Core Viewpoint - Dachen Foods (03999.HK) reported a mid-term performance for the six months ending June 30, 2025, showing a revenue of 2.909 billion RMB, which represents a year-on-year increase of 4.11%. However, the company faced a shareholder loss of 35.07 million RMB, contrasting with a profit of 31.575 million RMB in the same period last year, resulting in a basic loss per share of 0.035 RMB [1]. Financial Performance - Revenue for the period reached 2.909 billion RMB, marking a 4.11% increase compared to the previous year [1]. - The company reported a shareholder loss of 35.07 million RMB, a significant decline from the profit of 31.575 million RMB recorded in the same period last year [1]. - Basic loss per share was reported at 0.035 RMB [1].

[Announcement Overview](index=1&type=section&id=Announcement%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a 4.1% increase in operating revenue but a significant decline in gross profit and a shift from profit to loss for equity holders for the six months ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,909,838 | 2,794,444 | 4.1 | | Gross Profit | 305,500 | 362,471 | -15.7 | | Gross Profit Margin (%) | 10.5 | 13.0 | | | (Loss) / Profit Attributable to Equity Holders of the Company | (35,070) | 31,575 | -211.1 | | Basic (Loss) / Earnings Per Share (RMB) | (0.035) | 0.031 | | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Operating revenue increased to RMB 2,909,388 thousand, but a 15.7% decline in gross profit and a shift to a loss of RMB 35,070 thousand for equity holders were reported for the six months ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Revenue | 2,909,388 | 2,794,444 | | Cost of Sales | (2,604,338) | (2,431,973) | | Gross Profit | 305,500 | 362,471 | | Operating (Loss) / Profit | (12,317) | 68,266 | | (Loss) / Profit for the Period | (26,415) | 48,028 | | (Loss) / Profit Attributable to Equity Holders of the Company | (35,070) | 31,575 | | Basic and Diluted (Loss) / Earnings Per Share (RMB) | (0.035) | 0.031 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) A loss for the period of RMB 26,415 thousand, combined with exchange differences, resulted in a total comprehensive loss of RMB 24,792 thousand for the six months ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | (Loss) / Profit for the Period | (26,415) | 48,028 | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries | 1,623 | (1,246) | | Total Comprehensive Income for the Period | (24,792) | 46,782 | | Attributable to Equity Holders of the Company | (33,330) | 30,197 | | Non-controlling Interests | 8,538 | 16,585 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets and net assets decreased, with net current assets falling to RMB 472,712 thousand due to reduced inventories and receivables, while interest-bearing borrowings decreased and the current ratio remained stable as of June 30, 2025 | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 2,170,428 | 2,209,335 | | Current Assets | 1,516,880 | 1,670,355 | | Current Liabilities | 1,044,168 | 1,079,364 | | Net Current Assets | 472,712 | 590,991 | | Total Assets Less Current Liabilities | 2,643,140 | 2,800,326 | | Non-current Liabilities | 244,557 | 370,635 | | Net Assets | 2,398,583 | 2,429,691 | | Total Equity Attributable to Equity Holders of the Company | 2,137,382 | 2,170,712 | | Total Equity | 2,398,583 | 2,429,691 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Presentation](index=6&type=section&id=Basis%20of%20Presentation) This interim financial report is prepared under HKEX Listing Rules and IAS 34, applying consistent accounting policies with the 2024 annual financial statements, except for anticipated 2025 changes - This interim financial report complies with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34[8](index=8&type=chunk) - The report is prepared based on management's judgments, estimates, and assumptions, and actual results may differ from these estimates[8](index=8&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied IFRS 21 (Revised) on exchange rate changes, which had no significant impact on its performance or financial position during this accounting period - The Group has applied International Accounting Standard 21 (Revised), which did not have a significant impact on the financial statements[9](index=9&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective[10](index=10&type=chunk) [Operating Revenue and Segment Reporting](index=7&type=section&id=Operating%20Revenue%20and%20Segment%20Reporting) The Group's three segments are processed food, livestock feed, and meat products, with processed food generating the highest revenue and most gross profit for the six months ended June 30, 2025 | Segment | 2025 Operating Revenue (RMB thousands) | 2024 Operating Revenue (RMB thousands) | 2025 Segment Gross Profit (RMB thousands) | 2024 Segment Gross Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Processed Food | 1,302,264 | 1,249,661 | 227,719 | 268,719 | | Livestock Feed | 826,528 | 827,086 | 55,150 | 69,205 | | Meat Products | 781,046 | 717,697 | 22,631 | 24,547 | | Total | 2,909,838 | 2,794,444 | 305,500 | 362,471 | - The Processed Food segment primarily produces and distributes reprocessed or ready-to-eat meat products, mainly chicken[14](index=14&type=chunk) - The Livestock Feed segment produces and distributes complete feed, base mix feed, and premix feed for pigs, laying hens, broilers, ducks, and breeding poultry[14](index=14&type=chunk) - The Meat Products segment engages in broiler breeding, hatching of broiler eggs, contract farming, and processing and trading of chilled and frozen chicken meat[14](index=14&type=chunk) [Other Operating Income and Other Net (Losses) / Gains](index=8&type=section&id=Other%20Operating%20Income%20and%20Other%20Net%20(Losses)%20%2F%20Gains) Other operating income slightly decreased, while other net gains turned into net losses in the first half of 2025, primarily due to foreign exchange losses and asset disposals | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Other Operating Income** | | | | Interest Income | 2,688 | 4,441 | | Government Grants | 4,028 | 2,509 | | Rental Income | 3,644 | 3,767 | | **Total** | **10,360** | **10,717** | | **Other Net (Losses) / Gains** | | | | Foreign Exchange (Losses) / Gains | (711) | 1,858 | | Net (Losses) / Gains on Disposal of Property, Plant and Equipment | (2,554) | (1,738) | | Others | (3,402) | 635 | | **Total** | **(6,667)** | **755** | [(Loss) / Profit Before Tax](index=8&type=section&id=(Loss)%20%2F%20Profit%20Before%20Tax) The Group reported a loss before tax of RMB 18,212 thousand for the six months ended June 30, 2025, a shift from profit, driven by increased depreciation and inventory write-downs despite reduced finance costs | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Costs | (7,416) | (13,008) | | Amortisation of Prepaid Lease Payments | (2,175) | (2,163) | | Depreciation of Property, Plant and Equipment | (90,721) | (78,822) | | Net Reversal / (Provision) for Impairment of Trade Receivables | 813 | (619) | | Net (Recognition) / Reversal of Write-down of Inventories | (4,154) | 13,111 | [Income Tax](index=9&type=section&id=Income%20Tax) Income tax expense was RMB 8,203 thousand for the six months ended June 30, 2025, with varying tax rates applied across different jurisdictions, including 25% for Mainland China and 16.5% for Hong Kong | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax | (7,354) | (6,404) | | Deferred Tax | (849) | (2,220) | | Total | (8,203) | (8,624) | - Mainland China companies are subject to a corporate income tax rate of **25%**[17](index=17&type=chunk) - Hong Kong profits tax is calculated at **16.5%**, with the first HKD 2 million for eligible companies taxed at **8.25%**[17](index=17&type=chunk) [(Loss) / Earnings Per Share](index=10&type=section&id=(Loss)%20%2F%20Earnings%20Per%20Share) Basic loss per share was RMB 0.035 as of June 30, 2025, a shift from prior year's earnings, primarily due to the loss attributable to ordinary equity holders | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | (Loss) / Profit Attributable to Ordinary Equity Holders of the Company (RMB thousands) | (35,070) | 31,575 | | Weighted Average Number of Ordinary Shares in Issue | 1,016,189,000 | 1,016,189,000 | | Basic (Loss) / Earnings Per Share (RMB) | (0.035) | 0.031 | - There were no potential dilutive ordinary shares outstanding during the period, thus diluted earnings per share were the same as basic earnings per share[18](index=18&type=chunk) [Property, Plant and Equipment](index=10&type=section&id=Property%2C%20Plant%20and%20Equipment) Cost of purchases of property, plant and equipment decreased to RMB 68,668 thousand in the first half of 2025, with disposals resulting in a loss of RMB 2,554 thousand | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Purchases of Property, Plant and Equipment | 68,668 | 98,284 | | Net Book Value of Property, Plant and Equipment Disposed Of | 843 | 1,145 | | Loss on Disposal | 2,554 | 1,738 | [Trade Receivables](index=10&type=section&id=Trade%20Receivables) Total trade receivables slightly decreased to RMB 255,027 thousand as of June 30, 2025, with an increase in overdue amounts but a reduction in doubtful debt provision | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current | 233,820 | 243,896 | | Overdue 1 to 180 days | 21,951 | 19,292 | | Overdue 181 to 365 days | 1,892 | 2,437 | | Overdue over 365 days | 5,616 | 4,509 | | Total Overdue Amount | 29,459 | 26,238 | | Less: Provision for Doubtful Debts | (8,252) | (9,049) | | Total | 255,027 | 261,085 | - The Group generally allows customers a credit period of **30-60 days**[20](index=20&type=chunk) [Other Receivables and Prepayments](index=11&type=section&id=Other%20Receivables%20and%20Prepayments) Total other receivables and prepayments decreased to RMB 228,814 thousand as of June 30, 2025, mainly due to reduced recoverable VAT and deposits | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Recoverable Value Added Tax | 240,553 | 245,785 | | Deposits and Prepayments | 71,393 | 77,964 | | Advances to Employees | 3,482 | 3,262 | | Others | 11,565 | 9,326 | | Total | 326,993 | 336,337 | | Less: Non-current Recoverable Value Added Tax | 98,179 | 98,179 | | Net Amount | 228,814 | 238,158 | [Trade Payables](index=11&type=section&id=Trade%20Payables) Total trade payables decreased to RMB 387,347 thousand as of June 30, 2025, with reductions in both current and short-term overdue amounts | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current | 200,750 | 234,542 | | Overdue less than 30 days | 143,534 | 182,338 | | Overdue 31 to 60 days | 25,729 | 18,961 | | Overdue 61 to 90 days | 8,517 | 4,056 | | Overdue over 90 days | 8,817 | 5,976 | | Total Overdue Amount | 186,597 | 211,331 | | Total | 387,347 | 445,873 | [Other Payables](index=12&type=section&id=Other%20Payables) Total other payables decreased to RMB 332,364 thousand as of June 30, 2025, mainly due to reduced sales rebates, salaries, and performance deposits | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales Rebates | 17,034 | 23,859 | | Salaries, Wages, Bonuses and Other Welfare Payables | 54,925 | 67,375 | | Accrued Expenses | 103,420 | 100,458 | | Performance Deposits | 49,667 | 64,168 | | Payables for Purchases of Property, Plant and Equipment | 62,920 | 66,270 | | Amounts Due to Related Parties | 42,600 | 42,600 | | Others | 1,798 | 11,635 | | Total | 332,364 | 376,365 | [Dividends](index=12&type=section&id=Dividends) No interim dividend was declared for the six months ended June 30, 2025, consistent with the prior year - No interim dividend was declared for the six months ended June 30, 2025[24](index=24&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Review](index=13&type=section&id=Performance%20Review) Operating revenue grew 4.1% in H1 2025, but a shift to loss for equity holders was driven by falling chicken prices, while the processed food segment showed resilience with 4.2% growth and operating cash flow remained positive | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,909,838 | 2,794,444 | 4.1 | | Gross Profit | 305,500 | 362,471 | -15.7 | | Gross Profit Margin (%) | 10.5 | 13.0 | | | (Loss) / Profit Attributable to Equity Holders of the Company | (35,070) | 31,575 | -211.1 | - The primary reason for the loss was the significant drop in chicken prices due to supply-demand imbalance in the domestic broiler industry, leading to substantial losses in the slaughtering business[26](index=26&type=chunk) - The Processed Food segment achieved a year-on-year growth of **4.2%** in the first half, serving as a core business support[26](index=26&type=chunk) - Net cash inflow from operating activities reached **RMB 60 million** in the first half[26](index=26&type=chunk) [Processed Food Segment](index=16&type=section&id=Processed%20Food%20Segment) Operating revenue for the Processed Food segment grew 4.2% in H1, but gross profit fell 15.3% due to competition, prompting cost reduction, R&D investment, and market expansion efforts | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,302,264 | 1,249,661 | 4.2 | | Total Gross Profit | 227,719 | 268,719 | -15.3 | | Total Gross Profit Margin (%) | 17.5 | 21.5 | | - In the second quarter, the food business operating revenue increased by **8.8%** year-on-year, while gross profit decreased by **5.6%** year-on-year, a narrower decline compared to the first quarter[33](index=33&type=chunk) - The domestic sales team collaborates across R&D, quality control, procurement, and production departments to drive cost reduction and efficiency improvements for key products, while increasing investment in R&D, supply chain, quality control, and digitalization[34](index=34&type=chunk) - The export sales team continues to deepen its presence in the Japanese market, actively expanding new product categories, channels, and customers, and intensifying development efforts in export markets beyond Japan[35](index=35&type=chunk) [Livestock Feed Segment](index=17&type=section&id=Livestock%20Feed%20Segment) Operating revenue for the Livestock Feed segment was flat in H1, but gross profit fell 20.3%, prompting deeper cooperation with large farms, expansion into niche feed, and cost efficiency through integration | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 826,528 | 827,086 | -0.1 | | Gross Profit | 55,150 | 69,205 | -20.3 | | Gross Profit Margin (%) | 6.7 | 8.4 | | - In the second quarter, the feed business operating revenue increased by **3.8%** year-on-year, while gross profit decreased by **13.8%** year-on-year, a narrower decline compared to the first quarter[37](index=37&type=chunk) - Actively adjusting operating strategies, deepening cooperation with medium-to-large farms, and increasing R&D investment and channel expansion for niche feed categories like ruminant feed[37](index=37&type=chunk) - Accelerating middle-platform functional integration, strengthening cross-departmental collaboration, and achieving cost reduction and efficiency improvements through measures such as using alternative raw materials[37](index=37&type=chunk) [Meat Products Segment](index=18&type=section&id=Meat%20Products%20Segment) Operating revenue for the Meat Products segment grew 8.8% in H1, but gross profit fell 7.8% due to declining chicken prices, prompting a shift to a sales-driven model, refined processing, and channel expansion | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Operating Revenue | 781,046 | 717,697 | 8.8 | | Gross Profit | 22,631 | 24,547 | -7.8 | | Gross Profit Margin (%) | 2.9 | 3.4 | | - In the second quarter, the meat products business operating revenue increased by **12.7%** year-on-year, while gross profit decreased by **40.5%** year-on-year[40](index=40&type=chunk) - The business model is shifting from "production-driven" to "sales-driven" to increase supply chain flexibility[40](index=40&type=chunk) - Optimizing cooperation with contract farmers, promoting production automation and lean management, focusing on refined processing and differentiated product development, and collaborating with the food business to expand into high-quality channels[40](index=40&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) Cash and bank balances decreased, interest-bearing borrowings declined, and capital expenditure was funded by long-term bank loans in H1 2025, while the RMB appreciated, interest expenses reduced, and the Group maintained stable ratios with capital commitments - Other operating income amounted to **RMB 10,360 thousand**, and other net losses were **RMB 6,667 thousand**, primarily impacted by foreign exchange losses and net losses on disposal of property, plant and equipment[41](index=41&type=chunk) | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and Bank Balances | 402,391 | 469,747 | | Interest-bearing Borrowings | 508,234 | 567,237 | | Interest-bearing Borrowings to Equity Ratio | 21.2% | 23.3% | | Current Ratio | 1.45 times | 1.55 times | - Capital expenditure in the first half was **RMB 68,668 thousand**, primarily for purchases of property, plant and equipment, funded by long-term bank loans[43](index=43&type=chunk) - The RMB appreciated by **0.42%** against the USD, with no significant impact on the Group's operations[44](index=44&type=chunk) - Interest expenses decreased by **43.0%** to **RMB 7,416 thousand**, mainly due to interest subsidies received for borrowings related to the Bengbu new plant project[45](index=45&type=chunk) - As of June 30, 2025, the Group had no assets pledged as collateral for bank credit facilities[46](index=46&type=chunk) - As of June 30, 2025, contracted but unprovided capital expenditure amounted to **RMB 120,449 thousand**, and authorized but uncontracted capital expenditure was **RMB 39,947 thousand**[47](index=47&type=chunk) [Market Environment and Strategic Outlook](index=13&type=section&id=Market%20Environment%20and%20Strategic%20Outlook) Facing global uncertainties and domestic overcapacity, the company is shifting focus to processed food investment, reducing broiler and feed inputs, and enhancing digital capabilities, while anticipating improved economic conditions and pursuing a "scaled food, value-added meat, diversified feed" strategy in H2 - The global economy faces multiple uncertainties, including trade frictions, tariff wars, technological barriers, and geopolitical conflicts[27](index=27&type=chunk) - Domestic economic structural overcapacity and insufficient effective demand have not been fundamentally alleviated, with slow recovery in catering channel demand[27](index=27&type=chunk) - The domestic white feather broiler industry faces oversupply, low chicken prices, and suppressed profit margins due to low pork prices weakening the chicken substitution effect[28](index=28&type=chunk) - The company's strategy focuses on investment in processed food production, R&D, and sales, reducing resource allocation to broiler farming, slaughtering, and feed processing, with processed food leading performance growth[28](index=28&type=chunk) - Advancing agile organizational structure, digital system upgrades, professional talent pipeline development, and the penetration of a "customer-centric" corporate culture to achieve deep business model transformation[29](index=29&type=chunk) - Looking ahead to the second half, the domestic economic fundamentals are expected to continue to improve, and the supply-demand relationship in the white feather broiler industry may gradually improve[30](index=30&type=chunk) - Future strategic directions include: 1) using the food business as a performance growth engine; 2) optimizing the meat products business operating model to be "sales-driven" and developing high value-added products; 3) expanding diversified channels and developing new customers for the feed business[30](index=30&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Employee Remuneration and Training](index=20&type=section&id=Employee%20Remuneration%20and%20Training) As of June 30, 2025, the Group had 8,264 employees, offering competitive remuneration and focusing on training and development to enhance skills and meet business needs - As of June 30, 2025, the Group had **8,264** employees[48](index=48&type=chunk) - The company provides competitive remuneration based on industry practice, financial performance, and employee work performance, offering various training programs to enhance employee skills and knowledge[48](index=48&type=chunk) [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The company complied with the Corporate Governance Code, with the Chairman and CEO roles combined for efficiency, and the company secretary, though external, ensures compliance through designated contacts - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Wei Junxian, a structure the Board believes facilitates business strategy execution and enhances operational efficiency[49](index=49&type=chunk) - Ms. Cao Yiping, the company secretary, is a partner at an external legal firm and ensures timely access to Group development information through a designated senior management contact, complying with listing rule requirements[50](index=50&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted a code for directors' securities transactions, no less exacting than Listing Rules Appendix C3, with all directors confirming compliance during the reporting period - The company has adopted a code no less exacting than the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[51](index=51&type=chunk) - All directors confirmed compliance with the Standard Code and the company's code of conduct throughout the reporting period[51](index=51&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities for the six months ended June 30, 2025 - Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities for the six months ended June 30, 2025[52](index=52&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Audit Committee, comprising independent non-executive directors, reviewed the interim results and accounting policies, providing oversight on financial reporting, internal control, and risk management systems - The Audit Committee is responsible for evaluating financial statements and providing opinions on financial reporting, internal control, and risk management systems[53](index=53&type=chunk) - The Audit Committee has reviewed the interim results and raised no objections to the accounting policies adopted by the company[53](index=53&type=chunk) - The Audit Committee members include Mr. Ding Yushan (Chairman), Mr. Hsia Lii-Yan, Ms. Tsai Yu-Ling, and Mr. Kao Kung-Lien, all of whom are independent non-executive directors[53](index=53&type=chunk) [Board Composition](index=22&type=section&id=Board%20Composition) As of the announcement date, the Board of Directors consists of two executive directors, five non-executive directors, and four independent non-executive directors - The Board of Directors comprises **2** executive directors, **5** non-executive directors, and **4** independent non-executive directors[55](index=55&type=chunk)

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03999 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,016,189,000 | | 0 | | 1,016,189,000 | | 增加 / 減少 (-) | | | | 0 | | 0 | | | | 本月底結存 | | | | 1,016,189,000 | | 0 | | 1,016,189,000 | 公司名稱: 大成食品（亞洲）有限公司（於開曼群島註冊成立之有限公司） 呈交日期: 2025年8月 ...

Financial Performance - For the first quarter of 2025, the company's operating revenue was RMB 1,404,526 thousand, a slight decrease of 0.1% compared to RMB 1,406,070 thousand in the same period last year[3]. - The gross profit for the first quarter was RMB 150,138 thousand, down 21.1% from RMB 190,370 thousand year-on-year, resulting in a gross margin of 10.7% compared to 13.5% last year[3][4]. - The company reported a loss attributable to shareholders of RMB 12,286 thousand, a significant decline of 145.8% from a profit of RMB 26,850 thousand in the previous year[3][4]. Business Segments - The processed food business accounted for 44.6% of total revenue and 71.1% of total gross profit, making it the largest revenue and profit source for the group[7]. - The sales volume of the processed food business grew by 5.1%, but revenue and gross profit decreased by 0.3% and 24% respectively due to price declines amid oversupply in the market[8]. - The feed business experienced a revenue and gross profit decline of 3.7% and 25.6% respectively, attributed to a shrinking customer base in the pig feed sector[9]. - The company's meat business revenue and gross profit increased by 4.7% and 28.2% respectively compared to the same period last year[10]. Strategic Focus - The company is focusing on long-term strategies including R&D, supply chain improvements, and digitalization to enhance competitiveness despite short-term profitability pressures[8]. - The company is actively expanding its export markets, particularly in Japan, while also seeking to diversify into markets outside Japan to reduce concentration risks[8]. - The company aims to optimize its operational model in the meat business, focusing on high-value customer development to enhance the value per chicken[11]. - The company plans to diversify its feed business through product structure optimization and channel diversification to effectively mitigate market risks[11]. - The company is committed to digital and intelligent transformation to enhance supply chain management and operational efficiency[11]. - The company is actively investing in the research and development of small feed categories and expanding channels to cultivate new markets beyond pig feed[10]. - The company is transitioning its business model from production-driven to demand-driven to improve market competitiveness[10]. - The company will continue to leverage its food business as a growth engine while solidifying the foundation of its feed business[11]. Financial Position - As of March 31, 2025, total assets minus current liabilities stood at RMB 2,704,825 thousand, down from RMB 2,800,326 thousand at the end of 2024[6]. - The company's net asset value was RMB 2,421,065 thousand, slightly down from RMB 2,429,691 thousand at the end of the previous year[6]. - As of March 31, 2025, the company's net assets amounted to RMB 2,421,065 thousand, with cash and cash equivalents accounting for 9.8% of total assets[12]. - The current ratio as of March 31, 2025, was 1.51, slightly down from 1.55 on December 31, 2024[12]. - The ratio of interest-bearing borrowings to equity was 22.7% as of March 31, 2025, down from 23.3% on December 31, 2024[12].

Financial Performance - For the year ended December 31, 2024, the operating income decreased by 9.1% to RMB5,834,604, compared to RMB6,418,966 in 2023[15]. - Profit attributable to owners increased by 25.1% to RMB58,831, up from RMB47,024 in 2023[15]. - Total assets rose by 2.5% to RMB3,879,690, while net assets increased by 2.0% to RMB2,429,691[15]. - Basic profit per share improved by 25.1% to RMB0.06, compared to RMB0.05 in the previous year[15]. - The return on total assets increased to 2.17%, up from 1.99% in 2023, reflecting a 9.1% improvement[15]. - In 2024, the company's turnover decreased by 9.1% to RMB 5,834,604, while gross profit increased by 10.7% to RMB 733,407, resulting in a gross profit margin of 12.6%[55]. - Profit attributable to equity shareholders rose by 25.1% to RMB 58,831 compared to RMB 47,024 in 2023[55]. Business Segments - The feed business accounted for 44.1% of total turnover in 2024, while meat and processed foods contributed 26.4% and 29.5% respectively[19]. - In 2024, the operating income of the food segment grew by 11% year-on-year, accounting for 44% of the Company's total operating income and 71% of its gross profit[28][30]. - The processed foods business accounted for 44.1% of total operating income and 71.2% of total gross profit, demonstrating its role as the largest revenue and profit source for the Group[67][68]. - The operating income and gross profit of processed foods increased by 10.7% and 9.2% respectively year-on-year, with fourth-quarter growth of 8.7% and 5.5%[71]. - The feeds business experienced a significant decline, with operating income down 24.0% year-on-year and gross profit decreasing by 6.3%[79][80]. - The domestic food business saw operating income and gross profit increase by 9.4% and 10.1% respectively, despite a slow recovery in the domestic catering market[73][75]. - The export food business achieved a notable increase in operating income of 21.5% year-on-year, although gross profit only rose by 2.2%[74][76]. - In 2024, the operating income of the meat product business decreased by 15.9% year-on-year, while gross profit increased by 116.1% year-on-year[84][86]. - The gross profit margin for the meat product business improved to 4.4% in 2024 from 1.7% in 2023[84]. Strategic Initiatives - The Company has restructured its business model to focus on downstream food processing while downscaling upstream breeding operations to mitigate price fluctuation risks in the white feather broiler market[26][40]. - The Company is prioritizing investments in food supply chain, research and development, and digital operations to strengthen its position in the food processing industry[34][36]. - The Company aims to develop healthier and tastier fully-cooked products while promoting antibiotics-free and additive-free measures along the supply chain[33][35]. - The Company is focusing on building core competitiveness in two regions: the Yangtze River Delta with Bengbu as the core and northeast China with Dalian as the core[34][36]. - The Company is committed to optimizing its supply chain by aligning with customer demands and reducing risks associated with market fluctuations[38][40]. - The Company has emphasized cash management and prudent financial operations to navigate the challenging external environment[39][41]. - The Company is investing in automation and digitalization to enhance production efficiency and decision-making capabilities[44]. - Future strategies include expanding food production capacity and developing high-quality, cost-effective products to meet growing market demand for processed foods[77]. - The company plans to focus on food product development and enhance the value of meat products to mitigate the impact of market fluctuations[51]. - The company will continue to diversify its feed products and channels to counter risks associated with the hog cycle and market changes[51]. Governance and Management - The company was awarded an A grade in the Wind ESG rating in July 2024, reflecting its commitment to sustainable development and corporate governance[48]. - The company emphasizes the importance of corporate social responsibility and aims to provide safe and healthy food products to consumers[52]. - The strategic focus remains on downstream food processing rather than upstream scale expansion, ensuring synergistic development across the industrial chain[59]. - The company has a diverse board with members holding degrees from prestigious institutions, enhancing its strategic decision-making capabilities[139][141][146]. - The company emphasizes the integration of finance with the agricultural sector, which may lead to innovative investment strategies[134]. - The board's composition includes professionals with extensive experience in financial advisory and accounting, ensuring robust financial oversight[140][145]. - The company is focused on enhancing its governance structure through the appointment of experienced independent directors[140][147]. - The strategic appointments made in 2023 reflect the company's commitment to improving its operational and governance frameworks[140][145][147]. - The Company has adopted the latest corporate governance code as guidelines for its governance practices[167]. - The Board believes that good corporate governance is essential for maintaining trust with employees, partners, shareholders, and investors[166]. Financial Position - The Group's cash and bank deposit balances decreased by RMB57,193 thousand to RMB469,747 thousand as of December 31, 2024[94]. - The net cash generated from operations in 2024 was RMB306,153 thousand, a decrease of RMB101,099 thousand from 2023[94]. - Interest-bearing borrowings increased by RMB37,158 thousand to RMB567,237 thousand in 2024, with the interest-bearing borrowings to equity ratio at 23.3%[94]. - The Group's interest expense rose by 30.6% to RMB23,168 thousand in 2024, primarily due to an increase in average outstanding borrowings[98]. - The Group recorded other operating income of RMB24,930 thousand in 2024, a slight decrease from RMB25,192 thousand in 2023[90]. - Distribution costs accounted for 6.11% of total turnover in 2024, up from 5.26% in 2023[93]. - The Group's capital expenditure in 2024 amounted to RMB335,465 thousand, primarily funded by internal resources and bank borrowings[101]. - As of December 31, 2024, the Group's contracted capital expenditure not provided in the financial statements was RMB 45,114 thousand, a decrease of 36% from RMB 70,827 thousand in 2023[108]. - The capital expenditure authorized but not contracted for was RMB 93,814 thousand, down 58.7% from RMB 227,107 thousand in 2023[108]. Human Resources - The Group had a total of 8,324 employees as of December 31, 2024, representing an increase of 4.4% from 7,972 employees in 2023[109]. Leadership - Mr. Han Chia-Yau has been the chairman of GWE since 2001 and has been a non-executive director since 2007[123]. - Mr. Harn Jia-Chen has over 30 years of experience in the Asia Pacific feed and food production business[131]. - Mr. Han Jia-Hwan was elected as one of the Taiwan Ten Outstanding Young Persons in 1994 for his contributions to the agricultural industry[131]. - Mr. Harn Jia-Chen has been a member of the remuneration committee since January 2019[127]. - Mr. Han Jia-Hwan has served as the chairman of multiple subsidiaries including DaChan Wanda (Tianjin) Co., Ltd. since 1999[131]. - Mr. Harn Jia-Chen obtained his master's degree in business administration from the University of New Haven in 1986[128]. - Mr. Han Jia-Hwan received his master's degree in business administration from the University of Chicago in 1983[132]. - Mr. Harn Jia-Chen has been a member of the nomination committee since 2007[127]. - Mr. Han Jia-Hwan has been a non-executive director since January 2019 after serving as an executive director from 2007 to 2018[131]. - Mr. Wei An-Ning has extensive experience in the agricultural and food sectors, having held various leadership roles in financial and agricultural institutions[133]. - Mr. Wei Anning has extensive experience in finance and the agricultural and livestock food industry, having held various executive roles and directorships in multiple companies[134]. - Mr. Ting Yu-Shan has been appointed as the chairman of the audit committee effective from June 30, 2023, showcasing the company's commitment to strong governance[140]. - Mr. Hsia, Li-Yan has been appointed as the chairman of the remuneration committee effective from June 30, 2023, indicating a focus on executive compensation oversight[145]. - Ms. Lee Tsai, Yu-Ling has been appointed as the chairlady of the nomination committee effective from June 30, 2023, reflecting the company's emphasis on board diversity and governance[147]. - Mr. Gao Kong-Lian has been appointed as an independent non-executive director effective from June 30, 2023, bringing significant academic and industry experience to the board[150].

Financial Performance - The operating revenue for the year ended December 31, 2024, was RMB 5,834,604, a decrease of 9.1% compared to RMB 6,418,966 in 2023[3] - Gross profit increased by 10.7% to RMB 733,407, with a gross margin of 12.6%, up from 10.3% in the previous year[3] - Profit attributable to shareholders rose by 25.1% to RMB 58,831, compared to RMB 47,024 in 2023[3] - Basic earnings per share increased to RMB 0.058 from RMB 0.046, reflecting improved profitability[5] - The total segment operating income for 2024 is 7,217,226, down from 8,154,471 in 2023, indicating a decrease of about 11.5%[20] - The group reported a net profit of 84,312 for 2024, compared to 75,380 in 2023, indicating an increase of about 11.9%[18] - In 2024, the company's total revenue was RMB 5,834,604 thousand, a decrease of 9.1% year-on-year, while net profit attributable to shareholders increased by 25.1% to RMB 58,831 thousand[47] Assets and Liabilities - Total non-current assets amounted to RMB 2,209,335, an increase from RMB 2,045,539 in 2023[7] - Current assets decreased to RMB 1,670,355 from RMB 1,738,411, with cash and cash equivalents at RMB 469,747[7] - Total liabilities decreased to RMB 1,450,000 from RMB 1,402,937, indicating improved financial stability[8] - The company reported a net asset value of RMB 2,429,691, up from RMB 2,381,013 in the previous year[8] - The total liabilities for the group increased to 1,449,999 in 2024 from 1,402,937 in 2023, representing an increase of approximately 3.4%[20] - The group's total non-current assets in 2024 are reported at 2,042,897, an increase from 1,885,561 in 2023, showing a growth of about 8.3%[23] Revenue Breakdown - Revenue from the mainland China market for 2024 is 5,519,176, down from 6,157,786 in 2023, a decrease of approximately 10.4%[23] - Sales revenue from chain restaurant customers grew rapidly by 43% year-on-year, becoming a significant driver for the growth of processed food business[44] - Processed food business revenue increased by 10.7% year-on-year to RMB 2,571,851 thousand, with gross profit rising by 9.2% to RMB 522,021 thousand[49] - The feed business revenue decreased by 24% year-on-year to RMB 1,720,637 thousand, with gross profit declining by 6.3%[54] - The meat business revenue fell by 15.9% year-on-year to RMB 1,542,116 thousand, but gross profit surged by 116.1% to RMB 67,453 thousand[57] Expenses and Costs - The group's depreciation and amortization expenses for 2024 amounted to 171,696, up from 130,260 in 2023, reflecting an increase of approximately 31.9%[18] - The group's financial expenses for 2024 were reported at 23,168, compared to 17,738 in 2023, indicating an increase of about 30.5%[20] - Distribution costs accounted for 6.11% of total operating income in 2024, up from 5.26% in 2023[61] - Administrative expenses represented 4.86% of total operating income in 2024, compared to 3.88% in 2023[62] Cash Flow and Investments - As of December 31, 2024, the group's cash and bank deposits totaled RMB 469,747 thousand, a decrease of RMB 57,193 thousand from 2023[63] - The group's net cash generated from operating activities in 2024 was RMB 306,153 thousand, down RMB 101,099 thousand from 2023[63] - Capital expenditures in 2024 amounted to RMB 335,465 thousand, primarily funded by internal resources and bank loans[64] Strategic Focus and Future Outlook - The company continues to focus on the production and sale of poultry feed, poultry, and processed meat products, indicating a stable operational strategy[10] - The company plans to enhance food production capacity and develop high-quality, cost-effective products to strengthen market competitiveness[52] - The company aims to optimize supply chain management and improve operational efficiency through digital transformation[46] - The company will continue to focus on processed food as the main growth driver while diversifying its product offerings and market channels[46] - The company anticipates a shift in industry competition from growth to a more intense competition in the existing market due to oversupply and weak demand[43] Governance and Compliance - The audit committee has been established in accordance with the "Listing Rules" and has defined its scope of authority[79] - The audit committee is responsible for evaluating financial statements and providing recommendations on financial reporting, internal controls, and risk management systems[79] - The audit committee consists of independent non-executive directors, ensuring no disagreements with external auditors regarding accounting policies[79] - The executive directors include the chairman, Mr. Wei Junxian, and Mr. Han Jiayin[81] - The board of directors includes several non-executive and independent non-executive directors, ensuring a diverse governance structure[81]

Financial Performance - For the nine months ended September 30, 2024, the company's operating revenue was RMB 4,316,818 thousand, a decrease of 10.7% compared to RMB 4,834,221 thousand in the same period last year[1][2]. - The company's net profit attributable to shareholders was RMB 36,910 thousand, down 44.6% from RMB 66,604 thousand year-on-year[1][2]. - The gross profit increased to RMB 543,513 thousand, representing a growth of 4.4% from RMB 520,850 thousand in the previous year, with a gross margin of 12.6% compared to 10.8% last year[1][2]. Business Segments - Processed food business accounted for 45.2% of total revenue and 71.7% of total gross profit, indicating its position as the largest revenue and profit source for the group[6][7]. - The processed food segment saw revenue and gross profit growth of 11.4% and 10.6% respectively, despite a slow recovery in the domestic catering market[6][7]. - In the first three quarters of 2024, the feed business revenue decreased by 25.5% year-on-year, and gross profit decreased by 2.9%[8]. - The meat business revenue and gross profit decreased by 20.4% and 19.6% year-on-year, respectively, due to limited recovery in domestic market consumption and oversupply in the broiler chicken industry[9]. Strategic Initiatives - The company plans to enhance its food production capacity and develop differentiated high-quality products using advanced production technologies[7]. - The company is focusing on expanding its export markets, particularly in Japan, while also diversifying to reduce risks associated with market concentration[7]. - The company aims to improve supply chain efficiency through digital transformation and increase customer engagement via retail channel promotions[7]. - The company is focusing on product diversification and channel diversification to mitigate market risks and enhance competitiveness[10]. - The company is actively developing new markets and customers beyond pig feed to diversify its product offerings and reduce market risks[8]. - The company is accelerating the transformation of its business model in the meat sector to be more customer demand-driven, enhancing supply chain flexibility[9]. - The company aims to improve cash flow management and increase the value of each chicken through focused customer development[10]. - The company is advancing its digital transformation and optimizing supply chain management to enhance overall industry competitiveness and cyclical resilience[10]. Market Trends - The overall market demand for high-quality processed foods is expected to rise due to increasing consumer awareness of healthy eating and stricter food safety standards[7]. Financial Position - As of September 30, 2024, the company's net assets amounted to RMB 2,414,225 thousand, with cash and cash equivalents accounting for 13.8% of total assets[11]. - The current ratio as of September 30, 2024, was 1.61, slightly up from 1.56 on December 31, 2023[11]. - The ratio of interest-bearing borrowings to equity was 23.6% as of September 30, 2024, compared to 22.3% on December 31, 2023[11].

Business Strategy and Market Position - In the first half of the year, the operating income of the foods segment accounted for 45% of the Group's total operating income and 74% of its gross profit, making it the most important source of profit and growth driver for the company[10][12]. - The company has restructured its business model to focus on downstream food processing, increasing the scale of food processing while downscaling breeding operations[9][10]. - The company aims to develop differentiated and processed products to enhance the value of each chicken and reduce the risk of fluctuation in the white feather broiler market[9][10]. - The strategic adjustment towards food development has been ongoing since 2021, following the sale of its Southeast Asian business to its parent company[10][12]. - The company is benefiting from the core strategy of food processing transformation, which has helped mitigate losses from the depressed domestic meat chicken market[10][12]. - The competitive landscape in the Chinese market is intense, and the company believes that focusing on food processing is essential for long-term survival[11]. - The company has established a solid market foundation in food processing, which is expected to capitalize on changing consumer habits and increasing demand for food safety and convenience[11]. Investment and Expansion - The Company has invested RMB 1 billion in a new one-stop meat and food production line in Bengbu, which commenced operations in Q4 2023, marking a strategic expansion in the Yangtze River Delta region[20]. - The new food workshop in Bengbu, along with a second phase project expected to be commissioned this year, will add an annual production capacity of 46,000 tonnes[20]. - A food processing plant expansion project in Dalian, initiated in Q3 2023, will provide an additional annual production capacity of 9,000 tonnes upon completion this year[20]. - The Company plans to continue expanding food production capacity and increase investments in the food supply chain, research and development, and digital operations[20]. Financial Performance - For the first half of 2024, the operating income of the Company was RMB2,794,444 thousand, a decrease of 11.1% compared to the same period last year[29]. - Profit attributable to shareholders amounted to RMB31,575 thousand, representing a decrease of 22.5% year-on-year[29]. - The domestic processed food business continued to grow, with operating income and gross profit increasing by 11.9% and 21% year-on-year, respectively[31]. - The Company achieved a gross profit margin of 13.0%, up from 10.8% in the previous year[29]. - The net cash inflow from operating activities was RMB124 million, providing financial support for the expansion of food production capacity[31]. - The Company reported a profit for the period of RMB 31,575 thousand for the six months ended June 30, 2024[79]. - Total comprehensive income for the period was RMB 30,197 thousand, reflecting a positive performance[79]. Market Trends and Consumer Behavior - The implementation of new urbanization policies is expected to stimulate catering consumption demand among urban residents, creating more business opportunities for the food industry[16][17]. - The Company recognizes the increasing competition in the food processing industry due to large-scale enterprises investing in downstream food processing to buffer against cyclical fluctuations[16][17]. - The focus on customer demand will guide the restructuring of the broiler breeding and slaughtering supply chain to enhance resilience against market volatility[21][23]. - The domestic food sales team focused on major direct sales customers, enhancing collaboration in product development and supply chain[38]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. James Chun-Hsien Wei since September 1, 2022[164]. - The Board believes that the dual role of Chairman and CEO does not impair the balance of power and authority within the Company[165]. - The Company Secretary, Ms. Cho Yi Ping, has been in position since August 8, 2016, and meets the qualifications required by the Listing Rules[168]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ended June 30, 2024[167]. - The Group is committed to maintaining high standards of corporate governance to enhance shareholder value[163]. Related Party Transactions - The company has related party transactions with its ultimate holding company, Great Wall Enterprise Co., Ltd., and its subsidiaries during the reporting period[139]. - The company has several related party transactions with subsidiaries and associates, including Beijing Universal Chain Food Co., Ltd. and DaChan Liangyou Foods (Tianjin) Co., Ltd.[141][142]. - The report indicates a focus on maintaining strong relationships with related parties while managing financial performance effectively[144].

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section presents the financial highlights for the six months ended June 30, 2024, detailing key performance indicators [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2024, operating revenue and profit attributable to equity holders decreased, while gross profit and gross profit margin improved | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change % | | :----------------------------- | :------------------- | :------------------- | :--------- | | Operating Revenue | 2,794,444 | 3,142,785 | -11.1 | | Gross Profit | 362,471 | 338,920 | 6.9 | | Gross Profit Margin (%) | 13.0 | 10.8 | | | Profit Attributable to Equity Holders of the Company | 31,575 | 40,757 | -22.5 | | Basic Earnings Per Share (RMB) | 0.031 | 0.040 | | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section provides the consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group reported operating revenue of RMB 2,794,444 thousands and profit attributable to equity holders of RMB 31,575 thousands | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | | :----------------------------- | :------------------- | :------------------- | | Operating Revenue | 2,794,444 | 3,142,785 | | Cost of Sales | (2,431,973) | (2,803,865) | | Gross Profit | 362,471 | 338,920 | | Operating Profit | 68,266 | 70,361 | | Profit Before Tax | 56,652 | 63,324 | | Profit for the Period | 48,028 | 56,236 | | Profit Attributable to Equity Holders of the Company | 31,575 | 40,757 | | Basic Earnings Per Share (RMB) | 0.031 | 0.040 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's profit for the period was RMB 48,028 thousands, with total comprehensive income of RMB 46,782 thousands | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | | :-------------------------------------------- | :------------------- | :------------------- | | Profit for the Period | 48,028 | 56,236 | | Exchange Differences | (1,246) | (6,035) | | Total Comprehensive Income for the Period | 46,782 | 50,201 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 30,197 | 34,012 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets less current liabilities were RMB 2,727,818 thousands, and net assets were RMB 2,427,795 thousands | Indicator | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :-------------------------------------------- | :--------------------------- | :-------------------------- | | Total Non-current Assets | 2,110,890 | 2,045,539 | | Total Current Assets | 1,626,445 | 1,738,411 | | Total Current Liabilities | 1,009,517 | 1,111,299 | | Net Current Assets | 616,928 | 627,112 | | Total Assets Less Current Liabilities | 2,727,818 | 2,672,651 | | Total Non-current Liabilities | 300,023 | 291,638 | | Net Assets | 2,427,795 | 2,381,013 | | Total Equity Attributable to Equity Holders of the Company | 2,145,511 | 2,115,314 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes to the financial statements, covering presentation basis, accounting policy changes, segment reporting, and other financial details [Basis of Presentation](index=6&type=section&id=Basis%20of%20Presentation) This interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, adopting consistent accounting policies with the prior year, except for noted changes - This interim financial report complies with the HKEX Listing Rules and International Accounting Standard 34[6](index=6&type=chunk) - The report adopts the same accounting policies as the 2023 annual financial statements, except for changes detailed in Note 2[6](index=6&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) Several amendments to International Financial Reporting Standards were applied, none of which had a significant impact on the Group's financial performance or position - The Group has applied several amendments, including those to International Accounting Standard 1 and International Financial Reporting Standard 16[7](index=7&type=chunk) - All changes in accounting policies had no significant impact on the Group's results and financial position[7](index=7&type=chunk) [Operating Revenue and Segment Reporting](index=7&type=section&id=Operating%20Revenue%20and%20Segment%20Reporting) The Group's business is divided into three reportable segments: processed food, livestock feed, and meat products, with their respective operating revenues for the six months ended June 30, 2024 - The Group primarily operates in three business segments: processed food, livestock feed, and meat products[9](index=9&type=chunk) | Segment | 2024 Operating Revenue (RMB thousands) | 2023 Operating Revenue (RMB thousands) | | :--------------- | :----------------------------------- | :----------------------------------- | | Processed Food | 1,249,661 | 1,123,488 | | Livestock Feed | 827,086 | 1,114,113 | | Meat Products | 717,697 | 905,184 | | Total | 2,794,444 | 3,142,785 | [Processed Food Segment](index=7&type=section&id=Processed%20Food%20Segment) The processed food segment primarily engages in the processing, reprocessing, or production and distribution of ready-to-eat meat products, mainly chicken - The processed food segment produces and distributes reprocessed or ready-to-eat chicken products[11](index=11&type=chunk) [Livestock Feed Segment](index=7&type=section&id=Livestock%20Feed%20Segment) The livestock feed segment produces and distributes various feeds for pigs, laying hens, broiler chickens, ducks, and breeding poultry under multiple brands - The livestock feed segment produces various brands of feed for pigs, chickens, ducks, and other animals, including 'Dr. Buck,' 'DaChan,' and 'Green Knight'[11](index=11&type=chunk) [Meat Products Segment](index=7&type=section&id=Meat%20Products%20Segment) The meat products segment covers broiler breeder farming, broiler hatching, contract farming, and the processing and trading of chilled and frozen chicken meat - The meat products segment engages in broiler breeder farming, hatching, contract farming, and the processing and trading of chilled/frozen chicken meat[11](index=11&type=chunk) [Other Operating Income and Other Net Gains](index=8&type=section&id=Other%20Operating%20Income%20and%20Other%20Net%20Gains) In the first half of 2024, other operating income was RMB 10,717 thousands, mainly from interest income, government grants, and rental income, while other net gains were RMB 755 thousands, primarily from net foreign exchange gains | Other Operating Income | 2024 (RMB thousands) | 2023 (RMB thousands) | | :------------------- | :------------------- | :------------------- | | Interest Income | 4,441 | 4,615 | | Government Grants | 2,509 | 3,229 | | Rental Income | 3,767 | 2,891 | | **Total** | **10,717** | **10,735** | | Other Net Gains/(Losses) | 2024 (RMB thousands) | 2023 (RMB thousands) | | :----------------------- | :------------------- | :------------------- | | Foreign Exchange Gains/(Losses) | 1,858 | (261) | | Net Loss on Disposal of Property, Plant and Equipment | (1,738) | (1,383) | | Others | 635 | 1,785 | | **Total** | **755** | **141** | [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) Profit before tax is influenced by factors such as finance costs, depreciation, amortization, impairment of trade receivables, and inventory write-downs, with finance costs significantly increasing and inventory write-downs turning into a reversal in H1 2024 [Finance Costs](index=8&type=section&id=Finance%20Costs) For the six months ended June 30, 2024, interest expense on bank borrowings significantly increased to RMB 13,008 thousands from RMB 7,103 thousands in the prior year | Finance Costs | 2024 (RMB thousands) | 2023 (RMB thousands) | | :---------------------- | :------------------- | :------------------- | | Interest on Bank Borrowings | (13,008) | (7,103) | [Other Items](index=9&type=section&id=Other%20Items) Other items affecting profit before tax include amortization of prepaid lease payments, depreciation of property, plant and equipment, impairment provision for trade receivables, and net reversal of inventory write-downs | Other Items | 2024 (RMB thousands) | 2023 (RMB thousands) | | :---------------------------------------- | :------------------- | :------------------- | | Amortization of Prepaid Lease Payments | (2,163) | (2,160) | | Depreciation of Property, Plant and Equipment | (78,822) | (55,842) | | Impairment (Provision)/Net Reversal of Trade Receivables | (619) | 716 | | Net Reversal/(Recognition) of Inventory Write-downs | 13,111 | (676) | [Income Tax](index=9&type=section&id=Income%20Tax) The Group's income tax expense, totaling RMB 8,624 thousands in H1 2024, comprises current and deferred tax, with varying rates applied across different regions and entities | Income Tax Items | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--------------- | :------------------- | :------------------- | | Current Tax | (6,404) | (6,294) | | Deferred Tax | (2,220) | (794) | | **Total** | **(8,624)** | **(7,088)** | - Hong Kong profits tax rate is **16.5%**, with certain eligible subsidiaries taxed at **8.25%** for the first HKD 2 million[16](index=16&type=chunk) - Mainland China corporate income tax rate is **25%**, with Northeast Agriculture and Animal Husbandry (Changchun) Co., Ltd. enjoying a preferential rate of **15%** as a high-tech enterprise[16](index=16&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) As of June 30, 2024, the Company's basic earnings per share was RMB 0.031, calculated based on profit attributable to ordinary equity holders and weighted average shares outstanding, with no difference between basic and diluted earnings - Basic earnings per share for the first half of 2024 was **RMB 0.031**, a decrease from **RMB 0.040** in the same period last year[18](index=18&type=chunk) - The weighted average number of ordinary shares outstanding was **1,016,189,000** shares, consistent with the prior year[18](index=18&type=chunk) - There were no potential dilutive ordinary shares during the period, thus diluted earnings per share is the same as basic earnings per share[18](index=18&type=chunk) [Property, Plant and Equipment](index=10&type=section&id=Property%2C%20Plant%20and%20Equipment) In the first half of 2024, the Group's capital expenditure for property, plant and equipment significantly decreased to RMB 98,284 thousands, and disposal of assets resulted in a net loss of RMB 1,738 thousands | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | | :-------------------------------------- | :------------------- | :------------------- | | Cost of Purchases of Property, Plant and Equipment | 98,284 | 263,525 | | Net Book Value of Property, Plant and Equipment Disposed | 1,145 | 2,258 | | Loss on Disposal | 1,738 | 1,383 | [Trade Receivables](index=10&type=section&id=Trade%20Receivables) As of June 30, 2024, total trade receivables were RMB 258,695 thousands, a decrease from 2023 year-end, with the Group generally granting 30-60 day credit terms and a small proportion of overdue accounts - The Group generally grants customers credit terms of **30-60 days**[17](index=17&type=chunk) | Aging | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :-------------------- | :--------------------------- | :-------------------------- | | Current | 245,050 | 263,074 | | Overdue 1 to 180 days | 13,727 | 14,598 | | Overdue 181 to 365 days | 3,108 | 306 | | Overdue over 365 days | 4,454 | 4,838 | | Provision for Doubtful Debts | (7,644) | (7,247) | | **Total** | **258,695** | **275,569** | [Other Receivables and Prepayments](index=11&type=section&id=Other%20Receivables%20and%20Prepayments) As of June 30, 2024, total other receivables and prepayments amounted to RMB 269,653 thousands, primarily consisting of recoverable value-added tax, deposits, and prepayments | Item | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :---------------------------------- | :--------------------------- | :-------------------------- | | Recoverable Value-Added Tax | 247,426 | 259,039 | | Deposits and Prepayments | 92,422 | 94,318 | | Advances to Employees | 4,470 | 4,174 | | Others | 13,484 | 7,265 | | Less: Non-current Recoverable Value-Added Tax | 88,149 | 88,149 | | **Total** | **269,653** | **276,647** | [Trade Payables](index=11&type=section&id=Trade%20Payables) As of June 30, 2024, total trade payables significantly decreased to RMB 340,923 thousands from RMB 506,995 thousands at the end of 2023 | Aging | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :-------------------- | :--------------------------- | :-------------------------- | | Current | 168,617 | 221,009 | | Overdue less than 30 days | 136,254 | 169,074 | | Overdue 31 to 60 days | 23,398 | 46,042 | | Overdue 61 to 90 days | 5,671 | 34,738 | | Overdue over 90 days | 6,983 | 36,132 | | **Total** | **340,923** | **506,995** | [Other Payables](index=12&type=section&id=Other%20Payables) As of June 30, 2024, total other payables were RMB 298,065 thousands, primarily comprising salaries, wages, bonuses, other accrued benefits, accrued expenses, and performance deposits | Item | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :---------------------------------- | :--------------------------- | :-------------------------- | | Sales Rebates | 15,383 | 22,554 | | Salaries, Wages, Bonuses and Other Accrued Benefits | 51,016 | 102,689 | | Accrued Expenses | 104,092 | 60,810 | | Performance Deposits | 59,998 | 57,450 | | Payables for Purchase of Property, Plant and Equipment | 21,678 | 5,276 | | Amounts Due to Related Parties | 42,600 | 42,600 | | Others | 3,298 | 17,365 | | **Total** | **298,065** | **308,744** | [Dividends](index=12&type=section&id=Dividends) The Company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the prior year - No interim dividend was declared for the first half of 2024[24](index=24&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's overall performance, segment-specific results, financial position, and human resources [Overall Performance Overview and Outlook](index=13&type=section&id=Overall%20Performance%20Overview%20and%20Outlook) In H1 2024, operating revenue and profit attributable to equity holders decreased due to falling chicken prices, but domestic processed food performed well, with the Company optimizing its business model to focus on processed food and reduce inputs in other areas | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change % | | :----------------------------- | :------------------- | :------------------- | :--------- | | Operating Revenue | 2,794,444 | 3,142,785 | -11.1 | | Gross Profit | 362,471 | 338,920 | 6.9 | | Gross Profit Margin (%) | 13.0 | 10.8 | | | Profit Attributable to Equity Holders of the Company | 31,575 | 40,757 | -22.5 | - Performance decline primarily attributed to falling chicken prices due to supply-demand imbalance in the broiler industry[25](index=25&type=chunk) - Domestic processed food business revenue and gross profit increased by **11.9%** and **21%** year-on-year, respectively[25](index=25&type=chunk) - The Company will focus investments on processed food capacity, R&D, supply chain, and marketing, while reducing resources in broiler farming, slaughtering, and feed processing[26](index=26&type=chunk) - Looking ahead to the second half, the Company will promote scaled food production, diversified feed products, and value-added meat products, while steadily advancing digital transformation[27](index=27&type=chunk) [Segment Performance Review](index=14&type=section&id=Segment%20Performance%20Review) In H1 2024, the processed food business grew in revenue and gross profit, becoming the main profit driver, while livestock feed revenue declined but gross profit slightly increased, and meat products faced significant declines - Processed food, livestock feed, and meat products segments accounted for **44.7%**, **29.6%**, and **25.7%** of total operating revenue, respectively[28](index=28&type=chunk) - The processed food segment was the Company's largest profit source, contributing **74.1%** of total gross profit[28](index=28&type=chunk) [Processed Food](index=15&type=section&id=Processed%20Food) The processed food business saw an 11.2% year-on-year increase in operating revenue and a 19.5% rise in gross profit in H1, driven by domestic sales growth and direct customer focus, with export business also expanding | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change % | | :------------------------ | :------------------- | :------------------- | :--------- | | Total Operating Revenue | 1,249,661 | 1,123,488 | 11.2 | | Total Gross Profit | 268,719 | 224,891 | 19.5 | | Total Gross Profit Margin (%) | 21.5 | 20.0 | | - Domestic food sales continued to grow, with domestic revenue increasing by **11.9%** and gross profit by **21.0%** year-on-year[29](index=29&type=chunk) - Export business revenue and gross profit increased by **6.3%** and **7.2%** respectively, with continued expansion into new categories, channels, and customers[29](index=29&type=chunk) [Livestock Feed](index=16&type=section&id=Livestock%20Feed) The livestock feed business's operating revenue decreased by 25.8% year-on-year in H1 due to declining pig feed sales, but gross profit still grew by 2.4%, with the Company diversifying products and controlling costs | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change % | | :-------------------- | :------------------- | :------------------- | :--------- | | Operating Revenue | 827,086 | 1,114,113 | -25.8 | | Gross Profit | 69,205 | 67,595 | 2.4 | | Gross Profit Margin (%) | 8.4 | 6.1 | | - Pig feed sales declined due to hog industry capacity reduction, prompting the Company to increase R&D and channel development for ruminant and niche feed products[30](index=30&type=chunk) - Strengthening cooperation with medium to large-scale farms and reducing feed costs through platform integration to enhance competitiveness[30](index=30&type=chunk) [Meat Products](index=17&type=section&id=Meat%20Products) The meat products business experienced a 20.7% year-on-year decrease in operating revenue and a 47.1% drop in gross profit in H1, primarily due to oversupply in the white feather broiler industry and limited consumer demand recovery | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change % | | :-------------------- | :------------------- | :------------------- | :--------- | | Operating Revenue | 717,697 | 905,184 | -20.7 | | Gross Profit | 24,547 | 46,434 | -47.1 | | Gross Profit Margin (%) | 3.4 | 5.1 | | - Oversupply in the white feather broiler industry led to falling prices for chicks, live broilers, and chicken meat, resulting in losses for broiler farming and slaughtering operations[31](index=31&type=chunk) - The meat products team is transforming to a customer-demand-driven model, focusing on refined processing and differentiated products, and collaborating with the processed food business to develop high-quality customers[31](index=31&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) This section reviews the Group's key financial status for the first half of 2024, including other operating income, liquidity, capital expenditure, exchange rate impact, interest expenses, pledge of assets, and capital commitments [Other Operating Income and Other Net Gains](index=18&type=section&id=Other%20Operating%20Income%20and%20Other%20Net%20Gains) In the first half of 2024, other operating income was RMB 10,717 thousands, primarily from interest income and government grants, while other net gains were RMB 755 thousands, mainly comprising net foreign exchange gains - Other operating income primarily consisted of interest income and government grants, remaining stable year-on-year[32](index=32&type=chunk) - Other net gains primarily included net foreign exchange gains and net loss on disposal of property, plant and equipment[32](index=32&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=18&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, cash and bank balances were RMB 504,106 thousands, interest-bearing borrowings increased to RMB 609,503 thousands, and the interest-bearing borrowings to equity ratio rose to 25.1%, while the current ratio remained robust at 1.61 times | Indicator | 2024 June 30 (RMB thousands) | 2023 Dec 31 (RMB thousands) | | :-------------------------------------- | :--------------------------- | :-------------------------- | | Cash and Bank Balances | 504,106 | 526,940 | | Interest-bearing Borrowings | 609,503 | 530,079 | | Interest-bearing Borrowings to Equity Ratio | 25.1% | 22.3% | | Current Ratio | 1.61 times | 1.56 times | [Capital Expenditure](index=18&type=section&id=Capital%20Expenditure) In the first half of 2024, the Group's capital expenditure for the purchase of property, plant and equipment was RMB 98,284 thousands, primarily funded by long-term bank loans - Capital expenditure for the first half of 2024 was **RMB 98,284 thousands**[34](index=34&type=chunk) - Capital expenditure was primarily funded by long-term bank loans[34](index=34&type=chunk) [Exchange Rates](index=18&type=section&id=Exchange%20Rates) During the review period, the RMB depreciated by 0.62% against the US dollar, which had no significant impact on the Group's operations - The RMB depreciated by **0.62%** against the US dollar, with no significant impact on operations[35](index=35&type=chunk) [Interest](index=18&type=section&id=Interest) In the first half of 2024, interest expense significantly increased by 83.1% to RMB 13,008 thousands, mainly due to interest on borrowings for the new Bengbu plant being expensed after it commenced production - Interest expense increased by **83.1%** year-on-year to **RMB 13,008 thousands**[36](index=36&type=chunk) - The increase in interest expense was mainly due to interest on borrowings related to the Bengbu new plant being expensed rather than capitalized[36](index=36&type=chunk) [Pledge of Assets](index=19&type=section&id=Pledge%20of%20Assets) As of June 30, 2024, the Group had no assets pledged as security for bank credit facilities - The Group has no assets pledged[37](index=37&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group's contracted but unprovided capital expenditure was RMB 265,068 thousands, and authorized but uncontracted capital expenditure was RMB 113,246 thousands | Capital Commitment Items | Amount (RMB thousands) | | :----------------------- | :--------------------- | | Contracted but not provided for | 265,068 | | Authorized but not contracted for | 113,246 | [Employee Remuneration and Training](index=19&type=section&id=Employee%20Remuneration%20and%20Training) As of June 30, 2024, the Group had 8,229 employees, offering competitive remuneration and emphasizing training and development to enhance skills and industry knowledge - As of June 30, 2024, the Group's total number of employees was **8,229**, an increase from **7,972** at the end of 2023[39](index=39&type=chunk) - The Company provides competitive remuneration and benefits, with policies regularly reviewed[39](index=39&type=chunk) - Emphasis is placed on employee training and development, offering various programs to enhance work skills and industry knowledge[39](index=39&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) This section covers corporate governance practices, directors' securities transactions, share dealings, audit committee functions, and board composition [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) In H1 2024, the Company complied with the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes enhances business strategy execution and operational efficiency - The Company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Wei Chun Hsien, deviating from code provision C.2.1[40](index=40&type=chunk) - The Board believes this combined structure facilitates the execution of the Group's business strategies and enhances operational efficiency, with a highly independent Board providing sufficient checks and balances[40](index=40&type=chunk) [Model Code for Securities Transactions by Directors](index=21&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a model code for directors' securities transactions, and all directors confirmed their compliance throughout the review period - The Company has adopted the Model Code for Securities Transactions by Directors, and all Directors confirmed compliance[41](index=41&type=chunk) [Purchase, Redemption or Sale of Listed Securities of the Company](index=21&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities%20of%20the%20Company) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor its subsidiaries engaged in any purchase, redemption, or sale of listed securities during the reporting period[42](index=42&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, comprising independent non-executive directors, reviewed the interim results and found no disagreement with the accounting treatments adopted - The Audit Committee has reviewed the Company's interim results and has no disagreement with the accounting treatments adopted[43](index=43&type=chunk) - The Audit Committee members include Mr. Ting Yu Shan (Chairman), Mr. Hsia Li Yen, Ms. Tsai Yu Ling, and Mr. Kao Kung Lien, all of whom are independent non-executive directors[43](index=43&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises two executive directors, five non-executive directors, and four independent non-executive directors - Executive Directors: Mr. Wei Chun Hsien (Chairman), Mr. Han Chia Yin[44](index=44&type=chunk) - Non-executive Directors: Mr. Han Chia Yu, Mr. Han Chia Chen, Mr. Han Chia Huan, Mr. Chao Tien Hsing, Mr. Wei An Ning[44](index=44&type=chunk) - Independent Non-executive Directors: Mr. Ting Yu Shan, Mr. Hsia Li Yen, Ms. Tsai Yu Ling, Mr. Kao Kung Lien[44](index=44&type=chunk)

Financial Performance - For the three months ended March 31, 2024, the operating revenue was RMB 1,406,070 thousand, a decrease of 8.1% compared to RMB 1,529,353 thousand in the same period of 2023[1] - Gross profit increased by 21.7% to RMB 190,370 thousand, with a gross margin of 13.5%, up from 10.2% in the previous year[1] - Profit attributable to shareholders was RMB 26,850 thousand, representing a significant increase of 162.1% from RMB 10,244 thousand year-on-year[1] - Basic earnings per share increased to RMB 0.026 from RMB 0.010 in the previous year, reflecting improved profitability[28] - In Q1 2024, the company's operating revenue was RMB 1,406,070 thousand, a decrease of 8.1% year-on-year; however, net profit attributable to shareholders increased by 162.1% to RMB 26,850 thousand, primarily due to robust growth in processed food sales[40] Business Segments - The processed food business accounted for 44.7% of total revenue and 73.8% of total gross profit, highlighting its role as the main revenue and profit driver for the group[18] - Export revenue for processed foods remained stable year-on-year, but gross profit increased by 30.1% due to continuous R&D innovation and production efficiency improvements[19] - The meat business saw a revenue decline of 21.4% and a gross profit decline of 40.4%, attributed to limited recovery in domestic market consumption and oversupply in the market[21] - The food segment's revenue and gross profit grew by 20% and 31.9% year-on-year, respectively, with domestic food sales increasing by 22.8% and gross profit by 32%[40] - The feed segment experienced a revenue decline of 23.7% year-on-year, while gross profit increased by 26%, attributed to a surplus in the pig farming market leading to lower sales volumes[42] Strategic Plans - The company plans to expand food production capacity and accelerate the scaling process to stabilize profits and mitigate risks associated with meat market fluctuations[20] - For 2024, the company aims to enhance operational efficiency and strengthen cash flow management while focusing on food scaling, feed diversification, and meat value enhancement[22] - The company will continue to seek new growth sources and optimize its operational model in response to increasing competition in the agricultural and livestock food industry[22] - The company is diversifying its product offerings in the feed segment to mitigate market risks and strengthen partnerships with medium to large-scale farms[42] - The company is focusing on digital transformation to improve supply chain efficiency and better meet customer demands[40] Financial Position - As of March 31, 2024, the company's net assets stood at RMB 2,415,960 thousand, with cash and cash equivalents accounting for 13.9% of total assets[44] - The current ratio improved to 1.67 as of March 31, 2024, compared to 1.56 on December 31, 2023[44] - The ratio of interest-bearing borrowings to equity increased to 24.4% from 22.3% as of December 31, 2023[44] Customer and Market Engagement - The company continues to invest in product development and supply chain collaboration with strategic customers to enhance customer loyalty and market presence[40] - The company is a subsidiary of Great Wall Enterprises Co., Ltd., which holds approximately 57.19% of its issued shares, impacting its financial reporting[44]