturers have production license for edible ice in the capital, making the total output valued at 100 million yuan (S$20.75 million) in the summer season. But the output of the whole market is valued at 500 to 800 million yuan, which means at least 80 per cent of the ice come from non-qualified factories, the report said. Edible ice companies must have a QS, or Quality Standard identification since 2005. And it costs at least 30,000 yuan to cover the certification besides building laboratories and hiring inspectors, according to an agency for quality certification. Ice cubes at several restaurants were found to be dirtier than toilet water, Chinese media reported last week. According to CCTV, ice cubes used by fast food giants including KFC, McDonald’s and Guangzhou-based Kungfu at their Beijing branches were tested to contain bacteria at severe levels. The KFC ice cubes contained levels of bacteria which were 20 times higher than the national limit, and 13 times higher than water samples taken from toilet bowls. “The market is in chaos,” said an employee of an ice company, “Costs are increasing and those with qualification certificates would have closed down if they didn’t rely on big buyers.”

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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