Core Viewpoint - The "stinky shrimp" incident in Shanghai has sparked outrage among parents and revealed the complex capital dynamics behind school meal suppliers, particularly Shanghai Lujie Industrial Development Co., Ltd. (Lujie) and its connections to the New Hope Group [3][4]. Group 1: Company Background - Lujie supplies meals to over 600 schools in Shanghai and is linked to Kilcoy Global Foods, Ltd. (KGF), which has a complex ownership structure involving New Hope Group and its founder Liu Yonghao's family [3][4]. - KGF reported nearly $2.2 billion in total revenue for 2024, a 17.3% year-on-year increase, with net profits exceeding $60 million, marking a 74.1% rise [4][5]. Group 2: Business Practices - Lujie has been accused of misrepresenting its size by participating in bids as a "small enterprise" despite having over 1,000 employees and significant revenue, which contradicts its classification as a large enterprise [3][8]. - The company’s subsidiary, Lujie (Shanghai) Enterprise Development Co., Ltd., claimed to be a small enterprise with 69 employees and revenue of 212 million yuan in 2023, while its parent company operates on a much larger scale [6][8]. Group 3: Supply Chain and Quality Control - The shrimp involved in the incident was sourced from a company also linked to KGF, indicating a tightly controlled supply chain from sourcing to meal preparation [9][10]. - Lujie is connected to a food testing company that conducts inspections for the meals served in schools, raising concerns about potential conflicts of interest as Lujie may be both the supplier and the quality controller [11][12].