Core Viewpoint - The company, Muyuan Foods, reported a live birth rate of approximately 86% for its pigs from birth to market by June 2025, indicating strong operational efficiency in pig farming [1] Group 1: Production Efficiency - The company's total cost of pig farming is significantly influenced by feed costs, which account for 55-60% of the total expenses [1] - The company aims to enhance the growth potential of its pig herd and improve overall health levels to reduce feed-to-meat ratios and increase feed conversion efficiency [1] Group 2: Cost Management - The company plans to adjust feed formulations based on raw material prices to effectively lower feed costs [1]

Group 1: Poultry and Pig Farming Performance - The company’s pig farming business achieved an average of 11.7 piglets per litter in May, with production costs for piglets reduced to approximately 280 RMB per head, and a market rate of 93% for pigs [1] - The comprehensive cost of pig farming in May was between 6-6.1 RMB per kilogram [1] - The chicken farming business maintained a high level of stability, with a market rate of 95% for broilers in May and total costs reduced to 5.5-5.6 RMB per kilogram [2] Group 2: Sales and Market Strategy - From January to May 2025, the company sold a total of 1.01 million piglets, focusing primarily on fattening and selling pigs rather than exporting piglets [3] - The average annual output of cooperative farmers is approximately 2,000 pigs [5] - The company does not plan to delegate breeding pigs to cooperative farmers due to the high technical requirements and value of breeding pigs [4] Group 3: Disease Control and Management - The company has established a robust biosecurity system to manage diseases such as African swine fever and porcine reproductive and respiratory syndrome, resulting in stable production [7] - The core competitive advantage in pig farming is achieved through meticulous management to lower production costs while ensuring product quality [6] Group 4: Market Outlook and Trends - The market for Chinese native chickens (yellow feathered broilers) is currently weak due to oversupply and sluggish consumption, but prices are expected to recover in the second half of the year as traditional consumption peaks [8] - There is a low correlation between the market trends of Chinese native chickens and white feathered chickens, indicating independent market dynamics [9] Group 5: Feed and Sustainability Initiatives - The company primarily uses self-produced feed, with occasional external purchases during periods of insufficient capacity [10] - Rising feed raw material prices significantly impact livestock farming costs, and the company plans to leverage centralized procurement and digital management to control these costs [11] - The company is actively pursuing green and low-carbon development strategies in response to climate change, focusing on energy optimization and clean energy applications [13] Group 6: Corporate Governance and Control - The recent adjustment of actual controllers will not affect the stability of the company's control, as the new controllers hold a combined 11.9% of shares, similar to the previous 15.6% [14] - The new generation of family members involved in management is expected to maintain the company's governance stability and align with the original management philosophy [15]