Group 1: Sales and Inventory Management - The impact of upcoming holidays on terminal sales is minimal due to the nature of the products being optional consumer goods, primarily used in family dining scenarios [1] - Current channel inventory is approximately six to seven weeks, with increased consumer awareness leading to enhanced inventory management [1] Group 2: Mergers and Acquisitions Strategy - The company plans to continue its acquisition efforts, focusing on the compound seasoning segment with companies that have a certain scale and standardization [2] - Post-acquisition management will leverage existing teams for production, R&D, and operations [1] Group 3: Product Development and Marketing - The company has optimized the flavor and process of the radish product line, launching new customized products and receiving positive market feedback [3] - There is an ongoing development of functional products, including healthy and snack-oriented options, with a focus on diverse packaging and customized offerings [5] - The company is innovating in the snack category, with products like "Crispy Small Vegetables" and various flavored peanuts [6] Group 4: Investment Projects and Production Capacity - The company is progressing with fundraising projects, having completed parts of factory frameworks and intelligent production facilities, with gradual production ramp-up based on demand [4] Group 5: Raw Material Cost Management - The price of green vegetable heads is expected to remain stable between 800-1000 RMB per ton, barring extreme weather conditions [7] - The company is increasing its procurement of raw materials to mitigate the impact of price fluctuations [8] Group 6: Dividend Policy - The company emphasizes shareholder returns, maintaining a stable upward trend in cash dividend ratios, with future plans to provide consistent and increasing dividends based on operational performance [9] Group 7: Brand Investment Strategy - The company maintains a consistent brand presence, adjusting marketing investments based on product maturity and market conditions, while focusing on return on investment [10]

Core Viewpoint - The company is diversifying its product offerings beyond traditional categories, focusing on the development of snack foods and innovative products to drive growth [2]. Group 1: Company Strategy - The company acknowledges the differing strategies among competitors and emphasizes its commitment to diversification in product development [2]. - The company has launched new snack products, including "Xiao Cui Kou" and "Only Wujiang," which are designed for various consumption scenarios [2]. - A joint innovation center was established in May to collaborate with universities and research institutions, aiming to enhance product innovation and technological advancements [2]. Group 2: Market Position - The company is exploring opportunities in the snack food segment, which is perceived as a "blue ocean" market compared to the competitive "red ocean" of hot pot base ingredients [2].

Core Viewpoint - Fuling Pickle (002507.SZ) is actively expanding into the leisure snack market amid ongoing performance pressure, including a recent acquisition of a 51% stake in Sichuan Weizimei Food Technology Co., Ltd. to enhance its competitive edge and product offerings [1][4]. Financial Performance - For 2024, Fuling Pickle reported a revenue of 2.387 billion, a year-on-year decline of 2.56%, and a net profit attributable to shareholders of 799 million, down 3.29% [2]. - In Q1 2024, the company achieved a revenue of 713 million, a decrease of 4.75%, while the net profit was 272 million, showing a slight increase of 0.24% [3]. - The company’s cash flow from operating activities saw a significant increase of 87.59%, reaching 817 million [2]. Market Competition - The industry is characterized by intense competition, with many companies facing low profit margins due to low entry barriers [3][4]. - Fuling Pickle's competitors include brands like Huaitong, Tongqianqiao, and Yiquan, which also hold significant market influence [3]. Capacity Utilization and Expansion - The company faces concerns regarding underutilized capacity, with the Northeast production base's utilization rate falling below 37% in 2024 [4]. - Fuling Pickle's planned expansion project for a green intelligent production base has faced delays, with only 10.94% of the project completed by the end of 2024 [3]. New Market Ventures - The company is venturing into the leisure snack sector, which is also experiencing fierce competition and price wars [5]. - Competitors in the snack industry, such as Liangpinpuzi and Laiyifen, have reported significant losses, indicating the challenges within the sector [5][7].