Summary of the Conference Call for 康农种业 Company Overview - 康农种业 is focused on the agricultural sector, specifically in the seed industry, with a notable product being 康农玉 8,009, which has rapidly expanded its market presence. Key Points Industry and Product Performance - 康农玉 8,009 has expanded its planting area to over 7 million acres by 2025, primarily in the 黄淮海 region, due to its strong disease resistance and high yield, which is 10%-20% higher than traditional varieties [2][3] - The product has gained market dominance and is now being introduced in the Southwest and Northeast regions [2][5] - The company has shipped over 10 million acres in the first quarter of 2026, exceeding expectations, with a strategy shift to deliver directly to large growers, significantly reducing return risks [2][6] Return Rates and Market Strategy - 康农种业 reported a return rate of 29.88% in 2025, significantly lower than the industry average of 50%-60% in the 黄淮海 market and 70%-80% in the Northeast market [2][7] - The company has implemented measures such as early storage and cold storage of seeds to manage return rates, aiming for a lower rate than the industry average in 2026 [2][8] Product Quality and Market Acceptance - Farmers are increasingly opting for high-quality, disease-resistant seeds during adverse weather conditions, leading to a rise in brand recognition and product acceptance [2][8] - The company is continuously innovating, with new varieties like YD8,219, 红龙 816, and 康农玉 707 being developed to cater to different climatic conditions [2][8] Sales Team and Market Expansion - The sales team in the 黄海 region has expanded to over 20 members, incentivized by a commission-based structure, enhancing sales and brand building [2][9] - The Northeast market is identified as a significant opportunity, with plans to strengthen research and development efforts to establish a strong presence by 2028-2029 [2][10] Inventory Management - Inventory in the Southwest region is being managed effectively, with a strategy to sell new products while clearing out older stock, resulting in manageable inventory pressure [2][11][12] Cost Management - The company has seen a decrease in seed production costs due to reduced planting areas and increased supply, which is expected to enhance profitability [2][13][14] Research and Development Collaboration - 康农种业 collaborates with research institutions for product development, sharing profits based on sales performance, particularly for 康农玉 8,009 [2][15] - The company emphasizes maintaining high levels of R&D investment to adapt to market changes and ensure continuous innovation [2][15]