Core Viewpoint - The appointment of Liu Jing as the new general manager of Longda Food comes during a challenging period marked by significant losses and regulatory scrutiny, raising questions about her ability to lead the company out of its current difficulties [3][15]. Group 1: Company Performance - Longda Food experienced a peak revenue of 24.1 billion yuan in 2020, with a net profit of 906 million yuan, but has since faced a downturn, with a 19% revenue decline in 2021 and a net loss of 659 million yuan [6][18]. - The company is projected to report its largest loss since going public, with an expected net loss of 1.36 billion to 1.76 billion yuan for 2023, and further losses anticipated in 2025, estimated at 620 million to 760 million yuan [7][19]. Group 2: Business Strategy - The previous general manager, Yang Xiaochu, initiated a strategic restructuring, introducing a "one body, two wings" development strategy focused on food as the main business, supported by breeding and slaughtering, and rebranding the company from "Longda Meat" to "Longda Food" to emphasize its shift towards prepared food [6][18]. - Despite the growth in the prepared food segment, which increased from 1.182 billion yuan in 2021 to 1.984 billion yuan in 2023, it still only accounts for about 15% of total revenue, with the company heavily reliant on the slaughtering segment, which constitutes over 70% of its business [7][18]. Group 3: Regulatory Issues - The company has faced regulatory challenges, including two notices from the Shandong Securities Regulatory Bureau regarding financial reporting violations from 2021 to 2024, which involved improper capitalization of interest related to convertible bonds and inaccuracies in financial disclosures [8][20]. - A second regulatory notice highlighted a breach of commitment by the controlling shareholder regarding competition issues with a subsidiary, with a promise to resolve these conflicts by December 31, 2025, which remains unfulfilled [9][21]. Group 4: Leadership Transition - Liu Jing, born in 1988, has a diverse background, including experience in government affairs and corporate governance, and has been with Longda Food for two years as deputy general manager before her promotion [10][22]. - Her appointment is seen as a sign of trust from the controlling shareholder, and she faces significant challenges, including navigating the pig cycle, enhancing the prepared food business, addressing financial compliance issues, and managing debt pressures [11][24].