TRS(SZ:002567)2024-06-19 08:25Group 1: Company Overview and Strategy - The company, Tangrenshen Group Co., Ltd., focuses on the pig farming industry, with a long-term goal of reaching an annual output of 1 million pigs [2] - The main production areas are concentrated in Hunan, Guangdong, and Guangxi, with additional capacity in Henan, Hebei, Gansu, and Yunnan [2] Group 2: Production and Sales Structure - The expected structure of pig sales for 2024 is approximately 40% piglets, 10-20% other categories, and 60% fat pigs [2] - The company plans to maintain a production rhythm with a focus on fat pigs in both the first and second halves of the year [2] Group 3: Capital Expenditure and Expansion Plans - Future expansion will focus on a "company + farmer" model, emphasizing low-cost fattening systems with farmers raising 1,000-3,000 pigs [3] - Current capital expenditure needs are minimal as the existing production capacity meets the planned output for the year [2] Group 4: Cost Reduction Measures - Key measures to reduce breeding costs include optimizing the breeding system, improving production indicators, and leveraging scale purchasing advantages to lower feed costs [3] - The company has seen a gradual decrease in breeding costs due to improved production capacity utilization and declining raw material prices [3] Group 5: Risk Management and Futures Trading - The company has been engaged in futures hedging for a considerable time, focusing on commodities related to its production, such as corn, soybean meal, and live pigs [3] - The purpose of the hedging activities is to mitigate price risks associated with production and operations [3]