TIANMA TECH(SH:603668)2024-07-22 09:18Feed Production and Aquaculture Growth - The total feed production in China increased from 193.4 million tons in 2013 to 321.6 million tons in 2023, representing a growth of 66.3%[3] - In 2023, the total output of livestock and poultry meat in China reached 96.41 million tons, a year-on-year increase of 4.5%[5] - The total output of aquatic products in 2023 was 71.16 million tons, growing by 3.64% year-on-year[5] - The feed industry in China is projected to reach 336 million tons by 2033, with an average annual growth rate of 1.0%[5] - In 2023, China's total aquatic product output reached 71.16 million tons, a year-on-year increase of 3.64%[140] - The production of freshwater products in China reached 35.31 million tons in 2023, growing by 3.65%, while marine products reached 35.85 million tons, growing by 3.64%[130] - The proportion of aquaculture in China's fishery production has increased from 26% in 1978 to 81.6% in 2023[129] - The aquaculture seed industry in China generated a market value of 87.94 billion yuan in 2023, growing by 4.26% year-on-year, with freshwater seed production accounting for 99.11%[168] Company Innovations and Achievements - The company is focusing on modern, standardized, and automated farming methods for freshwater eel, aiming to establish a national-level high-tech agricultural industrial park[9] - The company utilizes advanced DNA testing technology for eel to ensure quality control and health monitoring[9] - The company has developed a comprehensive range of aquaculture feeds, including specialized feeds for various growth stages of species such as abalone, sea cucumber, and shrimp, with patented technologies enhancing feed efficiency and safety[11] - The shrimp feed line has received three invention patents, with the "High-efficiency South American White Shrimp Floating Feed" project recognized as a key project in Fujian Province, indicating strong innovation capabilities[11] - The company has received multiple invention patents for its aquaculture feed products, including three for the Chinese soft-shelled turtle feed series and has established national standards for these products[173] - The company has established several R&D platforms, including a national enterprise technology center and provincial engineering research centers, to support innovation and development in aquaculture feed[188] Financial Performance and Market Presence - The company's operating revenue for the first half of 2024 was ¥3,009,257,221.62, a decrease of 9.81% compared to the same period last year[39] - The net profit attributable to shareholders for the same period was ¥56,069,344.70, a significant increase from a loss of ¥28,116,069.78 in the previous year[39] - The net cash flow from operating activities was ¥34,131,386.84, down 19.86% from ¥42,590,147.22 in the previous year[39] - The company has established a strong market presence both domestically and internationally, with ongoing efforts to expand its market reach[16] - In Q1 2024, China's total aquatic product output reached 14.19 million tons, a year-on-year increase of 4.37%[99] - The company achieved a historical high in eel production, with a total output exceeding 7,600 tons, contributing to a significant increase in profitability[57] Product Quality and Safety - The company has implemented a traceable food safety system across its production processes, prioritizing food safety as a key operational focus[15] - The company’s eel products are recognized for their high nutritional value, being rich in protein and essential amino acids[9] - The company’s eel bone snacks are considered a natural calcium source, with a calcium-to-phosphorus ratio close to 2:1, ideal for absorption[9] - The company has developed functional feeds for California sea bass, focusing on liver health, showcasing innovation in product development[177] - The company has developed a food traceability system to ensure the safety and quality of its products, which are exported to over 70 countries and regions[91] Strategic Focus and Future Plans - The company is focused on building a comprehensive ecosystem around eel products, including research, production, processing, and sales, aiming to establish itself as the largest grilled eel platform globally[15] - The company aims to establish a national good seed base and a joint research center for seedling breeding to enhance its competitiveness in the industry[126] - The company is focused on building a world-class food supply chain platform centered around the eel industry, with strategic development across four major sectors[65] - The company is actively involved in research and development, with over 40 national and provincial-level technology projects undertaken[74] - The company is expanding its aquaculture bases in Fujian, Guangdong, Jiangxi, Hubei, and Guangxi, in line with its growth strategy[67] Market Trends and Industry Insights - The demand for sustainable aquaculture practices is increasing, with a focus on high-quality, efficient, and safe production methods[102] - The pre-made seafood industry in China reached a market size of 123.7 billion yuan in 2023, with a year-on-year growth of 18.1%, and is expected to grow to 257.6 billion yuan by 2026[113] - The export volume of eels from China grew from 43,000 tons in 2017 to 68,000 tons in 2023, with a compound annual growth rate of about 7.9%[107] - The consumption of eel products is shifting from primarily export-driven to a new growth model supported by both domestic and international sales[107] - The processing of freshwater products sees about 18% entering the processing stage, while for marine products, the figure is approximately 55%[140] Operational Efficiency and Management - The company has established a "center + subsidiary" operational model, including procurement, production management, R&D, finance, marketing, and HR centers, to support healthy and rapid business development[161] - Over 90% of the company's raw material procurement is centralized, focusing on key materials like fishmeal and soybean meal, while less than 10% is authorized procurement for non-core materials[162] - The procurement strategy combines planned and immediate purchasing, as well as spot and futures market strategies, to enhance procurement efficiency and risk management[162] - The company employs a "distribution + direct sales" model for its feed products, targeting both small-scale farmers through distributors and larger enterprises directly[186] - The company has established a comprehensive sales management structure, including a marketing committee and various departments to optimize sales strategies[181]