According to Securities Star, Fubon Technology () issued an announcement on June 12, 2025 that the company held a performance briefing on June 12, 2025.

The specific content is as follows:

Q: How to ensure the continuous investment in technology research and development and the transformation of results, so as to establish the company's leading position in the agricultural microbial industry and further open up the company's development space in the field of agricultural science and technology?

Answer: Hello, dear investors! The company has established a complete R&D innovation guarantee mechanism: 1. Maintain the intensity of R&D investment to ensure continuous breakthroughs in core technologies; 2. Build a collaborative innovation system of "production, education, research and application" and work with top scientific research institutions to research key technologies; 3. Optimize the path of results transformation and accelerate industrialization through demonstration verification and business model innovation. In the field of modern agriculture, the company focuses on the construction of bacterial resource library, the development of efficient fermentation technology and the research of field application technology, forming a complete chain from laboratory to field demonstration. Thank you for your attention and support to the company!

Q: What are the main reasons for the adjuvant business to rise against the trend, and how to continue to expand its market share in the future?

Answer: Hello, dear investors! 1. In 2024, the company's additive business achieved both quality and efficiency growth, with operating income of 902.4701 million yuan, a year-on-year increase of 9.35%. The growth of the additive business is mainly due to the company's grasp of the opportunities of green transformation, and with precision, green, efficient, and eutrophied agrochemical additives as the core, accelerating product innovation and supply chain resilience construction. 2. In the future, the company's additive business will be guided by customer needs and further improve the global integrated operation system of marketing, R&D, production, supply and logistics. In terms of domestic business, the company will use existing customer resources as the basis, relying on the "expert sales" collaboration model and PSC comprehensive service model, promote each business unit to formulate clear sales strategies and product goals, and increase investment in sales and technical resources to quickly seize market share. In terms of overseas business, the company will further increase its efforts to deepen its efforts in the Asian, European, African and former CIS regional markets, continue to expand its market share through strategic layout, and actively explore emerging markets and blank areas to increase global market share. Thank you for your attention and wish you a happy investment!

Q: In the future, agriculture will show trends such as accelerated production modernization, widespread application of smart agriculture, deepening industrial integration, and green and sustainable development. Fubon Technology has formed a series of products and services in the field of digital agriculture around soil, fields, data, crops, and fertilizer distribution, and has also launched biofertilizers, biopesticides and other products in the field of biotechnology. How will the company deepen the integration of digital and biological "dual engine" technologies in the future?

Answer: Hello, dear investors! In the future, the company will continue to rely on the two major carriers of Kangxin Bio and Fubon Xiangyu, the National Biopestic Engineering Technology Research Center and China Agricultural University and other scientific research platforms, focusing on the differentiation path of "water, fertilizer and drug coupling digital technology", and actively launching new generation modern agricultural products such as green and efficient microbial bacteria agents, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode prevention and control, biological fermentation and food additives, to create a comprehensive solution to reduce costs and increase production. The company is also actively building a digital agricultural supporting service model, providing customized solutions to meet customer needs, and comprehensively improving agricultural production efficiency and sustainability. Thank you for your attention and support to the company.

Q: The trends of agricultural capitalization, rejuvenation, de-intermediation and e-commerce are becoming increasingly obvious. A large amount of capital has entered agriculture, and the process of e-commerce of agricultural products has accelerated. As a leading agricultural technology service enterprise, how can Fubon Technology use this trend to optimize the company's business model, strengthen cooperation with capital, open up e-commerce channels, enable the company's products and services to reach the market more efficiently, and enhance the company's brand influence and market share?

Answer: Hello, dear investors! In terms of marketing model, the company will implement the "1 X" strategic marketing model, that is, a new marketing model that uses core customers such as large platform companies and leading planting enterprises ("1") as strategic fulcrum, and through resource integration and channel optimization, it will drive the coordinated development of traditional distributor networks, e-commerce platforms and overseas export business ("X") in a hierarchical manner. Through the "1 X" model, the company provides customers with customized and one-stop comprehensive solutions, and establishes long-term and stable cooperative relationships with customers through precise demand analysis, technical training and field demonstration. This in-depth service model can not only ensure the efficient expansion of core business, but also effectively improve customer satisfaction. At the same time, the company will actively promote global layout and achieve steady expansion of overseas markets through the strategy of integrating international resources and localized marketing models. Thank you for your attention and wish you a happy investment!

Q: The agricultural microbial industry is regarded as an important representative of the new agricultural quality productivity. Fubon Technology has made breakthroughs in the fields of agricultural microbials such as biological nitrogen fixation technology and plans to achieve a 50% replacement of chemical nitrogen fertilizer in the next 3-5 years. What is the company’s specific development plan for the agricultural microbial industry?

Answer: Hello, dear investors! In the field of bioagriculture, the company will continue to rely on the two major carriers of Kangxin Biology and Fubon Xiangyu, the National Biopestics Engineering Technology Research Center and China Agricultural University to strengthen the creation and exploration of bioagriculture application scenarios and focus on business ecology construction. In terms of R&D, the company will integrate sales, market and R&D resources, build a collaborative innovation mechanism, and deeply cultivate the fields of microbial bacteria agents, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode prevention and control, cost reduction and production increase, green planting, etc., and explore new models of efficient R&D. In terms of team building, the company will increase the efforts to attract professional talents, focusing on absorbing elite talents with industry experience and technological innovation capabilities. At the same time, the company will optimize its functional system, strengthen core capabilities such as market research, channel sales technical support and tracking, rapid verification of new products, and demonstration promotion, ensure efficient operation of the team, provide strong support for channel market expansion, and help business continue to grow. In terms of project construction, the company will work with the Hubei Federation of Industry and Commerce, Hubei Academy of Agricultural Sciences, and local government agricultural departments to carry out the "Tianshengdan" million-acre technology assistance project to enhance the influence of the company and its products. At the same time, the company will accelerate the pace of internationalization, establish demonstration fields cooperation with Vietnam, Indonesia, Malaysia and other countries, and promote overseas business development. Thank you for your attention and wish you a happy investment!

Q: Is there a new layout in the regional structure and what are the plans for overseas business expansion?

Answer: Hello, dear investors! The company will further increase its efforts to deepen its efforts in the Asian, European, African and former CIS regional markets, continue to expand its market share through strategic layout, and actively explore emerging markets and blank areas to increase global market share. In 2025, the company's overseas business plans are as follows: 1. In the European market, the company will continue to increase R&D investment, focusing on technological innovation in the fields of biostimulators and nitrogen-fixing microbials, and actively introduce professional talents in this field to further enhance market competitiveness; 2. In the African market, the company will further deepen its employee localization strategy, accelerate the construction and layout of African logistics bases, and continue to expand regional core customer resources to improve localized operational efficiency and market penetration. Consolidate and expand the company's competitive advantage in the African market, and rely on the opportunity of establishing a joint venture with OCP to continue to promote cooperation in technical transformation project delivery, innovative additive research and development, IP, patents and technology licensing, etc.; 3. In the ASEAN market and the former CIS region, the company is actively promoting the layout of the integrated solution of "water, fertilizer and drug coupling digital technology", and plans to form a professional sales team to accurately match regional market demand and further strengthen the company's global competitive advantage. Thank you for your attention and wish you a happy investment!

Q: Is the concept of "Belt and Road" a step forward to repair post-war countries? Which key strategy is in line with the country’s mission?

Answer: Hello, dear investors! 1. The company's business has covered some countries in Europe, Africa, Southeast Asia and other regions along the "Belt and Road". In 2024, the company actively expanded overseas emerging markets and optimized supply chain management with its global integrated layout and flexible market strategies. The overall performance of overseas business has been significantly improved. The company's overseas business is not limited to soil treatment. The company is exporting excellent agrochemical additive products, complete PSC comprehensive service model, leading IP and technical licensing services to overseas customers. 2. The company adheres to the development mission of empowering global agriculture with biological and digital technologies, focuses on the dual-wheel drive of global agricultural modernization transformation of "biotechnology digital technology", and is committed to becoming a world's leading agricultural technology service enterprise. At the moment when we are focusing on promoting high-quality development and comprehensively promoting the construction of a strong country with Chinese-style modernization, the company will actively focus on the strategic goal of "scientific and technological innovation, green development, and return to society", and with the help of key nodes such as agrochemical additives, microbial bacteria agents, oxygen-releasing fertilizers, soil improvement, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode prevention and control, biological fermentation and food additives, digital technology, etc., we will thoroughly implement the "one strategy" - focus on green agricultural development, empower the agricultural industrial chain with science and technology, and promote the company's comprehensive upgrade in the global agricultural field. Thank you for your attention and wish you a happy investment!

Q: In terms of market value management, will we consider stabilizing market confidence and optimizing dividend policies to improve shareholder returns in the future? In addition, in combination with the company's global layout, are there any plans to accelerate the integration of industrial chain resources through strategic mergers and acquisitions or industrial funds to create new value growth points to promote market value improvement?

Answer: Hello, dear investors! 1. If the company has a stock repurchase related plan, it will quickly implement the necessary review process and strictly perform information disclosure responsibilities. 2. The company will continue to promote the external development strategy, focusing on two major business segments: in the fields of agrochemical additives and special fertilizers, the company will focus on investing targets with core R&D capabilities and advanced production facilities, and continuously expand product lines such as special fertilizers, soil conditioners, etc. through mergers and acquisitions, enhance the scale of technical reserves and production capacity, and further enhance market competitiveness; in the modern agricultural sector, the company will adopt a dual-track parallel merger and acquisition strategy. On the one hand, it will focus on seeking technology-based enterprises with advanced achievements in cutting-edge technology fields such as gene editing and biosynthesis, and strengthen the comprehensive solution capabilities of the bio-agricultural sector through technical collaboration. On the other hand, it will continue to pay attention to the Internet of Things, big data analysis and intelligent equipment enterprises that are in line with the company's digital agriculture strategic layout, so as to improve the full-chain digital service system from data collection to intelligent decision-making. All M&A projects will strictly follow the principles of strategic synergy, technical complementarity and financial stability, ensure that the merger and acquisition targets form effective synergy with the company's existing business, and jointly promote the company to move towards a world-leading agricultural technology service enterprise. Thank you for your attention and wish you a happy investment!

Q: Hello, Dear Chairman. The company's performance in the first quarter of 2025 has declined. I would like to ask the management how to view this situation and its overall planning for 2025.

Answer: Hello, dear investors! Thank you for your attention to the company. Due to the early arrival of the Spring Festival holiday in 2025, some customers suspended work and had earlier than in previous years, and demand for products during the period decreased compared with previous years. At the same time, due to the decline in prices of nitrogen, phosphorus and potassium raw materials at the end of 2024, the wait-and-see mood of downstream fertilizer companies in procurement has increased, and the pace of construction has been delayed. After evaluation, the company believes that the above impact is within the scope of short-term volatility and is expected to gradually improve as the results of strategic adjustments emerge. In 2025, the company will focus on the strategic goal of "scientific and technological innovation, green development, and return to society" and focus on promoting three major development directions: First, promote product upgrades and transformation, and achieve a leap forward from traditional fertilizer additives to green, multi-nutrition, and multi-functional agrochemical additives; Second, focus on the core goal of "reducing costs and increasing production", and take the comprehensive solution of water, fertilizer and drug coupling as a breakthrough to drive the market expansion of innovative products such as microbial fertilizers, oxygen-releasing fertilizers and microbial products; Third, deepen the "going out" strategy and focus on the Southeast Asia, the CIS and African markets. The company will rely on its core technical advantages in agrochemical additives, microbial bacteria agents, biological fertilizers, biopesticides and other fields, combine digital technology application, fully implement the "Agricultural Green Development Strategy" and continuously enhance its competitiveness in the global agricultural industry chain. Thank you for your attention and wish you a happy investment!

Q: Are there any acquisition plans in the future? What is the purpose of the transfer of the second largest shareholder at present? How to ensure growth in the second quarter? Did foreign business grow in the second quarter?

Answer: Hello, dear investors! 1. In the future, the company will actively explore strategic mergers and acquisitions around the world, focusing on two major business segments: in the fields of agrochemical additives and special fertilizers, all mergers and acquisition projects will strictly follow the principles of strategic synergy, technical complementarity and financial stability, ensure that the merger and acquisition targets form effective synergy with the company's existing business, and jointly promote the company to move towards a leading agricultural technology service enterprise in the world; 2. This equity change belongs to the change of the upper-level equity structure of Hong Kong, which will not cause changes to the company's controlling shareholder and actual controller, will not cause changes to the company's business structure, and will not have an adverse impact on the company's business activities; 3. The second quarter has not yet ended. Regarding the company's relevant operating conditions, please pay attention to the company's subsequent announcements. Thank you for your attention and support to the company, and I wish you a happy investment!

Q: The management is good. What management and monitoring measures are planned to take for the company's new goodwill that may arise in future mergers and acquisitions to effectively prevent and control its impairment risks and avoid having a significant impact on its financial status and operating performance?

Answer: Hello, dear investors! Regarding goodwill impairment matters, the company adheres to the principle of prudence and conducts impairment tests on the goodwill corresponding to each asset group at the end of each year in accordance with the requirements of Chinese accounting standards and relevant laws and regulations. It will determine whether goodwill impairment is required according to the test results. Thank you for your attention to the company and wish you a happy investment!

Q: The company’s current dividend strategy and whether there are medium-term dividend arrangements?

Answer: Hello, dear investors! The company reviewed and approved the "2024 Annual Profit Distribution Plan" at the 2024 Annual Shareholders' Meeting held on May 15, 2025, and completed the equity distribution on May 30, 2025. The equity distribution strategy is: based on the total number of company's share capital of 289,057,018 shares as the base, and pay a cash dividend of 0.70 yuan (including tax) to all shareholders for every 10 shares, and pay a total of 20,233,991.26 yuan (including tax) to pay a bonus, and no capital increase is transferred to the capital reserve fund, and the remaining undistributed profits will be carried over to the distribution in the future. At present, the company has no interim dividend arrangements. Thank you for your attention and wish you a happy investment!

Q: The company's overseas business layout is in Europe and Africa. Is there any risk impact on exchange rate fluctuations?

Answer: Hello, dear investors! The company's procurement and sales of its European and African businesses are settled in local currencies, and the risk of foreign exchange transactions is relatively small; due to the fluctuations in exchange rates of major currencies such as the US dollar and the euro, it may lead to the risk of foreign currency conversion. Thank you for your attention and wish you a happy investment!

Q: The current company's market value is not in line with the industry status of the "Global Fertilizer Additives Invisible Champion" and the potential of innovative businesses such as bionitrogen fixation and digital agriculture. At the level of brand building, in addition to the display of existing technical achievements, will a series of brand communication activities be planned around core strategies such as the replacement of chemical nitrogen fertilizers in the agricultural microbial industry and the implementation of smart agricultural solutions to strengthen the capital market's expectations for the company's future growth space?

Answer: Hello, dear investors! The company's market value performance is affected by multiple factors. In addition to being affected by phased performance, it will also be affected by external factors such as the market, macroeconomics, and industries. The company attaches great importance to market value management with corporate value as the core, continuously strengthens the integration and sorting of existing businesses, continuously improves the profitability of traditional advantageous businesses, and strives to enhance the company's market value. In addition to focusing on business development, the company actively participates in industry expos such as agriculture and fertilizers, explores cooperation channels with companies in the same industry, and transforms the industry status of "Global Fertilizer Additives Invisible Champion" into perceived value recognition by end users, and ultimately promotes the dynamic matching of the company's market value and product competitiveness. Thank you for your attention and wish you a happy investment!

Q: How to accelerate the implementation of smart agriculture scenarios, promote green and sustainable development of agriculture, and thus enhance the company's core competitiveness in the future agricultural market?

Answer: Hello, dear investors! The company adheres to the principle of "technology-driven and steady layout" and will start from the following directions: 1. Taking "digital biological" technology as the core driving force, combined with the differentiated path of "water, fertilizer and drug coupling digital technology", we will create a comprehensive solution for "reducing costs and increasing production"; 2. With the help of the cooperation model of maternity, academia and research, we will actively arrange verification demonstration tests nationwide to form a complete technical verification chain from laboratory research and development to regional experiments. At present, the company has deployed technical demonstration projects in many regions across the country. Thank you for your attention and wish you a happy investment!

Q: According to the "China Agricultural Outlook Report (2025-2034)", China's new agricultural productivity will usher in a systematic breakthrough in the next 10 years, with grain yields expected to increase by 7.8%, and agricultural product consumption continues to upgrade. Against this background, how can Fubon Technology further leverage its advantages in core business sectors such as fertilizer additives, bioagriculture, and digital agriculture to expand the company's development space in the agricultural industry chain?

Answer: Hello, dear investors! Based on the trend of upgrading the agricultural industry, the company will focus on promoting the following strategic layout: 1. The company's agrochemical additives and special fertilizer business focuses on the comprehensive service model of "water, fertilizer and drug coupling digital technology", and focuses on the product series of special fertilizers for cash crops, soil improvement agents, new agrochemical additives, and continues to build a formula system that meets customer customized needs; 2. The company's bio-agricultural sector focuses on the fields of microbial bacteria, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode prevention and control, biofermentation and food additives, and promotes the full-chain R&D system of "sperm screening-fermentation process-field application". The large-scale application of bio-biological agricultural products in major agricultural production areas has created a green planting solution for customers to "reduce costs and increase production" to help the sustainable development of agriculture; 3. The company's digital agricultural sector takes "data-driven intelligent decision-making" as its core strategy, and continues to explore and layout agricultural big data, agricultural Internet of Things, and intelligent sensors around the digital agricultural sector around the world, providing new agricultural operators with full-process products and services based on the planting side, including soil detection and evaluation, scientific planting planning, intelligent drip irrigation decision-making, water and fertilizer integration, crop estimation and analysis, online planting management, plantation hosting services and other full-process products and services, effectively promoting the transformation of agricultural production to precision and intelligence. Thank you for your attention and support to the company.

Q: The country vigorously promotes agricultural strategic layouts such as "three rights separation", "rural revitalization", and "zero growth of fertilizers and pesticides". These policies have had a profound impact on the agricultural industrial structure and market demand. In terms of business expansion and technological innovation, how will Fubon Technology closely adjust and optimize these strategic layouts and seize policy opportunities to achieve a new round of growth of the company?

Answer: Hello, dear investors! In terms of project expansion, the company will actively focus on the strategic goal of "scientific and technological innovation, green development, and return to society", and with the help of key nodes such as agrochemical additives, microbial bacteria agents, oxygen-releasing fertilizers, soil improvement, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode prevention and control, biological fermentation and food additives, digital technology, etc., to thoroughly implement the "one strategy" - focus on green agricultural development, empower the agricultural industry chain with science and technology, and promote the company's comprehensive upgrade in the global agricultural field. In terms of technological innovation, the company will continue to optimize the dual-wheel drive technology system of "biology digital", strengthen the coordinated docking of policy research and market demand, and continue to carry out technical demonstrations with the help of the maternity-university-research model to seize development opportunities in the process of agricultural modernization. Thank you for your attention and support to the company.

Q: What is the current situation of orders and capacity utilization in hand?

Answer: Hello, dear investors! The company's current orders and capacity utilization are normal. Please check the company's specific capacity utilization of its main products on April 23, 2025. Thank you for your attention and wish you a happy investment!

Q: Hello, Chairman, the company is working hard to build modern agriculture. I would like to ask what are the relevant digital agriculture supporting services?

Answer: Hello, dear investors! The company helps improve the overall efficiency of the planting chain by introducing advanced foreign agricultural smart equipment. It has outstanding advantages in digital agriculture fields such as digital soil testing and fertilizer distribution, intelligent water and fertilizer integrated management technology, and orchard yield estimation technology. The main layouts are: 1. "Soil detection & soil big data CMA AI": including scientific soil extraction planning, rapid detection and rigorous analysis services; 2. "Precise irrigation of water AI": Through the study of crop stem water potential, the reasonable range of crop stem water potential is determined in different growth cycles and times, and the stem water potential of the entity is sensed and obtained through stem water potential sensors, thereby achieving accurate irrigation of fruit trees; 3. "Performance Estimation AI": By introducing hyperspectral scanning technology, it is possible to judge fruit yield and corresponding fruit stem intervals in advance to assist in the standardization of the supply chain. In order to explore and realize the development and implementation of the company's digital agriculture strategy, the company has established multiple agricultural smart equipment demonstration bases, including digital agricultural greenhouses. In the future, the company will make full use of its long-term industry experience and technical accumulation in the agricultural field, actively promote various agricultural intelligent equipment in China, and promote the development and application of artificial intelligence and robots in agriculture through agricultural big data and an integrated platform integrating digital agricultural resources. The above investments may be at risk of not meeting expectations. Investors are advised to pay attention to the company's relevant announcements and make rational decisions. Thank you for your attention and wish you a happy investment!

Q: Hello, Secretary of the Board, I learned that the operating income of your company's digital agriculture sector has increased. What are the company's related business layouts in the future and what is the company's future development strategy?

Answer: Hello, dear investors! The company focuses on the modern agricultural ecology and relies on the supporting services of bio-agriculture and digital agriculture to newly deploy modern agricultural businesses. It hopes to use key nodes such as microbial bacterial agents, biological fertilizers and grass nitrogen fixation, biological pesticides and root knot nematode control, bio-fermentation and food additives, and digital technology to promote the modern transformation of the planting industry chain. In 2024, the company has been deeply engaged in the modern agricultural field and successfully built a closed loop of the entire industrial chain from "sperm breeding" to "formulation products", achieving operating income of 206.6071 million yuan, a year-on-year increase of 169.05%. |In the future, the company will continue to deepen the innovative model of "water, fertilizer and drug coupling digital technology", comprehensively upgrade the intelligent and precise control system, relying on intelligent sensors, big data analysis and precise control technology to realize real-time monitoring and dynamic regulation of crop growth environment, and ensure efficient use of resources. At the same time, the company will further optimize the in-depth customized services of "one household, one policy", combine biotechnology and digital technology to provide customers with a full-process solution from soil detection to harvest, accurately meeting the personalized needs of different crops and growth stages. In addition, the company will continue to promote the green transformation of modern agricultural products, reduce environmental pollution through precise fertilization and drug reduction to increase efficiency, and help the sustainable development of agriculture. The company is committed to providing large agricultural planting enterprises with comprehensive solutions to reduce costs and increase production through technological innovation and service upgrades, and promoting agriculture to move towards intelligence, greenness and efficiency. Thank you for your attention and wish you a happy investment!

Q: Hello, Secretary to the Board, what is the company's operating conditions in 2024? Has overseas business met expectations?

Answer: Hello, dear investors! In 2024, the company achieved overall operating income of 1235.0748 million yuan, an increase of 17.79% year-on-year; of which domestic operating income of 673.318 million yuan, an increase of 19.21% year-on-year; overseas operating income of 561.7568 million yuan, an increase of 16.13% year-on-year; net profit attributable to shareholders of listed companies was 93.5903 million yuan, an increase of 30.81% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 87.9152 million yuan, an increase of 23.91% year-on-year. The company achieved operating income of RMB 561.7568 million overseas, an increase of 16.13% year-on-year, accounting for 45.48% of the overall revenue; in the future, the company will continue to deepen its global strategic layout, continuously improve its operating quality and profitability, and create greater value for investors. Thank you for your attention and support to the company, and I wish you a happy investment!

Fubon Technology () main business: agrochemical additives and fertilizers business, biological agriculture business and digital agriculture business.

Fubon Technology's first quarter report for 2025 showed that the company's main business income was 305 million yuan, a year-on-year decrease of 3.44%; net profit attributable to shareholders was 23.123 million yuan, a year-on-year decrease of 11.75%; net profit excluding non-operating items was 21.6844 million yuan, a year-on-year decrease of 13.21%; debt ratio was 27.68%, investment income was 454,800 yuan, financial expenses were 2.0416 million yuan, and gross profit margin was 25.39%.

In the past 90 days, 2 institutions have given ratings for the stock and 2 buy ratings; the average target price of institutions in the past 90 days is 10.71.

The following are detailed profit forecast information:

The above content is compiled by Securities Star based on public information and is generated by AI algorithm (Internet Information Calculation Number), and does not constitute investment advice.