IPO purchase proposal:

The company is one of the largest pork suppliers in Changde City, Hunan Province, mainly engaged in pork production and sales. The company's market position ranks first in Changde City, third in Hunan Province and top 20 in China. In terms of industry, pork consumption accounts for 60% of China's total consumption. In 2012, China's total pork production and consumption was about 53.4 million tons. The total number of pig farms in China has been decreasing since 2006, with a compound growth rate of about 11.2%. However, the compound growth rates of total output value and total output of pig slaughtering in China in the past seven years are 20% and 8.4% respectively, which means that the concentration of pig slaughtering market in China has increased. The company's products are mainly divided into hot fresh meat, cold fresh meat, frozen meat and other by-products, accounting for 44.3%, 19.6%, 22.8% and 12.9% of revenue in the first nine months of 2013, respectively. The company's hot fresh meat, cold fresh meat and by-products are mainly sold in neighboring cities in Hunan province, while frozen meat products are sold outside Hunan province. Hunan province accounted for 86% of sales in the first nine months of 2013, while Guangdong province accounted for 9.9% of sales revenue. The company's gross profit margin for the first nine months of 2013 was 13%, higher than that of Yurun Foods in the same period, and the company expects a net profit of 100 million yuan in 2013, an increase of about 6.3%. The company mainly sells products to retailers, food processors and pork product traders. In 13 years, the PE valuation is estimated to be between 4.5 and 6.4x, the company's net interest rate is lower than that of similar listed companies in Hong Kong (1699), and the valuation is correspondingly lower than that of General Sweet Foods, but also lower than that of Yurun Foods.