Core Viewpoint - The report highlights the financial performance of Shuanghui Development in Q1 2025, showcasing stable revenue amidst increased industry competition, with growth in fresh products and a decline in processed meat sales [2][3]. Financial Performance - The company achieved total operating revenue of 14.295 billion yuan and a net profit attributable to shareholders of 1.137 billion yuan in Q1 2025 [2]. - Fresh product revenue reached 7 billion yuan, a year-on-year increase of 6.1%, with operating profit of 120 million yuan, up 24.7% [3]. - Processed meat revenue was 5.58 billion yuan, down 17.8%, with operating profit of 1.48 billion yuan, down 21.7% [3]. Business Segments - The fresh product segment showed strong growth due to expanded customer base and sales channels, while the processed meat segment faced challenges from insufficient terminal consumption and inventory adjustments [3]. - The processed meat category includes a variety of products such as ham, sausages, and canned goods, catering to diverse consumer needs [3]. Sales Channels and Marketing - The company has established a comprehensive online and offline sales model, utilizing platforms like Tmall, JD.com, and Douyin for online sales, while offline sales are primarily through distributors [4]. - Innovative marketing strategies are being implemented, including participation in major retail and food industry events to promote a wide range of products [4]. Production and Cost Management - The company reported improvements in its pig and poultry farming operations, with a focus on reducing costs and enhancing management practices [5]. - The goal is to align farming costs with industry averages by Q4 2025 [5]. Future Outlook - The company anticipates that the profit per ton of processed meat will remain high in 2025, despite a projected decrease compared to 2024 [6][7]. - Strategies to boost processed meat sales include enhancing market operations, expanding customer networks, and increasing market investments [7].

Group 1: Q1 2025 Financial Performance - The company reported a total revenue of 14.3 billion CNY, unchanged year-on-year [4] - Total profit amounted to 1.53 billion CNY, a decrease of 12.7% compared to the previous year [4] - Fresh products business generated revenue of 7 billion CNY, a growth of 6.1% year-on-year, with operating profit increasing by 24.7% [4] - Processed meat business revenue was 5.58 billion CNY, down 17.8% year-on-year, with operating profit declining by 21.7% [4] Group 2: Challenges and Causes of Decline - Processed meat sales declined due to weak consumer demand and insufficient terminal sales support [7] - Inventory reduction by distributors and end customers impacted sales negatively [8] - The company struggled to adapt to changes in channels, with new channel growth not compensating for declines in traditional channels [8] Group 3: Strategic Measures for Improvement - The company plans to enhance sales organization reform and strengthen market specialization [9] - Focus on expanding customer networks and developing new market channels [9] - Emphasis on precise market research and product development to meet consumer needs [9] - Increase market investment and digital promotion to empower sales [10] Group 4: Outlook for 2025 - The company anticipates that the profit per ton of processed meat will be lower than in 2024 but will remain at historically high levels [11] - Expectations for continued improvement in the pig and poultry industries, with management focusing on cost control [12] - Current pig farming costs are above the industry average, but efforts are underway to reduce them to the average level by Q4 [13] - Processed meat inventory is at a low level, indicating a healthy state [14]