謝謝股東的支持 Hong Kong March 2024 2024年國際政治經濟環境與國內經濟形 勢或將存在更多不確定性。面對不利的 外部環境，公司經營策略的重點依然是 穩中求進，持續構建長期相對競爭力： 集中資源發展食品，加快食品增長步 伐，以食品帶動一條龍的整體發展；繼 續推動飼料產品多元化，以對抗豬週期 的風險；繼續調整肉品商業模式，聚焦 差異化產品與產值提升，以降低行情波 動對業績的影響。 管理層討論與分析 Management Discussion and Analysis 二零二三年，國內餐飲收入同比增長20.4%， 其中有二零二二年第四季度新冠疫情管控期間 基數較低的影響。與新冠疫情出現前的二零 一九年相比，國內餐飲收入增長了13.2%，顯 現出在整體需求不足的市場環境中餐飲業逐步 呈現復甦勢頭。本集團深耕餐飲渠道多年，面 對複雜多變的外部環境與供過於求的產業格 局，堅持以加工食品為龍頭帶動一條龍的整體 發展。受益於這一核心戰略，在第四季度國內 肉雞市場行情急轉直下之時，本集團憑借加工 食品業務與肉品業務之間的風險對沖從而避免 了更大損失。 本集團在安徽省蚌埠市新建的食品廠、電宰廠 和飼料廠已在 ...

Financial Performance - Operating revenue for 2023 was RMB 6,418,966 thousand, an increase of 3.6% compared to RMB 6,195,175 thousand in 2022[2] - Gross profit for 2023 decreased to RMB 662,690 thousand, down 2.5% from RMB 680,906 thousand in 2022[2] - Net profit for the year was RMB 75,380 thousand, a decline of 38.5% from RMB 122,480 thousand in the previous year[2] - Basic and diluted earnings per share for 2023 were RMB 0.046, compared to RMB 0.090 in 2022, reflecting a decrease of 48.9%[2] - The operating profit for the year was 101,668, down from 149,560 in 2022, indicating a decline of about 32%[38] - The company reported a net profit of 75,380 for 2023, compared to 122,480 in 2022, reflecting a decrease of approximately 38.4%[38] - The pre-tax profit for 2023 was RMB 86,050 thousand, a decrease of 37.3% compared to RMB 137,272 thousand in 2022[61] - Basic earnings per share for 2023 were RMB 47,024 thousand, a decline of 48.8% from RMB 91,852 thousand in 2022[87] Assets and Liabilities - Total assets less current liabilities increased to RMB 2,672,651 thousand in 2023 from RMB 2,630,551 thousand in 2022[5] - Non-current assets, including property, plant, and equipment, rose to RMB 1,636,588 thousand, up from RMB 1,240,947 thousand in 2022, indicating a significant investment in infrastructure[6] - Total assets reported for 2023 were 3,053,954, an increase from 2,784,151 in 2022, showing a growth of about 9.7%[38] - The total liabilities reported for 2023 were 960,262, an increase from 873,847 in 2022, indicating a growth of about 9.9%[38] - Total liabilities rose to RMB 1,402,937 thousand in 2023, up 12.4% from RMB 1,248,170 thousand in 2022[61] - Interest-bearing borrowings increased by RMB 152,839 thousand to RMB 530,079 thousand in 2023, with a debt-to-equity ratio of 22.3%[129] Revenue Sources - The company’s external customer operating revenue for processed food was 2,322,970 in 2023, up from 2,151,768 in 2022, representing an increase of approximately 7.9%[38] - Revenue from external customers in mainland China was RMB 6,157,786 thousand, up 4.7% from RMB 5,883,960 thousand in 2022[65] - The company's revenue from processed food, feed, and meat businesses accounted for 36.2%, 35.3%, and 28.5% of total revenue, respectively, with processed food being the largest source of revenue and profit[98] - The company's operating income from the domestic market increased by 10.8% to RMB 2,063,168 thousand, while export income decreased by 10.4% to RMB 259,802 thousand[100] Cost Management - The company reported a decrease in administrative expenses to RMB 248,739 thousand from RMB 264,290 thousand, reflecting cost control measures[2] - The company incurred financial expenses of 17,738 in 2023, up from 11,278 in 2022, marking an increase of approximately 57.5%[40] - The distribution cost as a percentage of total operating revenue was 5.26% in 2023, compared to 4.97% in 2022[107] - The company's administrative expenses accounted for 3.88% of operating revenue in 2023, down from 4.27% in 2022[129] Investment and Capital Expenditures - The company has committed but unprovided capital expenditures of RMB 70,827 thousand as of December 31, 2023, down from RMB 531,809 thousand in 2022[114] - Capital expenditures for 2023 amounted to RMB 529,018 thousand, primarily funded by internal resources and bank borrowings[130] Market Challenges and Strategies - The company continues to face challenges such as insufficient effective demand and overcapacity in certain industries amid global economic uncertainties[79] - The company plans to continue expanding food production capacity and optimizing its product portfolio to mitigate risks associated with market fluctuations[97] - The company aims to enhance customer engagement through increased investment in direct sales channels and digital transformation initiatives[100] - The company will focus on diversifying its export markets to reduce risks associated with over-concentration in specific regions[101] Dividends - The company did not declare any dividends for the year, maintaining a focus on reinvestment[2] - The company did not declare any final dividends for the years ended 2023 and 2022[48] - The company decided not to distribute dividends for the 2023 fiscal year, consistent with the previous year[112] Operational Highlights - The domestic food business maintained steady growth, with revenue and gross profit increasing by 10.8% and 14.1% year-on-year, respectively[98] - The processed food segment saw an 8.0% increase in operating revenue and a 13.3% increase in gross profit year-on-year for 2023, driven by robust growth in domestic food sales[121] - The meat business experienced a 7.6% increase in operating revenue in 2023, but gross profit decreased by 72.0% due to oversupply in the broiler market[126]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限責任公司） （股份代號：3999） 截至二零二三年九月三十日止九個月業績公佈 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」）截至二零二三年九月三十日止九個月的未經會計師審核綜合業績： 財務摘要 | --- | --- | --- | |------------|------------------------|------------| | | 截至九月三十日止九個月 | | | 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） | 4,834,221 | 4,512,433 ...

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].

Financial Highlights [Key Financial Data](index=1&type=section&id=Key%20Financial%20Data) For H1 2023, the Group saw operating revenue rise 12.4% to RMB3.14 billion and profit attributable to equity holders increase 20.6% to RMB40.76 million Key Financial Data | Metric | 2023 (RMB '000) | 2022 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,142,785 | 2,796,884 | 12.4 | | Gross Profit | 338,920 | 306,405 | 10.6 | | Gross Profit Margin | 10.8 | 11.0 | - | | Profit Attributable to Equity Holders of the Company | 40,757 | 33,802 | 20.6 | | Basic Earnings Per Share (RMB) | 0.040 | 0.033 | - | Consolidated Financial Statements [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2023, the Group reported RMB3.14 billion in operating revenue, RMB338.92 million gross profit, and RMB40.76 million profit attributable to equity holders Consolidated Statement of Profit or Loss | Metric | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Operating Revenue | 3,142,785 | 2,796,884 | | Cost of Sales | (2,803,865) | (2,490,479) | | Gross Profit | 338,920 | 306,405 | | Other Operating Income | 10,735 | 19,192 | | Other Net Gains/(Losses) | 141 | (1,559) | | Distribution Costs | (163,933) | (143,795) | | Administrative Expenses | (115,502) | (118,246) | | Operating Profit | 70,361 | 61,997 | | Finance Costs | (7,103) | (4,300) | | Share of Profits/(Losses) of Associates Accounted for Using the Equity Method | 66 | (1,077) | | Profit Before Tax | 63,324 | 56,620 | | Income Tax Expense | (7,088) | (7,857) | | Profit for the Period | 56,236 | 48,763 | | Profit Attributable to Equity Holders of the Company | 40,757 | 33,802 | | Non-controlling Interests | 15,479 | 14,961 | | Basic and Diluted Earnings Per Share (RMB) | 0.040 | 0.033 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2023, the Group's profit for the period was RMB56.24 million, leading to total comprehensive income of RMB50.20 million after exchange differences Consolidated Statement of Comprehensive Income | Metric | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 56,236 | 48,763 | | Exchange Differences on Translation of Financial Statements of Overseas Subsidiaries | (6,035) | (9,726) | | Total Comprehensive Income for the Period | 50,201 | 39,037 | | Attributable to Equity Holders of the Company | 34,012 | 23,370 | | Non-controlling Interests | 16,189 | 15,667 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets less current liabilities were RMB2.74 billion, with total equity at RMB2.37 billion Consolidated Statement of Financial Position | Metric | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 1,445,571 | 1,240,947 | | Land Use Rights | 123,333 | 125,499 | | Investment Properties | 52,585 | 53,889 | | Interests in Associates Accounted for Using the Equity Method | 68,852 | 68,786 | | Other Financial Assets | 1,948 | 1,948 | | Deferred Tax Assets | 5,831 | 6,071 | | Long-term Recoverable Taxes | 112,497 | 112,497 | | Other Non-current Assets | 49,444 | 59,598 | | **Current Assets** | | | | Inventories | 528,779 | 671,019 | | Biological Assets | 150,634 | 149,077 | | Trade Receivables | 269,049 | 239,110 | | Other Receivables and Prepayments | 285,071 | 310,562 | | Cash and Cash Equivalents | 529,677 | 532,274 | | **Current Liabilities** | | | | Trade Payables | 385,264 | 472,025 | | Other Payables | 310,281 | 328,568 | | Contract Liabilities | 24,574 | 20,756 | | Interest-bearing Borrowings | 147,248 | 107,448 | | Lease Liabilities | 2,001 | 2,001 | | Income Tax Payable | 9,449 | 9,928 | | **Non-current Liabilities** | | | | Interest-bearing Borrowings | 341,777 | 269,792 | | Lease Liabilities | 27,765 | 29,716 | | Deferred Tax Liabilities | 8,490 | 7,936 | | **Equity** | | | | Share Capital | 97,920 | 97,920 | | Reserves | 938,677 | 944,706 | | Retained Profits | 1,068,811 | 1,028,770 | | Total Equity Attributable to Equity Holders of the Company | 2,105,408 | 2,071,396 | | Non-controlling Interests | 261,014 | 251,711 | | Total Equity | 2,366,422 | 2,323,107 | Notes to the Financial Statements [Basis of Presentation](index=6&type=section&id=Basis%20of%20Presentation) This interim financial report is prepared under IAS 34, applying consistent accounting policies with the 2022 annual financial statements - This interim financial report is prepared in accordance with IAS 34 and was authorized for issue on August 7, 2023[111](index=111&type=chunk) - The preparation of the interim financial report involves management's judgments, estimates, and assumptions, and actual results may differ from these estimates[9](index=9&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) The Group adopted revised IAS 8, IFRS 17, and IAS 12 amendments, which had no material impact on financial results - The Group has applied IAS 8 (Revised), Definition of Accounting Estimates, which has no material impact on the Group's current or prior period results and financial position[10](index=10&type=chunk) - The Group has applied IFRS 17 (Insurance Contracts) and IAS 12 (Revised) (Income Taxes: Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction)[112](index=112&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[45](index=45&type=chunk) [Operating Revenue and Segment Reporting](index=7&type=section&id=Operating%20Revenue%20and%20Segment%20Reporting) The Group manages its business across processed food, livestock feed, and meat products segments, reporting total operating revenue of RMB3.14 billion for H1 2023 - The Group manages its business through three reporting segments: processed food, livestock feed, and meat products[46](index=46&type=chunk) Operating Revenue and Segment Gross Profit | Segment | 2023 Operating Revenue (RMB '000) | 2022 Operating Revenue (RMB '000) | 2023 Segment Gross Profit (RMB '000) | 2022 Segment Gross Profit (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Processed Food | 1,123,488 | 1,003,973 | 224,891 | 197,280 | | Livestock Feed | 1,114,113 | 1,032,902 | 67,595 | 65,124 | | Meat Products | 905,184 | 760,009 | 46,434 | 44,001 | | Total | 3,142,785 | 2,796,884 | 338,920 | 306,405 | [Description of Segment Operations](index=7&type=section&id=Description%20of%20Segment%20Operations) The Group's segments include processed food production, livestock feed manufacturing, and meat product processing and trading - Processed Food Segment: Production and distribution of processed or ready-to-eat (partially cooked/fully cooked) meat products, primarily chicken[25](index=25&type=chunk) - Livestock Feed Segment: Production and distribution of complete feed, base mix feed, and premix feed for pigs, laying hens, broilers, ducks, and breeding poultry under the 'Dr. Buck', 'DaChan', and 'Green Knight' brands[25](index=25&type=chunk) - Meat Products Segment: Engaged in broiler breeding, hatching of broiler eggs, contract farming, and processing and trading of chilled and frozen chicken meat sold under the 'DaChan' and 'Sister's Kitchen' brands[25](index=25&type=chunk) [Other Operating Income and Other Net Gains](index=8&type=section&id=Other%20Operating%20Income%20and%20Other%20Net%20Gains) For H1 2023, the Group recorded RMB10.74 million in other operating income and RMB0.14 million in other net gains Other Operating Income Items | Item | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Interest Income | 4,615 | 4,890 | | Government Grants | 3,229 | 10,442 | | Rental Income | 2,891 | 3,860 | | Total | 10,735 | 19,192 | Other Net Gains/(Losses) Items | Item | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Foreign Exchange (Losses)/Gains | (261) | 165 | | Net (Losses)/Gains on Disposal of Property, Plant and Equipment | (1,383) | (476) | | Others | 1,784 | (1,248) | | Total | 141 | (1,559) | [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) Profit before tax is determined after accounting for items like interest on bank borrowings, amortization, and depreciation Profit Before Tax Items | Item | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Interest on Bank Borrowings Repayable in Full Within Five Years | (7,103) | (4,300) | | Amortization of Prepaid Lease Payments | (2,160) | (2,172) | | Depreciation of Property, Plant and Equipment | (55,842) | (59,258) | | Net Reversal/(Provision) for Impairment of Trade Receivables | 716 | (1,056) | | Net Write-down/(Reversal) of Inventories | (676) | 3,469 | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) For H1 2023, total income tax expense was RMB(7.09) million, with varying corporate income tax rates for Mainland China entities Income Tax Expense by Type | Tax Type | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Current Tax | (6,294) | (5,241) | | Deferred Tax | (794) | (2,616) | | Total | (7,088) | (7,857) | - The Group is not subject to any income tax in the Cayman Islands and the British Virgin Islands[52](index=52&type=chunk) - Companies in Mainland China generally pay enterprise income tax at a rate of 25%, with Northeast Agriculture and Animal Husbandry (Changchun) Co Ltd enjoying a preferential rate of 15% due to its high-tech enterprise status. DaChan Agriculture and Animal Husbandry (Heilongjiang) Co Ltd and DaChan Agriculture and Animal Husbandry (Yingkou) Co Ltd reverted to a 25% tax rate as their high-tech enterprise qualifications expired[53](index=53&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic earnings per share for H1 2023 was RMB0.040, with no dilution effect due to the absence of potential dilutive shares - Basic earnings per share is calculated based on profit attributable to ordinary equity holders of the Company of **RMB40,757 thousand** and the weighted average number of ordinary shares outstanding of **1,016,189,000 shares**[55](index=55&type=chunk) - The Group has no potential dilutive ordinary shares outstanding, thus there is no difference between diluted and basic earnings per share[32](index=32&type=chunk) [Property, Plant and Equipment](index=10&type=section&id=Property%2C%20Plant%20and%20Equipment) In H1 2023, the Group invested RMB263.53 million in property, plant and equipment, incurring a RMB1.38 million loss on disposals Property, Plant and Equipment Transactions | Item | 2023 (RMB '000) | 2022 (RMB '000) | | :--- | :--- | :--- | | Cost of Purchasing Property, Plant and Equipment | 263,525 | 73,466 | | Net Book Value of Property, Plant and Equipment Disposed | 2,258 | 5,643 | | Loss on Disposal | 1,383 | 476 | [Trade Receivables](index=10&type=section&id=Trade%20Receivables) As of June 30, 2023, total trade receivables were RMB269.05 million, with a standard credit period of 30-60 days Trade Receivables Aging Analysis | Aging | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | Current | 257,423 | 228,312 | | Overdue 1 to 180 Days | 12,443 | 11,767 | | Overdue 181 to 365 Days | 1,304 | 2,841 | | Overdue Over 365 Days | 6,463 | 5,582 | | Total Overdue Amount | 20,210 | 20,190 | | Less: Provision for Doubtful Debts | (8,584) | (9,392) | | Total | 269,049 | 239,110 | - The Group generally allows its customers a credit period of 30-60 days[54](index=54&type=chunk) [Other Receivables and Prepayments](index=11&type=section&id=Other%20Receivables%20and%20Prepayments) As of June 30, 2023, net other receivables and prepayments totaled RMB285.07 million, primarily comprising recoverable VAT and deposits Other Receivables and Prepayments Breakdown | Item | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | Recoverable VAT | 253,479 | 269,948 | | Deposits and Prepayments | 132,953 | 140,830 | | Advances to Employees | 3,831 | 5,327 | | Others | 7,305 | 6,954 | | Total | 397,568 | 423,059 | | Less: Non-current Recoverable VAT | 112,497 | 112,497 | | Net Amount | 285,071 | 310,562 | [Trade Payables](index=11&type=section&id=Trade%20Payables) As of June 30, 2023, total trade payables were RMB385.26 million, showing a decrease from year-end 2022 Trade Payables Aging Analysis | Aging | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | Current | 189,924 | 275,325 | | Overdue Less Than 30 Days | 135,449 | 146,867 | | Overdue 31 to 60 Days | 36,187 | 28,525 | | Overdue 61 to 90 Days | 9,643 | 8,700 | | Overdue Over 90 Days | 14,061 | 12,608 | | Total Overdue Amount | 195,340 | 196,700 | | Total | 385,264 | 472,025 | [Other Payables](index=12&type=section&id=Other%20Payables) As of June 30, 2023, total other payables were RMB310.28 million, including sales rebates, employee benefits, and accrued expenses Other Payables Breakdown | Item | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | Sales Rebates | 53,076 | 23,353 | | Salaries, Wages, Bonuses and Other Welfare Payables | 50,395 | 108,912 | | Accrued Expenses | 70,945 | 61,174 | | Performance Deposits | 78,629 | 53,110 | | Payables for Purchase of Property, Plant and Equipment | 7,536 | 14,535 | | Amounts Due to Related Parties | 43,500 | 43,500 | | Others | 6,200 | 23,984 | | Total | 310,281 | 328,568 | [Dividends](index=12&type=section&id=Dividends) The Company will not pay an interim dividend for the six months ended June 30, 2023, consistent with the prior year - The Company will not pay an interim dividend for the six months ended June 30, 2023 (2022: nil)[36](index=36&type=chunk) Management Discussion and Analysis [Macroeconomic Environment](index=13&type=section&id=Macroeconomic%20Environment) Global economic uncertainties and domestic pressures of weak demand and supply shocks continue to impact the operating environment - Since 2023, global systemic risks have intensified due to the impact of global economic policy uncertainties, energy crises, and inflation[38](index=38&type=chunk) - The Chinese economy continues to face the triple pressures of weak demand, supply shocks, and weakening expectations[38](index=38&type=chunk) - Domestic catering revenue grew by **21.4%** year-on-year in the first half, but the year-on-year growth in June's catering revenue declined from **43.8%** in April to **16.1%**, indicating an unstable foundation for current demand recovery[38](index=38&type=chunk) [Performance Review](index=14&type=section&id=Performance%20Review) In H1 2023, the Group achieved 12.4% revenue growth and 20.6% profit growth, driven by the food business and strategic initiatives - In the first half of 2023, the Group's operating revenue was **RMB3,142,785 thousand**, a **12.4% increase** year-on-year, and profit attributable to equity holders was **RMB40,757 thousand**, a **20.6% increase** year-on-year[62](index=62&type=chunk) - The primary reason for the year-on-year profit growth is the Group's effective strategy of leveraging the food business as a leader to drive overall integrated development, with the food business achieving double-digit growth in both revenue and gross profit[62](index=62&type=chunk) - The Group's newly constructed food, slaughtering, and feed plants in Bengbu, Anhui Province, are progressing smoothly and are expected to commence operations sequentially in the third quarter, which will help consolidate and expand its market position in the Yangtze River Delta region[63](index=63&type=chunk) Proportion of Group's Total Operating Revenue and Gross Profit by Business Segment in H1 2023 | Business Segment | Proportion of Total Operating Revenue (%) | Proportion of Total Gross Profit (%) | | :--- | :--- | :--- | | Food Business | 35.8 | 66.4 | | Feed Business | 35.4 | 19.9 | | Meat Products Business | 28.8 | 13.7 | [Processed Food Segment](index=15&type=section&id=Processed%20Food%20Segment) The processed food business saw revenue and gross profit grow by 11.9% and 14.0% respectively in H1 2023, driven by domestic sales and export optimization Processed Food Segment Performance | Metric | 2023 (RMB '000) | 2022 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue - Mainland China | 985,955 | 873,914 | 12.8 | | Operating Revenue - Export | 137,533 | 130,059 | 5.7 | | Total Operating Revenue | 1,123,488 | 1,003,973 | 11.9 | | Gross Profit - Mainland China | 199,861 | 177,042 | 12.9 | | Gross Profit - Export | 25,030 | 20,238 | 23.7 | | Total Gross Profit | 224,891 | 197,280 | 14.0 | | Gross Profit Margin - Mainland China | 20.3 | 20.3 | - | | Gross Profit Margin - Export | 18.2 | 15.6 | - | | Total Gross Profit Margin | 20.0 | 19.6 | - | - Export business benefited from continuous R&D innovation, product structure optimization, improved production efficiency, and RMB depreciation, with export gross profit increasing by **23.7%** year-on-year[43](index=43&type=chunk) - The domestic food sales team increased resource allocation to direct clients, collaborated closely with strategic customers, and focused resources on promoting family-sized products in C-end retail channels, improving channel establishment and regional layout[66](index=66&type=chunk) [Livestock Feed Segment](index=16&type=section&id=Livestock%20Feed%20Segment) The livestock feed business achieved 7.9% revenue growth and 3.8% gross profit growth in H1 2023, focusing on large-scale farms and product diversification Livestock Feed Segment Performance | Metric | 2023 (RMB '000) | 2022 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,114,113 | 1,032,902 | 7.9 | | Gross Profit | 67,595 | 65,124 | 3.8 | | Gross Profit Margin | 6.1 | 6.3 | - | - In the first half of 2023, domestic hog slaughter increased by **2.6%** year-on-year, with overall market supply exceeding demand, leading to losses for small and medium-sized farms while large-scale farming enterprises expanded against the trend[67](index=67&type=chunk) - The feed business strengthened cooperation with large and medium-sized farms, secured market share through OEM models, and intensified R&D and market development for poultry and ruminant feed to diversify market risks[86](index=86&type=chunk) [Meat Products Segment](index=17&type=section&id=Meat%20Products%20Segment) The meat products business reported 19.1% revenue growth in H1 2023, but gross profit was impacted by chicken prices lagging behind costs Meat Products Segment Performance | Metric | 2023 (RMB '000) | 2022 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 905,184 | 760,009 | 19.1 | | Gross Profit | 46,434 | 44,001 | 5.5 | | Gross Profit Margin | 5.1 | 5.8 | - | - In the first half of 2023, the import of white feather broiler grandparent stock resumed, and prices for chicks, broilers, and chicken meat, after rising at the beginning of the year, entered a downward trend from early April, falling back to year-start levels by the end of June[69](index=69&type=chunk) - The meat products business is accelerating its business model transformation, restructuring its supply chain, improving contract feed performance, reducing farming risks, and focusing on differentiated product development and key account sales to enhance the meat-to-feed price spread[89](index=89&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The Group maintained a stable liquidity position in H1 2023, with increased interest-bearing borrowings and capital expenditure Liquidity and Capital Structure | Metric | 2023 June 30 (RMB '000) | 2022 Dec 31 (RMB '000) | | :--- | :--- | :--- | | Cash and Bank Balances | 529,677 | 532,274 | | Interest-bearing Borrowings | 489,025 | 377,240 | | Interest-bearing Borrowings to Equity Ratio (%) | 20.7 | 16.2 | | Current Ratio (times) | 2.01 | 2.02 | - The Group spent **RMB263,525 thousand** on purchasing property, plant and equipment in the first six months of 2023, primarily funded by long-term bank loans[72](index=72&type=chunk) - Interest expense was **RMB7,103 thousand**, a **65.2% increase** from the same period in 2022, mainly due to rising USD borrowing rates[74](index=74&type=chunk) - The **3.61% depreciation** of RMB against the USD had no significant impact on the Group's operations[73](index=73&type=chunk) [Pledged Assets](index=19&type=section&id=Pledged%20Assets) As of June 30, 2023, the Group had no assets pledged as collateral for bank credit - As of June 30, 2023, the Group had no assets pledged as collateral for bank credit[94](index=94&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) The Group has capital commitments for contracted but unprovided amounts and authorized but uncontracted projects Capital Commitments | Type of Capital Commitment | Amount (RMB '000) | | :--- | :--- | | Contracted but not Provided for in the Financial Statements | 390,799 | | Authorized but not Contracted for | 59,591 | [Employee Remuneration and Training](index=19&type=section&id=Employee%20Remuneration%20and%20Training) The Group employs 7,896 individuals, providing competitive compensation and extensive training programs - As of June 30, 2023, the Group had **7,896 employees** (December 31, 2022: 7,936 employees)[95](index=95&type=chunk) - The Group regularly reviews its remuneration and benefits policies based on industry standards, financial performance, and individual employee performance, providing fair and competitive compensation, along with additional benefits such as insurance, medical benefits, and provident funds[76](index=76&type=chunk) - The Group provides various training programs for management and other employees to continuously enhance their work skills and industry knowledge[95](index=95&type=chunk) Other Information [Corporate Governance Code](index=20&type=section&id=Corporate%20Governance%20Code) The Company complies with the Corporate Governance Code, with the combined Chairman and CEO role deemed beneficial for strategy and efficiency - The Company has complied with the Corporate Governance Code set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, although the roles of Chairman and Chief Executive Officer are combined in Mr. Wei Junxian[77](index=77&type=chunk)[97](index=97&type=chunk) - The Board believes this structure does not impair the balance of power and authority between the Board and the Company's management, and it facilitates the execution of the Group's business strategies and enhances operational efficiency[97](index=97&type=chunk) [Standard Code for Securities Transactions by Directors](index=21&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted and all directors complied with a code for securities transactions during H1 2023 - The Company has adopted a code no less exacting than the standard set out in Appendix 10 of the Listing Rules to govern directors' securities transactions[99](index=99&type=chunk) - Following specific enquiries by the Company to all Directors, all Directors confirmed their compliance with the Standard Code and the Company's code of conduct regarding directors' securities transactions for the six months ended June 30, 2023[99](index=99&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 engaged in purchasing, redeeming, or selling listed securities in H1 2023 - During the six months ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[100](index=100&type=chunk) [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, composed of independent non-executive directors, reviewed interim results and found no accounting discrepancies - 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 of the Company[80](index=80&type=chunk) - The Audit Committee has reviewed the Company's interim results and has no disagreement with the accounting treatments adopted by the Company[100](index=100&type=chunk) [Board of Directors](index=21&type=section&id=Board%20of%20Directors) The Board comprises executive, non-executive, and independent non-executive directors, including the Chairman - The Company's executive directors are Mr. Wei Junxian (Chairman) and Mr. Han Jiayin; non-executive directors are Mr. Han Jiayu, Mr. Han Jiachen, Mr. Han Jiahuan, Mr. Zhao Tianxing, and Mr. Yu Anning; independent non-executive directors are Mr. Ding Yushan, Mr. Hsia Lii-Yan, Ms. Tsai Yu-Ling, and Mr. Kao Kung-Lien[81](index=81&type=chunk)

[Performance Announcement and Financial Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E5%85%AC%E4%BD%88%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides an overview of the company's unaudited consolidated financial results for the first quarter of 2023 [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) DaChan Food (Asia) Ltd. announced unaudited Q1 2023 consolidated results, with operating revenue up 14.4% and profit attributable to shareholders surging 83.0% to RMB 0.010 per share Key Financial Data for Q1 2023 | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | 14.4 | | Gross Profit | 156,469 | 143,311 | 9.2 | | Gross Profit Margin (%) | 10.2 | 10.7 | - | | Profit Attributable to Shareholders | 10,244 | 5,599 | 83.0 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | - | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated income statement and statement of financial position for the reporting period, detailing revenue, profit, assets, and liabilities [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For Q1 2023, the company reported RMB 1,529,353 thousand in operating revenue, RMB 156,469 thousand in gross profit, and RMB 10,244 thousand in profit attributable to shareholders, with basic EPS of RMB 0.010, all showing significant growth Key Consolidated Income Statement Data | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | | Cost of Sales | (1,372,884) | (1,193,084) | | Gross Profit | 156,469 | 143,311 | | Operating Profit | 22,193 | 17,198 | | Profit Before Tax | 18,964 | 14,301 | | Profit for the Period | 17,180 | 10,138 | | Profit Attributable to Shareholders | 10,244 | 5,599 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2023, total assets less current liabilities were RMB 2,664,462 thousand, with net assets of RMB 2,343,283 thousand, reflecting adjustments in asset structure with increased non-current assets and decreased current assets and liabilities Key Consolidated Statement of Financial Position Data | Metric | March 31, 2023 (RMB Thousand) | December 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,759,071 | 1,669,235 | | Current Assets | 1,756,028 | 1,902,042 | | Current Liabilities | 850,637 | 940,726 | | Net Current Assets | 905,391 | 961,316 | | Total Assets Less Current Liabilities | 2,664,462 | 2,630,551 | | Net Assets | 2,343,283 | 2,323,107 | | Total Equity Attributable to Shareholders | 2,084,803 | 2,071,396 | [Business Operations and Financial Review](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E7%87%9F%E9%81%8B%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the company's Q1 2023 business performance, including segment-specific operational highlights, strategic outlook, and financial structure analysis [Performance Summary](index=5&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) Q1 2023 saw significant growth in operating revenue and profit attributable to shareholders, driven by the meat product business's operational transformation, key client development, rising chicken prices, and successful food business channel strategies - Revenue and profit **significantly improved**, primarily due to the **successful transformation** of the meat product business operating model, **continuous development** of key accounts and refined processing, and **rising chicken prices**; the food business's **clear and effective channel strategy** also drove **steady profit growth**[32](index=32&type=chunk) [Food Business](index=5&type=section&id=%E9%A3%9F%E5%93%81%E4%BA%8B%E6%A5%AD) The food business achieved 8.7% revenue growth and 14.4% gross profit growth in Q1, driven by increased direct client investment and C-end retail channel promotion for domestic sales, and 19.8% export revenue growth with 60.8% gross profit growth due to RMB depreciation, R&D, and efficiency gains Key Financial Indicators for Food Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 8.7 | | Gross Profit | 14.4 | | Export Food Revenue | 19.8 | | Export Gross Profit | 60.8 | - Domestic food sales team **increased resource allocation to direct clients**, collaborated closely with strategic clients (e.g., large membership stores, convenience store chains, restaurant chains), and **focused resources on promoting family-sized products** across e-commerce platforms, community group buying, and chain supermarkets for C-end retail channels[32](index=32&type=chunk) - Export business benefited from **RMB depreciation**, continuous R&D innovation, optimized product structure, and improved production efficiency, overcoming severe inflation in Japan and low-price competition from Thailand's exports to Japan[32](index=32&type=chunk) [Feed Business](index=5&type=section&id=%E9%A3%BC%E6%96%99%E4%BA%8B%E6%A5%AD) The feed business saw 9.5% revenue growth in Q1 but a 21.9% gross profit decrease due to rising raw material prices; it responded to a sluggish hog market and farming losses by integrating functions, diversifying raw materials, and developing poultry and ruminant feed markets to mitigate risks Key Financial Indicators for Feed Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 9.5 | | Gross Profit | -21.9 | - The market faces a severe situation with an **oversupply of domestic live hogs**, sluggish pork and live hog prices, and **persistently high feed costs** for hog farming leading to **continuous losses**[33](index=33&type=chunk) - Response strategies include accelerating mid-office function integration, strengthening cross-functional collaboration in product R&D, raw material procurement, production processes, quality control, and technical services, and promoting diversified raw material usage to **reduce feed costs**[33](index=33&type=chunk) - Actively investing resources to **strengthen R&D and market development for poultry and ruminant feeds**, exploring markets beyond hog feed, and diversifying product categories to **mitigate market risks**[33](index=33&type=chunk) [Meat Product Business](index=6&type=section&id=%E8%82%89%E5%93%81%E4%BA%8B%E6%A5%AD) The meat product business achieved 30.2% revenue growth and 72.2% gross profit growth in Q1, driven by rising chicken prices due to reduced chick and broiler supply, and operational model adjustments focusing on refined processing, differentiated products, optimized sales channels, and enhanced brand value Key Financial Indicators for Meat Product Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 30.2 | | Gross Profit | 72.2 | - Chicken prices increased by approximately **15% year-on-year**, primarily due to low chick prices at the end of last year leading some parent stock farms to forced molting, resulting in **reduced chick and broiler supply** in Q1 this year[35](index=35&type=chunk) - Operational model adjustments include focusing on **refined processing and differentiated meat products**, increasing output value through close collaboration with key clients; actively developing quality-focused clients such as fresh food chains and membership stores, phasing out price-sensitive clients, and **optimizing sales channels**[35](index=35&type=chunk) - Continuously improving the performance of contract feed, **reducing breeding and broiler farming risks**, and **enhancing the relative competitiveness** of the industrial chain[35](index=35&type=chunk) [Outlook and Strategy](index=6&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E6%88%B0%E7%95%A5) For Q2, the company will lead with food for growth, stabilize feed sales through diversification, improve meat product operations by focusing on end-market development and cash flow, and advance group-wide scaling, diversification, and value-added strategies with digital transformation and supply chain optimization; a new Anhui Bengbu plant is expected to launch in H2, strengthening the Yangtze River Delta market and upgrading the food business - The group's strategy involves a coordinated approach of "**food scaling, feed diversification, and meat product value-adding**," steadily advancing **digital transformation**, optimizing supply chain management, improving operational efficiency, and enhancing the group's overall **industrial competitiveness and anti-cyclical capabilities**[35](index=35&type=chunk) - Construction of **new food processing, broiler slaughter, and feed processing plants** in Bengbu, Anhui Province, is progressing smoothly, with **phased commissioning expected in the second half of this year**, which will help **consolidate and expand the group's market position in the Yangtze River Delta** and elevate the food business strategy[36](index=36&type=chunk) - External uncertainties include the significant impact of the **Russia-Ukraine war** on the global economy and the shock caused by **US dollar interest rate hikes** to the global financial system[35](index=35&type=chunk) [Financial Structure](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E7%B5%90%E6%A7%8B) As of March 31, 2023, the group maintained a healthy financial structure with net assets of approximately RMB 2,343,283 thousand, cash and cash equivalents representing 12.9% of total assets, a slightly increased current ratio of 2.06x, and an interest-bearing debt-to-equity ratio of 17.6% Key Financial Structure Indicators | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Assets (RMB Thousand) | 2,343,283 | 2,323,107 | | Cash and Cash Equivalents as % of Total Assets | 12.9 | - | | Current Ratio (x) | 2.06 | 2.02 | | Interest-Bearing Debt to Equity Ratio (%) | 17.6 | 16.2 | [Other Information](index=1&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section provides additional information on securities transactions, audit committee review, board composition, compliance with listing rules, and details regarding the company's parent entity [Purchase, Sale or Redemption of Securities](index=7&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%AD%89%E5%88%B8) For the three months ended March 31, 2023, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - The company and its subsidiaries did not engage in any purchase, redemption, or sale of listed securities during the reporting period[1](index=1&type=chunk) [Audit Committee](index=7&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The company's Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023 - The Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023[2](index=2&type=chunk) [Board Composition](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E7%B5%84%E6%88%90) As of the announcement date, the Board of Directors comprises two executive directors (including the Chairman), five non-executive directors, and four independent non-executive directors - The Board of Directors includes **2 executive directors** (Mr. Wei Chun Hsien as Chairman), **5 non-executive directors**, and **4 independent non-executive directors**[12](index=12&type=chunk) [Compliance with Listing Rules](index=1&type=section&id=%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E5%90%88%E8%A6%8F%E8%81%B2%E6%98%8E) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement, which aims to timely disclose financial information to shareholders and potential investors in compliance with Listing Rule 13.09 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[4](index=4&type=chunk) - This announcement aims to timely disclose the company's financial information to its shareholders and potential investors in compliance with Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) [Parent Company Information](index=6&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd., which indirectly holds approximately 52.04% of its issued shares; the group's operating results are consolidated into DaChan Great Wall's financial statements, which are prepared and published quarterly per Taiwan's securities regulations - The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd. (whose shares are listed on the Taiwan Stock Exchange), with DaChan Great Wall indirectly holding approximately **52.04%** of the company's issued shares[37](index=37&type=chunk) - The group's operating results are consolidated into DaChan Great Wall Enterprise's financial statements, and DaChan Great Wall is required to prepare and publish consolidated quarterly financial reports and its quarterly operating results on its website in accordance with Taiwan's Securities and Exchange Act and Taiwan Stock Exchange listing rules[37](index=37&type=chunk)

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].