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]

Investment Rating - The report maintains a "Recommended" rating for the agricultural, forestry, animal husbandry, and fishery industry [1][8][64] Core Viewpoints - The report highlights the long-term value reassessment opportunities in the pig industry, with expectations of price fluctuations in the range of 14-15 CNY/kg post-Chinese New Year 2025, indicating a potential downward trend in prices due to supply pressures [4][15] - The poultry sector is experiencing price declines, with a focus on marginal improvements in the cycle, while the animal health sector is expected to see performance recovery and investment opportunities in the pet medical industry [5][6][28] - The pet economy is thriving, with domestic brands rapidly emerging, and the report anticipates continued improvement in industry profitability [7][58] Summary by Sections 1. Pig Industry - The average price of pigs is currently around 14.6 CNY/kg, with a slight weekly decline [14] - The report recommends companies with low costs and strong financials, specifically highlighting Wens Foodstuffs, Muyuan Foods, and Juxing Agriculture [15][64] 2. Poultry Industry - The report notes a decline in poultry prices, with a focus on the cyclical improvements expected in the future [27] - Recommendations include Shennong Development and Lihua Stock [5][28] 3. Animal Health - The animal health sector is expected to see a recovery in performance, supported by the profitability of the pig farming industry [6][38] - Investment opportunities in the pet medical sector are highlighted, with a market size of approximately 840 billion CNY [7][38] 4. Planting Industry - The report indicates a decrease in wheat and corn prices, with recommendations for companies involved in genetically modified seeds [44][50] 5. Feed Industry - The total industrial feed production in the first half of 2025 reached 15,850 million tons, showing a year-on-year growth of 7.7% [48][50] - Recommendations include Haida Group and attention to He Feng Stock [50] 6. Pet Industry - The pet consumption market is projected to reach 300.2 billion CNY in 2024, with a growth rate of 7.5% [55][58] - Recommended companies in the pet food sector include Guai Bao Pet, Zhongchong Stock, and Petty Stock [58][64]

Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Viewpoints - The pig industry is experiencing a slight increase in breeding stock in Q2, with high profitability and a trend towards "de-involution" [2] - The latest pig price is 14.39 CNY/kg, with an average slaughter weight of 128.83 kg, indicating a potential for price stability despite slight fluctuations [3][13] - The Ministry of Agriculture's monitoring shows a 0.8% decrease in the national inventory of large pigs in June, suggesting a reduction in pig slaughter in July and August [3][47] Summary by Sections 1. Pig Industry - Breeding stock has slightly increased, with a national breeding sow inventory of 40.43 million heads, a year-on-year increase of 0.12% [4][13] - The industry has maintained profitability for 14 consecutive months, with 11 out of 14 listed companies forecasting increased performance for the first half of 2025 [4] - The Ministry of Agriculture is implementing capacity regulation policies to stabilize pig prices, indicating a strong commitment to maintaining price stability [4][13] - Recommended companies include Dekang Agriculture, Muyuan Foods, and Wens Foodstuff Group, focusing on cost-leading enterprises with strong profit certainty for 2025 [4] 2. Poultry Industry - The price of chicken seedlings in Yantai is 1.9 CNY/bird, up 27% month-on-month but down 40% year-on-year; the price of broiler chickens is 3.3 CNY/kg, up 3.8% month-on-month [5][14] - The industry faces a "high capacity, weak consumption" contradiction, leading to a reduction in production capacity among breeding farms [5][14] - Key investment focuses include high-return enterprises with sustainable ROE improvements, such as Yisheng Livestock and Shennong Development [5][14] 3. Feed Industry - The prices of various aquatic products have shown positive performance, with significant year-on-year increases for several species [6][15] - Recommended company is Haida Group, which is expected to benefit from industry recovery and improved management effectiveness [6][15] 4. Pet Industry - The uncertainty of tariffs and export fluctuations in Q2 have impacted the pet sector, but long-term effects are expected to be limited due to strong brand positioning and overseas factory layouts [7][17] 5. Agricultural Products - There is significant uncertainty regarding soybean imports in Q4, with August 1 being a critical date for monitoring US-China trade negotiations [8][18] - Natural rubber prices are expected to maintain a strong trend due to favorable macroeconomic conditions [8][18] 6. Market and Price Situation - The Shanghai and Shenzhen 300 Index closed at 4059, up 1.09% from the previous week, while the Agricultural Index closed at 2755, down 0.14% [19][21] - The livestock sector index is at 3071, indicating a stable performance amidst market fluctuations [19][35]

Reinstatement - Changhong High-Tech plans to acquire 100% equity of Guangxi Changke through issuing shares, convertible bonds, and cash payment, focusing on the R&D of special synthetic resins, with stock reinstatement [1] - Jichuan Pharmaceutical disclosed the results of the acquisition offer by Cao Fei, leading to stock reinstatement [2] - *ST Yazhen completed the verification work, resulting in stock reinstatement [3] Capital Increase and Mergers - Chiplink Integration intends to purchase 72.33% equity of Chiplink Yuezhou for 5.897 billion yuan [4] - Dongwu Securities plans to raise no more than 6 billion yuan through a private placement for subsidiary capital increase, IT and compliance investments, wealth management, bond investments, debt repayment, and working capital [4] - Weiguang Biological aims to raise no more than 1.5 billion yuan for its smart industrial base project and to supplement working capital [5] - Zhengyu Industrial plans to raise no more than 450 million yuan for the second phase of Zhengyu Intelligent Manufacturing Park and to supplement working capital [6] Equity Transfer - Liangpinpuzi's Ningbo Hanyi plans to transfer 5.10% of its shares to Wanggu Chuangtou at a price of 12.42 yuan per share, totaling 254 million yuan [7] - Dongfang Caifu's shareholder Shen Yougen intends to transfer 1% of the company's shares, with a familial relationship to the actual controller [8] External Investment and Daily Operations - Shangshi Development's wholly-owned subsidiary Quanzhou Shangshi plans to transfer its holdings in the Quanzhou Fengze District Shangshi Haishang project to Quanzhou Kaiyuan's wholly-owned subsidiaries for approximately 2.05 billion yuan [9] - Rik Chemical signed a strategic cooperation framework agreement with Shandong Dongming Petrochemical Group for collaboration in specialized polyethylene powder supply, industry ecosystem building, and new product development [10] - Huadong Pharmaceutical's wholly-owned subsidiary received approval for clinical trials of the injectable HDM2012 drug [11] - Dongrui Co. obtained additional export quotas for live pigs to Hong Kong and Macau for 2025 [12] - Kuaibingtong's largest shareholder Yang Jianxin successfully auctioned 8 million shares [13] - Pulite's subsidiary introduced strategic investor Guoyan No. 1 through capital increase and expansion [14] - Bohui Co. plans to purchase servers, data center facilities, and related services through its wholly-owned subsidiary Wuxi Jizhi Liquid Cooling Technology, with an estimated total amount not exceeding 900 million yuan [15] - Lianhuan Pharmaceutical received approval for clinical trials of the drug Riluzole [16] Performance Changes - Jiabiyou expects a net profit of approximately 107 million yuan for the first half of the year, a year-on-year increase of 57.61%, driven by increased sales of core products ARA and algae oil DHA [17] - Sanhuan Group anticipates a net profit of 1.128 billion to 1.333 billion yuan for the first half of the year, a year-on-year increase of 10% to 30%, with significant sales growth in MLCC products [18] - Shentong Technology reported a net profit of 64.278 million yuan for the first half of the year, a year-on-year increase of 111.09% [19] - Nanjing Gaoke's contract sales reached 820 million yuan for the first half of the year, a year-on-year increase of 824.68% [20]

Investment Rating - The industry is rated as "Buy" [5] Core Views - The long-term logic remains solid, with expectations for supply and demand in natural rubber to recover [2] - Recent policy guidance indicates a positive shift in pig prices, with a long-term view suggesting the industry may enter a prolonged profit upcycle [4][70] - The agricultural sector is experiencing a mixed performance, with animal health and aquaculture sectors showing positive trends, while feed and poultry sectors face challenges [14][18] Summary by Sections 1. Market Review - The agricultural sector outperformed the market, with the agricultural index down 0.14% while the Shanghai Composite Index rose 0.69% [14] - Key sub-sectors showed varied performance, with animal health up 5.13% and feed down 0.71% [14][18] 2. Key Data Tracking - Pig prices decreased to 14.27 yuan/kg, down 3.65% week-on-week, while chicken prices increased to 6.4 yuan/kg, up 2.56% [22][34] - Natural rubber prices rose to 14,840 yuan/ton, up 3.16% week-on-week, driven by tight supply and recovering demand from the tire industry [61] 3. Investment Recommendations - Focus on pig farming sector with recommendations for companies like Muyuan Foods and Wens Foodstuffs [4][70] - Attention to post-cycle sectors, particularly in feed and animal health, with companies like Haida Group and Reap Bio [4][70] - In the planting chain, investment opportunities are highlighted for companies such as Suqian Agricultural Development and Beidahuang [4][70] - The pet food sector is also recommended due to ongoing growth and price increases, with companies like Guibao Pet and Zhongchong Co. [4][70]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [45][46]. Core Insights - The SW agriculture, forestry, animal husbandry, and fishery industry slightly underperformed the CSI 300 index, with an increase of 0.74% from July 4 to July 17, 2025, lagging behind the index by approximately 0.93 percentage points [11][14]. - Most sub-sectors recorded positive returns during the same period, with animal health, agricultural product processing, breeding, and planting sectors increasing by 8.71%, 2.56%, 1.42%, and 0.46% respectively, while the fishery and feed sectors saw declines of 1.8% and 4.2% [14][15]. - The overall price-to-book (PB) ratio for the industry is approximately 2.66 times, indicating a slight recovery, but still remains at a historical low, around 59.2% of the valuation center since 2006 [21][22]. Industry Key Data - **Pig Farming**: - The average price of external three yuan pigs decreased from 15.31 CNY/kg to 14.37 CNY/kg between July 4 and July 17, 2025 [24]. - As of June 2025, the breeding sow inventory reached 40.43 million heads, slightly up by 0.02% from the previous month, which is 103.7% of the normal holding capacity of 39 million heads [24]. - The profit from self-breeding pigs is 90.89 CNY/head, while the profit from purchased piglets is -18.66 CNY/head, both showing a decline compared to the previous week [29]. - **Poultry Farming**: - The average price of broiler chicks in major production areas was 1.37 CNY/chick, showing a slight increase, while the average price of layer chicks was 3.88 CNY/chick, which slightly decreased [31]. - The average price of white feather broilers was 6.4 CNY/kg, which has also decreased, with a profit of -2.93 CNY/chick, showing a slight recovery compared to the previous week [34]. - **Feed Costs**: - The spot price of corn was 2409.12 CNY/ton, showing a decline, while soybean meal prices were 2952 CNY/ton, which fluctuated in the last two weeks [26]. Industry Outlook - The report anticipates an overall increase in pig production capacity this year, which may suppress pig prices. The breeding sow inventory has some room for reduction [45]. - The poultry sector continues to face pressure on profitability, with opportunities for marginal improvement [45]. - In the feed sector, there are opportunities arising from increased concentration among leading companies, cost reduction, and overseas expansion [45]. - The domestic pet market is expected to maintain rapid growth, with leading domestic brands likely to see significant growth [45]. Recommended Stocks - Key stocks to focus on include: - Muyuan Foods (002714) - Wens Foodstuff Group (300498) - Shennong Development (002299) - Haida Group (002311) - Bio-Stock (600201) - Zhongchong Co., Ltd. (002891) - Yiyi Co., Ltd. (001206) [46].

Report Summary 1. Investment Ratings - No investment ratings provided in the report 2. Core Views - **Pigs**: Future two months are a seasonally tight supply period for pigs due to winter piglet diseases, and the July pig slaughter plan is reduced, which supports the pig market. However, the overall supply this year is relatively strong, with the national sow inventory in May at 40.42 million heads, only 0.38 million heads less than the peak in November last year, and still above the basic capacity of 39 million heads, limiting the upward movement of pig prices [2] - **Eggs**: Eggs are in a traditional seasonal off - season with weakening consumption demand. The high - temperature and high - humidity weather is unfavorable for egg storage, reducing channel purchasing willingness. Newly - laying hens are at a high - production stage. Although farmers have a high willingness to cull due to large losses, the supply - side capacity reduction has just begun, and the reversal point has not arrived. Egg prices have a rebound demand at low levels but are still in a bearish trend, showing a weak and volatile pattern [7] - **Soybean Meal**: As of the week ending July 13, 2025, the good - to - excellent rate of US soybeans was 70%, higher than market expectations and the previous week, and also at a relatively high level over the years. Brazil's 2024/25 soybean production is expected to be 169.5 million tons. The confirmed high - yield expectations in South America suppress the futures price to fluctuate weakly [9] - **Corn**: The spot price in the main production areas has weakened, and under the continuous decline of the futures price, traders' willingness to hold prices has weakened, and their willingness to sell at low prices has increased. Deep - processing enterprises are pressing prices for purchases. The corn inventory in the four northern ports, a barometer of inventory, has continued to decline from a historical high, and the inventory of feed and deep - processing enterprises has also decreased. Affected by the import corn auction, the spot price has loosened, and the adjustment of the futures price on the disk continues [11] 3. Summaries by Directory 3.1 Farming Capacity - **Pigs**: The sow inventory is in a green area, indicating a loose capacity [17] - **Eggs**: The laying - hen inventory is at a historical high, with loose capacity [17] 3.2 Farming - end Demand - **Pigs**: The pig slaughtering start - up rate is running weakly [21] - **Eggs**: The downstream consumption is average [21] 3.3 Replenishment Prices - **Pigs**: The average price of piglets has been fluctuating weakly recently [24] - **Eggs**: The price of chicken chicks is high [24] 3.4 Basis - **Pigs**: Due to loose capacity and weak expectations, the futures price is weaker than the spot price, and the basis is oscillating at a high level [27] - **Eggs**: The basis shows a weak and volatile trend [27] - **Soybean Meal**: As the arrival of goods increases, the basis is falling [30] - **Corn**: The basis is running weakly [30] 3.5 Production Profits - **Pigs**: Pig - farming profits are weakly oscillating [33] - **Eggs**: Laying - hen farming profits are weakly oscillating [33] - **Soybeans**: The soybean crushing profit is currently running weakly [43] - **Corn**: The starch - corn price difference is weakly oscillating [43] 3.6 Inventory - **Soybeans**: With the increasing arrival of goods, soybean inventory is at a high level, and soybean meal inventory is accumulating due to the recovery of the startup rate [36] - **Corn**: The deep - processing inventory has slightly declined due to less arrivals and strong price - holding willingness of traders; the overall inventory of feed enterprises has also slightly decreased this week [40] 3.7 Industry Terms - **Old Rice**: Usually stored in reserve warehouses for a long time, it can be used for processing fuel ethanol or feed, with a relatively low price. It is a good substitute for corn in feed use, and the auction rhythm of old rice has a certain regulatory effect on the corn market price [44] - **Secondary Fattening**: Farmers buy healthy pigs that have reached the normal slaughter weight (usually 200 - 250 pounds), fatten them for a period to increase their weight to 350 pounds or more, and then sell them to earn the price difference. This model has become popular after African swine fever [44]

截至7月15日，深市已有775家上市公司披露2025年半年度业绩预告，其中453家公司预计上半年净利润 实现同比增长，占比近六成。 据统计，超110家公司预计上半年净利润同比增长超过100%，355家公司预计上半年净利润同比增速超 过50%，405家公司预计上半年净利润同比增长超过30%。此外，近百家公司预计将扭亏为盈。 截至7月15日，已披露半年度业绩预告的深市公司涉及30个申万一级细分行业，其中20个行业的预计净 利润上限合计为正，25个行业的预计净利润上限实现正增长。盈利规模排名靠前的行业包括农林牧渔、 电子、有色金属、基础化工、机械设备等。 龙头公司继续发挥引领作用 深市市值排名前100的公司中，21家已披露业绩预告，其中20家实现同比增长，预计合计实现净利润512 亿元至569亿元，牧原股份、新易盛、TCL科技等公司净利润同比增速超过100%，继续发挥引领作用。 7月10日，牧原股份发布2025年半年度业绩预告称，预计上半年实现归母净利润102亿元至107亿元，同 比增长1129.97%至1190.26%。经营业绩大幅提升的主要原因是公司生猪出栏量较去年同期上升，导致 收入上升，且生猪养殖成本较去年 ...

Summary of the Conference Call for Tongwei Co., Ltd. Company Overview - **Company Name**: Tongwei Co., Ltd. - **Industry**: Aquaculture feed and solar energy - **Founded**: 1982 - **Listing**: Listed on the Shanghai Stock Exchange in 2004 - **Business Model**: Dual main business model focusing on agriculture and renewable energy Key Points and Arguments Industry Challenges - The solar energy industry faced significant challenges in 2024, with a notable decline in prices across the supply chain, leading to widespread losses among industry participants [3][7][8] - The aquaculture feed industry also experienced a contraction, with a total production of 31.5 million tons, marking a decrease of approximately 660,000 tons, the first decline in five years [7][8] Financial Performance - In 2024, Tongwei reported a revenue of 91.994 billion yuan, a decrease of 33.87% year-on-year, and a net loss attributable to shareholders of 7.039 billion yuan, a decline of 151.86% [8][15] - The company achieved cash dividends exceeding 4 billion yuan in 2024, with cumulative dividends since listing surpassing 25 billion yuan [4] Business Segments - **Solar Energy**: - Tongwei is a leading producer of high-purity polysilicon, with a sales volume of 467,600 tons, a year-on-year increase of 20.76% [8] - The company maintained its position as the world's largest solar cell manufacturer, with a shipment of 87.68 GW, a growth of 8.7% [9] - The solar industry saw a 35.9% increase in installed capacity, reaching 530 GW in 2024 [7] - **Aquaculture Feed**: - The company reported a total feed sales volume of 6.8686 million tons, with significant growth in specialized aquaculture feeds [13][14] Strategic Initiatives - Tongwei is focusing on enhancing its core competitiveness in both main business areas, emphasizing technology innovation and market expansion [8][10] - The company is actively exploring overseas markets, with a 98% increase in overseas sales in 2024, particularly in the Middle East and emerging markets [10][18] Technological Advancements - The company is investing in R&D, with a significant increase in patent applications, including a 135.59% rise in authorized patents [11] - Tongwei is advancing its N-type technology, with plans to enhance production efficiency and reduce costs [11][25][36] Financial Strategy - The company is prioritizing financial safety, with a focus on controlling capital expenditures and optimizing its capital structure [16][28] - Tongwei has introduced strategic investors to strengthen its financial position and enhance operational flexibility [20][21] Market Outlook - Despite current challenges, the company remains optimistic about the long-term prospects of the solar energy industry, driven by global energy transition goals [16][23] - The company is committed to maintaining its leadership in the solar market while adapting to changing market dynamics and technological advancements [25][32] Additional Important Information - The company has established a global innovation R&D center to focus on advanced solar technologies and materials [12][13] - Tongwei is actively addressing the challenges posed by trade barriers in international markets, particularly in the context of U.S. tariffs on solar products [18][19] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the challenges and strategic responses of Tongwei Co., Ltd. in the aquaculture and solar energy sectors.

Group 1: International Business Development - The company has established a sales network in over 40 countries and regions, including Vietnam, Russia, Thailand, and Brazil, adhering to a "deepening domestic and breaking through overseas" market strategy [2][3]. - In the first half of 2025, the company reported a year-on-year growth of over 20% in overseas business revenue for both 2023 and 2024 [4]. Group 2: Corn Protein Processing Project - The company is constructing a corn protein processing project with an annual capacity of 100,000 tons, expected to be completed in 2025 [5]. - Once fully operational, the project will provide 100,000 tons of corn protein products annually, contributing significantly to the global feed industry and generating new revenue streams for the company [5]. Group 3: Product Applications and Advantages - The corn protein products will primarily serve the poultry and aquaculture sectors, diversifying the company's product strategy to mitigate market volatility risks [6][7]. - The project utilizes local corn by-products, enhancing the nutritional value of corn protein through enzymatic hydrolysis, which improves digestibility and absorption [7]. Group 4: Competitive Advantages - The company's core competitive advantages are reflected in three dimensions: product innovation, market management, and talent development [8][9][10]. - The company emphasizes a "full nutrition" product strategy, leveraging proprietary technologies to cater to different animal growth stages and market needs [8]. Group 5: Future Business Plans - The company is exploring opportunities in the pet food and feed sectors, having established partnerships with companies like Fubei [11]. - The company maintains a focus on managing accounts receivable and credit risk through differentiated credit policies and enhanced customer management [12]. Group 6: Digital Transformation - The company has implemented an ERP system and smart manufacturing systems to enhance operational efficiency and customer satisfaction [14]. - The integration of sales, procurement, and production plans aims to improve information accuracy and workflow efficiency [14].