According to the Guotai Junan Research Report, 1. One of the most food-secure countries, the seed industry is the foundation of an agricultural “chip” powerhouse. 1) External challenges: Major changes that have not occurred in 100 years require revitalization of the seed industry. China attaches great importance to the issue of food security. The seed industry is the “chip” of agriculture, and the revitalization of the seed industry is being promoted at an accelerated pace. 2) Improving internal strength: Improving technology and improving policies to promote the revitalization of the seed industry. 2. Food prices drive demand, production area is reduced, and the pattern of supply and demand in the seed industry is improving. 1) Food prices are expected to rise: Prices of corn and other grains will fall in 2024. As imports reduce and demand improves, higher food prices are expected to drive demand for seeds. 2) Decrease in cultivation area: In 2024, the area of corn cultivation decreased significantly, and stocks of corn seeds decreased. 3. Mergers and acquisitions have been accelerated, the technical threshold has been raised, and leading enterprises have grown bigger and stronger. 1) The state supports seed industry enterprises to grow bigger and stronger, places support enterprises in a prominent position in seed industry revitalization actions, and favorable policies are frequently introduced. 2) While mergers and acquisitions of leading companies are in progress, product expansion continues to advance. 3) The application of genetically modified technology promotes further improvement in the seed industry pattern, and companies with strong variety competitiveness and leading technical reserves are expected to benefit.