WENS FOODSTUFF GROUP CO.(300498)2025-03-04 07:10Group 1: Business Operations - The company has a complete breeding system and does not require large-scale external purchases of breeding pigs, ensuring self-sufficiency in sows [1] - The company maintains its core breeding assets internally to ensure quality and stability, avoiding outsourcing to partner farmers [1] - The current breeding farm capacity is approximately 46 million heads, with a fattening capacity of about 38 million heads [4] Group 2: Cost Management - The comprehensive cost of pig farming decreased from approximately 8.3-8.4 RMB/kg in 2023 to 7.2 RMB/kg in 2024, a reduction of about 1.2 RMB/kg, with market factors accounting for 40% and non-market factors for 60% [2] - The target for the average comprehensive cost of pig farming in 2025 is set at no more than 6.5 RMB/kg, assuming stable feed raw material prices [3] Group 3: Production and Sales - In 2024, the distribution of pig sales by region is as follows: Southern Division (47%), Eastern-Central Division (26%), Western-Northern Division (25%), and other independent units (2%) [5] - The company aims to balance pig weights according to local consumer preferences [6] Group 4: Industry Outlook - The company anticipates that the cost competition in the pig farming industry will increasingly depend on refined management, technological innovation, and efficiency improvements [7] - The future trend of the pig farming industry is expected to move towards centralization, scale, automation, and intelligence [8] Group 5: Financial Management - The company has implemented 13 cash dividend distributions totaling 26.8 billion RMB since its listing in 2015, with a cash dividend rate exceeding 40% in profitable years [13] - The company issued approximately 9.3 billion RMB in convertible bonds in March 2021, with about 7.7 billion RMB remaining unconverted [14] Group 6: Strategic Partnerships - The company has formed a strategic partnership with Anyou Group, a leading player in the feed industry, to enhance collaboration in feed supply and animal nutrition [17]