Summary of Key Points from the Conference Call Industry Overview - The food and beverage industry is experiencing systemic opportunities driven by policies aimed at expanding domestic demand and increasing residents' income levels, which are expected to enhance consumption capabilities [1][2] - The liquor industry is undergoing a deep adjustment, with expectations of entering an EPS killing phase by 2025, while high-end liquor brands like Moutai and Lao Jiao are recommended for investment [1][4] - The dairy industry has completed supply-demand adjustments, with anticipated increases in demand for milk powder and liquid milk due to fertility and income policies, highlighting companies like Yili and New Dairy as potential recovery opportunities [1][5] - The snack food sector is benefiting from the "lipstick effect," new channels, and health trends, with recommendations for companies such as Salted Fish, Wei Long, Wan Chen Food, and Qiaqia Food [1][6] - The beverage sector is seeing a clear trend towards health, with non-traditional channels gaining market share, making high-growth companies like Dongpeng Beverage noteworthy [1][7] Key Insights and Arguments - The central economic work conference in 2026 will prioritize expanding domestic demand, which is expected to lead to a series of policies stimulating consumption, positively impacting the food and beverage industry [2] - The food and beverage sector has faced significant changes in volume, price, and channel structure over the past six years, with varying performances across sub-sectors [3] - The liquor sector is expected to see marginal improvements in 2026, driven by policies aimed at boosting business and government consumption [4] - The dairy sector is projected to enter a recovery phase, with increased demand anticipated due to supportive policies [5] - The snack food market is expected to gradually recover, supported by rising incomes and new retail channels [6] Additional Important Content - Cost fluctuations are a significant factor affecting the performance of consumer goods companies, with some agricultural product costs declining, providing investment opportunities [9] - The planting area for sunflower seeds is expected to recover, leading to a projected 10% decrease in the cost of sunflower seeds, which will positively impact Qiaqia Food's gross margin [10][11] - The konjac market is facing supply-demand imbalances, with high prices expected to ease in 2026, alleviating cost pressures for companies like Wei Long and Salted Fish [12] - The sugar molasses market is currently at low prices, providing strong support for Angel Yeast's profitability [13] - Innovative companies are leveraging product and channel innovations to drive growth, with notable examples including Nongfu Spring and Uni-President [14] - Efficient supply chain management is crucial for companies, with Dongpeng Beverage demonstrating strong performance in this area [15] Future Outlook - Dongpeng Beverage is expected to achieve double-digit growth in 2026 through strategic measures and product innovations [16] - Wan Chen is enhancing store quality and accelerating store openings, which is expected to improve profitability in the snack food sector [17][18] - Hai Tian Flavoring has implemented efficiency improvements under new management, resulting in revenue and profit growth exceeding industry averages [19] - The restaurant industry is expected to see a mild recovery, with companies like Yihai International and Tianhe Flavoring showing potential for improvement [20][21] - In the liquor sector, companies like Yanghe and Budweiser are expected to benefit from product and channel improvements, leading to potential breakthroughs in performance [22][23][25] - Gan Yuan Food is focusing on expanding e-commerce and high-end membership stores, with a stable development outlook [26][27] - Overall, companies in the food and beverage sector are expected to experience gradual recovery and growth, making them worthy of investor attention [28]

Group 1 - The top three stocks with the highest short-selling ratios are New World Development Co. Ltd. (100.00%), China Resources Beer (100.00%), and AIA Group Ltd. (100.00%) [1][2] - The stocks with the highest short-selling amounts are Xiaomi Corporation (2.196 billion), Ping An Insurance (1.956 billion), and Alibaba Group (1.160 billion) [1][3] - The stocks with the highest deviation values are Bank of China (52.21%), China Mobile (41.86%), and Café de Coral Holdings (40.03%) [1][2] Group 2 - The top ten short-selling ratio rankings include New World Development Co. Ltd. (100.00%), China Resources Beer (100.00%), and AIA Group Ltd. (100.00%) [2] - The top ten short-selling amounts include Xiaomi Corporation (2.196 billion), Ping An Insurance (1.956 billion), and Alibaba Group (1.160 billion) [3] - The top ten deviation values include Bank of China (52.21%), China Mobile (41.86%), and Café de Coral Holdings (40.03%) [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年11月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 頤海國際控股有限公司 呈交日期: 2025年12月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01579 | 說明 | 不適用 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.00001 USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 5,000,000,000 | USD | | 0.00001 USD | | 50,000 | 本月底法定/註冊股本總額： USD 50 ...

Core Points - The fire at Hong Kong's Tai Po Wang Fuk Court has prompted significant support from various enterprises and social organizations [1] - Three companies, Lao Pu Gold, Luckin Coffee, and Haidilao, have collectively donated approximately 23 million HKD to aid disaster relief efforts [1] Company Contributions - Haidilao has activated its emergency disaster relief mechanism, sending over 1,200 boxes of instant food supplies to designated aid points and donating 4 million HKD for local medical assistance and living supplies [1] - Luckin Coffee announced an emergency donation of 10 million HKD for urgent rescue, humanitarian aid, and post-disaster recovery efforts [1] - Lao Pu Gold pledged 10 million HKD to support the fire rescue efforts in Tai Po, assisting affected residents [1]

Group 1 - The core point of the article is that Haidilao has initiated an emergency disaster relief mechanism in response to a fire incident in Hong Kong's Tai Po district, providing significant support to affected residents [1] - Haidilao is transporting over 1,200 boxes of instant food supplies to designated aid points for disaster relief [1] - The company, along with Yihai International, is donating 4 million RMB for local medical assistance, supply of living materials, and transitional housing for those affected by the disaster [1] - Haidilao has committed to continuously monitor the progress of the disaster relief efforts and collaborate with various sectors of society to assist the affected population [1]

Core Viewpoint - Haidilao has activated its emergency disaster relief mechanism in response to a fire incident in Hong Kong, demonstrating its commitment to social responsibility and community support [1] Group 1 - Haidilao is transporting over 1,200 boxes of instant food supplies to designated aid reception points [1] - The company, along with Yihai International, will donate 4 million yuan for local medical assistance, supply of living materials, and transitional housing related to the rescue efforts [1]

Core Viewpoint - The fire disaster in Hong Kong's Tai Po district has resulted in significant casualties and property damage, prompting a swift response from various companies to provide aid and support for recovery efforts [1]. Company Responses - China Resources Beverage activated its emergency response mechanism, delivering 10,080 bottles of water within two hours to ensure basic drinking water safety for affected residents [1]. - China Resources Vanguard coordinated with local welfare agencies to provide over 5,000 essential supplies, including milk and instant noodles, to support disaster relief efforts [1]. - China Resources Charity Fund donated HKD 20 million for emergency rescue, medical assistance, and emotional support for victims [1]. - Wens Foodstuff Group pledged HKD 40 million in cash and supplies to assist local residents with recovery and rebuilding efforts [1]. - Nongfu Spring delivered drinking water and beverages to shelters and donated HKD 10 million in cash and HKD 5 million in supplies for emergency relief and recovery [5]. - Haitian Flavoring & Food Company donated HKD 10 million for medical aid, emergency housing, and rebuilding efforts [7]. - Heytea contributed HKD 5 million to support disaster relief and subsequent recovery efforts for affected residents [11]. - Cha Baidao initiated a donation of HKD 5 million for medical assistance and rebuilding efforts for the affected population [13]. - Yum China, through its brands, donated RMB 3 million to aid Hong Kong's Tai Po fire relief efforts [15]. - Green Tea Group donated HKD 1 million for emergency assistance to affected residents and will continue to monitor the situation [18]. - Haidilao initiated an emergency response, sending over 1,200 boxes of instant food and donating RMB 4 million for medical aid and essential supplies [22].

Investment Rating - The report provides various investment ratings for companies in the consumer staples sector, with "Outperform" ratings for several companies including China Feihe, Haidilao, and China Resources Beer, while Budweiser APAC is rated as "Neutral" [1]. Core Insights - The report highlights significant price increases in vegetables and corrugated paper, with the spot cost index for vegetables rising by 7.08% month-on-month and 16.16% year-on-year, while corrugated paper prices increased by 8.81% month-on-month and 17.49% year-on-year [6][24][27]. - Most spot cost indices for monitored consumer goods have risen, while futures cost indices have generally declined, indicating a mixed outlook for the sector [31]. Summary by Category Beer - The spot cost index for beer decreased by 2.25% month-on-month, with a cumulative decline of 3.04% since the beginning of the year [12][32]. - The futures index also fell by 2.62% month-on-month, reflecting ongoing supply-demand imbalances [12][32]. Condiments - The spot cost index for condiments decreased by 0.95% month-on-month, with a cumulative decline of 3.50% since the start of the year [15][33]. - Soybean prices have shown an increase, with spot prices rising by 1.38% month-on-month [15][33]. Dairy Products - The spot cost index for dairy products increased by 0.74% month-on-month, while the futures index decreased by 1.07% [18][34]. - Fresh milk prices have declined to 3.03 yuan/kg, a year-on-year decrease of 3.2% [18][34]. Instant Noodles - The spot cost index for instant noodles increased by 0.64% month-on-month, while the futures index decreased by 1.47% [21][35]. - Palm oil prices have decreased significantly, impacting production costs [21][35]. Frozen Foods - The spot cost index for frozen foods increased by 0.37% month-on-month, while the futures index rose by 0.52% [24][36]. - Vegetable prices have surged due to adverse weather conditions, contributing to rising costs [24][36]. Soft Drinks - The spot cost index for soft drinks increased by 2.50% month-on-month, while the futures index decreased by 1.70% [27][37]. - The price of PET chips has declined, affecting overall production costs [27][37].

Summary of the Conference Call for Yihai International Company Overview - **Company**: Yihai International - **Industry**: Food and Seasoning Industry Key Points and Arguments Revenue and Growth Expectations - The company anticipates a slowdown in third-party revenue growth for the year, with overall revenue expected to remain flat or slightly increase due to the performance of related parties like Haidilao [2][22] - Profit growth is expected to outpace revenue growth, benefiting from a return to normal tax rates [2][22] Product Performance - Butter remains the largest single product, with a 20% sales increase in the first half of the year due to low-priced product launches, although this affected average price and gross margin [2][7] - The company plans to adjust its strategy in the second half, promoting low-priced butter only in price-sensitive areas, expecting gross margin to remain flat or slightly increase for the year [2][7] - The overseas third-party business grew nearly 50% in the first half, reaching 190 million yuan, but is expected to slow to a growth rate of 20%-30% for the year [2][24] Competitive Landscape - The convenience food business faces intense competition, with only slight growth in third-party channels in the first half and a decline expected in the second half [2][11][12] - The company aims to maintain stable development in this segment, making it difficult to expand further [2][13] B2B and B2C Market Insights - In the B2B market, large clients saw a doubling in growth in the first half, but growth may slow in the second half due to the impact of the pre-made dish incident [2][5][21] - A dedicated team for small B clients has been established, but contributions are expected to be low this year, with significant growth anticipated next year [2][21] New Product Launches - New regional flavor products were launched in 2025, receiving good local acceptance but limited national impact compared to established flavors [2][6] Cost and Margin Management - The company has locked in raw material prices, minimizing cost impacts, and expects gross margins to remain flat or slightly increase due to the "Two Direct" system optimizing channel margins [2][14] - The "Two Direct" system aims to improve profit margins by reducing intermediary costs and is expected to cover 60% of the market by next year [2][16][17] Online Business and Marketing Strategy - The company has shifted its online strategy to focus on display and interaction rather than as a primary sales channel, leading to reduced advertising expenses [2][19] International Expansion - The company is expanding its overseas business, particularly in Southeast Asia, and plans to explore markets in the Middle East, Central America, and Africa [2][26] - Direct engagement with large KA channels in Southeast Asia has been established, with expectations of maintaining stable growth rates of 20-30% over the next 2-3 years [2][27] Challenges and Risks - The company faces competition from domestic peers in the overseas market and local brands in Southeast Asia, which may impact growth [2][28] - The utilization rate of the Thai factory is currently low, with plans to improve it by the end of the year [2][29] Future Outlook - The company expects revenue growth to be driven by overseas and B2B segments, with a forecast of double-digit growth in third-party business next year [2][25] Additional Important Information - The gross margin for related party business remains around 14%, with stable pricing mechanisms in place [2][23] - The company is cautious about potential impacts from shipping costs and tariffs as it expands its international operations [2][31][32]

Investment Rating - The investment rating for Yihai International is Neutral, reflecting a weaker earnings outlook primarily driven by third-party sales and price competition [4][15]. Core Insights - Sales momentum for third-party business is expected to slow in the second half of 2025, impacted by negative publicity and competition in the convenience food segment [1][2]. - The company is shifting from a distributor-based model to direct sales with key accounts (KAs) to improve gross profit margin (GPM) and accelerate new product launches [3][10]. - Management anticipates a recovery in to-B sales growth in 2026, driven by overseas expansion and stabilization in domestic sales [2][10]. Financial Performance - Expected share price return is 11.4%, with a target price of HK$14.40 and a dividend yield of 5.8%, leading to a total expected return of 17.2% [4][15]. - The company reported a net profit of Rmb 826 million in 2023, with a projected decline to Rmb 726 million in 2025E, followed by a slight recovery to Rmb 765 million in 2026E [6][9]. - Gross profit margin for to-B is projected at 20-30%, while to-C is nearly 40%, with overall operating profit margins expected to remain stable [13][12]. Market Dynamics - The convenience food segment is currently facing a decline due to intense competition and product retirements, while the to-C business shows stable growth [2][10]. - Overseas business is expected to grow significantly, with management forecasting a 20-30% growth rate annually until at least 2027 [10][12]. - The company is experiencing a shift in sales mix, which may negatively impact third-party GPM due to price competition [15][11].