Group 1: Company Overview and Development - The company has focused on the research, production, and sales of beer malt since its establishment in 1987, currently operating 5 factories with an annual malt production capacity of 1.08 million tons, ranking first in Asia and fourth globally [2] - The company has over 20 years of collaboration with major beer manufacturers such as Budweiser, Carlsberg, and Tsingtao Brewery, and exports products to Southeast Asia, South America, Japan, Korea, and Africa [2] Group 2: Competitive Advantages and Market Strategy - The company maintains a competitive edge by specializing in the mid-to-high-end malt sector, continuously improving product lines and technical capabilities over 30 years [2] - The company adjusts its production capacity based on market changes and employs strategies like unified marketing and procurement to maximize overall benefits [2] Group 3: Pricing and Sales Model - Barley prices are influenced by supply-demand dynamics, climate, agricultural policies, and geopolitical factors, leading to uncertainties; the company locks in raw material prices to mitigate risks [2] - The sales pricing for large clients is determined through annual tenders, while small clients are subject to market pricing based on supply-demand conditions [2][3] - The primary sales model is direct sales, with only one distributor operating in Taiwan and the Philippines [3] Group 4: Export and Product Diversification - Domestic sales dominate, with exports accounting for approximately 25% to 33% of total sales, fluctuating based on domestic market conditions [3] - The company offers specialized malt products to meet the high-end demands of the beer industry, aligning with the trend of increasing beer quality [3] Group 5: Dividend Policy - Since its listing in November 2022, the company has emphasized sharing profits with shareholders, distributing cash dividends of 30.10 million yuan (19.29% of net profit) for 2022, 52.68 million yuan (30.35% of net profit) for 2023, and plans for 151 million yuan (50.27% of net profit) for 2024, indicating a gradual increase in dividend payout ratios [3]

Core Viewpoint - The company is progressing with the construction of a new specialized malt production line with a capacity of 50,000 tons per year, expected to be completed by the end of 2025, and emphasizes its strong technical capabilities and market influence to meet diverse customer demands in the brewing industry [1] Group 1: Project Development - The specialized malt production line project is planned to be completed by the end of 2025 [1] - The company encourages stakeholders to monitor its periodic reports for updates on the project's progress [1] Group 2: Market Position and Customer Relationships - The company has over 20 years of collaboration with major breweries such as Budweiser, Carlsberg, Heineken, China Resources Snow Beer, Tsingtao Brewery, Yanjing Beer, and Zhujiang Beer [1] - The company exports its products to various regions including Southeast Asia, Central and South America, Japan, South Korea, and Africa [1] Group 3: Product Flexibility and Customization - The company possesses deep technical expertise and market influence, allowing it to produce malt products that meet the quality standards of diverse brewing customers [1] - The specialized malt production line is designed to adapt to different flavor preparation needs, showcasing the company's ability to customize products based on downstream demand [1]

Core Viewpoint - The company has successfully launched its "Annual Production of 130,000 Tons of High-Quality Beer Malt Project" and is planning to enhance its production capacity with a new specialized malt production line in 2024 [1] Group 1: Company Developments - The company’s project for producing 130,000 tons of high-quality beer malt is located in the Anyi Industrial Park, Baoying County, Yangzhou, Jiangsu Province and is implemented by its wholly-owned subsidiary, Baomai [1] - The new project for a specialized malt production line with a capacity of 50,000 tons per year is currently under construction and aims to optimize product structure and enhance high-end malt production capabilities [1]

Group 1: Industry Trends - The beer industry is experiencing a significant trend towards high-end products, with a stable overall consumption rate and an emergence of niche, craft, and premium beers [2] - The demand for higher quality malt is increasing due to the industry's shift towards premiumization, aligning with the company's initial focus on the mid-to-high-end market [2] Group 2: Business Expansion Plans - The company aims to solidify its leading position as the largest malt producer in China, aspiring to become a world-class malt supplier [2] - Recent projects have increased production capacity by 27%, with two major projects completed: "Guangmai Phase 4 Expansion" and "130,000 tons of mid-to-high-end beer malt project" [2] - A new 50,000 tons/year specialty malt production line is under construction, with plans to optimize capacity based on customer needs [2] Group 3: Market Dynamics - Few domestic breweries are establishing their own malt production due to the limited demand from single breweries, leading to potential capacity waste [2] - The increasing technical and quality control capabilities of malt manufacturers allow them to meet breweries' diverse requirements effectively, promoting a separation of malt production from breweries [3]