Core Viewpoint - Tianma Technology (603668.SH) anticipates a net profit loss of 120 million to 180 million yuan for 2025 due to macroeconomic fluctuations and industry cyclical adjustments, yet maintains its leading position and core competitiveness in the global eel industry [1] Group 1: Short-term Challenges and Long-term Strengths - Despite short-term performance pressures, the overall operational foundation of the company remains solid, with steady growth in aquaculture and food businesses, achieving historical highs in live eel output and grilled eel product sales [2] - As the only A-share listed company covering the entire eel industry chain in China, Tianma Technology has established large-scale industrial clusters and two major breeding bases across eight provinces, forming a complete industrial ecosystem from seedling to food [2] - The company is actively adjusting its seedling structure to capitalize on the price window for Japanese eel seedlings, establishing a new breeding pattern focused on Japanese eel, which positions it to maintain high output levels in the future [2] Group 2: Dual Market Strategy and Brand Development - Tianma Technology is advancing its "domestic and international dual circulation" strategy, having obtained direct export qualifications for live eels to Japan and South Korea, and launched its own brand "Reward Eel" in Tokyo, enhancing its international influence and brand premium [3] - The company's eel products are now sold in over 70 countries and regions globally, with a diversified export market [3] - Domestically, brands like "Eel Hall" and "Little Eel" have successfully penetrated supermarkets, restaurants, e-commerce, and new retail channels, while innovating products to meet domestic consumption scenarios [3] Group 3: Industry Upgrade and Value Reassessment - The eel industry is undergoing a profound transformation from "resource dependence" to "technology-driven," and from "export-led" to "balanced domestic and international focus," with Tianma Technology transitioning from "scale expansion" to "structural optimization" [4] - With the deepening trend of domestic consumption upgrades and continuous exploration of the domestic market, the company is expected to play a leading role in the new growth cycle of the industry [4] - The company aims to enhance its core competitiveness and solidify its leading position through strategic layout optimization, channel expansion, and innovation in operations and technology, preparing for future recovery and growth [4]

Core Viewpoint - Tianma Technology (603668.SH) is expected to report a net loss attributable to shareholders of the listed company ranging from -180 million to -120 million yuan for the fiscal year 2025, indicating a decline compared to the previous year [1] Financial Performance - The projected net profit excluding non-recurring gains and losses for 2025 is estimated to be between -200 million and -140 million yuan [1] - The company is facing a challenging financial outlook due to macroeconomic fluctuations, cyclical adjustments in the industry, and intensified market competition [1] Industry Context - The eel industry is currently in a downturn, with a decrease in sales prices for live eels and grilled eel products due to an expected increase in supply from Japan's abundant eel fry production in 2025 [1] - The company has experienced losses in both the farming and grilled eel food segments as a result of these industry challenges [1] Operational Insights - Despite the adverse market conditions, the company has managed to maintain stable output of live eels and sales volume of grilled eel products [1] - However, the company is facing pressure on product sales prices and rising production costs, leading to a decline in gross margins for the feed segment [1] - Increased operating expenses and provisions for asset impairment have also contributed to the company's projected losses for the year [1]

Core Insights - The export of grilled eel from Shunde has seen significant growth, with orders increasing over 20% in the first three quarters of the year compared to the previous year, and a 30% increase in the Japanese market [1] - Shunde is a major contributor to China's eel production, accounting for 41.2% of the national output, with an annual export of grilled eel representing 20% of the country's total [1] - The Japanese market is projected to import 22,523 tons of Chinese grilled eel in the 2025 eel year, marking a 9.8% increase and the highest level in five years [1] Industry Development - Shunde's eel industry has thrived due to advanced farming techniques and a digitalized supply chain, transforming the eel into a symbol of agricultural technology in China [2] - Eels are sensitive to environmental factors, making large-scale farming challenging; however, Shunde has innovated by using natural ponds instead of traditional cement pools, significantly improving survival rates [3] - The local farmers in Shunde developed their own feed formulas, reducing costs from 8,000 yuan to around 5,000 yuan per ton, breaking the technological monopoly of Japan and South Korea [3] Technological Advancements - Smart farming systems are standard in Shunde's eel farms, allowing real-time monitoring of water quality and automatic adjustments to maintain optimal conditions [4] - The integration of advanced technology in the processing of grilled eel ensures high precision in maintaining freshness and quality, with the entire process taking only 90 minutes [5] - Blockchain technology has been introduced to provide traceability for each eel, allowing consumers to access detailed information about the product's journey from farm to table [6] Market Expansion - Shunde's eel industry has expanded its market reach by developing various processed eel products, including canned eel and snacks, which are sold through e-commerce platforms [5] - The combination of IoT and cold chain logistics has enabled Shunde's eel products to achieve a premium price, with a 40% markup in markets like Hong Kong and Macau [6] - The industry has successfully created a closed-loop system that connects feed production, smart farming, processing, and distribution, enhancing the overall value chain [6]