Group 1 - The company will hold its second extraordinary general meeting of shareholders on November 27, 2025 [2] - A temporary proposal has been added to the agenda, suggesting the use of capital reserves to cover losses [3][19] - The proposal was submitted by Dr. Xuefeng Yu, who holds 7.26% of the company's shares [2][3] Group 2 - The meeting will take place at the Tianjin East Hyatt Hotel, starting at 14:00 [5] - Shareholders can vote online through the Shanghai Stock Exchange's voting system on the day of the meeting [7] - The original date for the equity registration remains unchanged [8] Group 3 - The company reported a cumulative undistributed profit of -1,450,342,128.90 yuan as of December 31, 2024 [17] - The plan involves using 118,388,703.29 yuan from surplus reserves and 1,331,953,425.61 yuan from capital reserves to offset losses [18] - After the implementation of this plan, the company's surplus reserves will be reduced to 0 yuan, and capital reserves will decrease to 5,244,776,299.42 yuan [19] Group 4 - The proposal to use capital reserves to cover losses has been approved by the company's board and supervisory board [20] - The company aims to enhance investor returns and promote high-quality development through this measure [19] - The proposal requires approval from the shareholders' meeting, indicating a level of uncertainty [21] Group 5 - The company will hold a quarterly performance briefing on November 17, 2025, to discuss the third quarter results [23][25] - Investors can submit questions in advance through the Shanghai Stock Exchange's website or via email [24][27] - The meeting will be conducted in an interactive online format [29]

Core Points - The major shareholders Zhu Rongjuan and Peng Tao's shares have been judicially frozen due to a financial dispute with Guangxi Beibu Gulf Bank [2][3] - A total of 38,556,320 shares held by Zhu Rongjuan and 3,370,953 shares held by Peng Tao were frozen on November 5, 2025 [2] - The company maintains that it operates independently from its major shareholders and that the judicial freezing of shares will not significantly impact its operations [3][4] Shareholder Situation - As of November 5, 2025, the cumulative shares frozen or marked for Zhu Rongjuan and Peng Tao are significant, indicating potential risks to the company's governance [2][4] - Zhu Rongjuan and Peng Tao collectively hold 22,167,585 shares, representing 4.23% of the company's total share capital, which are scheduled for judicial auction from November 25 to November 26, 2025 [3][4] Company Operations - The company asserts that its production and operational status remain normal despite the judicial actions against its major shareholders [3][4] - The company will continue to monitor the situation closely and ensure compliance with information disclosure obligations [4]

Core Insights - The animal health sector experienced a slight increase of 0.55% on November 7, with *ST Lvkang leading the gains [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - *ST Lvkang (002868) closed at 31.76, up 4.99% with a trading volume of 12,000 hands and a transaction value of 37.6483 million yuan [1] - Other notable stocks included: - Biological Shares (600201) at 10.52, up 1.64% with a trading volume of 234,300 hands [1] - Driving Force (920275) at 9.88, up 1.13% with a trading volume of 7,484 hands [1] - Zhongmu Shares (600195) at 7.75, up 0.65% with a trading volume of 77,200 hands [1] Capital Flow - The animal health sector saw a net outflow of 5.144 million yuan from institutional investors, while retail investors experienced a net outflow of 11.0652 million yuan [2] - Conversely, speculative funds recorded a net inflow of 16.2092 million yuan [2] Detailed Capital Flow Analysis - Major stocks and their capital flow included: - Biological Shares (600201) with a net inflow of 20.3753 million yuan from institutional investors [3] - *ST Lvkang (002868) had a net inflow of 2.9042 million yuan from institutional investors [3] - Huisheng Biological (300871) faced a significant net outflow of 18.6925 million yuan from institutional investors [3]

Group 1 - The Agricultural, Animal Husbandry, and Fishery ETF (159275) has shown a contrary rise, with an increase of 0.6% and a trading volume of 5.25 million yuan, bringing the fund's total size to 200 million yuan [1] - Key performing stocks include Honghui Fruits and Vegetables, Longniu Mountain, and Hainan Rubber, with respective increases of 6.22%, 4.04%, and 2.56% [1] - The Ministry of Agriculture and Rural Affairs held a meeting on November 4, 2025, to establish a full-chain regulatory mechanism for agricultural product quality and safety [1] Group 2 - Pacific Securities highlighted multiple pressures on the breeding industry, including ongoing losses in the pig industry, high levels of breeding sows, and rising risks from African swine fever [2] - The poultry industry is experiencing a historical high in production capacity, with broiler prices fluctuating at low levels, while yellow chicken prices are rising due to seasonal demand [2] - The planting industry is stabilizing grain prices, with expectations for mid-term increases, and the seed industry is gaining strategic importance due to advancements in genetically modified crops [2]

Core Insights - The animal health sector experienced a slight increase of 0.36% on November 6, with *ST Lvkang leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - *ST Lvkang (002868) closed at 30.25, with a rise of 5.00% and a trading volume of 32,200 hands, amounting to a transaction value of 96.94 million yuan [1] - Other notable stocks include: - KQ Bio (688526) at 16.07, up 0.69% [1] - Biological Shares (600201) at 10.35, up 0.68% with a transaction value of 153 million yuan [1] - Ruipu Biological (300119) at 20.46, up 0.20% [1] - Pulaike (603566) at 14.09, up 0.14% [1] Capital Flow - The animal health sector saw a net outflow of 17.47 million yuan from institutional investors, while retail investors contributed a net inflow of 8.89 million yuan [2] - The capital flow for individual stocks indicates: - *ST Lvkang had a net inflow of 7.56 million yuan from institutional investors [3] - KQ Bio experienced a net inflow of 4.84 million yuan [3] - Biological Shares had a net inflow of 2.64 million yuan [3]

Group 1 - The Agricultural, Animal Husbandry, and Fishery ETF (159275) showed stable performance with a 0.2% increase in price and a trading volume of 6.91 million yuan, bringing the fund's total size to 203 million yuan as of November 5 [1] - Among the constituent stocks, Shennong Seed Industry had the highest increase at 6.4%, followed by Luoniushan at 5.24%, and Zhongxing Junye at 3.46%. Conversely, Tianma Technology experienced the largest decline at 1.79%, with Meihua Biological and Tianma Technology also showing declines of 1.92% and 1.57% respectively [1] - The Ministry of Agriculture and Rural Affairs will implement six types of agricultural electronic certificates nationwide starting November 1, 2025, including feed import registration certificates and agricultural transgenic biological safety certificates, transitioning to full electronic certification by 2026 [1] Group 2 - According to Tianfeng Securities, the egg-laying chicken industry is expected to see a significant reduction in domestic breeding volume to 41,200 birds by 2025, indicating a shift from surplus to tight supply. The white chicken industry is also experiencing a contraction in production capacity due to three years of bottoming out and overseas breeding disruptions [2] - The pig farming sector is anticipated to undergo capacity reduction due to low prices and policy guidance, while dairy cow inventory has decreased by 8%, nearing the end of the reduction phase. Beef prices may see unexpected increases [2] - The planting sector is accelerating the commercialization of transgenic corn, enhancing the competitiveness of leading seed companies. The aquaculture feed sector is recovering from a downturn, with leading companies increasing their market share [2] Group 3 - The Agricultural, Animal Husbandry, and Fishery ETF (159275) and its linked funds (Link A: 013471, Link C: 013472) passively track the Agricultural, Animal Husbandry, and Fishery Index, with the top ten weighted stocks including Muyuan Foods, Wens Foodstuff Group, Haida Group, Meihua Biological, New Hope Liuhe, Dabeinong, Bio-Stock, Shennong Development, Beidahuang, and Longping High-Tech [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price based on the last closing price of 10.62 [1] Core Insights - The company's revenue for the first three quarters of 2025 reached 1.042 billion yuan, representing a year-on-year increase of 7.38%, while the net profit attributable to shareholders was 161 million yuan, a decrease of 4.85% year-on-year. In Q3 2025 alone, revenue was 423 million yuan, up 17.76% year-on-year, and net profit was 101 million yuan, an increase of 116.40% year-on-year [4][5] - The core products continue to see significant growth, particularly in the swine vaccine segment, with sales of foot-and-mouth disease vaccines increasing by 50% year-on-year, and diarrhea vaccines seeing a 120% increase in revenue. The company is also making steady progress in developing new vaccines, including a novel mRNA vaccine for feline infectious peritonitis [5][7] Financial Performance Summary - The company forecasts revenues of 1.569 billion yuan for 2025, 1.851 billion yuan for 2026, and 2.073 billion yuan for 2027, with net profits projected at 283 million yuan, 320 million yuan, and 335 million yuan respectively. The corresponding EPS for these years is expected to be 0.25 yuan, 0.29 yuan, and 0.30 yuan, with PE ratios of 42.57, 37.67, and 35.91 respectively [5][7][9] - The gross margin is projected to be 54.00% in 2025, with a net profit margin of 18.03% [9]

Core Insights - The animal health sector experienced a decline of 0.35% on November 3, with Reap Bio leading the losses [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Stock Performance Summary - Hai Li Biological (603718) closed at 7.02, up 2.03% with a trading volume of 101,600 shares and a turnover of 70.93 million yuan [1] - Shen Lian Biological (688098) closed at 11.36, up 1.43% with a trading volume of 133,100 shares and a turnover of 150 million yuan [1] - Yong Shun Biological (920729) closed at 10.09, up 1.00% with a trading volume of 23,800 shares and a turnover of 24.09 million yuan [1] - The worst performer was Reap Bio (300119), which closed at 21.01, down 2.51% with a trading volume of 103,300 shares and a turnover of 219 million yuan [2] Capital Flow Analysis - The animal health sector saw a net outflow of 35.26 million yuan from institutional investors, while retail investors had a net inflow of 26.79 million yuan [2] - The main capital inflow was observed in Shen Lian Biological, with a net inflow of 4.03 million yuan from institutional investors [3] - Conversely, Reap Bio experienced a net outflow of 1.29 million yuan from institutional investors [3]

Investment Rating - The industry rating is "Recommended" [3] Core Insights - The pork price center has significantly risen, leading to a notable reduction in industry losses. The average price of live pigs has increased to 12.51 CNY/kg, a week-on-week rise of 7.20% [2][13] - The agricultural sector is expected to maintain a good development momentum, with grain production projected to be high this year, including summer grain production of 299.48 billion jin and early rice production increasing by 6.8 billion jin, a growth of 1.2% [1][12] - The industry is currently in a supply-demand tug-of-war, with large-scale pig farms adopting strategies to control supply and raise prices, while demand is expected to improve with the arrival of warmer weather and the pickling season [2][13] Summary by Sections Planting Industry Chain - The agricultural sector is implementing key policies to support rural economic development, with a focus on achieving food security and enhancing crop yields through biotechnology [1][12] - Major beneficiaries in the planting sector include Beidahuang and Suqian Agricultural Development, while in the seed industry, companies like Dabeinong and Longping High-Tech are highlighted for their competitive advantages [1][12] Pig Farming - The pig farming industry is still experiencing losses, but there has been a significant reduction in losses compared to the previous week, with self-breeding farms reporting an average loss of 89.33 CNY per head, down nearly 100 CNY [2][13] - The industry is expected to undergo a process of capacity reduction, with a focus on improving quality and efficiency, leading to the gradual elimination of outdated production capacity [2][13] - Recommended stocks in the pig farming sector include companies like DeKang Agriculture, Jingji Zhino, and Muyuan Foods [2][13] Key Agricultural Product Data Tracking - Corn: The average price is 2241.67 CNY/ton, with a week-on-week decrease of 0.66% [27][28] - Wheat: The average price is 2482.11 CNY/ton, with a week-on-week increase of 0.87% [30][32] - Soybeans: The average price is 3996.84 CNY/ton, with a week-on-week increase of 0.06% [41][44] - Cotton: The average price in Xinjiang is 14660 CNY/ton, with a week-on-week increase of 0.15% [46][50] Feed and Vitamin Prices - The average price of pig feed is 2.6 CNY/kg, with a week-on-week decrease of 0.38% [53][55] - The average price of Vitamin E is 50.30 CNY/kg, with a week-on-week increase of 14.58% [62][63]

Core Viewpoint - The company has obtained a drug production license for lactulose active pharmaceutical ingredient, marking a significant milestone in its strategic expansion into the raw material and health sectors [1][2]. Group 1: License Details - The drug production license was issued by the Shandong Provincial Drug Administration, with the license number Lu20250024, valid until October 28, 2030 [1]. - The production facility is located in the Yucheng High-tech Industrial Development Zone, Shandong Province, and is authorized to produce lactulose solution for registered use only [1]. Group 2: Impact on the Company - The acquisition of the drug production license accelerates the application, registration, and market launch processes for lactulose, initiating the company's diversification into raw materials [2]. - This milestone is seen as a key leverage point for enhancing industry value and strengthening market competitiveness, aligning with the company's goal to establish itself as a world-class provider of functional and health solutions [2]. - Currently, lactulose is only exported to select overseas markets, but future approvals in domestic and major global markets are expected to boost sales revenue and operational performance, although the immediate impact on current performance is anticipated to be minimal [2].