Group 1: Importance of Pastoral Development - Pastoral areas hold a strategic position in China's economic and social development, with significant emphasis from the central government on ecological protection and upgrading the livestock industry [1][3] - High-quality development in pastoral regions is crucial for ensuring the effective supply of livestock products, promoting comprehensive economic and social development, and enhancing food security [3][4] Group 2: Economic Highlights and Achievements - The GDP of pastoral regions has shown steady growth, with notable increases in 2024: Xinjiang at 20,534.08 billion yuan (6.1% growth), Tibet at 2,764.94 billion yuan (6.3% growth), and Gansu at 13,002.9 billion yuan (5.8% growth) [6] - Infrastructure improvements have been significant, with Inner Mongolia's infrastructure investment growing by 23.8% in 2024 and Tibet's agricultural fixed asset investment increasing by 21.2% [6] - Livestock production has expanded, with Inner Mongolia's beef output reaching 891,000 tons (14.5% growth) in 2024, and Tibet's livestock population increasing by 389,300 heads [6] Group 3: Policy Measures and Support - A series of policies have been implemented to promote pastoral development, including ecological protection subsidies and support for modern agricultural industry parks [4][5] - Financial support for high-quality livestock development in Inner Mongolia amounts to over 260 million yuan by 2025, while Xinjiang has introduced a transformation plan for grassland livestock from 2023 to 2030 [5] Group 4: Ecological Improvement and Cultural Significance - Grassland ecosystems are vital for the balance of the "grass-livestock-people" system, with improvements in grassland ecology directly impacting livestock health and productivity [8][9] - The restoration of grassland ecology has led to a historical shift from overall degradation to improvement, with an average annual grassland restoration area exceeding 4 million acres since the 14th Five-Year Plan [10][11] Group 5: Technological and Innovative Approaches - The integration of digital technologies, such as AI and satellite monitoring, is transforming traditional pastoral management into a more precise and efficient system [12][18] - Innovative practices in livestock breeding and grassland management are being explored, including the establishment of a breeding system for high-quality forage and livestock [17] Group 6: Cultural Tourism Development - The cultural tourism industry is becoming a key area for economic development in pastoral regions, combining traditional livestock farming with modern tourism and cultural industries [19][20] - The shift from small-scale tourism to comprehensive industry chain development is evident, with initiatives to enhance the experience of visitors and promote local culture [20][22]

Core Viewpoint - Mongcao Ecological has established an integrated industry system of "Conservation, Breeding, Promotion" focusing on grass seed technology innovation, which is crucial for ecological restoration and agricultural development [1][2]. Group 1: Industry System and Research - The company has built a comprehensive "Conservation, Breeding, Promotion" system for grass seed, ensuring high-quality seed sources through a national germplasm resource library and various specialized research institutes [1]. - Over 20 years, the company has collected and preserved more than 2,300 plant germplasm resources and 650,000 soil samples, supporting ecological restoration and agricultural needs [1][2]. Group 2: Technological Innovation and Intellectual Property - The company has developed a robust grass seed breeding technology system, with 295 native plant species selected and 105 proprietary rights for grass varieties, including 7 national plant variety rights [2]. - The company collaborates with universities and research institutions to overcome technical bottlenecks in germplasm identification and genetic editing, enhancing its competitive edge in the market [2]. Group 3: Production and Ecological Solutions - Mongcao Ecological has established 21 grass seed breeding bases across various regions, producing approximately 3,000 tons of seeds annually to meet ecological restoration and forage needs [2]. - The company utilizes ecological big data to provide tailored solutions for land restoration and ecological protection, promoting high-quality development in the grass industry [2].

Core Viewpoint - The company plans to issue A-shares to specific investors, which may dilute immediate returns, and has proposed measures to compensate for this dilution [1][6][12] Financial Impact Analysis - The company conducted a hypothetical analysis of the impact of the share issuance on key financial metrics, which does not constitute a profit forecast [2][3] - The analysis includes three scenarios for the company's net profit in 2025 compared to adjusted 2024 figures, with potential declines or increases of 30% [2][4] - Key financial metrics before and after the issuance are provided, showing changes in net profit and earnings per share [4][5] Issuance Necessity and Reasonableness - The funds raised will be used for projects related to ecological restoration, landscape enhancement, and innovation in grass technology, aligning with the company's core business [6][12] - The issuance is deemed necessary to enhance the company's competitive position and market share [7][12] Project Implementation and Resource Readiness - The company has established a comprehensive talent structure and technical reserves to ensure the successful implementation of the fundraising projects [7][10] - The company has a strong research and innovation capability, with numerous patents and a data platform to support ecological restoration efforts [9][10] Measures to Mitigate Dilution of Immediate Returns - The company will strengthen fundraising management and ensure funds are used appropriately [10][11] - Efforts will be made to expand market reach and select high-quality projects to improve net profit levels [11][12] - The company plans to enhance governance and financial management to optimize shareholder returns [13][14] Commitments from Management and Major Shareholders - All directors and senior management have committed to ensuring the effectiveness of the compensation measures for diluted returns [15][16] - The controlling shareholder has also made commitments to uphold the interests of the company and its investors [15][16]

Group 1: Industry Outlook and Strategic Positioning - The company focuses on grass seed technology innovation and ecological restoration, aligning with national strategies such as the "Three North" project, which aims to combat desertification and improve ecological conditions [1][3][4]. - The grass seed industry is entering a strategic opportunity period due to supportive national policies and increasing market demand, with significant investments made in R&D over the past 20 years [2][5]. - The company is the only listed entity in Inner Mongolia engaged in ecological restoration, positioning it to benefit from historical development opportunities in this sector [4][6]. Group 2: Financial Performance and Growth Drivers - In Q1 2025, the company reported a 28.15% year-on-year increase in revenue, although it still faced a net loss of 16.93 million yuan, indicating challenges in profitability despite revenue growth [6][8]. - The company has won over 80 ecological restoration projects in 2024, with a total value exceeding 2 billion yuan, which is expected to contribute positively to its performance in 2025 [6][7]. - The company emphasizes the importance of credit risk management and has implemented measures to reduce credit impairment losses, which significantly impacted its 2024 performance [7][8]. Group 3: Competitive Advantages and Market Position - The company has established a comprehensive industry chain service system that integrates seed resource protection, breeding, and ecological technology output, enhancing its competitive edge [4][5]. - It has developed a unique ecological restoration model that combines local seed sources with ecological big data, setting it apart from other companies in the sector [4][5]. - The company is actively participating in major ecological projects, leveraging its expertise in arid and semi-arid regions to address challenges such as soil salinization and desertification [4][5][6]. Group 4: Future Prospects and Strategic Initiatives - The company is optimistic about capturing industry growth opportunities and aims to achieve rapid and stable development, with a focus on technological innovation in the grass seed sector [5][8]. - It plans to continue participating in the "Three North" project and other significant ecological initiatives, which are expected to expand its market presence and operational scale [5][6]. - The management is committed to improving financial health by enhancing cash flow management and reducing reliance on credit, with a historical cash flow net inflow of 1.578 billion yuan in 2024 [7][8].