Financial Performance - The Group's turnover for the first half of 2023 was RMB 3,142,785 thousand, representing a 12.4% increase from RMB 2,796,884 thousand in the same period of 2022[133]. - Gross profit for the first half of 2023 was RMB 338,920 thousand, up 10.6% from RMB 306,405 thousand in the first half of 2022[133]. - Profit attributable to shareholders for the first half of 2023 was RMB 40,757 thousand, reflecting a 20.6% increase from RMB 33,802 thousand in the same period of 2022[133]. - The gross profit margin for the first half of 2023 was 10.8%, slightly down from 11.0% in the first half of 2022[133]. - For the first half of 2023, the operating income from the food segment exceeded that of the feed segment for the first time, accounting for 35.8% of the Group's total operating income and 66.4% of its gross profit[122][123]. Trade Receivables and Payables - As of June 30, 2023, trade receivables amounted to RMB 277,633 thousand, an increase from RMB 248,502 thousand as of December 31, 2022, representing a growth of approximately 11.7%[30]. - The allowance for doubtful debts decreased to RMB 8,584 thousand from RMB 9,392 thousand, indicating improved credit quality[30]. - The net trade receivables stood at RMB 269,049 thousand, up from RMB 239,110 thousand, reflecting a growth of about 12.5%[30]. - Trade payables as of June 30, 2023, were RMB 4,983,000, a decrease from RMB 9,326,000 at the end of 2022, showing a reduction of 46.6%[52]. Corporate Governance - The company has undergone changes in its board of directors, with several resignations and new appointments effective from June 30, 2023, which may impact governance and strategic direction[15]. - The company is committed to maintaining strong corporate governance practices, as evidenced by the establishment of various committees and their leadership appointments[20]. - The company emphasizes maintaining high levels of corporate governance to enhance shareholder value and ensure compliance with applicable laws and regulations[56]. - The audit committee comprises independent non-executive directors and is responsible for evaluating financial reporting matters, including the interim results for the six months ended June 30, 2023[95]. Market Position and Strategy - The company is focusing on enhancing its market position through potential new product developments and technology advancements, although specific details were not provided in the extracted content[32]. - The management is optimistic about future growth prospects, particularly in expanding market reach and improving operational efficiencies[32]. - The company plans to continue increasing investments in food production capacity, talent, technology, research and development, and supply chain to strengthen its position in the meat food processing market[125][127]. - The Group's strategy focuses on enhancing corporate efficiency and value while providing safe and healthy products, aiming for sustainable development amidst economic uncertainties[144]. Economic Environment - The macroeconomic environment remains challenging, with China's GDP growing by 5.5% year-on-year, but consumer prices only rising by 0.7%[135][136]. - The company aims to maintain sufficient cash flow to navigate economic downturns and enhance its competitive position[126][128]. Segment Performance - The foods segment achieved double-digit growth, with operating income and gross profit increasing by 11.9% and 14.0% respectively in the first half of 2023[155]. - In the second quarter of 2023, the foods segment's operating income and gross profit grew by 14.9% and 13.6% year-on-year, driven by continued growth in domestic food sales[155]. - The operating income of the feeds segment increased by 7.9% to RMB 1,114,113 thousand, while gross profit rose by 3.8% to RMB 67,595 thousand[182]. - The meat segment's operating income increased by 19.1% to RMB 186,000 thousand, while gross profit grew by 5.5%[186]. Related Party Transactions - The Group had significant related party transactions with subsidiaries and associates, including Beijing Universal Chain Food Co., Ltd. and DaChan Showa Foods (Tianjin) Co., Ltd.[71]. - Management services provided to related parties decreased to RMB 62,000 in the first half of 2023 from RMB 99,000 in 2022, a decline of 37.4%[47]. - Rental services provided to related parties were RMB 738,000 for the six months ended June 30, 2023, compared to RMB 795,000 in 2022, a decrease of 7.2%[47]. Cash Flow and Financial Management - The Group's cash flow management has improved, with a stable increase in cash flow and a safe financial leverage ratio[164]. - The company reported a significant increase in cash and cash equivalents, although specific figures were not provided in the extracted content[33]. Future Developments - The one-stop food production facilities in Bengbu are expected to commence operations in the third quarter of 2023, further supporting the company's strategic focus on food processing[122][123]. - The Group's new food plant, electric slaughtering plant, and feeds plant in Bengbu, Anhui Province are expected to commence production in the third quarter, enhancing market position in the Yangtze River Delta region[151].

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之內容概不負責，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 內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限責任公司） （股份代號：3999） 截至二零二三年六月三十日止六個月中期業績公佈 大成食品（亞洲）有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公司（以下合稱「本集 團」）截至二零二三年六月三十日止六個月的未經會計師審核綜合業績： 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 增減百分比 （未經審核） （未經審核） 經營收入（人民幣千元） 3,142,785 2,796,884 12.4 毛利（人民幣千元） 338,920 306,405 10.6 毛利率(%) 10.8 11.0 ...

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之內容概不負責，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 內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限責任公司） （股份代號：3999） 截至二零二三年三月三十一日止三個月業績公佈 大成食品（亞洲）有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公司（以下合稱「本集 團」）截至二零二三年三月三十一日止三個月的未經會計師審核綜合業績： 財務摘要 截至三月三十一日止三個月 二零二三年 二零二二年 增減百分比 （未經審核） （未經審核） 經營收入（人民幣千元） 1,529,353 1,336,395 14.4 毛利（人民幣千元） 156,469 143,311 9.2 毛利率(%) 10.2 10.7 ...

Financial Performance - For the year ended December 31, 2022, the company's turnover was RMB 6,195,175, a decrease of 33.7% compared to RMB 9,350,465 in 2021[19] - Profit attributable to owners of the company was RMB 91,852, down 40.9% from RMB 155,473 in 2021[19] - The basic profit per share decreased to RMB 0.09, a decline of 40.9% from RMB 0.15 in 2021[19] - The return on total assets was 3.43%, down 41.0% from 5.81% in 2021[19] - Overall profit attributable to equity shareholders decreased by 40.9% to RMB 91,852 from RMB 155,473 in 2021[46] - In 2022, the Group's turnover from continuing operations was RMB 6,195,175, a decrease of 5.1% compared to RMB 6,530,905 in 2021[46] - The gross profit from continuing operations increased by 2.9% to RMB 680,906, with a gross profit margin of 11.0%, up from 10.1% in the previous year[46] - The Group's operating income was approximately RMB6,195,175 thousand, representing a decrease of about 5.1% compared to the restated figure for the previous year[58] - The food segment accounted for 34.7% of total operating income, the feeds segment for 37.8%, and the meat segment for 27.5%[63] - The Group's gross profit was approximately RMB680,906 thousand, reflecting an increase of about 2.9% year-on-year, with the food segment contributing 61.9% to total gross profit[63] Investment and Expansion - The company invested over RMB 1 billion in the Bengbu DaChan Phase II Project to expand chicken breeding, feeds, slaughter, cooked food, and automated cold storage projects[13] - In 2023, the Group plans to launch new food, electrical slaughterhouse, and feeds plants in Bengbu, enhancing its market position in the Yangtze River Delta region[42] - The new Bengbu food factory is expected to commence production in July 2023, supporting the growth of the food segment[77] - The company aims to increase investment in applied research and development to explore new production technologies and expand its product range[78] Market Trends and Economic Outlook - The Chinese economy is expected to experience a new round of growth in 2023, driven by government macro policies following the impact of COVID-19[43] - In 2022, the national catering revenue was RMB 439.41 billion, a decline of 6.3% compared to 2021 due to the pandemic's impact on consumer behavior[48] - The national market supply of live pigs reached 699 million heads in 2022, an increase of 4.3% from the previous year, with pork production at 55.41 million tonnes, up 4.6%[54] - The total number of grandparent breeding chickens in China was approximately 910,000 sets, a 32% decrease year-on-year due to market downturns[55] Operational Efficiency and Strategy - The Group's strategic focus includes enhancing supply chain efficiency and flexibility to better meet customer needs[38] - The Group aims to enhance overall industrial competitiveness and anti-cyclicality through digital transformation and supply chain management optimization[59] - The Group's meat business maintained steady growth in 2022, supported by an optimized operating structure and synergies between food and meat businesses[37] - The food and meat segments showed steady growth due to continued optimization and restructuring of operations[58] Employee and Management Development - The Group emphasizes employee training and development, offering various programs to enhance job skills and industry knowledge[124] - The Group regularly reviews compensation and benefit policies to provide fair and competitive compensation packages[124] - The Group provides additional fringe benefits, including insurance, medical benefits, and provident fund, to retain loyal employees[124] - The Group's management team includes experienced professionals with extensive backgrounds in the food and beverage industry[127][129] - The company has a strong leadership team with members holding significant positions in various subsidiaries and associations related to the food and agriculture sectors[149] Corporate Governance and Financial Management - The company is committed to enhancing corporate governance standards to maintain trust with employees, partners, shareholders, and investors[200] - The company has adopted the latest corporate governance code as per the Hong Kong Stock Exchange Listing Rules to guide its governance practices[200] - The company has maintained a commitment to financial transparency and governance through its independent directors and committees[175][177] - The company has a robust history of financial management, with past executives having significant experience in banking and investment sectors[186]

Financial Performance - For the nine months ended September 30, 2022, the company's operating revenue was approximately RMB 4,512,433 thousand, a decrease of 9% compared to RMB 4,957,866 thousand for the same period in 2021[2] - The gross profit for the same period was RMB 504,235 thousand, showing a slight increase of 0.8% from RMB 500,465 thousand in the previous year, resulting in a gross margin of 11.2%[2] - The profit attributable to shareholders for the nine months was RMB 65,830 thousand, down 33% from RMB 98,305 thousand in the prior year[2] - Basic earnings per share for the nine months was RMB 0.065, compared to RMB 0.097 in the same period last year, reflecting a decrease of 33%[2] - In Q3 2022, the company reported operating revenue of approximately RMB 1,715,549 thousand, an increase of 17.5% from Q2 2022 and a 1.8% increase year-over-year[28] - The profit attributable to shareholders in Q3 2022 was approximately RMB 32,028 thousand, up 13.6% from Q2 2022 and a 42.5% increase compared to the same period last year after excluding Southeast Asia feed business profits[28] Business Challenges - The decline in revenue and profit for the first three quarters was primarily due to the challenges faced by small to medium-sized farms in the feed business, which reduced their inventory or ceased operations due to prolonged low pig prices[29] - Despite a 9.4% year-on-year decline in export revenue due to domestic inflation and low-price competition from Thailand, the food business achieved a gross profit increase of approximately 118.2% year-on-year in the same period[30] - The domestic food revenue growth slowed to approximately 5.6% year-on-year due to the impact of COVID-19 and weak consumer demand[30] - The feed business revenue and gross profit decreased by approximately 22.6% and 36.9% year-on-year, respectively, due to rising raw material costs and a decline in customer breeding volumes[32] Asset Management - As of September 30, 2022, the company's total assets less current liabilities amounted to RMB 2,626,474 thousand, compared to RMB 2,577,075 thousand as of December 31, 2021[14] - The company's non-current assets, including fixed assets, were valued at RMB 1,148,298 thousand as of September 30, 2022, compared to RMB 1,019,618 thousand at the end of 2021[7] - As of September 30, 2022, the company's net assets were approximately RMB 2,331,306 thousand, with cash and cash equivalents accounting for about 18.5% of total assets[35] - The current ratio as of September 30, 2022, was approximately 2.12, slightly down from 2.29 as of December 31, 2021[35] Strategic Focus - The company emphasized a strategy focused on customer retention and supply chain restructuring rather than blind expansion in the current challenging economic environment[28] - The company plans to continue focusing on food business growth, enhance research and development, and optimize supply chain management to improve overall competitiveness and resilience[35] Segment Performance - In the first three quarters of 2022, the food business revenue and gross profit increased by approximately 3.2% and 7.7% year-on-year, respectively[30] - The gross profit of the feed business increased by approximately 65.2% compared to the second quarter of 2022, as the domestic pig prices rebounded in August[32] - The meat business revenue remained stable year-on-year, while gross profit increased by approximately 105.3%[33] - The gross profit of the meat business increased by approximately 34.8% compared to the second quarter of 2022, driven by supply chain restructuring and customer optimization[33]

Economic Performance - In the first half of 2022, China's GDP achieved a year-on-year growth of 2.5% despite significant economic fluctuations due to the pandemic[60]. - The company’s performance in the first half of 2022 reflects its resilience in a volatile economic environment[61]. - The overall performance of the group is comparable to most peers despite the decline in profit from the feed segment[77]. Profitability and Revenue - Profit attributable to shareholders decreased by approximately 52.6% to RMB33,802 thousand, with a 35.5% decrease when excluding profits from the Southeast Asia feed business[75]. - The gross profit margin for the foods segment increased by approximately 10.9% year-on-year despite unfavorable market conditions[78]. - Food export income decreased by about 18.6% in the first half of 2022, but gross profit from food exports increased by approximately 55.7% due to R&D innovation and production automation[78]. - Domestic sales of food experienced a gross profit growth of approximately 7.4% year-on-year, aided by strategic responses to COVID-19 challenges[78]. - The total turnover for processed foods reached RMB 1,003,973,000, representing a 2.4% increase compared to RMB 980,076,000 in the previous year[90]. - The gross profit for processed foods increased by 10.9% year-on-year, totaling RMB 197,280,000[90]. - The gross profit margin for processed foods improved to 19.6%, up from 18.2% in the previous year[90]. - The total profit for reportable segments decreased to RMB 306,405,000 in the first half of 2022 from RMB 446,551,000 in the same period of 2021, reflecting a decline of approximately 31.4%[194]. Challenges and Strategic Responses - The company faced challenges such as rising raw material prices and unstable demand due to COVID-19 and African swine fever outbreaks[60]. - The domestic food consumption growth was impacted by the pandemic, but the company's timely adjustments in sales strategies helped maintain positive growth[61]. - The company emphasized the need for continuous management optimization and robust financial operations to cope with future uncertainties[60]. - The company’s adaptability and quick response to market changes were crucial in sustaining performance during challenging times[61]. - The feeds segment is focusing on R&D to provide higher value feed products and is expanding into niche markets beyond pig feeds[99]. - The meat segment adjusted its operational model to focus on differentiated product development and large customers, achieving results comparable to peers despite unfavorable market conditions[107]. Operational Efficiency and Management - The food business team successfully overcame logistics and distribution issues during the pandemic, providing stable support for operational development[62]. - The company is focusing on optimizing internal organization and enhancing management capabilities to improve competitiveness in a challenging business environment[68]. - The new plant in Bengbu is planned to feature automated production and digital management to strengthen the company's competitiveness[68]. - The management team remains confident in overcoming challenges through continuous improvement in management and competitiveness[69]. - The Group aims to enhance operational efficiency and overall industrial competitiveness through digital transformation and optimized supply chain management[86]. Financial Position and Cash Flow - The Group's cash and bank deposit balances decreased by approximately RMB25,712 thousand to RMB599,347 thousand as of June 30, 2022[114]. - Interest-bearing borrowings increased by approximately RMB33,074 thousand to RMB440,566 thousand, with the interest-bearing borrowings to equity ratio at 19.2%[118]. - Capital expenditure for the first six months of 2022 amounted to approximately RMB73,466 thousand, primarily funded by long-term bank loans[119]. - The Group's interest expense decreased by approximately 31.1% to RMB4,300 thousand, primarily due to a reduction in bank borrowings[121]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 80,719 thousand, compared to RMB 34,586 thousand for the same period in 2021, indicating a significant increase of approximately 133.5%[149]. - The cash generated from operations for the first half of 2022 was RMB 88,110 thousand, compared to RMB 50,373 thousand in the same period of 2021, an increase of approximately 75.1%[149]. Cost Management - Distribution costs were reduced to RMB 143,795,000 in the first half of 2022 from RMB 199,610,000 in 2021, showing a decrease of about 28%[194]. - Administrative expenses decreased to RMB 118,246,000 in the first half of 2022 from RMB 142,859,000 in 2021, a reduction of approximately 17.3%[194]. - Finance costs significantly decreased to RMB 4,300,000 in the first half of 2022 from RMB 11,965,000 in 2021, indicating a reduction of about 64%[194]. Market Focus and Product Development - The Group plans to focus on food as the leading segment while maintaining stable sales in feeds and diversifying market risks through product diversification[86]. - The Group is increasing efforts in developing direct sales customers and enhancing promotion of family-sized products across various retail channels[94]. - The Group is committed to product innovation by exploring new production technologies and expanding its product range to meet market demand[94]. Discontinued Operations - The Group disposed of subsidiaries in Vietnam and Malaysia in Q4 2021 to focus on its business in Mainland China, with the financial results of these subsidiaries presented as discontinued operations[200]. Accounting and Reporting - The interim financial report does not include all information required for a full set of financial statements prepared in accordance with IFRS, highlighting the need for caution in interpreting the data[162]. - The auditors expressed an unqualified opinion on the statutory financial statements for the year ended December 31, 2021, affirming the reliability of the financial reporting[163].

Financial Performance - The company's operating revenue for Q1 2022 was approximately RMB 1,336,395 thousand, a decrease of about 17% compared to the same period last year[11]. - Shareholders' profit attributable to the company was approximately RMB 5,599 thousand, down approximately 91.9% year-on-year[11]. - The gross profit margin decreased to 10.7% from 12.5% in the previous year[4]. - The decline in revenue and profit was primarily due to rising raw material prices and losses in pig farming, leading to reduced feed sales[11]. - Export revenue decreased by approximately 31.9% due to economic downturns in Japan and low-priced competition from Thailand[12]. - In the first quarter, the feed business reported a revenue decline of approximately 29.4% and a gross profit decline of 43.4% compared to the same period last year[13]. - The meat business experienced a revenue decline of about 12.9% and a gross profit decline of 70.4% year-over-year, primarily due to falling chicken prices and rising feed costs[14]. Asset and Liability Management - The net asset value of the company as of March 31, 2022, was RMB 2,279,688 thousand, an increase from RMB 2,269,547 thousand at the end of 2021[9]. - The company reported a decrease in total liabilities from RMB 864,186 thousand to RMB 783,796 thousand[6]. - As of March 31, 2022, the company's net assets were approximately RMB 2,279,688 thousand, with cash and cash equivalents accounting for about 16.6% of total assets[15]. - The current ratio as of March 31, 2022, was approximately 2.42, slightly up from 2.29 on December 31, 2021[15]. - The ratio of interest-bearing debt to equity was approximately 16.5% as of March 31, 2022, down from 18.0% at the end of 2021[15]. Strategic Initiatives - The company is actively seeking opportunities in the food sector by targeting potential customers less affected by the pandemic, such as community group purchases[12]. - The food team is focusing on product innovation and exploring new processes to enrich product variety[12]. - The company plans to enhance its retail business by promoting family-sized products through e-commerce platforms and community convenience stores[12]. - The company is focusing on product diversification to mitigate market risks and improve operational efficiency across its food, feed, and meat businesses[15]. - The company is actively developing niche products and expanding into markets beyond pig feed to enrich its product offerings[14]. - The company plans to strategically eliminate underperforming farms and reduce breeding and slaughtering scales to mitigate losses in the meat business[14]. Market Conditions and Challenges - The ongoing impact of the COVID-19 pandemic and geopolitical tensions are expected to continue affecting the global and domestic economy[15]. - The company is committed to digital transformation and enhancing supply chain management to strengthen overall industry competitiveness and risk resilience[15].

DaChan Food (Asia) Limited 大 成 食 品（亞洲）有 限 公 司 (incorporated in the Cayman Islands with limited liability) (於同曼群島註冊成立的有限公司) Stock Code 股份代號: 3999 ANNUAL REPORT 年報 2021 大成 享受安心美食 目錄 Contents | --- | --- | --- | |------------------------|-------|------------------------------------------------| | 公司介紹 | 2 | Corporate Profile | | 財務摘要 | 5 | Financial Highlights | | 主席報告 | 6 | Chairman's Statement | | 管理層討論與分析 | 10 | Management Discussion and Analysis | | 董事及高級管理人員履歷 | 25 | Directors and Senior Management Profil ...

Market Conditions - The export markets in Southeast Asia and Japan continue to be affected by the pandemic, while the Chinese market shows stability and improvement due to effective vaccination efforts[17]. - The price of pigs has reached record lows, impacting chicken meat prices, with a pessimistic outlook for the chicken market in the second half of 2021[18]. - Rising costs of feeds and commodities are expected due to the recovery of the global economy, alongside long-term trends of increasing wages and labor shortages[18]. - Domestic food prices in China fell by 0.2% in the first half of 2021, influenced by a 19.3% average decrease in pork prices over nine consecutive months[41]. Financial Performance - The company's turnover for the first half of 2021 was RMB 5,100,261, representing a year-on-year increase of 20.7% compared to RMB 4,227,285 in 2020[28]. - Gross profit decreased to RMB 446,551, down 5.9% from RMB 474,400 in the previous year, resulting in a gross profit margin of 8.8% compared to 11.2% in 2020[28]. - Profit attributable to shareholders was RMB 71,347, reflecting a decline of 16.2% from RMB 85,144 in the same period last year[28]. - The total operating income for the first six months of 2021 was RMB 3,291,395 thousand, representing a 32.1% increase from RMB 2,491,614 thousand in 2020[58]. - The Group's profit for the period was RMB 94,420 thousand, down approximately 30.1% from RMB 135,059 thousand in the first half of 2020[100]. - The total comprehensive income for the period was RMB 97,935 thousand, a decrease of approximately 26.3% from RMB 132,806 thousand in the same period of 2020[100]. Segment Performance - Domestic sales of the food segment increased by approximately 28% year-on-year, despite export sales declining by approximately 28.2% due to the impact of COVID-19 in Japan[35]. - The overall operating revenue of the food segment grew by approximately 12.7% year-on-year, with gross profit remaining stable compared to the previous year[35]. - The domestic feed segment's overall sales increased by approximately 15% year-on-year, with gross profit rising by approximately 18.1%[36]. - The processed food segment's turnover in Mainland China increased by 30.4% year-on-year to RMB 820,350 thousand, while export turnover decreased by 33.6% to RMB 159,726 thousand[49]. - The gross profit margin for the processed food segment in Mainland China was 20.1%, down from 22.0% in the previous year[49]. - The meat product segment's gross profit decreased slightly by approximately 9% year-on-year despite significant cost increases[41]. Strategic Initiatives - The company plans to accelerate its transformation and upgrade efforts, focusing on consolidating its feed business and developing processed food products[20]. - Emphasis will be placed on research and development to reduce feed costs and launch high-value-added products[20]. - The company aims to enhance breeding efficiency through improved breeding techniques and feed upgrades, while expanding sales channels[20]. - Short-term focus will be on upgrading existing flagship products and long-term focus on developing new products in the processed food sector[20]. - The overall strategy includes leveraging information technology to improve supply chain efficiency[20]. - The company plans to enhance its product offerings by developing new products and upgrading existing ones, particularly in processed foods[22]. Cost Management - The company is actively introducing solutions to help customers control costs in the feed segment, particularly in response to high raw material prices[36]. - The gross profit of Southeast Asia's feeds segment dropped by approximately 27.5% year-on-year due to rising raw material costs, while feed sales increased by approximately 20% year-on-year[39]. Investments and Assets - The Group is progressing with a major investment in a new plant in Bengbu, which is expected to enhance its foodization strategy[45]. - Capital expenditure for the first half of 2021 amounted to approximately RMB 54,566 thousand, primarily funded by long-term bank loans[82]. - The Group acquired fixed assets at a cost of RMB 54,566,000 for the six months ended 30 June 2021, a decrease of 16.5% compared to RMB 65,471,000 for the same period in 2020[186]. Cash Flow and Liquidity - As of June 30, 2021, the cash and bank deposits balance was approximately RMB 678,566 thousand, an increase of RMB 47,196 thousand from December 31, 2020[77]. - The company reported a net cash generated from operating activities of RMB 34,586 thousand for the six months ended June 30, 2021, compared to RMB 97,117 thousand for the same period in 2020, a decrease of 64.3%[117]. - The Group's current ratio was approximately 1.64 times, indicating a healthy liquidity position compared to 1.56 times as of December 31, 2020[81]. Taxation and Compliance - The company continues to benefit from a preferential tax rate of 15% for certain subsidiaries due to their high-tech enterprise status, compared to the standard rate of 25%[164]. - The applicable corporate income tax rate for the company's subsidiary in Malaysia was 24% for the six months ended June 30, 2021, unchanged from the same period in 2020[166]. - The corporate income tax rate for Asia Nutrition Technologies (MV) Co., Ltd. was 20% for the six months ended June 30, 2021, consistent with the previous year[175]. Inventory and Receivables - Trade receivables as of 30 June 2021 amounted to RMB 303,773,000, down from RMB 325,882,000 at the end of 2020, reflecting a decrease of 6.8%[192]. - The allowance for doubtful debts decreased to RMB 17,284,000 from RMB 24,360,000, indicating improved credit quality[192]. - Deposits and prepayments increased significantly to RMB 300,672,000 from RMB 195,596,000, indicating higher advance payments to suppliers[198].

Financial Performance - For the year ended December 31, 2020, the turnover increased by 15.5% to RMB 9,278,864,000 compared to RMB 8,035,206,000 in 2019[15] - Profit attributable to owners of the Company rose by 51.8% to RMB 202,890,000 from RMB 133,683,000 in the previous year[15] - Total assets increased by 7.0% to RMB 4,329,284,000, while net assets grew by 12.9% to RMB 2,272,303,000[15] - Basic profit per share increased by 53.8% to RMB 0.20, up from RMB 0.13 in 2019[15] - Return on total assets improved to 7.02%, a 37.9% increase from 5.09% in 2019[15] - The gearing ratio decreased by 19.4% to 35.4% from 43.9% in the previous year, indicating improved financial stability[15] - Gross profit for 2020 reached RMB 1,025,518, reflecting a 4.5% increase from RMB 981,575 in 2019[40] - The gross profit margin decreased to 11.1% in 2020 from 12.2% in 2019[40] - The Group's operating income for 2020 was approximately RMB 9,278,864 thousand, representing a year-on-year increase of about 15.5%[53] - The gross profit amounted to approximately RMB 1,025,518 thousand, reflecting a growth of approximately 4.5% compared to the previous year[56] - The gross profit margin for the total feeds segment was 9.4%, down from 10.0% the previous year[75] - Gross profit increased by approximately 19.9% to RMB 413,383,000 in 2020 from RMB 344,836,000 in 2019[83] - Gross profit margin improved to 21.8% in 2020 from 16.9% in 2019[83] - The gross profit from Mainland China increased by 22.5% to RMB 353,001,000 in 2020 from RMB 288,198,000 in 2019[83] Market and Operational Challenges - The outbreak of COVID-19 severely impacted the domestic economic activities, particularly affecting the white feather meat chicken industry, leading to a 63% year-on-year drop in the price of day-old chicks[42] - The comprehensive price of feather chickens and chicken meat products fell by approximately 24% and 19% year-on-year, respectively[42] - The company actively supported farmers during the pandemic by ensuring feed supply and contract recovery of processed chickens[44] - The Group successfully compensated for declining sales in traditional channels by increasing sales through new channels such as e-commerce and community group buying[47] Strategic Initiatives and Product Development - The Company focuses on developing new high value-added products by utilizing the latest food technology to meet changing market demands[9] - The Group emphasizes quality control and has implemented a traceability system for its products, enhancing consumer trust[12] - The Group plans to invest approximately RMB 1 billion to build a new food processing plant with a monthly capacity of 4,000 tons in Bengbu City, Anhui Province, expected to be operational by the end of 2022[94] - The Group aims to enhance product competitiveness by concentrating resources on product research and development in the professional catering market[94] - The Group's strategic focus includes integrating the broiler industry chain and enhancing vertical integration with upstream breeding operations[52] Employee and Management Information - The Group had a total of 10,470 employees as of 31 December 2020, an increase from 9,900 employees in 2019[111] - The company has a diverse management team with extensive experience in the food industry and technology sectors[120] - The board includes members with significant experience in both traditional industries and information technology management[120] - Mr. Wei, Chun-hsien has been appointed as an executive director and chairman of the board since March 1, 2021[115] - Mr. Wei Anning has extensive experience in the integration of finance and the agricultural and livestock food industry, with a deep understanding of its development and corporate governance[133] Corporate Governance - The Company is committed to enhancing corporate governance standards and improving transparency to maintain trust with employees, partners, shareholders, and investors[155] - The Company has adopted a corporate governance code based on the latest revised code on corporate governance as set out in the Listing Rules[155] - Throughout the year ended December 31, 2020, the Company has complied with the Code Provisions with certain exceptions[155] - The Board comprised 8 Directors, all being industry veterans, responsible for formulating business development targets and long-term company strategies during the period from January 1, 2020, to March 1, 2020[164] - The Company has maintained a mechanism that allows the Company Secretary to promptly access information regarding the Group's developments without material delay[157] - The independent non-executive Directors have reviewed the Confirmation regarding the Deed of Non-Competition and are satisfied with the compliance during the review period[160] - The Company has fully complied with the relevant code provisions and Listing Rules following the appointment of Mr. Ting Yu-Shan[161] Financial Management - The Group's interest-bearing borrowings decreased by approximately RMB77,971 thousand to approximately RMB804,651 thousand as of 31 December 2020, compared to approximately RMB882,622 thousand in 2019, resulting in an interest-bearing borrowings to equity ratio of approximately 35.4%[98] - The Group's capital expenditure on the acquisition of properties, machinery, and equipment amounted to approximately RMB208,578 thousand in 2020, primarily funded by internal resources and bank borrowings[100] - The Group's interest expense in 2020 was approximately RMB31,336 thousand, a decrease of approximately 31.7% from RMB45,860 thousand in 2019, mainly due to decreasing borrowing rates[106] Sales and Marketing Strategies - The company launched family-sized products and utilized various channels such as live e-commerce and community group purchases to adapt to changing consumer habits[45] - The processed food segment's sales channels include group catering, bakery, casual catering, takeaways, and retail markets, covering regions such as Japan, Singapore, and various areas in China[87] - The development of community group buying platforms has successfully launched "Sisters' Kitchen" products on all top ten platforms in China[91]