Summary of the Conference Call for LuSi Co., Ltd. Company Overview - Company: LuSi Co., Ltd. - Date: October 28, 2025 Key Points Financial Performance - Net Profit: For the first three quarters, net profit decreased by 33.8% to 16.32 million yuan [2][3] - Revenue: Total revenue for the first three quarters was 618 million yuan, a year-on-year increase of 7.6% [3] - Quarterly Performance: In Q3 alone, revenue was 228 million yuan, up 1.8%, while net profit was 16.32 million yuan, down 33.8% [3] Product Revenue and Growth - Main Grain Products: Revenue reached approximately 86.3 million yuan, a growth of 30.6% [4] - Canned Products: Revenue increased by 44% to 55 million yuan [4] - Meat Jerky: Revenue remained stable at around 360 million yuan [4] - Meat Powder: Revenue was 83.6 million yuan, with a slight increase of 1.1% [4] - Pet Food: Domestic sales reached approximately 144 million yuan, with online direct sales contributing about 60 million yuan, accounting for 41.7% of total revenue [4][18] Market Dynamics - Domestic Market: The domestic main grain business is expected to reach 100 to 130 million yuan for the year, with a planned growth of around 50% next year [2][6] - Export Performance: Exports of main grain products were close to 17 million yuan, showing a growth of over 50% [2][6] - Price Fluctuations: The meat powder business experienced significant price drops, with Q3 prices averaging 6.90 yuan per kg compared to 7.64 yuan per kg last year [11] Regional Market Insights - Germany: Orders remained stable, but revenue declined due to changes in product structure, with average prices dropping from 54.56 yuan to 52.78 yuan [13] - Russia: Strong performance with revenue exceeding 71 million yuan, showing significant growth and higher gross margins than overall export levels [14] - United States: Strong demand, with exports reaching over 58 million yuan, but impacted by tariffs due to production shifts to Cambodia [15] Operational Challenges - Cambodia Factory: Currently operating at a loss due to high raw material costs, which account for 70-80% of total costs. The factory needs to reach 50-60 million yuan in revenue to break even [16] - Production Capacity: Plans to expand production capacity once utilization reaches 80% [17] Future Outlook - Meat Powder Focus: The company anticipates no significant growth in meat powder revenue by 2026, shifting focus towards pet food [11] - Gross Margin Trends: Q3 gross margins declined due to export and domestic sales pressures, but improvements are expected in the main grain segment [20] Additional Insights - Brand Development: The Miaoguan brand achieved sales of 5-6 million yuan, targeting a young, price-sensitive demographic [8] - Sales Channels: Online sales are significant, with a notable contribution from platforms like Tmall and JD, while offline sales rely heavily on city agents [18] This summary encapsulates the key financial metrics, product performance, market dynamics, operational challenges, and future outlook for LuSi Co., Ltd.
路斯股份20251028