Core Viewpoint - CICC maintains the earnings forecast for Dekang Agriculture (02419) for 2025/26, with a target price of HKD 111, indicating a 33% upside potential from the current price [1] Group 1: Financial Performance - Dekang Agriculture reported 1H25 revenue of CNY 11.7 billion, a year-on-year increase of 24.3%, and net profit of CNY 1.27 billion, up 250.6%, aligning with CICC's expectations [2] - The significant growth in performance is attributed to improved management efficiency and a decrease in pig costs [2] Group 2: Business Segments - The pig farming segment continues to expand, with 1H25 revenue from pigs increasing by 32.6% to CNY 9.88 billion and sales volume rising by 27.1% to 5.1174 million heads [2] - Poultry business remains stable, with 1H25 revenue of CNY 1.34 billion and a 7.2% increase in yellow feather chicken sales to 43 million birds [2] - Revenue from slaughtering and related products grew by 16.1% to CNY 480 million, with slaughter volume increasing by 18.5% to 249,000 heads [2] Group 3: Cost and Efficiency - Dekang Agriculture maintains a leading cost advantage in the industry, with 1H25 pig production costs below CNY 12.5 per kilogram [3] - The company achieved a PSY (pigs per sow per year) of 27, placing it at the forefront of the industry [3] - The debt ratio decreased to 59.9% in 1H25, down 14.3 percentage points from 1H24, indicating ongoing balance sheet improvement [3] Group 4: Growth Strategy - The company employs a light-asset model through its unique pig breeding farm partnership, achieving lower capital expenditures [4] - Dekang Agriculture leverages advanced breeding technology and precise nutrition to maintain its low-cost advantage, with expectations of continued excess profits per head [4] - The company's market value per head is estimated at CNY 2,623, suggesting room for further valuation improvement compared to industry leaders [4]

Core Viewpoint - The project for the construction of high-yield, high-quality, water-saving perennial artificial grassland has officially started, aiming to address the degradation of grasslands in northern China and enhance the ecological and economic value of sheep grass [1][2]. Group 1: Project Overview - The project is initiated in Hohhot, Inner Mongolia, focusing on the restoration of degraded grasslands, which constitute 70% of the total grassland area in China [1]. - The project will scientifically plant perennial sheep grass on 4,779 acres of natural grassland, aiming to explore the synergy between ecological restoration and high-quality livestock development [1][2]. Group 2: Ecological and Economic Benefits - The selection of sheep grass is based on its ecological benefits, such as reducing surface sand transport by 78% and providing high-quality forage with crude protein content of 11%-15% [2]. - The project anticipates a 40% increase in vegetation coverage and a 60% improvement in windbreak and sand fixation efficiency within three years, contributing to the ecological stability of the Hohhot grassland [3]. Group 3: Financial Projections - By the fifth year, the profit per acre from the commodity grassland is expected to reach 175 yuan, while the seed production area could yield profits exceeding 600 yuan per acre, with total annual revenue from the project area projected to exceed 3 million yuan [3]. - The project is expected to increase operational revenue by 15%-20%, addressing the shortage of high-quality sheep grass seed sources in China [3].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The supply of pigs and pork is expected to increase this week, and the market may experience a situation of both supply and demand increasing. The pig price is expected to maintain a short - term oscillating pattern. The LH2511 contract of live pigs is expected to oscillate in the range of 13,800 to 14,200 [8]. - The overall sentiment in the domestic macro - environment is pessimistic, and the high - temperature weather has dampened residents' enthusiasm for fresh pork consumption. However, the additional tariffs imposed on pork imports from the US and Canada have boosted market confidence [8]. 3. Summary According to the Table of Contents 3.1 Daily Tips - Not provided in the given content 3.2 Recent News - China's additional tariffs on pork imports from the US and Canada have boosted market confidence. After the May Day holiday, the domestic pig consumption market entered a slack season, with both supply and demand of pigs decreasing. The spot price of live pigs oscillated weakly in the short term, and the futures market followed a similar pattern [10]. - After the May Day holiday, the demand for pork decreased in the short term. Affected by the decrease in both supply and demand, the spot price of live pigs oscillated weakly, but the decline may be limited due to the reduction in slaughter [10]. - The profit of domestic pig farming remains at a relatively low level, but there is still a short - term profit. The enthusiasm for slaughtering large pigs is relatively high in the short term. The decrease in both supply and demand has suppressed the short - term price expectations of live pig futures and spot markets [10]. - The spot price of live pigs may oscillate weakly after the May Day holiday, and the futures market will generally maintain a weakly oscillating pattern in the short term. When the market stabilizes depends on the future reduction in supply and increase in demand [10]. 3.3 Bullish and Bearish Factors - **Bullish factors**: The year - on - year decline in domestic pig inventory and the limited potential for further decline in domestic live pig spot prices [11]. - **Bearish factors**: The pessimistic expectations in the domestic macro - environment due to the China - US tariff war and the entry of the pig and pork consumption market into a slack season after May Day [11]. - **Main logic**: The market focuses on the slaughter situation of live pigs and the demand for fresh meat [11]. 3.4 Fundamental Data - **Supply and demand**: In August, as the peak season for supply and demand before the Mid - Autumn Festival and National Day approaches, the enthusiasm for domestic slaughter has increased. The short - term bottom - out and rebound of the pig price is followed by an oscillating pattern. It is expected that the supply of pigs and pork will increase this week. On the demand side, the pessimistic domestic macro - environment and high - temperature weather have dampened residents' consumption enthusiasm, suppressing short - term fresh pork consumption [8]. - **Basis**: The national average spot price is 13,700 yuan/ton, and the basis of the 2511 contract is - 245 yuan/ton, indicating that the spot price is at a discount to the futures price [8]. - **Inventory**: As of June 30, the pig inventory was 424.47 million heads, a month - on - month increase of 0.4% and a year - on - year increase of 2.2%. As of the end of June, the inventory of breeding sows was 40.42 million heads, a month - on - month increase of 0.02% and a year - on - year increase of 4.2% [8]. - **Market trend**: The price is below the 20 - day moving average and moving downward [8]. - **Main positions**: The net position of the main players is short, and the short positions are decreasing [8]. 3.5 Position Data - The net position of the main players is short, and the short positions are decreasing [8]

近年来，兴安盟依托创建国家级现代畜牧业试验区，积极探索智能化监管新路径、新方法，率先在 科右前旗、扎赉特旗开展智能化监管试验，经过阶段性测试，两地草原草畜平衡指数下降10%。试验成 效显著，不仅验证了智能监管技术的可行性与实用性，更为该终端在全国范围内的全面推广应用奠定了 坚实基础。 "此项技术的应用推广，将有力推动我盟畜牧业高质量发展。"兴安盟农牧科学院党总支书记王玉泉 表示，下一步兴安盟将着力拓展智能监管技术的应用场景与覆盖范围，持续深化与各科研院所、企业的 战略合作，努力打造草原生态保护与畜牧业高质量发展的"兴安样板"，引领草原管理向智能化、精细化 方向迈进。 据悉，该监管终端由兴安盟联合国家农业信息化工程技术研究中心、北京市农林科学院、内蒙古农 牧业科学院等科研机构共同研发。终端深度集成物联网、大数据与人工智能技术，实现草原植被实时监 测与载畜量动态评估，助力草原放牧智能化管理与草畜资源科学利用。 8月15日，在兴安盟举行的草畜平衡智能监管终端现场观摩会上，新研发的国内首套草畜平衡智能 监管终端正式上线发布，标志着智慧监管技术在草原生态保护领域取得新突破。 ...

Summary of Dekang Agriculture and Animal Husbandry Conference Call Company Overview - **Company**: Dekang Agriculture and Animal Husbandry - **Industry**: Agriculture and Animal Husbandry Key Financial Performance - **Revenue**: 11.695 billion CNY in H1 2025, up 24.3% YoY [2][3] - **Sales Volume**: 42.7033 million yellow feather chickens, up 7.2% YoY [2] - **Average Price**: Yellow feather chicken price down 19.1% to 30.5 CNY per chicken [2] - **Net Profit**: Adjusted net profit of 1.36 billion CNY, with net profit attributable to shareholders at 1.292 billion CNY [2][3] - **Cost Control**: Effective cost management offset the impact of falling pig prices [2] Operational Achievements - **Breeding Technology**: Significant advancements in breeding technology, precision nutrition, and disease prevention [4][5] - **Profitability from Breeding**: Self-developed breeding systems yield over 100 CNY per pig and 2,000 CNY per sow annually [2][4] - **Feed Cost Management**: Soybean meal usage reduced to below 3% [2][5] - **Production Efficiency**: Total cost decreased by 1.7 CNY/kg to 12.4 CNY/kg, with feed costs down by 0.9-1 CNY/kg [2][14] Business Segments Performance - **Household Appliances**: Revenue down 13.5% to 1.336 billion CNY due to weak dining consumption [2][7] - **Auxiliary Products**: Revenue up 16.1% to 485.1 million CNY, with slaughter volume up over 18% to 240,000 heads [2][8] Innovative Farming Model - **Family Farm Model**: Average income per household from the new family farm model reached 800,000 CNY, up 15.5% YoY [2][6] - **Training Initiatives**: Investment of 50 million CNY in a pig farming technology training center to empower farmers [2][6] Future Outlook and Challenges - **Market Uncertainty**: Acknowledgment of challenges including disease risks, price fluctuations, and policy guidance [9] - **Sustainable Development**: Commitment to rural revitalization and support for small farmers [9][10] - **Cost Reduction Potential**: Anticipation of further cost reductions in H2 2025 [2][14] Talent Development and Corporate Culture - **Employee Growth**: Addition of 500 employees focused on pig production, poultry farming, and slaughtering [35] - **Training Programs**: Extensive training initiatives for over 350,000 participants to enhance employee skills [8][35] ESG Initiatives - **Environmental Investments**: Ongoing investments in ESG initiatives, including ecological farming practices [11][12] Conclusion - **Long-term Growth Potential**: Strong confidence in Dekang's future growth driven by innovative farming models, effective cost management, and a focus on employee welfare [47]

华泰证券指出，肉牛周期正步入上行阶段，供给端去化主导本轮行情。我们测算25-27年国内牛肉总供 给同比-3.3%/-6.4%/+1.3%，供需缺口最高达26年的147万吨/年，牛价高点或于28年底显现。本轮牛价上 涨幅度或超上一轮（18年7月至22年10月牛肉价格上涨38%），主因全球牛肉周期向上的背景下进口冲 击减弱，且国内产能传导时滞（能繁母牛补栏至商品牛出栏需24-28个月）放大供需错配。标的推荐 上，肉与奶或将实现周期共振，上游龙头乳企的利润与估值弹性有望显现。 ...

Group 1 - The core viewpoint emphasizes the effectiveness of the integrated crop-livestock model in promoting rural revitalization and achieving a sustainable agricultural system [1][2] - The implementation of integrated crop-livestock systems leads to significant economic benefits, with average production costs for pig and beef farming being lower by 1.22 yuan and 2.71 yuan per kilogram, respectively, compared to non-integrated systems [1] - The integrated model helps maintain profitability during market fluctuations, as seen in 2024 when integrated livestock farmers managed to sustain operations despite a drop in beef prices [1] Group 2 - The social effects of integrated farming are highlighted, as approximately 40% of farmers' income previously came from livestock, but the rise of large-scale farming has marginalized smallholders [2] - The trend of returning migrant workers to engage in moderate-scale farming is noted, contributing to stable family incomes and local employment opportunities [2] - The article stresses the need for strategic thinking on how to further promote integrated farming to achieve economic, environmental, and social benefits in the context of agricultural modernization and rural revitalization [2] Group 3 - Recommendations include national legislation to establish nutrient management standards and ensure that livestock farming aligns with local land capacity [3] - It suggests determining appropriate scale standards for different livestock types based on local conditions and farmer resources, with specific benchmarks provided for pig and cattle farming [3] - Support policies should focus on moderate-scale integrated farming standards and nutrient management thresholds, shifting from simple size-based criteria to more nuanced standards [3]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights that a new round of price increases for pigs may gradually begin, with the African swine fever vaccine opening growth opportunities for the animal health sector [4][5] - The report emphasizes that the investment logic for live pigs is marginally improving, supported by both fundamental and policy factors, with recommendations for specific companies [5][31] Summary by Sections Weekly Observation - As of August 15, 2025, the national average price of live pigs is 13.73 CNY/kg, with a week-on-week increase of 0.06 CNY/kg but a year-on-year decrease of 7.44% [4][13] - The price premium for 150kg fat pigs over 120kg standard pigs is 0.28 CNY/kg, indicating a tightening supply [4][13] Weekly Market Performance (August 11-15) - The agricultural sector underperformed the market by 1.84 percentage points, with the agricultural index down 0.14% while the Shanghai Composite Index rose by 1.70% [6][35] - Key stocks that led the gains include COFCO Sugar (+41.04%), Shunli Biological (+13.97%), and Xiaoming Co. (+8.86%) [6][35] Price Tracking (August 11-15) - The average price of live pigs on August 15 is 13.76 CNY/kg, a slight increase from the previous week [6][46] - The average price of piglets is 28.87 CNY/kg, showing a decrease of 5.03% from the previous week [6][46] - The average price of white feathered chickens is 7.20 CNY/kg, with a week-on-week increase of 0.84% [6][51] Key News (August 11-15) - The central government allocated 1.146 billion CNY for agricultural disaster relief, supporting major grain-producing provinces [6][41]

Core Points - The document outlines the work rules for the Compensation and Assessment Committee of Ningxia Xiaoming Agricultural and Animal Husbandry Co., Ltd, aiming to establish a sound assessment and compensation management system for directors and senior management [1][2] - The committee is responsible for formulating assessment standards and compensation policies for directors and senior management, and it reports to the board of directors [1][3] Chapter Summaries Chapter 1: General Principles - The committee is established to enhance corporate governance and is governed by relevant laws and regulations [1] - It is tasked with assessing directors and senior management and reviewing their compensation policies [1][2] Chapter 2: Composition - The committee consists of three directors, including two independent directors [2] - The chairperson is an independent director elected by committee members [2] Chapter 3: Responsibilities and Authority - The committee is responsible for setting assessment standards, reviewing compensation policies, and making recommendations to the board on various matters, including compensation and incentive plans [3] - The board has the authority to reject any compensation plans that may harm shareholder interests [3] Chapter 4: Decision-Making Procedures - The Human Resources Department prepares necessary materials for the committee's decision-making [4] - The assessment process includes self-evaluation by directors and senior management, followed by performance evaluations conducted by the committee [4] Chapter 5: Meeting Rules - Meetings require at least two-thirds of committee members to be present, and decisions must be approved by a majority [5] - The committee can invite directors and senior management to attend meetings if necessary [5] Chapter 6: Supplementary Provisions - The rules will be revised in accordance with applicable laws and regulations if any conflicts arise [6][7] - The document becomes effective upon approval by the board of directors, and previous rules are rendered invalid [7]

Core Viewpoint - The document outlines the fundraising management system of Ningxia Xiaoming Agricultural and Animal Husbandry Co., Ltd, aiming to regulate the use and management of raised funds, enhance their effectiveness, and protect investors' rights [1][2]. Group 1: General Principles - The system is established based on relevant laws and regulations, including the Company Law and Securities Law, to ensure proper use of raised funds [1][2]. - The term "raised funds" refers to funds obtained through the issuance of stocks or other equity-like securities for specific purposes, excluding funds raised for equity incentive plans [2]. Group 2: Fund Storage - The company must prudently select commercial banks and open special accounts for raised funds, ensuring that these funds are managed centrally and not mixed with other funds [3][4]. - A tripartite supervision agreement must be signed with the sponsor or independent financial advisor and the commercial bank within one month of the funds being in place [5][6]. Group 3: Fund Usage - Funds must be used according to the investment plans disclosed in the prospectus, and any changes in usage must be justified and disclosed [6][7]. - The board of directors is required to conduct a comprehensive review of the progress of investment projects every six months [8][9]. Group 4: Management of Surplus Funds - Surplus funds, defined as the amount exceeding the planned fundraising amount, must also be managed in a special account [10][11]. - Surplus funds can be used for ongoing and new projects, subject to the approval of independent directors and financial advisors [12][13]. Group 5: Changes in Investment Projects - Changes in the use of raised funds must be approved by the board and disclosed to shareholders, especially if they involve significant alterations to the original investment plans [14][15]. - The company must ensure that any changes do not compromise the original investment project's viability [16][17]. Group 6: Monitoring and Reporting - The finance department must maintain detailed records of fund usage, and internal audits should occur quarterly [18][19]. - Independent financial advisors have the right to supervise the use of raised funds and must report any significant discrepancies to the stock exchange [20][21].