LIHUA(SZ:300761)2022-11-17 14:12Group 1: Market Trends and Pricing - The price of yellow feather chickens has been on the rise since the second quarter of 2022, with an average price reaching 7 RMB per kilogram in June [2] - The market for yellow feather chickens was previously depressed due to factors such as industry capacity expansion in 2019, the impact of COVID-19 in 2020, and low pig prices in 2021 [2][3] Group 2: Cost Structure and Management - Feed costs typically account for over 70% of the total breeding costs for yellow feather chickens, with other costs including vaccines, farming expenses, and management fees [3] - The company is focusing on technological advancements in breeding, animal health, feed formulation, and environmental control to mitigate the pressure from rising raw material costs [3] Group 3: Business Development and Future Plans - In the first half of 2022, the company sold approximately 188 million yellow feather chickens, marking a year-on-year increase of about 4% [3] - The company plans to enhance its market presence in Central, Southern, and Southwestern China while maintaining its market share in Eastern China [3] - The company aims to complete 40 to 50 million units of yellow feather chicken slaughtering capacity this year and is developing semi-finished and prepared dishes to extend its industry chain [3] Group 4: Swine Farming Sector - Since the second quarter of 2022, key production indicators in the pig farming sector have improved significantly, with a notable reduction in costs [3] - The company sold around 100,000 commercial pigs in the second quarter, with plans for continued growth in the second half of the year based on market trends [3]