GF SEC: The corn seed industry is entering the destocking stage. Policies are promoting the high-quality development of the industry.

GF SEC released a research report stating that the overall inventory of the seed industry is also relatively high. In the third quarter of 2025, the total inventory of listed seed companies exceeded 12 billion yuan, the highest point since 2015. The seed production area in 2025 was 3.85 million acres, a 10% decrease compared to the previous year; the seed production was 1.527 billion kilograms, a 10% decrease compared to the previous year. The seed industry is in the destocking stage, and its business climate is expected to gradually bottom out and rebound. In the 2025 crop variety national review, a total of 1,564 varieties were approved, which is basically the same as in 2024, with a significant decrease in the number of approved corn varieties. Policies promoting breeding innovation are optimistic about leading companies with research and development advantages. The main views of GF SEC are as follows: Seed industry cycle is at the bottom, currently in the destocking stage From 2021 to the third quarter of 2025, the total net profit attributable to the parent company of listed seed companies was only positive in 2023, and in the third quarter of 2025, the total net profit attributable to the parent company of the industry was close to -1 billion yuan, with a significant loss. The overall inventory of the industry is also relatively high, with the total inventory of listed seed companies in the third quarter of 2025 exceeding 12 billion yuan, the highest point since 2015. After 2023, the area of corn seed production continued to decline, with the area of seed production in 2025 being 3.85 million acres, a 10% decrease year-on-year; the seed production was 1.527 billion kilograms, a 10% decrease year-on-year. The corn seed industry is in the destocking stage. Policies encourage breeding innovation, with a gradual decrease in the number of approved corn varieties In April 2025, the newly revised "Regulations on the Protection of New Varieties of Plants of the People's Republic of China" were announced. The "Regulations" elaborate and expand the rights content of variety rights, make arrangements for the implementation of substantive derived variety systems, clarify the priority of rights attribution agreements, and extend the term of protection of variety rights. The most important thing is that the substantive derived variety (EDV) system has been formally elevated to the level of administrative regulations, effectively strengthening the protection of variety rights and encouraging breeding innovation. In the 2025 national crop variety review, a total of 1,564 varieties were approved, which is basically the same as in 2024, with a significant decrease in the number of approved corn varieties. Rice: The number of new high-yielding green and resistant varieties continues to increase The number of "three good varieties" with high yield, good quality, and green (disease-resistant) characteristics in 2022-25 were 22, 28, 31, and 53, respectively. According to the announcement of Yuan Longping High-Tech Agriculture on January 5, 2026, the comprehensive traits of its new rice varieties have been significantly improved: varieties such as Jumbo 6 and Jumbo 5287 have increased yields by more than 5% in field trials and have characteristics such as moderate resistance to rice blast and resistance to rice planthopper, with rice quality reaching the national standard Grade 3 or above. The Morningfront and Lingfeng series of early-maturing and early-ripening three-line medium rice varieties were approved by the state for the first time, filling the gap in the company's variety portfolio. Corn: Emphasis on increasing planting density and yield level Both the 2025 Corn Spring Planting Production Technology Opinion from the Ministry of Agriculture and the Huanghuai Sea Summer Corn Drought-resistant Seedling Preservation Technology Opinion proposed reasonable planting density recommendations. In this variety approval, there are more products resistant to high planting densities, with some suitable for planting densities of 6,500-7,000 plants per acre in Xinjiang. Overall, the average yield per acre of approved corn varieties for the first time this time exceeded 800 kilograms, an increase of 1.7% over the previous year, with 61 varieties in the Northwest Ecological Zone exceeding 1,000 kilograms per acre. Yuan Longping High-Tech Agriculture, ShanDongDenghai Seeds, Winall Hi-tech Seed, KANGNONG SEED, and China Agriculture Development Seed Group had 20, 10, 4, 6, and 5 varieties approved by the national review, respectively. Risk warnings: Policy risks, natural disaster risks, and research and development progress not meeting expectations.