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A livestock and poultry breeding enterprise with a vertically integrated industrial chain. The company focuses on the breeding and breeding of pigs and yellow feather broilers, and has a vertically integrated industrial chain for pig, yellow feather broiler breeding, breeding and feed production. Through the self-operated farm and family farm models, the company has expanded its business to 39 cities in 13 provinces and autonomous regions of China. According to Sullivan's report, in terms of pig sales, the company ranked sixth among all pig suppliers in China in 2022, with a market share of 0.8%; in terms of sales of yellow feather broilers, it had a market share of 2.1%, ranking third among all yellow feather chicken suppliers.

Pork is the most consumed meat in China. Meat consumption in China includes pork, poultry, beef and lamb. Among them, pork and poultry account for 55.7% and 29.7% of total meat consumption per capita. It is expected that pork consumption per capita in China will maintain steady growth in the future. The 2022-2027 CAGR will be 1.6%, while the per capita consumption of poultry, beef and lamb will be -0.4%, 0.0% and 0.6%, respectively.

Pig farming accounts for more than 70%, and profits fluctuate greatly due to pig prices. The company's business is mainly divided into pigs, poultry and auxiliary products; among them, pig products account for more than 70% of revenue, poultry products account for more than 20% of revenue, and the remaining 1% of revenue contribution comes from auxiliary products. Benefiting from scale expansion, in 2020-2022 and the first five months of 2023, the company's operating income was 8.145 billion yuan, 99.02 billion yuan, 15.037 billion yuan and 6.362 billion yuan respectively. However, due to the cyclical impact of pig prices, net profit fluctuated greatly. Net profit for the same period was 3.608 billion yuan, -3172 million yuan, 9.1 billion yuan and -2,185 billion yuan, respectively, and is expected to generate significant net losses throughout 2023.

Currently, the pig market is still facing the double pressure of sufficient supply and weak demand. It is difficult for pig prices to improve significantly in the short term, and the company's profit side is under pressure; furthermore, the company's debt level is high due to the expansion of business scale. As of May 23, the balance ratio reached 83.5%, corresponding to a market value of about HK$131 billion after listing, so careful purchasing is recommended.