Summary of Conference Call Notes Industry Overview - The baking industry is experiencing a shift in consumer channels, with traditional baking shops decreasing from 410,000 in 2021 to 340,000 currently, representing a nearly 9% decline since 2014 [1] - Supermarkets are increasing their focus on baking and ready-to-eat sections, with Yonghui's baking and ready-to-eat ratio rising from 5% to 20% after adjustments [1] Company Performance - In 2024, the company's supermarket channel achieved revenue of 1 billion, with approximately 90% contributed by Sam's Club, making it a crucial channel for the company's frozen baking business [2] - Due to adjustments in Sam's baking business, some products were delisted and relaunched, impacting revenue growth. However, new products like corn mochi bread received positive market feedback, leading to a recovery with over 40% year-on-year growth in Q1 2025 [2] Product and Market Dynamics - The company's cream products have seen significant growth, with revenue reaching 1.06 billion in 2024, a year-on-year increase of over 60%. This growth is attributed to the price advantage of domestic cream over imported options [3][4] - The company has optimized its product offerings by reducing SKUs from over 1,000 to around 700, focusing resources on star and cash cow products to minimize losses from underperforming items [5] Operational Efficiency - The company has maintained stable gross margins despite rising costs in the baking industry, indicating effective supply chain reforms [6] - The introduction of advanced technology and optimized raw materials has improved product stability and performance, with prices being 20% lower than imported brands [4] Strategic Initiatives - The company is enhancing its internal operations, including procurement and team structure, to ensure long-term sustainability and efficiency improvements [8] - A shift in sales commission structure has been implemented to encourage sales personnel to promote new and mid-tier products, rather than focusing solely on top-selling items [7] Future Outlook - The company anticipates that ongoing internal reforms, increased capacity utilization, and improved demand could lead to significant performance enhancements and valuation increases in the future [8]

Summary of Conference Call Company and Industry - The conference call involves **Guangfa Video** and discusses the performance and strategies of **Li Gao**, a company in the food and beverage industry, particularly focusing on bakery products. Key Points and Arguments Sales Performance - Li Gao has shown **significantly improved performance** since the beginning of the year, with both revenue and profit increasing substantially, leading to positive market feedback [1] - Three new products launched in the supermarket channel have met sales expectations as of April, with stable sales for the **Fig Cream Cheese Bread** and strong sales during the Spring Festival for the **Creamy Small Square** [2][3] Product Strategy - The company is actively upgrading existing products and introducing new ones to maintain consumer interest, with a focus on **core supermarket clients** [4][5] - The company plans to launch an upgraded version of an existing product in the near future, indicating a proactive approach to product management [3] Channel Development - The company is adapting to changes in the supermarket channel, establishing deeper collaborations with major chains and moving from scattered partnerships to a more systematic approach [5] - There is a focus on expanding into new channels, including the restaurant sector, with expectations of increased collaboration with new clients [8][9] Cost Management and Profitability - The company has seen a **significant improvement in profit margins** due to changes in supply chain and sales strategies, although no specific profit margin targets have been set [10][11] - The logistics and transportation costs are being managed through third-party logistics to reduce expenses, indicating a strategic shift in logistics management [12][13] New Product Launches - The company plans to launch new cream products in the second half of the year, which are expected to positively impact overall revenue and profit [14][15] - The introduction of new products is anticipated to enhance the gross margin of the cream category, contributing positively to the company's financial performance [15] Raw Material Costs - Raw material costs have been a significant factor affecting gross margins, with a noted impact of approximately **2%** on margins due to high costs in the first quarter [16][17] - The company expects a more stable cost environment moving forward, with potential for further alleviation of cost pressures [17] Capacity Utilization - The current capacity utilization rate is reported to be in the **70% range**, with plans for new production lines to meet future demand [21][22] - The company is also relocating some production capacities to a new headquarters, which will facilitate future growth [22] Market Trends - The company is observing market dynamics and testing new channels, with initial positive results from sample stores, although overall volume remains relatively small compared to historical data [23][24] Other Important Content - The company emphasizes the importance of continuous product innovation and adaptation to market trends to sustain growth and profitability [19] - There is a clear focus on enhancing operational efficiency and cost-effectiveness across all business areas [10][11]

Group 1: Core Views - The report suggests that the food and beverage industry is expected to see a valuation recovery as market sentiment improves, with a focus on low-priced leading companies in the liquor sector and structural opportunities in the food sector [2][7][10]. Group 2: Liquor Sector - The liquor sector is experiencing a phase of demand decline due to seasonal factors and regulatory impacts, leading to pressure on high-end liquor prices, while mass consumption remains stable [7][13]. - Major companies like Moutai are expected to maintain their performance due to strong brand positioning, while others are entering an adjustment phase, with varying adjustment speeds among companies [7][14]. - Q2 performance forecasts for major liquor companies indicate a range of revenue and profit changes, with Moutai expected to see a 9% increase in both revenue and profit [14][15][16]. Group 3: Food Sector - The food sector shows signs of recovery, with segments like beverages, snacks, and pet food experiencing upward trends, while beer and restaurant supply chains face structural challenges [21][24]. - The beverage industry remains vibrant with new product launches and a clear trend towards reduced sugar options, while competition intensifies [24][30]. - Dairy products are seeing mixed performance, with some segments like low-temperature dairy and cheese growing, while others face challenges [24][33]. Group 4: Investment Recommendations - The report recommends focusing on leading liquor companies with a safety margin for investment, as well as food companies that are expected to exceed mid-year performance expectations [10][28]. - Specific companies highlighted for potential investment include Nongfu Spring, Uni-President China, and Tianwei Foods, among others [10][28].

Core Viewpoint - The major shareholder of Lihigh Food Co., Ltd., Mr. Bai Baokun, has reduced his shareholding, which has triggered a change in the percentage of shares held, now falling below the 9% threshold [1][2][3]. Summary by Sections Shareholder Reduction - Mr. Bai Baokun has reduced his holdings by 1.303 million shares, representing 0.77% of the company's total share capital, which has decreased his ownership from 9.69% to 8.92% [2][3][4]. - The reduction in shareholding has reached a change that touches the 1% integer multiple threshold [2][3]. Shareholding Structure - Following the reduction, Mr. Bai Baokun's shareholding percentage is now 8.92%, calculated based on the latest total share capital of 169,340,501 shares, excluding shares in the repurchase account [6][3]. - The reduction does not lead to a change in the company's controlling shareholder or actual controller, nor does it significantly impact the company's governance structure or ongoing operations [3][2]. Convertible Bonds - The company issued 9,500,000 convertible bonds with a total amount of RMB 95 million, which began conversion on September 13, 2023 [2][1]. - The conversion of the bonds has resulted in a passive dilution of Mr. Bai Baokun's shareholding by 0.00003% [2][4].

| 证券代码：300973 | 证券简称：立高食品 | 公告编号：2025-041 | | --- | --- | --- | | 债券代码：123179 | 债券简称：立高转债 | | 立高食品股份有限公司 关于持股 5%以上股东减持股份触及 1%整数倍的公告 持股 5%以上股东白宝鲲先生保证向本公司提供的信息内容真实、准确、完 整，没有虚假记载、误导性陈述或重大遗漏。 本公司及董事会全体成员保证公告内容与信息披露义务人提供的信息一致。 立高食品股份有限公司（以下简称"公司"）于 2025 年 5 月 20 日在巨潮资 讯网披露了《关于持股 5%以上股东股份减持计划的预披露公告》（公告编号： 2025-033），公司持股 5%以上股东白宝鲲先生计划于减持计划公告之日起 15 个 交易日后的三个月内以集中竞价交易、大宗交易的方式减持公司股份不超过 2,500,000 股（含本数），即不超过剔除回购专用账户股份数量后公司当时总股本 的 1.50%。采取集中竞价交易方式减持的，在任意连续九十个自然日内，减持股 份的总数不超过公司股份总数的百分之一；采取大宗交易方式减持的，在任意连 续九十个自然日内，减持股份的总数 ...

Overview - The food and beverage industry is currently facing a dual impact of oversupply and insufficient demand, leading to a restructuring of the overall pricing and competitive landscape [3][6][21] - Despite the pressure on prices and downward revisions of profit growth expectations in some sectors, the intense competition is driving innovation and reform, resulting in new business models and investment opportunities [3][6][21] Baijiu Industry - Since 2025, profound changes have occurred on both the supply and demand sides of the baijiu industry, with a coexistence of consumption upgrades and downgrades [7][22] - Some mid-range baijiu brands are under pressure, while certain local brands continue to grow rapidly, indicating a shift in consumer preferences [22][30] - Baijiu companies have proactively adjusted their supply strategies, leading to a significant slowdown in revenue growth to match demand changes [22][23] - The industry is undergoing a transformation in product and pricing strategies, suggesting a cyclical change, with recommendations to focus on companies with balanced product structures and healthy inventories [22][32] Consumer Goods - The consumer goods sector is entering a new phase where channel efficiency is paramount, driven by the rise of new retail formats such as discount stores and membership supermarkets [8][36] - New business models are disrupting traditional channel barriers and providing better value-for-money options, leading to structural growth opportunities [8][36][37] - The focus for investment should be on channel enterprises and related manufacturing companies, as new retail formats continue to gain traction [8][37] - The market for snacks and beverages is expanding rapidly, with the retail value in the lower-tier markets reaching 2.3 trillion yuan in 2024 [52][56] New Product Trends - There is still room for innovation in certain niche markets, with segments like leisure konjac products experiencing rapid growth [9][70] - The demand for high-quality products remains strong, with a significant portion of consumers willing to pay more for better quality [42][43] Market Structure - The industry is witnessing a consolidation phase, particularly in sectors like dairy, beer, and yeast, where competition intensity is decreasing and leading brands are gaining long-term competitive advantages [10][36] - Traditional sectors like yellow wine are also stabilizing, with improved profitability and potential for revaluation as market dynamics shift [10][36] Retail Channel Dynamics - The rise of membership supermarkets and discount retail channels is reshaping consumer purchasing behavior, with a notable increase in the number of snack retail outlets [48][56] - Companies like Youyou Foods and Lihigh Foods are effectively leveraging these new channels to drive growth and improve profitability [48][70]

Investment Rating - The report maintains a recommendation for the food and beverage industry, indicating a positive outlook for structural growth opportunities [20][21]. Core Insights - The report highlights a stabilization in the price of Moutai, suggesting a potential improvement in sentiment within the liquor sector. It notes that while short-term demand fluctuations may lead to a slowdown in the liquor sector in Q2 2025, leading companies are working to maintain price stability, and smaller companies are adapting to consumer trends [20][21]. - The snack segment is experiencing stable performance in traditional channels, with rapid growth in membership supermarket channels. New products are expected to be launched in the second half of 2025, and the pet food sector is also showing good growth [20][21]. - The report emphasizes the importance of product quality enhancement, channel expansion, and innovative marketing strategies as key methods for companies to navigate current market challenges [20][21]. Summary by Sections Core Company Tracking - Luzhou Laojiao is improving market inventory and plans to expand its distribution network to four million terminals over the next five years. The company is also developing lower-alcohol products [11][12]. - Yanghe Co. has appointed new leadership, which is expected to drive organizational adjustments and enhance operational dynamics. The company continues to innovate its product line [12]. - Jiugui Liquor is focusing on channel adjustments and has partnered with a retail chain to explore new growth avenues [13]. - New Dairy is benefiting from cost advantages, leading to stronger profit release capabilities, with a focus on low-temperature milk products [14]. - Jinzai Food is in a cautious operational phase, with stable performance in traditional and snack channels [15][16]. - Zhongchong Co. is seeing continued growth in its self-owned brands, despite some export challenges [17]. - Petty Co. is expanding its product offerings in both snacks and staple foods, with a focus on New Zealand's production capacity [18]. - Anji Food has successfully listed its H shares, raising approximately 2.302 billion HKD [19]. Investment Recommendations - The report suggests focusing on growth sectors influenced by changing consumer trends, with specific recommendations for companies like Zhongchong Co., Guobao Pet Food, and Nongfu Spring [21]. - It also highlights structural growth opportunities in the restaurant chain recovery, recommending companies such as Zhujiang Beer and Yanjing Beer [21]. - For traditional consumer goods, it advises investing in leading liquor companies and dairy products, with a focus on companies like Yili and New Dairy [21]. Industry Overview - The food and beverage industry is characterized by a total of 143 listed companies with a total market capitalization of 478.1 billion RMB [4]. - The industry has shown a mixed performance, with a 1-month absolute performance of -4.7% and a 12-month performance of 28.2% [6].

Core Viewpoint - The article discusses the rising trend of baked goods in supermarkets, highlighting their increasing sales and popularity as a response to the challenges faced by traditional fresh food categories [3][10][19]. Group 1: Sales Performance of Baked Goods - Sam's Club's Swiss roll became a phenomenon, contributing 8%-10% to monthly sales in some stores, with annual sales exceeding 1 billion yuan [6]. - Hema's strawberry box sales approached 200 million yuan during the recent sales season, with four baked goods surpassing 100 million yuan in sales since 2020 [6][10]. - The "big mooncake" from Pang Donglai reportedly exceeded 200 million yuan in annual sales [7]. Group 2: Shift in Supermarket Strategy - Supermarkets are shifting focus from fresh produce to baked goods due to the inability to differentiate in the fresh food market, which has been impacted by e-commerce and community group buying [9][10]. - Dazhonghua's new brands "Runfa Workshop" and "Good Wheat" emphasize fresh and healthy baked goods, with products like potato bread selling out on launch day [11][13]. - The bakery segment has significantly boosted sales for stores like Yonghui, with some locations seeing over 520% year-on-year growth in bakery sales after adjustments [13]. Group 3: Competitive Pricing and Quality - Supermarket baked goods are gaining popularity due to their high cost-performance ratio, with prices significantly lower than specialty bakeries [19][21]. - For example, Sam's cranberry bagels are priced at 23.8 yuan for seven, while Costco's cinnamon raisin bagels are 19.5 yuan for six [19]. - Supermarkets maintain quality by using premium ingredients, such as 100% animal cream and imported New Zealand milk powder, while also employing longer fermentation processes for better flavor [23][24]. Group 4: Marketing and Consumer Engagement - Supermarkets leverage social media platforms like Xiaohongshu to promote new products and engage consumers, creating a buzz around popular items [27][31]. - Special promotions and limited-time offers during holidays further drive consumer interest and foot traffic to stores [29][30]. - The combination of competitive pricing, quality ingredients, and effective marketing strategies has positioned supermarket baked goods as attractive options for consumers [24][27]. Group 5: Industry Trends and Future Outlook - The traditional bakery sector is facing challenges, with notable brands like Christine and Huan Niu Cake House shutting down due to financial difficulties [15][17]. - The market share of traditional bakeries is declining as supermarkets capture a larger portion of the baked goods market, with offline supermarkets accounting for 37.7% of the main consumption channels in 2024 [17]. - The competition in the baking sector is expected to intensify, with supermarkets increasingly focusing on product innovation and consumer trends to differentiate themselves [41].

（一）可转债发行情况 经中国证券监督管理委员会《关于同意立高食品股份有限公司向不特定对象发行可 转换公司债券注册的批复》（证监许可〔2023〕43 号）予以注册，公司于 2023 年 3 月 7 日向不特定对象发行了 9,500,000 张可转债，每张面值为人民币 100 元，发行总额为人民 币 95,000.00 万元，期限为 6 年。 | 证券代码：300973 | 证券简称：立高食品 | 公告编号：2025-040 | | --- | --- | --- | | 债券代码：123179 | 债券简称：立高转债 | | 立高食品股份有限公司 关于 2025 年第二季度可转换公司债券转股情况的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记载、 误导性陈述或重大遗漏。 特别提示： | 1、证券代码：300973 | | | 证券简称：立高食品 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2、债券代码：123179 | | | 债券简称：立高转债 | | | ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next 6 to 10 months [7][13]. Core Insights - The company demonstrates strong product iteration capabilities in the cream sector, with new frozen baking products performing well in the Sam's Club channel. The introduction of a new national standard for cream in March 2025 is expected to benefit leading companies like the report's subject as the industry becomes more standardized [5][6]. - The company is diversifying its channels, successfully launching new products in the Sam's Club channel and exploring new retail scenarios in catering and tea drinks. It is also actively developing new channels such as supermarkets and snack wholesale [6]. - The company is effectively managing raw material price fluctuations and focusing on cost efficiency. It has implemented strategies to alleviate cost pressures through bulk purchasing and domestic substitution of key raw materials [6]. Financial Projections - Revenue forecasts for 2025 to 2027 are set at 44.66 billion, 50.49 billion, and 55.39 billion yuan, representing year-on-year growth rates of 16.45%, 13.05%, and 9.7% respectively. Net profit attributable to the parent company is projected to be 3.57 billion, 4.14 billion, and 4.61 billion yuan for the same period, with growth rates of 33.24%, 15.93%, and 11.3% respectively [7][9]. - The earnings per share (EPS) for the next three years are estimated at 2.11, 2.44, and 2.72 yuan, corresponding to price-to-earnings (P/E) ratios of 23, 20, and 18 times based on the current stock price [7][9].