Core Insights - The company has over 30 years of experience in the research and sales of special aquatic feed, establishing itself as a leading player in the sector, with special aquatic feed accounting for approximately 70% of its total feed sales [1] Group 1: Company Performance - The company has developed a "three highs and three lows" technical strategy focusing on high quality, high health, and high growth, while maintaining low protein, low loss, and low feed conversion ratio, which has led to significant improvements in product and technology [1] - Despite a downturn in the aquaculture industry over the past two years, the company has achieved counter-cyclical growth in sales and revenue in the first three quarters [1] - The company places a strong emphasis on managing accounts receivable, which led to losses in 2024 due to credit losses, but a significant decrease in credit impairment provisions in the first three quarters of 2025 allowed the company to return to profitability [1] Group 2: Expansion and Strategic Partnerships - In October of this year, the company launched new factories in Anhui and Vietnam, with the Vietnam facility successfully securing strategic cooperation intentions for 80,600 tons from clients in Vietnam, India, and Cambodia [1] - The company has received an initial coverage rating of "Buy" [1]

Industry Challenges - Insufficient R&D in high-end products and technology, leading to a limited variety of frozen vegetable products and a negative impact on overall industry competitiveness [1] - The quality assurance system for frozen vegetables is not yet mature, with some companies lacking integrity and using harmful chemicals, posing potential food safety risks [2] - Intense and chaotic market competition characterized by price wars and low-level homogenization, resulting in poor product quality and market disorder [3] - Low consumer awareness and acceptance of frozen vegetables in China, primarily due to inadequate market promotion and a reliance on traditional sales channels [4] - High cold chain logistics costs due to an incomplete logistics system, increasing production and sales costs and affecting product quality during transportation [5] Market Size and Growth - The market size of China's frozen vegetable industry was 3.695 billion in 2019 and is projected to reach 8.518 billion in 2023 [7] - The market is expected to continue growing, with a forecasted size of 27.514 billion by 2030 [17] Industry Chain Overview - The frozen vegetable industry chain includes various stages from raw vegetable planting to processing, cold chain logistics, and final delivery to consumers, supported by modern agricultural practices and technology [9] Market Outlook - Despite some nutritional changes compared to fresh vegetables, frozen vegetables retain significant nutritional value and are increasingly in demand due to modern lifestyle changes [13] - The industry is experiencing a shift towards quality-driven consumption, with an emphasis on brand awareness and product quality [15] - The post-pandemic period presents both challenges and opportunities for the frozen vegetable industry, necessitating the establishment of smart quality control systems and enhanced brand marketing [16]