Core Viewpoint - Fuling Zhacai (002507) conducted an investor relations activity from September 2 to 3, 2025, engaging with 57 institutions including China International Capital Corporation, focusing on new product strategies, market adaptations, and financial management [1] Group 1: Investor Relations Activity Details - The investor relations activity included various formats such as telephone conferences, on-site discussions, and online meetings [1] - The event was attended by key company personnel including the board secretary and the vice president [1] Group 2: New Product and Cost Strategy - The company is investing in new product launches and is implementing a "targeted explosion" strategy to balance sales volume with cost efficiency, avoiding sacrificing profits for revenue growth [1] - The acquisition of Weizimei is expected to enhance the product matrix and facilitate entry into the compound seasoning market, leveraging synergies between restaurant and household channels [1] Group 3: Production and Supply Chain Adjustments - Due to changes in consumer demand, the company is reducing some conventional pickled vegetable production lines while increasing the production capacity for multi-specification products and sauces [1] - The company maintains a "payment before delivery" model for regular distributors, adjusting credit limits for long-term partners facing financial pressures [1] Group 4: Cost Structure and Inventory Management - The company's cost structure remains stable at around 40%, with packaging materials accounting for 20%, labor 13%, and other manufacturing costs 20% [1] - Inventory levels have increased due to the acquisition of over 400,000 tons of raw materials, which is sufficient to meet demand until mid-next year [1] Group 5: Market Positioning and Export Plans - The company primarily collaborates with chain restaurants and high-end hotels, positioning its products in the mid-to-high-end market to meet food safety and quality demands [1] - Export revenue has shown single-digit natural growth in recent years, with plans to establish a team to connect with overseas distributors, primarily targeting Chinese consumers [1] Group 6: Challenges and Strategic Responses - The company faces challenges from changing consumer preferences and increased competition in the condiment market, prompting a strategy to expand product categories and accelerate new product development [1] - The company is actively exploring acquisition opportunities to expand its product offerings and plans to implement consumer-friendly pricing strategies [1]

Group 1: Financial Performance - The company experienced slight revenue growth in the first half of the year, but profits declined due to expenses related to new product launches and ongoing marketing activities [3] - The cost structure includes raw materials (40%), packaging (20%), labor (13%), manufacturing expenses (20%), and auxiliary materials (10%) [8] - Inventory increased due to a rise in raw material purchases, with over 400,000 tons of raw materials acquired this year, ensuring sufficient stock until mid-next year [9] Group 2: Strategic Initiatives - The acquisition of Weizimei is expected to enhance the company's product matrix and market reach in the compound seasoning sector [4] - The company is adjusting its production lines based on consumer demand, reducing conventional pickled vegetable production while increasing multi-specification product lines [5] - The company is optimizing its distributor network by evaluating performance and maintaining a "pay first, deliver later" sales model for regular distributors [6][7] Group 3: Market Positioning - The company targets mid-to-high-end positioning in the restaurant sector, catering to chain restaurants and star-rated hotels [10] - Export revenue has shown single-digit growth, primarily serving overseas Chinese consumers, with no large-scale marketing efforts planned for international markets [11] Group 4: Consumer Trends and Challenges - There is a shift in consumer preferences towards alternative products, prompting the company to accelerate new product development and market expansion strategies [12] - The company is responding to consumer demand for cost-effective products by maintaining quality while offering a variety of products at different price points [15]