Introduce the management to you. They include Mr. Wan Long. Mr. Guo Lijun, our CEO. Executive Director, Mr. Ma Xiangjie. Mr. Liu Songtao from Smithfield. CEO, Shane Smith from Smithfield. Vice CFO, Mr. Glenn Nunziata. CFO, Madam Zhang. I'm Wan Hongwei, the MC. Mr. Guo will first take us through the third quarter performance and then we will proceed to Q&A. To investors and analysts, good evening. I will take you through the first three quarters financial summary and also a review. We have achieved our packaged meats sold, 2,433,000 metric tons and pork sold represented a drop of 7%. Revenue grew by 1.7%. EBITDA realized $2.134 billion, up 17.4%. Operating profit, $1.645 billion, up 25.2%. Profit attributable to owners, $914 million, up 14.6%. Basic earnings per share, $0.0712, up 32%. If you look at our segment revenue and operating profit, packaged meat is still our main contributor, standing at 52.1%. 42% comes from pork, 5.9% from others. First three quarters operating profit $1.645 billion, among which $1.53 billion comes from packaged meats, $126 million from pork and a loss of $12 million from others. If you look at revenue by region, China's contribution 33.5%. 47% of operating profit. U.S. contribution of revenue 56.3% and operating profit contribution 47.6%. Europe, 10.2% contribution to revenue and 5.3% to operating profit. For the first three quarters, our prices in China bottomed out and rebounded. In the U.S. market, both our prices and pork cutout value remained at high levels due to inflationary pressure and decreased hog supplies. Average carcass price in the EU increased substantially as hog producers reduced supplies given the impacts of ASF and high costs. For the first three quarters, number of slaughtered hogs in China increased by 5.8% to 520 million heads. Average hog price in China per kilo, CNY 17.24, a drop of 22.5%. In the U.S., number of slaughtered hogs in the first three quarters dropped by 2.8% to 92.8 million heads. Average hog price, $1.7 per kilo, up 3.8%. In the E.U., the average hog price, EUR 1.37 per kilo, up 18.3%. For our performance in China, we achieved $775 million in terms of operating profit. Margin up by 13.8%. Packaged meat grew by 7.4% to $712 million. Pork, $59 million, an increase of $114 million. In the U.S. market, $783 million in terms of operating profit, up by 48%. Packaged Meats, $745 million, up by 42%. Pork, $85 million, an increase of 2.6 times. In Europe, operating profit, $87 million, a drop of 17%. Packaged Meats, $74 million, drop of 10.8%. Pork, a loss of $18 million. $31 million less compared to last period. We will continue to consolidate global resources, accelerate industrialization, so scalability and diversification, improve level of industrial intelligence, automation and information technology, enhance our competitive strength, maintain our leading position. That is my report. Thank you. 好，下面第一条问题来自于美银美林的罗晨。罗晨，您请提问。 感谢管理层。那我这边有两道问题，分别是关于中国和美国的。那我先问中国的这个问题。那么，我们看到三季度中国的肉制品的吨均利，其实已经回归到一个相对比较正常的水平。那考虑到目前持续上行的国内的猪价，以及在未来几个季度我们可能看到一个高基数，那我们能不能对于接下来几个季度的猪价和一个比较合理的肉制品的吨利做一个大致的展望？那么面对接下来的一些上行的成本，我们会有，有没有一些对策，包括在上一次的这个上行周期的时候，我们当时曾经做过的一些大规模提价，那么在未来的十二个月我们有没有可能去考虑？那我先问这个问题，关于中国的。待会儿的话，我再向Smithfield管理层问一下这个有关美国的问题。谢谢。 Thank you. I have two questions. One concerns China and the second one concerns the U.S. I will first ask the question in relation to the China business. I can see that in Q3, the packaged meat per ton profit level has more or less returned to the normal level. Now that we see a rising trend for the hog prices and that represents a high base figure. Can you provide some sort of projection in relation to the future hog prices and also the per ton profit level? Do you have any strategies in relation to the rising cost? I do remember in the past you have readjusted upward your product prices to tackle this issue. What is your current strategy? I will ask my second question later in relation to the U.S. business. 商会团队请回答这个问题。 这个问题我来回答。涉及的内容比较多，我先讲讲这个对猪价的判断。首先今年以来的猪价整体来讲是先低后高的，也因为这个成本的原因，带动肉制品的吨利是先高后低的，一季度最高，二季度有所下降，三季度基本上都回归一个正常的吨利。我们在今年吨利一般仅维持在四千左右，三季度是受这个成本明显上升的影响，吨利有所下降，但回归到正常水平。那刚才这位分析师也讲到，四季度的猪价整体均价比三季度还是要高的。但趋势呢，四季度逐年是下降，是这样一个概念。所以四季度的这个吨利比三季度应该还会有所下降，但降幅不大，这是四季度的。明年呢？对，先翻译一下吧。 Thank you for your question in relation to the China business. When we look at the trends for hog prices, very often we see that the year will normally start from a low point and then it will get higher as time passes. When we look at the per ton profit level trend, it is a reversed trend. In other words, it will show higher levels at the beginning and then it will drop gradually. In the first quarter, we have seen high level of per ton profit and then it began to drop in the second quarter and it normalized in Q3. When we look forward to the fourth quarter, we believe that the per ton or the average prices in the fourth quarter will be higher than Q3 and therefore the cost will be higher compared to Q3. And therefore the per ton level in Q4, compared to Q3, we believe there is still room for further reduction but the reduction extent will be quite limited. 好，这个明年的猪价，我们目前的判断是两句话：一个全年的均价基本和今年相当，而明年的趋势是先高后低，和今年正好相反。 As for our projection for the coming year. First of all, basically the average price for the entire year will be at a comparable level compared to 2022. As for the trends next year, we will expect higher levels at first and then it will go down gradually, which will be the opposite of the trends this year. 两年的猪价相当，但是由于今年我们有低成本的储备原料，所以相对来讲，明年肉制品成本比今年会有一定额度的上升。 While the hog prices are comparable between the two years, we have a very good reserve of low cost raw materials this year. In other words, next year's packaged meat product cost will definitely be higher. 我们的吨利仍然要维持在四千左右，如果没有这个一定措施的消化的话，明年的吨利会下降。所以从今年四季度，现在我们已经开始采取了一系列的对冲成本上升的措施，来确保明年的吨利比今年稳中有增。 Our target for per ton profit will continue to remain at the level of CNY 4,000 or around CNY 4,000. Since the beginning of the fourth quarter, we have already adopted a number of hedging policies or measures, so as to tackle the issue of rising cost, so that we can ensure the per ton profit level will continue to be very stable with some increase for this year. 我们明年这个对冲这个成本上升的措施主要有五个方面。首先第一个是通过生产管理的创新降低这生产费用。 In relation to such hedging measures, I can take you through five major areas. First of all, we will carry out innovation in terms of production management so that we can continuously suppress the production cost. 主要的做法是通过集约化的生产，合并车间，合并班组，提高生产效率，降低工资性费用。 We are going to have a concentrated production. We will also merge different teams wherever necessary, so that we can enhance the overall level of productivity and efficiency and at the same time suppress wage increases. 第二个措施是抓技术创新，优化产品的工艺，降低吨利配方成本。 The second area of measures would include innovation in terms of the technologies we use and also optimization of our technologies so that we can reduce the per ton cost. 第三个方面是通过市场的创新淘汰这个销量潜力差、盈利水平低的产品，让市场资源腾给盈利比较高的主导新品，通过调结构提高整体盈利水平。 The third area of our strategy will be in relation to market innovation. In other words, we are going to gradually phase out products that have less potential for sales and also with a lower level of profitability. Therefore we can free up resources for better products that will bring us more revenue and profit. 第四项措施是通过落实我们的网点倍增计划提升市场的服务，通过提高成交规模实现利润的提升。 The fourth area will be in relation to our plan to increase the points of sales in our network. We will continuously enhance our services to the market so that we can expand the scale of sales and realize more profit. 以上这四项措施现在已经具体的做法已经开始推广，明年上半年根据推广的情况，我们拿了一个部分产品的涨价的方案，到时候根据情况来实施。 All these measures that I have just mentioned have already been implemented and we will report the most updated situation to all of you, when we have a better understanding of the data we collect for the first half of next year. We will consider if we need to make upward adjustment to our product prices. 这是你刚才问的最后一个问题，就是明年是否涨价的问题。是否涨价，就看明年成本上升的实际情况和我们预测的差异，以及我们以上四项措施推广的效果。如果能实现我的吨利在四千以上，那就不涨价了；如果达不到我们的目标，我们都会调价。 This is basically in response to your question about whether we are planning to adjust the product prices upward next year. Whether that is going to happen or not depends on the actual situation in relation to the cost and also the progress and effect of the four measures I have just mentioned. If we can't maintain the per ton profit level at $4,000, we would then consider reducing the prices of our products. 回答完毕了，谢谢。 The answer is complete, thank you. 好，谢谢管理员。那接下来我这个问题是关于美国的，我先用中文先说一遍，然后再用英文翻译一下。那美国其实也是关于肉制品的这个吨利的问题的，因为过去几个季度吨利处在一个超水平的，这个就是超正常的水平上。那随着接下来美国的这个经济的这种下行的压力，以及持续上升的成本，那么我记得我们公司之前设定的目标是认为我们一个比较正常的吨利是能够在一个$600以上的这种水平。但是有没有可能会存在一些下行的风险？那么我们会采取哪些措施来对冲这些风险？ My second question is in relation to the unit profitability of our U.S. Packaged Meats business. We understand that the $600 per ton for Packaged Meats was above normal in the previous quarters. I do believe that our long-term target is to maintain our $600 per ton at a level of above $700 per ton. Given the current rising cost pressure and potential economic weakness in the U.S., are we seeing any downside risk to our long-term target in the near term? What kind of measures are we taking to mitigate this kind of pressure? Thank you. Shane Smith, care to take this question? Yep. Thank you, Robert. Our Q3 Packaged Meats continued to demonstrate our strong profitability. When you look at our performance in Q3, it's really the continuation of the previous four quarters as we continue to experience growth. We've seen strong growth in both branded and private label and I would tell you that we're really nicely positioned to take advantage of changing consumption patterns. To the level of profitability you were talking about, we are projecting Q4 to be our second-best quarter in Packaged Meats only behind last year's performance. We do expect to see some pressure, some downward pressure on profitability per ton due to the current economic environment. I would tell you we still have profit expectations of in Q4 of a range of about $600 a ton. You know, the second I'll let you translate. I'm sorry. This level will be closer to our historic performance. The first half of 2022, we really saw historic levels of profitability where we were in a situation where demand exceeded supply in the industry and that was a result of different labor challenges. This dynamic allowed us to really pull back on some promotional activity and set the stage for the record earnings we saw in the first half of the year. As we move into the second half and into the fourth quarter, our product mix really shifts more toward our holiday ham business and that business historically has a much lower margin than the products we sold in the first half. You are correct. We do expect to continue to see some pricing pressure in the U.S. market with labor really coming back throughout the U.S. We see our key competitors really promoting with a lot more frequency and a lot more depth. Our reaction to that is really investing in price so that we can maintain velocities, use our own raw material and really protect our market share. This will be an ongoing concern for us as we transition into next year. I would tell you that we really do remain optimistic both in the near term and through next year, on segment profit and gaining some ground back on year-to-date volume. Thank you. UBS, Mark Yuan. 季度都是比较高的一个水平。这里面的话，是不是主要是一个冻肉的一个贡献，想请问一下这个理解是不是对的？那我们看明年的话，如果这个猪价是前高后低的话，那这样的话，我们这个冻肉的利润是不是会有所受影响？那对于我们整体明年的一个这个生鲜板块的这个投进利润啊怎么展望？这是第一个问题。 Thank you very much for giving me this opportunity to ask my questions. I have three questions in relation to the China business and later on I also have one question in relation to the U.S. business. First of all, in relation to the fresh meat department, I have some figures showing that your investment return or the unit profit was actually quite high compared to the previous records standing at $11 per ton. My question is, what is the contribution coming from the frozen meat segment? 他是问三个问题。我想回答你这个第一个问题。你的这个算术说基本准确，我们三季度的这个投率比较高，大概达到九十元左右吧。主要是三季度的猪价是明显上涨带来的前期储备的冻品利润释放出来。所以三季度的投率主要将近八十左右是冻品带来的。因为猪价高的时候鲜品盈利比较困难，鲜品的盈利占20%左右，冻品盈利占80%左右。 Thank you very much for your question. In relation to the profit level for the third quarter, I can share with you it is standing at about CNY 90 or so. This is mainly because in the third quarter hog prices have been rather high and that creates a rising trend for the profit for frozen meat products. The contribution from the frozen meat segment is about 80% while fresh products takes up about 20%. 明年的猪价的趋势和今年正好相反，明年猪价先高后低，没有做冻品的机会。所以明年生鲜品的利润主要靠鲜品。 As for the trend of hog prices next year, it will be the opposite compared to this year. In other words, we will first see higher hog prices and then gradually the price level will go down. There is less opportunity or no opportunity for us to do much work in relation to frozen meat. I think next year our fresh pork business basically will have to rely on fresh products. 第一个问题就回答这么些，你看是不是随你想要的？ 好的，我想再接着这个问题，就是我们明年怎么看，就是投进利润跟今年的一个比较。如果没有冻品的话，是不是压力会大一点？ 明年这个冻品利润比今年是大幅下滑，鲜品利润会上升。所以明年是屠宰那个成本的价格由高到低，对鲜品是扩规模是有利的。所以明年的整体靠鲜品，靠规模，整体盈利比今年压力会比较大。 My follow up question after hearing your answer is how do you compare the profit level next year compared to this year? Because you mentioned that you can't really rely on frozen products anymore. Does that mean there will be some extra pressure on the profit level? Well, the answer is we will have to rely on fresh pork and fresh products to increase our profit level. We will expand the scale of slaughtering business. We do believe that the level of pressure on our profit overall will be higher compared to this year. 好的，那我请教第二个问题，主要是关于我们肉制品的量，我们看到第三季度的话，实际上是基本上跟去年同期是持平，这是挺不容易的，因为三季度整体的宏观压力都比较大。那我们现在对这个四季度还有明年的话，我们是怎么展望的？ My second question is in relation to the packaged meat business in relation to the volume. We see that Q3 actually showed a flat trend compared to the same period last year, which was not easy to achieve due to some macro elements and pressure. What is the way forward in relation to Q4? 今年肉制品的销量，不仅仅是三季度的压力很大，二季度压力也很大，但是这原因大家都很清楚了。年初的时候，我们预计全年会有一个较好的增长，但自从二季度疫情爆发以后，我们感到来自市场的压力主要是两个方面：一个方面是相当一部分城市因疫情防控而封城，影响了市场的流通。第二个方面主要是餐饮业，餐饮渠道大规模的歇业，对我们市场销售来讲造成很大的冲击。 To answer your question, you pointed out that there was quite a bit of pressure for Q3. Actually, I want to tell you, we also faced quite substantial level of pressure even in Q2 for packaged meat business. At the beginning of the year, we originally expected that there will be some growth in relation to the sales volume of packaged meat. Since there was an outbreak of the pandemic in Q2, we saw a reduction in labor and also there were quite hard hits on the food business. The flow of people was also reducing because of various restriction measures. We actually faced a lot of pressure in relation to the packaged meat business. At the moment, if we are to project what will happen in the fourth quarter, I can share with you that we expect a single digit growth in relation to the sales volume, which will partially offset the downward trend reflected in the first three quarters. In other words, there will be some growth in terms of the volume for the entire year. We expect that in the coming year, in terms of pandemic prevention and control measures, there will be different types of relaxation. In other words, this will be good news in relation to growing the volume of our packaged meat business. Overall speaking, we do expect a medium to high level of growth for the entire year next year because we can see that in terms of the launch and promotion of new products into the market in the second half of this year and also our implementation of our plan to increase the number of points of sales. Thank you. That is very clear. Thank you. Now I would like to move on to my third question, which is about new products or new business. I understand that you have launched some pre-cooked meals or products. I want to ask about the volume for this year and also the level of growth this year. Can you also share your strategies in relation to your condiments business? You are correct. We do have this new segment of business focusing on pre-cooked products or prepared foods. For the entire year, the sales volume stands at 32,000 tons, which represents a mild growth compared to last year. Based on the current situation in the market, we expect there will be quite substantial growth for pre-cooked products next year. We believe the growth will be more than 50%. The second part of your question, I believe is about mixed condiment packages. We believe the growth for this year will be around 16%. Originally, we expected even higher level of growth for this new business but unfortunately, some food business and restaurants had to cease operation this year and that created some impact on us. Thank you. What is the scale of sales of these condiments at the moment? If you are asking about the external sales level, it is about CNY 200 million or so. That's very clear. Thank you very much. Now I would like to move on to my final question in relation to the U.S. business. In Q3, I do see some losses incurred for the fresh pork department. Can you explain to us the reasons behind such losses? Beginning from October, I would like to know, are there any improvement in relation to the operations in the U.S. for your fresh pork business? Let me give a small correction. The question is actually related to the pork department instead of the fresh meat business. Am I correct, Mark? Yeah. That's correct. Shane Smith, please go ahead. Sure, Robert, this is Glenn. I'll handle the question. You're correct. The pork fundamentals were not good in Q3. The USDA carcass cutout, which is essentially our index for meat prices, did not keep pace with the rising hog price and rising costs, which we benchmark against the CME, which resulted in a segment loss of $22 million, compared to the Q2 segment profit that we generated. Commodity grain markets really were the problem. Grain markets remained extremely elevated due to the impact of global trade and events, specifically with respect to the Russia-Ukraine conflict. Regardless of the markets though, we're continuing to execute against our initiatives within that segment to optimize sales and profitability. We did continue for Smithfield to outperform the industry spreads that we saw in Q3 in the U.S. but obviously, the markets made it extremely challenging when that spread was compressed to the point that hog prices rose quicker than meat prices. With respect to the outlook, though, for the remainder of the year, first on hog production, we expect hog inventories to remain tight over the next several months. The USDA actually showed a little bit of contraction in those hog numbers. We do expect Q4 hog prices to remain elevated as compared to the prior year and we're still expected to see, you know, the typical seasonal trends in U.S. hog production, which is typically strong profitability in Q2 and Q3 with pressured profitability or even losses in Q1 and Q4. That seasonal trend will continue. What's interesting, though, is that corn futures are implying today that corn prices will remain above $6 a bushel well into 2023. We should expect to continue to generate some pretty high raising costs and as a result of that, even with the elevated CME hog price, our outlook for Q4 on hogs alone will be to generate losses. However, with respect to fresh pork, we should see that spread open up in Q4, which is important for our fresh pork business. One, as a result of those hog prices moving down. Two, with our efforts to maintain price and continue to optimize product mix so that we can outperform the industry meat spread. 好，感谢你的问题。我说说这个对于未来的展望。在这一个生猪出栏这一方面，我们相信这个存货持续会有几个月都是比较紧张的一个状态。同时，USDA他们在这一生猪的数字这一边，他们宣布的数字也是有一个收紧的趋势。所以，我们相信这个猪价在第四季度，还是持续保持在比较高的水平。同时，我们也预期，在第四季度或是整年吧，这个季节性的趋势在美国，还是跟以往是一样的，通常我们在第二季度跟第三季度会有一个盈利，然后，第一跟第四季度，就会受压或是有一些的亏损。这一趋势我们相信未来的这一年还是会持续下去的。在市场里面我们看到这个玉米的期货，这一个水位一直在六千这个水平，我们也相信它会保持这样的水平，一直到来年，就是二三年吧。我们会好好利用这一些市场里面的差价，同时保持我们自己产品价格的稳定，同时不断推出多类型的多元化的产品，希望是可以跑赢这个市场的。谢谢。 Glenn, let me confirm. You mentioned the corn future is $6 per bushel. Is that right? Yes。 Okay. 刚才说到这个玉米，那个水位应该是$6。 每蒲式耳。 The key point, Robert, being that, you know, year to date through 2022, our feed cost in the North American pork segment was up almost 25%. What I'm saying here is, despite historically high hog pricing that we've experienced in the U.S. well above the previous multi-year averages, the challenge we're facing is extremely elevated raising costs as a result of the feed input. Although we're going to continue seeing pretty good hog pricing, they'll decline on a seasonal basis here going into Q4. Our raising costs continue to be challenged by the global supply pressures around grains. Shane wanted to add one more thing here. I'll let you translate that and then I'll add one more. 其实呢，那关键是什么呢？在二年的时候，饲料的成本啊，我们看到有一个25%的增长啊。所以呢，市场同期里面有一个猪价保持在高位的一个情况。所以我们面对这一些的挑战呢，都是非常巨大的。虽然有这个高水平的猪价，同时呢，这一些季节性的势头呢，还会持续下去。同时我们面对生产那一端的压力，但是我们还是会非常努力地做好我们的工作。然后同时也有 I think the last part of that question was also about what are the measures we're taking to improve the profitability of the segment and I'll talk to those for just a moment. We have a number of initiatives underway beginning in our hog production operations that these initiatives will help us better manage those feed costs that Glenn talked about, through a number of initiatives, through feeding programs to genetics programs to health improvement programs. Then as we bring that over into the fresh pork side, we've implemented a number of performance measurements to help us monitor our current to historical and benchmarking to industry averages. We're continuously evaluating the markets to determine our optimal slaughter levels, our product mix, a number of initiatives to really offset some of these extraordinary inflationary pressures that we're seeing in the market. 其实呢，你刚才也问到，我们有怎样的措施来去进一步改善我们利润的水平。其实这一些的措施呢，有好多方面的。首先我想说说养殖业这一边吧。我们刚才同事也说到了，现在饲料那个成本是比较高，所以呢，我们已经推行了一个饲料成本管理的办法，尽量把这个成本压缩。同时呢，也有别的，就是跟养殖方面相关的一些工作也推动了，比方说整体去改善我们这一些猪的健康的一些的计划。同时呢，我们也推出了内部一些基准的工作，就是跟别的市场里面的竞争对手做一个比较，同时不断地去进行评估，看看我们推出的产品呢，是否足够有多元化去吸引我们的客户。等等这一些的措施呢，都可以抵消部分这个通胀带来的压力。 Sorry, maybe a follow up. I think you mentioned that normally in Q1 and Q4, we incur loss. Is this only refer to hog production? So for our slaughtering business, if we compare the Q3, we have some improvement. 一个跟进的问题啊。刚才提到就是一到四季度的话，一般我们的这个会有一些亏损了，那这个是不是只指这个养殖部门，那对于我们的这个屠宰板块的话，我们看四季度会不会比三季度有所好转呢？ Yes. To answer your question, that was specific to hog production. I was talking specifically to the seasonality of hog production and the fact that we're experiencing what we would view as normal seasonality in the profitability of that business. 回答你的问题，对的，我刚才描述的情况啊，只是针对这个养殖业这个板块来说的，也就是说养殖业当中这个利润有一些季节性的趋势，我们今年呢还是会看到一样的一些趋势。 Hi, that's quite clear. It's all my question. Thanks a lot. 各位分析师和投资人，请大家继续按照这个 room 操作的起手功能进行提问。下一位提问的是来自于摩根士丹利的汤茂维，您请开始。 郭奕辰好，请问听得到吗？ 听得到。 郭奕辰，你们好，我是摩根士丹利的汤茂维。那我这边其实有两个问题，就是关于美国跟国际的业务，那我就可能直接用英文去发问吧。With regards to our U.S. packaged meat business, I've seen that for our sales volume, it has dropped by 1% in 3Q. The reason was that there are some labor and supply chain challenges. I was just wondering if these challenges have been solved in 4Q and what's our expectation towards the sales volume growth in 4Q as well as 2023? Thanks. 好，接下来呢，我有两条问题，基本上就是关于美国跟国际业务的，我就直接用英文来提出了。第一条问题呢，就是关于美国肉制品的业务。我看到第三季度啊这个销售的量有一个1%的缩减呢。刚才你们跟我们说啊，期间就是遇到劳工啊，还有一些供应链的挑战，我想问问这些的问题在第四季度已经解决了吗？那么如果已经解决的话，你怎么展望2023年这个销售量呢？ From a volume standpoint, you're right, we have been down and that has been highly correlated to labor availability and supply chain disruption throughout really the first half of the year. As we move through the second half and really close out the year in Q4, we should end Q4 at a level that is slightly above 2021 levels. We expect as we move into 2023 that we'll continue to see some growth in packaged meats as that labor that has come back in this back half of the year. We see the full year impact of that. As we move then to 2023, you should continue to see outpacing the prior year. 你刚才说得非常正确，就是这个销售量这一方面有一个轻微的下降，主要就是因为前半年劳工这一方面受到一些的干扰，同时供应链整体也是有所受到影响导致的。进入了我们下半年，我们看到好多的水平已经慢慢地恢复过来了，甚至已经比较2021年的同期的水平已经超越了。展望2023年，我们相信因为这一些的劳工，他们基本上都已经返回岗位，同时这个肉制品整个板块，我们相信是有所增长的。 好，谢谢。Thank you. My second question regarding the international business is that, I remember that we have been experiencing some difficulties due to ASF, the swine fever and I was just wondering if this situation would worsen going into 4Q, because we do know that there are more diseases in winter seasons and how would that impact our pork sales volume as well as the sales? Thanks. 好，第二个问题呢，就是想问问你们国际的业务这个板块啊，之前我记得你们的表现好像因为这个猪瘟的情况受到了影响啊，那么猪瘟的情况在第四季度会不会因为基本上它是冬季了嘛，就会转坏呢？那么展望未来这一个板块它的销售的数字你们怎么预计呢？ From an ASF standpoint, it does continue to be a problem in Europe. You're correct. As we move into the winter seasons, we do expect to see some higher rates. What we're focused on in our business is keeping ASF off of our farms and we've implemented a number of robust biosecurity measures at all of our locations, both in Poland and Romania, to really limit our exposure. However, one of the things we run into is what we refer to as a proximity exposure. What I mean by that is if there's another farm within a 3, 7 or 10 kilometer radius, there's different rules that apply to how you can move animals inside of that radius. To your question of how will it impact volume, it really depends on where the hotspots pop up. Again, not just on our farms but on our competitors' farms or other farms in the proximity of our farms. I can tell you we've been dealing with ASF in Europe since 2014 and we've got a good security system, we've got excellent biosecurity measures in place. We'll continue to monitor and stay diligent to keep that off of our farms. 好，感谢你关于这个猪瘟的问题啊，你说得非常对。事实上啊，这个问题持续在欧洲是一个问题来的。你刚才也点出了冬季马上就要到了，在冬季的时候呢，通常这个患上猪瘟的比例呢也会增加的。但是呢，我们的措施有好多方面去让这个猪瘟不能够进入我们的养殖场。比方说我们实施了好多生物安全的安排，还有检测等等的措施，尤其针对我们在波兰还有罗马尼亚的养殖场的。但是另外一个风险呢，并不是来自我们自己本身的养殖场，而是来自附近，比方说可能离我们三公里啊、七公里、十公里别的农场，可能他们有这个猪瘟的暴发，也会对于我们来说是一个非常巨大的风险。但是如果看待这个未来的销售量，会不会因为猪瘟影响了我们的表现呢？那就要看这一些猪瘟的热点，或者是说暴发的热点，它的所在地到底是我们自己的养殖场吗？还是附近的一些的养殖场呢？那不同的暴发的情况都会带来不同的结果。但是事实上我们从2014年开始已经非常积极地去处理这个猪瘟的状况了，所以现在我们已经是实施了很多行之有效的措施，还有制度去好好地控制。 That's all my questions. Thank you then. 好，下面一位，下一位的提问是来自于高盛的戴业。Dai Ye，您请开始。 王总你好，我这边有一个比较小的问题，就是想确认一下，我算了一下单三季度的OP大概是同比上涨了10%左右，但是这个单三季度的net profit是同比下降了10%左右，所以这中间的gap主要是来自于哪些项目呢？不知道算对了没有。然后第二个问题就是说想问一下我们集团的财务费用在第三季度大概是什么样的趋势？对，这两个问题。 I only have two small questions. The first question is in relation to a gap that I have identified. I see an increase of 10% for the operating profit but in the same period there's a drop of 10% for net profit. Can you tell me where this gap comes from? My second question is about the financing cost in Q3. Thank you. 这是问总部的。 需要说清楚。Dai Ye，跟你确认一下，您这个问题是对于万洲总部的合并的一个数据吧？ 对，合并的数据。 财务费用是吧？您再重复一遍好吗？ 我算了一下，这个单三季度的总部OP大概增长了10%左右，然后这个net profit是下降了10%，这个增速上好像有一个gap，我不知道中间有哪些一次性的项目。 运营利润和这个经营利润。 Yes, I'm referring to the consolidated figures for the entire group. In Q3 I have noted that the OP has gone up by 10% while the net profit has dropped by 10%. I'm just wondering why you have that gap. 这个是这样，这个有三个方面的原因。第一个呢，就是我们今年三季度，这个银行的利息，是因为加息的原因呢，我们总部去年回购了贷款的利息是上升的，这是第一个。第二个呢，就是我们在前三季度，提取了我们西部工厂的一些费用，这个是在我们这个运营利润，经营利润里面的。那第三个呢，就是我们提取的这个费用是在经营利润里面的。还有一个呢，就是我们今年收取的中国业务收取的政府的返还资金，这个补助的政府的返还资金呢，比去年有所减少。 Well, actually there are three main reasons behind this gap. First of all, it is in relation to the interest hike. The bank interest level has gone up in Q3. In other words, for the entire group, the interest in relation to our loans also went up. The second reason is because we have actually taken certain expenses in our factories and our facilities in the western region of China and that is actually incorporated in the calculation of net profit. The final reason is because we have been receiving a lower level of returned funds in the form of government subsidies compared to last year. 我只能说的就是经营利润率和税前利润率差异是吧？ Just to clarify, it's the western region of the U.S., not the western region of China. It's the charges associated with our decision to exit the West Coast operations. 就理清一下，刚才说到这个西部的工厂啊，原来不是中国那边的西部吧。刚才老板说的西部，事实上所指的是美国这一边的西部。 刚才有不同意。 说是这个经营利润跟那个净利润的差别。 他说的——我听他所说是经营利润与和净利润与其他。 你给解释一下吧。 解释一下。 其实刚才郭总已经解释了那个部分的原因，那我再进行一个补充。因为一个呢，就是因为我们经营利润跟我们的税前利润的差异，主要就是一些非经营性的，比如说政府补助这一些的收支，这个是第一点。那第二点呢，就是我们的这个利息费用，那除了利率上升的那个原因，就是因为我们不论在香港，我们那个回购的贷款有所增加以外，双汇呢，在九月份，这个第三季度的时候，它的那个借款也是有所提升的。那原因呢，就是因为我们会进行一些理财，那这个呢，也会使我们的利息支出有一个上升。那另外呢，就是一个税收的支出。那因为肉制品呢是有税的在国内，但是呢生鲜肉呢，是没有税的。那去年的话呢，生鲜肉是一个亏损的业务，今年呢是一个盈利的业务，所以这个有效税率也在提升。所以呢，你如果比较两个期间的经营利润跟那个净利润的涨幅跟跌幅的话，就会有点差异。 Guo already responded to your question by offering some major reasons. Allow me to supplement by saying that, if you look at the OP and also the profit before tax level, you would see some sort of a gap but that is mainly because of the changes in the government subsidy level. Secondly, because of the interest cost that has gone up. For example, for the Hong Kong business, the level of buyback loan has gone up and the same applies to Shuanghui, because we have to do some sort of wealth management measures and that has led to a rising trend for our interest expenses. In relation to taxation arrangements, actually in Mainland China, a tax is involved if you are doing packaged meat business but there is no tax involved if you are doing fresh pork business. This year, because of the higher level of profit for our Packaged Meats business, due to the better performance, that also means that the taxation level would go up. 今年一至九月份，我们整体的万洲国际总体合并的利息支出，比去年增加了$2,000万，这个有贷款增加的原因，也有利息上升的原因。 For the first nine months of this year, for the entire group, the overall interest expenses has increased by around $20 million and that is because of the scale of the loans going up and also because of the interest level going up. 好的，非常清楚，非常感谢管理层。 好的，下一个问题是来自于天弘基金的谢宇洋。谢宇洋，您请开始。 您好，管理层您好，请问我这边的声音是否清晰？ 很清楚，请开始。 好的，那个我其实这边就有一个小的问题，因为我看到就是我们在四季度的时候，其实有一个资产处置嘛，大概对价应该有五六亿美金的样子。然后我看其实我们的CapEx这几年不会特别大，所以我不知道就这笔钱会不会有一笔这个特别的派息，或有什么管理层或有什么其他的想法吗？ Thank you very much for taking my question. My question is in relation to the asset disposal in Q4 at the scale of $500 million-$600 million. I do not see any major CapEx items, so I'm just wondering, are you arranging a special dividend payout? 现在这个资产的处置，是我们美国业务处置的一个调料厂，处置了一个调料厂，这个收入呢，会在四季度实现。这是美国的这个资产处置。对于万洲国际来讲，我们没有特别派息的计划。 I believe you are referring to this condiments factory in the United States that just went through asset disposal and the revenue will be booked for Q4. Therefore this is more relevant to the U.S. business and we have no dividend payout plans. 好，好的，谢谢管理层，没有其他问题。 好的，下面我们还有最后一次提问的机会。这最后一个问题还是瑞银的Mark，Mark您这里可以开始。 我这边没有其他问题，我刚才没有把那个手放下，不好意思。 I have no other question actually. 那我们还有一个最后一次提问的机会，看看这里，有没有人需要提问。如果没有提问的话，那我们今天会议就到此结束。谢谢大家的参与，我们下次再见。Shane and Glenn, today's meeting has concluded. Thank you for your participation and you may get off the line. All right. Thank you, Robert. Thank you, everyone. Thank you. Thank you.