Haixin Foods (SZ:002702)2022-12-04 09:58Group 1: Financial Performance - The gross profit margin reached a record high in March, driven by a shift towards C-end sales channels, which have higher margins compared to distribution channels [2] - Revenue in March showed a significant year-on-year increase, enhancing the scale effect and improving the gross profit margin [2] - Sales of mid-to-high-end products, particularly fish and premium items, performed well during this period [2] Group 2: Raw Material Costs - Current raw material costs remain high, with chicken and duck prices showing a decline, while pork and fish paste prices remain elevated [3] - The company implemented two rounds of price adjustments in the second half of the previous year, which had a limited impact on 2019 but helped offset raw material cost increases in 2020 [3] Group 3: Impact of COVID-19 - The company began resuming operations on February 12, with a gradual increase in production capacity and monthly improvement in order fulfillment rates [3] - The negative impact of the pandemic was primarily felt in January due to short delivery cycles and supply shortages in February [3] - Sales in agricultural markets saw a slight decline, particularly affecting B-end customers, while C-end sales compensated for this drop [3] - The demand for frozen food significantly increased due to home consumption during the pandemic, leading to a less distinct seasonal fluctuation compared to previous years [3] Group 4: Capacity and Production Strategy - The company currently operates at nearly 90,000 tons of capacity, which is over the limit, and is planning an additional 100,000 tons of fish product capacity in Lianjiang County, Fuzhou [4] - To address the current overcapacity, the company is utilizing OEM strategies and collaborating with qualified processing partners to meet market demand [4] - Product pricing will be dynamically adjusted based on actual sales, raw material price fluctuations, and competitor pricing [4]