JOYVIO FOOD(SZ:300268)2022-11-17 14:56Group 1: Business Focus and Market Potential - The company has chosen salmon as a key business development direction due to its significant market size, with global fisheries and aquaculture sales reaching $406 billion in 2020, and salmon accounting for 18% of global seafood exports valued at $151 billion [2] - The upstream farming segment of salmon is characterized by resource scarcity and increasing supply constraints due to limited farming regions and licensing restrictions [2] - Salmon is recognized as a high-value protein source, making it the most valuable category in global seafood [2] Group 2: Harvest and Production - In Q1 2022, the company harvested 19,840 tons of salmon (WFE), with an expected harvest of 18,163 tons in Q2, and a total forecast of 91,142 tons for the year [3] - The company aims to expand its product matrix and increase the proportion of value-added products to enhance overall profitability [3] Group 3: Consumer Market and Brand Development - The company has launched a high-nutrition food brand "Chuan Xiong Tong Xue" targeting children, and is exploring the 3R prepared food sector [3] - In the domestic market, the company collaborates with major supermarkets and e-commerce platforms to promote its salmon products, while also launching the "Southring" global brand in overseas markets [3] - The Asian salmon consumption market, particularly in China, shows high growth potential, with imports of Atlantic salmon reaching 90,800 tons in 2019 and a compound annual growth rate of 35.5% from 2017 to 2019 [4] Group 4: Competitive Advantage and Brand Strategy - The company leverages the successful experience of its parent company, Jiawo Group, in brand development, particularly with "Jiawo Blueberry," to enhance the brand strategy for "Jiawo Salmon" [4] - The consumer profiles for "Jiawo Blueberry" and "Jiawo Salmon" overlap, targeting mid-to-high-end consumers through new retail channels and online platforms [4] Group 5: Valuation and Financial Reporting - The fair value of biological assets, such as Atlantic salmon, is estimated based on market prices when harvested weight reaches 4 kg or more, with adjustments for estimated selling prices and costs [5] - The company evaluates the fair value of salmon biological assets at each reporting period, with changes in fair value recognized in the current profit and loss [5]