Summary of Conference Call Records Industry Overview - The conference call primarily discusses the **agriculture sector** in China, focusing on livestock, particularly **beef cattle**, **dairy cows**, and **pigs** [1][2][4][5]. Key Points and Arguments Beef Cattle and Dairy Market - Domestic beef cattle inventory has been declining since mid-2023, with an expected decrease of over **10%** this year [1][2]. - Global beef cattle inventory has also been decreasing since 2022, with expectations for continued reduction this year [1][2]. - Chinese government policies are reducing beef imports, contributing to rising domestic beef prices, which are expected to maintain an upward trend for over **two years** [1][2][7]. - Raw milk prices are anticipated to stabilize and rise by **2026**, with a strong correlation to beef cattle prices [1][3]. - Dairy cow inventory has decreased by over **5%** year-on-year since early **2024**, with over **90%** of farms currently operating at a loss [8]. Pig Farming Sector - The pig farming sector is experiencing a supply-side reform that is expected to enhance profitability in the medium to long term [4][10]. - Policies are guiding the management of pig inventory, weight, and breeding stock, with a target to keep the pig population at or below **39.5 million** [4][10]. - If the pig population is effectively controlled, a profit reduction of approximately **200 CNY** per pig is expected, while leading enterprises could see profits near **400 CNY** per head [4][10]. - The average price for pigs is projected to fluctuate around **4.5 CNY** per kilogram this year, with profits potentially compressing to **30-100 CNY** per head [10]. Grain and Feed Market - Grain prices for corn and wheat have reached a bottom and are expected to rise due to external disturbances, positively impacting related sectors [2][3][19]. - Total feed production has improved significantly year-on-year, with feed prices stabilizing at the bottom [2][18]. - Companies benefiting from the recovery in feed stock include **Haida Group** and **Feng Group** [2][18]. Policy and Market Dynamics - Policy adjustments, including environmental standards and credit controls, are expected to effectively manage capacity expansion and improve overall industry profitability [12][15]. - The agricultural sector is viewed as a defensive investment, particularly in a volatile market environment [5][2]. Future Trends and Recommendations - The beef and raw milk markets are expected to see upward trends due to supply constraints and increasing demand [7][8]. - Companies such as **YouRan Agriculture**, **Modern Agriculture**, and **Guangming Meat Industry** are recommended as beneficiaries of rising meat and milk prices [9]. - The pig farming market is shifting towards larger enterprises, which may lead to a more stable supply rhythm and improved profitability for cost-efficient companies [11][15]. Additional Insights - The poultry market, particularly for yellow feathered chickens, is stabilizing after previous disruptions, with a potential for improved performance as market conditions normalize [16]. - The white feathered chicken supply is currently adequate, with attention needed on domestic substitution themes and mid-tier consumption improvements [17]. Conclusion The agriculture sector in China is undergoing significant changes, with rising prices in beef and dairy expected to continue due to supply constraints and favorable policies. The pig farming sector is also poised for profitability improvements through effective supply-side reforms. Investors are advised to focus on companies with strong cost advantages and those positioned to benefit from the anticipated market trends.

Investment Rating - The report maintains a "Positive" investment rating for the agricultural products sector [11]. Core Insights - The pig farming industry has entered a clearing phase since 2021, with capital expenditure from large enterprises continuing to contract, leading to a recovery trend in industry ROE levels. Current industry capacity remains relatively excessive, and if policies are effectively implemented, it is expected to enhance profitability and stability in the sector. Attention should be paid to investment opportunities in leading enterprises [2][6][9]. Summary by Sections Industry Overview - The pig farming industry is in a mature stage, characterized by a significant increase in the scale of operations over the past 20 years. The proportion of large-scale farms (over 500 heads) has risen from 8.8% in 2000 to 70% in 2024, indicating a shift towards concentration and professionalization in the industry [7][16]. Policy Impact - Recent policies have emphasized capacity control and high-quality development. The current breeding sow inventory exceeds the normal level of 39 million heads, indicating an oversupply in the industry. The government has been proactive in promoting capacity control through various policy documents [30][31]. Trends and Investment Opportunities - The report identifies two major trends in the pig farming industry: 1. An expected increase in industry ROE levels with reduced volatility, highlighting the advantages of quality enterprises. The average ROE is projected to rise from -10% in 2021 to 21% in 2024 [9][45]. 2. An increase in free cash flow levels, leading to significant shareholder returns for quality enterprises. The industry is expected to generate a total free cash flow of 23 billion yuan in 2024, a 100% increase year-on-year [54][60]. Recommended Companies - The report specifically recommends investing in leading companies in the sector, including Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, and Shennong Group, as their valuations are currently at historical lows [2][9].

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Views - The supply contraction has reached a point where the average price of live pigs is expected to rise, with the national average price at 14.74 yuan/kg as of June 29, 2025, showing a week-on-week increase of 0.45 yuan/kg but a year-on-year decrease of 3.17% [4][13] - The profit of pig farming enterprises is expected to maintain high growth year-on-year in Q2 2025, driven by increased output, heavier average weights, and reduced costs [5][23] - The investment logic for the pig sector is improving due to supply contraction and macroeconomic catalysts, suggesting a positive allocation strategy [6][30] Summary by Sections Weekly Observation - In Q2 2025, the average price of live pigs is projected at 14.55 yuan/kg, a year-on-year decrease of 11.22%, while the cost of pig farming has decreased to 13.38 yuan/kg, a year-on-year decline of 2.92% [5][23] - The average weight of pigs at slaughter has increased to 128.99 kg/head, a year-on-year increase of 2.42%, with a projected year-on-year increase of 34.07% in the total output of 12 major listed pig companies [5][23] Weekly Market Performance - The agricultural index underperformed the broader market by 1.11 percentage points, with the Shanghai Composite Index rising by 1.91% and the agricultural index increasing by 0.80% [34][36] - The aquaculture sector led the gains, with notable increases in individual stocks such as Biological Shares (+9.83%) and Spring Snow Food (+9.82%) [34][38] Price Tracking - As of June 27, 2025, the national average price for live pigs was 14.72 yuan/kg, up 0.50 yuan/kg from the previous week, while the average price for piglets was 31.6 yuan/kg, down 0.25 yuan/kg [41][44] - The feed price ratio for pigs was recorded at 4.38:1, indicating the profitability dynamics in the sector [41] Recommendations - The report recommends actively allocating investments in leading pig companies such as Muyuan Foods, Wens Foodstuff Group, and others, as well as in the feed sector benefiting from strong overseas demand [6][30]

Group 1 - The company, Leshan Giantstar Farming & Husbandry Corporation Limited, issued convertible bonds totaling 1 billion RMB, with each bond having a face value of 100 RMB, approved by the China Securities Regulatory Commission [1][14][16] - The bonds have a maturity period of 6 years, from April 25, 2022, to April 24, 2028, with an annual interest rate that increases from 0.40% in the first year to 3.00% in the sixth year [1][8][19] - The initial conversion price for the bonds is set at 25.24 RMB per share, subject to adjustments based on various corporate actions [4][5][6] Group 2 - The company reported a significant increase in revenue, achieving 607,824.71 million RMB in 2024, a 180.36% increase compared to the previous year [16] - The net profit attributable to shareholders reached 51,854.80 million RMB, marking a substantial recovery from a loss of 64,529.41 million RMB in the prior year [16] - The net cash flow from operating activities surged to 126,509.18 million RMB, reflecting a 1,304.23% increase year-on-year [16] Group 3 - The company has established a dedicated account for managing the funds raised from the bond issuance, ensuring compliance with regulatory requirements [17] - The total amount of funds utilized from the bond issuance as of the end of 2024 was 98,259.36 million RMB, with a remaining balance of 12,571,813.07 RMB in the dedicated account [18] - The company has committed to using the raised funds primarily for its integrated pig breeding project and working capital [18]

股票简称：巨星农牧 股票代码：603477 转债简称：巨星转债 转债代码：113648 乐山巨星农牧股份有限公司 向不特定对象发行可转换公司债券 受托管理事务报告 （2024 年度） 债券受托管理人 | | 重要声明 1 | | --- | --- | | 目 | 录 2 | | 第一节 | 本次债券概况 3 | | 第二节 | 受托管理人履行职责情况 13 | | 第三节 | 发行人年度经营与财务状况 14 | | 第四节 | 发行人募集资金使用情况 17 | | 第五节 | 本次债券担保人情况 20 | | 第六节 | 债券持有人会议召开情况 21 | | 第七节 | 本次债券付息情况 22 | | 第八节 | 本次债券跟踪评级情况 23 | | 第九节 | 债券持有人权益有重大影响的其他事项 24 | 第一节 本次债券概况 一、核准文件及核准规模 二〇二五年六月 重要声明 本报告依据《公司债券发行与交易管理办法》（以下简称"《管理办法》"）、 《乐山巨星农牧股份有限公司与华西证券股份有限公司关于公开发行可转换公 司债券之受托管理协议》（以下简称"《受托管理协议》"）、《乐山巨星农牧 股份有限公司公开发行 ...

Core Insights - The report suggests focusing on agricultural investment opportunities driven by price increases in key products such as beef and grains, policy reforms in the supply side, and recovery in downstream demand [5] - The beef industry is expected to see a price upturn after a period of losses, with a projected industry capacity reduction exceeding 10% [5][12] - The pig farming sector is anticipated to experience a slight decline in supply in 2025, with a focus on high-quality leading enterprises due to supply-side policies [5][45] - Poultry farming is facing supply disruptions, but demand recovery is expected to improve the market [5][87] Livestock Industry - Global beef prices have started to rise again after two years of decline, with May prices reaching $6.62 per kg, a 13% year-on-year increase [12] - China's beef consumption is projected to grow, with a total consumption of 11.52 million tons in 2024, up 3.84% year-on-year [22] - The domestic beef supply is expected to decline significantly due to a drop in cattle inventory, with a forecasted reduction of over 10% [22][24] Dairy Industry - China's raw milk prices have been declining since mid-2021, with the average price at 3.04 yuan per kg as of June 13, 2024, down 7.88% year-on-year [33] - The dairy industry is experiencing a significant capacity reduction, with over 90% of the industry facing losses [33] - A potential recovery in milk prices is anticipated in the second half of 2025 as supply-side capacity continues to decrease [38] Pig Farming - The pig supply is expected to increase slightly in 2025, with a projected output of 703 million pigs in 2024, down 3.3% year-on-year [45] - The average price of pigs is forecasted to be around 14.5 yuan per kg for the year, reflecting a decrease in supply pressure [45][54] - The industry is experiencing a recovery in profitability, with average profits for self-breeding and self-raising operations improving significantly [54][67] Poultry Farming - The yellow-feathered chicken market is stabilizing, with a projected output of 3.34 billion birds in 2024, down 7.18% year-on-year [92] - The white-feathered chicken supply remains ample, with prices stable as the market awaits demand recovery [98] - Long-term demand for white-feathered chicken is expected to rise, supported by improved efficiency and domestic breed replacement [102] Feed and Grain - The total feed volume is expected to increase due to rising pig inventories and improved profitability in livestock farming [107] - Grain prices are projected to recover from recent lows, influenced by external factors such as weather and international relations [117] - The report emphasizes the importance of grain security and the potential impact of trade relations on domestic agricultural costs [117]

Investment Rating - The report maintains an "Outperform" rating for the agricultural products sector [1][5][4]. Core Views - The report is optimistic about the reversal of the beef cycle and recommends investments in leading companies in the livestock sector, particularly in beef and raw milk, which are expected to experience a positive resonance in 2025 [3][4]. - The pet industry is highlighted as a growth sector benefiting from demographic changes, while the feed sector, particularly Haida Group, is expected to gain from the recovery in aquaculture [3][4]. - The report notes that the pig industry shows insufficient expansion willingness, but the overall market conditions are expected to remain stable through 2025, with a focus on undervalued leading companies [3][4]. - Poultry production is expected to maintain low volatility, with white chicken consumption gradually increasing and yellow chicken likely to benefit from improved domestic demand [3][4]. Summary by Sections Livestock - **Pork**: The average price of live pigs is 14.16 CNY/kg, with a week-on-week increase of 1.22%. The price of 7kg piglets is approximately 446 CNY/head, down 4.98% week-on-week [1][13]. - **Beef**: The domestic beef market price is 59.35 CNY/kg, showing a slight decrease of 0.05% week-on-week but a significant increase of 27.63% year-on-year [1][15]. - **Poultry**: The price of broiler chicks is 1.23 CNY/bird, down 43% week-on-week, while the price of eggs in major production areas is 2.90 CNY/jin, up 9.85% week-on-week but down 35.27% year-on-year [1][14]. Feed and Raw Materials - **Soybean Meal**: The spot price is 3024 CNY/ton, with a week-on-week increase of 1%. The report indicates strong support for supply and demand in the medium to long term [2][3]. - **Corn**: The domestic corn spot price is 2415 CNY/ton, with a week-on-week increase of 0.37% and a year-on-year increase of 0.12% [2][3]. - **Sugar**: The price in Guangxi is 5980 CNY/ton, down 0.17% week-on-week, with attention on import rhythms and crude oil price fluctuations [2][3]. Investment Recommendations - Recommended stocks include: - **Beef**: Guangming Meat Industry - **Pets**: Guibao Pet, Zhongchong Co., and Ruipu Biological - **Feed**: Haida Group - **Pork**: Dekang Agriculture, Muyuan Foods, Huazhong Agriculture, and others - **Poultry**: Lihua Co., Yisheng Co., and Shengnong Development [3][4].

Group 1: Pig Farming Industry - The report presents a unique research framework that suggests pig prices may stabilize before declining, reaching a low by the end of the year, with capacity reduction being a current industry theme [2][4] - The analysis indicates that the pig cycle consists of efficiency and breeding cycles, with a 7% year-on-year decline in breeding sows correlating with stable pig prices [3][4] - The report emphasizes that the current phase is characterized by price declines and capacity reduction, with a focus on the impacts of prices, policies, and diseases [4][5] Group 2: Duty-Free Industry - The report highlights a significant narrowing of the sales decline in the duty-free sector, with a strong rebound in average transaction value, indicating signs of data recovery [2][10] - The implementation of the "immediate buy and refund" policy nationwide is expected to enhance the shopping conversion rate for foreign consumers in China [12][20] - The report suggests that the duty-free channel has significant price advantages, allowing it to capture market share effectively, with products like cosmetics being priced at 70-80% of taxable prices [12][22] Group 3: Debt Market - The report anticipates a key strategy shift in the debt market, with expectations of a long-term decline in broad interest rates due to economic data divergence and capital market resilience [6][7] - It discusses the potential for credit bond rates to decrease, enhancing the attractiveness of government bonds [8][9] - The report emphasizes the importance of monitoring liquidity and interest rate trends, suggesting that the debt market may experience a rebound [6][7] Group 4: Solid-State Battery Industry - The report indicates that the solid-state battery industry is entering a phase of accelerated industrialization, supported by government policies and funding [24][25] - It highlights the significant market potential for solid-state batteries in various applications, including electric vehicles and low-altitude aircraft [25][26] - The report notes that leading companies are making progress in developing solid-state battery prototypes, which is expected to attract more players into the market [26][27] Group 5: Construction Industry - The report outlines that broad infrastructure investment increased by 9.2% year-on-year, while real estate investment decreased by 12% [28][30] - It emphasizes the need for continued policy support to stabilize the real estate market and improve market confidence [30][31] - The report recommends several construction companies with high dividend yields as potential investment opportunities [31]

Investment Rating - The industry investment rating is maintained as "Outperform the Market" [1][40]. Core Viewpoints - The agricultural sector has experienced a significant decline, with the industry index dropping by 3.13%, ranking 26th among 31 primary industries in terms of performance [2][11]. - The report indicates that the pig market is under pressure, with prices continuing to decline, and the impact of regulatory policies is expected to manifest next year [3][17]. - The white feather chicken market is facing a decrease in chick prices, with a focus on domestic breeding opportunities due to uncertainties in imports [4][27]. Summary by Sections Market Review - The agricultural sector has seen a substantial drop, with the industry index down 3.13%, while the broader market indices like the CSI 300 and Shanghai Composite Index fell by 0.45% and 0.51% respectively [11][12]. - The core agricultural sectors have all declined, and the market sentiment remains cautious with a wait-and-see approach [12]. Livestock Industry Chain Tracking - Pig prices have continued to decline, with the national average price at 13.93 CNY/kg as of June 22, which is the second time this month it has fallen below 14 CNY [3][15]. - The price of 15 kg piglets has dropped to 400 CNY/head, down over 200 CNY from the year's peak [3][15]. - The supply of pigs is currently adequate, and the high temperatures in June have affected consumption, leading to increased selling activity from farmers [3][15]. - The report anticipates a seasonal increase in pig supply in the second half of 2025, with prices expected to fluctuate within a narrow range [17]. - The report suggests that the profitability of the industry will be a key focus this year, with cost differences being the most effective indicator of companies' profitability [17][18]. Poultry Industry Chain Tracking - As of June 20, the price of white feather chicken chicks in Yantai is 1.90 CNY/chick, a significant drop of 0.8 CNY from the previous week, while the price of broiler chickens is 3.48 CNY/jin, down 2.79% [4][27]. - The report highlights that the uncertainty surrounding imports has eased, and there is a growing focus on domestic breeding as a potential opportunity [4][27]. Planting Industry Chain Tracking - Sugar prices have adjusted downwards, with the price of white sugar in Liuzhou at 6055 CNY/ton, down 35 CNY from the previous week [32]. - Soybean prices have shown a slight increase, with the imported price at 3877 CNY/ton, up 1.9% from the previous week [32]. - Corn prices have continued to rise, with the national average at 2381 CNY/ton, up 25 CNY from the previous week [32].

Group 1 - The company announced a share repurchase plan with a total expected amount of RMB 50 million to 100 million, aimed at implementing an employee stock ownership plan or equity incentives [1][2] - The repurchase period is set from April 23, 2025, to April 22, 2026, following the board's approval on April 23, 2025 [1][2] - As of December 31, 2024, the company's total assets were RMB 8.764 billion, and the net assets attributable to shareholders were RMB 3.301 billion, with the repurchase amount representing 1.14% of total assets and 3.03% of net assets [1] Group 2 - The company has repurchased a total of 985,000 shares, accounting for 0.19% of the total share capital of 510,070,333 shares, with a total expenditure of RMB 20,208,264 [2] - The highest repurchase price was RMB 20.62 per share, while the lowest was RMB 20.43 per share [2] - The company will continue to make repurchase decisions based on market conditions and will fulfill information disclosure obligations regarding the progress of the share repurchase [2]