Summary of the Conference Call for Bangji Technology Company Overview - **Company**: Bangji Technology - **Acquisition**: Acquired a 20% stake in American Pyston to enhance production management and efficiency in pig farming [2][8] Key Industry Insights - **Industry Focus**: Pig farming, specifically in breeding and fattening pigs - **Production Capacity**: Pyston currently manages a pig capacity of 80,000 to 100,000 sows, primarily in southern China, with a focus on improving production efficiency [3][5] Core Points and Arguments - **Production Efficiency**: Pyston's PSY (Pigs Sold per Sow per Year) is projected to reach 31-32 by 2025, indicating significant improvements in breeding efficiency [2][5] - **Strategic Expansion**: Bangji plans to collaborate with idle pig farms to accelerate the expansion of sow production capacity [2][7] - **Regional Focus**: The company aims to replicate its successful pig farming model from Shanxi to other regions like Yunnan and Sichuan [2][18] - **Sales Model**: Pyston will primarily focus on selling weaned piglets starting from 2024 [4] Financial Projections - **Feed Sales**: Expected feed sales for 2025 are projected to reach 1.4 to 1.5 million tons, exceeding the initial target of 1.2 million tons [16] - **Future Goals**: The target for 2026 is to increase feed sales to over 2 million tons [16] Operational Strategies - **Management Collaboration**: Bangji will leverage Pyston's management expertise to enhance pig farming operations [7][9] - **Cost Management**: The company provides transportation and credit support to reduce farming costs [11][12] - **Innovative Farming Practices**: The adoption of a partner system in Shandong has improved employee engagement and production outcomes [12] Additional Insights - **Biological Safety**: The new farming model emphasizes higher biological safety standards, which is crucial in the context of African Swine Fever [11][14] - **Future Trends**: The industry may see a shift towards a "south pig, north raising" model, optimizing resource allocation and production efficiency [15] - **Expansion Plans**: Bangji is cautious about expanding its feed factory layout, focusing on gradual growth based on market demand [12][17] Conclusion Bangji Technology is strategically positioning itself in the pig farming industry through acquisitions, operational efficiencies, and innovative farming practices, with a clear focus on expanding production capacity and improving overall efficiency in the coming years.

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The overall supply of the pig market remains sufficient, with second - fattening and large pigs from散户 being sold successively, and scale farms expected to reduce supply at the beginning of the month. After the Dragon Boat Festival, demand will decline significantly, and as temperatures rise, it enters the consumption off - season. The pig market has no obvious boost and is mainly in a weak consolidation trend [2]. - The LH2509 contract is mainly in a recent consolidation trend, while the spot price rebounds [3]. 3. Summary by Relevant Catalogs Futures and Spot Data - **Futures Prices**: The closing price of LH2507 is 13,205, with no change; LH2509 is 13,605, up 90 (0.7%); LH2511 is 13,410, up 230 (1.7%) [2]. - **Spot Prices**: The national commodity pig出栏 price is 14.43 yuan/kg, up 0.22 yuan/kg (1.5%); in Henan, it is 14.6 yuan/kg, up 0.38 yuan/kg (2.7%). The出栏 average weight of sample enterprises is 124.13 kg, unchanged [2]. - **Price Spreads and Basis**: The 09 - 07 spread is 400, up 90; the 11 - 09 spread is - 195, up 160. The 7 - month basis is 1315, up 300; the 9 - month basis is 915, up 210 [2]. - **Warehouse Receipts**: The number of pig warehouse receipts is 0, a decrease of 663 [2]. Piglet and Sow Market - **Piglets**: The average price of weaned piglets is 503.57 yuan/head, down 6.91 yuan/head from last week. The piglet market has declined slightly. Some farmers' enthusiasm for replenishment has decreased [20]. - **Sows**: The average market price of 50KG binary sows is 1641 yuan/head, remaining flat in recent weeks. The market replenishment enthusiasm is not high, and large - scale farms mostly keep sows for self - use, with limited transaction volume [20]. - **Pig Inventory**: From September to December last year, the inventory of breeding sows increased monthly, and the pig production capacity recovered. It is expected that the inventory of commercial pigs in May will continue to increase month - on - month [20]. Slaughter and Consumption - **Slaughter**: The slaughter enterprise's开工 rate is 29.35%, up 0.8 percentage points, mainly driven by pre - Dragon Boat Festival stocking demand. The fresh - sales rate of key slaughter enterprises is 89.25%, up 0.16 percentage points. The frozen - product storage rate of key domestic slaughter enterprises is 17.28%, unchanged from last week [28]. - **Consumption**: After the Dragon Boat Festival, there is no short - term holiday boost, and as temperatures rise, it enters the consumption off - season. The slaughter rate still has room to decline [40]. Profit and Cost - **Profit**: The average weekly profit of self - breeding and self - raising is 91.77 yuan/head, a decrease of 12.67 yuan/head from last week; the average weekly profit of purchasing piglets for breeding is 36.11 yuan/head, a decrease of 10.30 yuan/head from last week [37]. Market Information - **Supply**: The proportion of large - weight pig sources is relatively high, and second - fattening pigs are continuously being sold, so the market supply remains loose [40]. - **Policy**: The "Measures for the Administration of Licensing for the Production and Operation of Breeding Livestock and Poultry" will be implemented on July 1, 2025. There are also market rumors about guiding the pig industry, such as not increasing sows, reducing the weight of fattening pigs to 120KG, and not encouraging second - fattening [40]. - **Disease**: There are sporadic epidemic situations in some southern regions [40]. - **Market Sentiment**: Pig prices are fluctuating, showing a short - term stable and weak trend [40].

Report Information - Report Name: Huajin Futures Weekly Report on Live Pigs [1] - Report Date: April 28, 2025 [1] Investment Rating - No investment rating information provided in the report Core View - In the short - term, the live pig market is relatively stable with a slight increase in demand, and the pig price will mainly show a consolidation trend. As the May Day holiday starts on Thursday this week, short - term operations are recommended [3] Section Summaries 1. Live Pig Futures and Spot Prices - Futures: LH2507 closed at 13,540, down 120 (-0.9%); LH2509 (the main contract) closed at 14,150, down 315 (-2.2%); LH2511 closed at 13,795, down 215 (-1.5%) [3][4] - Spot: The national average commodity pig出栏 price was 14.87 yuan/kg, down 0.03 yuan/kg (-0.2%); in Henan (the delivery benchmark area), it was 15.07 yuan/kg, down 0.06 yuan/kg (-0.4%) [3][4] 2. Inter - month Spreads, Basis and Warehouse Receipts - Spreads: The 2509 - 2507 spread was 610, down 195; the 2511 - 2509 spread was - 355, up 100 [9] - Basis: The basis for July was 1530, up 60; for September, it was 920, up 255 [9] - Warehouse Receipts: The number of live pig warehouse receipts was 665, an increase of 440 [3][9] 3. Inventory and Inventory Structure - Piglets: The average price of weaned piglets was 523.81 yuan/head, down 0.95 yuan/head from last week. The market had stable rigid demand, and the price was supported [18] - Sows: The average market price of 50KG binary sows was 1641 yuan/head, unchanged from last week. The domestic inventory of reproductive sows was expected to be stable with minor fluctuations [18] - Commodity Pigs: The inventory of commodity pigs in April was expected to continue to increase month - on - month due to capacity recovery [18] 4. Standard - Fat Pig Price Spread - National Average: The weekly average national standard - fat pig price spread was 0.01 yuan/kg. Secondary fattening groups continued to enter the market, but the demand for fat pigs weakened as the weather warmed up [24] - Key Markets: In key markets, the standard - fat pig price spread increased in most regions, such as 0.21 in Liaoning and 0.24 in Hebei [23] 5. Slaughter End - Slaughter Rate: The national average slaughter enterprise开工 rate was 27.19%, up 0.35 percentage points. Due to secondary fattening diverting some standard pig resources, slaughter enterprises increased prices to ensure the slaughter volume [27] - Fresh Sales Rate: The fresh sales rate of key slaughter enterprises was 88.1%, down 0.05 percentage points [27] - Cold Storage Rate: The cold storage rate of key domestic slaughter enterprises was 17.45%, up 0.04 percentage points. Some regions had low fresh product sales and were forced to store in cold storage [27] 6. White - Striped Pork and Wholesale Markets - White - Striped Pork Price: The price of the top three grades of white - striped pork fluctuated [29] - Gross - White Price Spread: The gross - white price spread was 4.12 yuan/kg, down [3] 7. Profit and Cost - Self - Breeding and Self - Raising: The weekly average profit was 145.34 yuan/head, down 0.95 yuan/head from last week [35] - Purchasing Piglets: The weekly average profit was 58.80 yuan/head, down 1.39 yuan/head from last week. The increase in feed raw material prices squeezed the profit margins [35] 8. Market Information Summary - Supply: Large - scale farms had normal slaughter volumes, high slaughter weights, and concentrated slaughter by small - scale farmers, resulting in sufficient market supply [38] - Demand: Secondary fattening continued to enter the market, and the May Day holiday备货 supported short - term demand [38] - Cold Storage: Slaughter enterprises had low cold storage capacity, and the cold storage rate was expected to increase later [38] - Policy: The "Administrative Measures for the License of Breeding Livestock and Poultry Production and Operation" will be implemented on July 1, 2025. The increase in import tariffs on US goods was short - term positive for pig prices [38] - Epidemic: There were sporadic epidemic situations in some southern regions, and the southwest was about to enter the traditional epidemic - prone season [38] - Market Sentiment: The market sentiment was relatively neutral due to the fluctuating pig prices [38]

Core Viewpoint - ST Tianbang has made significant operational improvements in its pig farming business, focusing on cost reduction and efficiency enhancement, while also addressing debt restructuring and production capacity optimization [1][5]. Group 1: Cost and Production Metrics - In Q1 2025, the cost of weaned piglets was 308 CNY per head, and the total cost for fattening pigs was 13.62 CNY per kg, a decrease of 0.31 CNY per kg compared to Q4 2024 [2] - Key breeding indicators have improved, with the survival rate of fattening pigs increasing from 88.7% in 2023 to 92.72% in Q1 2025, and the average weight of slaughtered pigs rising from 110 kg in 2023 to 121 kg in Q1 2025 [2] Group 2: Operational Efficiency Improvements - The company reduced its workforce from over 7,000 employees at the beginning of 2024 to 5,000 by the end of Q1 2025, a reduction of approximately 30% [3] - The number of self-built and leased fattening farms in Shandong has decreased to 10, with the breeding sow inventory down to 55,800 heads [3] - The fattening partner model has matured, with partner farms accounting for about 15% of fattened pig output in Q1 2025, while family farms contributed approximately 70% [3] Group 3: Capacity and Debt Management - The utilization rates for breeding and fattening farms were 46% and 43%, respectively, in Q1 2025, with depreciation costs due to empty pens amounting to 0.49 CNY per kg [4] - The company aims to increase the breeding sow inventory by 50,000 heads within the year without additional capital investment, targeting a total of 400,000 heads by year-end [4] - As of Q1 2025, total liabilities were 9.868 billion CNY, down by 5.045 billion CNY from the end of 2023, with a debt ratio of 71.79%, a decrease of 14.94 percentage points [5][6] Group 4: Financial Performance - In Q1 2025, the company's main revenue was 2.443 billion CNY, a year-on-year increase of 19.17%, while net profit attributable to shareholders was 127 million CNY, a decrease of 78.97% [9] - The company aims to reduce the total cost of fattening pigs to below 12.8 CNY per kg by the end of 2025 [6]