Company Summary - In 2024, the company Tangrenshen (002567) experienced a decline in feed business revenue primarily due to a decrease in raw material prices, leading to a year-on-year drop in average feed sales price and a total feed sales volume of 6.2804 million tons, down 11.33% year-on-year [1] - The company reported an estimated operating revenue of approximately 24.343 billion yuan, a decrease of 9.67% year-on-year, while the net profit attributable to shareholders increased by 123.29% to about 355 million yuan [1] - The feed business generated approximately 15.047 billion yuan in revenue, down 24.98% year-on-year, accounting for 61.81% of the company's total revenue [1] Industry Summary - In 2024, China's total industrial feed production reached 31.5031 million tons, a decrease of 2.1% year-on-year, with specific declines in pig feed (down 3.9%) and ruminant feed (down 13.3%) [2] - The industry is undergoing a consolidation phase, with smaller, less competitive feed companies gradually exiting the market, while larger companies with advantages in management, capital, and technology are expected to grow stronger [2] - There are 1,032 feed production plants with a capacity of over 100,000 tons, producing a total of 19.4683 million tons, which represents 61.8% of the national feed production, an increase of 0.7 percentage points from 2023 [2]

Group 1: Haida Group - Haida Group has set short-term and medium-term goals for its feed business, targeting an increase of 3 million tons by 2025 and 51.5 million tons by 2030 [1] - The company emphasizes the importance of core technological capabilities, particularly in breeding technology, farming models, and feed technology [1] - The overseas strategy focuses on Southeast Asia, Africa, and South America, with capital expenditures aimed at overseas capacity construction and domestic equipment upgrades [1] - The company is exploring a light-asset, low-risk pig farming model and aims to maintain procurement advantages through technological research and development [1] - In aquaculture, factory-based shrimp farming will be a key focus, with plans for future expansion [1] - The company anticipates distributing 1.8 billion yuan in cash dividends for the fiscal year 2024 [1] Group 2: Jingsheng Technology - Jingsheng Technology experienced profit declines in Q4 2024 and Q1 2023 due to changes in product sales structure and reduced gross margins in the photovoltaic business [2] - The company is responding to these challenges by enhancing automation levels in control systems and advancing equipment upgrades [2] - Despite the profit decline, R&D expenses for 2024 are expected to increase by 16.39% compared to 2023, as the company views R&D investment as essential for enhancing core competitiveness [2] - The company aims to balance long-term investments with short-term benefits through cost optimization and efficiency improvements [2] - Jingsheng Technology plans to focus on top-tier enterprise clients in the silicon carbide industry to help them enhance market competitiveness while exploring other product demands [2] Group 3: Anji Technology - Anji Technology continues to invest in R&D in the fields of electroplating solutions and additives, with local production progressing smoothly in 2024 [3] - The company reports significant growth in functional wet electronic chemicals, particularly in post-etching and post-polishing cleaning solutions, with an increased proportion of advanced process products [3] - Anji Technology adheres to a globalization strategy, with ongoing collaboration projects with overseas clients [3] - The company expects an improvement in gross margins in 2024 due to product diversification and enhanced production efficiency [3] - In Q1 2025, revenue may not align with some clients' performance due to a broad business scope and low customer concentration, leading to cautious demand outlook in the second half of the year [3] - The company is strengthening its ability to supply core raw materials independently to enhance product stability and competitiveness [3]

Group 1 - The core viewpoint of the news is that Haidai Group has set ambitious short-term and mid-term goals for its feed business, aiming for an increase of 3 million tons by 2025 and a total sales volume of 51.5 million tons by 2030 [1] - Haidai Group emphasizes the importance of core technological capabilities, particularly in breeding technology, farming models, and feed technology [1] - The company's overseas strategy focuses on Southeast Asia, Africa, and South America, with capital expenditures directed towards overseas capacity construction and domestic equipment upgrades [1] Group 2 - Haidai Group is exploring a light-asset, low-risk pig farming model and aims to maintain procurement advantages through technological research and development [1] - In aquaculture, the company is prioritizing industrialized shrimp farming and plans to expand its scale in the future [1] - The company is considering mergers and acquisitions primarily for capacity layout, while facing challenges in capacity expansion in overseas markets [1] Group 3 - For the fiscal year 2024, Haidai Group is expected to distribute a cash dividend of 1.8 billion yuan [1]

Core Points - The company announced the completion of the cancellation of 450,000 stock options from the 2024 stock option incentive plan [1][2] - The cancellation was approved during the board and supervisory board meetings held on May 13, 2025 [1] - The cancellation of stock options does not affect the company's share capital structure and will not have a substantial impact on its financial status or operating results [2] Summary by Sections - **Announcement Details** - The company held meetings to review and approve the cancellation of stock options [1] - A total of 450,000 stock options that were granted but not exercised will be canceled [1] - The cancellation process was completed on May 14, 2025, after submission to the China Securities Depository and Clearing Corporation [1] - **Regulatory Compliance** - The cancellation aligns with the "Management Measures for Equity Incentives of Listed Companies" and the company's own incentive plan regulations [2]

Core Viewpoint - The article emphasizes the necessity of fully utilizing non-grain feed resources to enhance domestic feed supply and reduce reliance on imported grains, addressing food security and promoting sustainable agricultural practices [1][2][5]. Group 1: Current Challenges - China faces significant challenges in feed supply due to high dependence on imported grains like corn and soybeans, which account for over 90% of total grain imports [2][3]. - The ongoing international trade tensions, geopolitical conflicts, and extreme weather events contribute to uncertainties in grain imports, impacting the stability of feed supply [1][2]. Group 2: Utilization of Non-Grain Feed Resources - The government has introduced the "Feed Conservation Action Implementation Plan," which aims to explore and utilize abundant non-grain feed resources such as agricultural waste, industrial by-products, kitchen waste, and animal by-products [1][2]. - Agricultural by-products like corn stalks, rice straw, and wheat straw have high production rates but low utilization, presenting an opportunity for conversion into quality feed through fermentation [3][4]. Group 3: Innovative Feed Solutions - Technologies can transform waste materials, such as kitchen scraps and animal by-products, into high-efficiency feed resources, promoting a "waste-to-resource" approach [4][5]. - The development of high-quality forage crops and the application of modern breeding and irrigation technologies can alleviate the "grain vs. livestock" conflict and enhance soil health [4][5]. Group 4: Sustainable Agricultural Development - The shift towards utilizing diverse feed sources, including insect protein and algae, supports a low-carbon transition in the livestock industry and contributes to sustainable agricultural development [5].

Summary of Haida Group's Conference Call Company Overview - **Company**: Haida Group - **Industry**: Animal Feed and Aquaculture Key Points and Arguments - **International Market Expansion**: Haida Group is actively expanding into overseas markets, particularly in emerging regions such as Asia-Pacific, Latin America, and Africa, aiming for 7.2 million tons of overseas feed sales by 2030 [2][8] - **Profitability in Overseas Markets**: The profitability in overseas markets is higher than in domestic markets due to a more relaxed competitive environment and structural opportunities, especially in aquaculture feed, where the Asia-Pacific region holds 70% of the global market share [2][5] - **Aggressive Business Strategy**: The company adopts an aggressive business strategy prioritizing sales volume, reducing costs through formulation and procurement, and leveraging economies of scale to lower manufacturing costs before pursuing profit per ton [2][6] - **Integrated Industry Chain Approach**: Haida Group implements an integrated industry chain strategy, combining shrimp seedlings, animal health, and feed technology services to provide comprehensive solutions that enhance survival rates and effectiveness in aquaculture, particularly for large farm owners [2][6] - **Focus on Key Countries**: The company emphasizes a strategy of deepening its presence in key countries, achieving significant market share in specific regions, such as a 45% market share in the Vietnamese duckling market [3][6] Additional Important Insights - **Domestic Market Growth**: In the domestic market, Haida Group's pig feed business showed strong growth, with a 30% increase in Q1 and a 40% increase in April 2025, supported by a successful OEM model that builds customer trust and brand premium [4][9] - **Financial Projections**: The company raised its 2025 target market value to 105 billion yuan, based on a feed growth forecast of 13% to 15%, with plans to achieve 7 billion yuan in feed business profits by 2030 [4][13][14] - **Water Feed Business Outlook**: The water feed business is expected to exceed the annual growth target of 10% to 15% due to stable fish prices and recovery trends in specific feed categories [11] - **Contribution from Pig Farming**: Despite facing downward pressure from the pig cycle, pig farming is projected to contribute 10 billion yuan in profits for 2025, with ongoing exploration of new breeding models to reduce costs [12] - **Future Growth Path**: The growth trajectory for Haida Group is expected to be steep, with significant improvements anticipated in 2025 and 2026, and no ceiling for overseas business expansion [15]

Group 1: Business Outlook and Goals - The company aims to achieve a short-term target of 3 million tons in feed business by 2025 and a mid-term target of 51.5 million tons by 2030, including 5 million tons for self-use in farming and overseas sales [2] - The overseas feed sales target is projected to reach 7.2 million tons by 2030 [2] - The company is exploring light-asset pig farming and factory shrimp farming as future core businesses [2] Group 2: Competitive Advantages - The company emphasizes a "technology-heavy, team-oriented, and asset-light" development strategy, focusing on core technological capabilities as the foundation for long-term growth [3] - Key technological areas include breeding technology, farming models, and feed technology, which provide a broad development space for the company's diverse business [3] Group 3: Overseas Strategy - The company is expanding in Southeast Asia with Vietnam as the core, and is also targeting markets in Indonesia, Bangladesh, and Malaysia [4] - In Africa, Egypt serves as a hub for expansion into North and East Africa [4] - The company has established a presence in Ecuador for South American market development [4] Group 4: Capital Expenditure Plans - Capital expenditure will focus on overseas capacity construction and expansion, while domestic spending will prioritize upgrading existing capacity [5] Group 5: Procurement Advantages - The company maintains a secure and controllable supply chain, primarily sourcing corn domestically and importing soybeans from Brazil and Argentina [7] - The company has a robust R&D team dedicated to animal nutrition and feed formulation, allowing for flexibility in response to agricultural price fluctuations [8] Group 6: Aquaculture Plans - The company primarily cultivates shrimp and other specialty aquatic products, utilizing factory farming techniques that enhance safety and quality [9] - Future plans include expanding shrimp farming scale based on professional team capabilities [9] Group 7: Mergers and Acquisitions - Domestic acquisitions are aimed at capacity supplementation, while overseas acquisitions focus on supporting market development [10] Group 8: Challenges in Overseas Markets - The company faces challenges in capacity expansion due to varying difficulties and efficiencies in different countries [11] Group 9: Dividend Policy - The company plans to distribute cash dividends of 1.8 billion yuan in 2024, with future distributions based on actual operating conditions [12]

Group 1: Financial Performance - In Q1 2025, the company achieved a revenue of CNY 5.973 billion, representing a year-on-year growth of 22.40% [4] - The net profit attributable to shareholders was CNY -0.077 billion, with a year-on-year increase of 60.99% [4] Group 2: Challenges and Responses - The decline in feed business revenue was primarily due to a decrease in raw material prices and changes in the structure of downstream breeding groups, with a 11.33% year-on-year drop in feed sales volume [2] - The company plans to accelerate customer transformation and adjust its product structure towards high-margin, cost-effective feed products [2] Group 3: Market Strategy and Competitiveness - The company has a strong competitive advantage through a comprehensive industry chain strategy, advanced products and breeding technology, and digital transformation capabilities [3] - The company aims to maintain and enhance its market share amidst increasing competition by leveraging its 37 years of experience in the pig farming industry [3] Group 4: Cost Management and Risk Mitigation - The company implements a low-cost competitive system and comprehensive disease prevention management to address the cyclical fluctuations in pig prices [5] - In 2024, the company plans to reduce the cost of fattening pigs by CNY 1.59 per kilogram and the cost of weaned piglets by CNY 46.34 per head compared to the previous year [8] Group 5: Expansion Plans - The company focuses on national expansion, particularly in regions such as Hunan, Guangdong, Guangxi, and Shandong for its feed and pig production businesses [6][9] - The meat processing business is being developed through a combination of online and offline strategies for nationwide coverage [6] Group 6: Research and Development - The company continues to invest in product research and development, aiming for a 100% coverage of the new breeding sow system by 2025 [7] - Emphasis is placed on enhancing the quality of pork products and promoting regional specialties to increase the added value of the pig industry chain [7]

Group 1: International Market Development - The company has established a sales network in over 40 countries and regions, including Vietnam, Russia, Thailand, and Brazil, by the end of 2024 [3][10] - International market business revenue grew by over 25% year-on-year in 2024, with overseas business accounting for over 38% of total revenue [3][9] - The company aims to enhance its international market influence and position through increased investment and product launches along the "Belt and Road" initiative [3][9] Group 2: Competitive Advantages - The company has over 20 years of experience in international market development, establishing a unique brand image and a comprehensive sales network [4] - A high-quality, professional international team provides comprehensive services to overseas distributors and customers, enhancing brand value and differentiation [4] - The company actively participates in global exhibitions and forums to strengthen its brand presence in international markets [4] Group 3: Corn Protein Processing Project - The company is investing in a corn protein processing project with an annual capacity of 100,000 tons, addressing the domestic shortage of feed protein resources [5][6] - The project is expected to enhance the nutritional value and functionality of corn protein products, aligning with national industry policies [5][6] - Upon full completion, the project will provide a diverse product range, mitigating market volatility risks and expanding revenue growth opportunities [6][7] Group 4: Product Strategy and Market Focus - The company’s product strategy emphasizes "diversified nutrition" and focuses on pigs, ruminants, poultry, and aquaculture [12] - In 2024, the revenue breakdown for main products was 60.93% for functional feed additives, 19.97% for nutritional feed additives, and 12.84% for enzymatic protein feed materials, with growth rates of 6.77% and 9.81% respectively [11] - The company plans to enhance its product line and market presence through increased R&D investment and the introduction of high-value products [12]

Investment Rating - The report initiates coverage of the agriculture sector with an "Overweight" rating, indicating a favorable outlook for the industry due to stable demand and strong policy support [3][5]. Core Views - The agriculture sector is seen as a defensive investment option amidst a complex external environment, with many meat protein and agricultural product prices currently in a recovery phase, suggesting potential for stable growth in leading companies [3]. - The report highlights that low costs are a core competitive advantage for listed pig farming companies, recommending a focus on firms with strong cost control or clear cost reduction paths [3]. - The report suggests monitoring specific companies across various segments, including pig farming, poultry, feed, and agricultural products, indicating a diversified investment approach [3]. Summary by Sections Market Review - The agriculture sector underperformed the market by 1.02 percentage points during the week of May 6-9, 2025, with the index closing at 2,619.30, reflecting a 0.99% increase [14]. - Among sub-sectors, the fishery sector performed best with a 3.87% increase, while the breeding sector saw a slight decline of 0.19% [16][18]. Key Industry Data Pig Farming - As of May 9, 2025, the average price of live pigs was 14.82 CNY/kg, down 0.13% from April 30, 2025, and down 0.74% year-on-year [1]. - The profit from self-breeding was 84.33 CNY per head, while the profit from purchasing piglets increased by 9.92 CNY to 58.46 CNY per head [1]. Poultry - As of May 9, 2025, the average price of broiler chicks was 2.91 CNY per chick, up 0.34% week-on-week, while the price of white feather broilers was 7.45 CNY/kg, down 0.40% [2]. Agricultural Products - As of May 9, 2025, the average prices for key crops were as follows: wheat at 2,460.67 CNY/ton (up 0.19%), japonica rice at 2,864.00 CNY/ton (up 0.21%), corn at 2,292.86 CNY/ton (up 1.78%), and soybean meal at 3,300.00 CNY/ton (down 5.08%) [2]. Company Announcements - Muyuan Foods reported selling 6.573 million pigs in April 2025, a year-on-year increase of 51.80%, with an average selling price of 14.66 CNY/kg [35][36]. - Shennong Development achieved a sales revenue of 1.533 billion CNY in April 2025, a year-on-year increase of 0.68% [37].