Beijing Dabeinong Technology Group Co., Ltd. (Dabeinong, 002385) (002385)

Equity Research Report | Industry: Agriculture, Forestry, Animal Husbandry & Fisheries: Feed, Seed, Hog Farming and Animal Health | Report Date: September 13, 2026 | Market data as of the close on September 11, 2026; certain technical indicators are snapshots of public pages as of September 10, 2026, and certain moving averages and Bollinger Bands are estimates based on public closing prices from August 14 to September 11, 2026.

This report was automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Dabeinong reported revenue of RMB 13.811 billion in the first half of 2026, up 1.86% year-on-year, but net profit attributable to shareholders was a loss of RMB 677 million, non-GAAP net profit attributable to shareholders was a loss of RMB 656 million, and net cash flow from operating activities was -RMB 1.225 billion. The core reason for the swing from profit to loss was an approximately 30% year-on-year decline in the average selling price of commercial hogs, placing significant pressure on the hog farming business. As of September 11, 2026, the company's share price was RMB 3.37, and given the loss-making status, the traditional P/E ratio does not currently provide meaningful valuation interpretation.

The company's revenue structure remains dominated by feed and hog farming. In 2025, the feed business generated revenue of RMB 18.485 billion, accounting for 63.48% of operating revenue; hog farming revenue was RMB 6.590 billion, accounting for 22.63%; the seed and crop protection businesses combined generated revenue of RMB 1.756 billion, with the seed product gross margin reaching 37.22%, but the current scale is not yet sufficient to offset the impact of hog business volatility and asset impairment. In 2025, the company's net profit attributable to shareholders was a loss of RMB 642 million, with a comprehensive gross margin of approximately 12.75%, and operating quality declined significantly compared with 2024.

The company's medium- to long-term growth logic mainly comes from feed sales volume and cost control, declining farming costs, and the commercialization ramp-up of germplasm resources, transgenic traits and biological breeding businesses. In the first half of 2026, the feed and animal health business generated revenue of RMB 9.509 billion, up 8.51% year-on-year, but the hog farming business generated revenue of RMB 2.992 billion, down 11.99% year-on-year; from January to August 2026, sales volume of commercial fattening hogs increased 23.20% year-on-year, yet sales revenue declined 12.08% year-on-year, indicating that the current volume growth has not yet translated into revenue and profit improvement.

The equity and short-term trading structure remain in a state of change. After the inheritance transfer of the original actual controller's shares, Mo Yun became the controlling shareholder and actual controller, but in September 2026 she pledged 100% of the company shares she holds, and shares cumulatively pledged by important shareholders of the company account for approximately 11.81% of total share capital. The share price retreated to RMB 3.37 after a rapid rally in early September, falling below multiple short-term moving averages, with net capital outflow and shrinking trading volume. In the short term, it remains necessary to observe effective breakthrough or breakdown of the RMB 3.30–3.40 support and the RMB 3.50–3.63 resistance zone.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Feed business: produces pig feed, ruminant feed, aquatic feed and poultry feed; 2025 revenue was RMB 18.485 billion, accounting for 63.48% of operating revenue; sales volume was 5.5534 million tonnes, up 2.74% year-on-year; product gross margin was 12.11%.
• Hog farming business: adopts a combination of a "self-breeding and self-raising" pilot model and a "company + ecological farm" model; 2025 hog farming product revenue was RMB 6.590 billion, accounting for 22.63% of operating revenue; hog sales volume of controlled companies was 4.4596 million head, with period-end inventory of 2.6575 million head.
• Seed business: covers conventional breeding, biological breeding, corn, rice, soybean seed businesses and related crop protection businesses; 2025 seed product revenue was RMB 1.528 billion, accounting for 5.25% of operating revenue; seed and crop protection businesses combined generated revenue of RMB 1.756 billion, accounting for 6.03% of operating revenue.
• Vaccine, veterinary drug and animal health business: includes animal vaccines, veterinary drugs, diagnostic products and animal health products; 2025 vaccine revenue was RMB 148 million and veterinary drug revenue was RMB 196 million; as of the end of 2025, the company held 41 national new veterinary drug certificates.
• The company has formed a dual-mainline layout of "crop technology + animal technology," extending upstream to germplasm resources and biological breeding, and downstream to hog farming and animal health.

2.3 Position in the Industry Chain Upstream and Downstream and Cost-Profit Structure

Dabeinong is an integrated agricultural and animal husbandry technology enterprise with feed as its revenue foundation, extending upstream into germplasm resources and biological breeding, and downstream into hog farming, animal health and vaccines. Its position in the industry chain spans midstream large-scale processing, agricultural biotechnology and downstream farming services.

• The feed business mainly procures energy raw materials such as corn and wheat, protein raw materials such as soybean meal and fishmeal, and additive raw materials such as vitamins and amino acids. In 2025, among the operating costs of feed products, raw material costs were RMB 15.300 billion, accounting for 94.17% of the operating costs of feed products.
• The upstream of the seed business includes germplasm resources, breeding materials and technology platforms; the farming business also involves piglets, breeding pigs, veterinary drugs, vaccines and farming equipment. In 2025, raw material costs of seed products accounted for 92.60% of the operating costs of seed products.
• The company generally lacks significant pricing power over bulk categories such as corn, soybean meal, wheat and hogs, and is more akin to a price taker for raw materials; the company responds to price fluctuations through centralized procurement, diversified procurement, a combination of spot and futures, and hedging, and promotes technologies such as low-protein diets, single-cell protein, microecological preparations and non-soybean meal protein.
• In 2025, the company's top five suppliers accounted for RMB 5.289 billion of procurement, representing 21.50% of total procurement; the single largest supplier accounted for 8.74%. Supplier concentration is lower than the company's dependence on bulk raw material market prices.
• The company's 2024 annual report disclosed that the feed business covers 28 provinces, autonomous regions and municipalities nationwide, with more than 100 production bases and annual production capacity of more than 10 million tonnes; the 2025 annual report did not re-disclose designed production capacity, and this capacity figure should be regarded as the 2024 disclosure basis.
• The downstream of the feed business includes large-scale hog farming enterprises, family farms, cooperative ecological farms, poultry, ruminant and aquatic farmers, as well as distributors and regional farming service networks.
• The downstream of the hog farming business mainly consists of hog traders, intermediaries, slaughterhouses and food processing enterprises; the company's annual report discloses that commercial fattening hogs are usually sold to intermediaries, who then sell them to slaughterhouses or food processing enterprises.
• The downstream of the seed business includes growers, regional distributors, seed cooperation enterprises, farms and agricultural operating entities. The number of seed enterprises cooperating with the company's trait products exceeds 200, adopting an asset-light expansion model of "trait R&D + cooperative seed enterprise promotion."
• In 2025, the company's direct sales revenue was RMB 15.434 billion, accounting for 53.00% of operating revenue; distribution channel revenue was RMB 13.685 billion, accounting for 47.00%, with direct sales and distribution relatively balanced.
• In 2025, the top five customers combined accounted for sales of RMB 1.614 billion, representing 5.54% of total annual sales; the largest customer accounted for 1.73%. In 2024, the top five customers accounted for 5.87%. Customers are relatively dispersed, but feed sales are still affected by regional competition, technical services, credit sales and farmers' operating conditions, and do not reflect absolute downstream bargaining power.
• The price transmission capacity of the feed industry is affected by peer competition, raw material prices and farming prosperity; the hog farming business is affected by hog prices and the hog cycle, and the commercialization capacity of the seed business depends on trait licensing, variety promotion and germplasm resource conversion.
• As of the end of 2025, accounts receivable were RMB 1.177 billion, accounting for 4.01% of total assets; 2025 operating revenue was RMB 29.119 billion, and period-end accounts receivable accounted for approximately 4.04% of annual revenue. Based on public financial indicator compilations, the 2025 accounts receivable turnover ratio was approximately 26.76x and turnover days approximately 13.45 days, but these turnover ratio and turnover days should ultimately be verified based on the company's audited statement calculation basis. The company's 2025 net cash flow from operating activities was RMB 829 million, down 66.62% year-on-year, mainly due to increased cash paid for goods purchased and services received, indicating that changes in raw material procurement, inventory and payables still affect cash flow.
• Customer concentration data are based on the company's 2025 annual report basis, with the top five customers accounting for 5.54%, versus 5.87% in 2024; supplier concentration is based on the 2025 annual report basis, with the top five suppliers accounting for 21.50% and the single largest supplier accounting for 8.74%. The company discloses customer and supplier names anonymously, making it impossible to judge specific customer quality, customer type, or whether suppliers are bulk raw material leaders; there are also statistical basis differences in the 2024 and 2025 hog scale data, so direct year-on-year judgments cannot be made.

Dabeinong occupies a composite position of "midstream large-scale manufacturing + upstream agricultural biotechnology + downstream farming services": feed is a large-scale midstream business, generally affected by bulk raw material prices with limited pricing power; seed and biological breeding are technology-oriented midstream-to-upstream segments with potentially higher gross margins; hog farming amplifies hog cycle volatility. Future profitability improvement mainly depends on feed raw material cost control, upgrading of the pig feed mix, declining hog farming costs, and the commercialization ramp-up of transgenic seed and biological breeding products.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

H1 2026 financial data are as of June 30, 2026; FY2025 data are from the company's 2025 Annual Report. H1 2026 non-GAAP net profit attributable to shareholders was -RMB 656 million, versus RMB 171 million in the same period last year; basic earnings per share was -RMB 0.16, versus RMB 0.05 in the same period last year. FY2025 non-GAAP net profit attributable to shareholders was -RMB 776 million, and basic earnings per share was -RMB 0.15.

In H1 2026, the company's operating revenue grew slightly, but net profit attributable to shareholders swung from a profit of RMB 235 million in the same period last year to a loss of RMB 677 million. The deterioration in performance was mainly due to an approximately 30% year-on-year decline in the average selling price of commercial hogs, which significantly dragged down the hog farming business and overall operating performance. Feed and animal health business revenue was RMB 9.509 billion, up 8.51% year-on-year; hog farming business revenue was RMB 2.992 billion, down 11.99% year-on-year. The company already recorded an annual loss in 2025, affected not only by declining hog prices and farming profitability but also by impairment factors including long-term equity investments, biological assets and goodwill. It should be noted that the "year-on-year decline of 387.52%" in the financial statements is a statistical basis in a situation of prior-year profit and current-period loss, and its actual meaning is that profit turned from positive to negative.

3.2 Earnings Forecast

The main forecast source is the Huaan Securities research report dated September 2, 2026, which is a single brokerage forecast and does not represent consensus expectations of multiple institutions. The corresponding revenue year-on-year growth rates are approximately 8.1%, 7.2% and 3.8%, respectively. Huaan Securities forecasts the company's hog slaughter volume as approximately 8.70 million head in 2026, 9.135 million head in 2027 and 9.592 million head in 2028. Guosen Securities forecast in November 2025 that net profit attributable to shareholders for 2025–2027 would be RMB 260 million, RMB 290 million and RMB 410 million, respectively, corresponding to EPS of RMB 0.06, RMB 0.07 and RMB 0.09, and assigned an "Outperform the Market" rating. Because the Guosen Securities forecast predates the 2026 interim report, it should be used cautiously at this stage.

3.3 Valuation Level and Institutional Ratings

As of the close on September 11, 2026, the company's share price was RMB 3.37, total market capitalization was approximately RMB 14.425 billion, total share capital was approximately 4.280 billion shares, and TTM earnings per share was approximately -RMB 0.36. Because the company has been loss-making over the most recent 12 months, neither the dynamic P/E ratio nor the static P/E ratio has a valid value, and traditional PE valuation is not currently suitable. The platform shows a price-to-book ratio of approximately 1.69–2.11x; based on equity attributable to parent shareholders of approximately RMB 6.864 billion as of June 30, 2026 and total share capital of approximately 4.280 billion shares, net assets per share are approximately RMB 1.60, corresponding to a PB of approximately 2.10x. Based on market capitalization as of September 11, 2026 and annualized H1 2026 operating revenue, the price-to-sales ratio is approximately 0.52x. If 2027 net profit attributable to shareholders reaches the RMB 1.189 billion forecast by Huaan Securities, the current market capitalization corresponds to a 2027 forecast PE of approximately 12.1x; if the RMB 410 million forecast by Guosen Securities is used, it corresponds to a 2027 forecast PE of approximately 35.2x. Historical public target prices are broadly concentrated in the RMB 5.1–6.0 range, but most were formed before the 2026 interim report, and some come from target price aggregation platforms, so they cannot be regarded as the current unified market consensus. The current valuation appeal mainly depends on whether 2027 profit can recover to above RMB 1 billion; key verification indicators include average hog selling price and full cost, quarterly farming profit, feed sales volume and gross margin, transgenic seed sales progress, asset impairment risk and operating cash flow recovery.

4. Recent News and Announcements

4.1 Inheritance Transfer of Original Actual Controller's Shares Continues, Mo Yun Assumes Control

On September 9, 2026, the company disclosed the "Announcement on Progress of the Inheritance Transfer of Shares of the Original Actual Controller." Mr. Shao Genhuo passed away due to illness on February 3, 2026. The number of shares completing this non-trading transfer was 428,119,831 shares, transferred to the names of his spouse, company chairman Ms. Mo Yun, and his minor child Shao XX. After the transfer was completed, Ms. Mo Yun directly held 695,816,123 shares of the company, accounting for 16.26% of total share capital, becoming the company's controlling shareholder and actual controller; the minor child Shao XX directly held 160,423,539 shares, accounting for 3.75% of total share capital. The remaining 71,515,169 shares under Mr. Shao Genhuo's name, accounting for 1.67% of total share capital, are still in pledged status and will undergo inheritance transfer after the pledge is released. The company stated that this share transfer will not have a material adverse impact on production, operations or financial condition. Going forward, it is necessary to monitor progress on the release of pledge and inheritance transfer of the remaining pledged shares, as well as equity stability risk arising from the high pledge ratio of the controlling shareholder's holdings.

4.2 Share Pledges and Release of Pledges by Controlling Shareholder and Concerted Action Persons

On September 5, 2026, the company disclosed the "Announcement on Share Pledges and Release of Pledges by the Controlling Shareholder and Its Concerted Action Persons." The 428,119,831 shares previously pledged by Mr. Shao Genhuo were released from pledge on September 3, 2026, with remaining pledged shares of approximately 71,515,169 shares, accounting for approximately 1.67% of the company's total share capital. After the inheritance arrangement was implemented, Ms. Mo Yun pledged 428,119,831 shares on September 2, 2026, accounting for 100% of the company shares she holds and approximately 10.00% of the company's total share capital. As of September 11, 2026, shareholders of the company had cumulatively pledged approximately 506 million shares, with a pledge ratio of approximately 11.81%. Some pledge ratio data come from third-party equity pledge data platforms, and the specific situation should be based on company announcements and final registration data of China Securities Depository and Clearing Corporation.

4.3 Share Repurchase Progress: Cumulative Repurchase of 1.01 Million Shares, Amount of RMB 3.0338 Million

On September 3, 2026, the company disclosed the "Announcement on Progress of Share Repurchase." The company approved a repurchase plan on May 26, 2026, planning to use its own funds to repurchase shares, intended for future equity incentives or employee stock ownership plans. The total repurchase funds are RMB 50 million to RMB 80 million, the repurchase price shall not exceed RMB 5.70/share, and the repurchase period is within 12 months from the date the board of directors approved the repurchase plan. As of August 31, 2026, the company had cumulatively repurchased 1,010,000 shares, accounting for approximately 0.02% of total share capital; the highest transaction price was RMB 3.01/share, and the lowest transaction price was RMB 3.00/share; cumulative transaction amount was RMB 3,033,800, excluding transaction fees. Based on the upper funding limit, the actual amount used accounts for approximately 3.79% of the repurchase upper limit; based on the lower funding limit, it accounts for approximately 6.07% of the lower limit. The repurchase is still at an early stage.

4.4 Repurchase and Cancellation of Certain Restricted Shares and Reduction of Registered Capital

On September 12, 2026, the company disclosed the "Announcement on Repurchase and Cancellation of Certain Restricted Shares, Reduction of Registered Capital and Notification to Creditors." This matter was approved by the third meeting of the seventh board of directors on August 25, 2026 and the fourth extraordinary shareholders' meeting of 2026 on September 11, 2026. This repurchase and cancellation is intended for 12,000 restricted shares held by An Jun and 32,000 restricted shares held by Xu Maolin, totaling 44,000 shares. After cancellation is completed, the company's total number of shares will change from 4,280,371,965 shares to 4,280,327,965 shares, and registered capital will change from RMB 4,280,371,965 to RMB 4,280,327,965. Creditors may request the company to repay debts or provide corresponding guarantees during the period from September 12, 2026 to October 26, 2026. The impact of this cancellation on total share capital and earnings per share is very small, and it mainly represents the concluding handling of historical equity incentive matters.

4.5 2026 Fourth Extraordinary Shareholders' Meeting Approves Articles Amendment and Capital Reduction Matters

The company disclosed the announcement of resolutions of the 2026 fourth extraordinary shareholders' meeting on September 12, 2026. The shareholders' meeting was held on September 11, 2026, using a combination of on-site voting and online voting, and no proposals were rejected. The meeting approved proposals related to amending the company's articles of association, with core matters including repurchase and cancellation of certain restricted shares, reduction of registered capital and corresponding amendment of the company's articles of association. The current search results do not show that this shareholders' meeting involved mergers and acquisitions, major asset restructuring or new control arrangements.

4.6 Disclosure of August 2026 Commercial Fattening Hog Sales Data

On September 11, 2026, the company disclosed the "Brief Report on Commercial Fattening Hog Sales in August 2026." In August 2026, the company sold 298,600 commercial fattening hogs, achieving sales revenue of RMB 401 million; sales volume increased 24.99% month-on-month and 10.55% year-on-year, sales revenue increased 25.71% month-on-month and decreased 14.50% year-on-year, and the average selling price was RMB 10.95/kg. From January to August 2026, cumulative sales of commercial fattening hogs were 2.6391 million head, up 23.20% year-on-year; cumulative sales revenue was RMB 3.399 billion, down 12.08% year-on-year. The announcement did not disclose per-head profit, full cost or specific hog farming profit, and hog business profitability recovery cannot be judged solely on sales volume.

4.7 Guarantee Progress of the Company and Controlled Subsidiaries, Guarantee Risk Warning Continues

On September 11, 2026, the company disclosed the "Announcement on Guarantee Progress of the Company and Controlled Subsidiaries." The company's actual guarantee balance for entities outside the scope of consolidated statements accounts for 20.22% of net assets; the total external guarantees of the company and its controlled subsidiaries exceed 100% of the latest audited net assets; the guarantee amount exceeds 50% of the company's latest audited net assets; this guarantee involves multiple guaranteed parties whose asset-liability ratios exceed 70%. As of the announcement disclosure date, the company's cumulative overdue amount of guarantees to subsidiaries was RMB 0, but the amount of external overdue guarantees for which subsidiaries have not yet eliminated guarantee liability was RMB 16.1337 million. Going forward, it is necessary to monitor the debt-servicing capacity of high-liability guaranteed parties, guarantee compensation risk and use of guarantee quota.

4.8 2026 Interim Earnings Preview: Expected Loss of RMB 600 Million to RMB 680 Million

The company disclosed the 2026 interim earnings preview on July 15, 2026, expecting net profit attributable to shareholders of the listed company for January to June 2026 to be a loss of RMB 600 million to RMB 680 million, non-GAAP net profit to be a loss of RMB 590 million to RMB 670 million, and basic earnings per share to be a loss of RMB 0.14 to RMB 0.16. The company explained that during the reporting period, sales volumes of seeds, feed and hogs increased year-on-year, and hog farming costs declined year-on-year, but affected by the sluggish hog market price, the average selling price of commercial hogs declined by approximately 30% year-on-year, causing the hog farming business and overall operating performance to swing from profit to loss year-on-year.

4.9 Interim Report Confirms Loss of RMB 677 Million

The company disclosed the 2026 interim report on August 27, 2026. During the reporting period, operating revenue was RMB 13.811 billion, up 1.86% year-on-year; net profit attributable to shareholders of the listed company was a loss of RMB 676.55 million, versus a profit of RMB 235.31 million in the same period last year; non-GAAP net profit was a loss of RMB 655.72 million, versus a profit of RMB 170.63 million in the same period last year; net cash flow from operating activities was -RMB 1.22466 billion, versus RMB 24.1025 million in the same period last year; basic earnings per share was -RMB 0.16. The actual loss amount was within the previously announced earnings preview range.

4.10 No New Major M&A, Major Asset Restructuring or Regulatory Penalty Announcements Found Recently

As of September 13, 2026, searches using keywords such as "002385/Dabeinong + September 2026 + M&A, major asset restructuring, regulatory penalties, policy penalties" found no new major M&A, major asset restructuring or regulatory penalty announcements disclosed by the company in September 2026. However, "not found in search" is not equivalent to absolute non-existence of reports through non-announcement channels or undisclosed matters, and announcement disclosure may be delayed. The core focus points of recent public information include the not yet fully concluded inheritance transfer and assumption of control by the actual controller, the relatively low execution progress of the repurchase plan, pressure on revenue and profit due to declining hog prices, the large scale of external guarantees and the existence of RMB 16.1337 million in external overdue guarantee liability not yet eliminated, and the repurchase and cancellation of restricted shares.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Dabeinong closed at RMB 3.37, showing a short-term structure of "rapid rally—high-level volume expansion—consecutive decline." The share price has fallen below the MA5, MA10 and MA20 shown on public pages, and also below the self-estimated MA5 and MA10, but remains close to the self-estimated 20-day moving average and the Bollinger middle band. MACD still showed a slight positive signal on September 10, but RSI at approximately 41 and Williams %R at approximately -96 indicate weak short-term momentum with oversold characteristics, and technical indicators are not yet sufficient to confirm a trend reversal. On the capital side, main force funds had net outflow on September 10, and margin balance declined from September 8; on September 11, turnover and turnover rate further declined, with price decline accompanied by shrinking volume. Overall, RMB 3.30–3.40 is an important short-term observation area, and RMB 3.50–3.63 is the main rebound resistance area.

5.3 Short-Term Trend Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario analysis based on closing data as of September 11, 2026, does not constitute investment advice, and is not a deterministic forecast of future share price.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately 50% to 60%; a subjective heuristic weight based on the current technical, capital and volume structure, not a statistical probability): price range approximately RMB 3.30–3.55. Trigger conditions are holding the RMB 3.30–3.40 support area, turnover maintained at approximately RMB 400 million to RMB 700 million, and no obvious industry negative news or rapid broader market decline. If this holds, the share price may fluctuate repeatedly between prior support and resistance near RMB 3.50.
• Weaker downside (medium weight, approximately 30%; a subjective heuristic weight, not a statistical probability): price range approximately RMB 3.08–3.30. Trigger conditions are an effective break below RMB 3.30, with single-day turnover re-expanding above RMB 700 million but the close remaining weak, or overall weakness in the agriculture and farming sector with continued net outflow of main force funds. If the RMB 3.08–3.20 area also fails to absorb supply, the price may further test near RMB 3.00.
• Rebound strengthening (relatively low weight, approximately 10% to 20%; a subjective heuristic weight, not a statistical probability): price range approximately RMB 3.50–3.70. Trigger conditions are regaining RMB 3.50 and remaining above RMB 3.55 for at least one consecutive trading day, while turnover expands above RMB 800 million; if it further breaks through the RMB 3.60–3.63 resistance area, the effectiveness of a short-term rebound strengthens. If it only rebounds to around RMB 3.50 on low volume, it is more likely to be a weak bounce.

③ Capital and Liquidity Background

Average turnover over the recent 5 trading days was approximately RMB 685 million, and average trading volume was approximately 194 million shares; on September 11, turnover was approximately RMB 424 million and turnover rate was 3.66%, below the stage highs of approximately RMB 942 million and 7.60% on September 8. The top ten circulating shareholder data as of June 30, 2026 accounted for approximately 14.22% of the circulating float in total, and Tonghuashun rated main force control as low; this data lags by at least one quarter, and the actual chip structure may have changed. The data reflect relatively dispersed chips, and the share price may be relatively sensitive to short-term capital inflows and outflows and sector sentiment; when turnover declines, order absorption and price volatility may become more sensitive to capital flows.

A checkable volume confirmation signal is: if single-day turnover consecutively expands above RMB 800 million in the future, and the closing price stands above RMB 3.50–3.55, this can be regarded as one of the confirmation signals that short-term funds are re-entering; if turnover expands but the close falls below RMB 3.30, it is closer to a signal of high-volume distribution or risk release.

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Observe whether the RMB 3.30–3.40 area can form effective support, and whether a break below RMB 3.30 leads toward the RMB 3.08–3.20 range. The above are observation ideas, not trading instructions.
• Observe whether the RMB 3.50–3.63 resistance area can be broken on expanded volume. The above are observation ideas, not trading instructions.
• Observe whether main force funds shift from the net outflow state on September 10, 2026 to consecutive net inflow, but September 11 main force fund data still lack reliable cross-verification. The above are observation ideas, not trading instructions.
• Observe whether turnover can consecutively reach above RMB 800 million, accompanied by a closing price standing above RMB 3.50–3.55. The above are observation ideas, not trading instructions.

The above scenario analysis is based on closing data as of September 11, 2026 and calculations from historical prices and technical indicators. Short-term share prices will also be affected by multiple factors including news flow, capital conditions and the broader market environment. Technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risk yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The agriculture and animal husbandry industry in which the company operates includes sub-sectors such as feed, hog farming and seed. The feed industry has entered a mature and consolidating stage, with competition focus shifting from simple capacity expansion to raw material procurement, formulation and animal nutrition technology, channel services, large-scale production and digital farming services; hog farming has obvious cyclicality; seed focuses on core competitive factors such as germplasm resources, breeding capability, biological breeding and transgenic traits, variety approval and promotion capability.

6.2 Competitive Landscape

• In 2025, national industrial feed output was 342.253 million tonnes, up 8.6% year-on-year; pig feed output was 166.394 million tonnes, up 15.6% year-on-year. There were 37 feed enterprise groups with annual output of more than one million tonnes, whose combined output accounted for 57.0% of national total feed output.
• In 2024, national industrial feed output was 315.031 million tonnes, with 34 enterprise groups producing more than one million tonnes annually, whose combined output accounted for 55.0% of national total output. Industry concentration is increasing, but there are still many regional and specialized enterprises, and no single leader has yet formed absolute monopoly.
• Core variables in hog farming include breeding sow inventory, hog slaughter volume, hog prices, feed costs, disease and biosecurity. In 2025, national hog slaughter was 719.73 million head, up 2.4% year-on-year; year-end hog inventory was 429.67 million head, up 0.5% year-on-year; breeding sow inventory was 39.61 million head, 101.6% of the normal retention level.
• Large-scale pig enterprises have advantages in procurement, breeding, disease prevention and control, financing and farming efficiency, but hog price fluctuations significantly affect profits. Dabeinong's "company + ecological farm" model may be relatively flexible in capital expenditure and asset investment, while also placing higher demands on cooperative farmer management, biosecurity and benefit distribution mechanisms.
• The technology and compliance thresholds of the seed industry are rising with the advancement of biological breeding industrialization. Dabeinong has a medium- to long-term germplasm resource bank with storage capacity of more than 100,000 samples, and reserves transgenic traits, corn and rice variety resources, but the seed business is still in the process of commercialization ramp-up.

6.3 Major Competitors

Dabeinong, together with Haid Group, New Hope and Tangrenshen, belongs to integrated feed and farming enterprises, but Dabeinong's business mix more prominently features pig feed, seed and biological breeding; compared with Tongwei Co., Ltd., its aquatic industry chain attributes are weaker; compared with Longping High-Tech, Dabeinong's feed and hog businesses are larger, while seed is still in the commercialization ramp-up stage. The company's relative advantages lie in pig front-end feed, germplasm resources, transgenic traits and "crop technology + animal technology" synergy, while current profit is still mainly determined by feed and hog businesses.

7. Risk Warnings

• Hog price downside risk: In H1 2026, the average selling price of commercial hogs declined approximately 30% year-on-year, causing a net loss attributable to shareholders of RMB 677 million; in August 2026, the average selling price was RMB 10.95/kg, and from January to August sales volume increased 23.20% year-on-year but sales revenue declined 12.08% year-on-year. If prices remain sluggish, slaughter growth may not translate into profitability.
• Farming cost and biosecurity risk: The company adopts a combination of a "self-breeding and self-raising" pilot model and a "company + ecological farm" model. Although H1 2026 disclosed a year-on-year decline in hog farming costs, it did not provide specific full cost or per-head profit; if cooperative farm management, biosecurity and disease prevention and control fall short of expectations, farming profit may be further compressed.
• Feed raw material cost risk: In 2025, raw material costs accounted for 94.17% of feed product operating costs, and the company lacks significant pricing power over bulk raw materials such as corn, soybean meal and wheat; if raw material prices rise while feed price transmission is insufficient, feed product gross margin may continue to face pressure.
• Cash flow and impairment risk: In H1 2026, net cash flow from operating activities was -RMB 1.225 billion, and in 2025 it was RMB 829 million, down 66.62% year-on-year; in 2025 the company was also affected by impairments including long-term equity investments, biological assets and goodwill. If procurement, inventory, payables or asset operating conditions deteriorate, cash flow and net profit may continue to be dragged down.
• Seed commercialization below expectations risk: Seed product gross margin in 2025 was 37.22%, but seed product revenue was only RMB 1.528 billion, and seed and crop protection businesses combined generated revenue of RMB 1.756 billion, with business scale still insufficient to hedge hog cycle volatility; if transgenic trait licensing, cooperative seed enterprise promotion, variety approval and market ramp-up fall below expectations, the second growth curve may be difficult to realize.
• Control assumption and equity pledge risk: Mo Yun has become controlling shareholder and actual controller, but approximately 1.67% of shares under the original actual controller's name are still pledged; Mo Yun has pledged 100% of the company shares she holds, and shares cumulatively pledged by important shareholders account for approximately 11.81% of total share capital. Subsequent release of pledges, inheritance transfers and share price fluctuations may affect equity stability.
• External guarantee and debt repayment risk: The total external guarantees of the company and its controlled subsidiaries exceed 100% of the latest audited net assets, and the actual guarantee balance for entities outside the scope of consolidated statements accounts for 20.22% of net assets; some guaranteed parties have asset-liability ratios exceeding 70%, and the external overdue guarantee liability not yet eliminated is RMB 16.1337 million, creating potential compensation pressure.
• Short-term share price and capital flow volatility risk: As of September 11, 2026, the share price was RMB 3.37, below the MA5, MA10 and MA20 shown on public pages; main force funds showed relatively large net outflow on September 10, and on September 11 turnover fell to approximately RMB 424 million and turnover rate fell to 3.66%. If support near RMB 3.30 is lost, technical weakness may continue.

8. Conclusion and Outlook

Dabeinong's business foundation remains relatively complete, forming a dual mainline of crop technology and animal technology: "feed + hog farming + seed and biological breeding + animal health." The feed business has scale and channel foundations, and the seed and biological breeding business has relatively high gross margin and potential growth space; however, the company's current profit is still mainly determined by feed and hog businesses, and changes in hog prices, farming costs and raw material prices have a more direct impact on profitability.

Short-term performance recovery still lacks sufficient verification. H1 2026 already showed a relatively large loss and operating cash flow turning negative; in August, the average selling price of commercial fattening hogs was RMB 10.95/kg, with sales volume growth but year-on-year revenue decline. Therefore, going forward it is necessary to focus on whether commercial hog prices, full cost, farming profit, feed gross margin and operating cash flow can improve in tandem. Huaan Securities forecasts that the company will remain loss-making in 2026 and that net profit attributable to shareholders will recover to RMB 1.189 billion in 2027, but this forecast comes from a single brokerage, and earlier forecasts from other institutions differ significantly from the latest interim report.

Improvement in both valuation and technicals depends on realization of earnings expectations. As of September 11, 2026, the company's market capitalization was approximately RMB 14.425 billion, and traditional PE cannot be used for judgment due to losses over the most recent twelve months; if profit recovers in the future, the market focus will shift to hog business repair and seed commercialization progress. Technically, the share price is close to the RMB 3.30–3.40 observation range, but short-term moving averages, capital flows and trading volume have not yet formed a clear strengthening signal, and control assumption, equity pledges, external guarantees and impairment risks will also affect the market's judgment on the sustainability of profit recovery.

Data Sources

• https://disc.static.szse.cn/disc/disk03/finalpage/2026-04-24/1f964edd-d236-4c27-9c29-d84b3c7d655a.PDF
• Company announcement_Dabeinong: 2024 Annual Report Summary Sina Finance_Sina
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• Dabeinong (002385)_Stock Quotes_Stockstar
• Dabeinong (002385)_Company Announcement_Dabeinong: 2026 Interim Report Sina Finance_Sina
• Dabeinong: 2026 Interim Earnings Preview_Stock Channel_Stockstar
• Dabeinong (002385)_Company Announcement_Dabeinong: 2025 Annual Report Summary Sina Finance_Sina
• Dabeinong (002385)_Company Announcement_Dabeinong: 2025 Annual Audit Report Sina Finance_Sina
• Earnings Forecast
• Securities Research Report | November 02, 2025
• Dabeinong fluctuates in line with the broader market, main force funds net outflow, institutional target price RMB 5.46 - Economic Observer - Professional Financial News Website
• Dabeinong (002385) latest stock price quotes, real-time trend chart, share price analysis and forecast_Investing.com
• Huatai Securities-Dabeinong (002385) 24Q3 turned profitable year-on-year, transgenic potential expected-241023.pdf
• Beijing Dabeinong Technology Group Co Ltd (002385) Historical Prices - Investing.com
• Dabeinong (002385)_Financial Analysis_Stockstar
• Securities abbreviation: Dabeinong Listing venue: Shenzhen Stock Exchange Stock code: 002385
• Dabeinong (002385)_Company Announcement_Dabeinong: Announcement on Progress of the Inheritance Transfer of Shares of the Original Actual Controller Sina Finance_Sina
• Announcement of Beijing Dabeinong Technology Group Co., Ltd. on Share Pledges and Release of Pledges by the Controlling Shareholder and Its Concerted Action Persons_Sina Finance_Sina
• Dabeinong (002385)_Company Announcement_Dabeinong: Announcement on Progress of Share Repurchase Sina Finance_Sina
• Dabeinong (002385)_Company Announcement_Dabeinong: Announcement on Repurchase and Cancellation of Certain Restricted Shares, Reduction of Registered Capital and Notification to Creditors Sina Finance_Sina
• Dabeinong (002385)_Company Announcement_Dabeinong: Announcement of Resolutions of the 2026 Fourth Extraordinary Shareholders' Meeting Sina Finance_Sina
• Dabeinong (002385)_Company Announcement_Dabeinong: Brief Report on Commercial Fattening Hog Sales in August 2026 Sina Finance_Sina
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• Dabeinong fell 4.72%, turnover RMB 594 million, today's main force net inflow -73.2062 million_Sina Finance_Sina
• Dabeinong (002385) Latest Updates_F10_Tonghuashun Financial Services Network

This report was automatically retrieved, compiled and generated by AI based on public channel information, with information as of market data as of the close on September 11, 2026; certain technical indicators are snapshots of public pages as of September 10, 2026, and certain moving averages and Bollinger Bands are estimates based on public closing prices from August 14 to September 11, 2026. There may be timeliness differences, and specific data should be based on the company's official announcements and authoritative data terminals. This report is only for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risk themselves.