CHINA PET FOODS(002891)2024-11-20 09:25Summary of the Conference Call for Yantai Zhongchong Food Co., Ltd. Company Overview - Company Name: Yantai Zhongchong Food Co., Ltd. - Stock Code: 002891 - Bond Code: 127076 - Date of Conference: November 20, 2024 - Location: Yantai Zhongchong Food Co., Ltd. Key Points Discussed Business Growth Targets - The company has set a domestic growth target of 30% and an international growth target of 8% for 2024, with a projected net profit growth rate of 28.64% compared to 2023 [3]. Domestic Business Development - The domestic business growth will be driven by three proprietary brands, each at different stages and targeting different customer segments and sales channels. The company emphasizes a long-term vision for the development of the pet food industry in China [3]. Impact of Currency and Tariffs - The company operates production facilities in China, the USA, Canada, New Zealand, and Cambodia. The limited capacity of overseas subsidiaries reduces the impact of currency fluctuations and tariff changes. The company has a strong order fulfillment capability globally, with a leading order intake level [3]. Overseas Business Performance - The overseas subsidiaries and export business are expected to maintain stable growth in Q4. The US factory has completed technical upgrades and will return to normal production levels, while the Canadian factory has sufficient orders for Q3 and Q4 [4]. Sales Expense Strategy - Sales expenses are primarily allocated to the development of proprietary brands, with a higher focus on domestic markets. However, the company also considers international brand expansion as a strategic priority. The pet market in China is experiencing rapid growth, presenting significant opportunities for brand development and consumer loyalty [4]. Overall Risk Management - The company's global supply chain layout enhances its risk resilience, with sufficient order demand expected to support overall performance [4]. Additional Important Information - The company has invested in building a second, larger factory in the USA and has acquired a 70% stake in New Zealand's largest pet food canning factory, PetfoodNZ International Limited, for approximately RMB 154.5 million [3]. - The company actively participates in global exhibitions to attract new customers and orders, ensuring a robust pipeline for export business [4]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's growth ambitions, operational strategies, and market positioning in the pet food industry.