Core Insights - Tianma Technology (603668.SH) has reported impressive results in the first half of 2025, with multiple operational metrics reaching historical highs [1] - The company's net profit attributable to shareholders reached 60.22 million yuan, a year-on-year increase of 7.40% [1] - The company leads the nation in the quantity of Japanese and American eel fry and has achieved record outputs in smart aquaculture and grilled eel sales [1] Group 1: Financial Performance - In the aquaculture segment, Tianma Technology achieved revenue of approximately 419 million yuan, reflecting a year-on-year growth of 14.02% [2] - The revenue from the health food business surged to about 401 million yuan, marking a significant year-on-year increase of 72.40% [2] - Grilled eel sales reached approximately 3,661.36 tons, with a year-on-year growth of 71.98%, both production and sales hitting historical highs [2] Group 2: Business Strategy and Market Position - The company has established a comprehensive marketing network for live eels, successfully launching air freight routes for fresh aquatic products, including the first flight of live eels to South Korea [1] - Tianma Technology has built five major food bases and developed a brand matrix that includes "Eel Hall" and "Eel Small Hall," with products exported to over 70 countries and regions [2] - The company is focusing on a dual-track strategy, developing both domestic and international markets, including the establishment of a subsidiary in Japan and plans for strategic cooperation with major Japanese food wholesalers [3] Group 3: Industry Trends and Future Outlook - The company is adapting to market trends, shifting from a "subsistence" to a "quality" consumption model in seafood, driven by technological innovation and market demand [3] - Tianma Technology aims to build a world-class full industrial chain food supply platform, with aquaculture and food segments becoming key growth drivers for revenue and profit [3]

Core Viewpoint - Tianma Group is transforming from a "passive burden" to an "active breakthrough" by leveraging a risk management system that links futures and spot markets, thus navigating the volatility in agricultural product prices [1] Group 1: Company Overview - Tianma Group, established in 2002 in Fuzhou, initially focused on special aquatic feed and has since diversified into various sectors including poultry feed, eel farming, and food processing, creating a complete industrial chain [2] - The company has become a key national agricultural enterprise and a national technology innovation demonstration enterprise, leading the global market share in special aquatic feed [2] Group 2: Market Challenges - The company faces significant price volatility in key feed production materials such as soybean meal, corn, and soybean, influenced by climate, planting area, international trade policies, and supply-demand mismatches [3] - Price fluctuations complicate cost control, inventory management, and supply chain stability, with rising raw material prices increasing procurement costs and potential shortages impacting production [3] Group 3: Futures Market Engagement - Tianma Group began developing its futures risk management system in 2013, establishing a professional futures team and integrating hedging into its operational decision-making [4] - The company utilizes futures markets for risk management by locking in procurement prices for raw materials, thus mitigating the impact of price volatility on operations [5] Group 4: Hedging Strategy - The company employs a hedging strategy that includes direct hedging and basis trading, tailored to various commodities based on production schedules and market analysis [5] - A typical hedging case involved selling corn futures at approximately 2460 CNY/ton and later closing positions at 2390-2430 CNY/ton, successfully reducing potential losses from inventory devaluation [6] Group 5: Risk Management Framework - Tianma Group adheres to a strict hedging business management system, conducting demand assessments and developing detailed hedging plans that require approval from a dedicated leadership group [7] - The internal audit department conducts regular audits of the futures derivatives business to ensure compliance and effective risk management [8] Group 6: Future Directions - The company is exploring collaborations with futures companies for forward trading and standard warehouse receipt trading, aiming to integrate logistics and supply chain management with futures market functionalities [8] - Tianma Group is interested in innovative insurance products linked to temperature indices for aquaculture, indicating a commitment to further risk management exploration [8]