Revenue and Profitability - Revenue for the year ended December 31, 2023, decreased by 12.0% to approximately RMB 439.393 million compared to RMB 499.337 million in 2022[2] - Gross profit for the year ended December 31, 2023, increased by 162.3% to approximately RMB 51.925 million compared to RMB 19.797 million in 2022[2] - Annual loss for the year ended December 31, 2023, was approximately RMB 81.687 million, compared to a loss of RMB 1,039.735 million in 2022[2] - The company reported a net loss of approximately RMB 81.687 million for the year ended December 31, 2023[27] - Revenue from pork sales decreased to approximately RMB 439.393 million in 2023, down from RMB 499.337 million in 2022[36] - Retail pork revenue decreased to RMB 146.181 million in 2023 from RMB 213.959 million in 2022[41] - Wholesale pork revenue increased to RMB 283.826 million in 2023 from RMB 266.424 million in 2022[41] - Revenue decreased by 12.0% from approximately RMB 499,337,000 in 2022 to RMB 439,393,000 in 2023, primarily due to declining domestic live pig prices[91] - Gross profit increased significantly by 162.3% from RMB 19,797,000 in 2022 to RMB 51,925,000 in 2023, driven by cost control measures and stabilized pork prices[87] - Retail pork sales accounted for 33.3% of total revenue in 2023, down from 42.9% in 2022, while wholesale pork sales increased to 64.6% from 53.4%[90] - The company recorded a net loss of approximately RMB 81,687,000 in 2023, mainly due to high financing costs from a 25% default interest rate on bonds and notes[88] - Pork retail revenue decreased by 31.7% from approximately RMB 213,959,000 in 2022 to approximately RMB 146,181,000 in 2023[92] - Pork wholesale revenue increased by 6.5% from approximately RMB 266,424,000 in 2022 to approximately RMB 283,826,000 in 2023[94] - Overall gross profit increased by 162.3% from approximately RMB 19,797,000 in 2022 to approximately RMB 51,925,000 in 2023, with gross margin rising from 4.0% to 11.8%[100] - Pork retail gross profit increased from approximately RMB 9,069,000 in 2022 to approximately RMB 21,273,000 in 2023, with gross margin rising from 4.2% to 14.6%[101] - Pork wholesale gross profit increased significantly from approximately RMB 8,777,000 in 2022 to approximately RMB 28,418,000 in 2023, with gross margin rising from 3.3% to 10.0%[102] - Commercial pig wholesale gross profit decreased from approximately RMB 2,906,000 in 2022 to approximately RMB 2,234,000 in 2023, with gross margin slightly increasing from 21.2% to 23.8%[103] - Net loss for the reporting period was approximately RMB 81,687,000, primarily due to high financing costs from default interest rates on non-convertible bonds and notes[106] Financial Position and Liabilities - Inventory decreased to RMB 36.786 million in 2023 from RMB 71.966 million in 2022[17] - Trade receivables increased to RMB 83.450 million in 2023 from RMB 57.815 million in 2022[17] - Cash and bank balances decreased to RMB 3.911 million in 2023 from RMB 4.580 million in 2022[17] - Total current liabilities increased to RMB 931.248 million in 2023 from RMB 889.375 million in 2022[17] - Net current liabilities increased to RMB 750.786 million in 2023 from RMB 681.917 million in 2022[17] - Total assets minus current liabilities decreased to RMB 698.092 million in 2023 from RMB 608.658 million in 2022[17] - Equity decreased to a deficit of RMB 730.314 million in 2023 from a deficit of RMB 641.297 million in 2022[19] - As of December 31, 2023, the company had a net current liability of approximately RMB 750.786 million and a net liability of approximately RMB 730.314 million[27] - The company's cash and cash equivalents as of December 31, 2023, were approximately RMB 3.911 million, insufficient to cover its debts and liabilities[27] - The company has outstanding non-convertible bonds and notes with principal amounts of HKD 150 million (approximately RMB 135.933 million) and HKD 110 million (approximately RMB 99.684 million), respectively, along with accrued interest of approximately HKD 487.102 million (approximately RMB 441.422 million)[27] - The company is implementing a debt transfer and financing plan, including the sale of assets related to HKD 150 million in convertible bonds and HKD 110 million in notes[29] - The company's cash flow forecast indicates sufficient working capital to meet financial obligations for the next 12 months[31] - The company's convertible bonds and notes were originally due on October 15, 2018, but the maturity date was extended multiple times, with the final extension to May 31, 2022[44] - As of May 31, 2022, the convertible bonds and notes were in default with an interest rate of 25%, and the company received a statutory demand for repayment of RMB 286,993,000 in additional interest[45] - The company incurred a net loss attributable to owners of RMB 81,687,000 in 2023, compared to RMB 1,039,735,000 in 2022[54] - The weighted average number of ordinary shares used to calculate basic loss per share was 2,210,534,000 in 2023, up from 1,889,000,000 in 2022[54] - The company's total employee costs decreased to RMB 10,914,000 in 2023 from RMB 16,218,000 in 2022[51] - Total depreciation expenses decreased significantly to RMB 7,058,000 in 2023 from RMB 34,186,000 in 2022[51] - The company recognized inventory costs as expenses of RMB 378,231,000 in 2023, down from RMB 446,383,000 in 2022[51] - No dividends were recommended for the year ended December 31, 2023, consistent with the previous year[53] - The company's subsidiaries engaged in primary agricultural processing are exempt from Chinese enterprise income tax for the years ended December 31, 2023 and 2022[49] - The company did not have any taxable profits subject to Hong Kong profits tax for the years ended December 31, 2023 and 2022[47] - Basic and diluted loss per share for the years ended December 31, 2023 and 2022 remained the same due to the anti-dilutive effect of the exercise price of share options[55] - Trade receivables increased to RMB 205,188 thousand in 2023 from RMB 173,627 thousand in 2022, with a corresponding increase in expected credit loss provisions to RMB 121,738 thousand from RMB 115,812 thousand[56] - Trade receivables from customer contracts as of January 1, 2022, amounted to approximately RMB 168,408,000[57] - Trade receivables aged over 180 days increased significantly to RMB 98,954 thousand in 2023 from RMB 47,988 thousand in 2022[59] - Trade payables and notes payable increased to RMB 39,899 thousand in 2023 from RMB 25,902 thousand in 2022, with a notable increase in payables aged over 180 days to RMB 33,107 thousand from RMB 9,703 thousand[60] - The company's average credit period for purchasing goods generally ranges from 15 to 90 days[60] - Total borrowings amounted to RMB 373,523 thousand in 2023, slightly down from RMB 376,639 thousand in 2022, with the majority (RMB 371,523 thousand) due within one year[65] - The floating interest rates for borrowings ranged from 5.13% to 55.13% in 2023, compared to 5.00% to 6.96% in 2022[67] - The company reported a net loss of approximately RMB 81,687 thousand for the year ended December 31, 2023, with net current liabilities of RMB 750,786 thousand and net liabilities of RMB 730,314 thousand[71] - As of December 31, 2023, the company's cash and cash equivalents were only approximately RMB 3,911 thousand, insufficient to cover its borrowings and other liabilities[71] - The company is implementing multiple plans and measures to improve liquidity and financial conditions, with details in the financial statements' Note 3[74] - The cash flow forecast assumes successful implementation of these plans, but uncertainties remain regarding their outcomes[74] - The company is negotiating with banks to extend debt repayment, but there is insufficient audit evidence to confirm the success of these negotiations[75] - Failure to achieve the planned measures may require adjustments, including asset write-downs and reclassification of non-current assets and liabilities[76] - The company has overdue bank loans of approximately RMB 111.52 million, which are either repayable on demand or within one year[119] - The company's total interest-bearing bank loans as of December 31, 2023, amounted to approximately RMB 117.52 million, a decrease from RMB 121.41 million in 2022[118] - The company has capital commitments of approximately RMB 36.98 million as of December 31, 2023, primarily for ongoing construction projects in Hebei and Fujian[125] - The company has no significant contingent liabilities as of December 31, 2023[124] - The company's total interest-bearing loans of approximately RMB 358.13 million are secured by property, plant, and equipment with a total book value of approximately RMB 43.31 million[118] - The company has not received any further legal action from creditors regarding the statutory demand for debt repayment[114] - The company has appointed receivers for 816 million shares, representing approximately 36.28% of the total issued shares[117] - The company has no significant foreign exchange risk as most of its assets, income, and cash balances are denominated in RMB[122] - The company has no asset-liability ratio as of December 31, 2023, due to a net loss recorded for the year[120] - Total number of employees decreased to 124 in 2023 from 206 in 2022, a reduction of 39.8%[126] - Employee costs decreased to RMB 10,914,000 in 2023 from RMB 16,218,000 in 2022, a reduction of 32.7%[126] - The company received a notice from the Stock Exchange on October 18, 2024, regarding the decision to delist the company, and has requested a review of this decision[128] - The company is facing legal claims totaling HKD 8,866,336.02 and RMB 97,916,728.81 from Bank of China (Hong Kong) Limited and Bank of China Limited Putian Branch, respectively[130] - A legal claim of RMB 3,035,331.08 was filed against Tianyi (Fujian) Modern Agriculture Development Co., Ltd. by Fujian Strait Bank Co., Ltd. Xianyou Branch[130] - The company is actively negotiating with banks to extend the repayment dates of loans and seeking potential buyers for loan restructuring[131] - A winding-up petition was filed against the company on October 14, 2024, but a settlement was reached with the petitioner on November 1, 2024[133] - The company has entered into a debt restructuring agreement involving HKD 150 million in convertible bonds and HKD 110 million in notes[134] - No dividends were recommended for the reporting period[137] Operational Challenges and Strategic Shifts - The company's pig farming business has faced severe operational difficulties since 2021 due to African swine fever and COVID-19, leading to significant losses[78] - Retail business has been impacted by increased management and transportation costs, resulting in reduced scale and gross profit[78] - Feed raw material prices have risen continuously, increasing total feed costs and pressuring the company's operations[80] - The company entered strategic pre-purchase agreements with feed suppliers in 2021 and 2022 to lock in feed prices, but this has significantly tied up cash flow resources[82] - The company strategically shifted focus from pig farming to slaughtering and processing to mitigate risks in the volatile pig farming environment[87] - The company incurred a special inventory write-off of RMB 32,328,000 due to Typhoon Doksuri in July 2023[88] - The company's long-term suspension on the Hong Kong Stock Exchange has severely impacted its financing capabilities and overall operations[86] - The company's accounts receivable turnover cycle deteriorated significantly due to intense competition in the pork sales industry[83] - The company's 2022 audited annual results showed a significant loss of RMB 1,039,735,000, with additional impairment losses and accrued interest based on a 25% default rate[86] - Frozen pork retail sales were discontinued during the reporting period due to difficulties in cross-provincial circulation and extended payment periods[95] - Commercial pig wholesale revenue decreased by 31.4% from approximately RMB 13,691,000 in 2022 to approximately RMB 9,386,000 in 2023[96] - The company has strategically repositioned its focus within the pig farming industry chain, reducing its pig breeding operations and forming a strategic alliance with Beijing Ershang Meat Food Group Co., Ltd.[135] Corporate Governance and Leadership - Chairman and CEO roles are held by the same individual, Mr. Cai Chenyang, which the Board believes will not impair the balance of power and authority between the Board and management[143] - The Board is composed of experienced and capable individuals who regularly meet to discuss operational matters[143] - The combined Chairman and CEO structure is seen as beneficial for strong and consistent leadership during the company's rapid business development[143] - Financial performance results are available on the Stock Exchange and the company's website[144] - The annual report for the reporting period will be sent to shareholders and published on the Stock Exchange and the company's website at the appropriate time[144] - The Board includes executive directors Mr. Cai Chenyang, Mr. Cai Haifang, Ms. Li Ting, and Ms. Ma Yilin, as well as non-executive directors Mr. Cheng Li'an and Mr. Cai Zhiwei, and independent non-executive directors Mr. Xue Chaochao, Mr. Ke Qingming, and Mr. Wang Aiguo[144] Accounting Standards and Financial Reporting - The company is applying new and revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2023, with no significant impact on financial statements[23] - The company has not early adopted certain new and revised HKFRS that are not yet effective, including amendments to HKFRS 9 and HKFRS 7, which will be effective from January 1, 2024, and later[25] - The company expects that the application of all new and revised HKFRS in the foreseeable future will not have a significant impact on its financial statements[26]

Financial Performance - The company reported revenue of approximately RMB 239,282,000 for the first half of 2022, a decrease of about 26.5% compared to RMB 325,694,000 in the same period of 2021[6]. - The overall gross profit was approximately RMB 28,357,000, down about 35.2% from RMB 43,771,000 year-on-year[6]. - The net loss for the period was approximately RMB 167,114,000, an increase of about 205.4% compared to a net loss of RMB 54,716,000 in the previous year[6]. - The group reported a pre-tax loss of RMB 167,114 thousand for the six months ended June 30, 2022, compared to a loss of RMB 54,716 thousand in the prior year, indicating a significant increase in losses[37]. - The net loss for the period was approximately RMB 167,114,000, an increase of about 205.4% compared to the net loss of approximately RMB 54,716,000 in the same period last year[21]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 845,000, a significant decrease from RMB 79,250,000 in the same period of 2021[43]. Revenue Breakdown - Retail pork revenue decreased by approximately 53.8% to RMB 96,901,000 from RMB 209,746,000 in the same period last year[10]. - Wholesale pork revenue increased by approximately 24.3% to RMB 128,310,000 from RMB 103,208,000 year-on-year[11]. - Retail pork sales generated RMB 96,901,000, a decline of 53.8% compared to RMB 209,746,000 in 2021[51]. Gross Profit Analysis - The overall unaudited gross profit decreased from approximately RMB 43,771,000 in the same period last year to approximately RMB 28,357,000, with a gross profit margin dropping from 13.4% to 11.9%[16]. - Retail pork gross profit fell from approximately RMB 33,467,000 to approximately RMB 14,570,000, with the gross profit margin decreasing from 16.0% to 15.0%[17]. - Wholesale pork gross profit increased slightly from approximately RMB 9,179,000 to approximately RMB 9,439,000, but the gross profit margin decreased from 8.9% to 7.4%[18]. - Retail frozen meat gross profit decreased from approximately RMB 500,000 to approximately RMB 474,000, while the gross profit margin increased from 5.0% to 9.0%[19]. - Wholesale commodity pork gross profit rose significantly from approximately RMB 625,000 to approximately RMB 3,874,000, with the gross profit margin increasing from 23.1% to 44.0%[20]. Debt and Financial Position - As of June 30, 2022, the total interest-bearing bank borrowings amounted to approximately RMB 127,355,000, with all due within one year[25]. - The debt-to-equity ratio as of June 30, 2022, was 145.7%, up from 86.2% as of December 31, 2021[26]. - The company reported a net loss of approximately RMB 167,114,000 for the period, with current liabilities exceeding current assets by RMB 213,668,000[45]. - Cash and cash equivalents at the end of the period were RMB 6,593,000, insufficient to cover outstanding borrowings and other liabilities[45]. - The company is negotiating with lenders for debt restructuring and refinancing to meet operational and financial needs[46]. - The company's total borrowings amounted to RMB 359,640,000 as of June 30, 2022, compared to RMB 352,148,000 as of December 31, 2021, indicating an increase of about 2.1%[70]. Operational Strategies - The company plans to expand its retail network and explore emerging e-commerce markets to improve sales performance[8]. - The company aims to develop high-end pork products and broaden its product range to meet consumer demand for quality products[15]. - The company plans to enhance the sales of high-end products, particularly black pork, to capitalize on the upgrading of national consumption[35]. - The group aims to expand its emerging retail channels, focusing on e-commerce and community stores, to adapt to changing consumer behaviors post-pandemic[34]. - The company plans to accelerate the establishment of direct sales and distribution channels, particularly in Beijing and Fujian, and expand production lines at the Hebei Xuanhua breeding base to increase live pig output[32]. - The company plans to increase its investment in emerging channels and develop a new generation of sales models to boost online sales and group purchasing[34]. Credit Losses and Receivables - The company experienced a significant increase in expected credit losses of RMB 140,980,000 due to a deterioration in the accounts receivable turnover cycle[7]. - The management has implemented stricter collection policies, recovering over RMB 100,000,000 in overdue receivables within three months[7]. - The group experienced a significant increase in expected credit loss provisions, amounting to RMB 140,980 thousand for the current period[37]. - Trade receivables increased to RMB 252,519,000 as of June 30, 2022, from RMB 168,408,000 at the end of 2021[63]. - The provision for expected credit losses on trade receivables rose significantly to RMB 189,000,000 from RMB 48,020,000 in 2021[63]. Shareholder Information - The controlling shareholder, Zhanrui, pledged 816,000,000 shares of common stock as collateral to Vandi Investments Limited[98]. - As of June 30, 2022, Mr. Cai Chenyang holds 1,078,440,000 shares, representing 57.09% of the company's issued shares[99]. - The total number of shares held by major shareholders includes 816,000,000 shares pledged, which accounts for 43.20% of the company's issued capital[105]. - Zhanrui is considered to have a beneficial interest in 1,006,000,000 shares, with 816,000,000 shares pledged as collateral[104]. - The company has established a continuous mortgage for all liabilities due to investors, as per the new share pledge agreement[98]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules Appendix 14, with no known non-compliance during the review period[110]. - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated financial statements and confirmed full compliance with applicable accounting standards[112].

Financial Performance - The company recorded revenue of approximately RMB 628,912,000 for the year ended December 31, 2021, a decrease of about 1.2% compared to RMB 636,715,000 in 2020[18]. - The total gross profit for the year was approximately RMB 70,728,000, a decrease of about 31.0% from RMB 102,493,000 in the previous year[18]. - The net loss for the year was RMB 266,458,000, compared to a profit of RMB 7,510,000 in 2020, resulting in a net loss margin of (42.4%) in 2021[11]. - Total revenue decreased by 1.2% from approximately RMB 636,715,000 in 2020 to approximately RMB 628,912,000 in 2021, primarily due to a significant drop in domestic pig prices, despite a 30.7% increase in overall sales volume[31]. - The overall gross profit was approximately RMB 70,728,000, down about 31.0% from RMB 102,493,000 for the previous year[27]. - The group reported a net loss of approximately RMB 266,458,000, compared to a net profit of RMB 7,510,000 for the year ended December 31, 2020[27]. Operational Highlights - The company experienced a 37.5% increase in live pig output and a 30.7% increase in overall sales compared to the previous year[18]. - The number of live pigs sold increased by 37.5% and overall sales volume increased by 30.7% compared to the previous year[27]. - Retail pork revenue increased by approximately 1.4% from about RMB 402,537,000 in 2020 to approximately RMB 408,053,000 in 2021, driven by a 29.6% increase in product sales volume[32]. - Wholesale pork revenue decreased by approximately 5.2% from about RMB 202,316,000 in 2020 to approximately RMB 191,843,000 in 2021, despite a 39.2% increase in sales volume[34]. Cost and Margin Analysis - The average breeding cost in the pork industry reached historical highs due to rising feed prices and increased epidemic prevention costs[17]. - The gross profit margin decreased to 11.2% in 2021 from 16.1% in 2020[11]. - The gross margin for retail pork decreased from approximately 16.8% in 2020 to approximately 14.2% in 2021, while the gross margin for wholesale pork dropped from approximately 13.7% to approximately 4.2%[39][40]. - The gross profit for wholesale commodity pigs decreased by approximately 45.4% from about RMB 5,372,000 in 2020 to approximately RMB 2,931,000 in 2021, with the gross margin increasing from approximately 48.9% to 57.7%[42]. Financial Position - The company's asset-liability ratio increased to 86.1% in 2021 from 55.9% in 2020[11]. - The current ratio decreased to 0.8 in 2021 from 1.1 in 2020, indicating a decline in short-term financial health[11]. - As of December 31, 2021, the total interest-bearing bank loans amounted to approximately RMB 123.22 million, a decrease from RMB 140.04 million as of December 31, 2020[47]. - The group reported a net loss of approximately RMB 266.46 million for the year ended December 31, 2021, with current liabilities exceeding current assets by approximately RMB 81.17 million[58]. Strategic Initiatives - The company plans to focus on improving operational efficiency and exploring new market opportunities in response to the challenging industry conditions[17]. - The group plans to focus on developing black pork products and the Pusweet gourmet series in the future[23]. - The group aims to enhance its image as "China's leading high-end safe pork brand" and continue to promote the healthy development of the pork industry[20]. - The group plans to accelerate the establishment of direct sales stores and franchise stores in Fujian and Beijing in 2022 to expand its retail footprint[54]. - The group is focusing on developing emerging retail channels, including e-commerce and community stores, to adapt to changing consumer behaviors[55]. Governance and Management - The company has a strong focus on agricultural research and development, with key personnel holding advanced degrees and extensive experience in agricultural science[70]. - The company emphasizes internal controls and corporate governance to ensure compliance with statutory regulations[71]. - The board includes independent directors with expertise in animal genetics and agricultural management, contributing to the company's strategic planning[69][66]. - The company has adopted the latest corporate governance code as per the Hong Kong Stock Exchange's listing rules, enhancing transparency and governance standards[74]. - The board consists of eight directors, with a mix of executive, non-executive, and independent non-executive members, ensuring a balanced governance structure[79]. Risk Management and Internal Controls - The audit committee reviewed the effectiveness of the group's risk management and internal control systems, ensuring compliance with statutory and regulatory requirements[132]. - The company has adopted a set of internal control policies and procedures to safeguard its assets and ensure the reliability of financial reporting[139]. - The internal audit department identified risks and reviewed the effectiveness of internal controls and risk management systems, reporting no major internal control issues for the year 2019[140]. - The company has established a framework for determining the remuneration of executive directors and senior management, considering comparable companies and internal equity[128]. Shareholder and Stakeholder Engagement - The company emphasizes high corporate transparency and actively communicates with shareholders and investors regarding its strategies and operations[145]. - The company’s governance report indicates that the board has taken appropriate steps to ensure effective communication with shareholders[151]. - The company has received confirmation from key stakeholders regarding compliance with a non-competition agreement throughout 2021[75]. Employee and Workforce Management - The group had 463 employees as of December 31, 2021, a decrease from 486 employees as of December 31, 2020, with employee costs around RMB 17.12 million[53]. - The company emphasizes the importance of continuous professional development for directors, ensuring they are updated on legal, regulatory, and market changes[100]. Share Capital and Stock Options - As of December 31, 2021, the company had a total of 98,200 thousand shares remaining under the stock option plan that had not been exercised[170]. - The stock option plan allows for a maximum of 10% of the total issued shares to be granted, which equates to 80,000,000 shares at a par value of HKD 0.1 per share[166]. - The exercise price for the stock options is set at HKD 0.595 per share, which is based on the adjusted price following a share split[170].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 239,282,000, an increase of 73.5% compared to RMB 325,694,000 for the same period in 2021[4] - Gross profit for the same period was RMB 28,357,000, down 35.2% from RMB 43,771,000 in the previous year[5] - The net loss for the period was RMB 167,114,000, compared to a loss of RMB 54,716,000 in the same period last year, representing a 204.1% increase in losses[9] - Total comprehensive loss for the period amounted to RMB 171,916,000, compared to RMB 52,554,000 in the previous year, indicating a significant increase in overall losses[12] - The company reported a basic and diluted loss per share of RMB 8.85, compared to RMB 2.90 in the same period last year[15] - The group reported a total revenue of RMB 239,282,000 for the six months ended June 30, 2022, a decrease of 26.5% compared to RMB 325,694,000 for the same period in 2021[28] - The total gross profit was approximately RMB 28,357,000, down about 35.2% from approximately RMB 43,771,000 in the previous year[56] - The net loss increased significantly to approximately RMB 167,114,000, compared to a net loss of approximately RMB 54,716,000 in the same period last year, representing an increase of about 205.4%[56] Assets and Liabilities - The company's cash and cash equivalents as of June 30, 2022, were RMB 6,593,000, insufficient to cover its debts and liabilities[22] - Current liabilities exceeded current assets by approximately RMB 213,668,000, raising concerns about the company's ability to continue as a going concern[22] - The company's total assets less current liabilities were RMB 292,590,000, down from RMB 466,054,000 in the previous year[17] - Non-current assets as of June 30, 2022, totaled RMB 506,258,000, a decrease from RMB 547,220,000 at the end of 2021[17] - The company’s total equity decreased to RMB 261,408,000 from RMB 433,324,000 in the previous year, reflecting a decline in shareholder value[19] - As of June 30, 2022, the total interest-bearing bank loans amounted to approximately RMB 127,355,000, all due within one year[78] - The asset-liability ratio as of June 30, 2022, was 145.7%, up from 86.2% as of December 31, 2021[79] - The company had capital commitments of approximately RMB 47,096,000 as of June 30, 2022, primarily related to ongoing construction projects in Hebei and Fujian[84] Sales and Revenue Breakdown - Retail pork sales accounted for RMB 96,901,000, down 53.8% from RMB 209,746,000 in the previous year[28] - Wholesale pork sales increased by 24.3% to RMB 128,310,000 from RMB 103,208,000 year-on-year[28] - Retail frozen meat revenue decreased by approximately 47.5% to about RMB 5,266,000 from approximately RMB 10,038,000 in the previous year[65] - The revenue from wholesale pork increased by approximately 225.9% from about RMB 2,702,000 to approximately RMB 8,805,000 due to a strategic change in the sales product mix to tighten cash flow turnover[66] Operational Changes and Strategies - The group is negotiating with lenders for potential debt restructuring and refinancing to meet operational and financial needs[23] - Major shareholder Mr. Cai Chen Yang is willing to provide financial support to ensure the group's continued operation and debt repayment[23] - The group is exploring various fundraising activities to strengthen its capital base, including seeking new investment opportunities[23] - The company plans to improve existing sales channels and expand its retail network, including exploring new e-commerce markets[60] - The group plans to accelerate the establishment of direct sales and distribution channels, focusing on Beijing and Fujian, and expand production lines in Hebei[87] - The group aims to enhance brand recognition and consumer loyalty in the pork market, with a focus on high-standard and branded operations[87] - The group intends to increase the sales volume of high-end products, particularly black pork, to meet the rising consumer demand for quality and safety[89] - The group is committed to developing new retail channels and modern sales models, increasing the proportion of online sales and group purchases[88] - The group anticipates that the recovery of the Chinese economy will continue, supported by a favorable consumer market atmosphere[86] - The group plans to leverage big data and modern statistical tools to optimize its marketing strategies[88] Employee and Cost Management - Total employee costs decreased to RMB 7,774,000 from RMB 9,402,000, reflecting a reduction of 17.3%[36] - As of June 30, 2022, the group had 352 employees, a decrease from 483 employees on June 30, 2021[85] - The average breeding cost reached a historical high due to rising feed raw material prices and increased epidemic prevention costs[55] - The group experienced a significant increase in biological asset purchases, with RMB 337,577 thousand added in 2021, compared to RMB 77,469 thousand in the first half of 2022[43] - The group recognized government subsidies of RMB 1,840,000 for the current period, a significant decrease from RMB 116,252,000 in the previous year[30] Biological Assets and Trade Receivables - The biological assets as of June 30, 2022, totaled RMB 80,562 thousand, down from RMB 110,742 thousand as of December 31, 2021, reflecting a decrease due to sales and fair value changes[43] - Trade receivables amounted to RMB 252,519 thousand as of June 30, 2022, an increase from RMB 168,408 thousand as of December 31, 2021, with expected credit loss provisions rising to RMB 189,000 thousand from RMB 48,020 thousand[45] - Trade payables increased to RMB 25,701 thousand as of June 30, 2022, compared to RMB 21,751 thousand as of December 31, 2021[47] - The average credit period for purchases from suppliers remained at 60 days for both 2022 and 2021[50] - The company did not recognize any collateral for trade receivables as of June 30, 2022[46] Audit and Reporting - The annual report for the year ending December 31, 2021, and the interim report for the six months ending June 30, 2022, will be sent to shareholders in due course[90] - The audit committee has reviewed the unaudited condensed consolidated financial statements and confirmed compliance with applicable accounting standards[95]

Financial Performance - For the six months ended June 30, 2021, China Putian Food Holding Limited recorded revenue of approximately RMB 325,694,000, an increase of about 0.7% compared to RMB 323,530,000 for the same period in 2020[9]. - The group's gross profit for the same period was approximately RMB 43,771,000, a decrease of about 13.6% year-on-year[9]. - The company reported a net loss of approximately RMB 54,716,000, down from a net profit of RMB 8,826,000 in the same period last year, reflecting a decline of RMB 63,542,000[9]. - The group reported a loss before tax of RMB 54,716,000 for the six months ended June 30, 2021, compared to a profit of RMB 8,826,000 in the previous year[54]. - The company reported a total comprehensive income of RMB 1,381,000 for the six months ended June 30, 2021, compared to a total comprehensive loss of RMB 54,716,000 for the same period in 2020[63]. - The company reported a total loss of RMB 12,068,000 for the six months ended June 30, 2021, compared to a loss of RMB 4,315,000 in the same period of 2020[81]. Revenue Breakdown - Retail pork revenue increased by approximately 3.0% to RMB 209,746,000 from RMB 203,627,000 in the previous year, accounting for 64.4% of total revenue[16]. - Wholesale pork revenue decreased by approximately 0.3% to about RMB 103,208,000 from RMB 103,509,000 in the same period last year[19]. - Retail frozen meat revenue decreased by approximately 22.8% to about RMB 10,038,000 from RMB 12,999,000 in the same period last year[20]. - Wholesale commodity pork revenue decreased by approximately 20.4% to about RMB 2,702,000 from RMB 3,395,000 in the same period last year, accounting for about 0.8% of total revenue[21]. - Total revenue for the six months ended June 30, 2021, was RMB 325,694,000, a slight increase of 0.67% compared to RMB 323,530,000 for the same period in 2020[77]. Cost and Profit Margins - Overall unaudited gross profit decreased to approximately RMB 43,771,000 from RMB 50,638,000 in the same period last year, with a gross profit margin decline from 15.7% to 13.4%[26]. - Retail pork gross profit decreased to approximately RMB 33,467,000 from RMB 33,601,000, with a gross profit margin decline from 16.5% to 16.0%[27]. - Wholesale pork gross profit decreased to approximately RMB 9,179,000 from RMB 15,234,000, with a gross profit margin decline from 14.7% to 8.9%[28]. - Retail frozen meat gross profit decreased to approximately RMB 500,000 from RMB 1,336,000, with a gross profit margin decline from 10.3% to 5.0%[29]. Market and Sales Strategy - The overall retail market for food products in China saw a year-on-year increase of 10.5% in the first half of 2021, contributing to improved consumer sentiment[8]. - The company’s sales strategy includes a combination of online and offline channels, which has been effective in enhancing market share and brand recognition[16]. - The company plans to develop high-end pork products and expand product variety and sales channels to meet consumer demand for quality products[22]. - The company plans to open approximately 15 new retail points in high-consumption areas such as Beijing, including 5 stores each for Huashang Supermarket, Huatang Supermarket, and T11 Supermarket[48]. - The group aims to enhance its high-end product sales, particularly focusing on the "Putian Black Pearl" brand to capture market opportunities in the premium pork segment[50]. Assets and Liabilities - As of June 30, 2021, the company's total equity was RMB 639,872,000, a decrease of 7.6% from RMB 692,426,000 as of December 31, 2020[59]. - The total assets less current liabilities as of June 30, 2021, were RMB 668,246,000, a decrease from RMB 716,976,000 as of December 31, 2020[56]. - The company’s total liabilities as of June 30, 2021, were RMB 28,374,000, an increase from RMB 24,550,000 as of December 31, 2020[59]. - The company’s borrowings amounted to RMB 338,853,000 as of June 30, 2021, a decrease of 7.2% from RMB 365,035,000 as of December 31, 2020[125]. - The company’s secured borrowings were RMB 327,479,000 as of June 30, 2021, compared to RMB 355,410,000 as of December 31, 2020, indicating a reduction of 7.8%[125]. Employee and Operational Costs - The group has 483 employees as of June 30, 2021, down from 494 employees a year earlier, with employee costs amounting to RMB 9,402,000[45]. - Employee costs totaled RMB 9,496,000, which includes salaries and other compensations, reflecting an increase from the previous year[91]. - The company has taken measures to strictly control costs to achieve profitability and positive cash flow[68]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules appendix 14, with no known violations reported for the six months ending June 30, 2021[200]. - The roles of Chairman and CEO are held by the same individual, Mr. Cai Chen Yang, which the board believes will not harm the balance of power and authority within the company[200]. - The board expresses full confidence in Mr. Cai Chen Yang's leadership and believes it will greatly benefit the company's business prospects[200]. Shareholder Information - The major shareholder, Cai Chenyang, holds 1,078,440,000 shares, representing 57.09% of the company's issued shares[184]. - The total number of shares held by major shareholders in the company is significant, with the top three shareholders controlling over 62% of the shares[192]. - The company has pledged 816,000,000 shares to Vandi Investments Limited, which accounts for 43.20% of the issued shares[192]. Future Plans and Investments - The company plans to invest more in emerging retail channels and develop a new generation of sales models to increase online sales and group purchasing[49]. - The group intends to expand its production line at the Hebei Xuankua breeding base to increase the output of live pigs[48].

普 PUTIAN CHINA PUTIAN FOOD HOLDING LIMITED 中 國 普 甜 食 品 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 1699 PUTIAN INTERIM REP (0) | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | | CHINA PUTIAN FOOD HOLDING LIMITED 中國普甜食品控股有限公司 领先的垂直一體化豬肉供應商 LEADING VERTICALLY INTEGRATED PORK PRODUCTS SUPPLIER | | | | | T 目 2 公司資料 3 管理 層 討 ...

Financial Performance - In 2019, China Putian Food Holding Limited reported total revenue of RMB 632.3 million, a 22.2% increase from RMB 517.3 million in 2018[11]. - The gross profit for 2019 was RMB 99.1 million, with a gross margin of 15.7%, compared to a gross margin of 10.6% in 2018[15]. - The net profit for 2019 was RMB 58.0 million, a significant recovery from a net loss of RMB 32.1 million in 2018, resulting in a net profit margin of 9.2%[11]. - Retail pork sales contributed RMB 368.9 million to total revenue in 2019, representing a 27.6% increase from RMB 289.3 million in 2018[11]. - The wholesale pork business recorded revenue of approximately RMB 232,818,000, representing a growth of about 27.4% compared to RMB 182,753,000 in 2018, driven by rising pork prices and an increase in wholesale customers[21]. - The group recorded a profit of approximately RMB 57,997,000 for the year ended December 31, 2019, compared to a loss of approximately RMB 32,128,000 for the year ended December 31, 2018, driven by an overall increase in pork product prices leading to a gross margin increase of about 81.1%[52]. - The company's total revenue increased by approximately 22.2% to RMB 632,271,000 for the year ended December 31, 2019, compared to RMB 517,257,000 for the previous year[32]. - Net profit for the reporting period was approximately RMB 57,997,000, a significant recovery from a loss of RMB 32,128,000 in the previous year[32]. Market and Product Development - The company's "Putian Black Pearl" product line accounted for 28% of total revenue during the reporting period, indicating strong market acceptance[19]. - The company plans to continue expanding its high-end pork market presence, particularly in Beijing and Fujian, leveraging successful marketing strategies[19]. - The group aims to enhance the production of local black pig breeds, with a total of approximately 7,040 black pigs produced in Hebei in 2019, an increase of about 2,577 from 2018[22]. - The company plans to continue promoting high-end pork products in 2020, focusing on health and safety standards in response to changing consumer demands[23]. - The company expanded its retail network by adding 8 new supermarket retail points, enhancing market penetration for its "Puyuan Black Pearl" brand[33]. - The company plans to continue optimizing high-end pork products and expanding its product variety and sales channels[43]. Financial Stability and Ratios - The asset-to-liability ratio improved to 64.3% in 2019, down from 73.8% in 2018, reflecting better financial stability[15]. - The current ratio remained stable at 1.0, indicating sufficient liquidity to meet short-term obligations[15]. - The group's debt-to-equity ratio improved to 64.3% as of December 31, 2019, down from 74.4% as of December 31, 2018[57]. - As of December 31, 2019, cash and bank balances were approximately RMB 8,841,000, a slight decrease from RMB 9,091,000 as of December 31, 2018, while net cash generated from operating activities increased to approximately RMB 82,748,000 from RMB 32,874,000[55]. Corporate Governance - The board of directors consists of eight members, including the chairman and CEO, who is responsible for setting long-term strategic goals and evaluating management performance[93]. - The company has maintained compliance with corporate governance codes, ensuring a separation of roles between the chairman and CEO, which is believed to enhance decision-making efficiency[89]. - The independent non-executive directors account for over one-third of the board, ensuring a high level of financial oversight and compliance with regulatory requirements[95]. - The company has implemented internal controls and corporate governance measures to safeguard its financial integrity and operational efficiency[82]. - The board regularly reviews the company's financial and operational performance to discuss and formulate future development plans[92]. - The company is committed to maintaining transparency and effective communication with stakeholders, enhancing corporate governance practices[87]. Risk Management and Internal Controls - The company has adopted a set of internal control policies to safeguard assets and ensure the reliability of financial reporting[191]. - The board believes that the risk management and internal control systems are effective and sufficient to manage risks associated with achieving business objectives[191]. - The internal audit department independently reviews the effectiveness of the company's risk management and internal control systems[192]. - The company has implemented various internal monitoring mechanisms to ensure compliance with listing rules and regulations regarding related transactions[196]. Economic Environment - The overall economic environment in China showed signs of recovery, with GDP growth of approximately 6.1% in 2019, which may positively impact the pork industry[18]. - The average monthly urban unemployment rate in China for 2019 remained between 5.0% and 5.3%, better than the initial target, indicating a stable economic environment[28]. - In 2019, China's GDP growth was 6.1%, with per capita GDP reaching RMB 70,892, approximately USD 10,276, marking a significant economic milestone[28]. - The total grain production in China for 2019 was 660,000,000 tons, maintaining its position as the world's largest producer[29].

Financial Performance - For the six months ended June 30, 2019, China Putian Food Holding Limited reported revenue of approximately RMB 334,097,000, an increase of about 20.8% compared to RMB 276,487,000 for the same period in 2018[8]. - The group's gross profit for the same period was approximately RMB 48,637,000, representing a growth of about 10.2% year-on-year[8]. - Net profit for the review period was approximately RMB 37,420,000, a significant recovery from a net loss of RMB 20,065,000 in the same period last year[8]. - The total revenue for the six months ended June 30, 2019, was approximately RMB 334,097,000, representing an increase of 20.9% compared to RMB 276,487,000 for the same period in 2018[51]. - The gross profit for the same period was RMB 48,637,000, up from RMB 44,154,000 in 2018, indicating a gross margin improvement[51]. - The company's net profit for the period was RMB 37,420,000, compared to a net loss of RMB 20,065,000 in the previous year, marking a significant turnaround[51]. Revenue Breakdown - Retail pork revenue increased by approximately 4.5% to RMB 172,977,000, accounting for 51.8% of total revenue[14]. - Wholesale pork revenue surged by approximately 57.7% to RMB 144,737,000, making up 43.3% of total revenue[15]. - Retail frozen meat revenue decreased by approximately 23.8% to RMB 10,979,000, primarily due to adjustments in sales strategies in response to market conditions[16]. - The wholesale revenue from commodity pigs increased by approximately 12.0% to about RMB 5,404,000, compared to approximately RMB 4,825,000 in the same period last year, accounting for about 1.6% of total revenue during the review period[17]. Cost and Profitability - The overall unaudited gross profit increased from approximately RMB 44,154,000 to about RMB 48,637,000, while the overall gross profit margin decreased from 16.0% to approximately 14.6% due to rising breeding costs and a six-week operational suspension in Putian City[23]. - The gross profit from wholesale pork rose from approximately RMB 13,519,000 to about RMB 18,367,000, but the gross profit margin decreased from 14.7% to approximately 12.7% due to increased breeding costs[25]. - The gross profit from retail frozen meat increased from approximately RMB 646,000 to about RMB 1,276,000, with the gross profit margin rising from 4.5% to approximately 11.6% due to adjustments in sales strategies[27]. - The group has implemented strict cost control measures to ensure profitability and positive cash flow, indicating a focus on operational efficiency[74]. Financial Position - The asset-liability ratio as of June 30, 2019, was 68.5%, down from 73.8% as of December 31, 2018, reflecting improved financial stability[37]. - The total bank borrowings amounted to approximately RMB 158,747,000, with all borrowings due within one year[35]. - The company had capital commitments of approximately RMB 75,781,000 as of June 30, 2019, unchanged from December 31, 2018[46]. - The company’s total liabilities were RMB 60,690,000, slightly down from RMB 61,865,000 in the previous year, showing a decrease of about 1.89%[66]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2019, was RMB 9,635,000, compared to RMB 3,515,000 for the same period in 2018, reflecting a significant increase of approximately 174.5%[70]. - The company reported a net cash outflow from investing activities of RMB 3,304,000 for the first half of 2019, an improvement from RMB 7,130,000 in the same period of 2018[70]. - Financing activities resulted in a net cash outflow of RMB 6,569,000 for the six months ended June 30, 2019, compared to a net inflow of RMB 16,943,000 in the prior year[70]. Shareholder and Financing Activities - The major shareholder, Mr. Cai Chen Yang, is willing to provide financial support to ensure the group's continued operations and debt repayment[74]. - The company is in discussions regarding the further extension of convertible bonds and non-convertible notes that matured on July 15, 2019, indicating ongoing efforts to manage financing needs[73]. - The company proposed to extend the maturity date of its convertible bonds by up to six months from July 15, 2019[124]. Employee and Labor Costs - The workforce consisted of 511 employees, with total labor costs amounting to approximately RMB 11,748,000 for the period, down from RMB 18,194,000 in the previous year[47]. - Total employee costs for the period were RMB 11,748,000, down from RMB 18,194,000 in the previous year, indicating a reduction of approximately 35%[96]. Stock Options and Equity - The company has a stock option plan in place to incentivize employees and retain talent, effective for a period of ten years from July 13, 2012[146]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the effective date of the plan, which translates to 80,000,000 shares[148]. - The company did not recognize any equity-settled share-based payment expenses in the six months ended June 30, 2019, compared to RMB 0 in 2018[186]. Government Support - The group received government subsidies amounting to RMB 4,202,000, a substantial increase from RMB 1,017,000 in the previous year, which supports operational activities[87]. - The group has no current tax liabilities in Hong Kong or China, benefiting from tax exemptions for certain agricultural activities[90][91].

Financial Performance - In 2018, China Putian Food Holding Limited reported a revenue of RMB 517.3 million, a decrease of 3.7% from RMB 537.1 million in 2017[9]. - The gross profit for 2018 was RMB 54.7 million, resulting in a gross margin of 10.6%, down from 18.1% in 2017[13]. - The net loss for 2018 was RMB 32.1 million, compared to a net profit of RMB 7.9 million in 2017, indicating a significant decline in profitability[9]. - Retail pork sales generated RMB 289.3 million in 2018, a decrease of 7.2% from RMB 311.7 million in 2017[11]. - The group's revenue for the year ended December 31, 2018, was approximately RMB 517,257,000, a decrease of about 3.7% from RMB 537,079,000 for the year ended December 31, 2017[27]. - The group recorded a net loss of approximately RMB 32,128,000 for the year, compared to a profit of approximately RMB 7,900,000 in the previous year, primarily due to a gross profit decline of about 43.8%[27]. - Retail pork revenue decreased by approximately 7.2% to about RMB 289,290,000 from RMB 311,734,000 in the previous year, attributed to the implementation of a "white to black" sales strategy and a decline in white pork prices[33]. - The overall gross profit decreased by approximately 43.8% to about RMB 54,736,000 for the year ended December 31, 2018, down from RMB 97,325,000 in 2017[42]. - The gross profit margin for retail pork decreased from approximately 18.3% in 2017 to about 9.7% in 2018[44]. - The gross profit margin for wholesale pork decreased from approximately 17.8% in 2017 to about 10.2% in 2018[45]. Market Strategy and Product Development - The management highlighted the increasing consumer demand for high-end products as a positive market trend despite industry challenges[17]. - The company is focused on enhancing its breeding technology and product diversification in response to market demands[17]. - Future strategies include expanding market presence and improving product offerings to adapt to changing consumer preferences[17]. - The group aims to enhance its black pork product line by developing ready-to-eat, snack, and deep-processed products[20]. - The company is developing innovative products in the black pig business, leveraging its own production capacity, and implementing a "white to black" product strategy to enhance brand competitiveness[84]. - The company has established a more mature online sales platform through its WeChat mall, aiming to increase sales through e-commerce channels such as JD Direct Store and Meiri Fresh[85]. - The company anticipates growth in sales from e-commerce channels in 2019, driven by increased resource investment in various platforms[85]. Retail Expansion - The group plans to expand its retail network, having added new direct-operated stores in Shanghai and increased retail points in major supermarket chains, including Walmart and Carrefour[19]. - The group plans to open 10 new direct-operated stores in 2019 and continue to enhance brand effectiveness through stable expansion strategies[19]. - The company plans to expand its retail points in 2019, adding locations in Walmart Sam's Club, Hema Fresh, and CR OLE, with a goal of opening 10 new directly operated stores[83]. Financial Position and Debt Management - The company's asset-liability ratio increased to 73.8% in 2018, up from 65.6% in 2017, indicating higher financial leverage[13]. - The group had operating lease commitments of approximately RMB 18,403,000 as of December 31, 2018, significantly reduced from RMB 49,511,000 in the previous year[78]. - The group had capital commitments of approximately RMB 75,781,000 as of December 31, 2018, compared to RMB 73,639,000 a year earlier[79]. - As of December 31, 2018, the total interest-bearing bank loans and overdrafts amounted to approximately RMB 158,712,000, a decrease from RMB 167,446,000 in the previous year[69]. - The group's debt-to-equity ratio as of December 31, 2018, was 73.8%, up from 65.6% a year earlier[70]. Corporate Governance - The company reported a commitment to corporate governance, adhering to the latest amendments of the corporate governance code as per the Hong Kong Stock Exchange regulations[105]. - The board believes that the dual role of the chairman and CEO held by Mr. Cai does not compromise the balance of power and authority within the company[107]. - The company has a strong focus on internal controls and corporate governance, ensuring compliance with financial reporting and regulatory requirements[103]. - The company has maintained a commitment to transparency in its operations, enhancing trust with employees, business partners, shareholders, and investors[105]. - The company has a dedicated audit committee, which oversees financial reporting and compliance matters[105]. - The board consists of experienced and capable individuals who regularly meet to discuss operational matters affecting the company[107]. - The company has established a comprehensive internal control system to safeguard its financial integrity[103]. - The company has a diverse board with members possessing extensive experience in finance and management, contributing to effective decision-making[107]. Shareholder Engagement - The company aims to maintain effective communication with shareholders and ensure their opinions are conveyed to the board[134]. - The company held its annual general meeting on June 27, 2018, and a special general meeting on October 5, 2018, to consider matters related to the subscription of new shares[119]. Challenges and Market Conditions - The overall economic pressure in China may impact consumer spending, but the group sees this as an opportunity for industry consolidation[19]. - The group faced challenges due to the African swine fever outbreak, leading to a six-week operational suspension mandated by the local government[27]. - The overall pork production in China increased to 54.04 million tons, but prices fell by 8.1% compared to the previous year[27].