On June 6, 2025, the company held a May business analysis meeting. The meeting was chaired by the company’s CEO Meng Qingfei, with the participation of Xu Xinghua, Generl Manager, heads of various departments and core business backbones. At the beginning of the meeting, Li Yan from the President’s Office reported on the completion of work tasks of each department in May, then explained the payment collection issues. Subsequently, General Manager Xu Xinghua comprehensively reviewed ?the completion of the company’s operational goals in May and analyzed the core issues of each business segment. Finally, Mr. Meng provided feedback on the work of each department and assigned key tasks for June.
I. Summary of Business Performance in May
General Manager Xu Xinghua first?announced the operational data of the company as a whole and each business department in May:
1. The gross profit of the company’s business departments increased in May. The procurement and stockpiling of walnut raw materials in June is crucial. Starting from the issue of low gross profit, Mr. Xu emphasized the relationship among “scale (stability)”, “cost (quality)”, and “price (profit)”.
2. Scale (customer stability) is the foundation: Even if the gross profit of purchased goods from outside is low or even marginal, priority should be given to ensuring the continuous delivery of core customers, maintaining customer relationships and scale, and laying the foundation for future output increase (such as launching the second production line). Short-term profits should be sacrificed to ensure customer stability.
3. Cost control and quality stability: It is necessary to continuously reduce costs through various means such as scaling up (production line), front-end integration (such as green leather processing), and technological improvement (reducing losses such as “fragments”). Simplifying feeding, managing inventory damage (such as humidity control experiments), and using transfer warehouses to reduce labor costs and fluctuations in product quality directly affect customer trust and order stability. Continuous improvement is needed.
4. Reasonable adjustment of selling price profit: For new customers, our policy on price control can be relaxed, allowing customers to experience the transaction first.
5. Mr. Xu reported on the market research of new products (mixed nuts, amber walnut kernels, walnut oil) and pointed out their advantages and disadvantages.
6. Mr. Xu has put forward work requirements for the current problems in the functional departments. The functional departments need to proactively and efficiently solve the real problems in the development of the business departments, and eliminate the mentality of shirking responsibility and being afraid of making mistakes. Require the human resources department to establish a mechanism for functional leaders to be responsible for the impact of business development issues that are of concern to business department leaders. We will also establish a system for analyzing human performance indicators, and provide strong reference for production and sales in the second half of the year through the regularity of human performance indicators from January to May.
7. Mr. Xu also emphasized the work attitude and quality standards (such as B2C/IFS certification requirements).
II.?Mr. Meng’s comments and next steps of work deployment
In response to the problems in production and operation in May, Mr. Meng has put forward work requirements for relevant departments in June:
1. Improving gross profit and sales remains the next key focus.
2. The domestic and foreign trade departments need to strengthen communication with customers. For order demands in the second half of the year, it is recommended to clarify customer needs in advance and propose a plan to provide customers with specialized raw material reserves to enhance customer satisfaction. Domestic trade should focus on developing factory customers and reducing the proportion of trade customers;
3. The procurement department needs to reduce raw material costs, re evaluate price forecasts and procurement strategies to indirectly increase gross profit.
4. The warehousing, logistics, and quality technology departments should focus on the issue of inventory damage. The cause of inventory damage, whether it is due to moisture in the kernels or shells, should be verified to obtain a clear conclusion.
5. The initial processing workshop on the production end should be laid out on the new production line to reduce losses. The precision processing workshop should be renovated internally, and equipment updates and new production line reservations should be completed according to the corresponding time nodes. We should focus on the B-end market for new products, and expand our product line through new products such as walnut kernels and mixed nuts to understand customers’ needs for different forms such as crushed kernels and whole fruits.
III.?Confidence and Commitment
Despite facing challenges such as raw material shortages and gross profit pressure, as long as we focus on core issues (sales, gross profit, raw materials, and losses), strictly implement the tasks deployed in the meeting, and work closely together, we will definitely overcome difficulties and lay a solid foundation for achieving the annual goals. Let’s work together and strive together!
