Core Viewpoint - The company, Huisheng Biological, has a diverse product structure focused on veterinary pharmaceuticals, particularly for pigs, while also covering other areas such as poultry, aquaculture, pets, and ruminants [2] Product Structure - The company’s core product line is centered around pig medications, but it also includes a variety of products for other animal categories [2] - In the poultry segment, the company has developed several traditional Chinese veterinary medicine formulations, including Banqing Granules, Qizhen Zengmian Granules, and Qingwen Jiedu Oral Liquid [2] Clinical Efficacy - The mentioned products have shown significant clinical efficacy; however, further research is needed to confirm their effectiveness against avian influenza virus [2]

Core Viewpoint - The company emphasizes its commitment to innovation and collaboration in research and development, focusing on both the quantity and quality of its R&D efforts [2] Group 1: R&D Strategy - The company is enhancing its R&D foundation and optimizing conventional drug processes to improve cost-effectiveness [2] - It is accelerating the transformation of R&D results, particularly in the fields of biological veterinary medicine and traditional Chinese veterinary medicine [2] Group 2: New Product Development - The company has obtained approval for six new veterinary drug formulations this year, including two products, chlorhexidine acetate soft capsules and enconazole solution, which fill gaps in the domestic market [2] - The approval of new products is expected to enhance the company's market competitiveness, although market acceptance for these new products will require time [2]

Group 1 - The company emphasizes the importance of communication with the capital market [1] - The company has established a diversified investor communication mechanism [1] - Various forms of communication are utilized, including investor consultation calls, emails, interactive platforms, performance briefings, and participation in major institutional strategy meetings [1]

Core Viewpoint - The company indicated that fluctuations in raw material prices are just one of the factors affecting its performance, and these price changes are not predictable. A detailed disclosure of the fourth-quarter operating conditions will be provided in the 2025 annual report [1] Group 1 - The company responded to investor inquiries on November 5 regarding the impact of raw material prices on its performance [1] - The company emphasized that the changes in raw material prices do not have predictive qualities [1] - A comprehensive report on the fourth-quarter performance will be included in the 2025 annual report [1]

Core Viewpoint - The company is adapting to a changing market environment and competitive landscape by focusing on technology-driven strategies and increasing investment in research and innovation to enhance profitability [1] Group 1: Strategic Focus - The company will concentrate on the development of new veterinary drugs to provide high-quality and cost-effective animal health products and solutions for the aquaculture industry, thereby improving the efficiency of its clients' farming operations [1] - The company aims to deepen its "raw material-formulation integration" strategy to ensure stable raw material supply and controllable costs, which will enhance competitive barriers and increase product market competitiveness [1] Group 2: Business Expansion - The company is accelerating its layout in the pet medicine sector by leveraging its advantages in research and innovation to enrich its product matrix and complete the pet business segment, creating a new growth driver [1] - The company is implementing an "outbound" strategy to actively explore overseas markets, which will help mitigate the cyclical impacts on domestic business [1]

Core Viewpoint - The company emphasizes its commitment to legal compliance and adherence to regulatory requirements for listed companies [2] Group 1 - The company responded to investor inquiries on November 5, indicating its focus on lawful and compliant operations [2] - The company operates strictly in accordance with the regulatory requirements for listed companies [2]

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]

Market Overview - The animal health sector experienced a decline of 2.79% on October 30, with Jinhe Biology leading the drop [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Individual Stock Performance - Jinhe Biology (002688) closed at 6.25, down 7.13% with a trading volume of 578,000 shares and a transaction value of 367 million yuan [1] - Keqian Biology (688526) closed at 16.15, down 6.76% with a trading volume of 139,800 shares and a transaction value of 228 million yuan [1] - Maofeng Holdings (002141) closed at 3.92, down 5.08% with a trading volume of 461,300 shares and a transaction value of 18.3 million yuan [1] - Other notable declines include Dayu Biology (920970) down 2.69%, and Pulaike (603566) down 2.68% [1] Capital Flow Analysis - The animal health sector saw a net outflow of 84.7 million yuan from institutional investors, while retail investors experienced a net outflow of 16.5 million yuan [1] - Speculative funds recorded a net inflow of 101 million yuan [1] Detailed Capital Flow for Selected Stocks - Keqian Biology (688526) had a net inflow of 39.6 million yuan from institutional investors, while retail investors saw a net outflow of 60.9 million yuan [2] - Huisheng Biology (300871) experienced a net inflow of 18.3 million yuan from institutional investors, with a net outflow of 21.2 million yuan from retail investors [2] - Other stocks like Pulaike (603566) and Maofeng Holdings (002141) also reported significant net outflows from institutional investors [2]

Core Insights - The animal health sector experienced a 0.64% increase on October 29, with Huisheng Biological leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Stock Performance Summary - Huisheng Biological (300871) closed at 22.28, up 4.31%, with a trading volume of 152,000 shares and a turnover of 336 million yuan [1] - Other notable performers included: - Qudongli (920275) at 9.90, up 3.56% [1] - Yongshun Biological (920729) at 10.07, up 3.49% [1] - Dayu Biological (920970) at 9.66, up 3.32% [1] - Biological Shares (600201) at 10.83, up 1.88% [1] Capital Flow Analysis - The animal health sector saw a net outflow of 74.47 million yuan from institutional investors, while retail investors contributed a net inflow of 77.19 million yuan [2] - Specific stock capital flows included: - Huisheng Biological with a net outflow of 30.38 million yuan from institutional investors [3] - Repu Biological (300119) had a net inflow of 157,170 yuan from institutional investors [3] - ST Lvkang (002868) experienced a significant net outflow of 2.33 million yuan from institutional investors [3]

Group 1: Financial Performance - In the first three quarters of 2025, the company achieved revenue of 1.26 billion CNY, a year-on-year increase of 58.92% [1] - Net profit attributable to shareholders reached 188 million CNY, up 494.28% year-on-year; net profit excluding non-recurring items was 166 million CNY, a growth of 611.92% [1] - In Q3 2025, revenue was 437 million CNY, reflecting a year-on-year growth of 22.76%; net profit attributable to shareholders was 70.72 million CNY, a staggering increase of 1,575.79% [1][2] Group 2: Strategic Initiatives - The company focuses on a dual strategy of vertical integration in raw material pharmaceuticals and horizontal expansion into pet, poultry, ruminant, and aquaculture sectors [1] - Continuous investment in R&D has enriched the product matrix and reduced production costs, contributing to record operational performance [3] Group 3: Product Development - The company has obtained 6 new veterinary drugs this year, including two products that fill domestic market gaps [3] - New products are expected to enhance market competitiveness, although their promotion requires gradual market acceptance [3] Group 4: Market Expansion - The company is actively pursuing an "outbound" strategy, with a production base in Vietnam now operational and 63 production approvals obtained [4] - A sales service company has been established in Indonesia to explore new overseas markets [4] Group 5: Accounts Receivable Management - The company maintains a robust accounts receivable management system, ensuring careful evaluation of customer credit situations [5] - Current credit policies remain unchanged, and customer payment collection is normal [5] Group 6: Pet Business Development - The company has increased investment in pet drug R&D and market channel development, utilizing both online and offline sales strategies [6][7] - The pet segment has shown strong sales growth, with new products like the Enrofloxacin solution addressing market needs [7]