Company Overview - Shanxi Dayu Biological received approval from the China Securities Regulatory Commission for public offering of shares on April 21, 2022, and successfully listed on the Beijing Stock Exchange on May 18, 2022[5]. - The company was awarded the "Enterprise Technology Innovation Award" by the Shanxi Provincial Government for the year 2021 on January 25, 2022[5]. - The company operates primarily in the animal husbandry sector, which is susceptible to significant risks from animal epidemics and natural disasters, potentially impacting sales of feed and feed additives[12]. - The company has been recognized as a high-tech enterprise since December 2016, benefiting from a reduced corporate income tax rate of 15% and tax deductions for eligible R&D expenses[13]. Financial Performance - The company's operating revenue for the period was CNY 59,399,772.91, a decrease of 23.44% compared to the same period last year[24]. - The net profit attributable to shareholders was CNY 7,844,216.36, down 31.51% year-on-year[24]. - The total assets increased by 37.49% to CNY 407,670,582.09 compared to the end of the previous year[25]. - The total liabilities decreased by 34.31% to CNY 54,685,259.88, indicating improved financial stability[25]. - The company reported a basic earnings per share of CNY 0.1805, a decline of 35.44% from the previous year[24]. - The net cash flow from operating activities was CNY 2,112,318.87, down 88.34% year-on-year[26]. - The company has a debt-to-asset ratio of 13.41%, significantly lower than the previous year's 28.08%[25]. Market Risks and Challenges - The cyclical nature of the pig farming industry may lead to fluctuations in demand for the company's products, particularly if pig prices continue to decline[12]. - The company relies heavily on a distribution model, with a significant number of distributors across various provinces, which poses risks if relationships with these distributors are not maintained[13]. - The ongoing uncertainty surrounding the COVID-19 pandemic may pose additional risks to the company's operations and market stability[13]. - The company faces risks related to potential changes in tax policies that could affect its profitability, particularly regarding VAT exemptions on certain feed products[13]. Product Development and R&D - The company’s product development focuses on creating nutritional solutions tailored to different growth stages of animals, which is essential for maintaining market competitiveness[13]. - The company has been focusing on the research and development of feed additives, including micro-ecological preparations and feed enzymes[30]. - The company has launched several micro-ecological preparation products, expanding its business into feed and veterinary medicine[30]. - The company aims to enhance its research and development capabilities to keep pace with market demands and maintain product competitiveness[70]. Shareholder and Governance Commitments - The company has established a governance structure to ensure the interests of minority shareholders are protected against potential control risks by major shareholders[73]. - The company has committed to avoiding any actions that could harm the interests of minority shareholders, including the misuse of funds[81]. - The company has reported no significant related party transactions during the reporting period, ensuring transparency in its financial dealings[76]. - The company will ensure that any income from violations of commitments will be returned to the company within 5 days[85]. Stock Issuance and Repurchase Plans - The company issued 15,000,000 shares at a price of 10.00 RMB per share, raising a total of 150,000,000 RMB during the reporting period[127]. - The company plans to implement measures to stabilize its stock price within three years of its public offering, including potential share buybacks by its actual controllers[89]. - The company will continue to repurchase shares if the stabilization measures do not meet the required conditions, with a maximum limit of 2% of the total capital within 12 months[92]. - The company has committed to not selling any shares acquired through the repurchase plan for 6 months after completion[94]. Profit Distribution Policy - The company emphasizes the importance of a stable and scientific profit distribution policy, ensuring continuity and stability in profit allocation[98]. - The company plans to prioritize cash dividends, with the cash dividend amount being the post-tax figure[99]. - The company will distribute at least 10% of the annual distributable profit in cash dividends, and the cumulative cash dividends over the last three years should not be less than 30% of the average annual distributable profit[101]. - The company will consider the opinions of independent directors and minority shareholders during the decision-making process for profit distribution policies[99]. Compliance and Regulatory Commitments - The company is committed to fulfilling its obligations regarding the public issuance of stocks to unspecified qualified investors, with strict adherence to relevant commitments made during the listing process on the Beijing Stock Exchange[102]. - The company guarantees that if it fails to fulfill its commitments, it will compensate investors for any losses incurred during the issuance and trading of securities[103]. - The company will publicly disclose the specific reasons for any failure to meet commitments in designated publications and apologize to shareholders and the public[104]. - The commitments made by the company and its executives are subject to supervision by regulatory bodies and the public[104]. Financial Position and Assets - The total value of restricted assets is 24,049,511.52 yuan, accounting for 5.90% of total assets[111]. - The largest shareholder, Yan Heping, holds 26,623,000 shares, representing 47.58% of total shares[119]. - The proportion of unrestricted shares increased from 11.28% to 29.70% after the issuance of new shares[115]. - The company reported a total of 181,879,396.30 CNY in current assets as of June 30, 2022, compared to 86,677,798.07 CNY at the end of 2021, indicating a significant increase[147].