Financial Performance - For the year ended December 31, 2021, the turnover was RMB 9,350,465, representing a 0.8% increase from RMB 9,278,864 in 2020[17] - Profit attributable to owners of the Company decreased by 23.4% to RMB 155,473 from RMB 202,890 in the previous year[17] - Total assets decreased by 20.5% to RMB 3,441,261 from RMB 4,329,284 in 2020[17] - The return on total assets was 5.81%, down from 7.02% in 2020, reflecting a decline of 17.2%[17] - Basic profit per share fell by 25.0% to RMB 0.15 from RMB 0.20 in 2020[17] - The net profit margin for the year was 1.1%, down from 2.6% in 2020[21] - The gross profit for 2021 was RMB 819.0 million, reflecting a year-on-year decline of 20.1%, with a gross profit margin of 8.8%[45] - The overall operating profit of the group decreased by approximately 30% year-on-year, but it still maintained a positive profit performance[31] - In 2021, the profit attributable to shareholders decreased by approximately 23.4% year-on-year, amounting to approximately RMB 155,473 thousand, marking the second highest profit in the past ten years[53][55] - The total gross profit for 2021 was approximately RMB 819,048 thousand, reflecting a year-on-year decrease of approximately 20.1%[69] Market Challenges and Strategies - The company faced challenges including a slowdown in consumer demand growth, rising costs, and a significant decline in profitability in the food export segment due to unfavorable market conditions[31] - Despite these challenges, DaChan Food's turnover in the PRC (excluding Southeast Asia) grew by approximately 6.2% year-on-year[31] - The company sold its Southeast Asian feed business to strengthen its financial position and support the construction of a new plant in Bengbu[42] - DaChan Food plans to complete the Bengbu plant by the second quarter of 2023, despite delays caused by rising construction costs[34] - The company is optimistic about the long-term growth of the domestic consumption market in China and will focus resources on this area[34] - Investment in human resources and the development of a digital supply chain system are part of the company's strategy to enhance competitiveness[34] - The Group plans to strengthen cash flow management and reduce operating costs while exploring new growth sources[65] - The Group is focusing on product diversification to mitigate market risks, particularly in the feeds segment[65] Production and Operational Insights - The production volume of live pigs in China reached 670 million in 2021, an increase of 27.4% year-on-year, while pork production was 52.96 million tons, up 28.8% year-on-year[51] - The production capacity of white feather meat chicken reached 5.38 billion in 2021, representing a year-on-year increase of 7.8%, the highest in the past ten years[51] - The domestic feeds segment's operating income increased by approximately 12.5% year-on-year, despite challenges from rising raw material costs[59] - The gross profit of the domestic feeds segment remained flat year-on-year despite rising raw material costs, indicating strong product competitiveness[61] - The Group is actively promoting family-sized products across various retail channels, including e-commerce platforms and community stores, to improve market reach[54][56] Leadership and Governance - Mr. Harn Jia-Chen has been re-designated as an executive director and chairman of the board since March 1, 2020, after serving as a non-executive director since 2007[125] - The company has a strong leadership team with extensive experience in the food and agriculture sectors, enhancing its strategic direction and operational efficiency[128] - The board of directors includes members with significant experience in investment management and agricultural economics, supporting informed decision-making[130] - The Company has adopted a corporate governance code based on the Listing Rules to enhance corporate transparency and governance standards[162] - The Board consists of 9 directors, all industry leaders, responsible for overseeing management performance and evaluating management policies[181] Future Outlook and Investments - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to $1.32 billion[136] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[137] - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[138] - Market expansion plans include entering three new countries, which are projected to increase market share by 5%[139] - The company is considering strategic acquisitions to bolster its supply chain, with a budget of $100 million allocated for potential deals[140] Sustainability and Corporate Responsibility - The board of directors emphasized the importance of sustainability initiatives, committing to a 40% reduction in carbon emissions by 2025[143] - The Group emphasizes high standards of quality control and has implemented a traceability system for its products[13] - DaChan Food aims to enhance the efficiency and additional value of the entire food production chain while fulfilling its social responsibilities[11]

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

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

COVID-19 and Market Challenges - The management team of DaChan Food has effectively responded to challenges posed by COVID-19 and African swine fever, achieving excellent performance in the first quarter of 2020[12]. - The COVID-19 pandemic led to significant declines in the food and beverage industry, particularly affecting demand for half- and fully-cooked chicken products[12]. - Recruitment difficulties at meat and food factories were exacerbated by the pandemic, impacting operational management across various centers in China[12]. - The livestock industry in China is undergoing reshuffling, with some pig breeding enterprises thriving while others are declining[12]. - The management team remains united and vigorous in addressing market challenges and adapting to new industry changes[12]. Financial Performance - DaChan Food's performance in the first half of 2020 reflects resilience despite adverse market conditions[12]. - DaChan Food's turnover for the first half of 2020 was RMB 4,227,285 thousand, representing a 14.1% increase compared to RMB 3,705,849 thousand in the same period of 2019[24]. - The gross profit for the first half of 2020 was RMB 474,400 thousand, up 20.9% from RMB 392,482 thousand year-on-year[24]. - Profit attributable to shareholders surged to RMB 85,144 thousand, a significant increase of 544.5% compared to RMB 13,210 thousand in the previous year[24]. - The profit for the period increased significantly to RMB 135,059 thousand in 2020 from RMB 37,213 thousand in 2019, representing a growth of 263%[76]. Segment Performance - The gross profit margin for the meat product segment decreased from 8.4% to 6.6%, with a year-on-year decrease in profit of approximately RMB 11,028 thousand[28]. - The sales volume of feeds increased by approximately 47.1% year-on-year, with the gross profit margin rising from 7.7% to 9.3%, resulting in an increase of RMB 45,200 thousand in gross profit[28]. - The processed food segment achieved a year-on-year operating income growth of approximately 3.8%, despite a slight decrease in sales volume[30]. - The gross profit margin of the processed food segment increased from approximately 15% to approximately 18.3% year-on-year, resulting in an increase of RMB 36,385 thousand in gross profit[30]. - The total turnover for the Southeast Asia segment was RMB 2,501,004 thousand, reflecting a 21.7% increase compared to RMB 2,055,211 thousand in the previous year[45]. Market Conditions and Strategic Responses - The overall demand for pig feed has decreased, and the pig slaughter rate recovery remains sluggish due to ongoing issues with African swine fever in China, Vietnam, and Malaysia[12]. - The company aims to leverage the interim report to inform shareholders about the evolving livestock industry and its strategic responses[12]. - DaChan Food has expanded its product offerings to include poultry and ruminant feed customers in response to market challenges[17]. - The company is increasing its R&D investment in preparation for a comprehensive ban on antibiotics[17]. - The introduction of strategic cooperation partners has improved the quality and supply of day-old chicks, benefiting overall farming efficiency[44]. Cash Flow and Financial Position - As of June 30, 2020, the Group's cash and bank deposit balances amounted to approximately RMB 589,591 thousand, an increase of approximately RMB 219,489 thousand compared to December 31, 2019[60]. - Cash generated from operations for the six months ended June 30, 2020, was RMB 123,163 thousand, an increase of 69% compared to RMB 72,702 thousand in 2019[99]. - Net cash generated from operating activities was RMB 97,117 thousand, up 56% from RMB 62,354 thousand in the same period last year[99]. - The net increase in cash and cash equivalents for the period was RMB 217,219 thousand, compared to a decrease of RMB 49,932 thousand in the previous year[99]. - Cash and cash equivalents increased to RMB 589,591 thousand from RMB 370,102 thousand, showing a substantial rise of 59%[80]. Taxation and Compliance - The corporate income tax rate for the Group entities in the PRC remained at 25% for the six months ended June 30, 2020, consistent with the previous year[176]. - The corporate income tax rate for the subsidiary in Malaysia was 24% for the six months ended June 30, 2020, unchanged from the prior year[177]. - Asia Nutrition Technologies (VN) Co., Ltd. was subject to a preferential corporate income tax rate of 15% for the six months ended June 30, 2020, the same as the previous year[178]. - The report indicates that the company has not applied any new standards or interpretations that are not yet effective for the current accounting period[134]. - The interim financial report was authorized for issue on August 5, 2020, and complies with International Accounting Standards[106].

Financial Performance - For the year ended December 31, 2019, the turnover reached RMB 8,035,206, representing an increase of 11.7% compared to RMB 7,191,911 in 2018[16] - Profit attributable to owners of the Company was RMB 133,683, a significant increase of 917.8% from the previous year's profit of RMB 13,135[16] - Total assets increased by 3.7% to RMB 4,047,937 from RMB 3,903,038 in 2018[16] - The net assets rose by 10.1% to RMB 2,012,482, compared to RMB 1,827,849 in 2018[16] - Basic profit per share increased to RMB 0.13, up 1,200.0% from RMB 0.01 in 2018[16] - Return on total assets improved to 5.09%, a 220.1% increase from 1.59% in 2018[16] - The gearing ratio decreased significantly to 43.9% from 62.1%, reflecting a reduction of 29.3%[16] - Gross profit for 2019 was RMB 981,575, representing a 29.1% increase from RMB 760,300 in 2018[37] - The gross profit margin improved to 12.2% in 2019, up from 10.6% in 2018[37] - The Group's gross profit amounted to approximately RMB 981,575 thousand, representing an increase of approximately 29.1% compared to last year[47] - The gross profit margin for the feeds segment increased to 10.0%, up from 7.5% in the previous year[65] - The gross profit of the meat segment increased by approximately RMB 69,372 thousand, representing a growth of 53.3% compared to the same period last year[59] - The gross profit margin for the total processed food segment was 16.9%, down from 17.2% in 2018[72] - The gross margin improved to 35%, up from 30% in the previous year, indicating better cost management[144] Market Segmentation - The meat segment accounted for 54.5% of total turnover, while feeds to external customers contributed 25.4% and processed foods made up 15.8%[19] - The food segment's revenue accounted for 34.5% of the Group's total operating income, ranking first among the three domestic segments in the PRC[47] - The Group's meat segment accounted for 20.1% of total operating income[47] - The domestic chicken meat supply increased by approximately 15% compared to 2018, driven by the demand for chicken as an alternative to pork due to African swine fever[40] - Domestic food sales volume increased by 10%[45] - The sales volume of poultry feed increased by 31.9% year-on-year, with its proportion in total sales volume rising from 30.3% to 37.4%[67] Strategic Initiatives - DaChan Food aims to invest heavily in biotechnology and information technology innovations to enhance its competitive edge in the market[10] - The company plans to leverage its one-stop service advantage to expand its food product offerings post-COVID-19[26] - The company aims to expand its market share in the food segment, particularly in baking, group meals, and catering enterprises affected by the pandemic[26] - The Group expects that by 2020, 50% of day-old chicks will be supplied by self-owned farms[42] - The Group aims to achieve 50% of day-old chicks from self-breeding farms and cooperative farms in 2020, with the remaining 50% sourced through strategic cooperation contracts[63] - The company is actively adjusting its product structure and optimizing processes in response to rising raw meat prices[78] - The company plans to enhance its core competitiveness in poultry feeds and strengthen the management of bulk raw materials procurement systems[71] - The company is exploring new strategies for market expansion and product development, leveraging its experienced management team[100] - The company is investing $10 million in R&D for new technologies aimed at enhancing product quality and efficiency[106] - Market expansion plans include entering two new countries, which are projected to add $30 million in revenue within the first year[104] Management and Governance - The company has a strong leadership team with extensive experience in finance and the agricultural and livestock food industry, enhancing its operational capabilities[100] - The board includes members with diverse backgrounds, including agricultural economics and food industry management, which supports strategic decision-making[100] - The company has been focusing on integrating finance with agricultural and livestock food operations, aiming for enhanced efficiency and growth[98] - The leadership team has held significant positions in various financial and agricultural organizations, indicating a robust network and industry knowledge[100] - The Board comprises 8 Directors, all being industry veterans responsible for formulating overall business development targets and long-term company strategies[132] - The independent non-executive Directors account for one-third of the Board members, ensuring high standards of financial and mandatory reporting[138] - The Company has a clear policy for the segregation of duties and responsibilities between the Board and management[1] - The Board has established a Nomination Committee to set standards for appointing high-quality Directors to achieve sustainable development[158] - The Company adopted a Board Diversity Policy on 9 August 2013 to enhance the effectiveness of the Board[197] Challenges and Responses - The COVID-19 outbreak has introduced uncertainties affecting operations and financial conditions, prompting the Group to implement contingency measures[82] - The management team is focused on minimizing the impact of COVID-19, benefiting from government support for the feeds and meat segments[26] - The company is considering strategic acquisitions to bolster its market position, with a budget of $25 million allocated for potential deals[106] - The company is focusing on developing customer bases in regions like Singapore and Hong Kong to diversify export market risks[82] Future Outlook - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 20% to $600 million[106] - The company announced plans for market expansion into Southeast Asia, targeting a 15% market share within the next three years[123] - The company provided an optimistic outlook for 2020, projecting a revenue growth of 10% to 12%, driven by new product launches and market expansion strategies[123] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[105] - The company has achieved a gross margin of 40%, reflecting improved operational efficiency compared to the previous year[104] Employee and Training - The Group had a total of 9,900 employees as of December 31, 2019, down from 10,619 employees in 2018, with a focus on employee training and development[94] - Directors received training on their roles and responsibilities, including legal and regulatory developments, during the period from January 1, 2019, to December 31, 2019[167] - The Company ensures that newly appointed Directors are acquainted with their duties and the business operations[162] Financial Health and Investments - The company reported a significant increase in revenue for the year ended December 31, 2019, with total revenue reaching approximately $1.2 billion, representing a year-over-year growth of 15%[123] - The company has a strong management team with extensive experience in finance, including Mr. Chang Chin-Pyng, who has served as Chief Financial Officer since January 1, 2019, and has a background in investment and financial management[116] - The company has implemented new strategies to enhance customer engagement, resulting in a 25% increase in customer retention rates[144] - The board of directors has approved a dividend payout of $0.50 per share, reflecting confidence in the company's financial health[106]

Market Impact and Performance - The African swine fever significantly impacted DaChan, expanding its effects to Vietnam and affecting the pig breeding industry[21]. - The company reported a consistent growth in revenue and profitability in its feed business despite external challenges[21]. - The overall performance reflects the company's commitment to adapting to market conditions and enhancing operational efficiency[20]. - The Group is actively expanding its market share in exports to regions such as Hong Kong and Macau while maintaining its advantages in exports to Japan[25]. - The Group plans to enhance cooperation with farmers in breeding and meat chicken farming to improve overall profitability and risk resilience in response to the anticipated shortage of pork supply due to African swine fever[41]. Financial Performance - The overall gross profit of the Group was approximately RMB 392,482 thousand, representing an increase of approximately 15.8% compared to RMB 339,034 thousand in the same period last year[28]. - Profit attributable to shareholders of the Company was approximately RMB 13,210 thousand, reflecting a year-on-year increase of approximately 55.3% from RMB 8,505 thousand[28]. - The domestic feed segment's gross profit grew by approximately 7.2% year-on-year, while the Southeast Asian feed segment achieved a gross profit growth of 20.4% with a sales increase of approximately 5.6% year-on-year[32][33]. - The meat segment's gross profit increased by approximately 72.9% compared to the same period in 2018, driven by favorable market conditions in the first half of 2019[30]. - The Group's operating income for the meat segment increased by 30.3% year-on-year, reaching RMB 739,374,000 in the first half of 2019[44]. - Gross profit for the meat segment rose by 72.9% year-on-year to RMB 62,245,000, with a gross profit margin of 8.4%[44]. - The processed food segment's operating income grew by approximately 20.4% year-on-year, reaching RMB 911,264,000[58]. - The Group recorded a gross profit of approximately RMB 392,482 thousand, compared to RMB 339,034 thousand in the same period of 2018, reflecting an increase of approximately 15.7%[88]. - The profit for the period increased to RMB 37,213,000, up from RMB 21,433,000 in the previous year, representing a growth of 73.6%[91]. - Total comprehensive income for the period reached RMB 49,718,000, significantly higher than RMB 11,236,000 in the same period last year, marking a year-over-year increase of 342.5%[91]. Cost and Expenses - The Group's finance costs increased by approximately RMB 8,571 thousand due to rising borrowing rates year-on-year[38]. - The Group's interest expense increased to approximately RMB 23,734 thousand, representing a rise of approximately 56.5% compared to RMB 15,163 thousand in the same period of 2018[78]. - Administrative expenses decreased to RMB 139,215,000 in 2019 from RMB 148,140,000 in 2018, showing a reduction of about 6%[135]. - The group recorded a net loss of RMB 5,582,000 from other net gains/losses in 2019, a significant decline from a gain of RMB 21,065,000 in 2018[138]. Cash Flow and Assets - As of June 30, 2019, the Group's cash and bank deposits totaled approximately RMB 361,546 thousand, a decrease of approximately RMB 47,175 thousand compared to December 31, 2018[69]. - For the six months ended June 30, 2019, cash generated from operations was RMB 72,702 thousand, a significant improvement compared to a cash used of RMB 305,423 thousand in the same period of 2018[105]. - The net cash generated from operating activities was RMB 62,354 thousand, contrasting with a net cash used of RMB 315,425 thousand in the previous year[105]. - The total amount of other receivables and prepayments increased to RMB 502,127,000 as of 30 June 2019 from RMB 456,849,000 as of 31 December 2018, an increase of approximately 9.8%[190]. Segment Performance - The chicken meat segment generated revenue of RMB 1,007,317 thousand, up from RMB 771,482 thousand in 2018, reflecting a growth of about 30.6%[131]. - The livestock feeds segment reported revenue of RMB 2,390,460 thousand, compared to RMB 2,308,237 thousand in the previous year, indicating an increase of approximately 3.5%[131]. - The processed foods segment's revenue was RMB 911,264 thousand, a slight increase from RMB 803,784 thousand in 2018, showing a growth of around 13.4%[131]. - Livestock feeds segment gross profit rose to RMB 193,851 thousand from RMB 166,512 thousand, reflecting an increase of about 16.4%[131]. - Processed foods segment gross profit remained stable at RMB 136,386 thousand, slightly down from RMB 136,512 thousand in the previous year[131]. Strategic Initiatives - The management team proposed integrated actions for the meat segment, focusing on upgrades from farm to hardware improvements[22]. - The management team has emphasized the importance of a traceability system and food safety center as core competitive advantages supporting sustained growth[25]. - The Group's strategic focus includes optimizing internal management and expanding partnerships with breeding farms to enhance operational efficiency[41]. - The Group continues to invest in research and development for processed food to strengthen its core competitiveness[63].

Financial Performance - For the year ended December 31, 2018, the turnover was RMB 7,191,911, a decrease of 15.5% from RMB 8,507,477 in 2017[20] - Profit attributable to owners of the Company was RMB 13,135, down 54.9% from RMB 29,120 in 2017[20] - Total assets decreased by 2.4% to RMB 3,903,038 from RMB 3,998,797 in 2017[20] - The basic profit per share was RMB 0.01, a decline of 66.7% from RMB 0.03 in 2017[20] - Return on total assets was 1.59%, down 31.0% from 2.30% in 2017[20] - Gearing ratio increased to 62.1%, up 28.3% from 48.4% in 2017[20] - The gross profit for 2018 was RMB 760,300, down 6.8% from RMB 815,942 in 2017, with a gross profit margin of 10.6%[47] - In 2018, the Group's turnover decreased by approximately RMB1,315,566 thousand, with RMB1,212,632 thousand attributed to changes in income recognition principles[60] - The Group's gross profit decreased by approximately RMB55,642 thousand due to declines in both domestic and Vietnamese feed performance[61] - Profit attributable to equity shareholders decreased by approximately RMB15,985 thousand compared to the previous year[62] Market and Industry Trends - The domestic chicken market demand rose steadily due to the outbreak of African swine fever, with the price of day-old chicks reaching a record high of RMB 8.5[49] - The domestic feed industry shifted its focus to poultry feed to minimize the adverse impact of the African swine fever epidemic on profitability[54] - The catering industry is facing stricter quality requirements, which aligns with DaChan's strategy of food safety and traceability[33] Operational Strategies - The Group operates over 30 factories across China, Vietnam, and Malaysia, enhancing its market position for rapid growth[9] - The Group is committed to developing new high value-added products using the latest food science and technology[14] - The company plans to introduce more diverse ingredients to provide complete catering solutions in the future[33] - DaChan Food aims to improve its relative competitiveness by leveraging its experience and technological know-how from Taiwan[43] - The company will cautiously consolidate its market position and enhance competitiveness through collaboration with other subsidiaries[44] - The Group plans to expand the scale of self-owned parent breeders to ensure a supply of high-quality day-old chicks[71] - The Group aims to increase the ratio of converting chicken meat to prepared and deeply processed food products to mitigate market risks[71] Segment Performance - The meat product segment's turnover was RMB1,134,149 thousand, a decrease of 52.4% from RMB2,382,142 thousand in 2017[65] - Gross profit for the meat product segment increased by approximately RMB47,842 thousand, representing a growth of 58.2%[68] - The total turnover for the livestock feeds segment was RMB4,249,355 thousand, a decrease of 5.5% from RMB4,498,662 thousand in 2017[73] - Gross profit for the livestock feeds segment decreased by 23.0% to RMB319,841 thousand from RMB415,416 thousand in 2017[73] - The gross profit margin for the feeds segment in China decreased to 5.1% from 7.7% in 2017[73] - In 2018, the gross profit of the domestic feed business in China fell by 41.4%, with total sales volume decreasing by 12% year-on-year, while broiler feeds increased by 14%[76][78] - The gross profit of the Vietnamese and Malaysian feed business decreased by 13.7% in 2018, but sales volume in the fourth quarter grew by 9.5% quarter-on-quarter and 8.7% year-on-year[79] - The processed food segment's operating income increased by 11.2% year-on-year, with sales volume growing by 7.4%[86][87] - The gross profit of exported foods grew by 13.4% year-on-year, benefiting from the appreciation of the US dollar[87] - The gross profit margin for processed food decreased to 17.2% from 19.6% year-on-year, while the gross profit margin for exports increased to 15.9% from 14.8%[83] Corporate Governance - The company emphasizes good corporate governance to maintain close relationships with employees, partners, shareholders, and investors[145] - The management team is committed to enhancing corporate transparency and governance standards[145] - The Company has adopted a corporate governance code based on the latest revised code on corporate governance as per the Listing Rules[150] - The Board consists of more than one third independent non-executive Directors, ensuring high standards of financial reporting and adequate checks and balances for safeguarding shareholder interests[172] - The Company ensures timely distribution of meeting agendas and related documents at least 3 days prior to meetings[178] - The independent non-executive Directors are responsible for ensuring the Board adheres to high standards of mandatory reporting[172] - The Company has a structured approach to corporate governance, including regular meetings and adherence to established policies[174] Management Team - The company has a strong management team with over 35 years of experience in global commodity procurement and trading operations[138] - The Chief Executive Officer, Mr. Ou Chang-Jou, has been with the company since 1980 and has extensive experience in the feed, meat, and food business operations[138] - The management team includes Mr. Han, who has extensive experience in operation analysis and strategic management since joining in 2012[143] - The company has a diverse management team with expertise across various sectors, including finance, operations, and strategic planning[143] Financial Position - As of December 31, 2018, the Group's cash and bank deposit balances amounted to approximately RMB408,721 thousand, a decrease of approximately RMB117,847 thousand from 2017[92] - Interest-bearing borrowings increased by approximately RMB234,447 thousand to approximately RMB1,135,259 thousand in 2018, compared to approximately RMB900,812 thousand in 2017[92] - The Group's interest expense in 2018 was approximately RMB35,407 thousand, a decrease of approximately 16.1% from RMB42,183 thousand in 2017[96] - In 2018, the Group's capital expenditure on the acquisition of properties, machinery, and equipment amounted to approximately RMB184,743 thousand[99] Acquisitions and Disposals - In September 2018, the Group transferred its entire equity interest in Beijing Sister Kitchen Catering Management Co., Ltd. for RMB10,000,000[110] - The Group completed the disposal of its entire equity interests in Beijing Sisters Kitchen Food and Beverage Management Co. for a consideration of RMB 10,000,000 in September 2018[112] - Following the completion of the disposals, Sisters Kitchen ceased to be a subsidiary and Better Me ceased to be an associate of the Group[112] - No other material acquisitions or disposals of subsidiaries, associates, and joint ventures occurred during the financial year ended December 31, 2018[113]