Securities code: Muyuan Foods Co.Ltd(002714) securities abbreviation: Muyuan Foods Co.Ltd(002714) Muyuan Foods Co.Ltd(002714)
Record of investor relations activities
No.: 202210
Investor relations activity category □ specific object research □ analyst meeting
□ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
Others (2021 annual general meeting of shareholders)
Names of participating units and personnel Luo Weidong, he Xinke, Yao Zhongna, Xu Ke, Zhang Ming, Xia Mingchao, Liu Shitong, Liu Yifan, Yin Quanming, Gan Shibin, Wu Weijie, ye junxu, etc
Time: May 20, 2022
Place: company conference room
Name of receptionist of Listed Company Qin Yinglin, chairman and President
Cao Zhinian, vice chairman, executive vice president and financial director
Secretary of the board of directors Qin Jun
Su danglin, chairman of the board of supervisors
Xu shaotao, general manager of muyuan meat
Zhang Yuliang, chief intelligence officer, etc
Main contents of the talks
1、 How to determine the company’s marketing goal in 2022? The reason for the increase at the bottom of the cycle?
Due to the growth cycle of pigs, it takes 10-11 months from the beginning of breeding sows to the completion of fattening of their corresponding piglets. At present, the company can breed sows for about 120 days of pregnancy, and the age of commercial pigs is about 190 days. Therefore, there is a matching relationship between the slaughter volume of the company in the current year and the pig breeding capacity, the number of basic sows and breeding volume of the previous year. The rapid growth of the company’s slaughter volume since the fourth quarter of 2021 is directly related to the rapid growth of fertile sows in the second half of 2020. Based on the production capacity of pig breeding in 2021, the number of basic sows and breeding quantity, the company makes an estimate of 50-56 million pigs in 2022.
2、 Current cash flow of the company?
At present, the company’s operating cash flow is basically in balance. Since March, with the recovery of pig price, the operating cash flow of the company has a slight surplus. The company expects that the pig price in the second half of the year is higher than that in the first half of the year, and the company’s liquidity will continue to improve. At the current stage, the company will still strictly control new projects under construction, and continue to strengthen communication with cooperative financial institutions to enhance mutual trust, ensure the smooth development of financing business, ensure capital safety and stable operation.
3、 Development and operation of slaughtering business?
The company actively implemented the national policy transformation from “transporting pigs” to “transporting meat”, accelerated the construction of slaughtering capacity in the main breeding areas, and provided consumers with more high-quality pork food.
In terms of slaughtering capacity, at present, the company has put into operation 8 slaughterhouses, with a production capacity of 22 million units / year. It is estimated that three new slaughterhouses will be put into operation this year, with a new production capacity of 9 million units / year; At the same time, four new slaughterhouses have been started this year, with a new capacity of 8 million units / year.
In terms of operation, since 2022, the slaughtering meat sector has lost about 300 million and slaughtered 2.8 million pigs. At present, the daily slaughtering capacity of the slaughtering meat sector is about 66000, and the slaughtering volume target this year is more than 10 million. The company strives to achieve a comprehensive profit and loss balance in the slaughtering meat sector in the third quarter and a slight surplus in the fourth quarter.
At present, the key point to improve the profitability of slaughtering meat sector is on the sales side. At present, the sales of slaughtered meat are distributed in more than 70 cities, with farmers’ customers accounting for 70%, supermarkets’ customers accounting for 15%, catering and food processing enterprises and major customers accounting for 15%.
Based on the characteristics of high turnover and low gross profit of slaughtering meat business, next, slaughtering meat business will focus on improving sales capacity, operation capacity, product quality and customer satisfaction, deeply solve everything and continuously improve business performance.
4、 Cost target and achievement path in 2022?
At present, the total breeding cost of the company is close to 16 yuan / kg. Considering the impact of external factors such as the rapid rise of raw material prices, the cost target of the company in 2022 is to achieve the total breeding cost of 14.5 yuan / kg in stages. The space for cost reduction will mainly come from the improvement of production performance. Focus on breeding links with greater optimization space, such as conservation and fattening. The company will continue to sort out management problems and strengthen the implementation and implementation of technical standards and measures for front-line production; Implement more strict management assessment, improve personnel ability, optimize the matching degree of personnel and posts, realize management optimization, and solve the problem of rising costs caused by rapid development.
Annex list of major information that should not be disclosed in this activity (if any)
Date: May 21, 2022
