Core Viewpoint - Hema has faced multiple food safety issues recently, including non-compliance in the sale of kiwifruit and eggs, raising concerns in the market [1][3][4]. Group 1: Food Safety Issues - Hema's kiwifruit was found to have a chlorpyrifos residue level of 0.085 mg/kg, exceeding the standard limit of 0.05 mg/kg [1][2]. - A recent inspection revealed that Hema's eggs had exceeded the allowable limits for agricultural and veterinary drug residues, leading to significant public discussion [3]. - Hema has been involved in several food safety incidents this year, including non-compliance with pesticide standards for pears and fish [4]. Group 2: Company Response and Market Impact - Hema has not yet responded to the recent kiwifruit contamination issue, while the egg supplier claimed that the non-compliance was due to operational oversights at a new store [3]. - The company has been criticized for its supply chain management and food safety practices, which were once considered innovative in the retail sector [4]. - Hema's expansion strategy includes opening 72 new stores in 2024, with a focus on second and third-tier cities, indicating a significant growth trajectory despite the ongoing food safety challenges [6]. Group 3: Industry Context - The retail industry is undergoing significant changes, with traditional supermarkets like Yonghui and Wumart adjusting their strategies in response to competitive pressures [6]. - Hema's founder stepped down in March 2024, and the company is accelerating its expansion, which raises questions about maintaining product quality amid rapid growth [6]. - Ensuring food safety is a critical issue not only for Hema but for all food production and retail companies, as consumer trust is paramount [6].

Core Viewpoint - Recent food safety issues have emerged at Hema, including pesticide residue in products and the sale of contaminated eggs, raising concerns about the company's quality control measures [1][14][16]. Group 1: Food Safety Incidents - Hema's Hefei store sold Kuerle fragrant pears that were found to have pesticide residues exceeding national safety standards, specifically with a detection of 0.16 mg/kg for ethephon, while the standard is 0.07 mg/kg [3][12]. - A recent report indicated that Hema's products have been frequently associated with food safety problems, including a case where live frogs were found in lettuce purchased from the store [5][7]. - In addition to the pears, a batch of instant green heart kiwifruit sold by Hema in Nanjing was also found to have pesticide residues (chlorpyrifos) exceeding the legal limit, with a detection of 0.085 mg/kg against a standard of 0.05 mg/kg [11][12]. Group 2: Egg Contamination - Hema's Qingdao store was implicated in a case where antibiotic residues were found in "antibiotic-free" eggs, with detections of dimetridazole at 15.5 μg/kg and trimethoprim at 13.0 μg/kg, both exceeding the allowable limits [14][16]. - The supplier of the contaminated eggs, Xiaochi Egg Industry, has since been suspended from cooperation with Hema, indicating a response to the food safety concerns [16]. Group 3: Company Growth and Strategy - Despite the recent food safety issues, Hema has been expanding its operations, with plans to open nearly 100 new stores in the upcoming fiscal year, aiming to enter several new cities [17]. - As of early 2025, Hema has achieved profitability for nine consecutive months, indicating a strong financial performance despite the challenges faced [16].