DEKON FOOD AND AGRICULTURE GROUP 四川德康農牧食品集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代碼：2419） 董事名單及其角色與職責 四川德康農牧食品集團股份有限公司的董事會（「董事會」）成員如下。 執行董事 王德根先生 （董事長） 王德輝先生 （副董事長） 姚海龍先生 胡偉先生 曾民先生 獨立非執行董事 潘鷹先生 朱慶先生 馮志偉先生 董事會下設三個董事委員會。下表載列各董事會成員於該等委員會所擔任的職務資 料。 | 董事 | 董事委員會 | 審計委員會 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 王德根先生 | | | M | | | 王德輝先生 | | | | | | 姚海龍先生 | | | | | | 胡偉先生 | | | | | | 曾民先生 | | | | | | 劉珊女士 | | M | | M | | 潘鷹先生 | | | C | M | | 朱慶先生 | | M | | C | | 馮志偉先生 | | C | M | | 非執行董事 劉珊女士 附註： C 相關董事委員會主席 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 茲提述四川德康農牧食品集團股份有限公司（「本公司」）日期為2025年6月13日的公 告，內容有關本公司若干股東持有的本公司若干內資股完成全流通（「H股全流通」） 及《中華人民共和國公司法》（「公司法」，自2024年7月1日起生效）的頒佈。 本公司董事（「董事」）會（「董事會」）謹此宣佈，董事會已審議及批准對本公司章程 （「章程」）作出若干建議修訂（「建議修訂」）的決議案，以反映(i)H股全流通完成後的 本公司股本結構；(ii)公司法的規定；及(iii)加入若干內務修訂。 股東務請注意，章程以中文撰寫。倘章程中英文版本有歧義，概以中文版本為準。 本公司將以特別決議案方式，在於2025年9月15日舉行的股東特別大會（「股東特別 大會」）上提呈建議修訂章程的決議案，以供股東審議及批准。建議修訂的詳情將載 於在適時寄發予股東的股東週年大會通函。 DEKON FOOD AND AGRICULTURE GROUP 四 ...

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) [Key Operating Data](index=1&type=section&id=Key%20Operating%20Data) For the six months ended June 30, 2025, the company's hog sales significantly increased, with commercial hog sales growing by 23.4% year-on-year and average selling prices slightly rising; poultry business saw yellow-feathered broiler sales increase by 7.2% year-on-year, but average selling prices decreased by 19.1% H1 2025 Key Product Sales and Average Selling Prices | Product | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Hog Sales** | | | | | Commercial Hog Sales (head) | 4,843,040 | 3,925,495 | +23.4% | | Commercial Hog Average Price (CNY/head) | 2,032.7 | 1,964.1 | +3.5% | | **Poultry Sales** | | | | | Yellow-Feathered Broiler Sales (unit) | 42,703,302 | 39,839,536 | +7.2% | | Yellow-Feathered Broiler Average Price (CNY/unit) | 30.5 | 37.7 | -19.1% | [Key Financial Data](index=2&type=section&id=Key%20Financial%20Data) In H1 2025, the company's total revenue increased by 24.3% to **CNY 11.70 billion**; despite revenue growth, profit for the period decreased by 24.1% to **CNY 1.36 billion** due to a significant reduction in fair value gains on biological assets, yet profit before fair value adjustments of biological assets surged by 250.6%, reflecting strong core operational improvement H1 2025 Key Financial Indicators | Indicator | H1 2025 (CNY Thousand) | H1 2024 (CNY Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 11,695,381 | 9,407,081 | +24.3% | | Profit Before Tax | 1,360,479 | 1,791,714 | -24.1% | | Profit for the Period | 1,360,367 | 1,791,381 | -24.1% | | Profit Attributable to Equity Holders of the Company | 1,292,387 | 1,766,453 | -26.8% | | Earnings Per Share (CNY) | 3.32 | 4.54 | -26.9% | | Profit for the Period Before Fair Value Adjustments of Biological Assets | 1,273,072 | 363,125 | +250.6% | [Financial Statements](index=3&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the company's revenue reached **CNY 11.70 billion**, a 24.3% year-on-year increase, with gross profit surging by 74.0% to **CNY 2.03 billion**; however, operating profit and profit for the period declined due to fair value gains on biological assets sharply decreasing from **CNY 1.43 billion** in the prior period to **CNY 0.087 billion** this year Consolidated Statement of Profit or Loss Summary | Item | H1 2025 (CNY Thousand) | H1 2024 (CNY Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 11,695,381 | 9,407,081 | +24.3% | | Cost of Sales | (9,666,196) | (8,241,133) | +17.3% | | **Gross Profit** | **2,029,185** | **1,165,948** | **+74.0%** | | Fair Value Change of Biological Assets | 87,295 | 1,428,256 | -93.9% | | Operating Profit | 1,518,391 | 2,015,268 | -24.7% | | **Profit for the Period** | **1,360,474** | **1,791,381** | **-24.1%** | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were **CNY 23.90 billion**, a 4.1% increase from end-2024; total liabilities were **CNY 14.31 billion**, a slight decrease; net assets grew by 11.7% to **CNY 9.59 billion** due to period profit, indicating an improved financial structure Consolidated Statement of Financial Position Summary | Item | June 30, 2025 (CNY Thousand) | December 31, 2024 (CNY Thousand) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **23,900,612** | **23,056,050** | **+3.7%** | | Current Assets | 12,221,274 | 11,765,263 | +3.9% | | Non-current Assets | 11,679,338 | 11,290,787 | +3.4% | | **Total Liabilities** | **14,306,777** | **14,470,709** | **-1.1%** | | Current Liabilities | 8,878,682 | 9,063,349 | -2.0% | | Non-current Liabilities | 5,428,095 | 5,407,360 | +0.4% | | **Net Assets** | **9,593,835** | **8,585,341** | **+11.7%** | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Company Overview and Market Overview](index=14&type=section&id=Company%20Overview%20and%20Market%20Overview) The company is a leading livestock and poultry farming enterprise in China, with core businesses in hog and yellow-feathered broiler breeding and farming, adopting a vertically integrated business model; in H1 2025, the hog industry showed good profitability with macro-control expected to improve future supply-demand, while the poultry industry faced price declines due to weak consumption but anticipates demand improvement in H2 - The company's core business is hog and yellow-feathered broiler farming, utilizing a vertically integrated model covering feed production, breeding, farming, and sales, complemented by a 'family farm' expansion model[29](index=29&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Hog market: Since early 2025, hog prices have been above the cost line, with breeding sow inventory slightly above normal levels, and policy guidance is expected to improve the supply-demand landscape in 2026[34](index=34&type=chunk) - Poultry market: Industry concentration has increased, but during the reporting period, poultry meat prices declined due to weak consumer demand influenced by the macro economy, with performance expected to improve in H2 driven by holidays[35](index=35&type=chunk) [Operating Performance](index=16&type=section&id=Operating%20Performance) In H1 2025, the company's overall operating performance was strong, with revenue growing by 24.3% year-on-year and profit before fair value adjustments of biological assets surging by 250.6%; the hog segment was the primary growth driver with double-digit increases in both revenue and sales, while the poultry segment's revenue declined due to market price drops, and the ancillary products segment showed steady growth Revenue Performance by Business Segment | Business Segment | H1 2025 Revenue (CNY Million) | Y-o-Y Change | | :--- | :--- | :--- | | Hog Segment | 9,878.8 | +32.6% | | Poultry Segment | 1,335.5 | -13.5% | | Ancillary Products Segment | 481.1 | +16.1% | - Hog segment growth primarily benefited from advanced independent breeding systems, precise nutrition technology, efficient management, and disease prevention, demonstrating significant anti-cyclical capability[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Poultry segment revenue decline was mainly due to a 20.9% year-on-year decrease in average selling price of yellow-feathered broilers caused by weak consumption in the catering industry, despite a 7.2% increase in sales volume[43](index=43&type=chunk) - The company empowers farmers through its innovative 'new-style family farm' model, which saw PSY (pigs weaned per sow per year) increase to **27 heads** during the reporting period, demonstrating industry-leading farming efficiency[42](index=42&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) The company's financial position significantly improved in H1 2025, with revenue growing by 24.3% and gross profit margin increasing from 12.4% to 17.4%, primarily due to reduced production costs; finance costs decreased by 32.3% due to lower interest rates and reduced borrowings, while liquidity and quick ratios improved, and the net debt-to-equity ratio substantially decreased from 26.2% to 15.1%, indicating enhanced solvency and a more robust financial structure - Overall gross profit margin increased from **12.4%** in the prior period to **17.4%**, primarily due to reduced production costs (especially feed and raw materials) and improved management efficiency[47](index=47&type=chunk) - Finance costs decreased by **32.3%** year-on-year, mainly due to lower bank borrowing interest rates and a reduction in total loans[52](index=52&type=chunk) Changes in Key Financial Ratios | Financial Ratio | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.4 | 1.0 | | Quick Ratio | 1.3 | 0.9 | | Net Debt-to-Equity Ratio | 15.1% | 91.9% | - Net cash generated from operating activities was **CNY 1.74 billion**, a 15.0% year-on-year increase, indicating enhanced cash-generating capability from core operations[60](index=60&type=chunk) [Major Risks and Uncertainties](index=28&type=section&id=Major%20Risks%20and%20Uncertainties) The company faces major risks including epidemic diseases and market price fluctuations; it has implemented strict biosecurity protocols and disease eradication programs to mitigate epidemic risks, and uses enhanced operational capabilities, financial derivatives, and optimized feed cost control technologies to hedge against price volatility - One major risk is epidemic diseases, such as African Swine Fever and avian influenza; the company mitigates this risk through stringent biosecurity measures, immunization, and careful farm site selection[74](index=74&type=chunk)[75](index=75&type=chunk) - Another major risk is the cyclical price fluctuations of hog and poultry products ('hog cycle', 'chicken cycle') and feed raw material price volatility; the company addresses this through operational improvements, financial derivatives, and feed formulation adjustments[76](index=76&type=chunk) [Outlook](index=30&type=section&id=Outlook) In H2 2025, the company will continue to focus on efficiency improvement, cost reduction, and high-quality development; the hog segment will deepen its 'farmer-empowerment' model, the poultry segment anticipates increased market demand and will enhance farming efficiency, and the ancillary products segment will improve slaughtering business operational efficiency and expand markets; additionally, the company plans to utilize hog futures for risk hedging and continue investing in ESG initiatives - Hog Segment: Will continue to deepen the 'leading enterprise driving small and medium-sized farms' family farm model, focusing on the Southwest market to consolidate brand influence[77](index=77&type=chunk) - Poultry Segment: Anticipates increased demand in H2, will enhance farming efficiency, reduce costs, and strengthen distribution channels[77](index=77&type=chunk) - Ancillary Products Segment: Will enhance the profitability of its slaughtering business, focus on chilled and cured products, and build a high-quality food ecosystem[80](index=80&type=chunk) - Risk Management: Plans to effectively utilize hog futures hedging tools to mitigate operational risks[80](index=80&type=chunk) [Corporate Governance and Other Information](index=31&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Human Resources](index=27&type=section&id=Human%20Resources) As of June 30, 2025, the company had **10,904 employees**, with a scientific compensation system and full social security and housing provident fund contributions; during the reporting period, the company focused on talent development, adopting an 'internal growth primary, external recruitment supplementary' strategy, and conducted multi-dimensional training sessions totaling over **350,000 attendances** to support business growth - As of June 30, 2025, the total number of employees was **10,904**, an increase from **9,978** in the prior period[72](index=72&type=chunk) - Total remuneration during the reporting period was approximately **CNY 0.791 billion**, a 17.0% year-on-year increase[18](index=18&type=chunk)[79](index=79&type=chunk) - The company emphasizes talent development, with over **350,000 training attendances** during the reporting period, and introduced professional consulting teams to empower 'AI + systematic management transformation'[73](index=73&type=chunk) [Dividend Policy](index=13&type=section&id=Dividend%20Policy) The Board resolved not to declare any interim dividend for the six months ended June 30, 2025; however, the company paid a final dividend for the previous fiscal year (2024) totaling **CNY 0.35 billion** during the reporting period - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[28](index=28&type=chunk)[82](index=82&type=chunk) - During the reporting period, the company approved and paid the final dividend for the previous fiscal year, totaling **CNY 0.35 billion**[28](index=28&type=chunk) [Use of Proceeds from Listing](index=32&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company listed on December 6, 2023, with net proceeds from global offering of approximately **HKD 0.953 billion**; as of June 30, 2025, approximately **HKD 0.727 billion** has been utilized, primarily for expanding farming operations, developing food processing businesses, and repaying bank loans, with approximately **HKD 0.226 billion** remaining for planned use Use of Proceeds from Listing (As of June 30, 2025) | Purpose | Planned Amount (HKD Million) | Amount Utilized (HKD Million) | Amount Unutilized (HKD Million) | | :--- | :--- | :--- | :--- | | Expansion of Farming Business | 476.3 | 381.0 | 95.3 | | Development of Food Processing Business | 142.9 | 142.9 | 0 | | R&D Investment and Information Technology | 95.3 | 92.3 | 3.0 | | Repayment of Bank Loans | 47.6 | 47.6 | 0 | | Others | 190.6 | 63.3 | 127.3 | | **Total** | **952.5** | **727.1** | **225.6** |

Group 1 - The core viewpoint is that chicken prices are gradually rebounding due to reduced supply since mid-July, leading to improved profitability for farmers and increased willingness to restock [1][2] - In July, the average price of chicken seedlings was 1.41 yuan per chick, down 43% year-on-year and 38% month-on-month; the average price of live chickens was 6.52 yuan per kilogram, down 12% year-on-year and 9.2% month-on-month [1] - The demand for chicken seedlings is overall positive due to the upcoming school season, although the supply of chicken seedlings has decreased due to increased culling of breeding chickens [1] Group 2 - The price of yellow feathered chickens has shown signs of recovery in late July, with expectations for a favorable market in August [3] - The average price of fast-growing chickens in July was 3.94 yuan per pound, down 19.6% year-on-year but up 3.2% month-on-month; the average price of Xueshan grass chickens was 6.43 yuan per pound, down 27% year-on-year but up 5% month-on-month [3] - The cost of raising yellow feathered chickens has decreased significantly, with costs for leading companies falling to around 5.6 yuan per pound, indicating potential for substantial profit release as prices recover [3][4] Group 3 - The supply of parent stock chickens is expected to tighten in the second half of 2025 due to a significant decrease in overseas imports, which will also affect the supply of commercial broiler chicks in 2026 [2][4] - The current inventory of parent stock chickens is at a historically low level, which may lead to a contraction in supply and set the stage for future price increases [4] - The long-term outlook for the yellow feathered chicken market remains positive, driven by changing consumer habits, implementation of sales bans, and economic recovery boosting consumption [4]

Core Viewpoint - Dekang's pig farming business shows strong performance in the first half of 2025, with per-head profitability leading the industry, while poultry and meat business performance meets expectations. The company actively responds to national calls for high-quality development in the breeding industry, showcasing its responsibility as a leading pig enterprise [1][2]. Group 1: Financial Performance - The company is expected to achieve a net profit of 1.1 to 1.4 billion yuan in the first half of 2025, representing a year-on-year increase of 202% to 285% [2]. - The company anticipates a pig output of approximately 5.117 million heads in the first half of 2025, a year-on-year increase of 27%, with a sales price of about 15 yuan per kilogram [2]. - The estimated total cost for pig farming is around 12.4 yuan per kilogram, leading to a per-head profit of approximately 300 to 320 yuan, placing it at the forefront of the industry [2]. Group 2: Business Segments - In the poultry segment, the company expects to sell 42.7 million yellow feathered chickens in the first half of 2025, a year-on-year increase of 7.2%, with a sales price of about 12.89 yuan per kilogram [2]. - The high-quality slow-growing yellow feathered chicken accounts for a significant proportion of the company's offerings, although the segment is currently under pressure due to low prices [2]. - The high-end meat business, in collaboration with Tonnis, is expected to start production in 2024 and is currently in the capacity ramp-up phase, with no short-term profit contribution anticipated [2]. Group 3: Industry Outlook - The pig farming industry is gradually moving towards high-quality development, supported by policies, with leading companies expected to gain excess profits due to cost advantages [3]. - The yellow feathered chicken industry has seen significant capacity reduction after three years of downturn, providing a basis for price recovery, although the industry is currently facing deep losses due to low prices [3]. Group 4: Investment Rating - The company maintains a "strong buy" investment rating, leveraging its breeding advantages to keep livestock costs lower than peers [4]. - The company's self-bred Dekang E breed pigs have significantly reduced costs, with total costs estimated to be below 12.5 yuan per kilogram, placing it in the top tier of the industry [4]. - The company plans to develop its family farm model while promoting shared industry development benefits with cooperative farmers, aligning with national calls for responsible leadership in the pig farming sector [4].

Sales Performance - In July 2025, the company sold 780,200 pigs, including 741,900 commercial pigs, generating a revenue of RMB 1.427 billion [1] - The average selling price of commercial pigs in July 2025 was RMB 14.21 per kilogram, a decrease of 0.70% compared to June 2025 [1] - For the seven months ending July 31, 2025, the company sold a total of 5,897,500 pigs, with 5,586,200 being commercial pigs, resulting in a total revenue of RMB 11.449 billion [1] Poultry Sales - In July 2025, the company sold 7,382,600 yellow-feathered broilers, achieving a revenue of RMB 204 million [1] - The average selling price of yellow-feathered broilers in July 2025 was RMB 12.04 per kilogram, down by 6.52% from June 2025 [1] - For the seven months ending July 31, 2025, the company sold 50,085,900 yellow-feathered broilers, generating a total revenue of RMB 1.506 billion [1]

Core Viewpoint - Dekang Agriculture and Animal Husbandry (02419.HK) reported its sales performance for July 2025, indicating a decline in average selling prices for both pork and chicken products compared to the previous month [1] Sales Performance - In July 2025, the company sold 780.18 thousand pigs, generating sales revenue of RMB 1,426.71 million [1] - The average selling price for commercial pigs in July 2025 was RMB 14.21 per kilogram, a decrease of 0.70% from June 2025 [1] - For the seven months ending July 31, 2025, the company sold a total of 5,897.54 thousand pigs, with a revenue of RMB 11,449.27 million [1] Poultry Sales - In July 2025, the company sold 7,382.58 thousand yellow-feathered broilers, resulting in sales revenue of RMB 203.50 million [1] - The average selling price for yellow-feathered broilers in July 2025 was RMB 12.04 per kilogram, down 6.52% from June 2025 [1] - For the seven months ending July 31, 2025, the company sold 50,085.88 thousand yellow-feathered broilers, achieving a revenue of RMB 1,506.16 million [1]

Core Viewpoint - Decon Agriculture (02419) reported its sales performance for July 2025, indicating a decline in average selling prices for both pork and chicken products compared to the previous month [1] Sales Performance - In July 2025, the company sold 780,200 pigs, including 741,900 commercial pigs, generating sales revenue of RMB 1.427 billion [1] - The average selling price for commercial pigs in July 2025 was RMB 14.21 per kilogram, a decrease of 0.70% from June 2025 [1] - For the seven months ending July 31, 2025, the company sold a total of 5.8975 million pigs, with 5.5862 million being commercial pigs, resulting in total sales revenue of RMB 11.449 billion [1] Poultry Sales - In July 2025, the company sold 7.3826 million yellow-feathered broilers, achieving sales revenue of RMB 204 million [1] - The average selling price for yellow-feathered broilers in July 2025 was RMB 12.04 per kilogram, down 6.52% from June 2025 [1] - For the seven months ending July 31, 2025, the company sold a total of 50.0859 million yellow-feathered broilers, generating sales revenue of RMB 1.506 billion [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 DEKON FOOD AND AGRICULTURE GROUP 四川德康農牧食品集團股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代碼：2419） 自願公告 2025年7月運營快報 本公告乃四川德康農牧食品集團股份有限公司（「本公司」，連同其附屬公司，「本集 團」）作出的自願公告。 本公司董事會（「董事會」）謹此宣佈，本集團2025年7月的主要運營數據（未經審核） 如下： 生豬板塊 | | | | | | 商品肉豬 | | --- | --- | --- | --- | --- | --- | | | 生豬銷量 | | 銷售收入 | | 平均售價 | | | | | | | （人民幣 | | | （千頭） 本期間數量 | 本年累計數量 | （人民幣百萬元） 本期間金額 | 本年累計金額 | 元╱公斤） | | 2024年6月 | 698.35 | 4,026.14 | 1,611.37 ...

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][6]. Core Views - The company has shown impressive performance in its pig farming business, with per-head profitability leading the industry. The poultry and meat business performance met expectations. The company is actively responding to national policies promoting high-quality development in the farming industry, sharing the benefits of industrial growth with partner farmers, and demonstrating its responsibility as a leading player in the sector [1][6]. - The company is expected to achieve a significant increase in net profit for the first half of 2025, estimated between 1.1 billion to 1.4 billion yuan, representing a year-on-year growth of 202% to 285%. This growth is attributed to improved management efficiency, enhanced economies of scale, and a continuous decline in pig farming costs [6][12]. - The company is positioned to gain excess profits due to its cost advantages in pig farming, with expectations for a recovery in the poultry market in the second half of the year. The report highlights the potential for the company to leverage its breeding advantages to maintain a leading position in the industry [6][12]. Financial Data and Valuation - The company’s total revenue is projected to grow from 16.155 billion yuan in 2023 to 42.802 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 29% [2][13]. - The operating profit is expected to recover from a loss of 1.297 billion yuan in 2023 to a profit of 6.995 billion yuan by 2027, indicating a significant turnaround [2][13]. - The net profit attributable to shareholders is forecasted to increase from a loss of 1.775 billion yuan in 2023 to 8.332 billion yuan in 2027, reflecting a strong recovery trajectory [2][15]. - The report provides earnings per share (EPS) estimates of 10.02 yuan for 2025, 14.64 yuan for 2026, and 21.43 yuan for 2027, indicating a positive outlook for profitability [2][15]. Business Segments - In the pig farming segment, the company is expected to sell approximately 5.117 million pigs in the first half of 2025, with an average selling price of about 15 yuan per kilogram, leading to a per-head profit of approximately 300 to 320 yuan, which is among the highest in the industry [6][12]. - The poultry segment, specifically the yellow feathered chicken business, is projected to see a slight increase in output, with the company focusing on enhancing the quality and market share of its products [6][12].