Group 1: General Information - The research object is Guannong Co., Ltd., belonging to the agricultural, livestock, and fishery feed industry, and the reception time was on November 5, 2025. The listed company's reception staff included General Manager Sun Baoxin, Financial Controller and Board Secretary Jin Jianxia, and Independent Director and Director of the Company's Board Audit Committee Yao Wenying [16] - The detailed research institutions were all investors who participated online in the company's Q3 2025 earnings conference [19] Group 2: Main Content Cotton Price View - In the domestic market, the low inventory at the beginning of the 2025 new cotton production season provided some price support for the low cotton price. However, as new cotton was gradually launched, the market supply was significantly supplemented. Coupled with the market's expectation of a decline in cotton production in the new season, it supported the gradual upward oscillation of cotton futures prices after the National Day. The willingness to hedge cotton increased, but it restricted the upward space of cotton prices. Additionally, the off - peak downstream demand and insufficient demand - side support limited the short - term continuous upward space of cotton prices [23] Impact of Luoruo Railway - Guannong Co., Ltd.'s subsidiary Guotou Luojia's products are mainly sold in the inland areas, and the logistics mode is mainly railway transportation. The Luoruo Railway has a limited impact on its logistics costs. Since the company's cotton and tomato businesses are concentrated around Korla, they have a low correlation with the Luoruo Railway and are less affected [23] Investment Income Calculation - In Q3 2025, the company calculated the investment income corresponding to the current net profit of Guotou Luojia according to its shareholding ratio and included it in the current performance. All the company's periodic reports are accounted for according to this principle [23] Industry Position and Countermeasures - The company's tomato, cotton, and sugar - making industries are based in high - quality production areas in Xinjiang. Relying on large - scale, standardized operations and stable supply chains, they rank among the top in the industry. The company has qualifications such as "Top 100 National Agricultural Product Processing Enterprises" and "Top 50 Enterprises in the Light Industry Food Industry" and was selected as a "Pacesetter" in the digital transformation of China's light industry in 2024. In recent years, the three major industries have been affected by common challenges such as geopolitics and cyclical fluctuations. The same industry generally responds through measures such as extending the industrial chain, refined management, optimizing the supply chain and production capacity, and expanding domestic and foreign markets [25] Reasons for Revenue Decline - The company's revenue decline was mainly due to the overall downward trend of the tomato industry, which led to a decrease in sales volume and price. The company adjusted the rhythm of production capacity release as needed, not due to idle production capacity. Currently, it is actively responding through measures such as optimizing the product structure, controlling production and sales costs, and increasing sales efforts [25] Performance Boosting Measures - The company will boost performance from four aspects: deepening reforms, focusing on core industries, optimizing production capacity and supply chains to reduce costs; strengthening innovation and R & D, cultivating new productive forces, and extending the industrial chain to increase added value; expanding market development and exploring dual - circulation markets; benchmarking against excellent enterprises and dynamically adjusting strategies to resist cyclical risks [26]

Market Overview - The Hong Kong stock market saw declines in its three major indices, with the Hang Seng Index down 0.15% to close at 25,524.45 points, the Hang Seng Tech Index down 0.35%, and the Hang Seng China Enterprises Index down 0.34% [2][3] - The pharmaceutical sector showed resilience, with Chinese brokerage stocks rebounding and semiconductor stocks attracting investment [2] Pharmaceutical Sector - The pharmaceutical sector was boosted by strong earnings, particularly in innovative drug stocks, with WuXi AppTec (603259) rising over 11% [4] - WuXi AppTec reported a revenue of 20.8 billion yuan for the first half of 2025, a year-on-year increase of 20.64%, and a net profit surge of 101.92% [4] - Other notable gainers included Kelun-Bio, InnoCare Pharma, BeiGene, and Kintor Pharma, all of which experienced significant stock price increases [4] Brokerage Sector - Chinese brokerage stocks saw a recovery in the afternoon, with notable increases in shares of CICC, China Merchants Securities, and China Galaxy, all rising over 1% [6] - The regulatory environment for the securities industry has tightened, with over 30 fines issued to brokerage firms for various violations, indicating a push for compliance and improved market order [6] Semiconductor Sector - Semiconductor stocks gained attention from investors, with Shanghai Fudan rising nearly 10% and other companies like SMIC and Hua Hong Semiconductor also seeing stock price increases [7] Banking Sector - The banking sector experienced widespread declines, with Chongqing Rural Commercial Bank falling over 3% and other major banks like China Merchants Bank and China Construction Bank also reporting losses [8] - Despite the current downturn, analysts suggest that the banking sector may benefit from a low-interest-rate environment and increasing long-term capital inflows, indicating potential for future recovery [8][9] Technology Sector - Major tech stocks, including NetEase and Bilibili, saw declines of over 1% [10] - Tencent Holdings and other tech companies also reported slight decreases in their stock prices [11] Gold Sector - Gold stocks continued to retreat, with China Silver Group dropping over 6% [11] - Fidelity International predicts that gold prices could rise to $4,000 per ounce by the end of next year due to factors such as U.S. interest rate cuts and increased central bank gold reserves [12] Market Regulation Changes - The Hong Kong stock exchange announced a reduction in the minimum price fluctuation for stocks, effective August 1, which aims to lower trading costs and enhance market efficiency [12][13]