FENGLE SEED(000713)2024-11-15 06:37Key Points Industry and Company - Industry: Seed industry, particularly focusing on biotechnology and seed breeding. - Company: Fengle Seed Industry Co., Ltd. Core Views and Arguments - Background and Purpose of Capital Increase: - Policy Support: National policies supporting the revitalization of the seed industry and the promotion of biotechnology. - Capital Market Encouragement: Encouragement of long-term capital investment in the capital market. - Strengthening Financial Position: Enhancing financial strength, improving the ability to serve national strategies, optimizing capital structure, and reducing financial risk. - Investment by State-owned Investment Group (SOG): SOG positioning Fengle Seed as a key platform for agricultural technology innovation and an important platform for industrial operation, capital operation, and resource aggregation. - Investment in Transgenic Traits: SOG's significant investment in transgenic traits, holding shares or controlling most of the important transgenic trait companies. - Investment in Core Biotechnology Enterprises: SOG's full coverage of investments in major domestic core biotechnology enterprises and further strengthening business cooperation through controlling Fengle Seed. - Supporting Company Development: SOG's initiatives to support Fengle Seed's development, including establishing a standardized management mechanism, promoting strategic focus and implementation, and actively promoting business collaboration along the industrial chain. - SOG's Positioning and Standardization of Fengle Seed's Development: - Platform for Agricultural Technology Innovation: Fengle Seed is positioned as an important platform for achieving agricultural technology innovation, focusing on biotechnology and seed breeding. - Industrial Operation and Capital Operation: Fengle Seed is considered an important platform for industrial operation, capital operation, and resource aggregation by SOG. - Contribution to National Food Security: Fengle Seed is committed to becoming a leading agricultural technology company domestically and internationally, contributing to national food security. - SOG's Investments in Transgenic Traits: - Significant Investment: SOG has made significant investments in transgenic traits, holding shares or controlling most of the important transgenic trait companies. - Strategic Efforts: These investments reflect SOG's efforts to promote agricultural modernization and ensure food security. - Potential Synergies through SOG Seed Industry and Subsidiaries: - Full Coverage of Investments: SOG has completed full coverage of investments in major domestic core biotechnology enterprises, including Defense Biotechnology, Liangyuan Biotechnology, Longping Biotechnology, Rui Feng Biotechnology, and Guorui Biotechnology. - Business Cooperation: SOG Seed Industry, after controlling Fengle Seed, further strengthens business cooperation with these core enterprises to improve the quality of various excellent varieties. - Initiatives Taken by SOG after Becoming Controlling Shareholder: - Establishing Management Mechanism: Efforts to establish a standardized management mechanism that can better mobilize employee enthusiasm and improve operational efficiency. - Promoting Strategic Focus and Implementation: Promoting strategic focus and implementation, positioning Fengle Seed as an important link in SOG's biotechnology industry chain, and clarifying the company's positioning and development direction in the overall strategy. - Promoting Business Collaboration: Actively promoting business collaboration along the industrial chain, strengthening scientific and technological innovation and the transformation of scientific research achievements, and better integrating various resources to improve overall competitiveness. - Use of Fundraising Proceeds: - Enhancing Financial Strength and Risk Resistance: Further enhancing the company's financial strength and risk resistance, providing important support for high-quality development and continuous promotion of scientific and technological innovation. - Promoting Scientific and Technological Innovation: Accelerating the research and development of new varieties and improving technology, strengthening market brand promotion and marketing network construction to consolidate industry status and improve market competitiveness. - Future Development Plans: - Continuous Efforts in Scientific and Technological Innovation: Continuous efforts in scientific and technological innovation, continuously improving research and development capabilities, accelerating the research and development of new varieties, and strengthening market promotion and marketing network construction to consolidate industry leadership. - Promoting Industrial Chain Collaboration: Continuing to promote collaboration along the industrial chain, realizing resource integration and optimization, and improving overall competitiveness to achieve sustainable and stable development goals.