Company Summary

Overview

ESG Inc. (formerly Plasma Innovative Inc.) is a Nevada corporation primarily involved in the development and operation of sustainable, plant-based food and ingredients, with a focus on mushroom-related products. The company operates through subsidiaries in China and plans to expand into the food industry, emphasizing environmentally friendly and sustainable practices aligned with Environmental, Social, and Governance (ESG) principles.

Business Focus

• Core Business: Production and distribution of mushroom-based products, including:
  • White button mushrooms (fresh and processed)
  • Mushroom compost (Phase III compost)
  • Mushroom seasoning powders (from off-grade mushrooms and stems)
  • Future potential in mushroom-based supplements, meat alternatives, animal leather, and industrial materials
• Sustainable Food Production: Commitment to environmentally friendly practices, resource recycling, and supply chain sustainability.
• Product Development: Focus on technology-driven food processing, including research and development of mushroom products and ingredients.

Subsidiaries & Operations

• Funan Allied United Farmer Products Co., Ltd. (AUFP): Established 2017 in China; involved in high-quality mushroom research, composting, cultivation, processing, packaging, and distribution.
• Anhui Allied United Mushroom Technology Co., Ltd. (AUMT): Produces Phase III mushroom compost with capacity of 90,000 tons/year.
• Anhui Allied United Mushroom Co., Ltd. (AUM): Grows fresh white button mushrooms, with a production capacity of approximately 20 million pounds annually. Began mushroom processing business in late 2024, exporting mushroom seasoning powder.

Business Scale & Financial Highlights

• Revenue (2024): $12,682,330
  • Increase of 70.2% from 2023's $7,452,129
• Net Income (2024): $944,633
  • Compared to a net loss of $324,713 in 2023
• Employees: Approximately:
  • Around 20 management employees
  • 60 full-time operating workers
  • 145 part-time harvesters and runners
• Number of Customers:
  • In 2024, 5 customers accounted for over 10% of revenue:
    • One distributor in Hefei, China (specific percentage not listed)
  • In 2023, 2 customers accounted for:
    • 43% and 21% of revenue respectively
• Market: Focused mainly in China (mainland, Hong Kong), with export and international sales planned.

Key Products & Markets

• Products:
  • Fresh white button mushrooms
  • Phase III mushroom compost (bulk sales and export)
  • Mushroom seasoning powders (processed mushrooms for export)
• Market Trends:
  • Growing global demand for plant-based foods
  • Mushrooms as a nutritious, low-fat, vitamin/mineral-rich ingredient
  • Expectation of increased regulatory scrutiny and demand for safe, ethical sourcing

Operations & Production Facilities

• Main Chinese facilities:
  • 9 bunkers and 31 tunnels for compost production
  • 36 mushroom growing rooms with 20 million pounds capacity
  • Total property, plant, and equipment: approx. $17.2 million (2024)
• US Office:
  • Located in Pennsylvania: leased month-to-month, rent-free

Strategic & Regulatory Environment

• Focus on scalable, sustainable mushroom production
• Operations are managed via subsidiaries with extensive Chinese agricultural assets
• Faces risks associated with Chinese regulatory environment, foreign investment laws, and international trade
• No current legal proceedings or material government investigations

Summary

ESG Inc. is a company dedicated to sustainable mushroom production and processing, with significant capacity in composting and mushroom cultivation. Its revenue growth reflects recent expansion and increased capacity utilization, and it maintains a focus on environmental sustainability and food safety within the Chinese market and for export. The company plans to broaden its product offerings into processed mushroom foods and ingredients.