Summary of Key Points Core Viewpoint - The company, Shenzhen Jinxinnong Technology Co., Ltd., is providing a guarantee of up to 40 million yuan for its subsidiary, Guangzhou Jinnong Modern Agriculture Co., Ltd., to support its business development and procurement of feed from Yinglian Feed (Shanghai) Co., Ltd. The guarantee is set to be effective until May 30, 2032, and can be used on a rolling basis [1][5]. Group 1: Guarantee Details - The total guarantee amount after this transaction will be 304 million yuan, which represents 200.73% of the company's most recent audited net assets [1][7]. - As of June 30, 2025, the actual external guarantee balance of the company and its subsidiaries is 160.91 million yuan, accounting for 106.25% of the most recent audited net assets [1][7]. - The guarantee covers 85.7143% of the principal, interest, penalties, and other costs related to the feed supply agreement [5][6]. Group 2: Subsidiary Information - Guangzhou Jinnong Modern Agriculture Co., Ltd. was established on March 3, 2020, with a registered capital of 47.38 million yuan [3][4]. - The company is primarily engaged in livestock breeding, feed production, and agricultural services [3][4]. - The total assets of Guangzhou Jinnong are reported at 120.96 million yuan, with total liabilities of 89.41 million yuan, resulting in net assets of 31.54 million yuan [4][5]. Group 3: Financial Performance - Guangzhou Jinnong reported a revenue of 10.85 million yuan and a net loss of 1.88 million yuan [5]. - The company has no external guarantees prior to this transaction, and its assets have been used as collateral for bank loans [5][6]. Group 4: Board Opinion - The board believes that the guarantee will facilitate the business expansion of Guangzhou Jinnong, stabilize the supply chain, and reduce costs, aligning with the overall interests of the company [6].

Group 1: Core Breeding and Sales - The company operates three core breeding farms and four binary breeding farms, ranking first nationally in Duroc pig breeding for several years [1] - The company focuses on balanced breeding to improve growth speed and reproductive performance, aiming to shorten the time to market and enhance barn utilization [1] - The company anticipates that the current price of piglets will remain stable until October, with a low likelihood of prices falling below cost during the off-season [1] Group 2: Feed Sales and Market Dynamics - The feed distributor primarily sells pig feed to local smallholders, with sales volume around 1,200 tons per month, peaking at 1,400-1,500 tons [1] - The distributor notes a decline in self-breeding households due to stricter environmental regulations [1] Group 3: Pig Raising and Market Conditions - The contract farmer in Sichuan raises 7,000 pigs across two farms, with a total raising fee of approximately 220 yuan per pig [2] - The farmer highlights significant issues with piglet diarrhea affecting growth rates, leading to a desire for heavier pigs among both smallholders and larger farms [2] - A breeding company with a 200-head boar station believes piglet prices will remain high, with traditional seasonal price increases expected [2] Group 4: Trade and Supply Chain - A trading company focuses on pig trade, moving 5-6 trucks of pigs to slaughterhouses daily, with peak volumes reaching 30-40 trucks [3] - The company observes a stable price for piglets, predicting limited price increases but a potential decline after the end of the second fattening phase [3] - Another trading firm has shifted focus to piglet trade and reports increased supply of heavier pigs post-Qingming Festival, while anticipating a potential price drop for piglets [3] Group 5: Fattening and Market Impact - A company with 10,000 fattening pigs has cleared its stock, with an average weight of 120 kg per pig, and a feed-to-meat ratio of 2.5-2.6 [3] - The company indicates that if prices for second fattening pigs drop below 7 yuan/kg, it will consider restocking or fattening pigs [3] - The company believes that second fattening will significantly impact this year's pig market [3]