Good evening, welcome to WH Group's conference call for the announcement of our results for the first half of 2026. This is Guo Lijun, Executive Director and the Chief Executive of WH Group.

Joining today's results announcement are members of the management team from WH Group and from our subsidiaries, Shuanghui Development, Smithfield Foods, and Morliny Foods in Europe, namely 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, President and Chief Executive Officer of Smithfield Foods, and Mark, Chief Financial Officer; Luis, Chief Executive Officer of Morliny Foods; Ms. Zhen Jingyan, Chief Financial Officer of the company; and Zhou Xiaoming, Vice President of the company.

Today's announcement is divided into two parts. We will first present the company's financial and operating performance for the first half of the year, and will then take your questions.

First part. For the first half 2026, packaged meats sold is 1.522 million metric tons.

Pork sold, 2.079 million metric tons, year-over-year growth of 6.1%. Revenue, $13.827 billion, 3.3% higher than last year.

EBITDA, $1.681 billion, 6.1% higher than last year. Operating profit, $1.231 billion, 2.2% decline compared to last year.

Profit before tax, $1.221 billion, 6.2% higher than last year. Profit for the period, $947 million, 10.5% higher than last year.

Profit attributable to the owners of the company, $773 million, 6.6% higher than last year. Basic earnings per share, 6.02 US cents.

The board has also declared an interim dividend per share of 0.2 Hong Kong cents. Total amount would be roughly to $330 million.

Despite challenging operating environment, we have achieved a robust performance with growth in both revenue and volumes. Looking at the business segments, packaged meat is still our core business, contributing to 51.3% of our revenue and 89.4% of our operating profit.

Pork business is also our major business, contributing to 39.1% of our revenue and 14.3% of our operating profit. Other business contribute to 9.6% of revenue and a loss of $45 million.

From a region perspective, North America contributes to more than 50% of our revenue, which is 52.9% in the first half. China business was 30.5% and contributed to 36.8% of the operating profit.

European business contributed to 16.6% of revenue and 9.7% of the operating profit. In the first half, the global economic growth moderated, geopolitical conflicts elevated, trade tensions continued, and policy environment remained uncertain.

China sow herd continued to reduce while productivity improved. Abundant supply caused the hog price to decline sharply year-over-year.

US pork supply increased, hog price dropped year-over-year. Feed cost was favorable due to lower grain prices.

Hog production remained profitable. However, fresh pork faced the challenges from narrowing market spread.

In Europe, animal disease, export restrictions resulted in pork oversupply inside European Union. Hog price dropped significantly, pressuring upstream pork operations.

WH Group leveraged our global platform and a value chain, promoted efficiency improvement and cost savings, optimized the business structure, continued with pricing, mix, and cost control strategy, achieving the growth in volume while the operating profit decreased slightly. Packaged meat as the core business saw growth in both volume and profit.

In the first half, the number of slaughter hogs in China increased by 1.7% to 372.46 million heads. The number of slaughter hogs in the US decreased by 0.5% to 63.08 million heads.

From a pricing perspective, the prices dropped in all the regions. In China, the average hog price was RMB11.23 per kilogram, down 27.5% year-over-year.

US average hog price was $1.48, down 1.5% year-over-year. European average hog price was €1.2 per kilogram, down 20% year-over-year.

In the US, in the first half, the average pork cutout value was $2.13 per kilogram, a decrease of 2.2% year-over-year. The market spread narrowed due to pork price decreased more than hog price.

The spread has narrowed. In China, the operating profit was $454 million, 4.4% higher than last year.

Packaged meats, $458 million, 11.4% higher than last year. Pork business is a loss of $7 million, and year-over-year declined by $35 million.

In China, we captured market opportunities, achieved the growth both in volume and profit. Meat and packaged meats products external sales volume reached record high.

In packaged meats, we continue to deepen professional reformation, stepped up investment in the market, improved customer service quality, continued the price mix optimization and cost control strategy, adapted to changes in consumption trend. Volume increased while unit profit remain at high level.

In pork business, it captured market opportunities, expanded customer base, harvest volume achieved a significant growth. Fresh pork profit under pressure due to severe competition.

Hog production faced challenges driven by weak hog price. In poultry, it continued to expand in scale poultry production, KPI improved while raising costs reduced.

Fresh poultry optimized product mix, expanded network, and enhanced competitiveness. Total poultry operations improved significantly.

In terms of digitalization, we continue to deepen digitalization, deployed extensively in production, sales, animal production, and internal management, empowering the company to achieve high-quality development. In North America, first half operating profit was $658 million, 2.5% lower than last year.

Packaged meats, $545 million, 4.2% lower than last year. Pork, $182 million, 11.7% higher than last year.

In the North America, we leverage integrated business model focused on cost efficiency. Operating profit was stable while net income achieved a record high.

In US packaged meat, we leverage breadth of product portfolio and channel. Volume remained stable.

We continued the pricing mix optimization and cost control strategy, mitigating raw material cost inflation. Profitability maintained at high level.

In US pork, the hog production benefit from favorable market and effective hedging strategy. Results improved significantly year-over-year.

Fresh pork profit dropped due to narrower market spread. Total US pork profit maintained growth.

In Mexico, hog price dropped while the volume increased. Profit achieved a growth year-over-year.

In Europe, in the first half, operating profit was $119 million, 20.1% lower than last year. Packaged meats, $97 million, 44.8% higher than last year.

Pork profit, $1 million, year-over-year declined by $63 million. In Europe, amid unfavorable market conditions, we continue to integrate synergistic M&As, maintained volume growth, packaged meat and poultry performance continued to improve.

New M&A continue contribute to volume growth. Operating profit increased significantly year-over-year due to lower raw material costs and pricing discipline.

Hog price dropped sharply due to animal disease as well as export restrictions. Pork business faced the challenges and performance was under pressure.

Broiler price dropped, poultry business grew both in scale and profit. In terms of M&As, we further expanded business footprint and enriched product offerings.

We completed acquisition of Wolf Group, a leading German producer of premium sausages, convenient, and ready meals. In terms of business strategies, WH Group will continue to consolidate global resources, leverage synergies, adhere to the business philosophy of improve mix, adjust price, and control costs, and the strategy of industrialization, diversification, globalization, and digitalization to enhance our leading position in the global meat industry.

In terms of business priorities, we will focus on the following to lay a solid foundation for the long-term sustainable development: Number one, first, enhance the pork business, optimize cost structure, improve hog production performance, grow fresh pork, and strengthen competitiveness. For packaged meats, further optimize the product portfolio, expand the customer network, and maintain steady growth in scale and profit.

Number three, continuously optimize the pork value chain, steadily promote meat diversification, enhance global footprint, and strengthen overall competitiveness. Number four, promote automation and artificial intelligence across the organization, drive digitalization upgrades to improve quality, cost, and efficiency.

That's all from business review, and now we will move on to the Q&A. 好，看看各位媒体朋友有没有问题，可以在会议系统中按举手示意键来提问。

喂，听到吗？ 听得到，听得到。

你们好，我是来自明报的Adeline。就想问一下现在成本那方面，就是中东局势那里有没有影响到，以及下半年会预测这个影响会对成本造成什么样影响？下一个问题是想知道，就是因为中美贸易还有中欧有一些贸易的摩擦，那在上半年对你们的业务有没有造成什么样的影响？那接下来展望下半年在这个背景下，预计那个影响会是什么，以及有没有一些应对的策略？然后就是有没有一个对于下半年的一个业绩上面的预测可以讲一下？谢谢。

The question from Ming Pao. The first one relates to the impact of the Middle East conflict on the cost structure of the company.

Has that impact on the company's cost structure and what will be the impact in the second half? The second question relates to the trade tensions between China and US, China and Europe.

What has been the impact of these trade tensions on the company's performance in the first half, and what are the expected impact on the performance in the second half, and what mitigation measures can the company take to address these trade tensions?

谢谢您的提问。下面我回答您这两个问题啊。第一个呢，从今年的3月初啊，就2月底爆发了，爆发了这个中东战争啊，美伊战争之后啊，油价一直在持续的在高位。目前呢，还是在较高的位置。所以说呢，我们预计啊，如果这个战争和僵持持续的话，将会对下半年和油价带来的运输、燃料以及包装的塑料包装的一些成本啊，会造成影响。不过这个呢，在我们整体的经营中啊，占的比重并不高。下半年呢，我们会通过成本的节约和优化，以及市场的运营啊，来消化这个成本的上涨。

In terms of the first question, since the conflict broke in end of February and early March, the crude oil prices has increased sharply and has remained at relatively high levels. That has indeed caused the-- 抱歉，想问一下刚才回答问题的是哪一位管理层？

我是万洲国际的CEO郭丽军。 好，谢谢。

嗯。

The answer was from Guo Lijun, the CEO of WH Group. The elevated crude oil prices, if continues, will impact the company's transportation cost, fuel cost, and packaging material cost.

Overall, the impact is not material considering the scale of the company's operations, and we also take a lot measures to try to mitigate the increased input costs in relation to the fuels.

第二个呢，就是近几年呢，全球的贸易摩擦呀，使各类产品的关税大幅地上涨，那我们猪肉行业呢也不例外。目前呢我们对中国，中国对欧洲和这个美国的关税啊，都比前几年增长了不少。再加上中国生猪价格呀，这个生猪价格比较低，肉价也比较低，所以说呢，今年对我们的进口肉类啊，在全​​球往中国的进口肉类产生了一些影响。在这种情况下呢，我们也做了三项调整：第一个呢就是，由于中国对美国的猪肉价格的关税啊达到了47%，现在呢我们主要加大美国副产品往中国的出口，包括我们在不断地提升这个出口的产品以及产品的品质，来通过这个措施啊来扩大美国副产品向中国的出口，这是第一个；第二个呢，美国的猪肉啊，我们也在积极地寻找其他渠道，包括墨西哥、亚洲的日本和韩国，通过这些渠道呢来出口我们的肉类，实现产品的增值；第三个呢，在中国市场上啊，我们也积极地开发更多的采购渠道，来这个降低我们进口肉类的成本，包括欧洲啊、南美啊以及其他的一些供应渠道，来实现我们这个国际贸易的一个增长。

In recent years, indeed, because of the trade tensions, there has been tariffs against many products, including pork. In China, the tariff against pork import from Europe and US has increased significantly compared to a few years ago.

In-- on the other hand, the hog prices and pork prices in China are very low, it has caused challenges for importing US pork into China. In the-- in light of the elevated China US-- the tariff against the US imports-- imported pork into China, we are taking a few measures.

Number one, because the tariff against US pork is 47%, we are focusing importing more offal products from US, and for these offal products, we also try to improve the quality so that we can expand its export. Secondly, we are also exploring more channels for US pork export into other countries, such as Mexico, Japan, Korea.

Number three, in China, we are also exploring more importing channels to try to obtain high-quality products at competitive pricing, new channels including Europe as well as in South America. 好，我回答完毕。

That concludes Gordon's answers. 好，看看还有没有其他的新闻媒体的朋友提问？

不好意思，刚才有提到第三道问题，是对下半年的那个业绩有没有一些数字上面的预测？ 下半年呢，我们在整体的经营方面呢，还会遇到的一些挑战。我想呢这个，对于我们这个下半年呢，我们觉得呀，这个全球市场的消费疲弱，包括通胀的压力啊，还有这个大宗商品的价格，以及市场的竞争，当然也包括您刚才提到的由于这个贸易和一些政策的不确定性，这个将会对我们，是我们主要面对的一些挑战。所以说下一步呢，我们在经营方面呢，一个是会加大我们优化我们产品的组合，另外一个呢，也会专注于我们的主业，加强我们垂直整合的产业链，从这些方面来应对这些可能对我们带来的一些影响。所以说呢，我们预计啊，全年呢我们将努力地来进行这个实现一个良好和稳定的经营业绩，为我们的股东创造一个长远的价值。这个呢，我们会更好做好我们下半年的经营，来实现我们全年整体的业绩的一个完成一个整体的比较好的业绩。

The question relates to the forecast for the second half. In the second half, we will continue to face challenges due to weak consumer demand, inflation pressures, commodity market volatility, competition in the market, as well as the uncertainties of the policy environment, as we described with respect to the tariffs.

From the company's perspective, we are focusing on optimizing our product mix, focusing our core strengths, and leverage the advantage of our vertically integrated business model, and try to deliver stable and good results to create long-term shareholder values. 不好意思，想补充问一下，那个下一步的计划加大产品结构那方面有没有一些可以透露？然后就是对于全年派息率，你们是也有没有一些就是预期会是怎样？

产品组合呢，我们是主要是适应市场的变化来调整我们的产品组合，更加适应市场的消费需求。你比如在中国呢，目前在K型消费这个形式下呀，我们既要注重高端产品的研发和销售，同时呢我们也会覆盖一些中低端的市场，来扩大我们的销量，增加我们的产品覆盖。所以说总体呢，一个是我们的产品组合的调整，一个是适应市场的变化，一个是有利于我们增量，第三个是保持我们较高的盈利水平。

Further elaboration on product mix optimization. By product mix optimization, we try to adapt to the consumer demand and consumption trends.

For example, in China's K-shaped economy, we try to develop both high-end and premium products as well as mid-to-low-end value-for-money products to better serve our customers and to also achieve higher volume as well as maintain a good profit.

那么派息的这方面呢，我们派息政策不是是不低于当年净利润的50%，这个呢我们是没有变化的，我们仍然会坚持这个派息的政策。那上半年呢，我们董事会决定啊派息0.2港元，是和去年持平的。

In terms of payout ratios, our policy, dividend policy, is no less than 50% of net profit attributable to the owners of the company. For the first half, the board has declared dividend of 20 Hong Kong cents, which is flat, same as last year.

还有没有其他提问呢？如果没的话-- 不好意思，想最后提一条问题，就是在内地那方面就看到好像有一个业务，猪肉那里是其实看到在无论欧洲啊、内地啊还有美国的市场，北美的市场都好像净利润那方面都有下跌的情况。那可以说明一下关于价格竞争这方面嘛？特别是在内地。 你的你的问题是，第一个就是为什么中国、美国和欧洲上游猪肉产业的盈利在下降，是吧？

对的。 好，对。这个第二个是在国内市场竞争的形式是什么样的，是这样吧？

是的。

嗯，好。首先呢，这个这三个区域啊，这个经营中国业务的猪肉啊是同比是下降的，欧洲业务的猪肉业务同比是下降了，但是美国的上游猪肉业务同比是增长的，这是第一个。第二个呢，就是今年上半年呢，全球的猪肉价格啊，猪价肉价都在大幅地回落。你像中国业务，生猪价格是同比下降了28%，就是27.5%。欧盟的生猪价格同比下降了20%，所以说呢，在叠加市场消费疲弱这种形式，欧洲呢又有了由于这个疫情的原因造成出口的限制，所以说呢这两个因素啊，一个是猪价下降，一个是消费不畅、出口受限，这两个原因呢是我们造成我们中国和欧洲这个上游猪肉产业盈利下降的主要因素。

First to review the performance of the global pork business. In the first half, the operating profit of pork business in China declined year-over-year.

In Europe, also declined year-over-year. In US, actually increased compared to last year.

In the first half, across the world, the hog prices has decreased. The pork prices also decreased.

In China, the hog prices on average has decreased by 28% compared to last year. In European Union, the price decreased by 20% compared to last year.

The substantial drop in the European hog price is really driven by weak consumer demand, as well as the export restrictions as well as as a result of the outbreak of animal diseases. 对于国内这个竞争形式啊，请双汇的马总啊做一个说明。

好，我是双汇发展总裁马相杰。刚才这个问题啊，我说一下国内的情况，两点。第一个是竞争形式，第二个是猪肉盈利下降的原因分析。这两个其实是一个问题。过去呢，中国国内的这个屠宰业啊，这个小企业多，行业集中度低。在行情较好的时候啊，屠宰业毛利整体较高。这两年，尤其是今年有个明显的现象，这个上游的大型养殖业进入屠宰业以来，前期在不断地扩大各自的市场份额。屠宰业的竞争由过去对我们双汇来讲，由过去的大企业对小企业的竞争，和大企业和大企业的竞争，整个行业格局在发生变化，行业的集中度在明显提高。这样的竞争态势下，整个行业的毛利水平在下降。这既是一个目前屠宰业竞争格局的现状，也是一个毛利低的原因。另外，我们今年明显的毛利利润低，屠宰业的毛利低，是因为今年外贸进口肉，我们因为国际形势的原因，量利都在明显下降，插在一个统计口径之内，也拉低了我们看到的屠宰业的盈利水平。回答完毕，谢谢。 The performance of China pork business, as well as the China market competitive dynamics.

In terms of market competitive dynamics, there has been changes in the dynamics in China in the last few years. In the past, the fresh pork industry are primarily dominated by some smaller, fragmented slaughtering houses.

In the last few years, because a lot of the large-scale hog production companies are entering into the slaughtering business, these large industrialized players are more aggressive in expanding market shares, the market becomes more competitive. In the past, we're primarily competing against the small players, but now we have many more large-scale competitors.

That has resulted in industry-level compression of gross margins. For our China business, it has also been impacted negatively impacted by the reduced volume and profit from imported meat as a result of the trade tensions.

那还想补充问一下，这个格局已经改变，并且会有持续继续下去的一个迹象，那下半年会是预期会继续有这个竞争情况吗？以及策略应对还是之前就是刚才回答的那样，就是会加大那个产品的结构，然后以及就是关注自己的那个营业是这样去应对吗？就是国内的那个竞争格局。 我来继续回答这个问题啊。这个竞争格局的变化，它是不是短期的。未来这几年，中国屠宰业的集中度会持续提高，会有过去的庞大的中小屠宰企业变成少数的大型屠宰企业。这个过程会持续一段时间。我们也会迎合这个大势，进一步保持这个稳利扩量的一个战略，扩大扩大我们的屠宰规模，提高我们的市场份额。这是我们接下来中长期的一个一段时间的经营战略。

In the future, we expect this trend will continue and the industry consolidation will continue. In the past, there are a lot of smaller companies, but in the future, there will be fewer, but larger companies.

In light of this evolution, we will focusing on expanding our scale while maintaining stable profit. We'll also try to expand our market shares to participate in the market competition.

好，怎么样？看看还有没有其他提问？

有的，不好意思。没关系，expand market share是通过什么样的方法呢？是在内地以及北美还有欧洲也是寻找到同一个做法吗？ 对。这个扩大市场份额呢，是在我们整个的发展战略中啊，一个是优化我们的猪肉产业链。第一个是优化我们的猪肉产业链。在猪肉产业链呢是我们的优势，是我们的目前来讲的一个主要的肉类产业。所以说呢，在猪肉产业链方面呢，我们第一个会优化我们的产业链，第二个是不断地扩大我们的市场份额。肉制品呢是我们的核心业务，也是我们主要的利润来源。所以说呢，通过两调一控，产品结构的调整、销售价格的调整，以及成本费用的控制啊，来不断地扩大我们的市场份额，来保持我们较高的一个盈利水平。这是我们的下一步的一个发展策略。

For market share expansion, for pork business, it is our major business. We'll continue to optimize the pork business and also to expand its market share across the globe.

For packaged meat business, it's our core business, and we will optimize the product mix, optimize the pricing of our products, and also to control cost to achieve expansion of market shares. 还想了解一下那个产品的价格那方面在三个主要市场有什么变化吗？就是期内。然后接下来的下半年会如何去调整那个产品的价格？

产品的价格啊，由于我们各个区域不同啊，产品不同，价格表现是不同的。所以说呢，下一步呢，在中国呢，我们这个产品价格呀基本上变化不大。由于我们预计啊下半年的生猪价格这个和原料价格呀变化不大，我们没有调整这个产品价格的这个计划。在欧洲和美国呀，我们会根据原料价格的变化来调整我们那个产品的销价。但是呢，我们在市场上我们有一个定价的纪律，也会尽量地使我们的销售价格来销售价格的波动来低于原料价格的波动，保持我们总体的一个盈利空间。

In China,

in terms of product pricing, in China, we do not expect any material changes in pricing, particularly in the second half, as the hog prices and other raw material cost are not expected to have a significant movement. In US and Europe, we obviously will adjust our pricing according to competition, according to raw material cost, but we also will maintain our pricing discipline to try to reduce the volatility in our prices and try to capture more profits.

另外一个呢，我们也会通过适应市场变化，调整产品结构来保持我们销价的增长，以及我们利润的提升。 We will also adapting to the market demand to optimize our product mix through product mix improvement to gradually enhance our pricing.

还有其他问题吗？ 没有了，谢谢。

嗯。请问还有其他提问吗？好。这个如果没有其他提问呢，今天的这个投资者会议啊，我们的各项议程都已经完成了。我们的业绩发布会到此结束，谢谢各位。 As there's no additional questions, we can conclude today's media presentation.

Thank you all.

Conference call for the announcement of our results for the first half 2026. This is Guo Lijun, Executive Director and Chief Executive Officer of WH Group.

Joining today's results announcement are members of management from WH Group and from our subsidiaries, Shuanghui Development, Smithfield Foods, and Morliny Foods in Europe, namely 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, President and Chief Executive Officer of Smithfield Foods, and Mark, Chief Financial Officer; Luis, CEO of Morliny Foods; Ms. Zhen Jingyan, Chief Financial Officer of the company; Zhou Xiaoming, Vice President of the company.

Today's announcement is divided into two parts. We will first present the company's financial and operating performance for the first half of the year, and will then take your questions.

Now review of the first half performance. In the first half 2026, WH Group packaged meats sold was 1.522 million metric tons, 4.9% higher than last year.

Pork sold was 2.079 million metric tons, 6.1% higher than last year. Revenue in the first half was $13.827 billion, 3.3% higher than last year.

EBITDA, $1.681 billion, 6.1% higher than last year. Operating profit, $1.231 billion, 2.2% lower than last year.

Profit before tax, $1.221 billion, 6.2% higher than last year. Profit for the period, $947 million, 10.5% higher than last year.

Profit attributable to the owners of the company, $773 million, 6.6% higher than last year. Basic earnings per share, 6.02 US cents.

The board has also declared a interim dividend of 0.2 Hong Kong dollars per share. The total amount is approximately $330 million.

Looking at our different business segments, packaged meat is our core business, contributing to 51.3% of our revenue and 89.4% of operating profit. Pork is our major business, contributing to 39.1% of revenue and 14.3% of operating profit.

Other business, including corporate expenses, contributed to 9.6% of revenue and a loss of $45 million. From a geographic distribution perspective, North America is 52.9% of revenue and 53.5% of operating profit.

China business is 30.5% of revenue and 36.8% of operating profit. Europe business was 16.6% of revenue and 9.7% of operating profit.

In the first half 2026, global economic growth moderated, geopolitical conflicts elevated, and trade tensions continued, and policy environment remained uncertain. In China, sow herd continued to reduce while productivity improved.

Abundant supply caused the hog price to decline sharply year-over-year. US pork supply increased, hog price dropped year-over-year.

Feed costs was favorable due to lower grain prices, and hog production remained profitable. However, fresh pork faced challenges from narrowing market spread.

In Europe, animal disease and export restrictions resulted in pork oversupply inside the European Union. Hog price dropped significantly, pressuring upstream pork operations.

WH Group leveraged the global platform and value chain, promoted efficiency improvement and cost control, optimized business structure, continued with pricing mix and cost control strategy, achieving the growth in volume while the operating profit decreased slightly. Packaged meat as the core business saw growth in both volume and profit.

In the first half 2026, the number of slaughter hogs in China increased by 1.7% year-over-year to 372.5 million heads. The number of slaughter hogs in the US decreased by 0.5% year-over-year to 63.08 million heads.

China average hog price was 11.23 RMB per kilogram, down 27.5% year-over-year. In US, the average hog price was $1.48 per kilogram, down 1.5% year-over-year.

In Europe, the average hog price was €1.2 per kilogram, down 20% year-over-year. In the first half, the average pork cutout value in the US was $2.13 per kilogram, a decrease of 2.2% year-over-year.

The market spread narrowed as the pork price decreased more than the hog price. In China, first half operating profit was $454 million, 4.4% higher than last year.

Packaged meats operating profit was $458 million, 11.4% higher than last year. Pork business was a loss of $7 million, which was $35 million lower than last year.

In China, we capture market opportunities, achieved growth both in volume and profit. Meat and packaged meats products external sales volume reached record high.

In packaged meat, we continue to deepen professional reformation, stepped up investment in the market, improved customer service quality, continued the price mix optimization and cost control strategy, adapted to changes consumer trend. Volume increased year-over-year while unit profit remained at high level.

In pork business, we capture market opportunities, expanded customer base, harvest volume achieved a significant growth. Fresh pork profit was under pressure due to severe competition.

Hog production faced challenges driven by weak hog price. In poultry, we continue to expand scale and poultry KPI improved while raising cost reduced.

Fresh poultry optimized product mix, expanded network, and enhanced competitiveness. Total poultry operations improved significantly.

We also continue to deepen digitalization, deployed extensively in production, sales, animal production, and internal management, empowering the company to achieve high-quality development. In North America, the operating profit was $658 million, 2.5% lower than last year.

Packaged meats operating profit was $545 million, 4.2% lower than last year. Pork operating profit, $182 million, 11.7% higher than last year.

In North America, we leveraged our integrated business model focused on cost efficiency. Operating profit was stable while net income achieved a record high.

In US packaged meat business, we leveraged the breadth of product portfolio and channel. Volume remained stable.

We continue the pricing mix optimization and cost control strategy, mitigating raw material cost inflation. Profitability maintained at high level.

In US pork business, hog production benefit from favorable market and effective hedging strategy. Results improved significantly.

Fresh pork profit dropped due to narrower market spread. Total US pork profit maintained growth.

In Mexico, hog price dropped while volume increased. Profit achieved growth year-over-year.

In Europe, operating profit was $119 million, 20.1% lower than last year. Packaged meat business, operating profit was $97 million, 44.8% higher than last year.

Pork, $1 million of operating profit, which is $63 million lower than last year. In Europe, amid unfavorable market condition, we continue to integrate synergistic M&As, maintain growth.

Packaged meats and poultry performance continued to improve. New M&As contribute to volume growth.

Operating profit increased significantly due to lower raw material costs and pricing discipline. Hog price dropped sharply due to animal disease as well as export restrictions.

Pork business faced challenges and performance was under pressure. In poultry, broiler price dropped, poultry business grew both in scale and profit.

In terms of M&A, we further expanded business footprints and enriched product offerings. In February this year, we completed acquisition of Wolf Group, a leading German producer of premium sausages, convenience, and ready meals.

In terms of our strategies, WH Group will continue to consolidate global resources, leverage synergies, adhere to the business philosophy of improve mix, adjust price, and cost control, and strategy of industrialization, diversification, globalization, and digitalization to enhance our leading position in the global meat industry. We'll focus on the following business priorities to lay a solid foundation for the long-term sustainable development: Number one, further enhance the pork business, optimize cost structure, improve hog production performance, grow fresh pork, and strengthen competitiveness.

Number two, for packaged meats, further optimize the product portfolio, expand the customer network, and maintain steady growth in scale and profit. Number three, continuously optimize the pork value chain, steadily promote meat diversification, enhance global footprint, and strengthen overall competitiveness.

Number four, promote automation and artificial intelligence across the organization, drive digitalization upgrades to improve quality, cost, and efficiency. That's overview of the first half results, and now we will move on to the Q&A.

好。第一个提问的是美林美银的分析师罗辰先生，请提问。 郭总和各位管理层，你们好。那我这边其实两个问题啊。一个呢是关于中国双汇这边，我们会看到双汇在二季度肉制品这边，单吨吨利出现了大幅下滑。按照我的测算，差不多吨利只有4,000块钱。那量方面的话，即便在有这么多的投入情况下也没有什么特别多的增长。能不能请管理层解释一下背后的原因，以及如何展望今年下半年肉制品的量和单吨吨利的趋势？这是第一个问题。第二个问题呢是关于分红方面的。我们看到双汇历史上一般都是有这个中期股息发放的惯例的，但这次的话，我们中期股息就没有去派发，那背后的原因是什么？那如何去展望双汇今年全年的股息？那有没有可能还是跟在短期业绩承压情况下，全年的这个年度股息跟去年大致相当？另外一方面呢，就是万洲这边的话，因为万洲的很多的现金也是从这个双汇派息派过来的，我们也很欣喜看到万洲在这次的中报还是继续发放中期股息的。那我们怎么去展望全年的万洲的派息，能不能按照过去这几年的惯例，至少做到股息的金额不低于上一年？谢谢。

Two questions from Luo Chen of BofA Securities. First one relates to China packaged meat business.

The second quarter profit per ton in packaged meat business has dropped significantly compared to last year, and based on his calculation, it's roughly 4,000 RMB per metric ton. On the other hand, the volume growth was not very high.

What's the reasons behind the sharp drop in profit per ton, but relatively moderate growth in volumes? What's the outlook of volume and profit per ton in the second half?

Second question

relates to

dividends. Historically, Shuanghui has a track record of paying interim dividend, but for this half, Shuanghui has not declared interim dividend.

What are

the reasons and what's the outlook for the full year dividend from Shuanghui? Given the challenges in the operations, is it possible to still achieve a flat dividend payout compared to last year for Shuanghui?

For WH Group, we are pleased to see that WH continued to declare an interim dividend, but what will be the outlook given WH cash flows are largely from the dividends of the subsidiaries? Will WH Group be able to maintain the dividend per share for the full year?

好，那第一和第二个问题呢，请双汇的这个马总来介绍。 好，我来回答你的第一个问题。这个双汇肉制品啊二季度的吨利同比下降了将近500块钱，上半年累计是降了150块钱。二季度的降幅比较突出，主要原因几个方面：从今年以来，我们逐步推出一些这个市场改革，这个专业化的改革，增加了比较多的专业化人员，这是第一个；另外，我们对一部分重点要开发的渠道加大了费用的投入。对于一个是费用，一个是人员，其实还是费用，我们打了个直接市场竞争来落实我们年初制定的稳利扩量的一个战略，造成短期内这个肉制品的吨利是下降的。随着这个市场的这个发展啊，这些费用的投入，下半年三季度会逐步软化，吨利会恢复到较高的水平。全年我们总预计吨利还应该在4,500左右，与去年略有下降，实现量合理的同比增长。这是我们对于年初的一个战略，也是目前我们推进的一个做法。你全年的预计和年初的这个安排基本应该是一致的。谢谢。

To answer the first question from Mr. Ma, CEO of Shuanghui Development, the second quarter profit per ton for packaged meat dropped by 500 RMB per ton.

For the first first half, the decrease was 150 RMB per ton. There are a few reasons behind the drop in profit per ton.

Number one is we have adopted various initiatives to reform our packaged meat business, including more professionalized sales force and we also increased headcount in the professional teams. Number two, we also stepped up investment or expenses in certain key growing channels.

These are really the initiatives we took to support our strategy of expanding our scale at stable profit. That has caused a temporary short-term decrease in profit per ton.

As the impact of this investment gradually ease in the third quarter, we expect the profit per ton will gradually recover. For the full year, our outlook is still around 4,500 RMB per metric ton, which is just slightly below last year's level.

This is consistent with the strategy that we formulated at the beginning of the year, which is to grow our volume at stable profitability. 那第二个问题关于这个中期分红问题。首先这个目前公司的经营是正常的。由于这个上半年出现了个超低猪价，也就是十多年来的最低的猪价，所以公司进行了一个低价的储存备，屠宰业储备了冻品，肉制品储备了原料。所以说，这事保证后期的这个经营的稳健，但同时呢占用了较多的现金流和资金。所以公司在综合考虑企业的基本情况后，做出了中期不再分红的决定。因为这个淡储旺销这个事情是短期的，所以说全年以及未来，公司还会继续坚持这个现金分红为主的分配政策，保持较高的分红比例。谢谢。

The second question relates to the dividend. The company's operations are all normal.

In the first half of this year, because the hog price in China was very low, which was a decade's low, we have took advantage of this market opportunity to build some inventories, including some frozen meat for the packaged meat raw materials. We believe these inventories would benefit the company's long-term operations.

On the other hand, these inventories will tie up some of the company's cash flows and working capital. In light of the cash flows as result of the inventory build-up, the board, after considering all the factors, decided not to pay an interim dividend this time.

Because this inventory building is a relatively short-term activity, we believe that in the future, we will continue our strategy of shareholder return through cash dividend and maintain a relatively high dividend payout ratio. 那个不好意思啊，我这边再追问一下。因为刚才马总也提到了全年要实现肉制品量的正增长，其实因为我们的理解下半年可能在费用投入上要控制一下，所以说如果我们单看今年的下半年的肉制品的量，我们在投入控制情况下，有信心能做正吗？

下半年的增幅应该是不跌，尤其四季度。我们投入很多费用是人员费用，投入进去以后量起来了，量起来了不就摊薄了一些费用？再加上去年的四季度基数是偏低的，所以今年下半年的这个增长不是信心的问题，我们是能确保的。 The question is that with a lower investment or expense in the market in the second half, will that impact the company's packaged meat volume growth?

The response is that, number one, because a lot of the investment in the market in the sales force is really on the personnel cost, and as the volume grows, these investment will be amortized. Also, last year fourth quarter, we had a relatively lower base, we are very confident that we can achieve the volume growth in the second half.

好，谢谢马总啊。那在接下来管理层在解答我关于万洲的这个股息的这个问题之前，我再澄清下。我刚才问的这个万洲的股息啊，除免考虑掉去年的特别股息分红的，我只是说在我们去年的这个正常分红每股6毛1的基准上面，今年我们能不能就守住这个底线？谢谢。

A clarification on the question on WH dividend. When talking about whether WH can maintain the dividend per share versus 2025, the 2025 number should exclude all the special dividends.

Just the base should be just the ongoing dividend, interim and final dividend. In 2025, it was 61 Hong

Kong cents. 罗总，我来回答你这个问题。关于这个万洲的这个分红，首先呢，我们有两条不变：一个呢是万洲的分红政策不变，那我们还是呢按照每一年会分不少于50%的当年净利润的这个政策来执行；第二个不变呢，就是我们之前也跟所有投资人去沟通，我们还是希望能够为我们的投资人提供一个良好、稳定的这个回报。那这一点，我们的意愿也是不变的。在今年的这个中期的分红的时候，我们也考虑评估了万洲的整体的资产负债，还有现金流的情况。最后决定呢，我们会派发这个0.2港元每股的中期分红，跟去年是没有变化。

Response from Joanna, the company CFO. First, our dividend policy has not changed.

The dividend policy is no less than 50%-- the payout ratio is no less than 50% of the net profit attributable to the owners of the company. Number two, we have a strategy or business philosophy of delivering stable returns to our shareholders.

For the interim dividend, after considering the company's balance sheet, cash flows, we have decided to pay 20 Hong Kong cents per share interim dividend, which was same as last year.

好，谢谢Joanna，也谢谢刚才马总的这个详细的这个回答。预祝公司下半年业绩呢能够取得更大的进步啊，谢谢。 好。下一个Tiffany，Tiffany请提问。

哎好的。郭总好，万洲的各位管理层，你们好。我的第一个问题呢还是想再跟进一下这个股息。就刚刚那个双汇这边马总也回答到了嘛，那我就想再跟进一下这个，意思是说后面会不会补发呢，还是说在年末会补上这一块金额？然后那么这次万洲派息的这个资金来源，除了Smithfield的派息以外，就还有哪些呢？这是第一个关于股息的跟进。第二个呢是关于我们中国业务这边，就公司对下半年以及明年的这个猪价是怎么展望的？那么就是我们看到双汇中报有一个3亿多的一个冻品减值嘛，那这部分减值在下半年有没有冲回的可能？然后第三个问题呢就是关于这个双汇的这个抗生素的这个事件之后，政府调查的这个结果现在有没有一个可以沟通的这个这个东西？然后如果涉及罚款的话，估计会有多大的体量？谢谢。 Three questions from Tiffany of Citi.

First follow-up question relates to dividend. Per Mr.

Ma's comments earlier, will Shuanghui pay dividend to fill the gap that has for the interim dividend in the next few months, or will use the higher final dividend to fill the gap of the interim dividend? For WH Group, what is the source of the cash flows for the interim dividend?

Secondly, what's Shuanghui's outlook of hog price in the second half as well as for next year? In the interim report, there's a roughly 300 million RMB of inventory write-down because of low hog/pork prices.

Is it possible that this write-down will be reversed in the second half? Number three, what is the latest progress of the investigation of the antibiotic incident?

If there is a potential penalty, a monetary penalty, what would be the estimated size? 好，我来回答这几个问题啊。我是双汇发展总裁马相杰。第一个关于这个股息问题，中期不分红刚才我解释了，就是因为我们淡储旺销暂时需要较充足的现金流。到年底的时候，它不存在对中期这个补不补的问题了。到年底分红是根据我们当时现金流的情况，以及这个经营的需要，到时董事会会研究，会有个正常的分红。但是这个保持较高的分红比例这个政策我们是不变的，这是第一个问题。

The first question, the decision of not paying interim dividend is really driven by the strategy to build some low-cost inventories. For the final dividend, the board will evaluate based on the cash flows at that time.

For Shuanghui, the philosophy or the policy of paying a relatively high payout ratio has not changed. 第二个问题关于猪价，我分两个两个部分跟你讲，一个是下半年的猪价，一个是明年全年的猪价。今年下半年的猪价，我们预计比上半年呈温和上涨趋势。也就是说下半年的猪价会比上半年高，但是高得不多。

For the hog price outlook, for the second half, we expect moderate increase in hog price in China compared to the first half. Which means that it will be higher than the first half, but will not be significantly higher.

对于2027年猪价，明年的猪价，全年预计会比今年高，但是高得不多。趋势也是和今年一样，上半年低，下半年高。

For 2026, we also expect the hog price will be moderately higher than 2026. In 2027, will be moderately higher than 2026.

The trend will be similar to this year. The first half is relatively lower compared to the second half.

第三个问题关于减值的问题，我们的减值是严格按照会计准则计提的。下半年能能否体现，理论上或者体现多少，与下半年的生猪行情这个关系比较密切。猪价高，它可能会体现得多一些；猪价低于我们预测，可能会少一些。 With respect to the inventory write-downs, we strictly adhere to the accounting standard and policies.

Whether there would be reversals, it will depend on the movement of hog price. 第四个问题，还是建议以后期的这个公告为准，谢谢。

With respect to the investigation, please follow the future announcement.

哎好的，谢谢马总啊。就是再跟进一下，万洲这边我们派息的资金来源除了Smithfield的派息以外，还有哪些？ Tiffany，这个问题呢，当然万洲的派息呢很大程度上它的资金来源是来自它下属各地的经营的公司、经营的企业，这个呢包括中国、美国、欧洲。但是呢，在每一个分红的时点，那在万洲的控股层面，它并不一定是分红的金额跟时点是完全一致跟配合的。这个呢过往是这样，未来也有可能是这样。但是呢，在整个万洲来讲，我们对于实现我们刚才说的两点不变，是没有任何的重大的压力。

With respect to the cash flow for WH dividend, ultimately the cash flows are all, as you mentioned, are from the dividend from our subsidiaries in China, in the US, and in Europe. From a timing perspective, the cash flows historically and also in the future does not necessarily always match one-by-one, match exactly from a timing perspective.

As explained earlier, there's no change in our dividend policy, and there's no change in our dividend philosophy.

好的，谢谢Joanna，谢谢郭总。 好，下一个请那个Veronica，UBS。

喂，你好，请问可以听到吗？ 听到听到，请提问。

郭总、马总，各位管理层好，我是UBS的宋婷Veronica。那我这边有两个问题：第一个关于中国的肉制品，我是想追问一下，因为前面咱们也提到呢上半年做了很多重点渠道的这个费用投入，那我想问问有哪些重点渠道，然后我们投入之后的效果如何，比如说这些渠道的增速、收入的占比有什么变化？那第二个问题呢是关于美国的，美国的肉制品呢我们确实看到二季度的吨利和销量都稍微有一些压力，我想请教一下管理层，就是美国肉制品目前的一个消费整体趋势怎么样，然后我们的产品结构，比如说B端、C端的这种结构占比有没有一些变化？下半年肉制品的吨利我们是怎么样展望的？就这两个问题，谢谢。 Two questions from Veronica of UBS.

First relates to China packaged meat business. As Mr.

Ma commented earlier, we have stepped up investment in some key growing channels. What are the effects of or the returns of this investment, any changes in terms of the growth, in terms of market shares, or in terms of business mix change?

Secondly relates to the US packaged meats. We noticed a relatively soft volume and profit per ton in the second quarter.

What are the latest consumer trends in the US? Are we making some changes in our product mix to adapting to these consumer trends, and what would be the outlook for the second half of US packaged meats?

第一个问题请马总回答。

第一个问题我来回答一下，我是双汇发展的赵国宝，主管肉制品这个板块的。我们在这几年整体上加大了对市场的投入。那么我们从上半年情况看，我们在肉制品渠道上重点是两大块：一块是我们过去的传统渠道，我们也在适度加大投入。那么在这一块我们投入之后，我们过去的几年传统渠道基本上是以下降为主的，今年上半年我们传统渠道实现了止跌回升、微增长，也就是说由过去的下降实现了增长。这些渠道包括我们一些AB商超啊、CD网点，包括批发市场。那么另外我们重点倾斜和加重了对新渠道的开发和支持。那么新渠道我们上半年实现了43.8%的增长。这个是我们去年以来就保持了较高的增长，我们还在继续做，实现了也就是说上半年还有43.8%的增长。那么整体上促使我们上半年肉制品的销量有9.1%的增长。这也是我们通过专业化改革和精准的市场支持之后，这个渠道传统渠道企稳了，那么新渠道还保持了高速的增长。回答完毕。

On first question, response from Mr. Zhao, the President of Packaged Meat in China.

We indeed stepped up investment in the market in the first half. In the past, the traditional channel contributes to most of our business.

We also stepped up investment in the traditional channels. In the last few years, we have seen declines in the volumes in traditional channels, but this year, we have stopped the decline and achieved a small year-over-year growth.

The traditional channels include some supermarkets, small grocery stores, and also wholesale markets. For the new channels, it is indeed growing much faster, and we invested in this growing emerging channels.

In the first half, the growth from the new channels or emerging channels was 43.8%. This is on the back of a few years of last year's very strong growth in the new channels already.

With our investment in the market, we have achieved a 9.1% volume growth for the first half. 这个美国这方面的请那个Shane来回答。

Mark,

maybe I'll start and you add anything I miss. Xiaoming, would you like me to stop along the way to translate or just go all the way to the end of my answer?

Yes, you can finish your response.

Thanks, Veronica. When I look at the second quarter, one thing I would point out when you're looking at profit per ton or volume, it's important just on the second quarter, it's important to keep in mind that the Easter holiday here in the US was actually in the first quarter this year as opposed to being in the second quarter last year.

There's a little bit of a timing shift on some of our higher-volume holiday ham business. In general, when I think about packaged meats and I look at the quarter, yeah, I feel really good about how the business performed, and that's especially considering the environment that we're operating in.

Here in the US, consumers are still being very cautious, and volumes across a lot of the packaged meats portfolio have remained under pressure, and we're all dealing with higher operating costs. Even with that backdrop, we held our volume share, we've continued to improve our mix, and we saw operating margins for the quarter at 13.1%.

We're pleased with that. What we're also pleased with is that we're seeing some momentum from areas that we've been investing in for really several years now.

When you look at the quarter, our points of distribution were up about 6.2%, and we saw multiple brands in our portfolio gain shelf space. We're seeing a lot of strong results from some of the innovative products like Prime Fresh or Nathan's grass-fed hot dogs, our Eckrich smoked sausage.

The innovation piece of our portfolio is really playing an important role, and that accounts for about 20% of our year-to-date volume coming from products that have been introduced through that innovation pipeline. Some of the investments we've also made in the first half that we saw benefit from but are also setting us up for really confident second half is some of the strong returns we're seeing from the investments we're making behind our brands.

Our marketing support was up, the e-commerce volume grew by about 21.7%. We saw our Gen Z dollars increased by about 15.2%.

We're continuing to bring a lot of younger consumers into the brand. As we think about the second half and the confidence we have there, our focus really hasn't changed.

We like the balance of the portfolio right now. We're going to continue to build our business innovation through distribution gains, through stronger marketing support, and then continuing to move our mix that mix of higher-margin, value-added product.

I think there's still a lot of opportunity ahead of us there. All of these things that we've done in the first half of the year are really setting us up nicely with a lot of momentum as we go into the second half of the year.

Really confident in our packaged meats business and how they performed in the first half considering the environment, and how it's placed us for what we believe is going to be a strong second half in packaged meats business.

Shane Smith的回复呢，第一个就是说今年二季度和去年同比呢会有一些季节性的影响，因为去年的复活节的销量主要是在二季度，今年主要是在一季度，所以这个会影响一些节日火腿的产品的一个销量。但是总体来说，他对Smithfield在现在的消费环境当中的这个表现还是比较满意的，因为从消费环境来说呢，消费者现在非常的谨慎，也使得呢整个行业很多产品的品类的销量都出现下滑，而且我们也面临着非常高的一个运营的成本。在这样的一​​个情况下呢，我们按销量计的市场份额呢基本上是稳定的，而且我们还不断地优化了我们的产品结构，也是现了13.1%的运营利润率。对于这样的一​​个结果呢，也是比较不错的。我们的这个分销的产品的这个我们产品的铺货率呢，今年也是有很大的提升，提升了6.8个百分点。然后也就意味着我们在很多的這個渠道呢增加了我们的这个陈列。我们也进行了很多产品的创新，包括我们的这个Prime Fresh的产品，包括Nathan's的草饲牛的热狗产品，以及Eckrich的烟熏的肉类的产品。我们今年有20%的销量呢都是来自于这几年所做的一些产品创新而实现的。对于下半年来说呢，我们还会持续地对品牌进行投入，而且我们也相信上半年所做在分销和品牌营销方面所做的工作呢，可以为我们下半年的销售打下很好的基础。我们今年看到呢，我们在电商渠道的销售增长了销量增长了21.7%，对年轻的Z世代的这个消费者的销售呢增加了15.2%，这也是令人可喜的一个结果。下半年我们会继续地专注于产品的创新，专注于产品分销的一个网络的拓展，专注于对我们营销的一些这个营销的这个工作，还有产品组合的优化，来销售更多的高利润的一个产品，来改善来进一步改善和提高我们的肉制品的业务。所以我们对上半年其实是为下半年的经营打下了一个很好的基础，对于下半年的这个肉制品的业绩也是很有信心。

明白，感谢管理层的分享。Thank you, Shane, for sharing as well.

好，那下一个请Lilian吧。摩根士丹利的Lilian，请提问。 好，谢谢管理层。我有两个问题：第一个问题，中国的可能想接着刚才对这个渠道或者是肉制品的量的一个拉动力吧。如果看新渠道的话，现在看整个新渠道的大概量现在占比是多少？如果下半年如马总刚才最前面介绍，对今年下半年量正的成长还是非常有信心，除了低基数、除了之前的一个投入之外，我们这个渠道，特别是传统渠道如果占比依然很大的话，下半年是不是还是能够保持一个正的成长的态势？这是第一个关于中国的。第二个是关于Smithfield吧，就是美国基本上由美国，因为在8月11号公布业绩之后，就是三个子板块业务的全年指引都有下调。那么如果对比一下2025年的这个净利润，总总额上讲，其实上游的业务包括养殖和生猪和屠宰，它的利润都比去年要低了，也就是说总的利润年对年是要下滑的。这个背后是隐含着除了消费力比较弱之外，对猪价和饲料成本的一个判断，还有肉价的这个spread的判断是怎么样子的，想理解一下背后的一个原因。我就这两个问题，感谢。

Two questions from Lilian of Morgan Stanley. First relates to China's packaged meat business.

In terms of the channels, what is the contribution of the new channels in the sales volumes? Second half, what's the how confident are the company on the positive growth in the traditional channels in the second half?

Second question relates to US US business. In the August 11th earning release, Smithfield has revised down the guidance for all the three operating segments.

For the upstream business, including hog production and fresh pork, the operating margin guidance are lower than last year. In addition to the cautious consumers, does this guidance revision also reflects changes in the hog price, feed cost, and meat prices in the US?

What are the drivers of the decision to revise down the guidance for hog production and fresh pork?

好，我回答第一个问题啊。刚才赵国宝已经讲过了，我们从去年下半年开始啊，我们新渠道发展都非常好，都是大概两位数增长。今年上半年实现了二季度啊40多的增长。目前的占比，就上半年的占比24%，24%。下半年会继续保持高增长，占比会更高。下半年的占比比上半年还要高，我预计全年会达到25%。后期的规划通过2到3年的时间，从去年开始啊，我们力争把它达到30%以上，谢谢。

For China's new channels, since the second half of last year, we have been achieving double-digit growth in volumes. First half growth was 43% from the new channels, and the first half contribution in terms of volume was 24%.

In the second half, we are confident that it will maintain very high growth, and we expect the full year contribution will be 25% in terms of volume. We also expect the new channel growth will continue in the next 2 to 3 years and will exceed 30% in the next 2 to 3 years.

Xiaoming, this is Mark. I'll take the guidance question.

Our team and the business model have really proven resilient in delivering record first half results, but as you indicated, we are tempering our 2026 outlook. It really primarily reflects lower hog prices in hog production, and packaged meats and fresh pork continue to be challenged by a cautious consumer with lower demand and higher input costs.

I'd say our guidance really reflects the commodity markets as we see them today. We're incorporating in the current hog future strip, our expectations for spreads in fresh pork, and continued consumer softness.

We're also seeing higher freight diesel and resin cost. We believe that the assumptions are appropriately prudent given the external environment.

From here, I think the largest potential upside drivers would be better than expected fresh pork spreads, stronger packaged meats volume from the distribution gains and innovation that Shane had mentioned. I think we could also see a tightening of hog supplies that improves the market pricing later in the year.

The largest risk for us really remains the commodity prices and consumer demands, but as Shane mentioned, we're seeing a lot of strength in the packaged meats business. Distribution points increased by 6.2% in the second quarter.

He mentioned Prime Fresh was up 18% and really getting some traction with the Nathan's grass-fed business. Additionally, we continue to grow our e-commerce share, that was up by almost 22%.

I think that, coupled with the investments that we're making in marketing and advertising the second half, certainly for the packaged meats business, looks to be very strong.

关于美国的這個指引的下调呢，主要也是反映了现在最新的一个对于大宗商品价格的期货或者说市场预期的一个价格，以及现在整体比较谨慎的一个消费者。那么对于生猪养殖业，这个猪指引的下调主要也是反映目前从期货的角度看到的比较低的一个猪价的一个情况。对于肉制品和屠宰业呢，新鲜肉产业呢也是看到了一方面是比较谨慎的消费环境，另一方面也是各项费用成本费用的一些压力，尤其是像运输费用、柴油，还有包装树脂包装材料等等。那么当然所以我们相信现在最新的一个指引呢也是足够的审慎的一个假设，基于比较审慎的一个假设。然后我们也相信以后这个业绩也有向好的一些空间，比如说如果肉猪价差能够适当地扩大，然后刚刚Shane所提到的肉制品的铺货率的增加可以给我们带来更好的一个销量，以及对于生猪养殖业来说，如果生猪的供应由于各种这个因素的影响，而使得它比期货的预测更加的紧张一些，这些都可能对我们未来实际的业绩带来利好的影响。但是我们整体来说，整个业务还是有很多内在的很强劲的这个表现，比如说我们的刚刚Shane提到的肉制品业的铺货率的一个增加，我们尤其是像我们的这个Prime Fresh产品，它的这个铺货率增加了18个百分点，然后我们Nathan's的全草饲牛肉的这个热狗也是有非常好的一个表现，我们在电商也是持续地维持了一个很高的一个增速。 好，那下一个请这个高盛的Valerie。

哎，感谢这个提问的机会。郭总、马总，各位管理层好，我是高盛的消费分析师周杨Valerie。那我这边的话可能还是想再跟进一下我们中国的肉制品业务这边，就能不能也请管理层帮我们介绍一下最近看到的7、8月份以来的经营情况？那另外的话是在吨利这边，因为我们看到去年三季度其实吨利的這個基数会非常的高，那当时也是有这个节庆产品的结构性的影响，但现在我们的这个新渠道的产品结构也相对来说会更多，那在吨利这边的一个季节性怎么去看？这是我第一个问题。第二个问题的话想理解一下，因为我看到我们做了挺多的这个淡储旺销的冻肉库存动作，那能不能帮我们理解一下这部分的话可以支持多少个月的这个生产，以及在我们下半年和明年猪肉温和上涨的这个假设下，对利润会有多大的支撑？谢谢。

Two questions from Valerie of Goldman. First relates to China's packaged meat business.

What's the latest observations in the market in July and August in terms of the packaged meat performance? Last year, the third quarter profit per ton was relatively high due to the holidays.

This year, given the higher contribution from new channels, what is the outlook for the profit per ton? Will last year's high base create some difficulties to achieve growth?

Secondly, as mentioned earlier, the company has taken a lot of low-cost inventories to support future packaged meat business. What's the scale of this inventories, how many months of operations could this low-cost inventory support, and what would be the contributions to the profit?

好，我来回答这个你第一个问题啊。其实刚才吨利的情况咱前面都说了一下，我们今年的一季度有个较高的吨利，二季度这由于淡季的影响，以及我们市场费用投入的增加，二季度吨利同比下降了500左右，导致上半年吨利比去年有所下降，降幅很小。三季度的7、8月份，包括9月份，这随着旺季的到来，以及我们市场投入费用的软化，这个吨利会明显好转。全年预计吨利比去年基本持平，略有下降，依然维持在一个较高水平。谢谢。

In terms of packaged meat profit per ton, in the first quarter, our profit per ton was very high. In the second quarter, it was much lower because of the low season, also because of our stepped-up investment in marketing.

The low profit per ton in the second quarter has resulted in a small decline in the first half profit per ton. In the third quarter, as we enter into the peak season and also as we rationalize our marketing investment, we expect a meaningful improvement in profit per ton.

As explained earlier, the full-year guidance is the profit per ton is generally flat compared to last year or a very small decline compared to last year. 第二个问题是马总说那个冻品储备的问题。

啊？第二个-- 第二个冻品储备的问题。 我们听到第二个冻品储备怎么了？我没听清刚才，对不起。

对，我想理解一下就是在咱们这个冻品储备上可以支撑我们多少个月的生产，以及在我们现在这个猪肉价格的背景下假设下，我们对利润会有多大的支撑和帮助？谢谢。 我硬讲是这个这个问题啊无法给一个具体的数字化的指引，因为这个冻品我们始终保持有一定的冻品库存，它是个延续性的。猪价低一些的时候，我们就会增加一些库存；猪价高一些的时候，我们会减少一些库存。猪价越低，我们增加的库存越多。而且一旦入库以后，它是一个平摊的成本，不是说一批一个价格。所以当期体现在报表上，包括下半年的报表上这个储备带来多少利润，这个账是算不出来的。

理解，很清楚，谢谢，我没有其他问题了。 It is very difficult to quantify the impact of the inventory buildup because it's a very dynamic process.

We increase our inventories when the hog prices are low and reduce inventories when the hog prices are high. Once the raw materials are put into the warehouses, they will amortize the overall cost base.

It's a very, very dynamic process and infeasible to quantify. 好，下一个问题请那个中金的吴宇新。

感谢管理层领导们的时间，我是中金食品组的宇新，然后还是想请教两个这个小问题。那一个呢是关于这个国内市场，因为我看到这个上半年销售费用里面的广宣和这个促销费是增加了30%，然后这个的话就是麻烦马总再帮我们展望一下下半年的这个销售费用的一个趋势。然后第二个呢是关于美国市场的，我们现在也看到厄尔尼诺的这个影响下呢，现在投资者对于这个全球的玉米价格是会有一些上涨的这个担忧，然后我们怎么看待这部分的一个影响，然后以及有没有一些这个可以去锁价的这种措施和动作？以上是我两个问题，谢谢。 Two questions from Wu Yuxin of CICC.

First, on China business, in the first half, the expense in relation to advertising and promotions increased 30% year-over-year, and what's the outlook for the second half? Secondly, relates to the US business.

As there has been a lot of speculation about the impact of El Niño effect on the global climate, which may result in higher corn prices. Investors are concerned about the negative impact from higher corn prices.

How will that impact our business in the US and can we take some measures to hedge against this risk? 好，我回答你第一个问题。今年上半年呢，尤其在二季度，我们是明显增加了市场的投入，所以体现在报表体现在我们费用这个增加较多，也影响了当期的盈利的情况。下半年我们会计划是要一个较大幅度的缩减这个费用，具体的缩减还要看市场的变化情况，这个动态调整。谢谢。

In the first half, particularly in the second quarter, we have indeed significantly increased spending in marketing, and that has impacted our results for the second quarter. In the second half, we plan to significantly rationalize our spending in marketing, but the exact magnitude will depends on the market environment.

I'll

take the second one. We also pay a lot of attention to the El Niño weather patterns, but in the context of overall global weather patterns and their impact on corn and soybeans.

We do have a very robust hedging program, and so we do take advantage of that where we see opportunities. The good thing about corn is there is longer-term liquidity in the futures markets, which can allow us to take longer-term positions in corn.

While we don't give our hedging positions away, I would just say that that is a key part of our overall strategy. Outside of corn, we also have to play in all the structural improvements that we've made in the business from the way we buy corn through investments we've made in grain elevators through the country, and how we've converted some of our corn usage into bakery by-products to offset some of the volume requirements we have in corn to maintain that carbohydrate level.

We have a very robust feeding program and we have a very robust hedging program, and we use both to the benefit of the company. 我们也在密切地关注这个厄尔尼诺现象对于玉米和大豆价格的影响。我们也可以采取一些措施来尽量地去消化这些影响。第一个就是我们有一个非常有效的对冲的这个策略，而且对于玉米来说呢，它期货的流动性的时间会比较长，所以我们也有助于我们可以锁定长期的玉米的这个价格。第二个呢，我们也可以去改进我们的这个业务的结构，包括我们在全美投资了一些粮食的这个升降机，来改善我们采购玉米的这个流程。另外呢，我们也可以使用一些面包的副产品来代替一部分的玉米，来使得这个饲料当中的碳水化合物的这个含量保持稳定。所以我们有非常强劲的饲养的体系，也有非常强劲的对冲的体系，两个体系结合来应对这个大宗商品价格的波动。

好，那由于时间关系呢，我们今天业绩发布会到此结束。谢谢各位分析师，谢谢各位管理层。

Due to time constraints, this concludes today's call. Thank you to management and to all participants.