Group 1 - The core viewpoint of the report is that the company, October Rice Field (09676), is rated as "Buy" due to its strong competitive advantages and potential for market share growth in the mid-to-high-end rice segment [1] - The report anticipates the company's EPS for 2025-2027 to be 0.57, 0.71, and 0.86 RMB respectively, with a target price of 15.49 HKD for 2025 based on a 25x PE ratio [1] Group 2 - The industry is experiencing slow growth but a clear trend towards upgrading, with stable demand for rice and kitchen foods despite little change in the domestic population [2] - The market for pre-packaged rice is highly fragmented, with a CR5 of only 14%, while October Rice Field holds the top market share in premium and Northeast rice [2] - The company has established strong competitive advantages, including significant single product advantages, active category expansion, and industry-leading omnichannel fulfillment capabilities [2] Group 3 - The company's revenue and adjusted net profit for 2024 are projected to be 5.745 billion and 349 million RMB, respectively, with CAGRs of 25.35% and 12.1% from 2020 to 2024 [3] - Revenue from rice, grains & beans, and other products for 2024 is expected to be 4.014 billion, 470 million, and 446 million RMB, with CAGRs of 21%, 6%, and 50% respectively [3] - Corn is expected to see explosive growth, reaching 815 million RMB, opening a second growth curve for the company [3] - The company has strong channel adjustment capabilities, leveraging both online and offline sales channels, with projected revenues of 3.599 billion and 2.147 billion RMB for online and offline sales in 2024, respectively [3]

Core Viewpoint - The article discusses the evolving consumer behavior in China, highlighting a shift towards offline retail innovation and the emergence of new market leaders in lower-tier cities, driven by changing consumer preferences and economic conditions [5][12][14]. Group 1: Consumer Trends - There is a noticeable decline in foot traffic in many shopping malls, indicating a potential shift in consumer spending habits [5][6]. - Consumer groups are becoming increasingly differentiated, with some malls experiencing high traffic while others remain empty, suggesting a need for innovation in retail environments [7][8][9]. - The consumption confidence in lower-tier cities remains strong, contrasting with the pressures faced in first and second-tier markets [12][13]. Group 2: Investment Insights - The founder of Qicheng Capital, Chang Bin, emphasizes the importance of understanding new retail models that cater to consumer needs, particularly in the context of offline shopping [14][15]. - Successful investments have been made in companies like Qian Dama and Guoquan, which have demonstrated significant growth by focusing on community-based retail and high-quality products [16][20]. - The rapid expansion of brands such as "Zero Snacks Busy" and "New Jia Yi" illustrates the potential for achieving billion-dollar revenues through innovative retail strategies [21][30]. Group 3: Market Opportunities - The article identifies the lower-tier market as a rising mainstream market in China, presenting numerous opportunities for new retail ventures [13][14]. - The success of community-focused retail models indicates a strong demand for convenient and quality food options, which can lead to the emergence of multiple category champions in the future [21][22]. - The ongoing transformation in consumer behavior and market dynamics suggests that there is still significant potential for growth in the offline retail sector [20][21].

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9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: 十月稻田集團股份有限公司 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09676 | 說明 | H股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,068,153,150 | RMB | | 0.1 RMB | | 106,815,315 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 1,068,153,150 | RMB | | 0.1 RMB | | 106,815,315 | 本月底法定/註冊股本總額： RMB 10 ...

Core Insights - The article highlights the recognition of October Rice Field (十月稻田) as the "Most Valuable Listed Company" at the 2025 Global Economic Forum, reflecting its strong brand value and competitive advantage in the family food sector [1] - The awards were based on six core dimensions: innovation, corporate governance, value creation, strategic foresight, growth potential, and social responsibility [1] Financial Performance - October Rice Field reported a strong performance in its mid-year financial results, achieving total revenue of 3.064 billion RMB, a year-on-year increase of 16.9% [2] - Adjusted net profit reached 294 million RMB, marking a significant year-on-year growth of 97.7% [2] - The core business of rice generated revenue of 2.066 billion RMB, up 21.0% year-on-year, while corn products contributed 433 million RMB, becoming the second-largest category [2] Product Innovation and Market Trends - The company is capitalizing on the growing trend of health-conscious eating, particularly with corn products, by launching various forms such as corn sticks and flavored corn snacks [3] - October Rice Field has developed a diversified product matrix in the snack food sector, responding to consumer demands for health, convenience, and taste [3] Sales and Distribution Strategy - The company has established a comprehensive sales network through deep integration of online and offline channels, with online revenue increasing by 3.4% to 1.837 billion RMB and offline supermarket revenue growing by 26.0% to 496 million RMB [3] - Collaborations with major e-commerce platforms and expansion into high-potential retail channels are part of the strategy to capture market opportunities [3] Brand Positioning and Marketing - October Rice Field is focusing on brand youthfulness to engage the Z and Alpha generations, implementing integrated marketing strategies that resonate with younger consumers [4] - The company has enhanced its brand positioning and communication, acting as a bridge between agriculture and industry, and between rural and urban markets [4] - The sustainable growth logic of the company's business model is expected to enhance its pricing power and profitability stability, further boosting its brand value [4]

Financial Performance - For the first half of 2025, the company's revenue reached RMB 3,063,455,000, a year-on-year increase of 16.9% compared to RMB 2,620,565,000 in 2024[20] - Gross profit for the same period was RMB 666,871,000, up 50.2% from RMB 444,284,000 in the previous year[20] - Adjusted net profit was RMB 294,318,000, significantly higher than RMB 148,870,000 in the first half of 2024, reflecting a growth of 97.5%[20] - Total revenue for the six months ended June 30, 2025, was RMB3,063.5 million, up from RMB2,620.6 million in the same period last year[59] - Gross profit amounted to RMB666.9 million, up RMB222.6 million from RMB444.3 million in the first half of last year, with a gross profit margin increase from 17.0% to 21.8%[86] - Adjusted net profit (non-IFRS measure) increased by 97.7% from RMB148.9 million in the first half of last year to RMB294.3 million during the Reporting Period[117] - Adjusted net profit margin (non-IFRS measure) rose from 5.7% to 9.6%, attributed to product portfolio adjustments and increased contributions from mid-to-high-end products[117] Assets and Liabilities - As of June 30, 2025, total assets amounted to RMB 4,237,555,000, down from RMB 4,613,818,000 at the end of 2024, indicating a decrease of 8.1%[23] - Current liabilities decreased to RMB 680,249,000 from RMB 980,303,000, a reduction of 30.6%[23] - The net current assets increased to RMB 1,765,860,000, compared to RMB 1,702,555,000 at the end of 2024, showing an increase of 3.7%[23] - Inventories decreased by 21.3% from RMB1,360.2 million as of December 31, 2024, to RMB1,070.7 million as of June 30, 2025[118] - Trade receivables decreased by 4.0% from RMB377.4 million as of December 31, 2024, to RMB362.2 million as of June 30, 2025[120] - Cash on hand and at bank increased by 10.3% from RMB713.0 million as of December 31, 2024, to RMB786.7 million as of June 30, 2025[130] - Trade payables increased by 4.6% from RMB152.7 million as of December 31, 2024, to RMB159.8 million as of June 30, 2025[127] - Other payables surged by 173.0% from RMB100.5 million as of December 31, 2024, to RMB274.5 million as of June 30, 2025, mainly due to increased dividends payable[128] - Contract liabilities decreased by 62.1% from RMB40.6 million as of December 31, 2024, to RMB15.4 million as of June 30, 2025[129] - Bank loans decreased by 69.0% from RMB 645.5 million as of December 31, 2024, to RMB 200.1 million as of June 30, 2025, mainly due to the repayment of borrowings[136] - The gearing ratio improved to 17.5% as of June 30, 2025, down from 23.0% as of December 31, 2024, reflecting a decrease in total liabilities[137] Revenue by Product Category - Revenue from rice products increased by 21.0% from RMB1,707.2 million to RMB2,066.5 million, contributing an additional RMB359.3 million[61] - Revenue from corn products decreased by 15.8% from RMB514.2 million to RMB433.1 million, primarily due to adjustments in marketing strategies[61] - Revenue from whole grain, bean, and other products increased by 29.3% from RMB212.1 million to RMB274.3 million, driven by new product development[61] - Revenue from dried food and other products surged by 54.8% from RMB187.1 million to RMB289.6 million, attributed to increased sales volume and prices of by-products[61] Market Trends and Strategies - The company is focusing on health-oriented consumption trends, particularly in the food industry, which is shifting towards nutritionally balanced and convenient products[27] - The focus on pre-packaged products is driven by consumer demand for convenience and quality, leading to higher growth rates in the pre-packaged product market[33] - The trend towards health-conscious consumption is driving growth in whole grain and corn products, with consumers increasingly preferring low-fat and nutritious options[31] - Future strategies include expanding into new channels and businesses while maintaining a focus on high-quality origins for procurement and production[37] - The Group aims to enhance its omni-channel ecosystem and strengthen channel management capabilities to meet diversified consumer needs[35] Digitalization and Operational Efficiency - The Group plans to promote digitalization and system development to improve operational efficiency and resource allocation[35] - The company has implemented a supply chain management system to optimize resource integration and enhance operational efficiency[84] - Over twenty automated production lines have been put into operation to enhance production efficiency as of June 30, 2025[78] Shareholding and Corporate Governance - As of June 30, 2025, Mr. Wang Bing holds 143,698,000 H Shares, representing approximately 34.07% of the H Shares and 13.45% of the total issued share capital[168] - The total number of issued shares as of June 30, 2025, is 1,068,153,150 shares, including 421,819,430 H Shares and 646,333,720 Unlisted Shares[170] - The company has established an Audit Committee in compliance with the Listing Rules and Corporate Governance Code[190] - The company has complied with relevant laws and regulations during the reporting period, with no material non-compliance issues reported[182] Use of Proceeds from Global Offering - The net proceeds from the global offering of H Shares listed on 12 October 2023 amounted to approximately HK$716.4 million after deducting underwriting commissions and related expenses[186] - 35% of the net proceeds, approximately HK$250.74 million, is allocated to enhancing cooperation with suppliers and strengthening procurement capability, with HK$90.14 million unutilized as of 30 June 2025[187] - 30% of the net proceeds, approximately HK$214.92 million, is designated for expanding production capacity and upgrading existing production lines, with HK$81.37 million unutilized as of 30 June 2025[187] - 10% of the net proceeds, approximately HK$71.64 million, is intended for expanding channel coverage and establishing a sales ecosystem, with HK$25.79 million unutilized as of 30 June 2025[187] - The total unutilized net proceeds as of 30 June 2025 is approximately HK$281.17 million[187] Human Resources Management - The company is committed to enhancing its human resources management system to maximize the potential and effectiveness of its talents[200] - The company is focused on the effective management of human resources as a core competitiveness strategy[200]

Core Insights - The 2025 "Good Food List" announced by Zhitong Finance recognizes outstanding food brands that adhere to quality, innovation, and industry trends, with October Rice Field being awarded "Annual Corn Brand" for its healthy and tasty corn products [1][2] Industry Overview - Driven by sustained consumer vitality, China's food ingredient market is projected to reach 10.56 trillion yuan in 2024, marking a 12.7% year-on-year growth, indicating a new development phase for the food industry [2] - There is a growing awareness of healthy eating, shifting consumer focus from "eating enough" to "eating well" and "eating healthily," leading to a rapid development of whole grain foods, with corn being favored for its natural health properties [2] Company Performance - October Rice Field's corn category revenue reached 433 million yuan, becoming the second-largest core category, supported by its recognition as the leading corn brand in China for two consecutive years by Frost & Sullivan [2][7] - The company has established three corn industry bases in Liaoning, Heilongjiang, and Guangxi, ensuring a stable supply of high-quality corn products through a comprehensive supply chain [7] Product Innovation - October Rice Field has successfully diversified its corn product offerings, including instant corn segments and fruit corn kernels, expanding into the snack food and single-serving market [9] - The company has effectively engaged with younger consumers by promoting corn as a new social symbol, capitalizing on trends like "weight management" due to corn's dietary fiber and low-calorie content [10] Marketing Strategies - During the 2025 new corn launch, October Rice Field targeted high-potential offline scenarios and collaborated with the game "Cat and Soup," reaching 70 million young players with four co-branded products [11] - The brand has utilized content marketing, e-commerce visual upgrades, and live interactions to create an immersive experience for young consumers, reinforcing its image as a "corn expert" and enhancing its industry influence [13]

Core Viewpoint - The article emphasizes the importance of learning from Japan's "lost thirty years" to identify opportunities in China's evolving consumer market, focusing on the emergence of new national brands and efficient retail models [7][9][28]. Group 1: Insights from Japan - Japan experienced stagnant wages and severe aging during its lost decades, yet it produced successful consumer champions like Uniqlo and 7-Eleven, highlighting the potential for growth even in challenging economic conditions [8][9]. - Two key insights from Japan include the continuous upgrade of essential needs and the rise of affordable alternatives, which shifted consumer focus from luxury to value [10][11][12]. Group 2: Chinese Market Opportunities - The article identifies the "downstream market" as a crucial area for growth in the next two to three decades, emphasizing the need to discover new national brands and chain stores [14][28]. - The author reflects on the early days of JD.com, noting its growth from 1 billion in revenue to becoming China's first trillion-yuan retail enterprise, illustrating the potential for rapid scaling in the consumer sector [15][18]. Group 3: Investment Focus - The company,启承资本, has invested in over 20 consumer brands since its inception in 2016, with 15 companies achieving over 1 billion in revenue and 3 projected to exceed 10 billion this year [24][25]. - The firm aims to support the next generation of consumer champions, focusing on sectors like food, beverages, and lifestyle, with a significant number of community and shopping center stores [24][25]. Group 4: Structural Opportunities - The article outlines two structural opportunities in the Chinese consumer market: the emergence of new national brands and the development of nationwide chains [28]. -启承资本's investment strategy is designed to leverage these opportunities, with a focus on creating long-term value through innovative business models and efficient operations [29][30]. Group 5: Educational Initiatives -启承资本 is launching a program aimed at helping consumer brands overcome growth challenges and achieve significant scale, featuring case studies and strategic insights from successful investments [29][30][32]. - The program will cover topics such as product innovation, competitive strategy, and long-term value creation, tailored for emerging consumer brands and regional chains [50][51].

Core Viewpoint - The upcoming Chinese Farmers' Harvest Festival highlights the role of companies like October Rice Field in supporting farmers' income and contributing to rural revitalization through integrated supply chain capabilities and innovative agricultural practices [1][2]. Group 1: Company Initiatives - October Rice Field has developed a full-chain integration capability to ensure stable supply of quality products, establishing six modern industrial bases in key grain-producing areas such as Shenyang and Wuchang [1]. - The company promotes order-based agriculture to increase farmers' income and has facilitated the creation of over 800 jobs through the "New Min Rice Express+" project, which generated over 200 million yuan in local rice production value in 2022 [2]. Group 2: Economic and Social Impact - October Rice Field has achieved a balance between social value and economic benefits by driving farmers' income through order agriculture and providing agricultural technology guidance, resulting in an average annual income increase of over 100,000 yuan per family for farmers transitioning to industrial workers [2]. - From 2020 to 2024, the company has procured over 14 billion yuan in raw grain, with over 80% of employees at its Xinchang factory being local farmers [2]. Group 3: Product Innovation - The company has restructured its product value chain by innovating in product categories, such as transforming corn into various health-oriented snack products, which has led to corn category revenue reaching 433 million yuan, making it the company's second-largest core category [3].

Group 1 - The resignation of Zou Hao became effective on September 5, due to personal career development reasons, and he will no longer hold any position in the company to focus on other business activities [2] - Executive Director Wang Bing has been appointed as the authorized representative following Zou Hao's resignation [2] - October Rice Field confirmed that Zou Hao has no disagreements with the board and there are no other matters related to his resignation that need to be brought to the attention of shareholders and the stock exchange [2]

Core Viewpoint - The Hong Kong Stock Connect index has undergone a regular adjustment, with 20 stocks added and 20 removed, including the family food innovation brand October Rice Field, which was removed due to liquidity concerns and not meeting market capitalization requirements for the Hang Seng Index [1][2]. Company Overview - October Rice Field, established in 2011, primarily produces and sells pre-packaged high-quality rice, corn, grains, beans, and dried goods, with brands including October Rice Field, Chaihuo Dayuan, and Fuxiang Renjia [2][4]. - The company has recently upgraded its brand positioning to "family food innovation brand," indicating a strategic shift and a restructured brand value [6][10]. Financial Performance - For the first half of 2025, October Rice Field reported revenue of RMB 3,063.5 million, a year-on-year increase of 16.9%, and an adjusted net profit of RMB 294.3 million, a significant increase of 97.7% [3][4]. - The revenue from rice products was RMB 2,066 million, up 21.0%, while corn products generated RMB 433 million, becoming the second core category [4]. Product and Market Strategy - The company has diversified its product offerings beyond rice to include corn, grains, and various family food items, creating a multi-category matrix [4][6]. - October Rice Field has been actively innovating products to meet consumer demands, such as introducing healthy snack options and expanding into instant retail [6][8]. Distribution and Supply Chain - The company has established a comprehensive distribution network, collaborating with over 40 major e-commerce platforms and nearly 100 supermarkets, while also focusing on instant retail to capture market opportunities [8][10]. - October Rice Field has developed a robust supply chain that integrates procurement, storage, production, sales, and logistics, ensuring the stable output of quality products [8][10]. Industry Position - October Rice Field has served 140 million Chinese households and has led the sales of Northeast rice and corn products in China for six consecutive years [10]. - The company aims to leverage new health-focused policies and its established market presence to enhance its brand value and drive high-quality growth [10].