神农集团20250312

Summary of Shennong Group Conference Call Company Overview - Company: Shennong Group - Date: March 12, 2025 Key Points Industry and Cost Management - In February, Shennong Group's total cost decreased to 12.4 CNY/kg, benefiting from a decline in feed costs, piglet costs, and other expenses, reflecting the results of reforms over the past one to two years, laying the foundation for an annual average cost target below 13 CNY/kg [2][3] - The company optimized supply chain management and utilized low-priced raw materials procured in the second half of the previous year to effectively counter the current rise in raw material prices, planning to further reduce feed costs by increasing feed mill capacity utilization [2][3] Production and Operational Efficiency - Shennong Group implemented a top-level design and standardized production operations, adopting a two-point production model, optimizing organizational structure, and upgrading hardware facilities, significantly improving efficiency metrics [2][6] - In February, the survival rate from weaning to market increased by 1% year-on-year, and the time required to reach 123 kg from weaning was shortened by 5-7 days to 148 days, indicating significant improvements in health management and genetic index [2][7][8] Organizational Management - The company enhanced systematic management between upstream breeding farms and downstream fattening farms, achieving efficient operations and innovating assessment mechanisms to align cost and quality goals across the supply chain [2][9][10] Future Projections - Shennong Group expects to exceed 3.2 million heads in market volume in 2025, approximately 4.5 million in 2026, and over 5 million in 2027, with a long-term goal of reaching 10 million heads by 2030 [4][15][16] - The average total cost target for 2025 is set below 13 CNY/kg, with aspirations to achieve 12.5 CNY/kg if feed raw material prices remain stable [14] Supply Chain and Procurement Strategy - The company has narrowed the gap in raw material procurement with leading enterprises due to scale enhancement and the maturity of its futures department, which is expected to further exploit advantages as market volume reaches 4-5 million heads [4][12] - The futures team, established in 2024, successfully locked in low prices for soybean meal, significantly improving procurement results compared to 2023 [18] Talent Development - Shennong Group places high importance on the cultivation of its leadership team and reserve talent, aligning with both domestic and international best practices to ensure effective execution of top-level design and strategy [13] Financial and Investment Updates - The total amount of funds raised through private placement is 290 million CNY, aimed at new pig farms, renovations, information technology projects, and working capital [19] Energy Costs and Market Position - Current energy costs have decreased to 12.4 CNY/kg, with ongoing efforts in top-level design and health management to maintain steady growth, positioning Shennong Group as a rare growth opportunity in the industry [21]