Financial Performance - Revenue for the year ended December 31, 2021, was RMB 4,416,764,000, an increase of 13.2% from RMB 3,901,615,000 in 2020[11] - Gross profit decreased to RMB 557,939,000, down 7.5% from RMB 603,246,000 in the previous year[11] - Net profit attributable to shareholders was RMB 50,911,000, a decline of 66.7% compared to RMB 152,640,000 in 2020[11] - Basic earnings per share fell to 3.6 RMB cents, down from 12.8 RMB cents in 2020[11] - The net profit for the same period was RMB 47.1 million, reflecting a significant year-on-year decrease of 69.0% due to increased costs of animal feed and decreased selling prices of raw chicken meat products[57] - The total operating costs increased by 17.0% to RMB 3,858,825,000, impacting overall profitability[105] - The Group's cash usage in 2021 was primarily for working capital and capital expenditures for production equipment and facility improvements[133][136] Sales and Market Performance - The number of white-feathered broilers bred increased by 21.6% to 140.8 million birds in 2021 from 115.8 million in 2020[12] - Sales volume of raw chicken meat products rose by 8.4% to 202.9 million kg in 2021, compared to 187.1 million kg in 2020[12] - Processed white-feathered broilers increased by 18.4% to 315.6 million kg in 2021 from 266.5 million kg in 2020[14] - Sales volume of processed chicken meat products grew by 26.2% to 107.6 million kg in 2021, up from 85.3 million kg in 2020[14] - The sales volume of chicken breeds decreased by 12.6% to 31.1 million birds in 2021 from 35.6 million in 2020[13] - Revenue from the sale of processed chicken meat products increased by 29.4% to RMB2,295.4 million in 2021, compared to RMB1,773.4 million in 2020, accounting for 52.0% of the Group's total revenue[47] - The new export business achieved sales revenue of RMB 976.5 million, representing a year-on-year growth of 12.9% and accounting for 22.1% of overall business[76] Product Development and Innovation - The company launched new products including the "Oolong Cinnamon" chicken breast protein bar and "YoYo Children Chicken Pie" targeting children's market[20][23] - The annual new product "Buzha π" won the "2021 Innovative Marketing Product Award"[29] - The Group's focus on product innovation and restructuring has led to rapid development in the "iShape" brand, contributing to record revenue growth in 2021[56] - "iShape" achieved sales revenue of RMB 489.2 million in 2021, a year-on-year growth of 111.8% from RMB 230.9 million in 2020[69] - The company launched new products such as "Buzha π", "YoYo", and "Xiao Q", which successfully passed market tests and joined the "iShape" series[71] Strategic Initiatives and Market Expansion - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming year[11] - The Group plans to optimize resource allocation and introduce quality strategic investors as part of its comprehensive transformation and upgrade strategy[37] - The Group's strategic initiatives include deepening channel deployment to achieve parallel development in core cities and lower-tier markets[38] - The Group aims to achieve synergy between the domestic and international markets through its new retail, centralized procurement, and export businesses[98] - The Group is committed to creating a leading chicken meat product brand in China through the implementation of its "123" strategy[94] Challenges and Risks - The company faced challenges from demand contraction, supply shortages, and global inflation but maintained a positive growth outlook[32][33] - The ongoing COVID-19 pandemic has caused significant disruptions, prompting the establishment of a prevention and containment team to ensure employee safety and stable production[152] - The Group anticipates challenges such as rising animal feed costs and decreased selling prices of raw chicken meat products due to COVID-19 impacts[161] - The Group faces price risks due to fluctuations in commodity prices, including corn and soybean meal, which are critical for animal feed[145] Corporate Governance and Management - The Company has established various committees, including a remuneration committee and an audit committee, to enhance governance[185] - The leadership includes both executive and non-executive directors, ensuring a balance of operational and strategic oversight[178] - The Company aims to leverage its experienced management team to navigate market challenges and capitalize on growth opportunities[173] - The management team is responsible for overseeing overall operations and ensuring effective sales and marketing functions[174] Sustainability and Quality Control - Fengxiang was recognized as a "green factory" at the national level after achieving municipal and provincial honors[28][29] - The Group has established a quality control system covering all operational stages and obtained certifications such as ISO22000, ISO9001, GLOBALG.A.P., and HACCP[147] - The company emphasizes environmental safety and project management, reflecting its commitment to sustainable practices[199]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,969,445,000, an increase from RMB 1,902,759,000 in the same period of 2020[6] - Gross profit decreased to RMB 224,683,000 in 2021 from RMB 384,139,000 in 2020, reflecting a significant decline[6] - The net loss attributable to shareholders of the parent company was RMB 46,722,000 for the first half of 2021, compared to a profit of RMB 161,376,000 in the same period of 2020[6] - The company achieved sales revenue of RMB1,969.4 million for the six months ended June 30, 2021, representing a period-on-period growth of 3.5%[27] - In the first half of 2021, the Group experienced a revenue increase of 3.5% compared to the first half of 2020, while gross profit decreased by 41.5%[86] - The Company recorded a basic loss per share of RMB(0.03) for the first half of 2021[86] - Net loss for the period was RMB47.4 million, a decrease of 129.4% compared to a net profit of RMB161.0 million in the same period of 2020[88] Sales and Production - The number of white-feathered broilers bred increased by 18.9% to 66.3 million in the first half of 2021, compared to 55.8 million in 2020[7] - White-feathered broilers slaughtered rose by 10.2% to 54.0 million in the first half of 2021, up from 49.1 million in 2020[7] - Processed chicken meat products sales volume increased by 29.2% to 48.9 million kg in the first half of 2021, compared to 37.8 million kg in 2020[8] - Sales volume of raw chicken meat products decreased by 1.6% to 84.5 million kg in the first half of 2021, down from 85.9 million kg in 2020[8] - The sales volume of chicken breeds dropped significantly by 37.3% to 13.3 million birds in the first half of 2021, compared to 21.1 million in 2020[9] Revenue Breakdown - Revenue from processed chicken meat products grew by 27.3% to RMB1,046.8 million for the six months ended June 30, 2021, representing 53.2% of total revenue[18] - Revenue from raw chicken meat products decreased by 15.8% to RMB811.0 million, representing 41.2% of total revenue[20] - Sales volume of chicken breeds dropped by 29.1% to 13.3 million birds, with revenue falling to RMB42.8 million[21] - Revenue from other products grew by 21.1% to RMB68.9 million, representing 3.5% of total revenue[22] - Revenue from the new retail business reached RMB463.1 million, reflecting a period-on-period growth of 24.1% and accounting for 23.5% of total revenue[28] Strategic Initiatives - The company is focusing on improving operational efficiency and expanding its market presence in response to the financial challenges faced in 2021[6] - Future outlook includes potential investments in new technologies and product development to enhance competitiveness in the market[6] - The strategic "123" development strategy focuses on expanding downstream channels and building a leading chicken meat products brand[50] - The company aims to achieve a self-rearing scale of 180 million to 200 million birds to improve breeding quality and meet client needs[48] Market and Product Development - iShape series cumulative sales reached 100 million packs of chicken breast products[10] - iShape debuted as a chief partner at the Taobao Festival of Creation[10] - The iShape series products achieved sales revenue of RMB238.0 million, with a remarkable growth of 195.0%, surpassing its full year sales revenue in 2020[29] - The company is expanding its product range from high-end chicken breast products to "low burden" meat products, focusing on health needs[59] - iShape is targeting the younger generation's consumption needs, emphasizing health, brand recognition, and lifestyle changes as core growth drivers[65] Operational Efficiency - The production efficiency of the processed food improved by 13%, and the output increased by 28% compared to the same period last year[81] - During the Reporting Period, warehousing demand grew by 10.0%, transportation volume grew by 13.5%, and customer sales volume grew by 49.5%[75] - The average price per unit of new retail online delivery master contracts decreased by 56.3% compared to the same period in 2020[75] Corporate Governance - The Company has established a comprehensive corporate governance structure in compliance with the Listing Rules[134] - During the six months ended June 30, 2021, the Company complied with all applicable code provisions of the Corporate Governance Code[135] - The Board of Directors has delegated oversight of risk management and internal control systems to the Audit Committee[138] Shareholder Information - As of June 30, 2021, Ms. Zhang Xiuying holds 992,854,500 Domestic Shares, representing approximately 95.01% of the relevant class of shares and 70.92% of the total share capital of the company[118] - Mr. Liu Zhiming has an interest in 52,145,500 Domestic Shares, accounting for 4.99% of the relevant class and 3.72% of the total share capital[118] - The total number of Domestic Shares issued is 1,045,000,000, and H Shares issued is 355,000,000[119] Future Outlook - The company plans to expand the production capacity of iShape to an output value of RMB1 billion in the second half of the year[82] - The company aims to ensure consistency in financial reporting across different markets by adopting CASBE for its financial statements[190] - The long-term growth strategy includes launching employee stock ownership plans and focusing on core business areas such as white-feathered chicken meat products[115]