Summary of Ximai Foods Conference Call Company Overview - **Company**: Ximai Foods - **Industry**: Oat Products Key Points and Arguments Industry and Market Trends - Benefiting from a bumper harvest of oats in Australia, the average procurement price of oats is expected to decrease by at least 10% year-on-year in 2026, with a continued downward trend anticipated in 2027 [2][3] - The main raw material, imported oats from Australia, constitutes 35%-40% of production costs, which have been under pressure due to rising prices from 2018 to 2024 [3] Financial Performance and Projections - The company expects a stable revenue growth of approximately 20% over the next two to three years, driven by new product iterations and channel expansion [2][5] - A 10% decrease in Australian oat costs is projected to increase the company's gross margin by 2 percentage points [2][3] - The sales expense ratio has been around 30% in recent years but is expected to decline steadily due to scale effects and channel optimization [4] Product Development and Innovation - Continuous optimization of product structure with the introduction of high-end organic oats and composite oats, which have gross margins 8-10 percentage points higher than regular oats [2][3] - Development of high-value products such as gift boxes is contributing positively to gross margins [2] Channel Strategy - The company plans to enhance online and offline channel expense structures starting in 2027, focusing on precise online marketing and adjusting traditional supermarket costs [4][7] - Emphasis on new channels such as Douyin (TikTok), snack wholesale, and O2O (Online to Offline) models to capture market share [5][6] Health and Wellness Segment - The health and wellness segment is identified as a second growth curve, with new products like medicinal food powders and protein powders expected to contribute to mid-term revenue growth [2][10] - The revenue from the health segment is projected to exceed 2 billion yuan in 2026, aiming for 3 to 5 billion yuan in the following three years [10] Management and Strategic Changes - The new general manager has focused on product innovation, channel transformation, and health sector development since taking office in July 2025 [11] - A stock incentive plan was implemented in 2025, requiring a revenue growth of over 15% in the next two years to ensure stability [11] Valuation and Investment Potential - Current valuations do not reflect the potential benefits from cost reductions and growth in the health segment [12] - The company is recommended for investment focus due to expected dual improvements in performance and valuation driven by cost reductions and new channel breakthroughs [12] Additional Important Insights - The company is expected to increase its market share in the oat sector to 30% by 2027-2028, leveraging its leading position and consumer health trends [8][9] - The focus on young consumers and health-conscious demographics is driving product acceptance and market growth [8]

Core Viewpoint - Ximai Food, known as "China's Oatmeal First Stock," has been flagged for non-compliance with microbial standards, following a previous incident of excessive mold levels in 2024, raising concerns about its product safety and quality control measures [1][7]. Group 1: Product Quality Issues - Ximai Food's "Middle-aged Nutritional Oatmeal" was found to have unacceptable total bacterial counts, exceeding the national food safety standards during a recent inspection of 2,136 samples, with 40 samples identified as non-compliant [2][4]. - The specific bacterial counts for the oatmeal samples were recorded as 34,000 CFU/g, 49,000 CFU/g, 18,000 CFU/g, 15,000 CFU/g, and 25,000 CFU/g, all surpassing the allowable limits [2][4]. - The company attributed the quality issues to improper management by a distributor, which has since terminated its partnership with Ximai [1][7]. Group 2: Historical Context and Recurrent Issues - This incident follows a previous case in late 2024 where another product, "High-Calcium Milk Oatmeal," was also flagged for excessive mold, with counts significantly exceeding the safety limit [7][8]. - Ximai has faced multiple quality control issues in the past, including a 2019 incident involving "Oatmeal Walnut Powder" due to mold contamination [8]. - The frequency of these quality problems coincides with Ximai's strategic push into the health market, which may undermine consumer trust and impact sales and partnerships [8]. Group 3: Regulatory and Market Implications - The National Market Supervision Administration indicated that such issues may stem from inadequate control over production and processing hygiene, as well as potential problems with packaging and storage conditions [4]. - As Ximai aims to establish a new growth trajectory focused on health products, the ongoing quality concerns could jeopardize its brand value, which is closely tied to food safety [8].

证券日报网讯1月21日，西麦食品（002956）在互动平台回答投资者提问时表示，截至2026年1月20日， 公司股东户数为10652户。 ...

Group 1 - The market regulatory authority conducted a food safety supervision sampling, testing a total of 2,136 batches, with 40 batches found to be non-compliant [1] - One batch of oatmeal produced by Ximai Food was detected with excessive total bacterial count, failing to meet national food safety standards [1] - The specific product involved is a senior nutrition oatmeal (700g) produced by Hebei Ximai Food Co., Ltd., with a shelf life until June 25, 2024 [1] Group 2 - The local market regulatory departments have initiated investigations and actions regarding the non-compliant food products identified in the sampling [1] - Attempts to contact Ximai Food for further information were unsuccessful, as there was no response to phone inquiries [1]

Group 1 - The core issue is that the State Administration for Market Regulation conducted a food safety inspection, revealing that out of 2,136 samples tested, 40 were found to be non-compliant, including a batch of oatmeal produced by Ximai Food [1] - The specific product in question is a senior nutrition oatmeal produced by Ximai Food, which was found to have excessive total bacterial counts, indicating potential hygiene issues during production [1] - Total bacterial count is an indicator of microbial quality rather than a direct pathogen indicator, reflecting the sanitary conditions during food production [1] Group 2 - The excessive total bacterial count can compromise the nutritional value of the food and accelerate spoilage, which may be attributed to inadequate control of hygiene conditions during production or improper packaging and storage [1] - Provincial market regulatory authorities have initiated investigations and actions regarding the non-compliant food products identified in the inspection [1] - Attempts to contact Ximai Food for further information regarding the non-compliance and subsequent actions were unsuccessful, as no one answered the provided contact number [1]

Core Viewpoint - A batch of Ximai Foods' senior nutrition oatmeal was found to exceed the total bacterial count limit, resulting in it being classified as an unqualified product by the State Administration for Market Regulation [2] Group 1: Product Quality Issue - The affected batch of oatmeal was produced by Ximai Foods Group in Guilin, Guangxi, and manufactured by Hebei Ximai Foods Co., Ltd., with a production date of June 25, 2024, and a shelf life of 18 months [2] - Ximai Foods has stated that the issue arose in the distribution channel rather than at the production level, and the company has cooperated with local regulatory authorities to address the situation [2] Group 2: Company Performance - Ximai Foods, established in 1994 and listed on the Shenzhen Stock Exchange in 2019, is recognized as the "first stock of oatmeal" [2] - The latest financial report indicates that for the first three quarters of 2025, the company's revenue increased by 18.34% year-on-year to 1.696 billion yuan, while the net profit attributable to shareholders rose by 21.90% to 132 million yuan [2]

Group 1 - The leisure food sector increased by 1.54% on January 20, with Wancheng Group leading the gains [1] - The Shanghai Composite Index closed at 4113.65, down 0.01%, while the Shenzhen Component Index closed at 14155.63, down 0.97% [1] - Key stocks in the leisure food sector showed significant price movements, with Wancheng Group rising by 6.04% to a closing price of 212.00 [1] Group 2 - The leisure food sector experienced a net outflow of 60.30 million yuan from institutional investors, while retail investors saw a net inflow of 75.82 million yuan [2] - Notable declines were observed in stocks such as Three Squirrels, which fell by 2.07% to a closing price of 24.58 [2] - The trading volume and turnover for various stocks in the sector varied, with significant activity noted in stocks like Haoxiangni and Ximai Food [2] Group 3 - Haoxiangni had a net inflow of 79.89 million yuan from institutional investors, while it faced a net outflow of 78.76 million yuan from retail investors [3] - Ximai Food also saw a net inflow of 10.14 million yuan from institutional investors, with retail investors experiencing a net outflow [3] - The data indicates varying levels of investor interest across different stocks within the leisure food sector, highlighting the dynamics of institutional versus retail investment [3]

Group 1 - The report highlights the "Spring Excitement" in the snack sector, indicating a historical high relative win rate of 70% for the food and beverage sector in the 40 days leading up to the Spring Festival [7][16] - The report emphasizes that the "Spring Excitement" is not solely dependent on the annual beta of the food and beverage sector, as structural opportunities still exist despite a long-term adjustment period since 2021 [7][16] - Key catalysts for the upcoming Spring Festival include concentrated demand for gifts and gatherings, which leads to more planned channel stocking, creating a positive feedback loop of expectations and validations [7][16][28] Group 2 - In December, the food and beverage sector underperformed the market by 7.5 percentage points, with a decline of 5.2%, ranking last among 31 primary industries [7][61] - The report notes a divergence in performance among sub-sectors, with snacks and soft drinks showing gains while liquor and beer experienced declines [7][61][64] - The absolute and relative valuations of the food and beverage sector are at their lowest since 2010, indicating potential investment opportunities [7][61][64] Group 3 - The report tracks the recovery of consumer confidence, with a 0.9% year-on-year increase in retail sales in December, showing improvement from the previous month [7][63] - It highlights that the liquor sector is facing weak demand and declining prices, with the price adjustments for premium liquor nearing levels seen between 2011 and 2015 [7][63][64] - The report identifies structural differentiation in costs, with some packaging materials and agricultural products experiencing price increases [7][63][64] Group 4 - Investment recommendations include a focus on liquor stocks that have undergone a four-year adjustment period, with potential for a "valuation + performance" double bottom [7][64] - For consumer goods, the report anticipates a moderate increase in industry prices in 2026, with specific recommendations for companies like Anjuke Foods, Qianhe Flavor, and Eastroc Beverage [7][64] - The report suggests that the upcoming Spring Festival will provide a favorable environment for growth narratives, particularly in the restaurant supply chain and certain chain formats [7][64]

Summary of Conference Call Notes Industry Overview - The focus is on the consumer sector, particularly in the food and beverage industry, highlighting a seasonal uptick in demand during spring [1][2]. - The report emphasizes the recovery of service consumption, particularly in the restaurant and food supply sectors, supported by government initiatives to boost consumer spending [2]. Key Companies and Recommendations - **Snack Food Companies**: - Recommended leading snack brands include Wanchen Group, Yanjinpuzi, Weilong, Youyou, and Ganyuan [1][2]. - **Restaurant Supply Chain**: - Key players include Babi, Anjins, Guoquan, and Yihai International, along with Baoli Foods and Lihai Foods [1][2]. - **Beverage Companies**: - Notable recommendations are Yangyuan Beverage and Dongpeng Beverage [1][2]. Company-Specific Insights - **Babi**: Focused on diversified growth strategies to recreate its business model [2]. - **Anjins**: Confirming a bottoming out phase and restarting growth initiatives [2]. - **Guoquan**: Demonstrating a resilient business model with accelerated store openings [2]. Market Trends and Predictions - Historical data indicates that Q1 typically shows positive performance for many restaurant companies, with factors such as market profitability, delayed corporate events, and favorable seasonal reporting expected to drive growth in Q1 2026 [3]. - The report anticipates a multi-factor resonance effect in Q1 2026, which may positively impact metrics like customer spending, same-store sales, and table turnover rates [3]. Government Initiatives - The government has implemented a series of fiscal and financial policies aimed at stimulating domestic demand, which includes measures to clear overdue payments to businesses and ensure wage payments to migrant workers [2]. Additional Insights - The report highlights the cyclical nature of the consumer sector and its role as a leader in consumption recovery, with key companies showing continued improvement [4]. - Emphasis on valuation switching as a strategy to recommend high-quality stocks such as Ximai, Babi, Guoquan, and Yanjinpuzi [4].

Group 1 - The leisure food sector increased by 3.01% on January 19, with Li Gao Food leading the gains [1] - The Shanghai Composite Index closed at 4114.0, up 0.29%, while the Shenzhen Component Index closed at 14294.05, up 0.09% [1] - Key stocks in the leisure food sector showed significant price increases, with Li Gao Food rising by 7.34% to a closing price of 46.09 [1] Group 2 - The leisure food sector experienced a net inflow of 18.35 million yuan from institutional investors, while retail investors contributed a net inflow of 18.64 million yuan [2] - Notable stocks included San Zhi Song Shu, which had a net inflow of 36.54 million yuan from institutional investors, despite a net outflow from retail investors [3] - The overall trading volume and turnover in the leisure food sector indicated active market participation, with significant movements in individual stock prices [1][2]