Group 1: Company Overview - The company is New Hope Liuhe Co., Ltd., with stock code 000876 [1] - The company has established an integrated poultry industry chain, including feed production, breeding, farming, technical services, food processing, and terminal sales [3][4] Group 2: Poultry Industry Impact - The poultry industry has been significantly affected by the H7N9 avian flu outbreak, leading to a decline in performance compared to the previous year [3] - From June 2017, poultry prices began to recover, but were still insufficient to reverse the downturn experienced in the first half of the year [3] Group 3: Pig Farming Models - The company employs four pig farming models: 1. New Good Model (Xiajin Model) - breeding and high-efficiency parent stock production [4] 2. New Six Model - contract farming with family farms using quality piglets from New Hope Liuhe [4] 3. New Road Model - management services for medium-sized independent pig farms [4] 4. Fuda Pig Model - technical services for existing small pig farms to enhance user engagement [4] Group 4: Growth Projections - In 2016, the company’s total pig output exceeded 1.1 million heads, with a target of 2-2.5 million heads in 2017 and 5-6 million heads by 2018 [5] - By 2020, the expected pig output is projected to reach 10 million heads [5] Group 5: Regional Layout and Cost Control - The main pig farming regions include the Bohai Rim, Guangdong, East China, and Southwest regions, with a total production capacity of 9 million heads [6] - The average cost of live pigs is approximately 12 RMB per kilogram, with an expected average price of 14 RMB in 2017 [6] Group 6: Meat Processing Business - The company’s meat processing business has shown growth in both sales and profits in the first half of 2017, despite lower overall pork prices compared to the previous year [6] Group 7: Food Business Development - The food business is a long-term transformation direction for the company, focusing on optimizing product and channel structures [7][8] - The company has invested in food safety and has been recognized in both domestic and international markets [7] Group 8: Future Investments - The company plans to continue investing in quality food and restaurant enterprises to facilitate its transformation into a food company [8] - The company anticipates a significant upgrade from frozen to fresh products within the next 3-5 years, driven by advancements in cold chain logistics [8]

Group 1: Company Overview - The Xiajin Pig Farm project began in 2012, covering an area of 2,890 acres, with the first phase starting production in June 2014, which included a 300 boar station and a 2,500 grandparent stock farm [3] - The second phase started in 2015, adding two more 5,000-head parent stock farms, currently achieving a breeding scale of 17,500 sows and an annual output of 420,000 pigs [3] Group 2: Production Models - The company operates two models: the "New Good" model relies on self-bred piglets, while the "New Six" model sources piglets from external suppliers due to initial production capacity constraints [4] - The output ratio between the "New Good" and "New Six" models is approximately 3:2, with plans to build self-breeding farms under the "New Six" model in the long term [4] Group 3: Performance Metrics - The average PSY (Pigs per Sow per Year) for the company was 26.8, while the Xiajin Pig Farm achieved over 30, attributed to superior breed quality, environment, and breeding technology [5] - The feed-to-meat ratio improved from 2.4 in January to 2.3 by June, indicating a competitive edge in the industry [6] Group 4: Cost Efficiency - The cost per kilogram of pork at Xiajin Pig Farm was 11.9 RMB, which includes costs from new, unproductive capacity and feed profit assessments [6] - The company’s workforce is highly educated, with 70% under 30 years old and 70% holding at least a college degree, leading to significant labor cost savings and efficiency improvements [8] Group 5: Collaboration with Farmers - The company collaborates with farmers by providing feed, technical support, and management, with each farmer earning around 200 RMB per pig, which is more profitable than previous arrangements [9] - There are no credit issues in farmer collaborations, as farmers must have proper facilities and pay a deposit of 200 RMB per pig [10] Group 6: Future Strategies - The company plans to balance self-breeding and external sourcing based on market conditions, having established a capacity of 9 million pigs nationwide in the previous year [11] - Supply chain financial considerations are being explored at various levels, including factoring companies and other financial services [12]