Investment Rating - The report maintains a "Buy" rating for the agriculture, forestry, animal husbandry, and fishery sector [5] Core Views - The second quarter saw a slight recovery in production capacity, with an increase in average weight and stock levels [2][4] - The overall pig price trend is weak, influenced by increased supply and high temperatures affecting demand [1][38] - The report highlights potential investment opportunities in pig farming, feed, animal health, and planting sectors due to favorable market conditions [4] Summary by Sections 1. Pig Farming Sector - As of June, the number of breeding sows was 40.43 million, showing a quarter-on-quarter increase of 0.1% and a year-on-year increase of 0.1% [2][14] - In Q2 2025, the total pig slaughter volume was 171.43 million heads, a year-on-year increase of 1.2% but a quarter-on-quarter decrease of 12% [2][15] - The average price of live pigs in June dropped to 14.57 yuan/kg, a decrease of 2.3% month-on-month and 20.6% year-on-year [21][38] 2. Market Performance - The agriculture, forestry, animal husbandry, and fishery sector outperformed the market, with a weekly increase of 3.62% compared to the Shanghai Composite Index's 1.67% [28] - Key stocks in the sector showed significant gains, with Shennong Group rising by 15.42% and Juxing Agriculture increasing by 6.79% [32][33] 3. Price Trends - The average price of live pigs was 14.15 yuan/kg as of July 25, reflecting a week-on-week decline of 0.84% [1][38] - The price of white feather broiler chickens increased to 6.7 yuan/kg, up 4.69% week-on-week, while chick prices surged by 40.88% to 1.93 yuan/chick [49][37] 4. Investment Recommendations - The report recommends focusing on pig farming stocks such as Muyuan Foods, Wens Foodstuff Group, and Juxing Agriculture due to expected price recovery [4] - It also suggests monitoring feed and animal health companies like Haida Group and Ruipu Biological Products, as well as planting companies like Suqian Agricultural Development and Beidahuang Group [4]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The agricultural sector's public fund heavy holdings increased in Q2 2025, benefiting from US-China tariff disturbances and policy catalysts, with total market capitalization rising to 13,208 billion yuan, up 6.80% quarter-on-quarter [13][12] - The investment logic for the pig industry is improving marginally, with expectations for a price increase in H2 2025 driven by both fundamental and policy factors [23][5] - The pet sector is experiencing a rise in domestic brands, supported by consumption upgrades and tariff barriers, with the pet food market expected to exceed 60 billion yuan by 2025 [26][25] Summary by Sections Weekly Observation - The agricultural sector's public fund heavy holdings increased, with a total market capitalization of 13,208 billion yuan, representing 1.74% of the A-share market [13][12] - The pig price is expected to stabilize and rise due to ongoing capacity adjustments and supply pressures [4][16] Weekly Market Performance (July 21-25) - The agricultural index outperformed the market by 1.95 percentage points, with the agricultural index rising 3.62% [27][29] - Leading stocks included Shen Nong Group (+15.42%), Zhong Ji Health (+11.63%), and Bang Ji Technology (+11.41%) [32][27] Price Tracking (July 21-25) - The average price of live pigs was 14.15 yuan/kg, down 0.12% from the previous week, while the average price of piglets was 31.89 yuan/kg, also down 0.07% [35][38] - The price of soybean meal increased to 2,983 yuan/ton, up 1.86% week-on-week, driven by rising import costs [19][49] Key Recommendations - Recommended stocks in the pig sector include Muyuan Foods, Wens Foodstuff, and Juxing Agriculture [5][23] - In the feed sector, recommended stocks include Haida Group and New Hope [5][23] - For the pet sector, recommended stocks include Guibao Pet, Zhongchong Co., and Petty Co. [25][26]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The agricultural sector's public fund heavy holdings increased in Q2 2025, driven by US-China tariff disruptions, fundamental improvements, and policy catalysts [4][12] - The total market capitalization of the agricultural sector reached 1,320.8 billion, with a quarter-on-quarter increase of 6.80%, accounting for 1.74% of the A-share market [12][16] - The investment logic for the pig farming sector is improving, with expectations of a price increase in the second half of 2025 [20] Summary by Sections Public Fund Holdings - In Q2 2025, the public fund heavy holdings in the agricultural sector accounted for 0.47% of the total public stock investment, with a quarter-on-quarter increase of 0.07 percentage points [12][14] - The feed and breeding sub-sectors saw the most significant increase in public fund holdings, while other sub-sectors remained relatively stable [15] Individual Stocks - Leading companies in the feed and breeding sectors, such as Haida Group and Muyuan Foods, saw significant increases in their public fund holdings, with Haida Group's holdings rising by 51% to 12.44 billion [17][19] - The top public fund holdings in the agricultural sector for Q2 2025 were Haida Group, Muyuan Foods, and Wens Foodstuffs, with respective holdings of 12.44 billion, 6.64 billion, and 6.20 billion [19] Investment Recommendations - The report recommends investing in Muyuan Foods, Wens Foodstuffs, and other companies in the pig farming sector due to improving investment logic [20] - The feed sector is expected to benefit from strong overseas demand, with recommendations for Haida Group and New Hope [20] - The pet sector is highlighted for its growth potential, with recommendations for Guibao Pet and Zhongchong Co. [20]

Core Viewpoint - The legal opinion issued by Guohao Law Firm confirms that the procedures for convening and holding the 2025 First Extraordinary General Meeting of Guangdong Yuehai Feed Group Co., Ltd. comply with relevant laws and regulations, ensuring the legality and validity of the meeting and its resolutions [1][4][9]. Group 1: Meeting Procedures - The meeting was convened by the company's board of directors as per the notice published on July 9, 2025, which complies with the Company Law and the company's articles of association [2][3]. - The meeting took place on July 25, 2025, at the specified location and time, consistent with the notice [3][4]. Group 2: Attendance and Qualifications - A total of 152 shareholders attended the meeting, representing 485,389,899 shares, which is 70.4076% of the total voting shares [3][5]. - Among the attendees, 4 shareholders were present at the venue, representing 482,173,999 shares, or 69.9411% of the voting shares [4][5]. Group 3: Voting Procedures and Results - The meeting's proposals were reviewed and voted on through both on-site and online voting methods, with the results confirming the legality of the voting process [5][9]. - The voting results showed that 485,184,399 shares (99.9577%) were in favor of the proposals, with only 100 shares against, indicating strong support from the shareholders [6][9].

Group 1 - The core viewpoint emphasizes the importance of focusing on the pig farming industry, highlighting both offensive and defensive investment opportunities due to the value of breeding sows and farming efficiency. It is anticipated that pig prices may show a downward trend in 2025, while remaining relatively stable throughout the year, coupled with cost reductions leading to profits exceeding expectations. Attention should be given to high-quality pig companies with significant marginal cost changes and good financial conditions [1][4] - The pet food industry is in a growth phase, with an increasing market share for quality enterprises [1][4] - There is a correlation between yellow chicken prices and pig prices, and considering the low supply side, there is potential for price increases in the future [1][4] Group 2 - In June, the Consumer Price Index (CPI) turned positive year-on-year, with a 19% decrease in agricultural trade deficit. The CPI for June was +0.1% year-on-year, with food items down by 0.3%, and pork prices down by 8.5% year-on-year [2] - The agricultural index outperformed the CSI 300 from early July to July 22, with the agriculture, forestry, animal husbandry, and fishery index rising by 7.35%, while the CSI 300 increased by 4.65%. The livestock sector saw a notable increase of 11.2% [2] - In July, the profit from self-breeding and self-raising pigs improved month-on-month, with the price of pigs reaching a peak of 21.06 yuan/kg in mid-August before fluctuating downwards. As of July 16, 2025, the price was 14.96 yuan/kg, down 8% from the end of 2024 [3] - The export volume and price of pet food fell in June, with a year-on-year decrease of 20.22% in export value. However, the cumulative export value for the first half of 2025 showed a slight increase of 0.4% [3]

国浩律师（深圳）事务所 关于 广东粤海饲料集团股份有限公司 法律意见书 深圳市深南大道 6008 号特区报业大厦 24/31/41/42 层 邮编： 518034 电话/Tel: +86 755 8351 5666 传真/Fax: +86 755 8351 5090 网址/Website: http://www.grandall.com.cn 二〇二五年七月 国浩律师（深圳）事务所 法律意见书 （以下简称"《证券 法》"）、中国证券监督管理委员会（以下简称"中国证监会"）颁布的《关于上市 公司实施员工持股计划试点的指导意见》（以下简称"《指导意见》"）、深圳证券 交易所颁布的《深圳证券交易所上市公司自律监管指引第 1 号——主板上市公司 规范运作（2025 年修订）》（以下简称"《自律监管指引第 1 号》"）等有关法律、 法规和规范性文件，以及《广东粤海饲料集团股份有限公司章程》 （以下简称"《公 司章程》"）的规定，就粤海饲料 2025 年员工持股计划（以下简称"本员工持股 计划"）相关事宜出具本法律意见。 为出具本法律意见书，本所律师特作如下声明： 国浩律师（深圳）事务所 关于广东粤海饲料集团股份有限公司 ...

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry, expecting the industry index to outperform the market index by over 10% in the next six months [2][5]. Core Insights - The recent rebound in the agriculture, forestry, animal husbandry, and fishery industry is attributed to the expectation of supply reduction in pig and poultry farming, leading to improved industry profitability [4]. - As of July 22, 2025, the overall price-to-book (PB) ratio for the SW agriculture, forestry, animal husbandry, and fishery industry is approximately 2.77 times, indicating a recovery but still at a relatively low historical level [4]. - The number of breeding sows in China remains high, with a stock of 40.43 million as of June 2025, indicating significant potential for supply reduction [4]. - The average price of white feather broilers is reported at 6.4 yuan per kilogram, with a loss of 2.93 yuan per bird, reflecting ongoing profitability challenges in the poultry sector [4]. Summary by Sections Industry Overview - The agriculture, forestry, animal husbandry, and fishery industry has shown resilience, outperforming the Shanghai and Shenzhen 300 Index recently, particularly driven by the livestock sector [2][4]. Supply and Demand Dynamics - The supply of breeding sows is expected to decrease, with projections indicating a rebound in pig output in Q3 2025, followed by a potential decline in Q4 [4]. - The chicken supply is also anticipated to remain high, with the introduction of new breeding stock leading to increased availability in the latter half of 2025 [4]. Investment Strategy - The report suggests that the breeding sow stock has considerable room for reduction, making it a favorable time to invest in pig farming companies, which have shown good profitability due to cost reduction and increased output [4]. - For poultry farming, while current supply is robust and prices are under pressure, there are opportunities for marginal profit improvement as supply dynamics shift [4]. - Recommended stocks for investment include Muyuan Foods (002714), Wens Foodstuff Group (300498), and others listed in the report [4].

Market Overview - The domestic market indices showed positive performance with the Shanghai Composite Index closing at 3,581.86, up by 0.62% [2] - The agricultural sector underperformed slightly with a decline of 0.14% in the agricultural, forestry, animal husbandry, and fishery sector [4] Agricultural Sector Insights - The report highlights a favorable investment opportunity in Haida Group, driven by expected recovery in the feed industry as upstream raw material prices stabilize and downstream farming conditions improve [4] - Recent data indicates a decline in pig prices, with average prices in key provinces showing a decrease of 4.88% in Sichuan and Guangdong, while the average pork price increased by 0.29% [4] - The report discusses the cyclical nature of the pig industry, emphasizing that the current market may be overly pessimistic regarding the impact of rising pig production capacity on profitability [4] - Recommendations include companies like Wen's Foodstuffs, Shennong Group, and New Hope, which are expected to benefit from the anticipated recovery in the pig farming sector [4] Poultry and Pet Food Industry - The poultry sector is projected to see performance driven by new demand recovery in 2025, with Shennong Development positioned well for growth [4] - The pet food market is highlighted as a key area for growth in 2025, with a focus on brands that are leading in profitability and market trends, recommending Guibao Pet Food as a top pick [4] Textile and Apparel Sector - Nine Star Holdings reported a revenue increase of 2.9% in Q2 2025, with footwear manufacturing also showing growth [6][8] - The report notes that the sports apparel segment is experiencing robust demand, with brands like Anta Sports and Li Ning showing varied performance in retail sales [10] - Recommendations for the textile sector include companies with strong mid-year performance certainty, such as Bailong Oriental and Zhejiang Natural [10] Jewelry Sector - The gold and jewelry retail sector saw a year-on-year growth of 6.1% in June 2025, indicating stable demand [10] - Companies like Laoputang and Chaohongji are recommended for their potential recovery based on channel scale and franchise resources [10]

Core Viewpoint - The acquisition of Riverstone Farm Pte.Ltd. by Bangji Technology aims to create a closed-loop supply chain in the feed and pig farming industry, potentially reducing feed costs for farmers while navigating the cyclical nature of the pig industry [1][5][20]. Group 1: Acquisition Details - Bangji Technology plans to acquire 100% equity of six agricultural companies under Riverstone, including Riverstone Agriculture, for a total consideration expected to exceed 600 million yuan [5][6]. - The acquisition is seen as a strategic move to transition from a pure feed production company to an integrated feed and pig farming enterprise, enhancing upstream and downstream collaboration [14][20]. - The deal is anticipated to significantly lower feed costs for farmers, with estimates suggesting a reduction of 80 yuan per pig [20][23]. Group 2: Industry Context - The feed industry is currently facing challenges, with a reported 14.1% decline in pig feed production in Shandong, dropping to 9.66 million tons in 2024 [15]. - The pig farming sector in Shandong has been impacted by African swine fever, leading to significant losses in breeding stock and prompting a shift towards external piglet sourcing [9][10]. - The trend towards a "platform + breeding team + family pig farm" model is gaining traction, indicating a shift in the industry towards more integrated and sustainable practices [18][20]. Group 3: Market Dynamics - The acquisition reflects a broader trend in the industry where companies are seeking to control the entire supply chain to mitigate risks associated with market volatility and cyclical downturns [20][23]. - The competitive landscape is intensifying, with many companies, including Haida Group and New Hope, also pursuing similar strategies to enhance their market position [20][24]. - The potential for a price war in 2025 due to increased production capacity poses a risk to profitability, highlighting the cyclical nature of the pig farming industry [23][24].

Core Viewpoint - Boen Group (001366.SZ) anticipates a net loss of 13.8 million to 15.3 million yuan for the first half of 2025, compared to a loss of 4.04 million yuan in the same period last year [1] Financial Performance Summary - The expected net profit attributable to shareholders for the first half of 2025 is a loss of 13.8 million to 15.3 million yuan, while the previous year recorded a loss of 4.04 million yuan [1][2] - The net profit after excluding non-recurring gains and losses is projected to be a loss of 14.5 million to 16 million yuan, compared to a loss of 6.11 million yuan in the same period last year [1][2] - For the year 2024, the company reported an operating income of 1.017 billion yuan, a decrease of 29.16% year-on-year [3] - The net profit attributable to shareholders for 2024 was a loss of 28.71 million yuan, down 158.95% from the previous year [3] - The net profit after excluding non-recurring gains and losses for 2024 was a loss of 31.29 million yuan, a decrease of 193.25% year-on-year [3] - The net cash flow from operating activities for 2024 was a loss of 30.85 million yuan, down 167.14% from the previous year [3] Quarterly Performance Summary - In the first quarter of 2025, the company achieved an operating income of 286 million yuan, an increase of 18.94% year-on-year [3] - The net profit attributable to shareholders for Q1 2025 was a loss of 511.73 thousand yuan, compared to a loss of 368.82 thousand yuan in the same period last year [3] - The net profit after excluding non-recurring gains and losses for Q1 2025 was a loss of 561.60 thousand yuan, compared to a loss of 397.95 thousand yuan in the same period last year [3] IPO and Fundraising Information - Boen Group was listed on the Shenzhen Stock Exchange on March 7, 2023, issuing 40.35 million shares at a price of 9.32 yuan per share [4] - The total amount raised was 376.06 million yuan, with a net amount of 319.05 million yuan allocated to various projects including feed production and a research center [4] - The total issuance costs amounted to 57.01 million yuan, with underwriting fees of 31.80 million yuan [4]