Group 1: Company Performance - In the first three quarters of 2025, the company achieved an operating income of approximately CNY 3.67 billion and a net profit attributable to shareholders of about CNY 298 million [2] - The livestock segment generated approximately CNY 2.90 billion in revenue and a net profit of around CNY 308 million during the same period [2] - The company's production operations are stable, with a focus on cost reduction and improving production performance in the pig farming business [2] Group 2: Business Models and Strategies - The pig farming business primarily adopts a self-breeding and self-raising model, which has strong risk resistance despite the current low pig price market [2] - The IP business is being developed through a light asset model, with plans to complete the core industry chain by the end of the year [3] - The real estate business is currently focused on selling existing inventory, with recent improvements in property sales positively impacting cash flow [2] Group 3: Financial Health - As of the end of Q3 2025, the company's debt-to-asset ratio was 59.2%, a decrease of 1.05% from the end of the previous year [3] - The company maintains a positive cash flow from its livestock operations, which supports healthy financial development [3] Group 4: Shareholder Relations - The controlling shareholder holds a significant stake of 52.82% as of November 22, 2025, and plans to continue supporting the company's development [2] - The recent share reduction plan by the controlling shareholder is based on personal funding needs and does not affect the stability of company control [2] - According to new regulations, the buyer of shares from a major shareholder through block trading cannot sell those shares within six months [3]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a revenue of 3.67 billion yuan for the first three quarters of 2025, a year-on-year decrease of 20.12%, and a net profit attributable to shareholders of 298 million yuan, down 50.50% year-on-year [2] - The decline in performance is primarily attributed to falling pig prices and the real estate sector's transition to inventory clearance, although the core breeding business remains resilient [3] - The company has optimized breeding costs, with the overall cost of pig breeding reduced to approximately 13.3 yuan/kg by the end of August 2025, maintaining profitability despite declining sales prices [4] - The real estate business is being steadily cleared, with inventory at 590 million yuan as of June 2025, while a new business initiative in trendy fashion and art IP is expected to open new growth avenues [5] - The company plans to increase pig output to approximately 2.3 million heads in 2025, with a focus on improving production efficiency and disease prevention [6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 3.67 billion yuan, down 20.12% year-on-year, and a net profit of 298 million yuan, down 50.50% year-on-year [2] - The third quarter alone saw a revenue of 1.28 billion yuan, a decrease of 32.25% year-on-year, and a net profit of 71.76 million yuan, down 80.41% year-on-year [2] Business Analysis - The core breeding business showed resilience despite market challenges, with revenue from breeding activities at approximately 2.9 billion yuan, a decline of 1.86% year-on-year, and a net profit of about 308 million yuan, down 26.29% year-on-year [3] - The company has maintained a competitive edge in cost control, with breeding costs decreasing consistently [4] Strategic Outlook - The real estate business is undergoing planned inventory clearance, with remaining inventory valued at 590 million yuan as of June 2025 [5] - The new IP business launched in May 2025 is expected to create a second growth curve for the company [5] - The company has set a target of 2.3 million pigs for 2025, with a focus on enhancing production performance and disease management [6] Earnings Forecast - Revenue projections for 2025-2027 have been adjusted to 7.25 billion yuan, 9.37 billion yuan, and 11.88 billion yuan, respectively, with net profit estimates revised to 257 million yuan, 790 million yuan, and 966 million yuan [6]

Core Viewpoint - The swine industry is undergoing a cyclical adjustment, with 京基智农 maintaining stable operations through cost reduction and efficiency enhancement strategies, as evidenced by its Q3 report showing revenue of 3.67 billion and net profit of 298 million [1] Group 1: Financial Performance - In the first three quarters of 2025, 京基智农 achieved a total revenue of 3.67 billion, with a net profit of 298 million, demonstrating resilience during the industry's adjustment period [1] - The company reported a cumulative sales volume of 1.6757 million pigs from January to September 2025, a year-on-year increase of 2.53%, while sales revenue slightly decreased by 1.52% to 2.846 billion [2] - Financial expenses were significantly reduced by 32.89%, indicating an optimization of the financial structure [3] Group 2: Industry Context - The swine market is currently facing supply-demand mismatches, with most listed pig companies reporting increased output but decreased sales revenue and average prices [2] - The average trading price of external three pigs in October fluctuated between 10 to 12 yuan per kilogram, below the cost line for many farming entities [2] Group 3: Operational Strategies - 京基智农 is focusing on cost reduction and efficiency improvement by enhancing pig herd health through serum domestication and optimizing feed formulations [3] - The company employs an advanced "6750" standardized production line and smart farming systems to improve disease prevention and production efficiency [4] - 京基智农 is expanding its contract fattening business, providing comprehensive support to partner farmers, which has led to a high survival rate of 98% among excellent farmers [4] Group 4: Innovation and Sustainability - The company collaborates with the Guangdong Academy of Agricultural Sciences to develop fermentation technology, converting by-products from pineapple processing into high-quality feed, resulting in a 5% to 10% increase in daily weight gain for pigs [4] - The use of fermented pineapple feed has reduced feed costs by over 10 yuan per ton, saving more than 10 million annually and generating over 3 million in local revenue [4] - Future plans include extending similar technologies to other local fruit by-products, enhancing the coverage of green circular agriculture [5] Group 5: Industry Outlook - 京基智农's innovative farming models and refined management practices not only strengthen its resilience but also serve as a model for the industry [6] - As the industry undergoes capacity reduction, the company is positioned to navigate cyclical fluctuations effectively, reinforcing its leadership in the Guangdong-Hong Kong-Macao Greater Bay Area [6]