Core Viewpoint - The strategic partnership between Lude Technology and Guotou Juli Investment Management aims to enhance capabilities in the biomanufacturing sector through collaboration and capital investment [1][3]. Group 1: Strategic Partnership - Lude Technology plans to sign a strategic cooperation agreement with Guotou Juli, leveraging strengths in biomanufacturing [1][3]. - Guotou Juli will invest a total of 117 million yuan in three subsidiaries of Lude Technology to support capacity enhancement and efficiency improvements [1][4]. Group 2: Business Transformation - Lude Technology, formerly known as Lude Environment, has shifted its focus from inorganic waste treatment to biomanufacturing, with the revenue from its fermented feed business growing at a compound annual growth rate of 72.89% from 2020 to 2022 [2][3]. - By the third quarter of 2023, Lude Technology reported total revenue of 254 million yuan, marking a year-on-year increase of 14.15% [2]. Group 3: Investment Details - The investment from Guotou Juli will be allocated as follows: 35 million yuan to Lude Biological Environmental Technology (Bozhou), 45 million yuan to Lude Biological Environmental Technology (Suqian), and 37 million yuan to Sichuan Yongle Lude Biological Technology Development [4]. - After the investment, Guotou Juli will indirectly hold shares in these subsidiaries, while Lude Technology will maintain its status as the controlling shareholder [4]. Group 4: Future Commitments - Lude Technology commits to invest no less than 30 million yuan from 2026 to 2028 for the development of protein feed resources and aims to sell at least 280,000 tons of fermented feed from liquor waste in 2026 [5]. - The company plans to ensure that by 2028, at least 10% of its liquor waste protein feed products will have a protein content of no less than 26% [5]. Group 5: Market Expansion - The partnership is expected to enhance Lude Technology's financial structure and provide ongoing funding support for capacity expansion and technological upgrades [3][6]. - The collaboration will also facilitate market expansion and industrial synergy in key agricultural regions across China, particularly in the Yangtze River Delta [6].

Core Insights - The strategic cooperation between Lude Technology and Guotou Juli marks a significant capital movement in the biomanufacturing sector, with a total investment of 117 million yuan aimed at enhancing the company's focus on biomanufacturing [1][2] Group 1: Investment Details - Guotou Juli's fund, Juli Hangshi, plans to strategically invest in three core subsidiaries of Lude Technology, with investments of 35 million yuan in Bozhou Lude, 45 million yuan in Suqian Lude, and 37 million yuan in Yongle Lude [1] - This investment is part of a broader initiative by state-owned capital to deepen its involvement in the non-grain biomanufacturing industry, contributing to agricultural green transformation and national food security [1][2] Group 2: Strategic Collaboration - The collaboration highlights the synergy between national and local investment strategies, with Guotou Juli being a key player in the state-owned enterprise sector, managing assets exceeding 800 billion yuan [2] - The partnership aims to leverage the strengths of both national and local capital to create a resource network that connects national strategies with local industry needs [2] Group 3: Technological and Product Development - The three subsidiaries are pivotal to Lude Technology's transition from environmental governance to high-tech biomanufacturing, utilizing by-products from the food industry to produce high-quality biopharmaceutical feed [3] - Lude Technology has committed to investing at least 30 million yuan in research and development of protein feed resources from 2026 to 2028, aiming to enhance the protein content of its products [4] Group 4: Industry Ecosystem and Future Outlook - The investment is not merely financial but is seen as a strategic move to build a biomanufacturing ecosystem, crucial for addressing food security and agricultural livelihoods [5] - Future collaborations will focus on innovative uses of non-grain biomass and the development of functional bioproducts, contributing to cost reduction and efficiency in the livestock industry [6]

Core Viewpoint - The strategic cooperation between Lude Technology and Guotou Juli Investment Management aims to enhance collaboration in the biomanufacturing sector, with a total investment of 117 million yuan in three subsidiaries focused on high-quality bio-fermented feed production [1][2]. Group 1: Investment Details - Guotou Juli's subsidiary, Juli Hangshi Fund, plans to invest 11.7 million yuan in Lude Technology's three bio-fermented feed subsidiaries: 35 million yuan in Bozhou Lude, 45 million yuan in Suqian Lude, and 37 million yuan in Yongle Lude [1]. - The investment is part of a broader strategy to support the development of the biomanufacturing industry, with the goal of increasing the industry's output value to 60 billion yuan by the end of the 14th Five-Year Plan [1]. Group 2: Company Transformation and Commitments - The three subsidiaries are central to Lude Technology's transition from environmental governance to high-tech biomanufacturing, utilizing by-products from the food industry to produce bio-fermented feed [2]. - Lude Technology commits to investing no less than 30 million yuan in research and development for protein feed resources between 2026 and 2028, with a sales target of at least 280,000 tons of bio-fermented feed made from liquor lees in 2026 [2]. - By 2028, Lude Technology aims for at least 10% of its soy sauce-flavored feed products to contain a protein content of no less than 26% [2]. Group 3: Strategic Advantages - The investment from Juli Hangshi Fund is expected to enhance Lude Technology's existing capacity and facilitate the planning of new capacities, transforming technological advantages into market and industrial advantages [2]. - Leveraging the strategic resources of the Guotou system will allow Lude Technology to integrate more deeply into the national biomanufacturing landscape, while collaboration with local investment funds will accelerate market expansion in key agricultural regions [2].

Core Viewpoint - The company, Lude Technology (688156.SH), has announced a strategic cooperation agreement with Guotou Juli Investment Management Co., Ltd., aiming for resource sharing, complementary advantages, and mutual benefits [1] Group 1: Strategic Cooperation - The cooperation will involve deep collaboration in strategic planning, capital operations, and business synergy [1] - Guotou Juli is a professional investment management institution with extensive industrial resources and capital operation experience [1] Group 2: Benefits of Cooperation - Capital-wise, the partnership is expected to optimize the company's financial structure, provide continuous funding support, and assist in capacity expansion and technological upgrades [1] - Technologically, the collaboration will leverage Guotou's innovation platform and research resources to enhance the company's R&D capabilities and process optimization, thereby improving product competitiveness [1] - From an industrial perspective, the cooperation will connect high-quality upstream and downstream resources, broadening market channels [1] Group 3: Strategic Direction and Business Focus - The agreement clarifies the company's strategic direction and development goals for R&D and products, ensuring a focus on the core business of biological fermentation feed and facilitating business transformation [1] - This partnership aligns with the company's long-term development plan and the interests of all shareholders [1]

Investment Rating - The investment rating for the company is "Accumulate" and is maintained [6] Core Views - In the first three quarters of 2025, the company achieved operating revenue of 250 million yuan, a year-on-year increase of 14.2%, while the net profit attributable to the parent company was a loss of 20 million yuan. In Q3 alone, the revenue reached 110 million yuan, up 38.9% year-on-year, with a net profit loss of 3.05 million yuan [2][4] - The gross margin of the distiller's grains feed products is showing signs of recovery, and new factories are gradually turning profitable. The rapid development of the bio-fermented feed business has led to a slight increase in expenses, but customer coverage continues to expand, with expectations for performance improvement [2][10] Summary by Sections Financial Performance - The company reported a total revenue of 250 million yuan for the first three quarters of 2025, with a year-on-year growth of 14.2%. The net profit attributable to the parent company was a loss of 20 million yuan. In Q3, the revenue was 110 million yuan, marking a 38.9% increase year-on-year, while the net profit loss was 3.05 million yuan [2][4] Business Segments - The bio-fermented feed segment saw a sales volume of 131,800 tons in the first three quarters, a year-on-year increase of 62.48%, generating sales revenue of 200 million yuan, up 18.74%. In Q3, the sales volume was 59,400 tons, a 95.61% increase year-on-year, with sales revenue of 90 million yuan, up 42.50% year-on-year [10] - The inorganic waste treatment service business generated sales revenue of 40 million yuan in the first three quarters of 2025 [10] Profitability and Cost Structure - The gross margin for the bio-fermented feed business has shown recovery, with Q3 gross margin increasing by 8.88 percentage points to 20.92%. The company incurred a total loss of 21.78 million yuan from new factories in the first three quarters, with losses narrowing in Q3 [10] - The expense ratio increased by 0.7 percentage points to 31.6%, with the sales expense ratio decreasing by 2.4 percentage points to 4.7%, while the management expense ratio rose by 0.2 percentage points to 21.3% [10] Market Position and Future Outlook - The company has successfully entered the supplier lists of several well-known end customers, including New Hope Group and Haida Group, establishing a good market reputation. The production capacity of the bio-fermented feed business has rapidly increased from 50,000 tons/year to 470,000 tons/year [10] - The company is expected to continue facing losses in 2025, with a potential turnaround in 2026, and a projected net profit of 46 million yuan in 2027 [10]