Financial Performance - The net profit attributable to shareholders for Q1 2022 was approximately ¥2.07 million, representing a significant decline of 76.68% year-over-year[16]. - The operating revenue for Q1 2022 was approximately ¥28.57 million, down 9.86% from ¥31.69 million in Q1 2021[16]. - The basic earnings per share for Q1 2022 was ¥0.01, down 87.50% from ¥0.08 in the same period last year[16]. - The weighted average return on equity based on net profit attributable to shareholders was 0.78% for Q1 2022, down from 3.84% in Q1 2021[16]. - The decline in net profit was primarily due to a decrease in sales caused by COVID-19 pandemic restrictions, resulting in a revenue drop of approximately ¥3.12 million[18]. - Total operating revenue for Q1 2022 was CNY 28,568,911.26, a decrease from CNY 31,692,702.57 in Q1 2021, representing a decline of approximately 6.7%[67]. - Net profit for the first quarter of 2022 was 2,072,317.04 yuan, down from 8,884,754.91 yuan in the first quarter of 2021, representing a decrease of approximately 76.7%[69]. - Total profit for the first quarter of 2022 was 2,224,783.73 yuan, down from 10,264,645.96 yuan in the same period of 2021, a decrease of approximately 78.3%[68]. Cash Flow - The net cash flow from operating activities for Q1 2022 was approximately ¥672.40 thousand, a decrease of 61.78% compared to the previous year[16]. - Operating cash flow for Q1 2022 was ¥672,398.83, a decrease of 61.9% compared to ¥1,759,329.80 in Q1 2021[73]. - Total cash inflow from operating activities in Q1 2022 was ¥29,758,286.00, down 10.3% from ¥33,388,410.62 in Q1 2021[73]. - Cash and cash equivalents at the end of Q1 2022 totaled ¥56,672,243.01, compared to ¥97,018,175.75 at the end of Q1 2021, reflecting a decrease of 41.5%[74]. - The net increase in cash and cash equivalents for Q1 2022 was ¥24,272,682.04, a decrease of 55.9% from ¥54,958,028.35 in Q1 2021[74]. Assets and Liabilities - The total assets as of March 31, 2022, were approximately ¥276.93 million, a decrease of 0.12% compared to the end of the previous year[16]. - Total liabilities decreased from CNY 13,976,915.25 at the end of 2021 to CNY 12,577,981.62 as of March 31, 2022, a reduction of approximately 10%[61]. - Current liabilities totaled CNY 10,905,745.87, down from CNY 12,452,117.62, reflecting a decrease of about 12.4%[61]. - Shareholders' equity rose to CNY 264,354,416.17 from CNY 263,299,613.77, showing a slight increase of about 0.4%[61]. Investment and Expenses - Investment income in Q1 2022 was 342,800 CNY, a decrease of 658,700 CNY or 65.8% year-on-year[20]. - Research and development expenses decreased to 885,122.06 yuan in the first quarter of 2022 from 1,217,010.58 yuan in the first quarter of 2021, a reduction of approximately 27.3%[68]. - Total operating costs for Q1 2022 amounted to CNY 27,140,635.69, compared to CNY 22,510,138.59 in Q1 2021, indicating an increase of about 20.5%[67]. Shareholder Commitments - Shareholders holding more than 5% of the company's shares have committed to not transfer or manage their shares for twelve months post-listing, with an automatic six-month extension if stock prices fall below the issue price for 20 consecutive trading days[45]. - The lock-up period for shares held by key personnel will automatically extend by six months if the stock price falls below the issue price after six months of listing[46]. - Any income gained from breaching the share transfer commitments will be returned to the company within five days[45]. - The company has established strict fund management systems to prevent any fund occupation incidents[43]. - The commitment to avoid fund occupation will remain effective as long as the actual controller is in position[43]. Compliance and Regulations - The company has committed to a profit distribution policy that aligns with relevant laws and regulations, ensuring compliance post-listing[55]. - The company will disclose any failure to fulfill commitments due to uncontrollable factors in a timely manner[53]. - Any losses incurred by the company or investors due to non-compliance with commitments will result in legal compensation responsibilities for the responsible parties[45]. - The company will take corrective actions within the timeframe required by regulatory authorities if commitments are not fulfilled[54].

Product Development and Innovation - In 2021, the company launched multiple new products, including "Xuebao" and "Xueyang," which enhance blood production and oxygen levels in livestock, contributing to improved feed efficiency [5]. - The product "Xuewang" won the first prize at the 7th China Pig Industry Forum in April 2021, highlighting its market recognition [8]. - The company obtained 5 patents in 2021, showcasing its commitment to innovation and product development [5]. - The company has developed a series of proprietary products aimed at improving feed quality and animal health, including "Blood Oxygen Health" and "Blood Nutrition" series [21]. - The company launched new products including "谷净" and "牲血旺 3 号," which have shown effectiveness in reducing feed costs and improving nutrient utilization in livestock [62][64]. - The company has launched several new products aimed at improving animal health, including alternatives to antibiotics and fishmeal [118]. - The company is focused on research and development to improve feed efficiency and reduce costs, which is critical for the survival of livestock enterprises [61][66]. - The company aims to enhance its research and development in hematopoietic nutrition, focusing on highland dairy cows and aquatic animals to address high mortality rates due to hypoxia [127]. Financial Performance - The company's operating revenue for 2021 was CNY 137,193,196.23, representing a year-on-year increase of 7.73% compared to CNY 127,347,425.82 in 2020 [34]. - The net profit attributable to shareholders for 2021 was CNY 40,017,018.30, showing a slight decrease of 0.17% from CNY 40,083,422.07 in 2020 [34]. - The gross profit margin for 2021 was 43.60%, down from 49.75% in 2020 [34]. - Total assets increased by 30.12% to CNY 277,276,529.02 at the end of 2021, compared to CNY 213,095,119.17 at the beginning of the year [36]. - The total liabilities decreased by 11.51% to CNY 13,976,915.25 at the end of 2021, down from CNY 15,794,988.89 at the beginning of the year [36]. - The net cash flow from operating activities for 2021 was CNY 25,658,464.35, an increase of 5.34% from CNY 24,357,095.17 in 2020 [38]. - The company's weighted average return on equity based on net profit attributable to shareholders was 15.99% in 2021, down from 21.96% in 2020 [34]. - The basic earnings per share for 2021 was CNY 0.25, a decrease of 35.90% compared to CNY 0.39 in 2020 [34]. - The company achieved a revenue of 137.19 million yuan, an increase of 7.73% compared to the same period in 2020, while net profit was 40.02 million yuan, a slight decrease of 0.17% [61]. - The company reported a total of CNY 2.42 million in government subsidies, including CNY 0.3 million for business awards and CNY 1 million for financing subsidies [46]. Market and Industry Challenges - The livestock industry faced challenges in 2021, with a 27.4% increase in pig slaughtering, leading to a significant drop in prices and profitability for farmers [65]. - In 2021, the average price of corn reached 2,442 yuan/ton, an increase of 322 yuan/ton from 2020, contributing to significant cost pressures in the industry [65]. - The company anticipates challenges in 2022 due to low pig prices, which may lead to reduced breeding scales and lower feed demand [137]. - Fluctuations in raw material prices, such as corn, wheat, and soybean meal, may impact the profitability of livestock and feed enterprises [137]. - The company is actively addressing market competition risks from counterfeit products that could harm its brand image and sales [18]. Research and Development - The company is increasing R&D efforts for blood-related products, addressing anemia in susceptible animals as a key industry focus [18]. - The company has established partnerships with renowned universities and research institutions to enhance its R&D capabilities and develop high-value products with independent intellectual property rights [18]. - The company has completed 10 out of 13 R&D projects in 2021, with significant advancements in products aimed at improving livestock health and nutrition [117]. - R&D expenditure for the current period was CNY 3,983,697.54, accounting for 2.91% of operating income, a decrease from 3.70% in the previous period [112]. Corporate Governance and Shareholder Commitments - The company has established a buyback plan to enhance long-term incentive mechanisms and attract talent, reflecting confidence in its future development [148]. - The actual controlling shareholders have provided written commitments to fully compensate for any economic losses arising from lease agreements or potential relocations due to property demolition, with no losses reported during the reporting period [160]. - The company has committed to avoid related party transactions and has established a decision-making system to regulate such transactions, ensuring no related party transactions occurred during the reporting period [158]. - The company has ensured that all employees have paid social insurance, with exceptions for employees from rural areas who voluntarily opted out, and will continue to promote compliance with social insurance regulations [162]. Strategic Growth and Expansion - The company plans to enhance its product offerings by promoting efficient low-protein feed formulations and green feed additives, which are expected to have a broad market outlook during the 14th Five-Year Plan period [70]. - The company plans to establish 100 marketing service outlets nationwide to expand sales channels and improve customer service [129]. - The company plans to expand its production capacity to 9,000 tons annually as part of its growth strategy [190]. - The company is committed to developing cost-reducing and efficiency-enhancing products to support industry growth amid declining pig prices and rising material costs [130]. Awards and Recognition - The company was honored as a "2020 Guangzhou Hidden Champion Enterprise" in September 2021, indicating its competitive position in the industry [9]. - The chairman received multiple awards in 2021, reflecting the leadership's recognition in the agricultural technology sector [9]. - The company received multiple awards, including recognition as a "hidden champion enterprise" in Guangzhou and a first prize in the "China Egg Products Competition" [120].

Group 1: Investor Meeting Overview - The company received 7 institutional investors for a meeting on November 15, 2021 [2] - The meeting was held in the company conference room and included representatives from various investment firms [2] Group 2: Product Highlights - The raw materials used in the company's products comply with the "Feed Raw Material Directory (2018)" and "Feed Additive Variety Directory (2013)" [3] - The company's blood products can effectively improve anemia symptoms in animals, enhancing immunity and meat quality [4] - Products help reduce the need for antibiotics, ensuring the safety of animal meat [4] Group 3: Business Growth Plans - The company aims to serve existing customers better and increase product usage [5] - New product "Gu Jing" can degrade mycotoxins in grain feed with a degradation rate exceeding 90%, at a lower cost than imported alternatives [5] - Plans to expand product development and market outreach in aquaculture, ruminants, and poultry [5]

Group 1: Investor Meeting Overview - The company received 7 institutional investors for research from July 28 to July 31, 2021 [3] - The meeting included on-site communication and visits [3] - Participating institutions included Anxin Securities, Power Capital, Ping An Insurance, Tianhui Investment, Industrial Bank, Bank of Communications, and Guoyuan Securities [3] Group 2: Key Issues Discussed Issue 1: Product Recognition - Intensive farming leads to anemia in animals due to lack of chlorophyll, exercise, minerals, and sunlight [4] - The company has focused on research and production of blood-boosting products, proving their effectiveness and safety through customer trials [4] - The products help improve animal health, reduce feed-to-meat ratio, enhance immunity, and decrease antibiotic use, thus increasing farmers' profits [4] Issue 2: Market Share Improvement - The company is actively recruiting industry talent [5] - It aims to expand product development and market outreach in aquaculture, ruminants, and poultry [5] - The company is working to raise awareness among livestock professionals about anemia and its impacts [5] Issue 3: Future Capital Operations - The company currently has no planned capital operations and will focus on performance improvement [6] - Any future plans will be disclosed in a timely manner [6]