Core Viewpoint - The company, Haida Group, is planning to spin off its subsidiary, Haida International Holdings, for a public listing on the Hong Kong Stock Exchange, aiming to enhance its overseas market share and capitalize on growth opportunities in the feed industry amid increasing competition and pressure in the breeding industry [1][3]. Financial Performance - For the first three quarters of 2025, Haida Group reported a record revenue of 96.094 billion yuan, a year-on-year increase of 13.24%, and a net profit attributable to shareholders of 4.142 billion yuan, up 14.31% year-on-year [1]. - The company's cash flow from operating activities decreased by 35.79% to 5.017 billion yuan, attributed to increased cash payments for goods and services due to business scale growth [1]. - As of the end of Q3, accounts receivable rose significantly by 141.53% to 5.134 billion yuan, with prepayments increasing by 106.24%, reflecting business scale growth and seasonal demand [1]. Quarterly Insights - In Q3 alone, Haida Group achieved a revenue of 37.263 billion yuan, with year-on-year and quarter-on-quarter growth rates exceeding 12% [2]. - The net profit growth rate for Q3 showed a slowdown year-on-year to 0.34%, while the quarter-on-quarter growth rate improved from 5.76% to 10.89% [2]. Product and Market Dynamics - The company’s feed products include various types for livestock and aquaculture, with significant growth in aquaculture feed sales since Q2 2025, driven by improved profitability in aquaculture and a decrease in raw material prices [2]. - Despite a contraction in profitability from pig farming, strong sales growth in aquaculture and domestic pig feed contributed to overall profitability in Q3, with external feed sales estimated to have grown by 15% to 20% year-on-year [2]. Strategic Initiatives - The spin-off of Haida International Holdings is part of a strategy to enhance financing channels and promote overseas business growth, with the company retaining at least 75% ownership for five years post-listing [3]. - Haida Group's overseas revenue reached 8.217 billion yuan in the first half of the year, marking a 15.08% increase, with a 40% rise in external feed sales [3]. Regional Focus - Haida International Holdings will focus on independent operations in Asia (excluding East Asia), Africa, and Latin America, aligning with the company's international development strategy [4]. - Vietnam is identified as the largest overseas market for Haida Group, with projected sales growth of 25% to 30% in 2024, while Indonesia is expected to see over 40% growth [4]. Market Positioning - The company is strategically avoiding the highly competitive East Asian aquaculture feed market, targeting relatively untapped markets in Africa and Latin America, which present lower competition levels compared to domestic markets [5]. - As of the latest closing date, Haida Group's stock price was 61.09 yuan, reflecting a year-to-date increase of 27.32% and a total market capitalization of 101.6 billion yuan [5].