Gifore Agricultural Science & Technology Service Co., Ltd. (Gifore Technology) (300022)

Individual Stock Analysis Report | Industry: Agricultural Machinery Distribution and Agricultural Equipment Services | Report Date: September 13, 2026 | As of the close on September 11, 2026; certain shareholder and institutional holdings data as of June 30, 2026, subject to quarterly lag.

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

1. Core Summary

Gifore Technology is currently in a phase of "revenue growth but still weak profitability foundation, with rising expectations for the low-altitude business": in H1 2026, it achieved operating revenue of RMB 1.604 billion, up 9.76% year-over-year, net profit attributable to parent of RMB 5.4948 million, up 35.76% year-over-year, and net profit attributable to parent after deducting non-recurring items of RMB 3.3667 million, up 14.28% year-over-year; however, the full year 2025 still recorded a loss of RMB 31.2191 million, and Q2 2026 net profit attributable to parent was approximately RMB 1.2723 million, significantly weaker than Q1, with the core business profitability recovery not yet fully confirmed.

The company's core remains agricultural machinery distribution and comprehensive services. In 2025, agricultural machinery distribution revenue was RMB 2.346 billion, accounting for 84.82% of operating revenue, while agricultural machinery manufacturing and low-altitude business revenue accounted for 7.18% and 6.00% respectively. As of the end of 2025, the company had 164 directly-operated stores and 1,221 agency dealerships, covering 21 provinces (municipalities) nationwide. Its nationwide, multi-brand channel and after-sales service constitute its main competitive advantages, but the distribution business gross margin is only 9.77%, and overall gross margin has declined from 15.78% in 2023 to 11.72% in 2025.

The low-altitude business is the current primary source of growth expectations. The company recently won the bid for the Sucheng District Low-Altitude Full-Domain Smart Operations Project with a bid amount of approximately RMB 149 million, and led the winning bid for the EPC project of the low-altitude infrastructure and supporting scenario construction project in Zhijiang City, Hubei Province, with a bid amount of RMB 289 million. However, the bid amount does not equate to recognized revenue or profit; the projects still depend on formal contracts, performance progress, payment collection, and subsequent operational capabilities; meanwhile, the company and related parties controlled by the actual controller are expected to carry out drone cooperation not exceeding RMB 200 million, with the actual transaction scale, prices, and profit contribution still pending verification through specific contracts.

As of September 11, 2026, the company's stock price was RMB 7.97, with a total market capitalization of approximately RMB 3.94 billion, below MA5, MA10, and MA20, recently showing a pattern of rallying then pulling back, with shrinking volume and weak consolidation. H1 2026 ROE was only 1.08%. Due to negative rolling net profit, PE-TTM does not have usual reference significance. The current PB of approximately 7.7x to 7.8x more reflects market expectations for the low-altitude business and profit recovery, with a significant gap between valuation and existing profitability.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Agricultural machinery chain sales and services: Adopts direct-operated store formats, direct-operated specialty stores, and agency distribution models, providing agricultural machinery sales, maintenance, installation, training, after-sales service, and overall mechanization solutions.
• High-end specialty agricultural machinery R&D and manufacturing: Primarily conducted by controlling subsidiary Jilin Kangda, with products including no-till precision fertilizing seeders, subsoiling land preparation machines, disc harrows, potato planters, and multi-functional precision seeders.
• Low-altitude business: In 2025, still primarily drone and accessory agency sales, with plans to extend to low-altitude takeoff and landing sites, route networks, low-altitude flight service centers, intelligent service platforms, and application scenario operations.
• Comprehensive agricultural services: Adopts a "1+X+N" three-tier socialized service system, covering plowing, planting, protection, harvesting, drying, storage, processing, and sales, and participates in agricultural service centers and full-process comprehensive agricultural production service projects.
• Cargo vehicle business: Achieved revenue of RMB 55 million in 2025, accounting for 2.00% of operating revenue.

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

Gifore Technology is positioned in the mid-to-downstream of the agricultural machinery industry chain, with its core identity as a nationwide agricultural machinery distribution channel and comprehensive service provider, while extending to agricultural machinery manufacturing through Jilin Kangda and expanding into low-altitude operations and agricultural production services.

• The agricultural machinery distribution business primarily procures complete machines, parts, and related goods from domestic and international agricultural machinery manufacturers, with major brands including Kubota, Yanmar, John Deere, CNH Industrial, Dongfanghong, Weichai Lovol, etc.; the company also holds regional dealership qualifications for agricultural drones from United Aircraft, DJI, and others.
• Procurement models include group catalog management decentralized procurement and decentralized procurement. The company discloses that for similar products, procurement in principle involves no fewer than two suppliers, using fair bidding methods; the company states it has established relatively long-term cooperative relationships with major suppliers and does not have significant dependence on major suppliers.
• The agricultural machinery distribution business is affected by brand authorization, manufacturer commercial policies, procurement prices, and sales rebates. Although it has channel scale and multi-brand agency capabilities, terminal prices are still influenced by manufacturer pricing, regional agency systems, and agricultural machinery subsidy policies, making it closer to channel-type bargaining rather than full pricing power.
• Jilin Kangda's manufacturing business procures steel, plates, pipes, bars, seeding disc blades, fertilizing disc blades, seed meters, subsoiling shovels, forgings, castings, stampings, etc., and purchases electricity and natural gas; a single agricultural implement consists of approximately 2,000+ components, with some important parts produced in-house and the rest mainly resolved through procurement or outsourcing.
• Jilin Kangda's core products have certain barriers in technology, brand, and conservation tillage scenarios, with higher bargaining power than ordinary agricultural machinery dealership business, but still affected by steel prices, general component costs, and market price reduction pressure.
• Downstream customers include farmers, family farms, farmer cooperatives, large-scale agricultural operating entities, local agricultural machinery dealers, as well as local governments, agricultural investment platforms, and agricultural service project investors.
• The direct-operated model directly faces terminal farmers and agricultural operating entities; under the agency model, the company first sells to county and township dealers, who then sell to farmers, cooperatives, and other agricultural operating entities.
• The 2025 targeted issuance review inquiry response discloses that the company's top five customers accounted for approximately 5.06%—10.21% of sales during the reporting period. This data comes from issuance review response materials and has not been cross-verified again with 2025 annual report customer details; specifics should still be based on the company's latest periodic reports.
• The agricultural machinery industry's downstream customers are relatively dispersed, with individual terminal customers being small in scale; demand is affected by grain prices, agricultural operating income, user cash flow, and subsidy policies. Traditional agricultural machinery products face obvious homogeneous competition, and farmers and dealers are relatively sensitive to prices, subsidy disbursement timing, and after-sales service.
• The company enhances customer stickiness through multi-brand agency, cross-regional channels, and after-sales services such as maintenance and training, but finds it difficult to completely escape the impact of terminal price competition and changes in agricultural machinery subsidy policies. The low-altitude business downstream also includes local governments, infrastructure constructors, and operating platforms, currently still in the business expansion and project implementation stage.
• As of December 31, 2025, the company's accounts receivable were RMB 272 million, down 20.43% year-over-year, accounting for approximately 9.8% of operating revenue; prepayments were RMB 206 million, up 44.23% year-over-year, accounting for approximately 7.4% of operating revenue; inventory was RMB 645 million, down 3.23% year-over-year, accounting for approximately 23.3% of operating revenue. The decline in accounts receivable and improvement in operating cash flow indicate strengthened collection management; however, rising prepayments and relatively high inventory proportions indicate that procurement and inventory stages still occupy capital. The 2025 distribution sales inventory turnover ratio was 3.64x, lower than the peer sample average of 5.45x listed in the review response, but that sample simultaneously includes automobile distribution and agricultural machinery manufacturing enterprises, making business structures not fully comparable.
• The company discloses no significant dependence on major suppliers but does not provide specific supplier concentration data in this summary; downstream top five customer sales proportion is approximately 5.06%—10.21%, with data corresponding to the reporting period covered by the issuance review inquiry response, from a single source and not cross-verified with the 2025 annual report; specifics should be based on the company's latest periodic reports.

Gifore Technology is positioned in the mid-to-downstream of the agricultural machinery industry chain, belonging to a mid-stream service provider centered on channels and comprehensive services, rather than an upstream resource-based or high-pricing-power manufacturer. Its revenue is mainly contributed by low-margin agricultural machinery distribution, and profit elasticity mainly comes from distribution store profitability recovery, Jilin Kangda product structure upgrading and manufacturing segment pricing power recovery, and whether low-altitude and agricultural services can transform from project investment into sustainable, replicable operating revenue.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest publicly disclosed periodic report is the 2026 semi-annual report, announced on August 25, 2026. H1 2026 net profit attributable to parent after deducting non-recurring items was RMB 3.3667 million, up 14.28% year-over-year; basic earnings per share RMB 0.0111, up 35.37% year-over-year; weighted average return on equity 1.08%, up 0.33 percentage points from the same period last year. Net cash flow from operating activities during the same period was RMB 102 million, up 358.50% year-over-year. As of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 513 million, up 1.43% from the end of 2025; total assets were RMB 2.259 billion, up 12.49% from the end of 2025.

H1 2026 revenue and net profit attributable to parent grew year-over-year, but the profit scale remains small, and the growth rate of net profit attributable to parent after deducting non-recurring items is lower than that of net profit attributable to parent. Semi-annual non-recurring gains and losses totaled approximately RMB 2.128 million, including government subsidies of approximately RMB 3.58 million, with profit improvement still having some contribution from non-recurring gains. FY 2025 recorded a loss, mainly concentrated in H2; Q2 2026 single-quarter profit was significantly weaker than Q1, and the core business profitability foundation remains weak.

3.2 Profit Forecast

As of August 27, 2026, Hithink data shows that within the past 6 months, a total of 2 institutions conducted 2026 profit forecasts for Gifore Technology, with a small sample size and significant forecast divergence. Southwest Securities, when first initiating coverage in March 2026, estimated 2026 revenue of RMB 3.178 billion, net profit attributable to parent of RMB 6.61 million, and EPS of RMB 0.01; 2027 revenue of RMB 3.678 billion, net profit attributable to parent of RMB 18.67 million, and EPS of RMB 0.04. After the August 2026 interim report review, Southwest Securities adjusted its forecasts to 2026—2028 revenue of RMB 2.97 billion, RMB 3.32 billion, and RMB 3.94 billion, with net profit attributable to parent of RMB 10 million, RMB 50 million, and RMB 80 million. Southwest Securities calculated corresponding PE of 389x, 83x, and 50x based on the stock price at the time of the report. Northeast Securities data is extracted from a public page database and does not display the complete original report text, making reliability lower than directly citing the original research report.

3.3 Valuation Level and Institutional Ratings

As of the close on September 11, 2026, the stock price was RMB 7.97, total market capitalization approximately RMB 3.949 billion, PB approximately 7.69x; Lixinger data as of September 9, 2026 shows PB approximately 7.81x, at approximately the 76.53rd percentile of the historical range, close to the historical 80th percentile of 7.88x, and above the historical median of approximately 6.24x. Due to the FY 2025 net profit attributable to parent loss and the small profit scale in H1 2026, PE-TTM lacks normal reference significance; Futu data shows PE-TTM of approximately -132.83x, and Lixinger also shows a negative P/E ratio. Based on the September 11, 2026 closing price and Southwest Securities' latest forecast EPS, the dynamic PE for 2026—2028 is approximately 398.5x, 79.7x, and 46.9x respectively. The company's H1 2026 ROE was only 1.08%, and the current relatively high PB more reflects market expectations for the low-altitude business, project orders, and future profit recovery, rather than the existing agricultural machinery distribution business's profitability. Institutional forecasts diverge significantly, and public research reports do not provide a verifiable latest target price; if the low-altitude business does not ramp up as expected, the company's current valuation faces significant pullback risk.

4. Recent News and Announcements

4.1 Won Bid for Sucheng District Low-Altitude Full-Domain Smart Operations Project, Project Amount Approximately RMB 149 Million

On August 28, 2026, the company disclosed a bid-winning announcement. As the consortium leader, the company, together with Nanjing LES Information Technology Co., Ltd. and China Tower Corporation Jiangsu Branch, jointly won the bid for the "Sucheng District Low-Altitude Full-Domain Smart Operations System Equipment Procurement and Supporting Services Project." The project bid amount was RMB 148.882 million, with the company responsible for approximately 76.80% of the construction content, corresponding to approximately RMB 114.3475 million. Construction content includes intelligent network infrastructure, low-altitude takeoff and landing facilities, low-altitude smart brain integrated platform, and low-altitude application scenarios. The project still requires signing of formal contracts, and specific implementation progress, revenue recognition, and profitability are uncertain; the consortium bid amount cannot be directly equated to the company's operating revenue or profit.

4.2 Signed Drone Cooperation Framework Agreement with Related Parties, Related-Party Transactions Expected Not to Exceed RMB 200 Million

On August 24, 2026, the company's board of directors approved the cooperation framework agreement and related-party transaction forecast proposal, and disclosed the announcement on August 25. The cooperation counterparties are Wuhu United Aircraft Technology Co., Ltd. and Harbin United Aircraft Technology Co., Ltd., both related parties controlled by the company's actual controller. Cooperation content includes procurement of drone complete machines and accessories, payment of agency distribution deposits, joint utilization of channels and project resources to develop markets, and joint participation in local agriculture-related low-altitude economy projects. The agreement is valid from the effective date until December 31, 2027, with total related-party transactions expected not to exceed RMB 200 million. As of the announcement disclosure date, the company and its subsidiaries had not yet conducted related-party transactions with the above-mentioned related parties. On September 9, 2026, the fifth extraordinary shareholders' meeting of 2026 approved the proposal; related shareholders Anhui Lanshi Enterprise Management Consulting Co., Ltd. and Hubei Shangjing Private Fund Management Co., Ltd.—Shangjing Yewen Yingfeng Phase I Private Securities Investment Fund, holding a total of 97,118,235 shares, approximately 19.65% of the company's total share capital, abstained from voting. This amount is the transaction cap and does not represent realized revenue or profit; actual procurement quantity, prices, order execution, and profit margins are subject to subsequent specific contracts.

4.3 Related Party Operating Data Still in Loss, Cooperation Performance Capability Needs Continuous Observation

Relevant announcements disclose that Wuhu United Aircraft Technology Co., Ltd. had 2025 operating revenue of approximately RMB 101 million and net profit loss of approximately RMB 21.81 million; January—June 2026 operating revenue of approximately RMB 18.55 million and net profit loss of approximately RMB 28.94 million. The above is the related party's own operating data, indicating that the cooperation counterparty is still in the business expansion stage, and the performance capability and profit contribution of subsequent cooperation are uncertain.

4.4 Targeted Issuance of Shares to Specific Objects Approved for Registration by CSRC, Issuance Completion Not Yet Confirmed

On August 7, 2026, the company disclosed that its application for targeted issuance of shares to specific objects received approval for registration from the China Securities Regulatory Commission. According to the previous issuance plan, the maximum number of shares to be issued is 75,688,726 shares; the final issuance number, issuance price, and fundraising scale still need to be determined based on the registration approval, market conditions at the time of issuance, and consultation with the sponsor institution. As of September 13, 2026, no announcement has been found that the company has completed the issuance, payment, and share registration, so this matter remains approved for registration but not yet confirmed as completed. Upon completion of the issuance, total share capital may expand, with dilution effects on earnings per share, equity structure, and original shareholders' shareholding proportions.

4.5 2026 Semi-Annual Report Shows No Share Buyback Implemented

On August 25, 2026, the company disclosed its 2026 semi-annual report, with no share buyback implementation progress during the reporting period, and the relevant section marked "Not Applicable." As of September 13, 2026, no new share buyback plans, buyback proposals, or buyback progress announcements have been found disclosed by the company in August—September 2026. The above conclusion is based on relevant announcement searches and does not mean the company will not introduce a buyback plan in the future.

4.6 Major Shareholders Previously Reduced Combined Shareholding to 5%, No New Major Reduction Announcements Found in August—September

On June 1, 2026, the company disclosed an announcement that Wang Xinming, Wang Hongyan, and their concert party Tibet Shannan Shenyu Venture Capital Management Partnership (Limited Partnership) had shareholding proportion changes reaching 1% integer multiples and declining to 5%. The above shareholders collectively held 24,712,109 shares of the company, with their proportion of total share capital declining from 5.96% to 5.00%. Among them, Wang Xinming directly held 11,764,886 shares, approximately 2.38% of total share capital; Wang Hongyan directly held 12,034,803 shares, approximately 2.44% of total share capital; Tibet Shannan Shenyu held 912,420 shares, approximately 0.18% of total share capital. As of September 13, 2026, among the key August—September 2026 announcements searched, no new concentrated reduction announcements disclosed by this shareholder or other major shareholders were found.

4.7 Company Added Director and Senior Management Departure Management and Interactive Easy Information Review Systems

On August 24, 2026, the company's board of directors approved the "Director and Senior Management Departure Management System" and the "Interactive Easy Platform Information Publication and Reply Internal Review System." The relevant systems regulate director and senior management departure management, as well as Interactive Easy information publication, reply, and internal review processes, belonging to corporate governance and information disclosure standardization matters, with no direct impact on current operating performance.

4.8 No Q3 or Full-Year 2026 Earnings Forecast Disclosed Yet

As of September 13, 2026, no new earnings forecasts, earnings pre-increase, or earnings pre-decrease announcements for Q3 2026 or FY 2026 have been retrieved. The more recent performance information disclosed comes from the 2026 semi-annual report, with H1 2026 net profit attributable to shareholders of the listed company of approximately RMB 5.495 million, up approximately 35.76% year-over-year. This data belongs to semi-annual report data, not an earnings forecast, and cannot directly infer full-year performance. Subsequent attention should be paid to the formal contract and execution of the Sucheng District project, the progress of the targeted issuance and share registration, the actual amount of related-party transactions, the payment collection of low-altitude projects, and the Q3 2026 earnings forecast or periodic report.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Gifore Technology closed at RMB 7.97, approximately 24.3% below the 52-week high of RMB 10.53 and approximately 10.8% above the 52-week low of RMB 7.19, at a relatively low position in the 52-week range. The stock price recently pulled back from RMB 8.40 on August 28 to RMB 7.97, with closing prices declining for four consecutive trading days from September 7 to September 11. The current closing price is below MA5, MA10, and MA20, with short-term moving averages weak; simultaneously near the lower Bollinger band of approximately RMB 7.95, having probed intraday to approximately RMB 7.83. RSI(14) simplified calculation approximately 44, in neutral to weak zone, not yet entering traditional oversold zone. Capital flow as of September 11 still shows main capital net outflow; recent turnover overall below the September 7 phased volume expansion level of approximately RMB 100 million; technical structure has not yet shown a trend reversal signal confirmed by volume.

5.3 Short-Term Trend Outlook (Next Week, Scenario Simulation, For Reference Only)

⚠️ Risk Warning: The following content is solely subjective scenario simulation based on closing data as of September 11, 2026, historical prices, and technical indicators. It does not constitute investment advice and does not represent a deterministic judgment on future stock price direction.

① Key Technical Levels

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

• Oscillating Consolidation (relatively higher subjective weight, approximately 60%; this weight is a heuristic judgment based on current technicals, volume, and capital flow, not a statistical probability): Price range RMB 7.80~8.20. Trigger conditions are turnover maintained at approximately RMB 50 million to RMB 80 million, stock price finding support near RMB 7.80~7.95, but temporarily unable to effectively break through RMB 8.15~8.20, and the broader market and related sectors such as commercial retail and machinery equipment not showing obvious one-sided moves. RSI has not yet entered extreme oversold zone, and capital flow lacks continuous net inflow, possibly first manifesting as weak sideways movement and technical repair.
• Weaker Downside (moderate subjective weight; this weight is a heuristic judgment based on current technicals, volume, and capital flow, not a statistical probability): Price range RMB 7.50~7.85. Trigger conditions are effective break below RMB 7.80~7.95 support zone, with turnover expanding to above RMB 80 million and main capital continuing net outflow, or market risk appetite declining with ChiNext and small-cap stocks weakening in sync. If RMB 7.80 vicinity fails, next observation range is near RMB 7.50, further approaching 52-week low of RMB 7.19; if decline accompanied by volume expansion, selling pressure may be higher than current shrinking-volume consolidation state.
• Rebound Strengthening (relatively lower subjective weight; this weight is a heuristic judgment based on current technicals, volume, and capital flow, not a statistical probability): Price range RMB 8.15~8.40. Trigger conditions are returning above RMB 8.15~8.20, single-day turnover reaching RMB 80 million to RMB 100 million or more, then continuing to break through RMB 8.30~8.40, with main capital turning from net outflow to continuous net inflow, and related low-altitude economy, agricultural machinery, or machinery equipment sectors strengthening in sync. Only when price stands above MA10 and MA20 vicinity and receives volume confirmation is it closer to short-term structure repair; without volume cooperation, single-day rally may still be just a weak rebound.

③ Capital and Liquidity Background

As of September 11, 2026, turnover rate approximately 1.34%, turnover approximately RMB 52 million to RMB 53 million; recent daily turnover mostly between RMB 46 million and RMB 60 million, briefly expanding to approximately RMB 100 million on September 7. Recent price decline was not accompanied by continuous large volume expansion, overall showing shrinking-volume weak consolidation. In terms of shareholder structure, as of June 30, 2026, top ten circulating shareholders collectively held approximately 31.86%, institutions collectively held approximately 24.92%, among which other institutions and sunshine private funds accounted for relatively high proportions, with fund holdings approximately 1.71%. The above data is more than two months old from September 11, and the structure may have changed during the period. Combined with circulating market capitalization of approximately RMB 3.9 billion and daily turnover rate of approximately 1.34%, order book liquidity is at a medium-to-low level; when turnover is insufficient, bid-ask depth may be limited, and the impact of large single orders on intraday prices, slippage, and volatility may expand.

The verifiable volume confirmation signal is: if subsequent single-day turnover continuously reaches RMB 80 million to RMB 100 million or more, turnover rate rises to approximately 2% to 2.5%, and stock price simultaneously stands above RMB 8.15~8.20, it can be regarded as capital participation and technical repair receiving volume confirmation; if turnover continues below RMB 50 million, rebound sustainability and order book support strength still need cautious assessment.

④ Points of Attention (Observation Thoughts Only, Not Operational Instructions)

• Observe whether the stock price can return above the RMB 8.15~8.20 moving average resistance zone; above are observation thoughts, not operational instructions.
• Observe whether the RMB 7.80~7.95 support zone shows stabilization, and whether a break below is accompanied by significant turnover expansion; above are observation thoughts, not operational instructions.
• Observe whether the RMB 8.30~8.40 zone can break through with volume, rather than single-day rally-then-pullback; above are observation thoughts, not operational instructions.
• Observe whether main capital turns from net outflow to net inflow for at least two trading days, and comprehensively judge in conjunction with turnover continuously reaching RMB 80 million to RMB 100 million or more; above are observation thoughts, not operational instructions.

The above scenario simulation is based on September 11, 2026 closing data and historical prices, technical indicator calculations. Short-term stock prices will also be affected by multiple factors including news, capital flows, 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 independently judge based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The agricultural machinery distribution industry has long exhibited "small, scattered, and disordered" characteristics, with competition centered on brand agency rights, regional channels and store networks, terminal prices under subsidy policies, after-sales maintenance and parts supply, and capital and inventory management capabilities. The agricultural machinery manufacturing industry shows structural differentiation: traditional categories face demand pressure and intensified homogeneous competition, while large-scale, intelligent, green agricultural machinery and agricultural drone demand has relatively greater growth potential.

6.2 Competitive Landscape

• The 2018 industry data cited in the company's prospectus indicates that only 23 dealers had sales exceeding RMB 100 million, accounting for less than 10%; the top ten dealers by sales had a combined market share of only 7.74%; dealers with sales below RMB 1 million exceeded 16,000, accounting for 82.21% of all dealers. This data is relatively early and cannot directly represent the latest industry concentration for 2025—2026.
• Apart from a few enterprises such as Gifore Technology, Xinjiang Tiannong Agricultural Machinery, and Jiangsu Suxin, most agricultural machinery dealers operate within provincial or city/county scope, with fewer cross-regional networks.
• Entry barriers in the agricultural machinery distribution industry mainly include brand authorization, sales networks, regional service capabilities, market reputation, and capital investment; regional dealers may still compete through local customer relationships, single-brand resources, and price flexibility.
• The agricultural machinery manufacturing industry faced overall demand pressure in 2025, with traditional agricultural machinery category sales declining and homogeneous competition intensifying; demand for large-scale, intelligent, green agricultural machinery and agricultural drones maintained growth, with industry resources gradually concentrating toward enterprises with stronger technology, brand, and service capabilities.
• Gifore Technology's 2025 agricultural machinery distribution revenue accounted for 84.82%, low-altitude business revenue accounted for 6.00%, with the overall profit model still dominated by low-margin agricultural machinery distribution business; agricultural machinery manufacturing gross margin was 34.45%, higher than agricultural machinery distribution gross margin of 9.77%, but decreased from 45.02% production and sales gross margin in 2023.
• Low-altitude economy competitors include drone manufacturers, low-altitude infrastructure constructors, local state-owned platform companies, and professional operating companies. In April 2026, the company led the winning bid for the EPC project of the low-altitude infrastructure and supporting scenario construction project in Zhijiang City, Hubei Province, with a bid amount of RMB 289 million, but this amount cannot be directly regarded as recognized revenue or profit, still depending on formal contracts, performance progress, and subsequent revenue recognition.

6.3 Major Competitors

Gifore Technology is closer to agricultural machinery distribution and comprehensive service comparable companies with Jiangsu Suxin and Xinjiang Tiannong, while it is mainly comparable with First Tractor, Weima Agricultural Machinery, and Linhai Co. at the agricultural machinery industry chain or product sales level. The company's core assets are cross-regional brand authorizations, store networks, dealer systems, after-sales service capabilities, and customer resources, rather than absolute technical or brand pricing power of a single agricultural machinery product. Its comparative advantages are nationwide, multi-brand, and comprehensive channel services; its main shortcoming is the low gross margin of the distribution business, and it is affected by agricultural machinery manufacturer policies, subsidy policies, terminal demand, and inventory capital occupation.

7. Risk Warnings

• Low-altitude project revenue and profit realization risk: The Sucheng District project bid amount of approximately RMB 149 million and Zhijiang City project bid amount of RMB 289 million cannot be directly equated to the company's recognized revenue or profit, and there remains the possibility of formal contract signing, construction progress, acceptance, payment collection, and profit margins falling short of expectations.
• Related-party transaction and cooperation performance risk: The company plans to carry out drone cooperation not exceeding RMB 200 million with United Aircraft-related entities controlled by the actual controller, but as of the announcement disclosure date, no related transactions have occurred; among them, Wuhu United Aircraft was in a loss state in both 2025 and H1 2026, and cooperation scale, procurement prices, project implementation, and supply performance capability are uncertain.
• Continued weak profitability risk: The company's FY 2025 net profit attributable to parent loss was RMB 31.2191 million, H1 2026 net profit attributable to parent was only RMB 5.4948 million, Q2 single-quarter profit approximately RMB 1.2723 million; simultaneously, FY 2025 overall gross margin declined to 11.72%. If agricultural machinery distribution and manufacturing gross margins continue under pressure, revenue growth may be difficult to convert into stable profit.
• Agricultural machinery distribution demand and policy risk: 84.82% of the company's FY 2025 revenue comes from agricultural machinery distribution, with terminal demand affected by grain prices, agricultural operating income, user cash flow, and agricultural machinery subsidy policies; changes in subsidy disbursement pace, manufacturer commercial policies, or terminal price competition may affect sales scale, rebates, and store profitability.
• Inventory and working capital occupation risk: As of the end of 2025, inventory was RMB 645 million, approximately 23.3% of FY 2025 operating revenue; distribution sales inventory turnover ratio was 3.64x, lower than the peer sample average listed in the review response; prepayments increased 44.23% year-over-year to RMB 206 million. If sales slow or project progress falls short of expectations, capital occupation and inventory impairment pressure may increase.
• Valuation and profitability mismatch risk: As of September 11, 2026, stock price RMB 7.97, PB approximately 7.69x to 7.81x, H1 2026 ROE only 1.08%, and PE-TTM negative; the market has relatively high expectations for the low-altitude business and profit recovery. If projects fail to ramp up as expected or profit forecasts are revised down, valuation may face significant volatility.
• Targeted issuance dilution risk: The company's targeted issuance has been approved for registration, but the issuance number, price, and fundraising scale have not been finalized; if the issuance is completed, total share capital may expand and dilute earnings per share, original shareholders' shareholding proportions, and equity structure.
• Stock price and liquidity volatility risk: As of September 11, 2026, the stock price is below multiple short-term moving averages, main capital overall shows net outflow, daily turnover rate approximately 1.34%, turnover mostly between RMB 46 million and RMB 60 million; when trading volume is insufficient, larger buy and sell orders may amplify price volatility, and technical support and resistance levels may also fail.

8. Conclusion and Outlook

Gifore Technology's growth logic mainly comes from three aspects: revenue stability of the nationwide agricultural machinery channel, product structure and pricing power recovery of Jilin Kangda's agricultural machinery manufacturing business, and expansion of low-altitude infrastructure, drone agency, and agricultural scenario operations. H1 2026 revenue and profit improved year-over-year, with net cash flow from operating activities reaching RMB 102 million and up 358.50% year-over-year, indicating improvement in operating cash flow and collection conditions; however, prepayments rose to RMB 206 million and inventory remained at RMB 645 million, with channel expansion and project advancement still occupying capital.

Future performance elasticity depends on whether low-altitude projects can transform from bid wins and framework cooperation into formal contracts, continuous delivery, and replicable operating revenue, and also on whether agricultural machinery distribution gross margin can stop declining and agricultural machinery manufacturing profitability can recover. Market institutions have significantly divergent revenue and profit forecasts for 2026—2028, and the company has not yet disclosed Q3 or full-year 2026 earnings forecasts, so at this stage it is more appropriate to understand it as being in a business transformation and profitability verification period, rather than a clear reversal of profit trends.

The company has received CSRC approval for registration of targeted issuance of shares to specific objects, but as of September 13, 2026, issuance completion has not been confirmed; if the issuance subsequently lands, share capital expansion may dilute earnings per share and original shareholders' shareholding proportions. Technically, RMB 7.80—7.95 is the recent support observation zone, and RMB 8.15—8.20 and RMB 8.30—8.40 are upper resistance zones, but these price levels only reflect historical prices and indicator states and cannot replace fundamental judgment on project execution, profit quality, and valuation digestion.

Data Sources

• Gifore Agricultural Science & Technology Service Co., Ltd. 2025 Semi-Annual Report Full Text
• https://static.cninfo.com.cn/finalpage/2026-04-15/1225103960.PDF
• https://static.cninfo.com.cn/finalpage/2026-06-29/1225394944.PDF
• Gifore Technology (300022)_Company Announcements_Gifore Technology: Accountant's Reply on Matters Related to the Review Inquiry Letter for Gifore Agricultural Science & Technology Service Co., Ltd.'s Application for Targeted Issuance of Shares to Specific Objects_Sina Finance_Sina.com
• Gifore Technology (300022)_Company Announcements_Gifore Technology: Accountant's Reply on Matters Related to the Review Inquiry Letter for Gifore Agricultural Science & Technology Service Co., Ltd.'s Application for Targeted Issuance of Shares to Specific Objects_Sina Finance_Sina.com
• Stock Abbreviation: 300022 Stock Code: Gifore Technology No.: 2025-037
• https://reportdocs.static.szse.cn/UpFiles/rasinfodisc1/202212/RAS_202212_000184C8C7B9EE3FDD864F58EB6AB63F.pdf
• Gifore Technology (300022)_Company Announcements_Gifore Technology: 2026 Semi-Annual Report Summary_Sina Finance_Sina.com
• Gifore Technology (300022)_Company Announcements_Gifore Technology: 2026 Semi-Annual Report_Sina Finance_Sina.com
• Gifore Technology (300022)_Company Announcements_Gifore Technology: 2025 Annual Report_Sina Finance_Sina.com
• Gifore Technology (300022) Profit Forecast_F10_Hithink Financial Services Network
• www.fxbaogao.com
• Gifore Technology (300022) Profit Forecast_F10_Hithink Financial Services Network
• Southwest Securities-Gifore Technology (300022) Domestic Leading Agricultural Machinery Distribution Chain Enterprise, Introducing New Actual Controller-260327.pdf
• Southwest Securities: Gives Gifore Technology Accumulate Rating_Stock Channel_Stockstar
• Institutional Investment Ratings-Stocks-Sina Finance
• Gifore Agricultural Machinery (300022) Stock Historical Data: Historical Quotes, Prices, Trend Charts_Investing.com
• Gifore Technology (300022) PB Ratio | Valuation | Fundamentals - Lixinger
• Gifore Technology (300022) Stock Price, News, Quotes and Charts - Futu Niuniu
• Securities Code: 300022 Securities Abbreviation: Gifore Technology No.: 2026-076
• Gifore Technology: Announcement on Signing Cooperation Framework Agreement and Related-Party Transaction Forecast_Company Announcements_Daily Must-Read_Stocks_Stockstar
• Gifore Technology (300022) Company Announcements_Sina Finance_Sina.com
• Gifore Technology (300022)_Company Announcements_Gifore Technology: 2026 Semi-Annual Report_Sina Finance_Sina.com
• Gifore Technology (300022)_Company Announcements_Gifore Technology: Announcement on Shareholding Proportion Changes of Shareholders Holding More Than 5% and Their Concert Parties Reaching 1% Integer Multiple and Declining to 5% and Disclosure of Simplified Equity Change Report_Sina Finance_Sina.com
• Gifore Technology (300022)_Stock Quotes_Stockstar
• Gifore Technology (300022) P/E Ratio | Valuation | Fundamentals - Lixinger
• Gifore Technology (300022) Stock Price and News - Google Finance
• Gifore Technology (300022) Individual Stock Analysis_Niucha Zhengu_Hithink Finance
• Gifore Technology (300022.SZ) - Shanghai-Hong Kong Stock Connect Detailed Quotes Detail Quote
• Gifore Agricultural Machinery (300022) Stock Latest Price Quotes, Real-Time Trend Charts, Stock Price Analysis Forecast_Investing.com
• September 11 Gifore Technology Main Capital Net Outflow, Recent 5 Days Oscillating Flat with Broader Market, Valuation Low - Economic Observer Network - Professional Financial News Website
• Gifore Technology (300022) Individual Stock Analysis_Niucha Zhengu_Hithink Finance
• Gifore Technology (300022) Stock Information - Data Platform
• Gifore Technology (300022) Latest Developments_F10_Hithink Financial Services Network

This report is automatically retrieved, compiled, and generated by AI based on public channel information, with information as of the close on September 11, 2026; certain shareholder and institutional holdings data as of June 30, 2026, subject to quarterly lag. There may be timeliness differences; specific data should be based on the company's formal announcements and authoritative data terminals. This report is solely for information compilation and research reference, does not constitute any investment advice, and investors should independently judge and bear investment risks themselves.