Group 1: Company Overview and Strategic Focus - The company has over 30 years of experience in the pig industry, focusing on biological feed, healthy breeding, and branded meat products [2] - Recent strategic shift towards healthy breeding and increased investment in meat products, particularly in the second half of 2025 [2] - Plans to enhance the competitive advantage of the entire pig industry chain by leveraging high-quality self-breeding bases and established brand influence [2] Group 2: Financial Health and Management - As of June 30, 2025, the company's debt-to-asset ratio is 64.5%, with cash reserves of approximately 2.4 billion yuan [2] - The company achieved a net cash flow from operating activities of 660 million yuan in the first half of 2025 [2] - Future strategies include maintaining good relationships with financial institutions and exploring equity financing to manage risks and ensure stable development [2] Group 3: Production Capacity and Regional Focus - The majority of the company's pig production capacity and output is concentrated in Hunan, Guangdong, and Guangxi, with additional capacity in Henan, Hebei, Yunnan, and Gansu [3] - Future development will focus on key regions such as Guangdong and Hunan to align with pork consumption areas [3] Group 4: Feed Business and Sales Strategy - Historically, the feed business has relied on a dealer-based model, with a shift towards direct sales as the industry scales [3] - The company is innovating its feed sales model to enhance profitability through customized nutrition and improved service offerings [3] - Overall strategy aims to boost feed sales and ensure a reasonable sales structure for downstream feed customers [3]

Core Viewpoint - The company aims to establish a low-cost competitive system to smooth out the fluctuations of the pig cycle and create better returns for investors [2] Industry Development Outlook - Pork is the primary source of animal protein for Chinese residents and will maintain a dominant position in meat consumption in the long term, making it a stable and evergreen industry [2] - The pig farming market experiences cyclical price fluctuations due to factors such as growth cycles, inventory levels, feed prices, and market supply and demand [2] Cost Reduction Strategy - The company is focusing on reducing costs as a systematic project rather than merely cutting individual costs [2] - In 2024, the company plans to reduce fattening costs by 1.59 yuan per kilogram and weaning pig costs by 46.34 yuan per head compared to the previous year [2] - The company emphasizes technological innovation in genetic breeding, feed nutrition, and health farming to continuously lower pig farming costs and enhance profitability [2] Management and Operational Innovations - The company is committed to management innovation, enhancing internal management through project systems, and advancing digital transformation [2] - The company is accelerating the promotion of the "company + farmer" fattening model in consumption areas such as Hunan, Guangdong, and Guangxi [2] Environmental Considerations - The company is investing in environmental measures such as ventilation, odor control, and wastewater treatment, and has established a specialized environmental department [3] - The company aims to lower comprehensive costs without sacrificing the interests of stakeholders or increasing social and environmental costs [3] Business Structure and Strategy - The company has a clear division of its three main business segments: biological feed, healthy farming, and branded meat products [3] - The company follows a full industry chain operation strategy, focusing on professional development, industrial collaboration, and value prioritization to enhance profitability [3]

Core Viewpoint - The company, Dongrui Food Group Co., Ltd., has reported a negative net profit for 2024 and plans not to distribute cash dividends or issue new shares, focusing instead on maintaining operational stability and future growth [75][78][79]. Company Overview - Dongrui Food Group is a modern agricultural enterprise engaged in pig farming, research, and trade, recognized as a key player in the agricultural industry in China [4][5]. - The company has established a complete industrial chain for pig farming, including feed production, breeding, and processing [4][6]. Business Operations - The main business activities include pig farming, feed production, and slaughtering, with products such as commercial pigs, piglets, and pork products [5][6]. - The company has increased its pig production capacity to 2 million heads and has registered farms for supplying live pigs to Hong Kong and Macau [6][7]. Financial Performance - The company reported a net profit of -65.65 million yuan for 2024, leading to a cumulative undistributed profit of 354.24 million yuan at the end of the year [78]. - The company plans to maintain its financial stability by not distributing dividends, which aligns with its long-term growth strategy [79]. Future Plans - The company is exploring a new "company + family farm" breeding model to enhance efficiency and support local farmers [7]. - It aims to expand its slaughtering and pork processing business, with plans to innovate product lines and improve market reach [8]. Shareholder Engagement - The company has proposed a three-year dividend return plan for shareholders, which will be discussed in the upcoming shareholder meeting [21][38]. - The board has approved various reports and plans, including the annual financial report and the profit distribution proposal, which will be submitted for shareholder approval [14][16][19].