Summary of Guolian Aquatic Products Conference Call Company Overview - Guolian Aquatic Products was established in 2001 and listed on the Singapore Exchange in 2010, with over 20 years of development history [3][5] - The company primarily engages in the processing of aquatic products and the production of prepared dishes, with core products including bullfrogs, South American white shrimp, crayfish, tilapia, black fish, and golden pomfret [3][4] Strategic Transformation - Since 2018, the company has undergone a strategic transformation, shifting from reliance on the U.S. market to deepening development in domestic and other international markets [2][5] - The product structure has transitioned from primary processing to deep processing and prepared dishes [5] - The company has gradually exited upstream industries since 2019, focusing resources on core business areas [2][5] Financial Performance - The company has been in a state of continuous losses since 2019, with significant losses in recent years due to market structure adjustments and challenges in domestic market development [6] - Despite the losses, the export business has performed well, with revenue of approximately 2.6 billion yuan in the first nine months of 2025, showing a year-on-year decline due to optimization of less profitable businesses [2][6] - Production capacity at the Guolian, Guomen, and Yiyang factories is gradually increasing, with high order volumes for key products like breaded shrimp [2][6] Future Development Plans - In 2026, the company will focus on enhancing profitability, increasing the sales proportion of prepared dishes, and strengthening international trade channels, particularly in Europe and Africa [2][7] - The company aims to optimize domestic distribution channels and enhance brand value, emphasizing quality over quantity in supermarket channels [7][8] E-commerce Strategy - E-commerce is a crucial avenue for improving product profitability, with annual sales estimated at 200-300 million yuan [9] - The company has strong brand recognition on platforms like JD.com and Pinduoduo, and plans to leverage e-commerce for brand loyalty and consumer interaction [9] Project Termination - The company terminated the Yiyang deep processing expansion project due to decreased market acceptance of prepared dishes post-pandemic and a sluggish crayfish market [4][10] - Instead of heavy asset investment, the company opted for technological upgrades to launch new products like bullfrogs and white shrimp [10] Market Outlook - The company is optimistic about the future of the restaurant industry and consumer market, anticipating improved market activity as policies relax [11] - The price of tilapia is currently below the breeding cost line but is expected to recover with increased consumer demand [11]

Core Viewpoint - Walmart has recalled certain shrimp products in 13 states due to radioactive contamination concerns, specifically from cesium-137, as reported by the FDA [1] Group 1: Recall Details - The recall involves frozen shrimp from the "Great Value" brand sold at Walmart stores across Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Missouri, Mississippi, Ohio, Oklahoma, Pennsylvania, Texas, and West Virginia [1] - The FDA noted that while a sample of breaded shrimp tested positive, the affected products "did not enter the U.S. distribution" and investigations are ongoing [1] Group 2: Regulatory Actions - The FDA has placed Indonesian seafood company PT. Bahari Makmur Sejati (BMS Foods) on a chemical contamination import alert list, requiring the company to halt exports to the U.S. until the issues are resolved [1]

Group 1: International Marketing Expansion - The company has established international marketing operations covering over 40 countries and regions, with significant growth in non-U.S. market sales, which increased by 34% year-on-year [2][4] - In the European market, export volume saw a substantial increase of 60% [2][4] - The company successfully entered key Eastern European markets and is expanding into strict markets like Europe, Japan, and South Korea [2][4] Group 2: Financial Performance Overview - The total revenue for the reporting period was 3.409 billion yuan, a decrease of 26.16% compared to the previous year [4][5] - The net profit attributable to shareholders was approximately -742 million yuan, indicating a worsening loss due to various factors including low sales prices and market conditions [4][5] - The company implemented cost control measures and improved sales channel layouts, leading to better performance in some business segments [4][5] Group 3: Future Growth Strategies - Future profit growth is expected to focus on the "321 big product" strategy, where the top three products will account for 30%, 20%, and over 10% of revenue, respectively [3][4] - The company aims to optimize its sales structure, emphasizing a dual circulation model that integrates domestic and international markets [3][4] - R&D efforts will concentrate on stable raw material products and enhancing product competitiveness [3][4] Group 4: Market Position and Competitive Advantages - The company has been recognized as a leading enterprise in the domestic aquatic food and prepared food sector, ranking in the top ten of the Hurun China Prepared Food Enterprises list [6][7] - It boasts strong global procurement capabilities and a robust food quality control system, having achieved multiple international certifications [6][7] - The marketing strategy includes comprehensive coverage across various channels, including retail, e-commerce, and food service, with partnerships with major clients like Walmart and Hema [6][7] Group 5: Industry Trends and Adaptation - The company is committed to enhancing food safety and quality in response to government regulations aimed at promoting high-quality development in the prepared food industry [7][8] - It plans to continue expanding its international market presence while focusing on domestic market growth, having already exported products to over 40 countries [7][8] - The company is exploring opportunities for mergers and acquisitions to enhance market share, although this is not deemed a necessary option at present [6][7]