Summary of Kangnong Seed Industry Conference Call Company Overview - **Company**: Kangnong Seed Industry - **Industry**: Corn Seed Production Key Financial Metrics - **Revenue Growth**: Revenue is expected to grow at a compound annual growth rate (CAGR) of 26.3% from 2019 to 2024, increasing from 108.8 million to 336.6 million [6] - **Net Profit Growth**: Net profit is projected to grow at a CAGR of 21.7%, from 30.9 million to 82.6 million [6] - **2025 Q1 Performance**: Revenue for Q1 2025 was 24.3 million, with a net profit of -0.89 million, indicating a slight decline year-over-year [6] Core Business and Market Position - **Core Product**: Corn seeds account for over 96% of total revenue, with significant contributions from the Southwest region, which represents nearly 50% of total revenue [2][7] - **Market Share**: The market share in the Southwest region reached 5.97% by 2022, showing steady growth [2][12] - **New Product Launch**: The new hybrid corn variety, Kangnong Yu 8,009, has been approved and is expected to enhance market penetration in the Huanghuaihai region [2][13] Research and Development - **R&D Investment**: R&D expenditure is projected to reach 14.4 million in 2024, with an R&D expense ratio of 4.3% [2][4] - **Innovation**: The company holds 25 new corn plant variety rights and has developed 77 approved hybrid corn varieties, indicating a strong technical reserve [2][10] Market Dynamics - **Industry Growth**: The hybrid corn market in China grew from 27.85 billion to 31.18 billion from 2016 to 2021, with a CAGR of 2.3% [8] - **Global Market Outlook**: The global corn market is expected to reach 58.7 billion by 2026, with a CAGR of 3.8% [8] - **Concentration Risk**: The top five companies in the Chinese market hold only 12% market share, indicating low market concentration [8] Policy Environment - **Support for Innovation**: Chinese policies are increasingly supportive of technology-driven enterprises, which is beneficial for companies with strong R&D capabilities [9] Competitive Advantages - **Integrated Breeding System**: The company has established a mature integrated breeding and promotion system, enhancing its competitive edge [10] - **Cost Efficiency**: The company maintains a low expense ratio, contributing to its strong gross and net profit margins [15] Future Projections - **Revenue Forecast**: Expected revenues for 2025, 2026, and 2027 are projected at 441 million, 574 million, and 717 million respectively, with gross margins of 36.7%, 38.1%, and 39.6% [4][16] - **Risks**: Potential risks include revenue concentration, geographic concentration, and external factors such as natural disasters and pest outbreaks [16] Expansion Plans - **Production Capacity**: The company plans to raise funds to expand corn seed production capacity by 25,000 tons and upgrade to advanced automated production lines [5][14] Conclusion Kangnong Seed Industry demonstrates strong growth potential driven by its core corn seed business, robust R&D capabilities, and strategic market positioning. However, attention must be paid to risks associated with revenue concentration and external market factors.

Group 1 - The core viewpoint of the news is that the establishment of a growth layer in the Sci-Tech Innovation Board aims to enhance the inclusiveness and adaptability of the system, directing resources towards technology-driven companies that are not yet profitable, thereby promoting innovation and economic growth [1][2] - The current national strategy emphasizes innovation-driven development, recognizing technology as a key production factor alongside labor and capital, with a growing demand for innovation investment surpassing that for general labor input [1] - The introduction of the growth layer is intended to facilitate funding for technology innovation companies that require substantial and long-term R&D investments, which may not yield immediate revenue but can lead to significant profits once new products are successfully launched [2] Group 2 - Investors are cautioned that investing in unprofitable growth-oriented companies differs from investing in profitable value-oriented firms, as the uncertainty in assessing growth potential and future value is significantly higher [3] - The new guidelines include enhanced investor suitability management requirements and emphasize the need for clear disclosure of operational and investment risks associated with unprofitable companies [3] - The guidelines also propose the expansion of Sci-Tech Innovation Board indices and ETF categories, allowing investors with a certain risk tolerance to participate in ETF investments related to the board [3] Group 3 - For unprofitable Sci-Tech companies seeking to enter the capital market, it is recommended to involve experienced institutional investors during the pre-IPO financing stage, as their investment can serve as a reference during the listing process [4] - The guidelines suggest conducting pre-review work to facilitate a smoother listing process, which can be seen as a service provided by the stock exchange to assist companies [4] - The guidelines encourage companies in emerging industries such as artificial intelligence and commercial aerospace to actively communicate with regulatory bodies to secure financing through the capital market [4] Group 4 - Companies currently in the listing process can raise funds through capital increases from existing shareholders, which can help sustain operations during the lengthy IPO preparation period [5] - Companies that have been listed for less than three years may also consider mergers with other listed companies as a means to secure further financing and development [5]

Core Viewpoint - Wuhan is actively transforming its advantages in science, education, transportation, and ecology into development momentum, aiming to become a strategic hub in central China [1] Group 1: Innovation and Talent - Wuhan has achieved a world record of 71.36 Tesla in pulsed magnetic fields at the National Pulsed Magnetic Field Science Center, surpassing the previous record of 64 Tesla set in 2018 [2] - The city is home to 141,000 university students and 81 academicians, highlighting its strong talent pool [2] - Wuhan plans to establish its first batch of industrial innovation joint laboratories in 2024, aiming to tackle key technologies and develop major innovative products within three years [2][3] Group 2: Transportation Hub - Yangluo Port is the leading container throughput port in the middle and upper reaches of the Yangtze River, with a throughput of 2.381 million TEUs in 2024, a 3.5% increase year-on-year [4] - The China-Europe Railway Express (Wuhan) has launched its second starting station at Yangluo Port, enhancing connectivity to Europe [4] - Wuhan's GDP is projected to exceed 2.1 trillion yuan in 2024, with a foreign trade volume surpassing 400 billion yuan, reflecting its growing role as a dual-circulation hub [5] Group 3: Ecological Development - The water quality of the Yangtze River in Wuhan has maintained a stable Class II standard for five consecutive years, contributing to ecological restoration efforts [6] - The ecological restoration of abandoned mines in Jiangxia District has led to a 12% increase in vegetation coverage and the establishment of a popular tourist destination [6] - Wuhan is promoting the application of the ecosystem production value (GEP) accounting system to quantify ecological value [6][7] Group 4: Cultural and Tourism Integration - Wuhan is developing a world-class cultural tourism destination centered around iconic sites like the Yellow Crane Tower, with over 130,000 visitors during the recent holiday [8] - The East Lake Ecological Tourist Area aims to create a world-class resort, having received 13.3 million visitors from January to May 2024 [8] - The city is leveraging its cultural heritage and innovative projects to enhance its international image as a vibrant and technologically advanced city [9]

Core Insights - The article highlights the transformation of China's manufacturing industry from a "world factory" to a "manufacturing powerhouse" over the past decade, emphasizing the shift from "made in China" to "created in China" [1][3] - The success of the Chinese printer manufacturer, Pantum, is presented as a case study of overcoming global technological barriers and achieving significant advancements in the printing industry [3][12] Industry Overview - The printer industry is characterized as a "high-tech intensive" sector with significant technological barriers, involving over 200,000 patents across various advanced disciplines [4][6] - Prior to 2018, domestic laser printer manufacturers held only about 5% of the global market share, indicating a long-standing technological gap [4] Company Development - Pantum began its research and development in 2007, facing challenges such as a lack of technology and international patent restrictions, with over 90% of core patents held by companies from the US and Japan [6][10] - The company successfully launched China's first A4 laser printer with independent core technology in 2010, positioning China among the top three countries with such capabilities [6][10] - By 2024, Pantum is set to release China's first fully independent A3 laser copier, completing the country's high-end printing technology landscape [6][10] Technological Innovations - Pantum has invested billions in R&D and built a team of over 2,000 researchers, achieving breakthroughs in core components such as the printer engine and SoC main control chip [6][10] - The company established a comprehensive quality control system that exceeds national and EU standards, ensuring high-quality production from material development to final product testing [7] Product Achievements - At the Summer Davos Forum, Pantum set a world record with its printer capable of continuous printing of 400,000 pages and a paper jam rate of less than 0.02‰, showcasing the company's technological advancements [3][9] - The new "Kangda" series products integrate four core capabilities: durability, intelligence, energy efficiency, and ecological adaptability, redefining reliability and smart standards in the printing industry [9][12] Market Impact - Pantum's innovations have led to the establishment of 12 national standards for laser printers, reshaping market dynamics and positioning the company as a leader in setting industry benchmarks [12] - The company's products are now available in over 110 countries, maintaining a leading growth rate in the global industry for eight consecutive years, with over 20 million units sold [12]

Core Viewpoint - The city of Yangzhou is focusing on brand development as a core strategy to enhance its competitiveness, aiming to transform "Yangzhou products" into "Yangzhou brands" through a structured approach involving both government guidance and enterprise initiatives [1] Group 1: Policy Guidance - Yangzhou has established brand building as a strategic pivot for high-quality urban development, enhancing its policy framework through various initiatives [2] - The city has introduced several financial incentives, including a special fund for brand development, with rewards up to 1 million yuan for companies achieving significant brand honors [2] - An annual budget of 3 million yuan is allocated to support the revitalization of time-honored brands, with over 430,000 yuan invested in 27 projects to date [2] Group 2: Innovation and Competitiveness - The vitality of Yangzhou's service industry brand construction is rooted in innovative practices, transitioning from traditional manufacturing to modern intelligent manufacturing [3] - Time-honored brands are revitalizing by adopting innovative business models and integrating modern technology with traditional craftsmanship [3] - The Yangzhou lacquer factory has successfully combined ancient techniques with modern technology, enhancing production efficiency and product quality [3] Group 3: Cultural Integration - Yangzhou emphasizes the integration of cultural elements into brand development, enhancing brand identity through storytelling and cultural heritage [5] - The city has established over 70 cultural facilities to promote local culinary and artistic traditions, fostering consumer connection and brand loyalty [5] - Yangzhou is actively promoting its service brands on international platforms, enhancing the global presence of its cultural heritage [5] Group 4: Public Engagement - The city is leveraging media platforms to enhance public awareness and appreciation of its service brands, creating a favorable environment for brand recognition [6] - Initiatives such as brand culture exhibitions and service experience days are being encouraged to bridge the gap between brands and the public [6] - Yangzhou aims to cultivate a culture of trust and support for local brands, reinforcing the importance of quality and brand value in the community [6]

Core Insights - In the first five months, the total profit of industrial enterprises above designated size reached 27,204.3 billion yuan, showing a year-on-year decline of 1.1% despite an increase of 6,034.1 billion yuan compared to the first four months [1] Group 1: Profit Trends - The profit of industrial enterprises decreased year-on-year due to multiple factors including insufficient effective demand, declining industrial product prices, and short-term fluctuations [1] - Although the total profit declined, the gross profit calculated by deducting operating costs from operating income increased by 1.1% year-on-year, contributing to a 3.0 percentage point increase in overall profits for industrial enterprises [1] Group 2: Policy Impact - The "Two New" policy has shown continuous effects, with various regions and departments intensifying efforts to implement the policy, effectively releasing domestic demand vitality [1] - Under the influence of large-scale equipment renewal policies, the profits of the general equipment and specialized equipment industries increased by 10.6% and 7.1% year-on-year, respectively, collectively contributing 0.6 percentage points to the growth of profits for industrial enterprises above designated size [1] Group 3: Future Outlook - The next phase will focus on thoroughly implementing the decisions and deployments of the Central Committee and the State Council, adopting more proactive macro policies, strengthening domestic circulation, enhancing innovation-driven development, and solidifying the foundation for the recovery of industrial enterprise efficiency [1]

投资者关系活 动类别 √特定对象调研 □分析师会议 □媒体采访 □业绩说明会 □新闻发布会 □路演活动 □现场参观 □其他（请文字说明其他活动内容） 参与单位名称 及人员 中信资管：唐萤、张力琦、肖云凯、鲍明明、卢华权 时间 2025 年 6 月 26 日 地点 公司行政二号会议室 上市公司接待 人员姓名 副总裁兼董事会秘书：李霞 证券事务主管：肖莉 投资者关系活 动主要内容介 绍 1.请简要介绍 2025 年公司海外冰洗产业的市场策略 答：公司冰洗海外市场方面，在产品布局上紧密把握全球消 费需求升级趋势，主推"风冷、变频、多门、节能"等趋势性产 品，构建"高端高品味、中端高性价比、低端高效率"产品矩阵， 精准匹配差异化市场消费需求；构建以用户为中心的全方位营销 体系，提升大客户需求契合度及客户合作效率，进一步增强客户 黏性；业务拓展方面，深化合作挖掘存量市场潜力，巩固现有业 务基础，重点布局增长迅速的新兴市场，积极开拓增量空间，实 现市场份额的持续增长；深耕品牌根据地市场，从渠道纵深拓展、 产品矩阵完善、市场推广能力提升以及人才梯队建设等多维度发 力，全面提升品牌竞争力，加速海外自主品牌业务的规模化发展， ...

Core Viewpoint - The integration of universities and cities is essential for achieving high-quality development, as highlighted by the recent policy decisions from the 20th National Congress of the Communist Party of China, emphasizing the need for collaborative reforms in education and urban development [1][2]. Group 1: Importance of University-City Integration - The integration of universities and cities reflects the inherent demand for high-quality development in the new era, indicating a future direction for deep collaboration between higher education institutions and urban environments [1]. - Universities and cities, while having distinct social functions and interests, also exhibit a strong interdependence that necessitates a collaborative development approach [2]. Group 2: Key Elements of Integration - Universities provide cities with intellectual support, talent, and innovation, while cities offer essential resources such as land, funding, and infrastructure to universities [3]. - The dynamic needs of universities and cities at different development stages require a focus on key elements like education, technology, culture, talent, and funding to enhance collaborative potential [3]. Group 3: Innovative Paths for Integration - The integration of universities and cities can be advanced through various collaborative models, including: - **University-Enterprise Integration**: Establishing dual-standard training systems and collaborative talent management to produce highly adaptable graduates [4]. - **Industry-Education Integration**: Aligning academic programs with industry needs to create a virtuous cycle of talent development and utilization [5]. - **Cultural Integration**: Developing a shared cultural framework that enhances both university spirit and urban development [6]. - **Spatial Integration**: Transforming campuses into urban nodes and fostering a modern urban structure that connects educational and community spaces [6]. Group 4: Case Study of Jiangsu University of Technology - Jiangsu University of Technology exemplifies successful university-city integration by aligning its development with the needs of Changzhou city, focusing on collaborative educational and research initiatives [7]. - The university's approach includes establishing specialized institutes and research centers that cater to local industry demands, thereby enhancing the synergy between education and urban development [7].

Core Viewpoint - Taiyuan Heavy Machinery Group (Tai Heavy Group) is committed to enhancing quality and innovation in the manufacturing sector, aligning with national strategies for quality improvement and brand development, thereby establishing itself as a leader in high-end equipment manufacturing [1][4]. Group 1: Quality Improvement Strategies - Tai Heavy Group has implemented a three-pronged quality enhancement strategy focusing on "innovation-driven, standard-led, and brand-empowered" initiatives, which has helped the company to establish a strong presence in the global high-end equipment market [2][3]. - The company has developed a global innovation and research system characterized by "one focus, one center, and multiple bases," integrating market design and research to enhance product quality [2]. Group 2: Talent and Technology Development - The company has recruited 171 high-end talents, including academicians, and has a research team of 1,300 people, leading to the development of 543 new products and the acquisition of 785 national patents [2]. - Tai Heavy Group has achieved significant technological breakthroughs, including the world's largest 1,300-ton bridge crane and the first domestic high-speed train axle manufacturing technology [2]. Group 3: Standardization and Quality Management - As a pioneer in standardization within the equipment manufacturing industry, Tai Heavy Group has revised over 60 international and national standards, integrating quality management throughout the production process [3]. - The company has adopted advanced quality tools and implemented a digital quality control system that ensures traceability from raw materials to finished products [3]. Group 4: Brand Development and Market Expansion - Tai Heavy Group has been recognized as a "lighthouse factory" and has received various awards, showcasing its commitment to quality and brand excellence [4]. - The company emphasizes a quality-first approach in its global market expansion, establishing international marketing networks and providing comprehensive lifecycle quality services for its products [4]. Group 5: Future Commitment - The chairman of Tai Heavy Group has expressed a commitment to leveraging innovation to create new quality advantages and expand market opportunities, contributing to the modernization of China's manufacturing sector [5].

Core Viewpoint - The article emphasizes the importance of technological innovation as a driving force for China's development and the goal of becoming a technological powerhouse by 2035, highlighting the need for self-reliance and strategic planning in achieving this objective [2][3][32]. Group 1: Innovation as a Driving Force - Innovation is identified as the primary driving force for development and a strategic support for building a modern economic system [2][3]. - The Chinese government has prioritized innovation-driven development as a core strategy since the 18th National Congress of the Communist Party [2][3]. - The goal is to achieve high-level technological self-reliance and to be at the forefront of innovative countries by 2035 [2][3]. Group 2: Achievements and Future Goals - Significant achievements in technological innovation have been made, with a focus on overcoming key core technology challenges through self-reliance [5][13]. - By 2024, China's R&D expenditure is expected to exceed 3.6 trillion yuan, maintaining its position as the second-largest in the world [33]. - The country aims to enhance its original innovation capabilities and address weaknesses in key technologies and talent shortages [36]. Group 3: Reform and Systematic Changes - The article discusses the need for continuous reform in the technology sector to enhance innovation and address fragmentation in resources [14][15]. - A new system for technology management has been established, including the formation of a Central Science and Technology Committee [18][19]. - The reforms aim to integrate technology innovation with industrial innovation, promoting the transformation of scientific achievements into practical applications [20][21]. Group 4: International Cooperation - China emphasizes the importance of international cooperation in technology, establishing partnerships with over 160 countries and regions [26][27]. - The country is committed to open collaboration, believing that innovation should not be isolated but rather integrated with global efforts [27][28]. - China's technological advancements are increasingly recognized globally, with significant contributions to various fields, including space exploration and agricultural technology [28][29]. Group 5: Call to Action - The article concludes with a strong call to action for continued efforts towards achieving the goal of becoming a technological powerhouse, emphasizing the urgency and importance of this mission [32][40]. - It highlights the collective responsibility of the current generation to advance China's technological capabilities and maintain momentum in innovation [37][39].