Core Viewpoint - Tangrenshen (SZ 002567) announced a board meeting on November 18, 2025, to discuss the proposal for issuing medium-term notes and other documents [1] Company Summary - For the first half of 2025, Tangrenshen's revenue composition is as follows: Feed industry accounts for 60.25%, Pig breeding industry accounts for 34.1%, Meat industry accounts for 5.58%, and Animal health industry accounts for 0.06% [1] - As of the report date, Tangrenshen's market capitalization is 6.9 billion yuan [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The overall market of the feed, breeding, and oil industries shows a complex situation with different trends for various products. Some products are in a state of supply - demand balance adjustment, while others are affected by factors such as international market conditions, policies, and seasonal changes [3][4][5]. - For individual products, some are recommended for temporary observation, some for specific trading strategies like selling put options or low - buying on dips, and some for arbitrage operations [3][4][10]. 3. Summary According to the Directory 3.1 First Part: Sector Strategy Recommendations 3.1.1 Market Judgment - **Oilseeds**: - The price of domestic new soybeans has cooled the purchasing sentiment of the middle and lower reaches, but farmers' reluctance to sell remains. The price of soybean No.1 is expected to run strongly, and it is recommended to wait and see [10]. - After the bullish factors in the November supply - demand report were realized, the price of soybean No.2 followed the decline of US soybeans and is expected to be in a volatile adjustment, also recommended for waiting and seeing [10]. - **Oils**: - Soybean oil has sufficient supply and increasing consumption, with fewer soybean purchases in the fourth quarter. It is expected to build a bottom in a volatile manner, and it is recommended to sell out - of - the - money put options [10]. - Rapeseed oil has a continuous marginal inventory reduction trend, and the market sentiment is boosted. It is expected to be volatile and strong, and it is recommended to buy on dips [10]. - Palm oil has stabilized after a previous sharp decline, but the upward driving force is insufficient. It is expected to be in a bottom - building and volatile state, and it is recommended to try long positions with a light position or sell out - of - the - money put options [10]. - **Protein**: - The cost - side support of soybean meal is obvious, and it is expected to run strongly. It is recommended to wait and see [10]. - Rapeseed meal has short - term supply shortages, but the expectation of supply is alleviated, and it is in a seasonal off - season for demand. It is expected to be in a wide - range volatile state, and it is recommended to wait and see [10]. - **Energy and By - products**: - Corn has a slight rebound expectation, but the pressure of concentrated supply limits the rebound height. It is recommended to wait and see [10]. - Corn starch follows the slight rebound of corn prices and is also recommended for waiting and seeing [10]. - **Breeding**: - The price of live pigs is expected to find a bottom in a volatile manner, and it is recommended to switch to waiting and seeing [10]. - The price of eggs is expected to find a bottom in a volatile manner, and it is recommended to buy on dips [10]. 3.1.2 Commodity Arbitrage - For most cross - period and cross - variety arbitrage operations, it is recommended to wait and see, except for some operations such as going long on the corn 5 - 1 spread at low prices and positive arbitrage on the live pig 1 - 3 spread at low prices [11][12]. 3.1.3 Basis and Spot - Futures Strategies - The report provides the spot prices, price changes, and basis changes of various products in different sectors, which can be used as a reference for spot - futures operations [13]. 3.2 Second Part: Key Data Tracking Table 3.2.1 Oils and Oilseeds - **Daily Data**: It shows the import cost data of soybeans, rapeseeds, and palm oil from different origins and different shipping months, including CNF prices, arrival - at - port duty - paid prices, etc. [15][16]. - **Weekly Data**: It presents the inventory and operating rates of beans, rapeseeds, palm oil, and peanuts, showing the supply - side situation of the oils and oilseeds market [17]. 3.2.2 Feed - **Daily Data**: It provides the import cost data of corn from different countries and different months [17]. - **Weekly Data**: It shows the consumption, inventory, operating rate, and inventory of corn and corn starch in deep - processing enterprises, reflecting the supply - demand relationship in the feed market [18]. 3.2.3 Breeding - **Daily Data**: It shows the daily price data of live pigs and eggs, including prices in different regions and price changes compared with the previous day, week, month, and year [19][20][21]. - **Weekly Data**: It presents the weekly price, cost, profit, slaughter data, and inventory data of live pigs and eggs, reflecting the overall situation of the breeding market [20][21]. 3.3 Third Part: Fundamental Tracking Charts - **Breeding End (Live Pigs, Eggs)**: It includes the closing prices of live pig and egg futures contracts, spot prices, and related price data charts, which can be used to analyze the price trends and market conditions of the breeding end [23][25][26]. - **Oils and Oilseeds**: - **Palm Oil**: It shows charts related to Malaysian palm oil production, exports, inventory, import profits, and domestic palm oil inventory and trading volume, etc., to help analyze the supply - demand relationship and price trends of palm oil [33][34][37]. - **Soybean Oil**: It includes charts of US soybean crushing volume, soybean oil inventory, domestic soybean oil factory operating rate, inventory, and trading volume, etc., to analyze the soybean oil market [40][42][43]. - **Peanuts**: It presents charts of peanut arrival and shipment volume, pressing profit, operating rate, and inventory, etc., to understand the peanut market [45][47]. - **Feed End**: - **Corn**: It shows charts of corn futures prices, spot prices, basis, inventory, import volume, and processing profit, etc., to analyze the corn market [49][54][55]. - **Corn Starch**: It includes charts of corn starch futures prices, spot prices, basis, operating rate, inventory, and processing profit, etc., to analyze the corn starch market [57][59][66]. - **Rapeseed Products**: It presents charts of rapeseed meal and rapeseed oil spot prices, basis, inventory, pressing volume, and pressing profit, etc., to analyze the rapeseed products market [59][63][64]. - **Soybean Meal**: It shows charts of US soybean growth indicators, inventory, basis, and price spreads, etc., to analyze the soybean meal market [66][71][78]. 3.4 Fourth Part: Options Situation of Feed, Breeding, and Oils - It provides charts of historical volatility of rapeseed meal, rapeseed oil, soybean oil, palm oil, and peanuts, as well as the trading volume, open interest, and put - call ratio of corn options, to help analyze the option market [81][82]. 3.5 Fifth Part: Warehouse Receipt Situation of Feed, Breeding, and Oils - It shows the warehouse receipt quantity and open interest charts of rapeseed meal, rapeseed oil, soybean oil, palm oil, peanuts, corn, corn starch, live pigs, and eggs, which can be used to analyze the market supply and demand and price trends from the perspective of warehouse receipts [84][85][86].

Core Viewpoint - Tangrenshen's stock performance shows low financing activity and a decrease in net profit, indicating potential challenges in the company's financial health and investor sentiment [1][2]. Financing Summary - On November 17, Tangrenshen's financing buy amounted to 9.56 million yuan, while financing repayment was 9.74 million yuan, resulting in a net financing outflow of 186,400 yuan [1]. - The total financing and securities balance for Tangrenshen reached 388 million yuan, with the financing balance accounting for 5.55% of the circulating market value, which is below the 10% percentile level over the past year [1]. - In terms of securities lending, 200 shares were repaid, and 6,400 shares were sold, with a selling amount of 31,200 yuan calculated at the closing price [1]. Business Performance Summary - As of September 30, the number of shareholders for Tangrenshen was 73,700, a decrease of 6.04% from the previous period, while the average circulating shares per person increased by 6.43% to 19,426 shares [2]. - For the period from January to September 2025, Tangrenshen reported operating revenue of 18.586 billion yuan, reflecting a year-on-year growth of 8.87%. However, the net profit attributable to the parent company was -365 million yuan, a significant decrease of 243.80% year-on-year [2]. - Since its A-share listing, Tangrenshen has distributed a total of 972 million yuan in dividends, with 50.9 million yuan distributed over the past three years [2]. Shareholder Structure Summary - As of September 30, 2025, the top ten circulating shareholders included notable entities such as Guotai CSI Livestock Breeding ETF, which increased its holdings by 11.43 million shares to 31.83 million shares [2]. - Other significant shareholders included Southern CSI 1000 ETF, which reduced its holdings by 170,800 shares, and Hong Kong Central Clearing Limited, which increased its holdings by 126,100 shares [2]. - New shareholder entry included CITIC Jiantou Value Growth Mixed A, holding 8.2 million shares [2].

Summary of the Agricultural Sector Conference Call Industry Overview - The conference call focuses on the **Agricultural Sector**, specifically the **Pig Farming** and **Poultry Farming** industries, along with **Feed and Animal Health** sub-sectors [1][2][3]. Key Points and Arguments Pig Farming Sector - In Q3 2025, the profitability of the pig farming sector declined significantly, with a **71% year-on-year** and **38% quarter-on-quarter** drop in profits, totaling **CNY 5.54 billion** for 18 listed pig farming companies [2][3][9]. - The average price of live pigs was **CNY 13.8/kg**, while the average cost for most listed companies was between **CNY 13-14/kg**, indicating a challenging margin environment [9][12]. - Major players like **Muyuan** and **Wens** reported combined profits of approximately **CNY 6 billion**, while the remaining 16 companies were in a loss position [9]. - The industry is expected to accelerate the reduction of sow capacity, which may elevate the price center for pigs in 2026 [2][12][13]. - The cash flow situation remains positive, with **CNY 18.1 billion** in operating cash flow for Q3, marking the tenth consecutive quarter of net inflow [10]. Poultry Farming Sector - The poultry farming sector is experiencing a tightening supply of parent stock, particularly for **white feathered chickens**, which is expected to support price increases in 2026 [5][14]. - The **yellow feathered chicken** sector is facing historical lows in parent stock, compounded by ongoing industry losses, setting the stage for potential price increases [5][14]. - The overall revenue for the poultry sector increased by **11% year-on-year**, but net profit fell by **45%** due to low chicken prices [14]. Feed and Animal Health Sub-Sectors - The feed and animal health sectors are showing signs of recovery, with demand improving as livestock numbers stabilize [6][7][17]. - Leading feed companies are expanding overseas, which is expected to create new growth opportunities [6][18]. - The animal health sector reported a **19% year-on-year** revenue increase, with profits rising **76%** due to a low base from the previous year [19]. Additional Important Insights - The average cost of pig farming is projected to be between **CNY 13-14/kg** for 2025, with expectations for 2026 to rise to **CNY 14-16/kg** [12][13]. - The **Haida Group** plans to IPO its overseas assets, which may dilute short-term earnings but is expected to enhance long-term growth potential [18]. - Investment recommendations focus on low-cost leading companies in pig farming like **Muyuan** and **Wens**, as well as smaller quality firms such as **Shennong** and **Dekang** [8][20]. Investment Recommendations - Emphasis on companies with strong cost control and cash flow improvement in the pig farming sector [8][20]. - In the poultry sector, recommendations include **Shennong** for white feathered chickens and **Lihua** for yellow feathered chickens [8][20]. - For feed and animal health, focus on leading companies like **Haida Group** and **Kefei**, as well as those with product advantages in the animal health sector [8][20].

Core Viewpoint - The acquisition of a 60% stake in Yixing Tianshi Feed Co., Ltd. by Yuehai Feed is a strategic move to enhance vertical integration in the feed additive industry and expand product applications in domestic and international markets [1][2][3] Group 1: Acquisition Details - Yuehai Feed increased its stake in Yixing Tianshi from 51% to 60% for a cash consideration of 1.32 billion yuan, formalizing the agreement with a share transfer contract [1] - This acquisition follows Yuehai Feed's initial merger intentions announced in October 2024, indicating a deepening of strategic plans [1] Group 2: Strategic Objectives - The transaction aims to achieve strategic control over key feed additive supply chains, ensuring quality, supply security, and cost competitiveness of core raw materials [2] - By integrating upstream quality additive suppliers, the company can mitigate raw material price volatility and lower procurement costs [2] Group 3: Market Expansion and Innovation - The collaboration with Yixing Tianshi will leverage its global sales network, which covers over 70 countries, to enhance Yuehai Feed's international market presence and brand influence [3] - The partnership is expected to foster the development of efficient and environmentally friendly new feed additives and premix solutions, driving product differentiation and value creation for customers [2][3]

Core Viewpoint - The company has approved the acquisition of an additional 9% stake in Yixing Tianshi Feed Co., Ltd., increasing its ownership from 51% to 60% [1] Group 1 - The fourth meeting of the company's fourth board of directors took place on November 17, 2025, where the acquisition proposal was reviewed and approved [1]

Core Insights - The feed sector experienced a slight increase of 0.07% on November 17, with Tianma Technology leading the gains [1] - The Shanghai Composite Index closed at 3972.03, down 0.46%, while the Shenzhen Component Index closed at 13202.0, down 0.11% [1] Feed Sector Performance - Tianma Technology (603668) closed at 15.33, up 6.16% with a trading volume of 898,500 shares and a transaction value of 1.402 billion [1] - Other notable performers included: - Zhongchong Co., Ltd. (002891) at 59.69, up 3.86% [1] - Zhenghong Technology (000702) at 7.65, up 1.06% [1] - Petty Holdings (300673) at 17.70, up 0.91% [1] - Guibao Pet (301498) at 72.62, up 0.54% [1] Capital Flow Analysis - The feed sector saw a net outflow of 118 million from institutional investors and 78.86 million from retail investors, while retail investors had a net inflow of 197 million [2] - The capital flow for key stocks included: - Tianma Technology had a net inflow of 1.03 billion from institutional investors, but a net outflow of 130 million from retail investors [3] - Haida Group (002311) had a net inflow of 11.08 million from institutional investors [3] - Other stocks like Petty Holdings and Zhenghong Technology experienced net outflows from institutional investors [3]

Core Viewpoint - In October, the pig farming industry experienced a significant increase in the number of pigs slaughtered, leading to a sharp decline in pork prices due to oversupply and weakened demand [1][2]. Group 1: Industry Performance - In October, 14 listed pig companies collectively slaughtered 17.2 million pigs, representing a month-on-month increase of 23.20% and a year-on-year increase of 25.85% [1][2]. - Major companies such as Muyuan Foods, WH Group, and New Hope reported slaughter increases of 26.97%, 17.07%, and 20.87% respectively [1][2]. - The total number of market pigs slaughtered by these companies was approximately 15.4 million, with a month-on-month increase of 23.96% and a year-on-year increase of 24.58% [2]. Group 2: Price Dynamics - The increase in slaughter volume has led to a significant drop in pork prices, with most listed companies reporting a price decline of over 10% month-on-month and over 30% year-on-year [2]. - The average weight of slaughtered pigs increased to 126.27 kg, up by 1.09 kg month-on-month, indicating a trend towards heavier pigs being brought to market [2]. Group 3: Future Outlook - The current weak prices for both fattened pigs and piglets, alongside policy-driven factors, suggest that the pig farming industry may initiate a capacity reduction phase [4]. - The price of fattened pigs has fallen below 12 yuan per kg, while weaned piglet prices are around 200 yuan per head, indicating a phase of overall industry losses [4]. - Historical trends suggest that when both fattened and piglet prices are low, the industry is likely to undergo market-driven capacity reduction, which could support long-term price increases [4]. Group 4: Investment Recommendations - The pig farming sector is expected to benefit from recent policies and market dynamics that promote capacity reduction, enhancing long-term performance for companies like Muyuan Foods, WH Group, and others [5]. - The recovery in pig inventory is anticipated to boost demand for feed and veterinary products, benefiting companies in the downstream supply chain [5]. - The agricultural sector is showing positive trends with rising grain prices, presenting investment opportunities in large-scale agricultural companies [5].

牧业大周期：行业大反转预计在即。1）牛肉与牛奶双品种有望反转：国内 肉牛产能去化级别或及 2019 年猪周期，2025 年已迎来价格拐点，后续 有望持续上涨至 2027 年。国内原奶价格已累计下跌近 4 年，持续亏损 带来产能出清压力，同时肉奶比价已至历史高位，后续有望推动奶牛淘 汰加快，实现"肉奶共振"。2）国内与国外两个市场协同涨价：海外牛 肉价格在主产区减产推动下，已进入上行周期，叠加进口调控，未来国 内进口牛肉预计量减价增。原奶进口方面，全球奶粉持续去库，景气重 回上行通道，目前进口大包粉已失去性价比，后续在国内产能收缩和进 口减量共同推动下，国内原奶供需格局预计改善，价格有望迎来修复。 猪禽养殖链：弱化周期，强化龙头。未来投资将从注重周期节奏转向公司管 理内核，从重视资本开支转向现金流创造。1）生猪：官方产能调控将加速 头部企业现金流快速好转，并有望转型为红利标的，在全行业产能收缩 的背景下，龙头的成本优势有望明显提高，强者恒强。2）禽养殖：供给 波动幅度有限，行情有望随需求复苏，龙头企业凭借单位超额收益优势 有望实现更高现金流分红回报。3）饲料：畜禽养殖工业化加深，产业分 工明确，饲料龙头凭借技术 ...

Group 1: Livestock Industry Outlook - The livestock industry is expected to experience a significant reversal, with both beef and milk prices projected to rebound, driven by a reduction in domestic beef production capacity and a historical high in the meat-milk price ratio, which may accelerate the culling of dairy cows [1][15][45] - Domestic beef prices have been on a downward trend, with a cumulative decline of nearly 20% since June 2023, reaching a low of 23.77 CNY/kg by February 2025, while the market price for beef has dropped to 51.38 CNY/kg, down 6.5% year-on-year [15][21] - The supply of beef is expected to tighten as the number of cull cows decreases, leading to a potential price increase for beef from 2025 to 2027, supported by both domestic and international market dynamics [21][45] Group 2: Swine and Poultry Farming - The swine industry is shifting focus from cyclical trends to company management and cash flow generation, with leading firms expected to benefit from improved cash flow due to capacity adjustments [2][9] - In poultry farming, supply fluctuations are anticipated to be limited, with leading companies likely to achieve higher cash flow and dividend returns as demand recovers [2][9] - The feed industry is expected to see increased industrialization and specialization, with leading feed companies leveraging technology and service advantages to enhance their competitive edge [2][9] Group 3: Pet Industry Insights - The pet industry is viewed as a promising new consumption sector, benefiting from demographic trends, with domestic brands rapidly emerging [2][9] - The performance of leading pet food companies is expected to remain strong, with significant growth potential similar to the rise of domestic brands in Japan [2][9] - Key recommendations include domestic brands like Guibao Pet and Zhongchong Co., which are positioned well in the market [2][9] Group 4: Agricultural Commodities Overview - Agricultural commodities are currently in a bottoming phase, with expectations of upward movement in the medium to long term [3][9] - Corn supply is expected to increase marginally in the short term, while the long-term outlook remains strong due to solid bottom support [3][9] - Soybean imports are anticipated to rise, driven by cost recovery, while oilseed supply is expected to increase moderately, supported by policy measures [3][9]