Summary of the Conference Call on the Food Supply Chain Sector Industry Overview - The food supply chain sector, particularly the condiment and pre-processed food segments, showed signs of bottoming out in recent months, with a slight increase in industry scale in Q3 2025, although it underperformed compared to the CSI 300 index [1][2] - Institutional holdings and valuations are at low levels, indicating potential for rebound [2] - The sector has been impacted by recent consumption policies and competition, but there is optimism for recovery if demand improves or policies change [2][4] Key Companies and Their Performance Haitian Flavor Industry - After a decline in stock price in 2022, Haitian Flavor Industry has seen improvements under new management since 2024, focusing on operational efficiency [5][6] - The company reported stable growth in soy sauce and offline channels, with new product categories driving high growth [5] - Expected profit growth of 10.8% for the year is likely to be achieved, supported by improved gross margins due to cost advantages [6] Baba Food - Baba Food has successfully adjusted its business strategy, with single-store revenue recovering in Q2 2025 [7] - The company launched a franchise dining model and expanded its product line, showing strong potential for growth [7][8] - Performance in the second half of 2025 is expected to be strong, making it one of the best performers in the sector [8] Anjuke Food - Anjuke Food has balanced its B and C-end business, focusing on product innovation and a customized strategy for supermarkets [9] - Despite a weak restaurant environment, the company achieved stable growth through flagship products and strategic acquisitions [9] - The core operational capabilities remain stable, with potential for better performance if demand recovers [9] Qianwei Central Kitchen - Qianwei Central Kitchen is undergoing significant adjustments to adapt to changes in the B-end restaurant industry [10] - New retail clients have emerged as highlights, although profitability is currently low [10] - Future improvements in efficiency and cost allocation are expected to enhance profitability [10] Yihai International - Yihai International's performance is expected to remain consistent with the first half of the year, with overseas operations slightly slowing down [11][12] - The company is focusing on third-party B-end channels and has accelerated the progress of overseas factories [12] - High dividend rates provide support for shareholder returns, and the company is seen as having investment value [12] Additional Insights - The overall trend in the food supply chain sector indicates a gradual reduction in the impact of consumption policies and competition, with expectations for macro policy disclosures in Q4 [13] - The sector is characterized by stable supply-side competition and efforts to reduce costs, with leading companies enhancing industry concentration through acquisitions [13] - Companies sensitive to policy changes, such as Haitian, Baba, Anjuke, and Qianwei, are particularly noteworthy for potential investment opportunities [13]

Core Viewpoint - The change in fundraising allocation by Anjii Food reflects the challenges faced by the frozen food industry, indicating a need to explore new growth opportunities, particularly in the frozen baking sector [1][4]. Fundraising Purpose Change - Anjii Food announced a change in the use of funds from a non-public stock issuance, reallocating part of the funds originally intended for four frozen food projects to a new baking project [1][4]. - The four original projects include upgrades in Sichuan, Liaoning, and Taizhou, and an expansion project in Henan, with a total of 361 million yuan being redirected to the Dingyifeng baking project, which has a total investment of 410 million yuan [1][3]. Financial Projections - The Dingyifeng baking project is expected to have a construction period of two years, with projected annual revenue of 613 million yuan and a profit of 67.83 million yuan, yielding an internal rate of return of 10.38% and a payback period of 8.05 years [3][4]. Industry Challenges - Anjii Food's decision to change the fundraising project is attributed to the evolving macroeconomic environment, industry policies, and consumer demand, which have shifted towards healthier and more diverse food options [4][5]. - The traditional frozen food sector, particularly frozen rice and noodle products, is experiencing a contraction, with Anjii's revenue for the first half of the year showing only a slight increase of 0.8% to 7.604 billion yuan, while net profit fell by 15.79% to 676 million yuan [5][7]. Market Trends - The frozen baking sector is viewed as a potential growth area, with the market expected to exceed 23 billion yuan by 2025 and a compound annual growth rate of over 25% in recent years [9][10]. - Competitors in the frozen food industry, such as Qianwei and Hai Xin, are also exploring new product categories, indicating a broader trend of seeking growth beyond traditional frozen food offerings [7][9]. Competitive Landscape - Anjii Food has made strategic acquisitions to enhance its presence in the frozen baking market, including a 70% stake in Jiangsu Dingwei and a 100% stake in Dingyifeng, totaling an investment of 444.5 million yuan [7][9]. - The competitive environment in the frozen baking sector is intensifying, with other companies also launching baking brands and experiencing varying growth rates, highlighting the need for Anjii to leverage its past successes to strengthen its market position [10][11].

Group 1 - The company, Anjii Food Group Co., Ltd., has reduced the registered capital of its subsidiary, Honghu Anjii Food Co., Ltd., from RMB 670 million to RMB 520 million, a total reduction of RMB 150 million [2] - The capital reduction only affects the unpaid registered capital portion, and the shareholding ratio of all shareholders remains unchanged [2] - The capital reduction does not constitute a related party transaction or a major asset restructuring, and it falls within the approval authority of the company's chairman, thus does not require board or shareholder approval [2] Group 2 - Honghu Anjii Food Co., Ltd. was established on March 15, 2022, with a registered capital of RMB 520 million and is located in Hubei Province [3] - The company operates in food production, sales, and related activities, with a focus on pre-prepared dishes as part of its investment project [3] - The capital reduction will not affect the existing asset status or normal operations of Honghu Anjii, nor will it impact the company's consolidated financial statements or current profits significantly [4]

Core Viewpoint - Guangzhou Restaurant Group (603043.SH) primarily engages in food manufacturing and catering services, with a focus on products such as mooncakes, frozen foods, prepared dishes, and Cantonese sausages, and does not currently produce alcoholic beverages [1] Summary by Category Business Operations - The company's main business segments include food manufacturing and catering services [1] - Key products in food manufacturing consist of mooncake series, frozen foods, prepared dishes, and Cantonese sausages [1] Product Offerings - The company has not yet ventured into the production of alcoholic beverages [1]

Core Insights - Huifa Food showcased its innovative products and brand strength at the 24th Malaysia International Food and Beverage Trade Exhibition (MIFB) held from July 30 to August 1, 2025, in Kuala Lumpur, highlighting the company's vitality in the Southeast Asian market [1][2] Group 1: Event Participation - The MIFB has a successful 23-year history and serves as a significant hub for the global food and beverage industry, attracting international attention [1] - Huifa Food presented core products such as hot pot balls, cooking oils, and prepared dishes through an engaging display and interactive experience, emphasizing the brand philosophy of "health and safety, quality first" [1] Group 2: Market Opportunities - The Southeast Asian market is emerging as a new growth engine for the global food industry, showcasing substantial development potential [2] - Huifa Food established deep connections with quality distributors in Malaysia, Singapore, and Thailand, gaining insights into regional consumer trends and competitive landscapes, which will inform future product development and market strategies [2] Group 3: Global Strategy - The company aims to deepen its global presence through continuous innovation and channel optimization, bringing high-quality products to consumers worldwide while promoting Chinese culinary culture [2] - This dual approach of cultural exchange and business collaboration is expected to enhance the company's competitiveness and provide a practical path for the globalization of the Chinese food industry [2]

Core Viewpoint - Sanquan Foods plans to invest AUD 280 million to establish a production base in Australia, marking its first overseas investment to expand its international market presence and enhance competitiveness in response to increasing domestic and international competition [4][5][7]. Investment Details - The investment will be used for setting up and operating overseas companies, purchasing fixed assets, infrastructure renovation, marketing system development, and working capital [4]. - The overseas factory will focus on frozen food production, and the project has not yet commenced operations [5]. Market Context - The international Chinese cuisine market is projected to exceed USD 260 billion by 2024, with a compound annual growth rate (CAGR) of 12%, indicating significant growth potential [7]. - Sanquan Foods aims to leverage the high consumption capacity and lower competition in the Australian market to expand into New Zealand and Southeast Asia [7][8]. Financial Performance - Sanquan Foods has experienced a decline in revenue and net profit for two consecutive years, with revenues of CNY 7.056 billion and CNY 6.632 billion for 2023 and 2024, respectively, reflecting year-on-year decreases of 5.09% and 6.00% [12]. - The company reported a net profit of CNY 749 million and CNY 542 million for the same years, with declines of 6.55% and 27.64% [12]. Strategic Goals - The overseas investment is seen as a strategic move to enhance the company's market competitiveness and create a new growth engine amid increasing domestic competition [9][12]. - Sanquan Foods is also entering the prepared food sector, with plans to launch more products in this category, responding to the growing market for prepared dishes in China [11].

Fundraising Overview - The company raised a total of 5,674,555,941.76 CNY through a non-public offering of 48,884,872 shares at a price of 116.08 CNY per share, with a net amount of 5,634,574,077.18 CNY after deducting issuance costs [1][2] Fund Management - The company has established a three-party supervision agreement for the management of the raised funds, ensuring compliance with relevant regulations and protecting investor rights [2][3] Account Status - As of the announcement date, several fundraising special accounts are still active, while some accounts have been closed, including those at China Bank and China Minsheng Bank [3][4] Fund Utilization and Efficiency - The company has effectively managed idle funds to generate investment income and interest, while maintaining project quality and controlling costs [5][6] Account Closure - The company has completed the closure of specific fundraising accounts and transferred the remaining balance of 212,920.93 CNY to another account for ongoing projects [6][7]