A Generation Will Eventually Leave, Young People Must Inherit

Weekly Thoughts

For toB companies, they generally start by doing projects with a core product. In the process of doing projects, they continuously integrate products. With the development of the company, independent products continue to increase, and raw material costs will be reduced to the limit level. Low-cost products or spare parts become the core competitiveness of the company, and they have core advantages in project bidding.

For toB companies, low-cost core products can also be sold externally as standard single items.

Regardless of the model, it is to use existing talents and technologies to produce products, and then use the profits earned from selling products to support research and development, forming a virtuous circle.

The development path of smart agriculture: Due to the existence of large agricultural machinery companies such as John Deere, the United States achieved mechanization in the 1970s. With the development of information technology, naturally, information technology was used to transform traditional mechanization. Coupled with the lack of facility agriculture in the United States, the development model of American smart agriculture dominated by smart agricultural machinery was formed.

Around 2000, domestic agricultural mechanization began to be promoted, and it has not been popularized on a large scale until now. Therefore, the integration of China’s agricultural Internet of Things and agricultural machinery is still relatively independent. With the penetration of digital technology in all walks of life, the onlineization of agricultural machinery and agricultural facilities has become an inevitable trend. The more equipment connected to the Internet, the more important the central role of the Internet of Things.

With the irreversible development of urbanization, labor-based agricultural production is becoming less and less. Currently, open-air agriculture such as wheat, corn, rice, and soybeans has basically achieved full mechanization. When the current group of farmers engaged in facility cultivation retires, unmanned facilities and equipment for facility agriculture will inevitably become a rigid demand. The role of people in agricultural production is not only operation, but also involves agricultural experience, status interpretation, etc. To achieve complete unmanned operation, digital technology must be used to realize the role of people in current agricultural production. This requires the integration of the Internet of Things with agricultural machinery, agronomy, and agricultural materials to form a new digital agriculture.

Ultimately, due to the relative closeness and controllability of facility agriculture, organizations that master the most advanced digital agriculture technology can even achieve cloud hosting of farms. Not only field workers, but even farm owners can be liberated from the land.

For digital agriculture organizations, they gradually evolve from an equipment company and integrator into a service company.

With the increase in hosted farms, more and more data, the marginal effect of labor becomes more and more obvious, and the value of data becomes greater and greater, digital agriculture organizations can achieve full-process services from seeds to chopsticks.

Weekly Events

Mr. Yuan Longping, the father of hybrid rice, recipient of the Medal of the Republic, and academician of the Chinese Academy of Engineering, passed away at the age of 91. Mr. Yuan struggled all his life and can rest well. A generation will eventually leave, and young people must inherit.
Bitcoin trading and mining are defined as illegal by China, and virtual currency may be bearish for a long time.

Weekly Market

Period: 2021-05-16——2021-05-22

4-week review: The three major indices rose slightly this week. The top three wind industry gainers were daily chemicals, healthcare, and biotechnology; the top three losers were leisure products, oil and gas, and forestry indices. Wind concepts vaccines, lithium batteries, and yellow rice wine; the top three losers were HNA series, aquatic products, and Hainan Free Trade Zone.

3-week review: The three major indices rose slightly this week. The top three wind industry gainers were shipping, biotechnology, and healthcare; the top three losers were airports, forestry, and motorcycle indices. The top three wind concept gainers were vaccines, medical aesthetics, and biological products; the top three losers were small base stations, 4G, and Stock Connect.

2-week review: The three major indices all fell this week, and the index has been in a volatile market for a long time. The top three wind industry gainers were coal, shipping, and steel; the top three losers were motorcycles, airports, and catering indices. The top wind concept gainers were iron ore, coal, and soda ash; the top three losers were consumption, small base stations, and semiconductors.

1-week review: The three major indices all rose this week, mainly due to the surge in the whole market on Friday. It will still be in a volatile market in the short term. The top three wind industry gainers were biotechnology, automobiles, and securities firms; the top three losers were biotechnology, coal, and steel. The top three wind concept gainers were participating in finance, Chengdu-Chongqing Special Zone, and smart grid; the top three losers were PTA, steel, and rare earth.

This week’s review: The three major indices all rose this week, mainly due to the surge in the whole market on Friday. It will still be in a volatile market in the short term. The top three wind industry gainers were shipping, soft drinks, and automobiles; the top three losers were chemical fiber, motorcycles, and petrochemicals. The top three wind concept gainers were participating in finance, Chengdu-Chongqing Special Zone, and smart grid; the top three losers were PTA, steel, and rare earth.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
Shanghai Composite Index	3488.56	-0.11	2.09	-0.69	-0.79
Shenzhen Component Index	14417.46	1.47	1.97	-2.31	0.6
ChiNext Index	3113.26	2.62	4.24	-2.53	3.24
Hang Seng Index	28458.44	2.67	-2.04	-0.4	-2.06
HSCEI	1101.75	1.43	-1.41	1.83	-1.6
Hang Seng HK Chinese Companies	4111.64	1.55	-1.21	1.51	-2.06
Dow Jones Index	34207.84	-0.51	-1.14	2.67	-0.49
Nasdaq	13470.99	0.3	-2.34	-1.51	-0.39
S&P 500 Index	4155.86	-0.43	-1.39	1.23	0.02