Tianma Technology’s feed sales reached 1.5193 million tons in 2023, with three consecutive years of growth exceeding one million tons against the trend

On the evening of April 25th, Tianma Technology (603668. SH) released its 2023 annual report. Data shows that due to external business environment and industry operational pressure, the company achieved a revenue of 6.998 billion yuan in 2023, of which the feed business grew against the trend, with a year-on-year increase of 4.32% in revenue. In the first quarter of 2024, the company achieved a revenue of 1.361 billion yuan, benefiting from the fish release from the aquaculture end, with a net profit attributable to the parent company of 6.5896 million yuan, a year-on-year increase of 17.4%.

Faced with the complex and ever-changing external environment and industry pressure in 2023, Tianma Technology actively responds to the national call, comprehensively promotes the “one center, four major sectors” strategy, promotes deep integration of the primary, secondary, and tertiary industries, vigorously and orderly promotes the construction of the entire industry chain, and promotes coordinated development of various business sectors. Through in-depth optimization of layout and structural adjustment, the company’s modern fishing and animal husbandry industry chain, including healthy food, safe feed, and intelligent breeding, will maintain stable development in all business sectors in 2023.

Innovation driven green oriented feed business revenue increased by 4.32%

Faced with the dual transformation of global agricultural market demand and environmental challenges, Tianma Technology relies on its profound industry experience and advanced technology to focus on the special aquatic and livestock feed markets and achieve business breakthroughs. Among them, the sales of eel feed have been leading the country for many consecutive years, and the product line covers the full life cycle needs of special aquatic products such as eels, groupers, and yellow croakers. Thanks to continuous R&D investment and technological innovation, the company’s sales of special water feed have skyrocketed from 67000 tons in 2015 to 215600 tons in 2023, with a growth rate far exceeding the industry average, demonstrating strong growth momentum.

During the reporting period, the company’s feed business achieved counter trend growth, with a total sales volume of 1.5193 million tons and a revenue of 6.503 billion yuan, a year-on-year increase of 4.32%. Among them, the revenue and sales of special aquatic feed and livestock feed have both steadily increased. Faced with fluctuations in raw material prices and fierce competition, Tianma Technology’s feed business has maintained stable development, with annual feed production and sales exceeding one million tons for three consecutive years, firmly ranking among the top in Fujian’s feed industry.

Eel production capacity continues to be released, and fish production will significantly increase in 2024

In terms of the layout of the eel industry, Tianma Technology continues to promote the deep integration and development of the eel primary, secondary, and tertiary industrial chains, and strives to build a national level modern agriculture (eel) high-tech industrial park. At present, the eight major fishing industry clusters and two eel industry bases with an area of 10000 acres have been put into operation, and bases in Fujian, Guangdong, Jiangxi, Hubei, Guangxi and other regions continue to produce fish on a large scale.

Public information shows that in the first quarter of 2024, the company’s eel production reached over 2000 tons, achieving a double increase in tank production compared to the previous quarter. It is expected to exceed 5000 tons in the second quarter. “Taking into account factors such as the current pace of eel production, the number, specifications, and stocking density of stored eels, it is expected that the eel production in 2024 will reach over 15000 tons, a significant increase from 2023,” said Tianma Technology.

According to Eel Net, the current Japanese eel fry fishing season has basically ended, and this year’s Japanese eel fry harvest has become a foregone conclusion. The global fry catch is expected to not exceed 35 tons, a decrease of about 30% compared to the previous year. China Merchants Securities stated that the fishing volume of Japanese eel fry determines the price trend of eel in the next 1-2 years, so eel prices are expected to remain high from 2023 to 2024.

In the future, with the continuous release of eel production capacity, domestic consumption will continue to recover, traditional festivals such as May Day and Dragon Boat Festival will come, and Japanese eel festivals will stimulate consumption. Tianma Technology is expected to benefit from the increase in eel prices. In 2024, the eel business is expected to see both quantity and price rise, and the breeding benefits may be further realized.

The roasted eel brand continues to shape, with a significant increase in orders in 2024

In terms of food business, Tianma Technology focuses on eels and has built a complete industrial chain ecosystem from research and development, production, processing to sales and services. Its roasted eel brands such as “Eel Tang” are well-known both domestically and internationally, winning multiple awards. Currently, 80% of the company’s eel revenue comes from overseas.

In 2023, Tianma Technology sold approximately 1456 tons of roasted eel and achieved a revenue of approximately 174 million yuan. Since 2024, the company’s food grilled eel sector has further achieved breakthrough growth. As of April 17th, the company’s food grilled eel has sold and received over 1600 tons of domestic and international orders this year, exceeding the total sales volume for the entire year of 2023. It is expected that the sales of grilled eel food will significantly increase in 2024.

With the operation of the new food super factory project, Tianma Technology’s food production capacity will be further released in the future. After the completion of the simplified program private placement and fundraising project, the company’s eel farming and product supply capabilities will be further enhanced. At the same time, the company continues to deepen its online and regional strategies, consolidate export channels, actively explore domestic online and offline markets, and enhance the market competitiveness and sustainable development ability of the food sector.

Looking ahead to the future, Tianma Technology will continue to optimize its industrial layout and structure, focus on overall strategic deployment, take multiple measures to improve operational efficiency, and orderly promote the deep integration of the primary, secondary, and tertiary industries. It is committed to building a world-class food supply chain platform with a full industry chain, comprehensively enhancing profitability and core competitiveness.

At the same time, the company will closely monitor the trends in the capital market, resolutely implement the new “National Nine Measures”, take high-quality development as the guide, enhance the stable development of various business sectors in the modern fishing and animal husbandry industry chain, give back to investors, and enhance the company’s market value.