Wh Group Ltd Ord

Good evening, analysts and investors. Welcome to the third quarter 2025 results presentation of WH Group. I'm Guo Lijun, Executive Director and Chief Executive Officer of WH Group. Joining us today are members of the management teams from WH Group and our subsidiaries, Shuanghui Development, Smithfield Foods, and Morlini Foods, including Mr. Wan Long, Chairman of the Board and Executive Director of WH Group, Mr. Wan Hongwei, Vice Chairman of the Board of WH Group and Chairman of Shuanghui Development, Mr. Ma Xiangjie, Executive Director of WH Group and President of Shuanghui Development, Mr. Liu Songtao, Executive Vice President and Chief Financial Officer of Shuanghui Development, Shane Smith, President and CEO of Smithfield Foods, and Mark, CFO of Smithfield Foods, Luis, CEO of Merlini Foods, Joanna Yan, Chief Financial Officer of WH Group, Vice President of WH Group, Zhou Xiaoming. Today's presentation will be divided into two parts. First, we will present the financial and operational performance for the first three quarters of the year, followed by the Q&A session. So let me walk you through the company's performance in the first three quarters. In the first three quarters of 2025, packaged meat sold was 2.231 million metric tons, 2.2% decline year over year. Pork sold was 2.967 million metric tons, 8.4% increase year over year. Revenue declined. $20.47 billion, 8.5% higher than last year. EBITDA, $2.496 billion, 10.7% higher year-over-year. Operating profit, $1.92 billion, 7.3% higher year-over-year. Profit attributable to owners of the company, 1.168 billion U.S. dollars, 8% higher year over year. Basic earnings per share, 9.10 U.S. cents per share, 8% higher than last year. So in the first three quarters, the company has exhibited growth in volume, revenue, as well as profit. Now look at the business performance by segment. Packaged meats contribute to 50% of our revenue and 83% of our operating profit. Pork is 40% of the revenue and 20% of the profit. Other business is 8.7% of the revenue and contributed to a loss of $58 million, which includes other business as well as the corporate expenses. If you look at the performance by region, North America represented 54% of the revenue and 51% of the operating profit. China represents 30.8% of the revenue and 37.6% of the operating profit. European business is 15.2% of the revenue and 11.5% of the operating profit. So North America generated more than 50% of both the revenue as well as operating profit. In the first three quarters of 2025, hog prices in China fell continuously due to sufficient supply and weak demand. In the U.S., performance of hog production business improved significantly as feed prices continued to decline while hog prices increased. In Europe, hog prices decreased as hog supplies recovered. The number of slaughter hogs in China increased by 1.8% to 530 million heads in the first three quarters of 2025. In the U.S., the number of slaughter hogs decreased by 1.3% to 81.7 million heads in the first eight months of the year. In the first three quarters of 25, the average hog price in China was removed 15.1 per kilogram, a decrease of 10.7% year-over-year. In the U.S., the average hog price was $1.6 per kilogram, up 13.2% year-over-year. In Europe, the average hog price was Euro 1.52 per kilogram, down 6.5% year-over-year. The average pork cutout value in the U.S. was 2.29 U.S. dollars per kilogram in the first three quarters, an increase of 8.7% year over year. The industry market spread narrowed as hog prices increased more than pork values. In China, For the first three quarters, the operating profit was $724 million, 0.7% decline year-over-year. Packaged meats operating profit $689 million, year-over-year decline of 4.8%. Pork operating profit $35 million, year-over-year decline of 14.6%. In North America, operating profit was $981,016.6% higher year-over-year. Packaged meats operating profit was $796 million, 6.8% lower year-over-year. Pork operating profit $275 million, 2.43 times higher than last year. In Europe, operating profit $221 million, 1.8% decline year-over-year. Package meats, $111 million, 5.7% higher than last year. Pork, $78 million year-over-year, decline of 22%. In terms of our strategies, WH will continue to consolidate global resources, leverage synergies, adhere to the business philosophy of improved mix, adjust price, and control costs, and the strategy of industrialization, diversification, internationalization, and digitalization to enhance our leading position in a global medium. Business priorities number one, continue to improve the pork business, optimize cost structure, improve hog production KPI, grow the fresh meat sales volume, and strengthen market competitiveness. Number two, adhere to the two adjustment and one control strategy for packaged meat business, expand market network, optimize sales channels, and strengthen competitive advantage to drive steady improvement in sales volume and profits. Continue to optimize our business portfolio, steadily achieve protein diversification, further strengthen our global business footprint, mitigate risks, improve quality, and enhance efficiency. Number four, explore and leverage AI to continuously advance industrial intelligence, promote digitalization upgrades in production, sales, and business management to reduce cost and enhance efficiency. the company will maintain the momentum of steady growth, build a solid foundation for long-term sustainable development. So that's all for the presentation. Now we will move on to the Q&A.

If you have any questions, please raise your hand.

The first question will come from Luo Chen of BofA.