Financial Performance - The company's revenue for Q3 2025 reached ¥836,737,374.53, representing a year-on-year increase of 1.44%[5] - Net profit attributable to shareholders for Q3 2025 was ¥105,784,584.02, up 23.02% compared to the same period last year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥81,536,762.58, reflecting a 7.64% increase year-on-year[5] - For the first nine months of 2025, the company achieved a total revenue of ¥2,544,325,031.33, a 13.50% increase from the previous year[9] - The net profit attributable to shareholders for the first nine months was ¥362,307,052.90, which is a 45.64% increase year-on-year[9] - Operating profit for the current period was ¥442,271,734.21, up 39.6% from ¥316,434,076.01 in the previous period[27] - Net profit attributable to shareholders of the parent company was ¥362,307,052.90, representing a 45.6% increase from ¥248,766,437.96 in the previous period[28] - Earnings per share (EPS) for the current period was ¥0.7972, up from ¥0.5401 in the previous period[28] Cash Flow and Assets - The company's cash flow from operating activities for the first nine months was ¥205,880,305.22, down 45.46% compared to the previous year[11] - The company's short-term borrowings decreased to 736.81 million yuan from 800.78 million yuan[25] - Accounts payable decreased to 320.68 million yuan from 362.87 million yuan[25] - The company reported a net cash flow from operating activities of ¥205,880,305.22, down 45.4% from ¥377,458,172.51 in the previous period[30] - The company generated cash inflows from investment activities totaling ¥2,254,967,689.98, a decrease from ¥2,604,449,087.07 in the previous period[30] - Cash and cash equivalents at the end of the period increased to $486.83 million, up from $350.51 million, representing a growth of approximately 39%[31] - The company’s cash flow from investment activities showed a net inflow of $60.29 million, a turnaround from a net outflow of -$269.18 million previously[31] Assets and Liabilities - The total assets at the end of Q3 2025 were ¥7,690,888,248.95, a decrease of 3.45% from the end of the previous year[5] - Total liabilities decreased to ¥2,540,845,487.30 from ¥2,958,832,996.02, a reduction of 14.1%[26] - Total equity increased to ¥5,150,042,761.65 from ¥5,006,960,057.85, reflecting a growth of 2.8%[26] - Current assets totaled 3.61 billion yuan, a decrease from 3.65 billion yuan at the start of the period[24] - The company's non-current assets totaled 4.08 billion yuan, down from 4.32 billion yuan at the beginning of the period[25] Shareholder Information - The total number of common shareholders at the end of the reporting period is 25,144[13] - The largest shareholder, Li Shoujun, holds 36.04% of shares, totaling 167,474,479 shares, with 125,605,859 shares pledged[13] - The second-largest shareholder, Liang Wu, holds 5.04% of shares, totaling 23,405,578 shares, with 11,730,000 shares pledged[13] - The total number of restricted shares at the beginning of the period was 130,866,730, with 1,093,425 shares released and 19,380 shares added, resulting in 129,792,685 restricted shares at the end of the period[17] - The company has a high concentration of ownership, with the top five shareholders holding over 50% of the total shares[13] - The company has not reported any changes in the number of preferred shareholders or their holdings[15] Research and Development - Research and development expenses rose to ¥157,025,388.67, an increase of 16.2% compared to ¥135,162,744.28 in the previous period[27] - The company received clinical trial approval for the world's first mRNA vaccine for food animals, enhancing its product line and industry reputation[18] - In Q3, the company obtained approvals for 7 new veterinary products, including vaccines and antibiotics, to strengthen its product matrix in the pet and livestock medicine sectors[18] Investments and Projects - The company has changed part of its fundraising purpose to invest 296 million yuan in a microbial protein industrialization project, with a total investment of 679 million yuan[20] - A joint venture was established with Shengwei Biotechnology to develop vaccines for ruminants, with the company investing 27 million yuan for a 43.55% stake[22] Other Financial Information - The company completed the cancellation of 1,093,200 restricted stock units, reducing its registered capital from 465,847,906 yuan to 464,754,706 yuan[21] - The impact of exchange rate changes on cash and cash equivalents was a positive $196,030.85, down from $392,159.94, reflecting a decrease of approximately 50%[31] - The third quarter financial report was not audited, which may affect the reliability of the reported figures[32]

Core Insights - The company reported third-quarter revenue of 837 million yuan, representing a year-on-year increase of 1.44% [1] - The net profit for the third quarter was 106 million yuan, showing a year-on-year growth of 23.02% [1] - For the first three quarters, the total revenue reached 2.544 billion yuan, marking a year-on-year increase of 13.50% [1] - The net profit for the first three quarters was 362 million yuan, reflecting a significant year-on-year growth of 45.64% [1]

Core Viewpoint - The animal health sector experienced a slight increase of 0.21% on October 24, with significant contributions from specific stocks, particularly Biological Shares, which led the gains [1] Market Performance - The Shanghai Composite Index closed at 3950.31, up 0.71% - The Shenzhen Component Index closed at 13289.18, up 2.02% [1] Stock Performance in Animal Health Sector - Biological Shares (600201) closed at 10.77, up 2.87% with a trading volume of 311,900 shares and a turnover of 333 million yuan - Other notable stocks include: - *ST Green Health (002868): closed at 29.09, up 0.66% - Shunlian Biological (688098): closed at 10.75, up 0.66% - Huisheng Biological (300871): closed at 20.75, up 0.48% - Yongshun Biological (920729): closed at 9.68, up 0.31% - Jinhe Biological (002688): closed at 6.68, unchanged [1] Capital Flow Analysis - The animal health sector saw a net inflow of 8.6031 million yuan from institutional investors, while retail investors experienced a net outflow of 24.4195 million yuan [2] - The breakdown of capital flow indicates: - Repu Biological (300119) had a net inflow of 9.2707 million yuan from institutional investors - Biological Shares (600201) saw a net inflow of 8.4244 million yuan - Kexin Biological (688526) had a net inflow of 5.4428 million yuan from institutional investors [3]

Group 1 - The core point of the article is that Reap Bio (300119) has indicated that as of October 20, 2025, the total number of shareholders is expected to be approximately 25,000 [1]

Core Viewpoint - The animal health sector experienced a decline of 0.36% on October 22, with Dayu Biological leading the drop. The Shanghai Composite Index closed at 3913.76, down 0.07%, while the Shenzhen Component Index closed at 12996.61, down 0.62% [1]. Stock Performance Summary - The following stocks in the animal health sector showed varied performance: - Shengwu Co. (600201) closed at 10.78, up 0.56% with a trading volume of 327,000 shares and a turnover of 351 million yuan - Ruipu Biological (300119) closed at 21.50, up 0.51% with a trading volume of 73,200 shares and a turnover of 158 million yuan - Haili Biological (603718) closed at 7.04, up 0.28% with a trading volume of 44,200 shares and a turnover of 31.17 million yuan - Dayu Biological (920970) closed at 9.46, down 1.25% with a trading volume of 20,800 shares and a turnover of 19.89 million yuan - ST Lvkang (002868) closed at 28.49, down 1.18% with a trading volume of 9,904 shares and a turnover of 28.26 million yuan [1][2]. Capital Flow Analysis - The animal health sector saw a net outflow of 47.45 million yuan from institutional investors, while retail investors contributed a net inflow of 36.66 million yuan. Speculative funds recorded a net inflow of 10.80 million yuan [2][3]. - Specific stock capital flows included: - Shunlian Biological (688098) had a net inflow of 6.94 million yuan from institutional investors but a net outflow of 12.58 million yuan from retail investors - Ruipu Biological (300119) experienced a net outflow of 2.94 million yuan from institutional investors, with a significant net inflow of 13.74 million yuan from speculative funds [3].

Core Viewpoint - The animal health sector experienced a slight decline of 0.02% on October 21, with Bioworks leading the drop. Meanwhile, the Shanghai Composite Index rose by 1.36% and the Shenzhen Component Index increased by 2.06% [1]. Group 1: Market Performance - The animal health sector's performance was mixed, with individual stocks showing varying degrees of increase and decrease. Notably, the top gainers included: - Driving Force (4.50% increase) [1] - Dayu Biological (3.46% increase) [1] - Yongshun Biological (2.06% increase) [1] - Conversely, Bioworks saw a decline of 2.10%, leading the losses in the sector [2]. Group 2: Trading Volume and Capital Flow - The trading volume for the animal health sector indicated a net outflow of 151 million yuan from institutional investors, while retail investors saw a net inflow of 116 million yuan [2]. - The capital flow for individual stocks showed significant movements, with: - Key stock, Bioworks, experiencing a net outflow of 6.46 million yuan from institutional investors [3]. - Retail investors contributed a net inflow of 7.59 million yuan to Zhongmu Co. [3]. Group 3: Individual Stock Analysis - The following stocks had notable capital flows: - KQ Biological had a net inflow of 1.83 million yuan from institutional investors [3]. - ST Green Health faced a net outflow of 4.37 million yuan from institutional investors [3]. - The stock of Rui Pu Biological saw a net inflow of 17.22 million yuan from retail investors despite a net outflow from institutional investors [3].

Investment Rating - The report maintains a "Recommended" rating for the agricultural, forestry, animal husbandry, and fishery industry [9][62]. Core Views - The swine sector is undergoing deepening regulation, with a focus on value reassessment opportunities. The report suggests that the price of pigs may face downward pressure in the short term due to increased market supply, but regulatory measures are expected to stabilize prices in the long run [1][16]. - The poultry sector is anticipated to improve, with data indicating a rise in the number of breeding stock and a shift towards self-breeding [2][27]. - The animal health sector is seeing a potential improvement in competitive dynamics, particularly with the progress of clinical trials for African swine fever vaccines, which could enhance market conditions [3][35]. - The pet economy is thriving, with domestic brands gaining strength and the market expected to continue its rapid growth [9][55]. Summary by Sections Swine - The swine industry is in a regulatory phase aimed at controlling prices through capacity reduction. The average price of pigs is reported at 11.02 yuan/kg, with a weekly decrease of 0.87 yuan/kg. The number of breeding sows is stable at 40.38 million heads [15][16]. - Recommended companies include Muyuan Foods and Wens Foodstuffs, with additional attention on Dekang Agriculture, Shennong Group, and Juxing Agriculture [1][16]. Poultry - The poultry sector shows signs of improvement, with a total of 80.33 thousand sets of breeding stock updated in the first three quarters of 2025. The report highlights a shift towards self-breeding, with self-bred stock accounting for 59% [2][27]. - Recommended companies in this sector are Shennong Development and Lihua Stock [2][27]. Animal Health - The competitive landscape in the animal health sector is expected to improve, supported by government initiatives to optimize the veterinary drug industry. The report notes that clinical trials for African swine fever vaccines are underway, which could lead to commercialization [3][35]. - Recommended companies include Kexin Biological and Ruipu Biological, with additional focus on Huisheng Biological, Zhongmu Biological, and others [3][35]. Planting - The report indicates a declining pig-to-grain price ratio, with the current ratio at 4.95. The prices of corn and soybean meal have shown slight fluctuations, with corn priced at 2181 yuan/ton [39][44]. - Companies to watch include Suqian Agricultural Development, Longping High-Tech, and Denghai Seeds [7][44]. Feed - Feed prices are experiencing fluctuations, with the price for fattening pig feed at 3.34 yuan/kg. The report notes a year-on-year increase in industrial feed production [45][46]. - Recommended companies include Haida Group and He Feng Shares [45][46]. Pets - The pet market is projected to reach 300.2 billion yuan in 2024, with a year-on-year growth of 7.5%. The report highlights the increasing consumption per pet, with dogs averaging 2961 yuan and cats 2020 yuan annually [55][56]. - Recommended companies in the pet food sector include Guibao Pet, Zhongchong Shares, and Petty Shares, with Ruipu Biological in the pet medical sector [9][55].

Market Overview - The animal health sector increased by 0.81% on October 20, with Xianfeng Holdings leading the gains [1] - The Shanghai Composite Index closed at 3863.89, up 0.63%, while the Shenzhen Component Index closed at 12813.21, up 0.98% [1] Stock Performance - Xianfeng Holdings (002141) closed at 4.06, up 5.45% with a trading volume of 588,700 shares and a turnover of 237 million yuan [1] - Other notable stocks included ST Lvkang (002868) at 28.36, up 5.00%, and Biological Shares (600201) at 10.95, up 1.48% [1] - The overall trading volume and turnover for the animal health sector were significant, indicating active market participation [1] Capital Flow - The animal health sector saw a net inflow of 31.5863 million yuan from institutional investors, while retail investors experienced a net outflow of 10.9434 million yuan [2] - The main capital inflow was primarily directed towards Xianfeng Holdings, which had a net inflow of 28.5381 million yuan [3] - Conversely, stocks like Shunlian Biological (688088) and ST Lvkang experienced net outflows from retail investors, indicating a shift in investor sentiment [3]

Core Viewpoint - The company, Reap Bio, is establishing a partnership to invest in the pet industry, focusing on areas such as pet healthcare, food, and services, with a total fund size of 406 million yuan [1][4]. Investment Partnership - Reap Bio will invest 154 million yuan, representing 37.93% of the total fund, while the other partners include Tianjin Port Free Trade Zone Emerging Industry Development Fund (250 million yuan), Tianjin Lingang Equity Investment Fund Management Co., Ltd. (1 million yuan), and Mingzhi Hexin (Tianjin) Equity Investment Fund Management Co., Ltd. (1 million yuan) [1][2]. - The partnership is noted to be the largest specialized fund disclosed in the pet industry since 2025 [1]. Company Background - Reap Bio is a high-tech enterprise serving the animal health industry, focusing on veterinary biological products, veterinary pharmaceuticals, and functional additives, providing comprehensive health solutions for both economic and companion animals [2]. - The company was established in 1998 and became the first A-share listed company focused on veterinary medicine in 2010 [2]. Strategic Development in Pet Industry - The company's foray into the pet sector began in 2012 with the establishment of Reap Pet Hospital, leveraging its brand and supply chain advantages to promote pet medicines and vaccines [3]. - In 2022, Reap Bio strategically invested in Chongqing Yichong Technology Co., Ltd., a leading pet brand management service provider, and made further acquisitions to enhance its stake in Reap Pet Hospital [3]. - The pet supply chain business has become a significant growth driver, with revenues reaching 633 million yuan in 2024, a year-on-year increase of 37.66%, accounting for 20.63% of total revenue [3]. Market Outlook - According to KPMG's report, the Chinese pet market is expected to exceed 811.4 billion yuan by 2025, indicating a robust growth potential for investments in the pet industry [4].

Core Insights - The animal health sector experienced a decline of 0.28% on October 17, with Ruipu Biotech leading the drop [1][2] - The Shanghai Composite Index closed at 3839.76, down 1.95%, while the Shenzhen Component Index closed at 12688.94, down 3.04% [1] Stock Performance - Shenyuan Biological (688088) saw a significant increase of 10.65%, closing at 11.43 with a trading volume of 319,600 shares and a turnover of 368 million yuan [1] - Other notable gainers included Yongshun Biological (920729) with a rise of 2.94% and Xianfeng Holdings (002141) with an increase of 1.85% [1] - Conversely, Ruipu Biotech (300119) fell by 2.47%, closing at 21.69 with a trading volume of 109,100 shares and a turnover of 239 million yuan [2] Capital Flow - The animal health sector saw a net inflow of 33.17 million yuan from institutional investors, while retail investors experienced a net outflow of 37.18 million yuan [2][3] - Shenyuan Biological had a net inflow of 76.52 million yuan from institutional investors, representing 20.82% of its trading volume [3] - In contrast, other companies like XD Plai Ke (603566) and Huayi Biological (603718) faced significant net outflows from both institutional and retail investors [3]