Summary of Conference Call Industry Overview - The conference call focused on the pet food industry, specifically discussing the latest data and investment recommendations for the sector [1][2]. Key Points and Arguments - **June Sales Data**: In June, the growth rates for pet food across three major channels (Tmall, JD, and others) were reported as -3.2%, -26%, and +30% respectively, leading to an overall decline of 3.1% year-on-year [1]. - **618 Shopping Festival Performance**: The overall growth rate during the 618 shopping festival showed a slowdown, with combined growth rates for May and June 2023 at 25%, while the same period in 2024 was projected at 14%, and only 7.4% for the current year [2]. - **Brand Performance**: High-growth brands such as Friega and Chen Eleven continued to perform well, while most mid-to-low-end brands did not show similar growth, indicating a trend of brand differentiation within the industry [2][3]. - **Market Dynamics**: The overall market growth for the first half of the year remained strong, but significant disparities in brand performance were noted [4]. - **Cost Factors**: Increased costs due to new production capacity and depreciation expenses from new factories, such as the second factory in Thailand, were highlighted as short-term factors affecting profit growth [5]. - **Pricing Strategies**: During the 618 period, high-end brands offered significant discounts, which negatively impacted their gross margins, leading to lower-than-expected profit growth for the quarter [6]. - **Long-term Outlook**: Despite short-term fluctuations, the company is positioned as a leading player in the domestic pet food market, with expectations for brand growth to remain above 30% [6][7]. - **Investment Recommendation**: The current stock price presents a good buying opportunity, and the decline in reliance on major sales events is seen as a positive trend towards more rational consumer behavior [8]. Additional Important Insights - The overall decline in the industry's dependence on major sales events like 618 is viewed positively, reflecting a shift in consumer shopping habits towards more rational purchasing decisions [8].