On August 14th, Guolong News reported that according to a research report from West Securities, Yihai Kerry Arawana Holdings (300999.SZ) showed a slight increase in sales volume for its main products in the first half of 2024, resulting in a significant year-on-year improvement in performance. In the first half of 2024, the company's sales of kitchen food/fodder raw materials and oil and fat technology business were 11.373/12.129 million tons respectively, an increase of 2.53%/3.67% year-on-year, achieving a slight increase in sales volume. With regard to gross margin, the gross margin of the company in the first half of 2024/second quarter of 2024 was 4.90%/4.65%, an increase of +0.75ppt/+1.54ppt year-on-year. The improvement in gross margin was mainly due to the decrease in cost exceeding the decrease in selling price, resulting in the restoration of profit space. As of the first half of 2024, the company has a total of 80 production bases with a designed production capacity of 14.724/6.025/7.815 million tons for oilseed crushing/oil and fat refining/oil and fat filling, respectively, an increase of 5.84%/2.87%/2.38% year-on-year, with the main production capacity continuing to improve. The downward trend in raw material costs is expected to help improve the company's profitability. With its leading position in the industry, it is recommended to maintain a "shareholding" rating.