Group 1 - The company held its 54th meeting of the 7th Board of Directors on November 20, 2025, where all procedures complied with relevant regulations [2] - The Board approved the appointment of Beijing Dadi Taihua Accounting Firm as the auditor for the fiscal year 2025, with a total audit fee of 790,000 RMB [2][54] - The company plans to increase the daily related transaction limit with its second largest shareholder, Beijing Yingtai, by 128 million RMB for the year 2025 [3][67] Group 2 - The company will utilize temporarily idle funds for cash management, with a total limit not exceeding 700 million RMB, from January 1, 2026, to December 31, 2026 [4][72] - The company intends to use its capital reserve to cover losses, reducing its surplus reserve to 0 and capital reserve to approximately 261.8 million RMB [6][45] - The company’s subsidiary, Henan Dishen Seed Industry, plans to procure wheat seeds from its second largest shareholder, Huangfan District Industrial Group, for the 2025-2026 production year [7][28] Group 3 - The company will hold its third extraordinary general meeting of shareholders on December 9, 2025, with both onsite and online voting options available [9][10] - The meeting will discuss the approved proposals from the Board, including the appointment of the auditor and the increase in related transaction limits [13][14] - The company emphasizes that all transactions and proposals are conducted in compliance with laws and regulations, ensuring no harm to minority shareholders [67][71]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's profitability is under short-term pressure, but it is expected to recover growth in 2025 [1][7] - The company has faced intense market competition, leading to a decline in revenue from corn and peanut seeds in 2024, but it is focusing on R&D to enhance product quality and market differentiation [7][8] - The financial forecasts have been adjusted downwards for 2025 and 2026 due to competitive pricing pressures in the corn seed industry, but the company is expected to gradually stabilize and grow with the promotion of new varieties [7][8] Financial Summary - Total revenue for 2023 was 534.24 million, projected to decline to 391.21 million in 2024, with a recovery to 437.15 million in 2025 [1][8] - Net profit attributable to shareholders is expected to decrease from 79.42 million in 2023 to 50.44 million in 2024, with a slight recovery to 52.83 million in 2025 [1][8] - The earnings per share (EPS) is projected to be 0.31 in 2024 and 0.32 in 2025, with a P/E ratio of 59.25 and 56.57 respectively [1][8] - The company aims to maintain a gross margin of approximately 27% over the next few years, with net profit margins gradually decreasing from 12.89% in 2024 to 11.56% in 2027 [8]