Summary of Haida Group Conference Call Company Overview - Haida Group maintains a leading position in the agricultural sector through continuous R&D investment, particularly in the construction of a database for aquatic animal nutrition needs, with R&D expenditure averaging 26% of profits [2][3] Industry Performance - Haida Group has held the top domestic sales position in aquatic premix feed for 21 consecutive years, with compound growth rates for aquatic compound feed and poultry feed at 19% and 20% respectively, while pig feed has a remarkable compound growth rate of 31%, ranking among the industry leaders [2][8] Cost Management - The company effectively controls costs through futures tools for key feed raw materials like corn and soybean meal, resulting in feed costs that are 3.9% lower than the industry average, establishing a foundation for high-cost performance products [2][15] Comprehensive Services - Haida Group enhances user stickiness by providing a full range of services including seedling supply, breeding model technology, and disease prevention, ensuring that farmers achieve excess profits [2][16] Market Trends - The compound growth rate for specialty aquatic products such as bass and mandarin fish significantly exceeds that of ordinary aquatic products, with a higher acceptance of high-quality aquatic feed as consumer preferences shift [2][20] Future Price Expectations - Starting from May 2024, prices for major species like grass carp and California bass are expected to rise, driven by reduced seedling supply and a stabilizing consumer demand, which will boost the demand for specialty aquatic product feed [5][23] International Expansion - Haida Group's overseas business has grown rapidly, with revenue increasing from 300 million yuan in 2012 to 14.3 billion yuan in 2024, achieving a compound annual growth rate of 38%, outpacing the domestic growth rate of approximately 19% [5][25] R&D Investment - The company has built a three-tier R&D system focusing on industry-wide basic research, market-oriented cost reduction, and practical solutions for end farmers, with 90% of R&D resources allocated to the latter two tiers [12][13] Competitive Landscape - The company’s management structure is flat, with a significant number of vice presidents, and it has implemented a comprehensive employee training and incentive system, including stock options since 2011, which enhances employee motivation and supports sustained growth [17] Future Directions - Haida Group plans to consolidate its domestic market advantages while actively expanding into international markets, replicating its successful competitive model and extending its reach into upstream and downstream sectors, including animal health and breeding [10] Profitability Forecast - The company is projected to achieve a profit of approximately 5 billion yuan in 2025, increasing to about 5.9 billion yuan in 2026, supported by steady market share growth and accelerated international expansion [26][27]

Core Viewpoint - Shennong Group has shown significant financial recovery and growth in 2024, with a revenue of 5.584 billion yuan, a 43.51% increase year-on-year, and a net profit of 687 million yuan, compared to a loss of 401 million yuan in the previous year [1] Group 1: Financial Performance - In Q1 2025, Shennong Group achieved a net profit of 229 million yuan, marking a continued turnaround from previous losses [1] - The company has reported five consecutive quarters of substantial improvement in net profit since Q1 2024 [1] Group 2: Feed Business Expansion - Shennong Group operates six feed production bases in Yunnan and Guangxi, with a total annual production capacity exceeding 1.5 million tons [2] - In 2024, the company sold 600,500 tons of feed, with 689,000 tons for export and 531,600 tons sold to its internal breeding enterprises [2] Group 3: New Production Facilities - The newly completed Shilin feed production base has a designed annual capacity of 180,000 tons, making it the largest premix feed and teaching feed production facility in Yunnan [3] - The integration of complex feed production into this facility allows other plants to focus on simpler feed types, enhancing overall production efficiency [3] Group 4: Digital Transformation - Shennong Group has implemented an SAP system to improve internal operational efficiency in the feed business, enhancing planning and execution across various stages of production [4] Group 5: Livestock Breeding Profitability - The livestock breeding segment generated 3.798 billion yuan in revenue in 2024, a year-on-year increase of 81.34%, accounting for 68.02% of total revenue [5] - The company sold 2.2715 million pigs in 2024, a 49.40% increase from 2023 [5] Group 6: Cost Management - The complete cost of breeding in March 2024 was approximately 12 yuan per kilogram, lower than many comparable listed companies [6] - The company plans to expand its breeding scale to 3.2 to 3.5 million pigs by 2025, with expectations of further cost reductions [7] Group 7: Slaughtering and Food Processing - Shennong Group has established a full industry chain from feed production to slaughtering and food processing, which helps mitigate the impact of the "pig cycle" on operations [8] - In 2024, the slaughtering and food processing segment generated 1.473 billion yuan in revenue, a 19.6% increase, representing 26.38% of total revenue [8]