Group 1 - The latest stock price of Huatong Co., Ltd. is 10.73 yuan, an increase of 1.04% compared to the previous trading day [1] - The stock reached a maximum of 10.74 yuan and a minimum of 10.56 yuan during the trading session, with a transaction amount of 1.07 billion yuan [1] - Huatong Co., Ltd. is primarily engaged in livestock slaughtering and meat processing, with main products including fresh pork and frozen pork [1] Group 2 - The company operates in the food manufacturing industry, covering the entire industry chain from pig farming to slaughtering and deep processing of meat products [1] - The current capacity utilization rate of the slaughtering business is maintained at 30%-40%, with stable profitability in this segment [1] - The company's asset-liability ratio has significantly decreased within the year, with specific operational data to be disclosed in future announcements [1]

Group 1 - The stock price of Huatong Co., Ltd. was reported at 10.57 yuan on August 8, remaining unchanged from the previous trading day [1] - The trading volume on that day was 56,517 hands, with a transaction amount of 0.6 billion yuan [1] - Huatong Co., Ltd. is primarily engaged in livestock slaughtering and processing, as well as deep processing of meat products, with main products including fresh pork and fresh poultry [1] Group 2 - The company stated on its investor interaction platform that the breeding costs continued to decline in the second quarter [1] - On August 8, the net outflow of main funds was 6.1496 million yuan, with a cumulative net outflow of 8.4930 million yuan over the past five days [1]

Group 1 - The core announcement is about the procurement results for the employee cafeteria food project at China Merchants Bank, specifically for fresh pork [1][2]. - The procurement method used was competitive negotiation [2]. - The selected suppliers for the project include Tianhong Shuke Commercial Co., Ltd. and Shenzhen Nongchuan Meiyi Meat Industry Co., Ltd. [3]. Group 2 - The procurement project is identified as the "Head Office Employee Cafeteria Food Project" with a specific focus on fresh pork [1]. - A total of 12 suppliers responded to the procurement request, indicating a competitive bidding environment [2]. - The announcement was made by the Procurement Management Department of China Merchants Bank on August 2, 2025 [4].

Core Insights - The monitoring report from June 16 to June 20, 2025, indicates that the supply of essential consumer goods in Hunan Province is sufficient, with overall market prices remaining stable [4][5]. Price Stability in Grains and Oils - The average prices for early indica rice, late indica rice, and japonica rice remain stable at 2.28 yuan, 2.63 yuan, and 2.85 yuan per 500 grams respectively [4]. - The prices of edible oils show minor fluctuations, with peanut oil and soybean oil experiencing slight declines, while rapeseed oil sees a slight increase [4]. Trends in Pork Prices - Prices for live pigs and piglets continue to decline, with average market prices at 14.52 yuan per kilogram and 25.44 yuan per 500 grams, reflecting decreases of 0.89% and 0.70% respectively [5]. - Fresh pork prices (lean meat) have seen a slight increase of 0.15%, reaching 13.59 yuan per 500 grams, but compared to the same period last year, live pig prices have dropped by 22.06% [5]. Fluctuations in Beef, Lamb, and Poultry Prices - The average market prices for fresh beef (boneless) and fresh lamb (bone-in) are 38.86 yuan and 32.57 yuan per 500 grams, showing increases of 0.18% and decreases of 0.28% respectively [6]. - Chicken and egg prices have slightly decreased, with chicken priced at 13.17 yuan and eggs at 6.18 yuan per 500 grams, reflecting changes of -0.08% and -0.32% respectively [6]. Vegetable and Fruit Price Trends - Among the monitored vegetables, only white radish prices increased by 2.58%, while cucumber, eggplant, tomato, and pumpkin prices generally fell, with eggplant experiencing the largest drop of 9.93% [7]. - In the fruit category, apple prices saw a minor increase of 0.15%, while banana and watermelon prices decreased by 1.28% and 8.51% respectively [7].

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached $6.554 billion, a 6% increase year over year [3] - EBITDA was $786 million, reflecting a 16.6% increase compared to the previous year [3] - Operating profit stood at $598 million, up 19.4% year over year [3] - Profit attributable to owners was $364 million, a 20.9% increase from last year [3] - Basic earnings per share were $2.84, also a 20.9% increase year over year [3] Business Line Data and Key Metrics Changes - Packaged meats accounted for 49.5% of total revenue and 83.8% of operating profit in Q1 2025 [4] - The pork business contributed 42.9% of revenue and 21.9% of operating profit [4] - Other businesses contributed 7.6% of revenue but incurred a loss of $34 million [4] - In North America, operating profits increased by 72.8% to $330 million [9] - In China, operating profit was $250 million, down 14.3% year over year [8] Market Data and Key Metrics Changes - In China, the average hog price was RMB 15.99 per kilogram, up 7.3% year over year [6] - In the U.S., the average hog price was $1.44 per kilogram, up 14.1% year over year [6] - In Europe, the average hog price was $1.40 per kilogram, down 11.8% year over year [7] - The number of slaughter hogs in China increased by 0.1% year over year to 195 million heads [6] Company Strategy and Development Direction - The company aims to consolidate global resources, improve product mix, adjust pricing, and control costs [10] - Key business priorities include improving the pork business, expanding market networks, and optimizing the business portfolio [11] - The focus remains on industrialization, diversification, internalization, and digitalization to enhance market position [10] Management Comments on Operating Environment and Future Outlook - Management noted that consumer demand remains soft, impacting the packaged meat business [12] - The company is implementing eight measures to return the packaged meat business to growth, including specialized sales forces and enhanced marketing efforts [14][16] - Management expects the second quarter to show recovery in packaged meat volume and profit [16] Other Important Information - The hog production business is seen as a supporting business rather than a core focus, with strategies tailored to local market conditions [42][43] - The company plans to maintain a vertical integration level of 20% to 30% in hog production, focusing on fresh pork and packaged meat as core businesses [65] Q&A Session Summary Question: Reasons for decline in China packaged meat business - Management cited soft consumer demand, destocking by distributors, and slow adaptation to market channel changes as key reasons [12][13] Question: Outlook for packaged meat business in Q2 2025 - Management expects the packaged meat business to stop declining and gradually recover in Q2, with full-year growth anticipated [16] Question: Impact of tariffs on hog prices - Management believes tariffs will have limited short-term impact on hog prices, with supply and demand balance being the primary driver [34][35] Question: Hog production improvement drivers - The improvement in hog production is driven by reduced raising costs and improved KPIs rather than hog prices [21] Question: U.S. pork business outlook - Management expects profitability in the U.S. pork business to improve in Q2 and Q3, aligning with seasonal trends [67]