Securities code: 002714 securities abbreviation: Muyuan Foods Co.Ltd(002714) Muyuan Foods Co.Ltd(002714) investor relations activity record No.: 2022-02 important note: the list of participants is provided by the research institution. Due to the large number of research objects, the company cannot guarantee the integrity and accuracy of the participating units and personnel, so investors are reminded to pay special attention. Category of investor relations activities □ research on specific objects □ analyst meeting □ media interview □ performance presentation meeting □ press conference □ roadshow activities □ on-site visit √ name of other participating units and personnel Zhongtai Securities Co.Ltd(600918) Yan Jin Anxin fund Zhang mingboshi fund Messrs. Oriental harbor, Ren renxiong, Oriental marathon, Wang Panfeng Liu Yongqiao Fuguo fund Xu Zheqi, Gao Yi asset Huang Fan, Zhang Xuechuan SDIC UBS fund Zhou Hongcheng, Hua’an fund Wang xuran, Wang Chun Huaxia Fund Yang Yazhao, South Fund Li Huipeng, Ping An fund Zhu Chunyu, Qianhai open source fund Xu Liping, Tian weiqushi asset Zhang Xiuqi, Liu Zhichao Tianhong fund, Liu Zhichao Xingquan fund, Zhai Xiuhua, YONGYING fund, Yang Jiandong An Huili Zhaoyin financial management Zhang Xuxin Zhengxin Gu Mao Yifan, asset management of CITIC Prudential Wanli, Zhang Zhanhua of CITIC Capital, Zhao Wei, Qi Zheng of China Post Fund, etc. on February 17, 2022, place, company conference room (teleconference) name of receptionist of listed company, Secretary of the board of directors Qin Jun, director of Investor Relations MA Liancheng, main contents of the meeting I. Introduction to the recent operation of the company Operation in 2021, the company sold a total of 40.263 million pigs, including 36.887 million commercial pigs, 3.095 million piglets and 281000 breeding pigs. The slaughter volume of pigs increased significantly compared with the same period last year. The company expects an operating revenue of 77-80 billion yuan and a net profit of 7-8.5 billion yuan in 2021. In terms of breeding, by the end of 2021, the company had built a breeding capacity of more than 70 million pigs, and the number of sows capable of breeding was 2.831 million. The company’s pig production business was carried out in an orderly manner, and the promotion of personnel ability and excellent breeding achievements continued. At the same time, further improving the breeding performance and reducing the breeding cost is still one of the key points of the company’s production and operation in 2022. In terms of slaughtering, Yingshang, Caoxian, Shangshui, Tieling and other slaughterhouses were put into trial operation before the Spring Festival. At present, the slaughtering capacity of the company is 22 million units / year. In 2021, 2.8973 million pigs were slaughtered, and the capacity utilization rate was about 70%. From the operation in January 2022, the overall capacity utilization rate is high. 2、 Non public offering and restricted stock incentive plan in 2022. The non-public offering of shares continues to advance as expected. At present, the notice of feedback on the examination of administrative licensing projects of CSRC has been received, and the company will promote relevant work in accordance with normal procedures. The draft of the restricted stock incentive plan in 2022 has been published, and it is expected that there will be more than 6000 incentive objects. The company is making steady progress in accordance with relevant business processes, and it is expected to complete the grant and registration of the first incentive part in the near future. Q & a session 1. Views on the trend of pig price and how to deal with the continuous downturn of pig price. After the Spring Festival, it is in the off-season of consumption. The overall pig price is low, and it is expected that the pig price will improve slightly in the second half of the year. Since last year, the company has taken relevant measures to cope with the decline in pig prices, mainly adjusting the pace of project construction. At the same time, continuously optimize the internal management level to improve the breeding performance of the company. 2、 The company’s current situation and future trend of Psy and MSY pigs. At present, the company’s psy is about 24 and MSY is about 20. By the end of December 2021, the company has 2.831 million sows that can be bred. It is estimated that the number of sows that can be bred in 2022 will increase slightly compared with that in 2021. 3、 The current cost of the company and the cost target in 2022. How to reduce the cost? The current cost of the company is about 15 yuan / kg. The company aims to achieve a complete cost of 13 yuan / kg in 2022. In the next step, the company will reduce the dispersion of breeding achievements within the company and reduce the overall breeding cost by improving the operation of high-cost backward farms and subsidiaries, strengthening internal management and personnel empowerment training and other measures. 4、 Profit situation and future planning of the company’s slaughtering business the slaughtering sector of the company will not make a profit in 2021, mainly due to the high preliminary expenses for the construction and operation of multiple slaughterhouses in 2021 and the losses caused by the decline of the market. At present, the slaughtered products are mainly white striped meat and split meat, of which white striped meat accounts for a relatively high proportion. The company carries out slaughtering layout according to the idea of supporting the construction of slaughterhouses in areas with intensive breeding capacity. At present, the slaughtered pigs are self bred pigs in the pig breeding sector of the company. At present, the company has no specific profit target in the slaughtering business segment. The company will support the company’s slaughtering business to achieve profitability in 2022 by improving capacity utilization, expanding sales channels, optimizing sales structure, reducing production costs and other measures. 5、 Whether the company plans to redeem convertible bonds. At present, the company has no plan to redeem convertible bonds. 6、 At present, how much is the company’s monthly cash outflow? According to the company’s current business scale, the monthly operating expenditure is 6-6.5 billion yuan, mainly including procurement expenditure, salary expenditure and other expenses. At present, the company has no new investment in fixed assets, and only a few projects are under construction. If the pig price and business environment improve significantly in the future, the company will consider whether to expand production. 7、 Whether the company has carried out raw grain hedging business. At present, the company’s raw grain hedging business is small in scale and accounts for a low proportion in the overall purchase quantity. At the same time, the company will assist in managing price risk through off-site tools such as forward contracts to reduce the impact of rising raw grain prices on the company’s costs. This activity does not involve the list of major information annexes that should be disclosed (if any) date: February 19, 2022
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