Warmest congratulations! Xilai Gao has been recognized as a “Little Giant” enterprise specializing in niche, sophisticated, and innovative products in Zhuzhou City!

06 Sep,2022

Great news! On September 2, the Bureau of Industry and Information Technology of Zhuzhou City released the "Public Notice on the Proposed List of Specialized, Sophisticated, and Novel 'Little Giant' Enterprises in Zhuzhou City for 2022," proposing to recognize enterprises such as Hunan Xilai Gao Animal Health Products Co., Ltd. as 2022 Zhuzhou City Specialized, Sophisticated, and Novel "Little Giant" Enterprises and putting the list out for public review. What are "Specialized, Sophisticated, and Novel" (SSN) enterprises and "Little Giant" SSN enterprises? "Specialized, Sophisticated, and Novel" refers to enterprises that possess four key advantages: specialization, refinement, distinctiveness, and innovation. Among these, "Specialized, Sophisticated, and Novel 'Little Giant' enterprises" are the top performers and pioneers among SSN SMEs—small and medium-sized enterprises that focus their efforts on exploring and deeply cultivating untapped market segments and addressing industry pain points. These enterprises specialize in niche markets, demonstrate strong innovation capabilities, enjoy high market shares, master critical core technologies, and deliver excellent quality and efficiency. In recent years, Hunan Xilai Gao Animal Health Products Co., Ltd. has been firmly rooted in the agriculture and animal husbandry market, successfully building the Xilai Gao Agricultural and Pastoral Industrial Park. The company has actively laid out its industrial chain and pursued group-based development, steadily moving forward while adhering to a path of high-tech innovation. Guided by the "Three Rural Areas" strategy, Xilai Gao focuses on enhancing the efficiency of agricultural and animal husbandry production, dedicating itself to providing comprehensive solutions—including livestock management, animal nutrition, and health care—for the feed and livestock industries. In this round of recognition and selection for "Specialized, Sophisticated, and Novel 'Little Giant' enterprises," Xilai Gao stood out from numerous applicants and earned high recognition from the relevant regulatory authorities thanks to its robust overall corporate strength. Setting sail and taking off, under the national "Three Rural Areas" policy guidelines, the company is firmly committed to development. It is stepping up its research and technological breakthroughs in areas such as animal nutrition, disease prevention and control, and health care, striving to become an "expert in parasite control" and a "specialist in micro-nutrient enhancement." By serving healthy livestock farming, Xilai Gao aims to create even greater value!

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Under the triple pressures, does the agricultural and animal husbandry industry still need to pursue healthy growth? Why? And how can it achieve healthy growth?

01 Jun,2022

The overall economic environment is grim, and we’re facing triple pressures, which can be summarized in three words: The first pressure: Demand contraction. This means that both the purchasing power and willingness of ordinary people may decline simultaneously. The decline in purchasing power stems from lower incomes, while the drop in willingness to buy isn’t solely due to reduced income. People have pessimistic expectations about the future economy and are deeply concerned about an economic downturn, leading them to either refrain from consuming altogether or delay their purchases—what’s known as “deferred consumption.” For example, if I used to replace my phone every two years, now I might wait three or five years before upgrading; if I used to change cars every five or eight years, now I might hold onto them for 10 or 15 years. As a result, both our consumption capacity and willingness to consume have fallen sharply. This is especially true in the agricultural and animal husbandry sector—particularly pig farming. Raw material costs have risen dramatically, yet pork prices continue to fall below the cost of raising pigs. The second pressure: Supply shocks. You’ve probably noticed that the prices of raw materials and everyday commodities are rising. In particular, the livestock industry has been under tremendous pressure since last year through this year. On the supply side, raw material costs have surged, but pork prices have been falling—and even resulting in losses for many farmers. The third pressure: Weakened expectations. What does it mean to have weakened expectations? It includes weakening expectations for production, profitability, and income—all of which are eroding. Under these triple pressures, why should businesses still strive for healthy growth? First, there’s a fundamental difference between healthy growth and previous growth models. Previously, companies pursued rapid expansion. Healthy growth, on the other hand, involves three key indicators: 1. Sustainability—meaning it’s not like “killing the goose that lays the golden eggs,” where growth this year leads to problems next year. 2. Profitability—relying genuinely on revenue generating net profits and net profit margins. 3. High return on investment—ensuring that your ROI exceeds the industry average. Why should we stick to healthy growth? 1. Because research shows that if companies don’t pursue healthy growth, 87% of them could end up going bankrupt. Businesses only exist in three states: stagnation, growth, or decline. Stagnation and decline often spell doom, and 87% of companies simply won’t survive. So small and medium-sized enterprises must focus on healthy growth. Our growth targets need to shift—whereas previously we might have focused on scaling up, now we can adjust our goals toward improving profit margins. By optimizing costs and refining our expense structure, we can boost our profit margins. 2. Increasing our market share—not just expanding in scale. In the agricultural and animal husbandry sector, particularly in feed and veterinary medicine, the entire industry has contracted by 30-50%, with some regions seeing declines as high as 80%. On average, the industry has shrunk by 50%. Yet, our company needs to remain stable: even if one region experiences a decline, others can still grow. In fact, this growth isn’t driven by industry-wide expansion—it’s actually coming from grabbing market share away from competitors (this point is crucial, and we must recognize it clearly and act proactively). Thus, we have two main goals: first, improving profit margins; second, increasing our market share—especially by seizing market share from competitors and creating incremental growth. These two objectives are essential for us to uphold. So how do we achieve higher profit margins? 1. Enhancing our organizational capabilities—business growth and performance growth must align with the growth of our organizational capabilities. Only when our organizational capabilities grow can our business performance typically improve. Therefore, organizational capability growth encompasses our processes, organizational structure, and corporate culture. By strengthening our internal capabilities at this stage, we can reduce costs and increase efficiency. 2. Strengthening our internal capabilities—boosting our marketing and promotion skills so we can capture more market share. Most small and medium-sized enterprises, especially those in the feed and veterinary medicine sectors, were previously in a phase of large-scale development, where the entire industry was growing along with the tide, leaving us few opportunities to hone our organizational capabilities. Our marketing strategies weren’t clear, and our employees lacked sufficient training. Now, the key focus for enhancing our marketing and promotion capabilities lies in two areas: First, making our marketing strategies crystal-clear (continuously empowering channels and user markets); during the pandemic, we leveraged social media to strengthen brand promotion through channels, and we used community platforms to highlight product value among users. 3. Improving our marketing combat effectiveness—simply put, enhancing individual capabilities and refining monetization strategies. I’d like to remind everyone here: Although we’re facing triple pressures in the broader economic environment, we must stay committed to healthy growth. Amid industry disruptions, we must actively seek out opportunities. Because without growth, we risk extinction or being eliminated from the market. Finally, I wish all businesses—especially those working in the agricultural and animal husbandry sectors—a successful passage through this challenging global economic climate. Wishing you all the best!

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Xilai Gao joins hands with the world champion to fight the epidemic together and overcome these challenging times!

27 May,2022

As nearly half of 2022 has passed, the agricultural and animal husbandry industry—especially the hog-raising sector—can be described as experiencing an extreme contrast between ice and fire. On the raw-materials side, costs have risen dramatically, while hog prices continue to fall below the cost of raising pigs. Although there has been some recent recovery, prices remain far from a reasonable level. Moreover, the persistent and ever-recurring outbreak of African swine fever in densely populated farming regions across the country has caused severe losses for many farmers, leaving overall willingness to raise livestock rather subdued. Meanwhile, the global COVID-19 pandemic continues to surge and subside domestically, and as of today, the epidemic situation remains grim in Shanghai, Beijing, Henan, Sichuan, Fujian, Jilin, and other regions, deeply worrying people all over the country. ▲ Hileco joins hands with world champions to fight the epidemic together and overcome these difficult times! Recently, gymnastics world champion Liu Nanxi and trampoline champion Dai Haonan—two sports champions—have teamed up with Hileco to launch a public welfare campaign, pledging to join everyone in fighting the epidemic and getting through these tough times together! Hileco International Co., Ltd. (Healeco), a renowned international pharmaceutical company based in the Netherlands, has evolved from its origins in pig farming in 1979 into a specialized animal health-care enterprise. In 2011, "Hileco" officially entered the Chinese market, consistently upholding the core values of "achieving customer success, pursuing proactive development, maintaining integrity and trustworthiness, and fostering win-win cooperation." It actively fulfills its social responsibilities and contributes to the fight against the epidemic through concrete actions. Good Farming Results? Choose Hileco! Looking back at the two years of the pandemic, the national economy slowed down, and businesses faced great difficulties. In the face of pandemic lockdowns, ensuring the supply of daily necessities became a matter of life and death for ordinary people. During these two years, Hileco has also taken active measures in its area of expertise—animal nutrition—to provide strong support for the farming industry, stabilize the supply of essential commodities such as pork, and actively fulfill its social responsibilities by contributing to the epidemic response through practical actions. ▲ Photo: Medical workers and volunteers fighting the epidemic in Shanghai; source: @Zou Le Ma Custom Travel! Liu Nanxi She began practicing gymnastics at age three and won the all-around championship at the Jiangsu Junior Gymnastics Competition at age six. In 2003, she placed second in the women’s floor exercise at the National Urban Games. In 2005, she helped her team finish third in the women’s team competition at the 10th National Games. In 2009, she led her team to victory in the women’s gymnastics team event at the 25th World University Games. Dai Haonan He started practicing trampoline at age five and, at just 11, won first place in the team event at the China Youth Trampoline Championships alongside his teammates. In 2013, he took first place in the men’s online team event at the National Trampoline Age Group Competition. In 2015, he helped his team win the bronze medal in the men’s trampoline team event at the First National Youth Games. From Liu Nanxi to Dai Haonan, their spirit of overcoming difficulties and going against the tide is precisely the corporate ethos that we, as a business, should learn from and embody. By joining forces with these two sports champions to promote epidemic prevention efforts, Hileco not only contributes to the fight against the pandemic but also carries forward the sports spirit of never giving up and facing challenges head-on. The pandemic will eventually pass; let’s wait patiently for the warmth of spring and blooming flowers. Let’s cheer each other on!

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