Core Insights - The recent capital increase and expansion activities by leading seed companies such as Suqian Agricultural Development, Guotou Fengle, Longping High-Tech, and Wens Foodstuff reflect a significant trend in the seed industry, driven by national seed industry revitalization strategies and the influx of long-term capital [1][2][4] - The capital influx is expected to accelerate technological development and support the goal of achieving self-sufficiency in seed sources, thereby fostering industry growth [1][4] Company Summaries - Suqian Agricultural Development plans to raise 1 billion yuan through capital reduction and expansion, aiming to leverage strategic investors to advance its seed industry strategy [1] - Guotou Fengle is set to issue up to 184 million shares at 5.91 yuan each, raising no more than 1.089 billion yuan to strengthen its capital base and focus on seed technology [1][2] - Longping High-Tech has been actively raising capital, with its subsidiary Lianchuang Seed Industry planning to raise 800 million yuan, following a previous 1.2 billion yuan increase from CITIC Agriculture [2][3] - Wens Foodstuff's former subsidiary, Zhongxin Seed Industry, raised approximately 2.33257 billion yuan through cash and equity investments, with a post-investment valuation of 10.057 billion yuan [2] Industry Trends - The seed industry is likened to the "chip" of agriculture, with its development directly impacting national food security, and the current capital influx aligns with both policy direction and market demand [2][4] - The urgency for technological iteration, particularly in gene editing and smart breeding, is a key driver for the current wave of capital increases, as high investment and long development cycles necessitate sustained capital support [3] - The capital structure optimization through these increases allows companies to focus on long-term research and development while enhancing governance and decision-making efficiency [3] Market Implications - The capital influx is facilitating domestic companies to expand internationally, with Longping High-Tech leveraging its capital strength to integrate the rice seed market and further develop corn and vegetable seed sectors, as well as exploring overseas markets [3]

Core Insights - The agriculture sector saw a rise of 0.95% on October 21, with Zhongxing Junye leading the gains [1] - The Shanghai Composite Index closed at 3916.33, up 1.36%, while the Shenzhen Component Index closed at 13077.32, up 2.06% [1] Sector Performance - Zhongxing Junye (002772) closed at 11.17, with a significant increase of 10.05%, trading volume of 109,200 shares and a transaction value of 119 million [1] - Hualv Biological (300970) rose by 2.59% to 15.45, with a trading volume of 33,300 shares and a transaction value of approximately 50.91 million [1] - Yasheng Group (600108) increased by 1.95% to 3.13, with a trading volume of 509,200 shares and a transaction value of 159 million [1] - Other notable performers include Hainan Rubber (601118) with a 1.63% increase and a transaction value of 300 million [1] Capital Flow - The agriculture sector experienced a net outflow of 127 million from main funds, while retail investors saw a net inflow of 135 million [2] - The main funds showed a negative net flow in several companies, including Zhongxing Junye with a net outflow of 51.96 million [3] - Notable net inflows from retail investors were observed in companies like Hualv Biological, which had a retail net inflow of 374.54 million [3]

Investment Rating - The industry rating is "Recommended" [3] Core Views - The planting industry is focusing on enhancing crop yields and ensuring food security through advanced agricultural technologies and policies [1][12] - The pig farming sector is currently experiencing significant losses, with average losses per head reaching 244.70 yuan for self-bred pigs and 375.29 yuan for purchased piglets, indicating a need for capacity reduction [2][13] - The report anticipates a gradual recovery in pig prices due to government policies aimed at reducing breeding sow numbers and improving overall industry efficiency [5][13] Summary by Sections Planting Industry - The Ministry of Agriculture emphasized the importance of increasing crop yields and implementing comprehensive solutions tailored to specific regions and crops [1][12] - The report highlights the potential for genetically modified crops to significantly enhance yields and self-sufficiency in key varieties [1][12] - Recommended stocks in the planting sector include Beidahuang and Suqian Agricultural Development, with a focus on leading seed companies like Dabeinong and Longping High-Tech [1][12] Pig Farming - The average price of live pigs is reported at 11.14 yuan/kg, with a week-on-week decrease of 4.95%, reflecting an oversupply in the market [2][13] - The industry is facing deep losses, prompting a proactive reduction in production capacity, with a target to decrease the breeding sow population by approximately 1 million [5][13] - Recommended stocks in the pig farming sector include Muyuan Foods, Wens Foodstuff, and other companies with strong financial positions and cost improvements [5][13] Key Agricultural Products - Corn: The average price is 2276.08 yuan/ton, down 1.61% week-on-week [26] - Wheat: The average price is 2450.11 yuan/ton, up 0.30% week-on-week [29] - Soybeans: The average price is 3988.53 yuan/ton, with a slight increase of 0.03% [41] - Cotton: The average price is 14580 yuan/ton, down 0.98% week-on-week [45] Feed and Vitamin Prices - The average price of pig feed is 2.64 yuan/kg, down 0.75% week-on-week [52] - Vitamin E is priced at 43.10 yuan/kg, reflecting a significant decrease of 12.58% [52]

Core Insights - The agricultural and livestock ETF (159275) showed weak performance with a price drop of 0.5% and a trading volume of 997,400 yuan, while the fund's latest scale is 207 million yuan [1] - Notable performers among constituent stocks include Hainan Rubber, Ronniu Mountain, and Zhongxing Mushroom Industry, with increases of 3.7%, 3.63%, and 3.0% respectively [1] - Conversely, Haida Group, Juxing Agriculture, and Tianma Technology experienced declines of 3.34%, 2.91%, and 2.61% respectively [1] - The Northeast Animal Husbandry Expo has been officially renamed and focuses on industry innovation and resource integration, while the 14th World Pig Industry Expo opened on October 18 in Changsha, covering 100,000 square meters and attracting over 800 global enterprises [1] - Dongguan Securities reported that pig prices have fallen to 11.17 yuan/kg, leading to continuous losses in breeding profits, with an average loss of 244.7 yuan per self-breeding pig [1] - The number of breeding sows remains high at 40.38 million, indicating significant future capacity reduction potential [1] - In poultry farming, the average price of white feather chickens is 6.87 yuan/kg, showing a slight decline, but breeding profits have marginally improved to -2.03 yuan per bird [1] - The industry valuation is at a PB of 2.85 times, which is at the historical 63.8% percentile, maintaining an "overweight" rating [1] Industry Analysis - The pig farming industry is experiencing supply pressure release, with prices continuing to decline; self-breeding and purchased piglet farming are both operating at losses of 244.70 yuan and 375.29 yuan per head respectively [2] - Under policy guidance, capacity reduction may accelerate, with a slight decrease in the number of breeding sows in September [2] - In poultry farming, the outbreak of avian influenza overseas creates uncertainty in the breeding of grandparent chickens, which is beneficial for the white feather chicken industry chain prices [2] - The demand in the animal health industry is expected to bottom out, with year-on-year changes in vaccine approvals for roundworms and pseudorabies at -17% and -11% respectively [2] - The seed industry is focusing on the progress of biological breeding expansion, the promotion of genetically modified corn, and industry mergers and acquisitions [2] - Pet food exports are minimally affected by tariff disturbances, while domestic sales continue to grow rapidly, with a 3% increase in e-commerce platform sales in September [2] - The agricultural and livestock ETF (159275) and its linked funds passively track the agricultural and livestock index, with the top ten weighted stocks including Muyuan Foods, Wens Foodstuff Group, Haida Group, New Hope Liuhe, Meihua Holdings, Dabeinong Technology, Shennong Development, Bio-Stock, Beidahuang, and Longping High-Tech [2]

Investment Rating - The report suggests a cautious outlook for the agricultural sector, particularly in livestock and feed industries, with a focus on identifying quality companies for investment opportunities [3][4][5][6]. Core Insights - The agricultural sector, particularly the livestock segment, is experiencing significant price fluctuations and profitability challenges, with a recommendation to focus on low-cost, high-quality enterprises [3][4][5][6]. - The report highlights the potential for recovery in the beef and dairy markets as seasonal demand increases, while also noting the ongoing pressures in the pig farming sector due to price declines [3][4][5][6]. - The planting industry is facing short-term supply and demand pressures, but there is potential for improvement if crop yields decrease significantly [6][49]. Summary by Sections Swine Farming - Current pig prices are in a downward trend, with the average weight of pigs at 128.25 kg, indicating high inventory levels despite price drops [3][22]. - The report anticipates continued increases in pig output in the coming months, with limited seasonal accumulation space, suggesting further price declines [3][22]. - Long-term prospects remain positive for leading companies in the sector, with recommendations to focus on low-cost producers like Muyuan Foods and Wens Foodstuffs [3][23]. Poultry Farming - The poultry sector is stabilizing, with yellow feathered chicken prices showing resilience due to improved downstream demand and supply contraction [4][36]. - The report notes that while white feathered chicken prices are under pressure, overall profitability in poultry farming is expected to improve with a recovery in consumer demand [4][38]. Livestock - Beef prices are expected to rise as the consumption season approaches, while dairy cow inventory trends are decreasing [5][42]. - The report indicates that the beef and dairy sectors are currently facing losses, but a recovery is anticipated as demand increases and supply contracts [5][43]. Planting Industry - The planting sector is experiencing price volatility due to new corn harvests and ongoing uncertainties regarding soybean imports [6][48]. - The report emphasizes the importance of improving grain yields and suggests that a significant reduction in crop production could enhance the sector's outlook [6][49]. Feed and Aquaculture - Feed prices have stabilized, with no significant changes reported in the prices of various feed types [6][62]. - The aquaculture sector is showing positive trends, with certain fish prices increasing, indicating a potential recovery in this segment [6][62].

Industry Insights - The 2025 World Agricultural Technology Innovation Conference recently opened in Pinggu, Beijing, focusing on themes such as South-South cooperation, facility agriculture, controllable agriculture, and smart breeding, discussing the construction of resilient food supply systems and exploring challenges and development paths in the agricultural sector [1] - A market research company in the U.S. predicts that if China does not return to the U.S. market by mid-November, the potential loss of soybean orders for the U.S. could reach 14 to 16 million tons [1] - Open-source securities indicate that trade frictions are resurfacing, benefiting the agricultural sector through tariff countermeasures and food security logic, with the sector currently at a relatively low level [1] - Since the beginning of 2025, prices for corn, wheat, soybeans, and japonica rice have shown significant recovery, with corn and japonica rice prices increasing by 8.54% and 5.61% respectively as of October 11, 2025 [1] - Huaxi Securities emphasizes that in the context of food security, transgenic technology has a revolutionary role in increasing yield, predicting that the commercialization process of transgenic crops will continue to accelerate, fundamentally improving self-sufficiency rates of key varieties [1] Company Developments - Longping High-Tech, a leading domestic modern seed company, produces hybrid rice seeds, corn seeds, vegetable seeds, and wheat seeds, and has formed a strategic partnership with Alibaba Cloud to advance agricultural applications [2] - Dabeinong's subsidiary, Beijing Dabeinong Biotechnology, received planting permission for its transgenic soybean variety "DBN9004" in April 2025, while its joint venture, Nongxin Group, has integrated the DeepSeek-V2 version into its AaaS platform, with plans for a full launch of DeepSeek-V3 and DeepSeek-R1 based intelligent services in early 2025 [2]

Core Viewpoint - Longping High-Tech (隆平高科) is strategically introducing four investors to its subsidiary Beijing Lianchuang Seed Industry (联创种业) to raise 800 million yuan, reinforcing its leadership in the corn seed industry and contributing to national food security [1][4]. Group 1: Strategic Investment and Governance - The capital increase is not just about funding; it also involves acquiring remaining shares from natural person shareholders, optimizing governance structure, and invigorating the new team [2]. - The 800 million yuan raised will accelerate integrated management of the corn business, enhance decision-making, and solidify Lianchuang Seed's leading position in the domestic corn seed industry [2][3]. Group 2: Performance and Financial Impact - Since its acquisition in 2018, Lianchuang Seed has consistently led the industry, with revenues growing from 485 million yuan in 2018 to 1.623 billion yuan in 2024, and net profits increasing from 189 million yuan to 432 million yuan [1]. - The company has contributed a total profit of 1.261 billion yuan to Longping High-Tech since the acquisition [1]. Group 3: Investor Profiles and Contributions - The four strategic investors include China CITIC Financial Asset Management (中信金融资产), Modern Seed Industry Development Fund (现代种业), Hunan Xiangxin Zhongken Equity Investment Partnership (湘鑫中垦), and Taiping (Shenzhen) Rural Revitalization Private Equity Fund (太平乡村振兴基金), bringing diverse industry resources and financial support [3]. - These investors will provide long-term capital and enhance Lianchuang Seed's capabilities in research, innovation, and market expansion, particularly in transgenic varieties and breeding innovation [3]. Group 4: Implications for Food Security - As a leader in the seed industry, Longping High-Tech's focus on corn is crucial for ensuring stable food supply and sustainability in agriculture [4]. - The capital infusion will strengthen research and promotion of high-quality corn varieties, improving yield and disaster resistance, thereby reducing reliance on imports and enhancing domestic food security [4].

Market Overview - The planting industry sector rose by 0.33% on October 14, with Qiu Le Seed Industry leading the gains [1] - The Shanghai Composite Index closed at 3865.23, down 0.62%, while the Shenzhen Component Index closed at 12895.11, down 2.54% [1] Stock Performance - Qiu Le Seed Industry (code: 920087) closed at 18.10, up 6.16% with a trading volume of 169,200 shares and a transaction value of 294 million [1] - Other notable performers include: - Shen Nong Seed Industry (code: 681000E) at 4.81, up 2.78% with a volume of 2.06 million shares [1] - Zhongxing Fungi Industry (code: 002772) at 10.47, up 2.05% with a volume of 325,800 shares [1] - Dunhuang Seed Industry (code: 600354) at 6.56, up 2.02% with a volume of 496,000 shares [1] Capital Flow - The planting industry sector experienced a net outflow of 54.07 million from main funds, while retail funds saw a net inflow of 8.37 million [2] - The main funds' net inflow and outflow for specific stocks include: - Shen Nong Seed Industry: net inflow of 37.01 million [3] - Dunhuang Seed Industry: net inflow of 17.90 million [3] - Zhongxing Fungi Industry: net inflow of 17.41 million [3]

Core Viewpoint - Longping High-Tech (隆平高科) has announced the acquisition of a 10% stake in Beijing Lianchuang Seed Industry Co., Ltd. (联创种业) from seven individual shareholders, resulting in Lianchuang becoming a wholly-owned subsidiary, which is expected to enhance governance and accelerate the development of its corn seed business [1][5] Group 1 - The acquisition will change Longping's ownership in Lianchuang from 90% to 100%, and it will not affect the scope of the company's consolidated financial statements [1] - Lianchuang is a key player in the corn seed sector, and the exit of individual shareholders is seen as beneficial for optimizing governance and invigorating the new management team [1][5] - Lianchuang is in the process of attracting strategic investors with strong brand reputation and financial capabilities, which will support its sustainable development [1][5] Group 2 - Lianchuang plans to raise capital by introducing four strategic investors, including China CITIC Financial Asset Management Co., Ltd. and others, with total investments amounting to 7.2 billion yuan, resulting in a change in registered capital from 106 million yuan to 118 million yuan [2][3] - After the capital increase, Longping's stake in Lianchuang will be diluted to 89.94%, while Lianchuang remains a controlled subsidiary [3] - The strategic investors are all state-owned entities with expertise in the seed industry, which is expected to enhance Lianchuang's decision-making and capital strength [5] Group 3 - Lianchuang has been recognized as a high-tech enterprise and a leading company in the seed industry, with a strong track record in corn seed promotion and profitability [4] - The strategic partnership formed in 2018 between Longping and Lianchuang has positioned Longping as a leader in the global seed industry, ranking eighth worldwide and first in China [4] - The current transaction is anticipated to lower Longping's overall asset-liability ratio and strengthen Lianchuang's innovation capabilities [5]

目 录 | | | | 二、财务报表……………………………………………………… | 第 | 4—13 | 页 | | --- | --- | --- | --- | | （一）合并资产负债表…………………………………………… | | 第 | 4 页 | | （二）母公司资产负债表………………………………………… | | 第 | 5 页 | | （三）合并利润表………………………………………………… | | 第 | 6 页 | | （四）母公司利润表……………………………………………… | | 第 | 7 页 | | （五）合并现金流量表…………………………………………… | | 第 | 8 页 | | （六）母公司现金流量表………………………………………… | | 第 | 9 页 | | （七）合并所有者权益变动表……………………………… | 第 | 10-11 | 页 | | （八）母公司所有者权益变动表…………………………… | 第 | 12-13 | 页 | | | | 审 计 报 告 天健湘审〔2025〕840 号 北京联创种业有限公司全体股东： 一、审计意见 我们审计了北京联创种业有限公司（以下简称 ...