Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached $6.554 billion, a 6% increase year over year [3] - EBITDA was $786 million, reflecting a 16.6% increase compared to the previous year [3] - Operating profit stood at $598 million, up 19.4% year over year [3] - Profit attributable to owners was $364 million, a 20.9% increase from last year [3] - Basic earnings per share were $2.84, also a 20.9% increase year over year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit in Q1 2025 [4] - The pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [9] - In China, operating profit was $250 million, down 14.3% year over year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year over year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year over year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year over year [7] - The number of slaughter hogs in China increased by 0.1% year over year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, improve product mix, adjust pricing, and control costs [10] - Key business priorities include improving the pork business, expanding market networks, and optimizing the business portfolio [11] - The focus remains on industrialization, diversification, internalization, and digitalization to enhance market position [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and enhanced marketing efforts [14][16] - Management expects the second quarter to show recovery in packaged meat volume and profit [16] Other Important Information - The hog production business is seen as a supporting business rather than a core focus, with strategies tailored to local market conditions [42][43] - The company plans to maintain a vertical integration level of 20% to 30% in hog production, focusing on fresh pork and packaged meat as core businesses [65] Q&A Session Summary Question: Reasons for decline in China packaged meat business - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: Outlook for packaged meat business in Q2 2025 - Management expects the packaged meat business to stop declining and gradually recover in Q2, with full-year growth anticipated [16] Question: Impact of tariffs on hog prices - Management believes tariffs will have limited short-term impact on hog prices, with supply and demand balance being the primary driver [34][35] Question: Hog production improvement drivers - The improvement in hog production is driven by reduced raising costs and improved KPIs rather than hog prices [21] Question: U.S. pork business outlook - Management expects profitability in the U.S. pork business to improve in Q2 and Q3, aligning with seasonal trends [67]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $6.554 billion, a 6% increase year-over-year [3] - EBITDA reached $786 million, up 16.6% from the previous year [3] - Operating profit was $598 million, reflecting a 19.4% increase year-over-year [3] - Profit attributable to owners was $364 million, a 20.9% increase compared to last year [3] - Basic earnings per share rose to $2.84, marking a 20.9% increase year-over-year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit [4] - Pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [8] - In China, operating profit was $250 million, down 14.3% year-over-year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year-over-year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year-over-year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year-over-year [7] - The number of slaughter hogs in China increased by 0.1% year-over-year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, enhance market competitiveness, and focus on industrialization, diversification, internalization, and digitalization [10] - Priorities include improving the pork business, expanding the market network, and optimizing the business portfolio [10][11] - The company plans to adapt to market changes and strengthen competitive edges to drive steady improvements in sales volume and results [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and increased marketing investments [14][16] - Management expects the packaged meat business to stabilize in the second quarter and grow in the second half of 2025 [16] - The hog production business is expected to improve significantly in 2025, driven by reduced raising costs and improved KPIs [21] Other Important Information - The company anticipates that the profit per ton for packaged meats will be lower than last year but will remain at a relatively high level [17] - The hog production business in China is expected to see significant improvements, with a projected profit increase of around RMB 500 million year-over-year [21] - The company is focusing on maintaining a strong position in the global pork industry while tailoring strategies based on local market conditions [43][44] Q&A Session Summary Question: What are the reasons for the decline in the packaged meat business in Q1? - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: What measures are being taken to return the packaged meat business to growth? - Eight measures were outlined, including specialized sales forces, expanding the point of sales, and increased marketing investments [14][16] Question: What is the outlook for hog prices and production in China? - Management expects hog prices to be lower than last year, but improvements in hog production are anticipated due to reduced raising costs [20][21] Question: How will tariffs impact the hog production business? - Tariffs are expected to have limited short-term impact on hog prices, but may affect raising costs in the long term [35][56] Question: What is the expected contribution of different product categories in the packaged meat business? - Frozen and snack products are expected to grow faster, with contributions increasing from around 5% to 8% by the end of the year [62]

Financial Performance - Total revenue for 2024 was $25,941 million, a decrease of 1.1% compared to $26,236 million in 2023[12] - Operating profit increased by 63.4%, reaching $2,404 million, compared to $1,471 million in the previous year[12] - Profit attributable to the company's owners rose to $1,471 million, up 142.7% from $606 million in 2023[12] - In 2024, the company's total revenue decreased by 1.1% to $25.941 billion, primarily due to lower sales volumes in meat products and pork, partially offset by price increases[57] - Operating profit surged by 63.4% to $2.404 billion, driven by a turnaround in the pork business and continued growth in the meat products segment[57] - The meat products segment accounted for 92.9% of the company's operating profit and 52.6% of total revenue in 2024, compared to 139.4% and 51.5% respectively in 2023[57] - The company's pork operating profit reached $356 million in 2024, a significant recovery from a loss of $480 million in 2023[61] - The company's net profit margin improved to 6.6% in 2024 from 3.2% in 2023, reflecting a 3.4 percentage point increase[69] - Cash and bank balances as of December 31, 2024, were $2.055 billion, up from $1.156 billion in 2023, indicating improved liquidity[71] - Operating cash flow for 2024 was $2.519 billion, a significant increase from $1.617 billion in 2023, driven by substantial profit growth[73] Market and Sales Performance - Pork sales volume decreased by 4.9% to 3,765 thousand tons, while meat product sales volume fell by 3.0% to 3,100 thousand tons[12] - North America contributed 53.0% of total revenue and 49.4% of operating profit in 2024, compared to 54.0% and 22.4% in 2023[49] - The company's meat products revenue in Europe increased by 24.7% to $1.929 billion, attributed to higher sales volumes and average price increases[60] - In North America, meat products revenue rose by 0.5% to $8.317 billion, as higher average prices offset a decline in sales volume[60] - Pork segment revenue fell by 4.3% to $10.343 billion, with a total slaughter volume of 45.353 million pigs, down 7.8% from 2023[61] - The total import volume of pork and pork offal in China for 2024 is expected to be 2.28 million tons, a decline of 15.7% from 2023[50] - The company is focused on expanding its market presence in North America and Europe, which are critical for its overall performance[49] Strategic Initiatives - The company aims to enhance its global competitiveness through digitalization and optimization of processes to reduce costs[18] - The company anticipates further declines in commodity prices and lower interest rates in 2025, which may benefit cost reduction and profit growth[18] - The company will continue to implement its "two adjustments and one control" strategy to address external pressures and maintain stable operational indicators[15] - The company is focused on expanding its market presence and improving profitability through strategic adjustments in its pork business[17] - The company is investing in new product development and technology to enhance its competitive edge in the pork industry[49] - The company aims to continue improving pork business operations and expand meat sales to enhance market competitiveness and sustain growth[65] Corporate Governance - The board consists of eight directors, including four executive directors and three independent non-executive directors[21] - The company is committed to maintaining strong corporate governance through its independent directors and experienced management team[21] - The board has undergone changes, with a reduction from nine to eight members, reflecting a streamlined governance structure[21] - The company emphasizes the importance of leadership experience in its executive team, with members having extensive backgrounds in finance and operations[22] - The board composition includes a diverse range of backgrounds and industry experience, enhancing its effectiveness[107] - The company has established a code of conduct applicable to employees and directors, which is regularly reviewed[119] - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as governance policies[118] Sustainability and Social Responsibility - The company is committed to sustainable protein options and monitors greenhouse gas emissions across its operations, focusing on energy efficiency and renewable energy utilization[99] - The company has been selected as a constituent of the Hang Seng Sustainable Development Index for 2024 and received an A+ rating, indicating recognition of its performance in sustainability[100] - Charitable donations made by the group during the review period totaled $23 million[169] - The company continues to engage with stakeholders to ensure the execution of its sustainability initiatives[150] Shareholder Information - The company plans to distribute a final dividend of HKD 0.40 per share, bringing the total dividend for the year to HKD 0.50 per share[18] - The total dividend for the fiscal year ending December 31, 2024, is proposed at HK$0.50 per share, amounting to approximately HK$64.15 billion (about $8.25 billion)[163] - The board anticipates that future interim and final dividends will not be less than 50% of the profit attributable to equity holders of the parent company[166] - The total distributable reserves of the company as of December 31, 2024, amount to $2.146 billion[168] Management and Leadership - Wan Long has over 50 years of experience in the meat processing industry and has been instrumental in the company's growth into an international entity[21] - Guo Lijun was appointed as CEO on August 12, 2021, and has over 20 years of experience overseeing financial operations[22] - Wan Hongwei was appointed as executive director and vice chairman on August 12, 2021, and has held various roles within the company since 2004[25] - Ma Xiangjie has over 28 years of experience in the group and was appointed as president of Shuanghui Development on December 26, 2017[27] - The management team has extensive experience in finance and investment, which supports strategic decision-making for future growth[42][43] Risk Management - The group conducted an enterprise risk assessment in 2024 to analyze and report major risks and establish relevant monitoring measures, concluding that the ERM system is effectively operating[142] - The board believes that the group's risk management and internal control systems are effective and appropriate, with no significant concerns identified that could impact financial, operational, or compliance matters[142] - The risk management department executes risk-based audit projects and reports major issues and management's corrective actions to the audit committee[141] Acquisitions and Investments - The company completed the acquisition of a high-end dry sausage production facility in Tennessee from Cargill Meat Solutions Corporation in July 2024, aiming to enhance its growth strategy in value-added meat products[88] - The company acquired 50.1% of Argal Alimentación, S.A. in March 2024, establishing a solid platform for growth in the Spanish and European meat products market[89] - The company completed the acquisition of Goodies Meat Production S.R.L. in February 2023, enhancing its product portfolio in Europe[91] Shareholding Structure - As of December 31, 2024, Mr. Wan Long holds 4,065,216,090 shares, representing approximately 31.68% of the company's total issued share capital[188] - Mr. Ma Xiangjie has control over 5,029,376,978 shares, accounting for about 39.20% of the total issued share capital[188] - The family trust structure allows for significant control over the company's voting rights and share ownership, impacting corporate governance[188] - The overall shareholding structure indicates a concentrated ownership, with key individuals holding substantial percentages of the total issued share capital[188]

Core Viewpoint - The financial reports of major food and beverage companies in China for 2024 show modest revenue growth, indicating a competitive landscape where established players are adapting to market changes and consumer preferences [1][4][9]. Group 1: Revenue Performance - Unified Enterprises China reported total revenue of 30.332 billion yuan, a year-on-year increase of 6.1% [1]. - Nongfu Spring's total revenue reached 42.896 billion yuan, growing by 0.5% year-on-year [1]. - Master Kong's revenue was 80.651 billion yuan, with a growth of 0.3% [1]. - China Foods reported 41.492 billion yuan in revenue, up 0.21% year-on-year [1]. - Haitian Flavoring's revenue was 26.901 billion yuan, reflecting a 9.53% increase [1]. - The revenue growth of these companies translates to significant absolute increases, with Unified Enterprises China adding 1.741 billion yuan, Master Kong adding 233 million yuan, and Nongfu Spring adding 229 million yuan compared to 2023 [1]. Group 2: Business Adaptation - Nongfu Spring experienced a 21.3% decline in its core bottled water segment, which dropped from 47.5% to 37.2% of total revenue, while its tea beverage segment grew by 32.3%, increasing its share from 29.7% to 39% [3][4]. - The shift in revenue sources illustrates how companies like Nongfu Spring are adapting to market fluctuations by reallocating resources to more profitable segments [3][4]. Group 3: Industry Trends - Companies with annual revenues exceeding 20 billion yuan are increasingly diversifying their business lines to maintain growth and fend off competition [4][5]. - The average revenue of companies in this category is significant, with the 500th ranked company on the China Private Enterprises 500 list having a revenue of 26.3 billion yuan [5]. - The historical context shows that these companies have evolved over decades, adapting to market changes and consumer demands, which has allowed them to emerge as industry leaders [5][6]. Group 4: Growth Strategies - The transition from "quantity" to "quality" in the consumer market from 2013 to 2024 highlights the need for companies to innovate and adapt to changing consumer preferences [8][9]. - The overall revenue of major food and beverage companies has shown slight fluctuations but maintains a growth trend, indicating resilience in the face of market challenges [9][10]. Group 5: Long-term Growth Metrics - The compound annual growth rate (CAGR) for major companies from 2013 to 2023 shows varied performance, with Nongfu Spring leading at 15.39% and others like Wahaha and China Wangwang showing negative growth [17][19]. - The average CAGR for the 14 companies analyzed is 6.48%, comparable to global top-tier companies during the same period [19][20]. Group 6: Market Expansion - Companies are increasingly looking to international markets for growth, with Wan Zhou International's acquisition of Smithfield Foods exemplifying a successful global expansion strategy [63]. - Mengniu's acquisition of the Southeast Asian ice cream brand Aice demonstrates the potential for growth in international markets [64].

Core Viewpoint - The A-share and Hong Kong stock markets experienced significant declines, with major indices dropping over 2% to 3% amid ongoing market volatility and external pressures [2][3][5]. Market Performance - As of the report, the Shanghai Composite Index fell by 2.22% to 3075.75, while the Shenzhen Component Index dropped by 3.04% to 9138.12. The ChiNext Index also saw a decline of over 3% [2][3]. - In the Hong Kong market, the Hang Seng Index opened down by 3.81%, and the Hang Seng Tech Index fell by over 5%. Notably, the pharmaceutical and consumer sectors faced significant losses, with companies like Wan Zhou International and WuXi Biologics experiencing declines of nearly 10% and over 8%, respectively [5]. Corporate Actions - Multiple companies announced share buyback and stake increase plans, with at least 56 A-share listed companies releasing such announcements between April 7 and 8. This included nearly 140 companies disclosing share repurchase plans [15]. - China Aluminum Group and China Minmetals Group both announced plans to increase their stakes in listed companies, with China Aluminum planning to invest between 1 billion to 2 billion RMB [14]. Government and Institutional Support - The "national team" has been actively buying ETFs to stabilize the market, with significant purchases reported from Central Huijin Investment and other state-owned entities [17][21]. - The People's Bank of China indicated readiness to provide sufficient re-lending support to Central Huijin, further emphasizing the commitment to market stability [17]. Investment Outlook - Analysts maintain a relatively optimistic outlook for the A-share market, suggesting that despite uncertainties from trade tensions, the influx of capital and institutional support could lead to a more stable market environment [23]. - The focus on high-quality and high-dividend assets is expected to prevail, with potential opportunities arising from recent market dips [23].

Summary of the Conference Call for Wan Zhou International & Shuanghui Development Industry and Company Overview - The conference call primarily discusses the performance and outlook of Wan Zhou International and Shuanghui Development in the meat processing industry, particularly focusing on the U.S. market and its various business segments [1][4]. Key Points and Arguments 2025 Business Outlook - Wan Zhou International anticipates growth in its U.S. pork business in 2025 despite rising hog prices, as production costs are expected to decrease. The company expects the hog farming segment to remain profitable due to favorable futures market conditions [3][4]. - The meat processing segment will face cost pressures but will respond through formula pricing adjustments, increasing self-owned capacity, and cost-saving measures [3][4]. - The company plans to reduce upstream capacity, with hog output expected to decrease from 17.5 million heads to 11.5 million heads, aiming for a future target of around 10 million heads [3][7]. Market Conditions - The U.S. protein supply shortage has led to high beef and chicken prices, which is expected to positively impact the sales of pork and its products in 2025 [5][4]. - The company will optimize production processes and enhance operational efficiency to improve profitability [5][4]. Strategic Developments - Wan Zhou International successfully listed Smithfield, leveraging capital markets for expansion and enhancing investor confidence through increased transparency [8][4]. - The company is focusing on industrialization, diversification, internationalization, and digitalization, with plans to compress hog farming scale and reduce the ratio of hog farming to slaughtering operations to below 30% [9][10]. Dividend Policy - The dividend payout ratio has been adjusted from 30% to 50%, with a commitment to maintain this policy based on operational performance and cash flow [11][4]. Shuanghui Development's Growth Plans - Shuanghui Development expects to increase its network by over 10% in 2025, adding more than 200,000 outlets, with a focus on expanding new sales channels [12][4]. - The company plans to enhance its channel strategy by filling gaps in existing channels and expanding into new ones, with expectations that new channels will account for over 20% of total sales by 2026 [13][4]. Operational Adjustments - Shuanghui Development has implemented a more targeted performance assessment mechanism for its sales teams, focusing on individual and team performance linked to specific product categories [6][4]. - The company anticipates a significant increase in personnel dedicated to meat products, reflecting a 50% increase in workforce in this area [14][4]. Pricing and Market Trends - The average pork price in 2025 is expected to be lower than in 2024, with a projected decline of approximately 2 yuan from last year's average of 17 yuan [24][4]. - The U.S. market is expected to see stable growth, with feed prices declining and pork prices rising, while product sales are also anticipated to increase [25][4]. European Market Insights - The European market is expected to see a decline in hog prices due to increased supply, benefiting the slaughtering industry but reducing profitability in hog farming [18][4]. Export Dynamics - Clearfield's export business to Mexico and Canada is significant, with Mexico accounting for a larger share. The company plans to increase high-value product exports to mitigate the impact of tariffs [19][4]. Additional Important Information - The company is focusing on technological upgrades and innovations, including the introduction of AI, to enhance the competitiveness of the traditional meat industry [10][4]. - The overall strategy includes maintaining a strong position in the U.S. slaughtering and meat processing sectors while optimizing business operations through mergers and acquisitions [18][4].

Financial Performance - WH Group Limited reported a revenue of $25,941 million for the year ending December 31, 2024, a decrease of 1.1% compared to $26,236 million in 2023[3][16]. - The company experienced a 3.0% decline in meat product sales, totaling 3,100 thousand tons, and a 4.9% decrease in pork sales, totaling 3,765 thousand tons[2][4]. - Operating profit increased by 63.4% to $2,404 million, up from $1,471 million in the previous year[4][16]. - Profit attributable to the company's owners rose to $1,471 million, a 142.7% increase from $606 million in 2023[4][16]. - Basic earnings per share increased to 11.47 cents, compared to 4.72 cents in the previous year, reflecting a significant growth[4][16]. - Total revenue for the year ended December 31, 2024, was $25,941 million, a slight decrease of 1.1% compared to $26,236 million in 2023[82]. - Gross profit increased to $5,200 million, up 1.7% from $5,125 million in the previous year[82]. - Net profit for the year was $1,853 million, representing a significant increase of 115.1% from $860 million in 2023[84]. - Operating cash flow for the year was $2,519 million, an increase of 55.7% compared to $1,617 million in 2023[89]. Revenue Breakdown - In 2024, the company's revenue decreased by 1.1% to $25.941 billion, primarily due to a decline in meat products and pork sales, partially offset by price increases[17]. - Revenue from meat products was $13,655 million, up from $13,523 million in 2023, indicating an increase of about 1%[98]. - Revenue from pork decreased to $10,343 million from $10,810 million, reflecting a decline of approximately 4.3%[98]. - In China, total segment revenue was $9,359 million, with a segment profit of $943 million[103]. - North America generated total segment revenue of $17,065 million, with a segment profit of $1,187 million[103]. - Europe contributed total segment revenue of $4,508 million, with a segment profit of $274 million[103]. Operational Efficiency - The company's total assets return rate improved to 9.5% in 2024, up from 4.4% in 2023, indicating enhanced operational efficiency[29]. - The current ratio increased to 1.9 in 2024, reflecting improved liquidity compared to 1.6 in 2023[29]. - The company recorded an operating profit of $356 million in the pork segment, a turnaround from an operating loss of $480 million in 2023, primarily due to improved performance in North America[25]. - The company has significantly improved its pork business performance in the U.S., driven by favorable market conditions compared to 2023 and a series of operational reforms in pig farming[79]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.18 per share in addition to the interim and final dividends[4]. - The company plans to distribute a special cash dividend of HKD 0.18 per share, totaling approximately HKD 23.09 billion (about $2.97 billion) to shareholders[46]. - The board proposed a final dividend of HKD 0.40 per share for the year ending December 31, 2024, pending shareholder approval, resulting in a total dividend of HKD 0.50 per share for the year, compared to HKD 0.30 per share in 2023[135]. - The interim dividend of HKD 0.10 per share was paid on September 25, 2024, contributing to the total dividend amount[135]. Capital Expenditures and Investments - Capital expenditures for 2024 are projected at $707 million, a decrease of 12.5% from $812 million in 2023[50]. - The company completed the purchase of a high-end dry sausage production facility in Tennessee in July 2024, aimed at enhancing its value-added meat products business[59]. - The acquisition of Argal Alimentación, S.A. was completed in March 2024, with the company holding a 50.1% stake[61]. - The company established Murphy Family Farms LLC, expected to produce approximately 3.2 million pigs annually for its U.S. pork business[56]. Financial Position and Liquidity - As of December 31, 2024, the company had cash and bank balances of $2.055 billion, up from $1.156 billion in 2023[33]. - The company's net cash inflow from operating activities for 2024 was $2.519 billion, an increase from $1.617 billion in 2023, primarily due to significant profit growth[36]. - The total outstanding loans as of December 31, 2024, amounted to $3.330 billion, compared to $3.252 billion in 2023[41]. - The company's liquidity ratio as of December 31, 2024, was 1.9, an increase from 1.6 in 2023[33]. - The financial cost for 2024 decreased by 13.0% to $147 million, with an average interest rate on outstanding loans of 2.95%[48]. Sustainability and Corporate Responsibility - The company is committed to sustainable development, continuously monitoring greenhouse gas emissions across its operations and enhancing energy efficiency[72]. - The company has been recognized as a component of the Hang Seng Sustainable Development Index and received an A+ rating, reflecting its performance in sustainability[73]. Market Strategy and Future Outlook - The company aims to achieve substantial profit growth in 2024, with meat products being the core business and expected to deliver the best operational performance in history[79]. - The company will continue to implement the "two adjustments and one control" strategy, focusing on structural adjustments, price adjustments, and cost control to enhance competitiveness in the meat products sector[79]. - The company plans to adapt to geopolitical risks and macroeconomic changes by optimizing its supply chain and advancing diversification efforts[79]. - The company is focused on expanding its market network and enhancing its competitive advantages to ensure steady growth in its meat products business[79].

Financial Data and Key Metrics Changes - In 2024, WH Group reported a revenue of $25.941 billion, a decrease of 1.1% compared to the previous year [3] - Packaged meat sales volume was 3.1 million tonnes, down 3%, while pork sales volume was 3.765 million tonnes, down 4.9% [3] - EBITDA increased by 56.1% to $3.078 billion, and operating profit rose by 63% to $2.4 billion [4] - Profit before tax surged by 115% to $2.208 billion, with profit attributable to owners of the company reaching $1.471 billion, up 142% [4] - Basic earnings per share increased to $0.1147 [4] Business Segment Data and Key Metrics Changes - Packaged meat contributed 52.6% of total revenue, while pork contributed 40% of revenue and 14.8% of profit [4][5] - North America accounted for 50.3% of revenue and 49% of profit, while Europe contributed 14.5% of revenue and 11.4% of profit [6] - Operating profit from packaged meat was $1.174 billion, up 9.5%, with a margin of 14.1% [15] - The pork business saw an operating profit of $170 million, with a margin of 2% [15] Market Data and Key Metrics Changes - In China, the number of slaughtered hogs decreased by 3.3% to 703 million heads, with an average hog price of RMB 17.04 per kilo, up 10.6% [10] - In the U.S., the average hog price was $1.42 per kilo, up 4.5%, while in Europe, it was EUR 1.59 per kilo, down 7.9% [11] - Corn prices in the U.S. averaged $4.27 per bushel, down 23.3% [12] Company Strategy and Development Direction - WH Group aims to focus on core packaged meat business, improve fresh meat operations, and maintain appropriate hog production levels [16] - The company plans to reduce hog production from 14.7 million heads in 2024 to below 10 million heads in the future [17] - The strategy includes industrialization, diversification, internationalization, and digitalization to enhance competitiveness [19][30] Management Comments on Operating Environment and Future Outlook - The global economic recovery is slow and uneven, with inflation moderating and cost pressures alleviating [8] - Management expects challenges in demand but anticipates benefits from lower raw material costs in 2025 [21][22] - The outlook for the U.S. pork market is positive, with expectations of strong demand and favorable pricing dynamics [35][36] Other Important Information - The company reported strong operating cash flow of $2.519 billion, up 55.8%, and a low leverage ratio of 0.29 [7][8] - WH Group completed the acquisition of a Spanish packaged meat producer, Argo, to expand its high-end packaged meat business [19] Q&A Session Summary Question: How will WH Group maintain high profitability per metric ton in 2025? - Management indicated that while profitability per ton may decrease in 2025, it will remain relatively high due to low raw material costs and adjustments in product mix [21][22] Question: What measures will be taken to increase packaged meat volumes in 2025? - Eight measures were outlined, including reforming the sales team, enhancing market research, and increasing marketing investments [23][24][25][26][27] Question: Will there be changes in strategy after the Smithfield IPO? - Management confirmed that the strategy remains focused on strengths, with an emphasis on industrialization, diversification, and digitalization [30] Question: What is the outlook for the first quarter in China and the U.S.? - The outlook for China is stable with potential growth, while the U.S. market shows strength in hog prices and meat prices [38][41] Question: How will WH Group manage labor costs in the U.S.? - The company has not experienced significant impacts from labor costs and is focused on automation and becoming an employer of choice [70][72]

Group 1 - The core point of the article is that WH Group has announced the latest information regarding the proposed spin-off and independent listing of Smithfield Foods, which has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol "SFD" [1] - The offering of Smithfield is expected to commence when market conditions permit and is subject to the SEC declaring the registration statement effective [1] - As of the date of the announcement, the number and amount of Smithfield shares to be offered and sold in the offering have not yet been determined [1]

Company Overview - Current stock price of WH Group (0288 HK) is HKD 6 43 with a total market capitalization of HKD 82 5 billion [2] - The stock has a 52-week price range of HKD 6 50 to HKD 4 41 and an average daily trading volume of HKD 172 6 million over the past 3 months [2] Smithfield Spin-off and Valuation Potential - WH Group plans to spin off its US subsidiary Smithfield for an independent listing on a US exchange with an expected issuance of up to 20% of shares [4] - Post-listing WH Group will retain at least 80% ownership in Smithfield which will continue to be fully consolidated in WH Group's financials [4] - Smithfield's minimum valuation is expected to be no less than its net asset value of USD 5 38 billion as of September 30 [4] - WH Group shareholders will receive a dividend in kind equivalent to 0 35% to 0 45% of Smithfield's enlarged issued share capital [4] - Smithfield's revenue and net profit for 2022 2023 were USD 16 2 billion USD 14 6 billion and USD 724 million USD -70 million respectively [5] - For the first 9 months of 2024 Smithfield reported revenue and profit of USD 10 19 billion and USD 61 million respectively with a post-tax loss of USD 10 million [5] - Smithfield's minimum valuation implies a P E ratio of 8x compared to Tyson and Hormel's 14x P E [5] Financial Performance - WH Group's revenue for 2020 2021 2022 2023 and H1 2024 were USD 25 589 million USD 27 293 million USD 28 136 million USD 26 236 million and USD 12 293 million respectively [6] - Net profit attributable to shareholders for the same periods were USD 828 million USD 1 068 million USD 1 370 million USD 629 million and USD 784 million [6] - Net profit margins were 3 2% 3 9% 4 9% 2 4% and 6 4% respectively [6] - P E ratios were 13x 10x 8x 17x and 8x respectively [6] Industry and Market Context - US hog prices have shown a significant year-over-year recovery in 2024 [9] - Soybean meal prices in the first 10 months of 2024 decreased by 28% year-over-year [12] - Corn prices in the first 10 months of 2024 decreased by 16% year-over-year [12] Peer Comparison - WH Group's 2024E revenue and net profit are forecasted at USD 25 7 billion and USD 1 42 billion respectively with a P E of 7x [12] - Shuanghui Development's 2024E revenue and net profit are forecasted at USD 5 89 billion and USD 5 1 billion respectively with a P E of 15x [12] - Tyson Foods' 2024E revenue and net profit are forecasted at USD 53 6 billion and USD 1 22 billion respectively with a P E of 18x [12] - Hormel's 2024E revenue and net profit are forecasted at USD 12 2 billion and USD 930 million respectively with a P E of 18x [12]