Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, indicating challenges in the poultry and pig breeding sectors due to market conditions and external factors [1][2][3]. Revenue and Profit Summary - In Q1 2025, the company achieved revenue of 620 million yuan, a year-on-year decrease of 9.4% and a quarter-on-quarter decrease of 36.6% [1]. - The net profit attributable to shareholders was -10 million yuan, reflecting a year-on-year decline of 112.0% and a quarter-on-quarter decline of 106.5% [1]. Poultry Business Performance - The company sold a total of 150 million white feather broiler chicks in Q1 2025, a slight decrease of 0.4% quarter-on-quarter but an increase of 18.2% year-on-year [2]. - Revenue from chick sales was 410 million yuan, with a quarter-on-quarter increase of 45.0% but a year-on-year decrease of 25.8% [2]. - The average selling price of chicks was 2.6 yuan per chick, down 44.1% quarter-on-quarter and 37.1% year-on-year [2]. - The price pressure on parent and commercial chicks is expected to ease by Q4 2025, potentially benefiting the company [2]. Pig Breeding Business Performance - The company sold 14,099 breeding pigs in Q1 2025, a significant year-on-year increase of 344.1% [3]. - Revenue from pig sales reached 30.26 million yuan, reflecting a year-on-year increase of 216.9% [3]. - The gradual release of breeding pig capacity is contributing to the substantial growth in sales and revenue [3]. Strategic Investments - The company plans to invest 500 million yuan to build a breeding farm for 1 million sets of parent white feather broiler chickens and a feed factory in Shanxi Province [3]. - This investment aims to expand the breeding scale and improve the supply capacity of commercial white feather chicks [3]. Future Outlook - The company is expected to benefit from the recovery in the breeding industry, with projected net profits of 552 million yuan, 623 million yuan, and 670 million yuan for 2025 to 2027, respectively [3]. - The earnings per share (EPS) are forecasted to be 0.50, 0.56, and 0.61 yuan, with corresponding price-to-earnings (PE) ratios of 17, 15, and 14 times [3]. - As a leading enterprise in the breeding industry, the company is well-positioned to capitalize on the industry's upward trend due to shortages in breeding stock [3][4].