Financial Performance - Operating revenue for the period was CNY 393,450,129.94, a decline of 1.45% year-on-year[10]. - Net profit attributable to shareholders of the listed company was a loss of CNY 29,446,589.75, compared to a loss of CNY 4,739,962.37 in the same period last year[10]. - Basic and diluted earnings per share were both -CNY 0.05, compared to -CNY 0.01 in the same period last year[10]. - The company reported a net loss of approximately ¥28.96 million for the current period, compared to a net loss of ¥6.16 million in the previous period, indicating a significant decline in profitability[41]. - Total revenue for the first quarter of 2019 was ¥291.45 million, down from ¥303.67 million in the same quarter of 2018, reflecting a decrease of about 4.0% year-over-year[44]. - Operating profit for the current quarter was a loss of ¥24.03 million, compared to a loss of ¥0.53 million in the previous year, showing a substantial increase in operating losses[44]. - The company incurred total expenses of ¥302.22 million in the current quarter, which is an increase from ¥294.38 million in the same quarter of the previous year[44]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,532,132,553.40, a decrease of 3.89% compared to the end of the previous year[10]. - Total liabilities decreased to ¥399,416,970.08 from ¥432,412,477.89[28]. - Non-current assets totaled ¥705,921,957.67, a slight decrease from ¥710,359,680.01[26]. - Total assets amounted to ¥1,532,132,553.40, down from ¥1,594,092,059.49[26]. - Total liabilities reached approximately $432.41 million, with current liabilities at $325.59 million and non-current liabilities at $106.83 million[60]. - Total liabilities decreased to CNY 260,670,381.15, down 11.5% from CNY 294,567,884.67 at the end of 2018[34]. Shareholder Information - The total number of shareholders at the end of the reporting period was 39,940[13]. - The largest shareholder, Hunan Grain and Oil Food Import and Export Group, held 30.95% of the shares[13]. - Hunan High-tech Venture Capital Wealth Management Co., Ltd. held 15.96% of the shares, with its shares frozen[13]. - As of August 20, 2018, High-tech Wealth held 104,166,666 unrestricted circulating shares, accounting for 15.96% of the total shares of the company[16]. Cash Flow - Net cash flow from operating activities was negative CNY 107,639,918.62, a decrease of 584.23% compared to the previous year[10]. - Cash flow from operating activities was ¥438.26 million, an increase from ¥423.10 million in the same quarter of 2018, suggesting improved cash generation from operations[46]. - The total cash inflow from operating activities was 274,004,954.51 RMB, down from 287,476,416.47 RMB, indicating a decrease in cash receipts from sales and services[52]. - Total cash outflow from operating activities amounted to 551,100,352.30 RMB, up from 406,397,711.26 RMB year-over-year, reflecting increased operational costs[50]. Other Financial Metrics - The weighted average return on net assets was -2.71%, a decrease of 2.32 percentage points from the previous year[10]. - Financial expenses rose by 77.92% to ¥852,539.06, mainly due to a decrease in interest income[19]. - Research and development expenses were ¥461.36 million, slightly down from ¥506.08 million in the previous year, indicating a focus on cost management in R&D[44]. - The company reported a significant increase in other income, which decreased by 52.63% to ¥353,087.95 compared to the previous year[19].

Financial Performance - In 2018, the company's operating revenue reached CNY 2,041,039,866.32, an increase of 18.41% compared to CNY 1,723,720,756.85 in 2017[25] - The net profit attributable to shareholders of the listed company was a loss of CNY 35,838,303.86, a decrease of 179.80% from a profit of CNY 44,911,986.59 in 2017[25] - The net cash flow from operating activities was a negative CNY 51,163,217.45, a decline of 134.30% compared to CNY 149,142,991.49 in 2017[25] - The total assets at the end of 2018 were CNY 1,594,092,059.49, down 10.33% from CNY 1,777,786,368.97 at the end of 2017[25] - The net assets attributable to shareholders of the listed company decreased by 8.40% to CNY 1,102,301,958.11 from CNY 1,203,407,820.37 in 2017[25] - The basic earnings per share for 2018 was a loss of CNY 0.07, a decrease of 171.43% from CNY 0.07 in 2017[25] - The weighted average return on net assets was 3.70%, a decrease of 6.84 percentage points from 16.97% in 2016[25] - The company reported a total operating income of CNY 2,041,039,866.32, an increase of 18.41% compared to the previous year, while operating costs rose by 26.17% to CNY 1,971,840,131.37[65] - The company’s cash flow from operating activities showed a net outflow of CNY 51,163,217.45, a decline of 134.30% compared to the previous year[65] Operational Highlights - The company operates in the livestock industry, focusing on pig farming, meat sales, and feed processing, with a comprehensive supply chain from feed production to meat processing[32] - The company has established 13 self-owned and 17 leased pig farming bases, utilizing both self-raising and contracted farming models[33] - The slaughtering capacity is managed by a subsidiary, which can process 700,000 pigs annually and has a cold storage capacity of 40,000 tons[34] - The company operates a complete industrial chain from upstream raw material procurement, feed production, breeding, to downstream slaughtering, processing, and sales, demonstrating strong integration and risk resistance capabilities[42] - The company has established a cooperative production model with farmers, ensuring stable income for farmers while sharing risks[130] - The company’s fresh meat sales are conducted through various channels, including supermarkets and community stores[129] Market and Industry Context - In 2018, the total pork production in China was 54.04 million tons, with a year-end pig stock of 428.17 million heads and a total of 693.82 million pigs slaughtered[41] - The pig farming industry in China is characterized by low concentration and significant room for scale development, with pork consumption accounting for over 60% of total meat consumption[41] - The company is a key player in the live pig export market, primarily supplying Hong Kong and Macau, and is recognized as a national key leading enterprise in agricultural industrialization[41] - The company anticipates that brand recognition will become a key competitive advantage in the pork market, as consumer preferences shift towards high-quality, branded products[164] - The competitive landscape remains fragmented, with small-scale farmers still supplying nearly 60% of the market, highlighting opportunities for growth in large-scale operations[159] Risk Management and Compliance - The company has detailed potential risks in the report, advising investors to be cautious[8] - The company has implemented a comprehensive biosecurity management system to prevent cross-infection and ensure the health of its pig stock[44] - The company actively engaged in epidemic prevention measures against African swine fever, establishing a leadership group and implementing comprehensive biosecurity protocols[50] - The company has a well-established internal control system to mitigate operational risks, ensuring compliance with relevant laws and regulations[96] - The company has committed to avoiding or reducing related party transactions with its subsidiary, ensuring fairness and compliance[186] Strategic Initiatives - The company aims to enhance its standardized scale farming practices moving forward[36] - The company aims to achieve a pig output of over 1 million heads in 2019, laying a solid foundation for sustainable growth[55] - The company is exploring a modular pig farming model in rural areas to support poverty alleviation efforts in Hunan Province[58] - The company has invested significantly in environmental protection and green development, aligning with new national regulations[94] - The company will enhance its environmental management and increase investments in environmental protection measures to comply with stricter regulations[173] Financial Management - The company has renewed its wastewater discharge permit, which was set to expire during the reporting period[104] - The company has reported no significant changes in user data, indicating stable customer engagement during the reporting period[106] - The company has revised its cash dividend policy to ensure clarity and protect the rights of minority shareholders, with a cash dividend of 1.00 yuan per 10 shares for 2017[178] - The total cash dividend distributed for 2017 amounted to 65,267,558.40 yuan, based on a total share capital of 652,675,584 shares[179] - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[182] Future Outlook - The company aims to become the largest and most distinctive pork industry listed company in Hunan, focusing on commodity pig breeding and sales, with a strategic emphasis on a full industry chain approach[165] - In 2019, the company plans to prioritize high-quality development, enhance the entire industry chain, and address African swine fever as a primary task[168] - The company is well-positioned to leverage policy support and market trends to enhance its operational capabilities and market presence[156]

Financial Performance - Net profit attributable to shareholders was CNY -43,453,727.31, a decline of 182.61% year-on-year[9] - Operating revenue for the first nine months was CNY 1,215,448,459.32, down 6.28% from the same period last year[9] - Basic earnings per share fell by 187.50% to CNY -0.07[9] - The company expects a net loss attributable to shareholders of CNY -45 million to -67.5 million for the year 2018, indicating a significant decline in performance compared to the previous year[18] - The decline in performance is primarily attributed to a drop in pig prices and the impact of the African swine fever outbreak in the fourth quarter[18] - Net profit for the first nine months of 2018 was approximately ¥1.22 billion, a decrease of 6.3% compared to ¥1.30 billion in the same period of 2017[29] - The net profit for Q3 2018 was approximately ¥12.71 million, compared to ¥6.69 million in Q3 2017, representing an increase of 90.29%[36] Assets and Liabilities - Total assets decreased by 8.35% to CNY 1,629,306,503.20 compared to the end of the previous year[9] - The total assets decreased from CNY 1,777,786,368.97 to CNY 1,629,306,503.20, reflecting a reduction in overall financial position[22] - The company's total liabilities decreased from CNY 508,150,873.70 to CNY 472,919,882.55, indicating improved debt management[23] - The company's equity attributable to shareholders decreased from CNY 1,203,407,820.37 to CNY 1,094,686,534.66, reflecting the impact of net losses on retained earnings[23] - Total assets decreased to approximately ¥1.47 billion from ¥1.58 billion, a decline of 6.9% year-over-year[27] - Total liabilities decreased slightly to approximately ¥278.81 million from ¥281.90 million, a decrease of 1.1%[27] - Shareholders' equity decreased to approximately ¥1.19 billion from ¥1.29 billion, reflecting a decline of 8.2% year-over-year[27] Cash Flow - The company reported a net cash flow from operating activities of CNY -66,709,350.21, a decrease of 140.42% year-on-year[9] - Operating cash flow for the period from January to September was negative at -66,709,350.21 RMB, compared to a positive cash flow of 165,048,108.46 RMB in the same period last year, indicating a significant decline[38] - Total cash inflow from operating activities was 1,415,456,073.09 RMB, slightly down from 1,432,587,595.31 RMB year-on-year[38] - Cash outflow from operating activities increased to 1,482,165,423.30 RMB, compared to 1,267,539,486.85 RMB in the previous year, reflecting a rise of approximately 16.9%[38] - Cash and cash equivalents decreased by 47.30% from CNY 545,976,091.97 to CNY 287,744,130.29 due to repayment of bank loans[16] - Cash inflow from investment activities totaled 289,674,084.56 RMB, significantly higher than 109,383,894.01 RMB in the previous year, marking an increase of approximately 164.5%[39] - Cash outflow from investment activities decreased to 40,826,923.59 RMB from 425,086,498.19 RMB year-on-year, indicating a reduction of about 90.4%[39] - The company experienced a net increase in cash and cash equivalents of 15,168,038.32 RMB, contrasting with a net decrease of -307,250,744.23 RMB in the same period last year[39] Shareholder Information - The number of shareholders reached 59,427 as of the report date[12] - The largest shareholder, Hunan Grain and Oil Food Import and Export Group Co., Ltd., holds 30.95% of shares[12] - Hunan High-tech Venture Capital Wealth Management Co., Ltd. has 15.96% of shares, with 81,360,000 shares under judicial freeze[14] Operating Costs and Revenue - Total operating revenue for Q3 2018 was approximately ¥468.78 million, an increase of 8.0% compared to ¥432.88 million in Q3 2017[29] - Total operating costs for Q3 2018 were approximately ¥463.11 million, up from ¥428.16 million in Q3 2017, reflecting a year-over-year increase of 8.2%[30] - The company's operating revenue for Q3 2018 was approximately ¥291.73 million, an increase of 13.39% compared to ¥257.32 million in Q3 2017[35] - The total operating profit for Q3 2018 was approximately ¥14.98 million, compared to ¥7.38 million in Q3 2017, representing an increase of 102.16%[35] Other Income and Expenses - Non-operating income from government subsidies amounted to CNY 8,212,875.80 for the year-to-date[9] - The company reported a significant increase in other income, totaling approximately ¥13.04 million for the first nine months of 2018, compared to ¥11.03 million in the same period of 2017[30] - The company experienced a significant increase in other income, totaling approximately ¥1.82 million in Q3 2018, compared to ¥2.18 million in Q3 2017[35] - Research and development expenses for the first nine months of 2018 were approximately ¥1.47 million, a decrease of 4.0% compared to ¥1.53 million in the same period of 2017[30] - Research and development expenses for Q3 2018 were approximately ¥446.48 million, compared to ¥304.75 million in Q3 2017, reflecting an increase of 46.49%[35] - The company reported a decrease in financial expenses, with a net financial income of approximately ¥1.16 million in Q3 2018, compared to a net expense of ¥3.03 million in Q3 2017[35]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥746,671,789.34, a decrease of 13.58% compared to ¥863,974,868.42 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was -¥56,093,708.77, representing a decline of 236.37% from a profit of ¥41,133,212.92 in the previous year[21]. - The net cash flow from operating activities was -¥62,192,190.90, down 141.28% from ¥150,645,369.27 in the same period last year[21]. - The total assets decreased by 10.93% to ¥1,583,412,748.47 from ¥1,777,786,368.97 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 10.08% to ¥1,082,046,553.20 from ¥1,203,407,820.37 at the end of the previous year[21]. - The basic earnings per share for the first half of 2018 was -¥0.09, a decrease of 250.00% compared to ¥0.06 in the same period last year[22]. - The company reported a 27.45% decrease in export sales revenue to RMB 72.65 million, with a total export of 45,800 pigs, down 11.41% year-on-year[41]. - Domestic sales revenue reached RMB 364.5 million, a decrease of 5.71% compared to the previous year, primarily due to continued low pig prices[42]. - The company’s livestock revenue accounted for 58.57% of total main business income, decreasing by 10.18% year-on-year due to low pig prices[45]. - The company expects a net profit attributable to shareholders to be between -35 million to -52.5 million yuan for the period from January 1, 2018, to September 30, 2018, indicating a significant decline compared to the previous year[59]. Operational Challenges - In the first half of 2018, the company faced significant challenges due to a continuous decline in pig prices, which reached an eight-year low, impacting overall performance[35]. - The primary reason for the expected decline in performance is the drop in pig prices during the first half of 2018, despite a slight recovery in the third quarter[59]. - The company faces a risk of pig diseases, with an average mortality rate of around 10% during large-scale farming, necessitating enhanced monitoring and prevention measures[60]. - Feed costs, primarily from corn and soybean meal, constitute the largest portion of the company's breeding costs, making them vulnerable to price fluctuations[62]. - Environmental policy changes pose a risk, as increased compliance costs may affect the company's operating performance[62]. Strategic Initiatives - The company has been actively promoting key projects in pig slaughtering, cold chain logistics, and pig trading to enhance its market position[24]. - The company signed a framework agreement in March 2018 with the government of Mayang Miao Autonomous County to develop a pig farming project with an annual output of 300,000 pigs, aiming to enhance both corporate and social benefits[35]. - The company aims to expand its breeding scale and improve internal management to mitigate the impact of industry cycles on its operations[35]. - The company is committed to modernizing pig farming in Hunan Province, with plans to enhance standardized large-scale farming practices by 2020[29]. - The company plans to mitigate the impact of fluctuating pig prices by diversifying sales channels and enhancing internal and external trade integration[61]. Product and Market Development - The company operates in the livestock industry, focusing on pig farming, meat sales, and feed processing, with a comprehensive supply chain established for these products[24]. - The company has established a rich product structure including pigs, meat, and feed, optimizing product allocation in both mainland and Hong Kong-Macau markets[24]. - The company operates 13 large-scale breeding bases and collaborates with over 800 small farms under a "company + appropriate scale small farm" model, providing services such as piglets, feed, vaccines, and technical guidance[32]. - The slaughtering capacity of the company's subsidiary, Guanglian, is 700,000 pigs per year, with a cold storage capacity of 40,000 tons, processing pigs into fresh meat, carcasses, or frozen products for sale[27]. - The company has developed a comprehensive quality assurance system, including a traceability system and GAP certification, ensuring the safety and quality of its meat products[33]. Financial Management - The company achieved a cost reduction and efficiency increase of over RMB 17 million in the first half of 2018 through various management measures[38]. - Operating costs decreased by 2.03% to ¥752,485,980.09 from ¥768,100,456.74[47]. - Research and development expenses increased by 17.11% to ¥1,226,777.67 from ¥1,047,581.71[47]. - The company's cash and cash equivalents decreased by 36.14% to ¥348,679,755.32 from ¥545,976,091.97[49]. - The company has a total investment of 5,000.00 million in various projects, indicating a focus on expanding its investment portfolio[57]. Environmental Compliance - The company is committed to balancing production development with environmental protection, enhancing its environmental management systems and increasing investment in environmental facilities[62]. - The wastewater treatment facility at the company's Huizhou branch has a processing capacity of 500 tons per day, ensuring compliance with local environmental standards[84]. - The company has implemented a 24-hour online monitoring system for pollutants including total phosphorus and nitrogen, enhancing its environmental compliance[86]. - The company has obtained pollution discharge permits for its operations, ensuring adherence to environmental regulations[87]. - The company has established emergency response plans for environmental incidents, which have been filed with local environmental protection authorities[88]. Shareholder Information - The total number of ordinary shareholders reached 61,715 by the end of the reporting period[95]. - The largest shareholder, Hunan Grain and Oil Food Import and Export Group Co., Ltd., holds 202,018,546 shares, accounting for 30.95% of total shares[96]. - Hunan High-tech Venture Capital Management Co., Ltd. holds 104,166,666 shares, representing 15.96% of total shares, with all shares subject to judicial freeze[98]. - A total of 183,955,332 shares were under lock-up due to non-public issuance, set to be released on May 7, 2018[94]. - The company did not report any strategic investors or general corporations becoming top ten shareholders due to new share placements[98]. Corporate Governance - The company did not report any changes in the controlling shareholder or actual controller during the period[99]. - There were no stock option grants or changes in the board of directors, supervisors, or senior management during the reporting period[102]. - The company has committed to align voting results with Xinwufeng during the decision-making process at Guanglian Company[68]. - The actual controller and related parties have committed to avoid or reduce related transactions with Xinwufeng and its controlling enterprises[67]. - Modern Agricultural Group has committed to maintain complete separation and independent operation from Xinwufeng in terms of assets, personnel, finance, and business[68].

[Important Notice](index=3&type=section&id=Important%20Notice) [Report Authenticity Guarantee](index=3&type=section&id=Report%20Authenticity%20Guarantee) The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities, explicitly stating that this quarterly report has not been audited - The company's board of directors, supervisory board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's Q1 2018 report has not been audited[6](index=6&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) [Key Financial Data](index=3&type=section&id=Key%20Financial%20Data) In Q1 2018, the company's performance significantly declined, with operating revenue decreasing by 7.67% year-over-year, net profit attributable to shareholders turning from profit to a loss of **4.74 million Yuan**, a 114.20% decrease, and net cash flow from operating activities also significantly reduced by 68.17% Q1 2018 Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 399,228,465.29 | 432,414,433.61 | -7.67% | | Net Profit Attributable to Shareholders (Yuan) | -4,739,962.37 | 33,384,920.20 | -114.20% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (Yuan) | -4,715,354.14 | 33,266,977.33 | -114.17% | | Net Cash Flow from Operating Activities (Yuan) | 22,229,066.49 | 69,841,633.90 | -68.17% | | Basic Earnings Per Share (Yuan/Share) | -0.01 | 0.05 | -120.00% | | Weighted Average Return on Net Assets (%) | -0.39% | 2.69% | Decrease of 3.08 percentage points | Balance Sheet End-of-Period Data | Indicator | End of Current Period | End of Prior Year | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets (Yuan) | 1,739,464,136.41 | 1,777,786,368.97 | -2.16% | | Net Assets Attributable to Shareholders (Yuan) | 1,198,667,858.00 | 1,203,407,820.37 | -0.39% | - During the reporting period, the company's total non-recurring gains and losses amounted to **-24,608.23 Yuan**, primarily comprising government subsidies and non-operating income/expenses[8](index=8&type=chunk)[9](index=9&type=chunk) [Shareholder Ownership](index=4&type=section&id=Shareholder%20Ownership) As of the end of the reporting period, the company had **63,944 shareholders**, with Hunan Provincial Cereals, Oils and Foodstuffs Import and Export Group Co., Ltd. as the largest shareholder holding **30.95%**, and the second largest shareholder, Hunan Gaoxin Venture Capital Wealth Management Co., Ltd., having all its shares (**15.96%** of total share capital) pledged and judicially frozen - As of the end of the reporting period, the company had **63,944 shareholders**[11](index=11&type=chunk) Top Three Shareholders' Ownership | Shareholder Name | Number of Shares Held | Percentage of Total Share Capital (%) | | :--- | :--- | :--- | | Hunan Provincial Cereals, Oils and Foodstuffs Import and Export Group Co., Ltd. | 202,018,546 | 30.95% | | Hunan Gaoxin Venture Capital Wealth Management Co., Ltd. | 104,166,666 | 15.96% | | Hunan Provincial Modern Agricultural Industry Holding Group Co., Ltd. | 10,416,666 | 1.60% | - The second largest shareholder, Gaoxin Wealth, had **104,166,666 shares** (**15.96%** of total share capital) fully pledged and judicially frozen[13](index=13&type=chunk) [Significant Matters](index=5&type=section&id=Significant%20Matters) [Explanation of Significant Changes in Financial Statement Items](index=5&type=section&id=Explanation%20of%20Significant%20Changes%20in%20Financial%20Statement%20Items) During the reporting period, several financial statement items experienced significant changes, with finance expenses decreasing by **82.51%** due to reduced interest expenses and increased interest income, while non-operating income and expenses surged by **263.74%** and **185.49%** respectively, driven by higher insurance claims and increased extraordinary losses and fines Changes and Reasons for Major Financial Statement Items | Item | Change (%) | Reason for Change | | :--- | :--- | :--- | | Prepayments | -34.26% | Due to goods received in the current period offsetting prepayments for purchases from the prior period | | Interest Receivable | 60.37% | Due to accrued interest on time deposits in the current period | | Other Receivables | 66.37% | Due to an increase in other current accounts in the current period | | Finance Expenses | -82.51% | Decrease in interest expenses and increase in interest income | | Non-Operating Income | 263.74% | Increase in insurance claims received | | Non-Operating Expenses | 185.49% | Increase in extraordinary losses and fines | [Progress of Significant Matters](index=6&type=section&id=Progress%20of%20Significant%20Matters) The company terminated its major asset restructuring plan to acquire Hunan Tianxin Seed Industry Co., Ltd. through share issuance and cash payment, primarily due to cyclical fluctuations in the hog industry impacting the target company's performance; additionally, the company disclosed and resolved a non-operating fund occupation issue with related party Hunan Yuansheng Biotechnology Co., Ltd., with the relevant funds settled in March 2018 - The company decided to terminate the related-party transaction involving the issuance of shares and cash payment to acquire Hunan Tianxin Seed Industry Co., Ltd., primarily due to cyclical fluctuations in the hog industry impacting the target's performance[15](index=15&type=chunk) - The company had a non-operating fund occupation by a related party, with an ending balance of **71,927.43 Yuan**, primarily for payment of salaries and social security on behalf of others, which was settled in March 2018 by offsetting against payable custody fees[16](index=16&type=chunk)[17](index=17&type=chunk) [Performance Forecast and Warning](index=7&type=section&id=Performance%20Forecast%20and%20Warning) The company issued a performance warning, forecasting a loss for the first half of 2018 (January 1 to June 30), with net profit attributable to shareholders expected to range from **-35 million Yuan** to **-52.5 million Yuan**, primarily due to declining hog prices during the period - The company forecasts a cumulative net loss for January 1 to June 30, 2018, with net profit attributable to shareholders estimated between **-35 million Yuan** and **-52.5 million Yuan**[19](index=19&type=chunk) - The primary reason for the projected performance decline is the decrease in hog prices during the first half of 2018[19](index=19&type=chunk) [Appendix](index=8&type=section&id=Appendix) [Financial Statements](index=8&type=section&id=Financial%20Statements) This appendix contains the company's unaudited Q1 2018 consolidated and parent company balance sheets, income statements, and cash flow statements, serving as the source for all financial data in the report [Consolidated Balance Sheet](index=8&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2018, the company's consolidated total assets were **1.739 billion Yuan**, total liabilities were **476 million Yuan**, and total equity attributable to parent company owners was **1.199 billion Yuan** Consolidated Balance Sheet Key Items (March 31, 2018) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 1,739,464,136.41 | | Total Liabilities | 475,988,839.58 | | Total Equity Attributable to Parent Company Owners | 1,198,667,858.00 | | Total Liabilities and Owners' Equity | 1,739,464,136.41 | [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) In Q1 2018, the company achieved total operating revenue of **399 million Yuan** and total operating costs of **405 million Yuan**, resulting in an operating loss of **4.75 million Yuan** and a net loss attributable to parent company shareholders of **-4.74 million Yuan** Consolidated Income Statement Key Items (Jan-Mar 2018) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 399,228,465.29 | | II. Total Operating Costs | 404,790,843.72 | | III. Operating Profit | -4,751,434.57 | | IV. Total Profit | -5,842,684.99 | | Net Profit Attributable to Parent Company Shareholders | -4,739,962.37 | | Basic Earnings Per Share (Yuan/Share) | -0.01 | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) In Q1 2018, the company's net cash flow from operating activities was **22.23 million Yuan**, net cash flow from investing activities was **-1.05 million Yuan**, net cash flow from financing activities was **-10.97 million Yuan**, and the ending balance of cash and cash equivalents was **283 million Yuan** Consolidated Cash Flow Statement Key Items (Jan-Mar 2018) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 22,229,066.49 | | Net Cash Flow from Investing Activities | -1,050,158.40 | | Net Cash Flow from Financing Activities | -10,973,098.14 | | Net Increase in Cash and Cash Equivalents | 10,205,809.95 | | Ending Balance of Cash and Cash Equivalents | 282,781,901.92 | [Audit Report](index=18&type=section&id=Audit%20Report) The financial statements in this quarterly report are unaudited - The financial statements for this reporting period are unaudited[40](index=40&type=chunk)

Financial Performance - The company's operating revenue for 2017 was CNY 1,723,720,756, representing a year-on-year increase of 1.91% compared to CNY 1,691,374,321 in 2016[24]. - The net profit attributable to shareholders of the listed company for 2017 was CNY 44,911,986.5, a decrease of 77.16% from CNY 196,621,129.71 in 2016[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 33,523,868.1, down 82.17% from CNY 188,013,789.17 in the previous year[24]. - Basic earnings per share decreased by 76.67% to CNY 0.07 in 2017 compared to CNY 0.30 in 2016[26]. - Weighted average return on equity fell by 13.27 percentage points to 3.70% in 2017 from 16.97% in 2016[26]. - Total profit amounted to CNY 43.63 million, a decline of 74.75% compared to the previous year[49]. - Net profit attributable to the parent company was CNY 44.91 million, down 77.16% year-on-year[49]. - The company reported a total revenue of 3,075 million for the year, with a decrease of 224.85 million compared to the previous year[109]. Cash Flow and Dividends - The net cash flow from operating activities was CNY 143,118,691.49, an increase of 3.99% compared to CNY 137,631,260.63 in 2016[24]. - The company plans to distribute a cash dividend of CNY 1.00 per 10 shares, totaling CNY 65,267,558.40, based on the total share capital of 652,675,584 shares[7]. - In 2017, the cash dividend payout ratio was 145.32% of the net profit attributable to shareholders, with a total cash dividend of 65,267,558.40 RMB[124]. - The cash dividend for 2016 was 1.00 RMB per 10 shares, consistent with the previous year, indicating stable dividend policy[124]. - The company did not propose a cash profit distribution plan for the reporting period despite having positive distributable profits[125]. Operational Overview - The company operates a full industry chain in pig farming, including feed production, breeding, and meat processing[34]. - The company has established 13 large-scale breeding bases for pig farming[35]. - The slaughtering capacity is 700,000 pigs per year, with a cold storage capacity of 40,000 tons[36]. - The company primarily sells pigs through designated agents in Hong Kong and Macau, as well as through online platforms for domestic sales[37]. - The company has established a complete industrial chain from upstream raw material procurement to downstream sales, enhancing its risk resistance and regional competitiveness[41]. Market and Industry Context - The pig farming industry in China remains fragmented with low production concentration and a lack of pricing power among leading enterprises[37]. - In 2017, pork consumption accounted for over 60% of total meat consumption in China, with pork production reaching 53.4 million tons, a growth of 0.8%[38]. - The company aims to increase the proportion of large-scale pig farming (over 500 pigs per year) from 41.8% in 2014 to 52% by 2020[38]. - The company is a key player in the agricultural industry, being a major live pig exporter to Hong Kong and Macau[40]. Risk Management and Compliance - The company has identified potential risks in its operations, which are detailed in the report[10]. - The company emphasizes that forward-looking statements in the report are subject to uncertainties and do not constitute a commitment to investors[8]. - The company has committed to maintaining independence in operations and financial matters from its controlling shareholder, ensuring compliance with regulatory requirements[127]. - The company has committed to avoiding or reducing related party transactions with its controlling shareholder and its subsidiaries[126]. Environmental and Social Responsibility - The company has a focus on environmental protection, aligning with stricter regulations and investing in green development[71]. - The company has committed to environmental protection, with wastewater discharge from its subsidiaries meeting national standards, including COD levels of 55 mg/L and BOD levels of 25 mg/L[157][158]. - The company has successfully completed its poverty alleviation tasks in Tangjiaba Village, achieving stable poverty alleviation for the population by the end of 2017[153]. - The company has received an "excellent" rating for its three-year poverty alleviation efforts from the provincial assessment team[154]. Strategic Initiatives - The company plans to expand its breeding scale through a light-asset model, with an expected increase of 27,300 sows from leasing agreements[46]. - The company is enhancing its information technology management to improve efficiency and reduce operational costs[49]. - The company is actively pursuing vertical integration through self-built capacities and strategic partnerships to mitigate market volatility risks[114]. - The company plans to implement a comprehensive strategy combining upstream and downstream operations, emphasizing cold chain logistics and meat processing[116]. Shareholder Structure and Governance - The total number of ordinary shareholders increased to 62,502 by the end of the reporting period, up from 60,685 at the end of the previous month, representing a growth of approximately 2.68%[166]. - The top shareholder, Hunan Grain and Oil Import and Export Group Co., Ltd., holds 202,018,546 shares, accounting for 30.9% of the total shares, with a decrease of 5,000,000 shares during the reporting period[168]. - The company has a total of 149,935,212 unrestricted circulating shares held by Hunan Grain and Oil Import and Export Group Co., Ltd.[169]. - The company has not reported any significant changes in accounting policies that would materially affect its financial results for the reporting period[135]. Management and Employee Overview - The company has a diverse management team with extensive experience in various sectors, including food import and export, logistics, and international trade[186]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 425.24 million CNY[186]. - The company has implemented a tiered compensation policy for employees, with different structures for general staff, middle management, and senior management[195]. - The company has a total of 1,381 employees, with 899 in the parent company and 482 in major subsidiaries[194].

Financial Performance - Net profit attributable to shareholders decreased by 74.42% to CNY 52,599,766.67 for the period from January to September[9] - Basic earnings per share decreased by 74.19% to CNY 0.08[9] - The company expects a net profit of ¥40 million to ¥60 million for the year 2017, indicating a decline compared to the previous year due to falling pig prices[17] - The company reported a net profit of CNY 1,023,114.65 for the third quarter, compared to a loss of CNY 288,126.27 in the same quarter last year, indicating a turnaround in profitability[31] - The company's total profit for the first nine months of 2017 reached ¥53,031,933.47, a decline of 73.9% compared to ¥204,273,963.47 in the same period last year[37] - Net profit for Q3 2017 was ¥6,686,050.11, down 89.1% from ¥61,401,503.96 in Q3 2016[38] Revenue and Income - Operating income increased by 10.03% to CNY 1,296,857,097.30 for the period from January to September[9] - Total revenue for the first nine months of 2017 reached CNY 1,296,857,097.30, an increase from CNY 1,178,679,481.24 in the same period last year, representing a growth of approximately 10.0%[31] - Total operating revenue for Q3 2017 was ¥257,323,154.70, a decrease of 5.9% compared to ¥271,971,961.06 in Q3 2016[37] - The cash inflow from sales of goods and services reached ¥1,406,527,717.02, an increase of 6.5% compared to ¥1,320,959,758.08 in the same period last year[41] Assets and Liabilities - Total assets decreased by 7.77% to CNY 1,766,010,392.42 compared to the end of the previous year[9] - The total assets decreased from ¥1,914,835,202.05 to ¥1,766,010,392.42, reflecting a decline in current assets[21] - The company's total assets as of September 30, 2017, amounted to CNY 1,540,216,205.93, a decrease from CNY 1,573,505,092.03 at the beginning of the year, reflecting a decline of approximately 2.1%[27] - The total liabilities decreased to CNY 238,508,092.16 from CNY 259,575,294.04, showing a reduction of about 8.1%[27] - The total equity attributable to shareholders was CNY 1,301,708,113.77, slightly down from CNY 1,313,929,797.99 at the start of the year, a decrease of approximately 0.9%[27] Cash Flow - Net cash flow from operating activities increased by 73.36% to CNY 165,048,108.46 for the period from January to September[9] - The net cash flow from operating activities amounted to ¥165,048,108.46, significantly up from ¥95,208,096.80 year-on-year, reflecting a growth of 73.3%[41] - The cash inflow from operating activities totaled ¥938,599,986.90, up from ¥781,607,996.78, marking a year-on-year increase of 20.1%[45] - The cash flow from financing activities resulted in a net outflow of -¥65,267,558.40, worsening from -¥16,316,889.60 in the previous year, indicating increased financial strain[46] Operating Costs - Operating costs for the same period were CNY 1,256,501,593.76, up from CNY 1,000,347,816.85, indicating a year-over-year increase of about 25.6%[31] - Operating costs for Q3 2017 were ¥242,345,729.48, an increase of 21.1% from ¥199,984,039.08 in Q3 2016[37] Shareholder Information - The total number of shareholders at the end of the reporting period was 66,651[11] - The largest shareholder, Hunan Grain and Oil Food Import and Export Group, holds 30.95% of the shares[11] Non-Operating Income and Expenses - Non-operating income from government subsidies amounted to CNY 6,059,847.85 for the period from January to September[12] - The company reported a net loss from non-operating asset disposal of CNY 1,168,924.19 for the period from January to September[12] - The company recorded a total of ¥1,203,724.28 in non-operating expenses for Q3 2017, compared to ¥61,509.32 in Q3 2016[37] Investment Activities - The total cash outflow from investment activities was ¥425,086,498.19, compared to ¥25,794,610.86 in the previous year, indicating a substantial increase in investment expenditures[42] - The net cash flow from investment activities was -¥315,702,604.18, a decline from ¥160,857,680.58 in the same period last year, showing a negative shift in investment returns[42]

Financial Performance - The company's operating revenue for the first half of 2017 was approximately RMB 864 million, representing a 7.56% increase compared to RMB 803 million in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 71.16% to approximately RMB 41 million from RMB 143 million year-on-year[20]. - The basic earnings per share dropped by 72.73% to RMB 0.06 from RMB 0.22 in the previous year[21]. - The weighted average return on net assets decreased by 9.19 percentage points to 3.31% compared to 12.50% in the same period last year[21]. - The net cash flow from operating activities increased by 15.45% to approximately RMB 151 million from RMB 130 million year-on-year[20]. - The total assets of the company decreased by 4.01% to approximately RMB 1.838 billion from RMB 1.915 billion at the end of the previous year[20]. - Operating revenue for the current period reached ¥863,974,868.42, an increase of 7.56% compared to the previous period's ¥803,266,183.45[49]. - Operating costs increased by 23.21% to ¥768,100,456.74 from ¥623,411,438.65 in the previous period[49]. - Net cash flow from operating activities improved by 15.45% to ¥150,645,369.27, up from ¥130,485,378.16[49]. - The company reported a net loss of ¥89.10 for its subsidiary Shenzhen Chenfeng Food Co., Ltd., with total assets of ¥1,623.34[55]. - The company expects net profit attributable to shareholders for the period from January 1, 2017, to September 30, 2017, to be between 32 million and 48 million yuan, indicating a potential decline in performance compared to the previous year[58]. - The main reason for the expected decline in performance is the drop in pig prices during the first nine months of 2017[58]. Operational Highlights - The company is engaged in the pig farming industry, focusing on the entire industrial chain from feed production to meat processing and cold chain logistics[24]. - The company has established a comprehensive product structure including live pigs, meat products, and feed, optimizing the allocation of pig products in both mainland and Hong Kong-Macau markets[24]. - The company has been actively promoting key projects in pig slaughtering, cold chain logistics, and pig trading[24]. - The company operates 13 large-scale breeding bases and collaborates with over 600 small farms under a "company + appropriate scale small farm" model, enhancing its production capacity and market reach[30]. - The company has a slaughtering capacity of 700,000 pigs per year and a cold storage capacity of 40,000 tons, managed by its subsidiary Guanglian[26]. - The company is recognized as a national key leading enterprise in agricultural industrialization and is one of the largest live pig exporters to Hong Kong and Macau[29]. - The company has implemented a complete quality assurance system from farm to table, ensuring the safety and traceability of its meat products[33]. - The company’s feed production is primarily handled by its biotechnology and animal nutrition subsidiaries, focusing on compound and concentrated feed[27]. - The company has developed a robust internal control system to mitigate operational risks and enhance market resilience amid fluctuating pig prices[31]. - The company initiated a capital increase and asset acquisition plan, with the Hunan Provincial State-owned Assets Supervision and Administration Commission transferring 100% of the controlling stake in the Grain and Oil Group to the Hunan Modern Agricultural Industry Holding Group, increasing its stake in the company to 32.55%[36]. - The company established an industrial merger and acquisition investment fund with a total scale of RMB 1 billion, with an initial contribution of RMB 250 million, aimed at investing in high-growth potential enterprises within the industry[37]. Market Conditions - In the first half of 2017, the domestic pig inventory increased by 0.4% to 403.5 million heads, while the pig slaughter volume rose by 0.7% to 321.83 million heads[28]. - The average price of slaughter pigs in the first half of 2017 was 16.19 yuan, a decrease of 16.1% compared to the same period last year[28]. - The company faced a challenging market environment with fluctuating pig prices and environmental inspections, leading to a focus on strengthening fundamentals and innovative growth strategies[36]. - The industry is experiencing a shift towards larger-scale, standardized, and integrated farming practices, with the proportion of farms with annual output exceeding 500 pigs expected to reach 52% by 2020[28]. Risk Management - The company faces a risk of pig diseases during large-scale farming, with an average mortality rate of about 10%, leading to a survival rate of approximately 90%[59]. - The company is implementing enhanced epidemic monitoring measures, focusing on timely detection, prevention, and response to disease outbreaks[59]. - The company faces risks from the volatility of pig prices, which can significantly impact operations; it plans to mitigate this by diversifying sales channels and enhancing internal and external trade integration[60]. - Environmental policy changes pose a risk, as increased compliance costs may affect financial performance; the company is committed to improving its environmental management and investing in pollution control measures[60]. Shareholder Information - The total number of ordinary shareholders reached 67,119 by the end of the reporting period[85]. - Hunan Province Grain and Oil Food Import and Export Group Co., Ltd. held 202,018,546 shares, representing 30.95% of the total shares, with a decrease of 5,000,000 shares during the reporting period[86]. - The total number of shares held by the top ten shareholders was 183,955,332, which is a significant portion of the company's equity[86]. - The report indicates that there are no significant pledges or freezes on the shares held by the major shareholders[86]. - The company has established relationships with its major shareholders, particularly with Hunan Province Grain and Oil Food Import and Export Group Co., Ltd.[87]. Environmental and Social Responsibility - The company achieved a poverty alleviation rate of 98.8% in Tangjiaba Village, with 71 households and 228 registered poor households successfully lifted out of poverty[76]. - The company received a government subsidy of 1.3 million RMB during the reporting period, which was used to offset financial expenses[79]. - The company plans to deepen its poverty alleviation efforts in the second half of 2017, continuing to leverage its resources to assist in the poverty alleviation tasks led by the Grain and Oil Group[77]. Accounting and Financial Reporting - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[129]. - The accounting period for the company runs from January 1 to December 31 each year[130]. - The company classifies its operating cycle as short, using 12 months as the standard for asset and liability liquidity[131]. - The company's functional currency for accounting is Renminbi (RMB)[132]. - The company applies specific accounting treatments for mergers under common control and non-common control, adjusting capital reserves and recognizing goodwill as necessary[133]. - The company includes all subsidiaries under its control in the consolidated financial statements, following the relevant accounting standards[134].

Financial Performance - Net profit attributable to shareholders was CNY 33,384,920.20, representing a decrease of 38.04% year-on-year[6] - Operating revenue for the period was CNY 432,414,433.61, an increase of 17.72% compared to the same period last year[6] - Basic earnings per share were CNY 0.05, a decrease of 37.50% compared to the previous year[6] - The company expects a net profit attributable to shareholders for the first half of 2017 to be between 35 million and 52.5 million RMB, indicating a decline compared to the same period last year[13] - The primary reason for the expected decline in performance is the decrease in pig prices during the first half of 2017[13] - Net profit for Q1 2017 was CNY 29,223,293.42, a decrease of 38.7% from CNY 47,614,707.89 in Q1 2016[26] - The net profit attributable to shareholders of the parent company was CNY 33,384,920.20, down 38.1% from CNY 53,884,621.58 in the previous year[26] - Operating profit for Q1 2017 was CNY 27,303,670.19, a decline of 38.7% compared to CNY 44,438,612.20 in Q1 2016[26] - The company reported a total profit of CNY 29,103,887.69 for Q1 2017, down 39.4% from CNY 47,971,558.45 in the same quarter last year[26] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,898,525,530.78, a decrease of 0.85% compared to the end of the previous year[6] - As of March 31, 2017, the company's total assets amounted to approximately 1.90 billion RMB, a decrease from 1.91 billion RMB at the beginning of the year[18] - The company's current assets totaled approximately 1.16 billion RMB, slightly down from 1.17 billion RMB at the beginning of the year[16] - The company's total liabilities decreased to approximately 571.83 million RMB from 617.37 million RMB, a decline of about 7.4%[18] - Total liabilities as of the end of Q1 2017 were CNY 238,563,815.97, a decrease from CNY 259,575,294.04 at the end of the previous year[22] - The company reported a significant decrease in accounts payable, which fell to approximately 36.25 million RMB from 63.59 million RMB, a reduction of about 43%[18] Cash Flow - The net cash flow from operating activities was CNY 69,841,633.90, down 10.05% year-on-year[6] - The company’s total cash flow from operating activities for Q1 2017 was not provided in the available documents[30] - Cash inflow from sales of goods and services increased to ¥482,446,573.23, up from ¥423,652,564.80, representing a growth of approximately 13.9%[31] - Net cash flow from operating activities decreased to ¥69,841,633.90 from ¥77,647,710.05, a decline of about 10.4%[31] - Total cash inflow from investment activities was ¥788,821.28, significantly lower than the previous period's ¥16,482,218.86[32] - Cash outflow for investment activities totaled ¥12,985,788.27, slightly up from ¥12,700,532.26, indicating a marginal increase of about 2.2%[32] - Net cash flow from financing activities was negative at -¥17,694,070.01, compared to -¥6,173,552.45 in the prior period, reflecting a worsening of approximately 186.5%[32] - The net increase in cash and cash equivalents for the period was ¥39,950,596.90, down from ¥75,255,844.20, a decrease of about 47.3%[32] - The ending balance of cash and cash equivalents rose to ¥636,900,873.20 from ¥400,801,841.57, an increase of approximately 58.8%[32] Shareholder Information - The number of shareholders at the end of the reporting period was 66,127[9] - The top shareholder, Hunan Grain and Oil Food Import and Export Group Co., Ltd., held 30.95% of the shares[9] Inventory and Receivables - Prepayments decreased by 44.34% due to the receipt of goods that offset previous payments for corn and soybean meal[12] - Accounts receivable decreased to approximately 24.58 million RMB from 27.47 million RMB, a decline of about 10.5%[16] - Inventory decreased to approximately 437.42 million RMB from 481.78 million RMB, a reduction of about 9.2%[16] Financial Ratios - The weighted average return on equity decreased by 2.22 percentage points to 2.69%[6] - Total equity increased to CNY 1,351,582,952.48 from CNY 1,313,929,797.99 year-over-year[22] - The equity attributable to shareholders increased to approximately 1.26 billion RMB from 1.22 billion RMB, reflecting a growth of about 2.7%[18] Operating Costs - Total operating costs for Q1 2017 were CNY 405,032,317.74, up 25.5% from CNY 322,658,118.44 in Q1 2016[26] - Cash outflow for employee compensation increased to ¥23,564,946.71 from ¥22,056,598.07, a rise of approximately 6.8%[31] - Cash outflow for taxes paid surged to ¥6,917,862.21 from ¥1,300,014.54, reflecting a significant increase of about 433.5%[31]

Financial Performance - The company achieved a net profit of RMB 208,725,217.21 for the year 2016, with a profit distribution plan proposing a cash dividend of RMB 1.00 per 10 shares, totaling RMB 65,267,558.40[4] - Total revenue for 2016 was RMB 1,691,374,321.68, representing a year-on-year increase of 27.55% compared to RMB 1,326,036,664.34 in 2015[22] - The net profit attributable to shareholders increased significantly by 431.94% to RMB 196,621,129.71 from RMB 36,962,714.34 in the previous year[22] - Basic earnings per share rose to RMB 0.30 in 2016, a 400.00% increase from RMB 0.06 in 2015[23] - The weighted average return on equity improved to 16.97% in 2016, an increase of 12.76 percentage points from 4.21% in 2015[23] - The net cash flow from operating activities for 2016 was RMB 137,631,260.63, reflecting a 60.30% increase from RMB 85,856,485.86 in 2015[22] - The company reported a total equity attributable to shareholders of RMB 1,223,763,392.18 at the end of 2016, up 14.41% from RMB 1,069,594,266.50 in 2015[22] - The company reported a net profit attributable to the parent company reached RMB 196,621,100, an increase of 431.94% compared to the previous year[47] - The company’s cash flow from operating activities increased by 60.30%, reaching RMB 137,631,260.63[49] Revenue and Sales - In Q1 2016, the company reported revenue of ¥367.31 million, which increased to ¥512.69 million in Q4 2016, showing a growth of approximately 39.5% from Q1 to Q4[25] - The company completed pig export sales revenue of RMB 252,274,850.27, up 26.87% year-on-year, with an export volume of 112,700 heads[47][53] - Domestic sales revenue reached RMB 633,305,225.13, reflecting a growth of 53.88% due to rising domestic pig prices[47][53] - The revenue from frozen meat sales increased by 64.44%, attributed to higher sales volume[48] - The livestock sector accounted for 52.37% of total revenue, with a 45.08% increase year-over-year due to rising pig prices[54] - Feed sales represented 5.51% of total revenue, decreasing by 28.86% year-over-year due to reduced external sales[54] - Wholesale and retail revenue made up 42.12% of total revenue, increasing by 21.88% year-over-year, primarily from slaughter and refrigeration business growth[54] Industry Overview - The company operates in the livestock industry, focusing on pig farming, meat sales, and feed processing, with a comprehensive supply chain from breeding to sales[30] - The pig farming industry in China remains fragmented, with low concentration and limited pricing power among leading enterprises[33] - In 2016, China's total meat production reached 85.4 million tons, with pork production at 52.99 million tons, accounting for over 60% of meat consumption[34] - The average price of live pigs in January 2016 was 17.62 RMB/kg, peaking at 20.80 RMB/kg in June, before dropping to 16.98 RMB/kg in November[34] - The number of breeding sows decreased to 36.64 million by December 2016, a year-on-year decline of 3.6%[34] - The proportion of large-scale pig farming (over 500 pigs per year) increased to 41.8% by 2014, with a target of 52% by 2020[35] Operational Capacity - The company has established 13 large-scale breeding bases and employs both self-raising and contracted farming models to optimize production[31] - The slaughtering capacity is 700,000 pigs annually, with a cold storage capacity of 40,000 tons, enhancing the company's meat processing capabilities[32] - Daily slaughter volume exceeded 850 heads, with 88 signed customers and 214 cold storage clients[45] - The production of live pigs was 492,600 heads, with sales of 446,700 heads, reflecting a 22.60% increase in production and a 28.66% increase in sales year-over-year[55] Investments and Expansion - The company plans to increase its investment in Guanglian Company by up to 180 million RMB to improve its asset structure[43] - The company established an industrial merger and acquisition investment fund with a total scale of RMB 1 billion, with an initial investment of RMB 250 million[44] - The company invested 30 million RMB to establish a feed project to ensure supply in its core breeding areas[42] - The company has established contracts with local governments for over 1,000 mu of land, which supports its operational and expansion plans in the agricultural sector[86] Environmental and Social Responsibility - The company is committed to environmental protection and green development, aligning with stricter regulations in the pig farming industry[75] - The company has implemented an environmentally friendly technology model that includes dry manure collection and anaerobic treatment to reduce waste and promote resource utilization[82] - The company donated cash for poverty alleviation, with a total investment of RMB 8 million, including RMB 5 million for industry development projects and RMB 3 million for supporting impoverished students[140] - The poverty rate in Tangjiaba Village decreased from 43.8% in 2014 to below 1.3% by the end of 2016 due to the company's poverty alleviation efforts[140] Shareholder and Financial Structure - The company has established a shareholder return plan for 2014-2016, which has been approved by the board and aims to enhance shareholder value[119] - The company reported a net profit of approximately 196.62 million RMB for 2016, with a dividend payout ratio of 33.19%[123] - The total amount raised from the non-public offering is 529.79 million RMB, which will be used entirely to supplement working capital after deducting issuance costs[125] - The company has committed to actively return profits to shareholders, with a three-year shareholder return plan in place[126] Governance and Management - The company held three shareholder meetings during the reporting period, ensuring equal treatment of all shareholders[192] - The board of directors consists of 8 members, including 3 independent directors, and held 8 meetings during the reporting period[193] - The supervisory board has 5 members, including 2 employee representatives, and conducted 7 meetings to oversee company operations[193] - The internal control self-assessment report for 2016 was disclosed, indicating no significant deficiencies in internal controls[197]