Group 1 - The company Longda Food announced the convening of its sixth board meeting on August 15, 2025, to discuss the proposal for the temporary use of idle raised funds to supplement working capital [2] - For the year 2024, Longda Food's revenue composition is as follows: the slaughtering industry accounts for 81.81%, the food industry accounts for 17.31%, other sectors account for 0.72%, and import trade accounts for 0.16% [2]

Core Viewpoint - The article discusses how Huadong Co., Ltd. has developed a futures hedging system to manage risks in the volatile pig farming industry, providing a replicable risk management model for the sector [2][3][4]. Group 1: Company Overview - Huadong Co., Ltd. is a key national agricultural enterprise established in 2003, listed on the Shenzhen Stock Exchange in 2017, and has developed a full industry chain model covering feed processing, pig farming, slaughtering, and meat processing [2][3]. - The company is projected to have a pig output of over 2.5 million heads and a slaughtering capacity of 14 million heads annually by 2024 [2]. Group 2: Risk Management Challenges - The pig farming industry faces a "sandwich" dilemma with upstream raw material price fluctuations, midstream inventory management risks, and downstream impacts from pig price volatility [3]. - Huadong's management identified the need for risk management primarily from the downstream side, where price fluctuations can significantly affect sales profits [3]. Group 3: Futures Hedging Strategy - The company established a derivatives trading department to create a "three-in-one" hedging system focusing on pigs, corn, and soybean meal [3][4]. - In 2024, Huadong predicted the pig futures contract price to be around 19 yuan/kg, higher than the November spot market average, and decided to hedge by selling futures contracts at this price [3]. Group 4: Internal Control and Talent Development - Huadong has implemented a comprehensive internal control system for futures trading, including a permissions management mechanism and real-time risk monitoring [6]. - The company has focused on recruiting professionals with experience in futures trading and agricultural knowledge, enhancing its market analysis and risk control capabilities [7]. Group 5: Contribution to Industry Development - Huadong's participation in the futures market has improved supply chain collaboration and customer loyalty, establishing long-term agreements with suppliers and stabilizing product prices [9][10]. - The company believes that engaging in the futures market not only optimizes production costs and cash flow but also enhances financial metrics and investor expectations, contributing to high-quality industry development [10].

Core Viewpoint - Shunxin Agriculture reported a revenue decline of 13.85% in 2024, despite turning a profit with a net income of 231 million yuan, indicating a struggle with "profit without revenue growth" after shedding its real estate business [1][2][3]. Revenue Performance - The company's total revenue for 2024 was approximately 9.126 billion yuan, down from 10.593 billion yuan in 2023, marking a continuous decline over four years [2][3][4]. - Revenue has decreased nearly 40% from 14.869 billion yuan in 2021 to under 10 billion yuan in 2024 [3][4]. Business Segments - The white liquor segment generated about 7.041 billion yuan in 2024, a 3.19% increase year-on-year, contributing nearly 80% of total revenue [5][9]. - The pork business, however, saw a significant revenue drop of 27.21%, with earnings of approximately 1.891 billion yuan in 2024 [5][15]. Profit Margins - The overall gross margin for the white liquor business was 44.99%, down 5.23 percentage points from the previous year, with declines across all product categories [12][11]. - The pork business reported a gross margin of only 2.42%, continuing a trend of declining profitability since 2021 [15][16]. Quarterly Performance - Shunxin Agriculture has consistently reported losses in the second, third, and fourth quarters from 2022 to 2024, with the first quarter being the only profitable period [8]. - In the first quarter of 2025, both revenue and net profit showed a year-on-year decline, raising concerns about the company's ability to meet annual performance targets [8]. Market Dynamics - The white liquor market is experiencing intensified competition, particularly in the low-end segment, which has seen rapid growth in recent years [10][11]. - Despite having established brands like "Niulanshan," the company has struggled to capitalize on market trends, leading to a decline in gross margins across all liquor categories [11][12].