Core Insights - The average wholesale price of eggs in China has dropped from 6.25 yuan per jin to 3.75 yuan per jin, marking a five-year low, leading most egg production companies to report losses of 600 yuan per ton [1] - Sichuan Houfu Food Co., Ltd. has found profitability by processing eggs into liquid form, achieving a net profit of 300 yuan per ton [1] - The company operates the largest single liquid egg production line in China, processing over 2 million eggs daily, and has established a close relationship with downstream enterprises [1] Company Overview - Sichuan Houfu Food was established as a "factory within a factory" in partnership with leading egg product companies, allowing for efficient processing and reduced logistics costs [1] - The company has a daily processing capacity of 150 tons of eggs but is currently operating at 75 tons, indicating room for expansion [1][2] - The liquid egg produced has a shelf life of 24 months, significantly longer than fresh eggs, enhancing market competitiveness [1] Industry Trends - The trend of converting eggs into liquid form is expected to grow, driven by increasing demand from the food processing industry and changing consumer habits [2] - The current conversion rate of eggs to liquid in China is below 20%, compared to over 50% in developed countries, indicating significant growth potential [1][2] - The partnership with major food companies has positioned Sichuan Houfu Food as a key supplier in the local market, with increasing orders from well-known brands [1]