NEW HOPE(SZ:000876)2022-12-05 01:10Group 1: Company Overview - The Xiajin Pig Farm project began in 2012, covering an area of 2,890 acres, with the first phase starting production in June 2014, which included a 300 boar station and a 2,500 grandparent stock farm [3] - The second phase started in 2015, adding two more 5,000-head parent stock farms, currently achieving a breeding scale of 17,500 sows and an annual output of 420,000 pigs [3] Group 2: Production Models - The company operates two models: the "New Good" model relies on self-bred piglets, while the "New Six" model sources piglets from external suppliers due to initial production capacity constraints [4] - The output ratio between the "New Good" and "New Six" models is approximately 3:2, with plans to build self-breeding farms under the "New Six" model in the long term [4] Group 3: Performance Metrics - The average PSY (Pigs per Sow per Year) for the company was 26.8, while the Xiajin Pig Farm achieved over 30, attributed to superior breed quality, environment, and breeding technology [5] - The feed-to-meat ratio improved from 2.4 in January to 2.3 by June, indicating a competitive edge in the industry [6] Group 4: Cost Efficiency - The cost per kilogram of pork at Xiajin Pig Farm was 11.9 RMB, which includes costs from new, unproductive capacity and feed profit assessments [6] - The company’s workforce is highly educated, with 70% under 30 years old and 70% holding at least a college degree, leading to significant labor cost savings and efficiency improvements [8] Group 5: Collaboration with Farmers - The company collaborates with farmers by providing feed, technical support, and management, with each farmer earning around 200 RMB per pig, which is more profitable than previous arrangements [9] - There are no credit issues in farmer collaborations, as farmers must have proper facilities and pay a deposit of 200 RMB per pig [10] Group 6: Future Strategies - The company plans to balance self-breeding and external sourcing based on market conditions, having established a capacity of 9 million pigs nationwide in the previous year [11] - Supply chain financial considerations are being explored at various levels, including factoring companies and other financial services [12]