Core Viewpoint - The Shenzhen Stock Exchange announced a periodic adjustment of sample stocks for various indices, including the Shenzhen Component Index, with Qiaqia Food (002557) being removed from the index due to its declining performance [1] Group 1: Company Performance - In the first three quarters of this year, Qiaqia Food reported revenue of 4.501 billion CNY, a year-on-year decrease of 5.38% [3] - The net profit attributable to shareholders was 168 million CNY, down 73.17% year-on-year, with a significant drop in the net profit margin from 15.53% in 2021 to 3.76% in Q3 of this year [4] - The company's gross profit margin fell to 21.94% in the first three quarters, down 8.31 percentage points from 30.25% in the same period last year [4] Group 2: Reasons for Decline - The decline in profitability is attributed to rising costs of sunflower seeds and core nut raw materials, along with increased expenses for product and channel restructuring [4] - The company has faced ongoing quality complaints, including issues related to product freshness and safety, which have resurfaced recently due to social media controversies [7] Group 3: Market Reaction - Qiaqia Food's stock performance has been negatively impacted by its removal from the Shenzhen Component Index, raising concerns about its future market position [1] - The company has been under scrutiny for quality issues, which may further affect consumer trust and sales [7]

Investment Rating - The industry investment rating is "Positive" [3] Core Views - The food and beverage industry experienced a downturn this week, underperforming the CSI 300 index by 3.18 percentage points, with significant differentiation among sub-sectors. Pre-processed foods and beer led the gains, while the liquor sector faced pressure. Structural fluctuations in raw material prices, along with policy support and technological innovation, are expected to enhance industry upgrades. The approach suggests focusing on leading companies in high-growth sectors and those benefiting from policy changes [3][5][60]. Summary by Sections Industry Performance - During the week of December 1-7, 2025, the food and beverage index fell by 1.90%, ranking 29th among primary industries and underperforming the CSI 300 index. Pre-processed foods (+1.51%), beer (+1.20%), and soft drinks (+0.43%) showed relative strength, while liquor and other alcoholic beverages saw significant declines [5][12]. Raw Material Data Tracking - Grain prices showed slight increases, with corn averaging 2357.45 CNY/ton (+1.19%) and wheat at 2515.22 CNY/ton (+0.32%). Vegetable and fruit prices also rose slightly, with vegetables averaging 5.93 CNY/kg (+2.42%) and fruits at 7.41 CNY/kg (+2.63%) [20][23]. Key Industry Data Tracking - In the liquor sector, prices for some products have declined, with Moutai's wholesale price dropping by 1.90% to 1550 CNY/bottle. The overall liquor sector is experiencing a downturn, indicating a phase of adjustment in industry dynamics [33][41]. Investment Recommendations - Investment strategies should focus on high-growth sectors, policy and technology benefits, and valuation attractiveness. Key areas include pre-processed foods and beer, which are expected to benefit from expanding consumption scenarios and the upcoming peak season. The liquor sector, while currently under pressure, remains a long-term investment due to its stable demand. Additionally, attention should be given to companies with strong cost control and integrated operations in the meat and vegetable processing sectors [60].

Core Viewpoint - The selection of Qiaqia's nut customization smart factory as an exemplary smart factory project signifies a major breakthrough in the company's digital and intelligent transformation, highlighting its role in promoting the food industry's shift towards intelligence, high-end production, and sustainability [1][4]. Group 1: Smart Factory Development - Qiaqia's nut customization smart factory was included in the Ministry of Industry and Information Technology's list of exemplary smart factories for 2025, demonstrating its leadership in smart manufacturing and digital transformation [1]. - The smart factory is recognized for its advancements in production intelligence, equipment management, data integration, lifecycle management, and supply chain collaboration [1][4]. Group 2: Investment in Digitalization - Over the past five years, Qiaqia has invested more than 1 billion yuan in digital and intelligent technologies, establishing a comprehensive digital management system covering the entire supply chain from planting to sales [2][3]. - The company has built 11 large factories globally, including one in Thailand, creating a production capacity layout that extends from China to the world [1]. Group 3: Production Efficiency and Quality Control - Qiaqia employs 36 automated production lines and advanced equipment to ensure precise control over the entire production process, achieving a weight error margin of ±1 gram and exceeding industry standards for freshness [2][3]. - The integration of various advanced systems, such as MES, SRM, ERP, and IoT platforms, has improved production efficiency by over 30% [3]. Group 4: Technological Innovation - Qiaqia has implemented a unique "digital ID" traceability system based on blockchain technology, allowing consumers to access the entire lifecycle information of each nut package [3]. - The company is leveraging cutting-edge technologies like 5G, big data, AI, and blockchain to create a real-time data perception network across the entire supply chain [3]. Group 5: Industry Recognition and Impact - Qiaqia has received multiple national-level recognitions, including "Pilot for the Integration of Manufacturing and Internet Development" and "National Green Factory," showcasing its comprehensive advantages in smart manufacturing [4]. - The company's intelligent manufacturing practices are seen as a milestone in the digital transformation of the food industry, providing solutions for quality control and supply chain resilience [5].