LIHUA(SZ:300761)2022-12-04 09:36Group 1: Company Overview - Jiangsu Lihua Animal Husbandry Co., Ltd. focuses on breeding, animal nutrition, disease prevention, and feeding technology while enhancing its competitiveness in the breeding sector [1][2] - The company is shifting its focus towards improving the processing capabilities of yellow feather chickens and expanding distribution channels [2] Group 2: Financial Performance - In the first half of 2020, the company achieved revenue of CNY 3.334 billion, a decrease of 7.14% compared to CNY 3.590 billion in the same period last year [2] - The net profit attributable to shareholders was CNY 278 million, down 164% year-on-year, primarily due to a 15% drop in yellow feather chicken prices and a provision of CNY 140 million for inventory write-downs [2] Group 3: Production and Capacity - Yellow feather chicken output increased by 5.26% year-on-year in the first half of 2020, with a target growth rate of 5%-10% annually for the coming years [2][3] - The company has established a pig farming capacity of 1 million heads per year and currently has over 30,000 breeding sows [4] Group 4: Market Strategy and Future Plans - The current sales proportion of fresh chicken is around 5%, with expectations to reach 50% within the next 3-5 years [3] - The company is exploring self-operated fresh food stores to understand consumer needs and improve product offerings [3] - Plans to establish more fresh chicken processing plants are underway to match production capacity with market demand [3] Group 5: Employee Incentives - The company emphasizes talent development through self-training and external recruitment, with existing employee stock ownership plans for middle management [4]