Core Viewpoint - The European market has initiated an anti-dumping investigation into Chinese pea protein, following similar actions in the U.S., posing significant challenges for the company, Doublestar Foods, which is the largest pea protein producer globally [1][2]. Group 1: Investigation Details - The European Commission has launched an anti-dumping investigation targeting pea protein products with a protein content exceeding 65%, initiated by a temporary alliance of EU pea protein producers [2][3]. - The investigation period is set from July 1, 2024, to June 30, 2025, with damage assessment starting from January 1, 2022 [2]. - Doublestar Foods' sales of the affected products to the EU are projected to account for approximately 3.92% of total revenue in 2024, increasing to 6.48% in the first half of 2025, indicating growth potential [2][3]. Group 2: Impact of U.S. Actions - The U.S. Department of Commerce imposed a final anti-dumping duty of 269.77% and a countervailing duty of 15.15% on Chinese pea protein on July 30, 2024, significantly impacting the company's U.S. operations [2][3]. - In 2022 and the first half of 2023, exports to the U.S. accounted for 8.14% and 9.92% of the company's total revenue, respectively [3]. Group 3: Company Response and Strategy - In response to the investigations, the company has established a special task force and hired a professional legal team to address the EU investigation, mirroring its strategy during the U.S. anti-dumping case [4][5]. - Doublestar Foods is diversifying its market presence by expanding into emerging international markets and enhancing domestic market efforts, with domestic sales revenue growing by 15.63% in the first half of 2025, reaching 53.89% of total revenue [5]. - The company is also advancing the construction of overseas factories, which may help mitigate the impact of trade barriers through flexible supply chain adjustments [5]. Group 4: Technological and Competitive Advantages - Doublestar Foods maintains a leading position in pea protein extraction technology, with expertise in various extraction methods and collaborations with universities for research and development [5][6]. - The company has developed multiple patents and participates in setting industry standards, reinforcing its technological "moat" against competition [6].

Core Viewpoint - The European Union has initiated an anti-dumping investigation into Chinese pea protein, prompting the company to actively respond to the situation [1] Group 1: Company Overview - The company, Double Tower Foods, primarily engages in the production of pea protein, vermicelli, and dietary fiber, focusing on strengthening its core business and optimizing product structure [1][2] - In the first half of 2025, the company reported revenue of 1.047 billion yuan, a year-on-year increase of 6.18%, and a net profit of 54.36 million yuan, up 0.89% year-on-year [1] Group 2: Pea Protein Business - The company's pea protein business involves extracting pea protein as a byproduct from starch production for vermicelli, enhancing it to feed-grade and food-grade pea protein through technological advancements [2] - The company possesses industry-leading extraction technologies and collaborates with several universities for research in pea protein and peptide fields [2] - Pea protein offers advantages over other plant proteins, such as being non-GMO, allergen-free, cholesterol-free, and low in fat, with applications in various sectors including solid beverages, plant-based meat, energy bars, breakfast cereals, baked goods, and pet food [2] Group 3: Impact of Anti-Dumping Investigation - The investigation covers high-protein pea protein with over 65% protein content, with the investigation period set from July 1, 2024, to June 30, 2025 [1] - In 2024, the sales revenue of pea protein with over 65% protein content exported to the EU is expected to account for approximately 3.92% of the company's total revenue, while in the first half of 2025, this figure is projected to be around 6.48% [2] - The company has established a special task force and hired a professional legal team to address the investigation, while also planning to expand into new international markets and accelerate the construction of overseas factories [3]

Core Insights - The company, Shuangta Food, reported a revenue of 1.047 billion yuan for the first half of 2025, representing a year-on-year growth of 6.18% [1] - The net profit attributable to the parent company reached 54 million yuan, with a year-on-year increase of 0.89% [1] Business Performance - The revenue from the noodle business was 266 million yuan, showing a year-on-year growth of 11.92% [1] - The revenue from pea starch business was 129 million yuan, with a year-on-year increase of 16.35% [1] - The edible protein business generated revenue of 400 million yuan, reflecting a year-on-year decline of 8.01% [1] - The dietary fiber business reported revenue of 47 million yuan, indicating a year-on-year decrease of 28.75% [1]

Group 1 - The latest stock price of Shuangta Food is 5.56 yuan, an increase of 1.83% compared to the previous trading day, with a trading volume of 202 million yuan [1] - The company specializes in the processing of agricultural and sideline products, including pea protein, vermicelli, and dietary fiber [1] - In the first half of 2025, the company achieved an operating income of 1.047 billion yuan, a year-on-year increase of 6.18%, and a net profit attributable to shareholders of 54.36 million yuan, a year-on-year increase of 0.89% [1] Group 2 - The company announced a provision for inventory impairment of 34.465 million yuan in the first half of 2025, which reduced the net profit by the same amount [1] - The company plans to distribute a cash dividend of 0.1 yuan for every 10 shares [1] - On August 19, the net outflow of main funds was 11.5089 million yuan, while the cumulative net inflow over the past five trading days was 16.9514 million yuan [1]

Core Insights - The consensus on the upward revaluation of Chinese assets is expanding continuously [4] - The China Securities Regulatory Commission states that the Chinese capital market will provide irreplaceable investment opportunities for global investors [4] Industry Dynamics - The first low-altitude sightseeing route in Shanghai has launched, indicating the rapid emergence of a trillion-level low-altitude economy, with related stocks including Jialiqi (301586) and Hangcai Co. (688563) [5] - The Shenzhen International Optical Fair will be held next month, with AI glasses expected to gain traction, related stocks include Allwinner Technology (300458) and Shuo Beid (300322) [5] - Huawei has released the world's largest commercial foldable computer, suggesting an imminent explosion in the foldable screen industry, with related stocks including Sidike (300806) and Kaisheng Technology (600552) [5] Company Focus - Weixing New Materials (002372) aims to maintain relative price stability by enhancing product and service quality [6] - Shuangta Food (002481) expects the completion of its factory in Thailand in the second half of the year, anticipating an additional pea protein production capacity of 10,000 tons [6] - Guoxuan High-Tech (002074) reports strong demand for its main products, with continuous growth in production [6] - Link Technology (001207) has silica products applicable in humanoid robotics [6] Market Review and Outlook - On May 20, the market experienced a high and then a pullback, with three major indices showing slight increases. The Shanghai Composite Index closed at 3380.66 points, up 0.39%, and the Shenzhen Component Index at 10245.13 points, up 0.73% [7] - The market is currently lacking a clear mainline, with hotspots being dispersed. However, in the medium term, the "loose monetary + weak dollar" environment is expected to favor technology growth styles [7] - The institution anticipates that elastic opportunities will likely revolve around technology growth areas such as self-control, AI, and robotics in the coming month [7]

Group 1: Company Strategy and Operations - The company is actively expanding its raw material import channels to mitigate procurement risks due to international environmental changes [2] - The Thai factory is part of the company's overseas strategy, expected to be completed in the second half of the year, with an anticipated production capacity of 10,000 tons of pea protein [3] - The company is focusing on new applications for pea protein, particularly in high-end pet food and emerging markets in Asia [2] Group 2: Financial and Investment Insights - The company has not yet initiated its share repurchase plan as the loan funds for the buyback have not been received [3] - In 2024, the company's R&D expenses amounted to 65.67 million yuan, with multiple patents granted and participation in key provincial R&D projects [4] - The company expresses confidence in its 2025 share repurchase plan based on optimistic future development prospects [3] Group 3: Market and Clientele - Major clients for the company's pea protein include international giants such as Nestlé, Mars, and DuPont [3] - The company is monitoring trends in the plant-based meat sector, which is expected to have growth potential [3] Group 4: Shareholder Engagement - The company is considering suggestions for online product discount activities for shareholders and evaluating the feasibility of a shareholder ordering program [4] - The company acknowledges the importance of different product development for various demographics and application scenarios [4]

Summary of the Conference Call for Shuangta Food Company Overview - **Company**: Shuangta Food - **Industry**: Pea Protein and Starch Production Key Points and Arguments Financial Performance - In Q1 2025, Shuangta Food achieved a revenue growth of approximately 15%, driven by a 10% increase in sales of pea protein and Longkou vermicelli, with starch sales doubling [2][3][10] - The company expects a slowdown in starch growth in Q2, but anticipates continued growth of over 10% for pea protein and vermicelli [2][10] Market Dynamics - The company benefits from the pet food sector, with sales to brands like Guibao reaching 120 million yuan [2] - The global pea protein market shows significant price differences, with foreign companies selling at 30,000 to 40,000 yuan per ton due to high starch processing costs, while Chinese companies can sell at around 20,000 yuan per ton, capturing 70% of the global plant-based protein market [2][7][8] Challenges and Opportunities - The pea protein industry faces challenges such as rising raw material prices, global inflation, and increased competition [2][9] - However, the easing of tariffs (reduced to 10%) between China and the US presents opportunities for export growth [2][9] - The company is actively developing health supplements, functional foods, and pet products to expand market space [2][9] Strategic Adjustments - In response to the US anti-dumping investigation, the company adjusted its product structure, shifting from high-protein to low-protein products to avoid high tariffs [4] - The company is also focusing on developing markets in Japan, Australia, and the Middle East, and plans to establish a modified starch production line for fast-food applications [4][19] Production Capacity and Expansion - The Thai factory is expected to start production in the second half of 2025, with a capacity of 10,000 tons, aimed at avoiding US tariffs and enhancing profit margins [2][13] - The factory will produce high-purity pea protein and low-end Longkou vermicelli for the Southeast Asian market [13] Raw Material Procurement - The company sources peas from Canada and Russia, with a shift towards more Russian imports due to tariffs on Canadian peas [15][16] - The price of peas is significantly influenced by climate conditions, with raw material costs constituting 70% of total costs, impacting gross margins [17] Future Directions - Shuangta Food plans to continue focusing on pea protein applications in health products, functional foods, and pet supplies, leveraging its advantages over soy protein [6] - The company aims to enhance product value and expand into new markets through technological innovation and market development [6][22] Stock Buyback and Incentives - The company announced a stock buyback plan of 200 to 300 million yuan for employee stock ownership or incentives [4][21] Additional Insights - The company is committed to enhancing product value and exploring partnerships with large enterprises to address structural challenges in the industry [23]

Core Viewpoint - The company is facing significant asset impairment due to market conditions affecting pea starch, leading to a substantial decrease in profits despite an increase in revenue for the first quarter of 2025 [2][5][26]. Group 1: Financial Performance - In Q1 2025, the company reported a revenue of 500 million yuan, a year-on-year increase of 14.88% [26]. - The net profit attributable to shareholders was 8.93 million yuan, a year-on-year decrease of 78.54% [26]. - The net profit after deducting non-recurring items was 5.21 million yuan, a year-on-year decrease of 87.08% [26]. - The company's debt ratio stood at 42.63% [26]. - The gross profit margin was reported at 16.73% [26]. Group 2: Asset Impairment and Market Conditions - The company has recognized an impairment of over 50 million yuan for 2024 and nearly 30 million yuan for Q1 2025, primarily related to the inventory write-down of pea starch due to market fluctuations [2][5]. - The sales revenue of pea starch has increased significantly, impacting the overall income structure [17]. Group 3: Stock Buyback and Corporate Governance - The company has not yet initiated its stock buyback program as the loan funds for the buyback have not been received [6][14][21]. - The purpose of the stock buyback is to support employee stock ownership plans and equity incentives [2]. - The actual controller of the company is the People's Government of Jinling Town, Zhaoyuan City [4]. Group 4: Future Development Plans - The company aims to become a leader in the pea industry chain, focusing on products such as pea protein, vermicelli, and dietary fiber while continuously extending its product line [8]. - The company is investing in research and development, collaborating with universities to enhance the value of its products [8]. - A new factory in Thailand is expected to be completed in the second half of 2025, which will add approximately 10,000 tons of protein production capacity [15][23].

Group 1: Financial Performance - The company recorded a provision for impairment of over 50 million in 2024, with nearly 30 million in Q1 2025, primarily due to inventory write-downs of pea starch influenced by market conditions [2][3] - The significant drop in profit in Q1 2025 was mainly due to changes in revenue structure and the market conditions of pea starch [3][5] - The company plans to implement a share buyback, but the loan funds for this purpose have not yet been received [2][5] Group 2: Business Strategy and Development - The company aims to become a leader in the pea industry chain, focusing on products like pea protein, noodles, and dietary fiber, while continuously extending its product line [3][4] - The company is actively expanding its raw material procurement channels to mitigate procurement risks [2][3] - New subsidiaries have been established to optimize management structure and resource allocation, enhancing operational efficiency [4][5] Group 3: Market and Product Insights - Pea protein and oligosaccharides are currently in the market development stage, with profitability yet to be established [4][5] - The Thai factory is expected to be completed in the second half of the year, with an additional production capacity of approximately 10,000 tons of protein [5][6] - The company is exploring various avenues for product development and market expansion, including potential AI and technology initiatives [5][6] Group 4: Shareholder Engagement and Value Creation - The company emphasizes maintaining good communication with investors and aims to create stable profits and implement a consistent cash dividend policy [5][6] - Concerns were raised about the impact of share buybacks on stock prices, with the company stating that stock price fluctuations are primarily due to market conditions [3][5] - The company has not identified any undisclosed significant information related to its operations [5][6]