Animal Health and Biosecurity - The company reported a significant impact from animal epidemics, with the African swine fever causing substantial losses in the past, affecting both large enterprises and small farmers [6]. - The company has established a comprehensive biosecurity system, achieving a control rate of less than 1% for African swine fever outbreaks by the end of the first half of 2021 [10]. - The company is committed to continuous improvement in its biosecurity measures, including the use of advanced technologies for disease monitoring and prevention [10]. - The company has been proactive in adjusting its product structure and improving quality to counteract the effects of epidemics and market fluctuations [9]. - The company has developed a cloud-based animal health monitoring system to enhance disease prevention and control measures, improving overall livestock survival rates [9]. - The company has accumulated experience in disaster response, including the establishment of emergency plans and the stockpiling of flood prevention materials [11]. - In response to animal epidemics, the company has implemented strict biosecurity measures, achieving an industry-leading survival rate for livestock, with less than 1% of farms affected by African swine fever as of mid-2021 [153]. - The company has established a four-tier biosecurity system for pig farms, effectively isolating the African swine fever virus [92]. - The company has developed 65 research outcomes in the field of African swine fever prevention, demonstrating its commitment to biosecurity [91]. Financial Performance - The company's operating revenue for the reporting period reached ¥61.52 billion, an increase of 37.64% compared to ¥44.70 billion in the same period last year [46]. - The net profit attributable to shareholders was a loss of ¥3.42 billion, a decrease of 207.94% from a profit of ¥3.16 billion in the previous year [46]. - The net cash flow from operating activities was a negative ¥4.60 billion, down 797.94% from ¥658.59 million in the same period last year [46]. - Total assets at the end of the reporting period amounted to ¥132.39 billion, reflecting a 20.96% increase from ¥109.44 billion at the end of the previous year [46]. - The company's net assets attributable to shareholders decreased by 6.65% to ¥37.20 billion from ¥39.85 billion at the end of the previous year [46]. - The basic earnings per share were -¥0.79, compared to ¥0.76 in the same period last year, marking a decline of 203.95% [46]. - The diluted earnings per share were -¥0.78, down 204.00% from ¥0.75 in the previous year [46]. - The weighted average return on equity was -9.28%, a decrease of 20.44 percentage points from 11.16% in the previous year [46]. - The company reported non-operating losses totaling ¥1.11 billion for the reporting period [51]. Market and Industry Trends - The company has faced challenges due to natural disasters, but its diversified business layout across regions has mitigated significant impacts on overall operations [11]. - The poultry market faced challenges in H1 2021, with high inventory levels leading to low prices, further exacerbated by reduced consumer demand due to the pandemic [16]. - Environmental regulations have intensified since 2014, leading to the exit of non-compliant producers, which may benefit remaining industry players in terms of profitability [19]. - The domestic feed industry has entered a mature stage, with national feed production growth rates of -3.7% in 2019 and a recovery of 16.4% in 2020, reaching 86% of 2018 levels [56]. - The company maintains the leading position in the domestic feed industry, with poultry feed sales ranked first and pig and aquatic feed in the top three nationally [60]. - The company is actively investing in and acquiring projects related to food processing and agricultural product sales, transitioning from a feed company to a food enterprise [60]. - The company is the largest parent duck seed supplier and the second largest supplier of commodity chicken and duck seeds in China, with a focus on digital management and cost control in breeding [65]. - The company is actively pursuing new retail and emerging business models, collaborating with platforms like Alibaba and JD to innovate and upgrade its product and supply chain [98]. Cost Management and Efficiency - The company has maintained a strong focus on cost reduction and efficiency improvements in response to rising feed raw material prices [12]. - The cost of feed raw materials typically accounts for over 90% of the total feed cost, with rising prices significantly impacting the company's overall performance as livestock and poultry farming becomes a larger revenue contributor [13]. - The company has optimized its raw material procurement system since 2017, establishing strategic partnerships with suppliers to mitigate raw material price fluctuations [14]. - The company aims to enhance its breeding efficiency and maintain lower costs than competitors to sustain profitability during price downturns in the livestock market [18]. - The company has focused on long-term cost reduction strategies as the market share competition phase stabilizes [69]. - The company’s pig farming cost management has been optimized through standardized cost accounting and a detailed weight gain cost model [91]. - The company has implemented a standardized training process for pig farming talent, utilizing internal training programs to enhance efficiency and reduce training time for new employees [29]. Environmental Compliance and Sustainability - The company has implemented a comprehensive food safety management system, achieving certifications such as China-HACCP and BRC, ensuring safety across the supply chain from feed to table [163]. - The company is classified as a key pollutant discharge unit by environmental protection authorities [179]. - The company has established agreements with wastewater treatment plants to manage its discharge effectively [179]. - The company is actively monitoring and managing its environmental impact through compliance with national standards [180]. - The company has implemented measures to ensure that the pH levels of wastewater remain between 6 and 8.5, complying with environmental regulations [184]. - The company is focused on enhancing its wastewater treatment processes to meet stricter environmental standards in the future [184]. - The company is committed to reducing the concentration of pollutants in wastewater, with specific targets for ammonia and total nitrogen levels [185]. - The company has invested in technology to improve waste treatment processes and reduce overall emissions [185]. Talent Management and Development - The company has implemented a talent cultivation and organizational activation strategy, focusing on recruiting not only agricultural professionals but also veterans and individuals from non-agricultural backgrounds [167]. - The company has standardized daily production processes and enhanced training through its internal "Pig University" and "Pig Industry Research Institute," aiming to shorten the training time for new employees [167]. - The company has increased recruitment efforts in strategic new business areas and is actively conducting cross-industry training to enrich the knowledge and skills of existing personnel [168]. - The company has established a competitive selection mechanism to create a meritocratic environment for managerial talent development [168]. Strategic Initiatives and Future Outlook - The company plans to enhance its talent recruitment in strategic new business areas and promote cross-industry training to improve the knowledge and skills of existing employees [30]. - The company aims to achieve higher premium returns in poultry sales by improving standards in breeding and slaughtering processes [64]. - The company is exploring potential acquisitions in the livestock sector to enhance its supply chain and reduce costs [182]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2023 [182]. - The company has set a performance guidance for the next quarter, projecting a revenue growth of 10% [182]. - The company aims to achieve a 5% increase in overall operational efficiency through strategic initiatives implemented in 2021 [182].

Financial Performance - The company's operating revenue for 2020 was ¥109.83 billion, an increase of 33.85% compared to ¥82.05 billion in 2019[42]. - The net profit attributable to shareholders for 2020 was ¥4.94 billion, a decrease of 1.94% from ¥5.04 billion in 2019[42]. - The net profit after deducting non-recurring gains and losses was ¥5.47 billion, up 3.80% from ¥5.27 billion in 2019[42]. - The net cash flow from operating activities increased by 27.53% to ¥5.66 billion in 2020, compared to ¥4.44 billion in 2019[42]. - The total assets at the end of 2020 were ¥109.44 billion, a 70.43% increase from ¥64.22 billion at the end of 2019[44]. - The net assets attributable to shareholders increased by 52.89% to ¥39.85 billion at the end of 2020, compared to ¥26.06 billion at the end of 2019[44]. - The weighted average return on equity for 2020 was 16.09%, down 4.54 percentage points from 20.63% in 2019[44]. - The company reported a quarterly revenue of ¥35.04 billion in Q4 2020, marking a significant increase from previous quarters[47]. - The non-recurring losses for 2020 totaled ¥528.47 million, compared to losses of ¥230.13 million in 2019[49]. - The company achieved a gross profit of ¥3.727 billion from feed sales, an increase of ¥0.290 billion, or 8.43% year-on-year[109]. Market Dynamics - The company faced significant challenges in 2020 due to the COVID-19 pandemic, which led to delayed operations and reduced livestock production capacity[7]. - The resurgence of African swine fever has continued to impact the livestock industry, affecting production and market dynamics[6]. - In 2020, the company faced price fluctuations in livestock, with pig prices initially dropping due to weak consumption but later rebounding, while poultry prices remained under pressure due to oversupply and reduced demand caused by COVID-19[16]. - The company anticipates that the recovery of national pig production capacity will lead to a decrease in pig prices, while the poultry market will continue to face supply-demand imbalances[16]. - The company has reported that environmental regulations are forcing non-compliant farms to exit the market, which may benefit remaining producers by improving profitability in the long run[19]. Operational Strategies - The company has implemented strict biosecurity measures and established a comprehensive disease prevention system, achieving industry-leading survival and market rates for pigs[10]. - The company has developed emergency response plans and maintains sufficient flood prevention materials to mitigate the impact of natural disasters on operations[12]. - The company has adapted its production strategies in response to natural disasters, leveraging its nationwide presence to minimize operational disruptions[12]. - The company has focused on enhancing product quality and market development to counteract the effects of various epidemics and price fluctuations[10]. - The company has been focusing on improving breeding efficiency, maintaining industry-leading levels in key metrics such as PSY (Pigs per Sow per Year) and total cost, ensuring competitiveness during price downturns[17]. Talent and Workforce - The company has expanded its pig farming workforce to 50,000 people and plans to continue this expansion, which poses challenges in talent recruitment and retention[28]. - The company has focused on enhancing its talent development strategy, including recruiting from non-agricultural backgrounds and veterans, to address the shortage of skilled personnel in new business areas[29]. - The company is facing increased competition for talent in the agricultural sector, which may impact its long-term development[28]. Investment and Financing - The company completed the issuance of RMB 4 billion convertible bonds and initiated a new round of RMB 8.15 billion convertible bonds to support development[105]. - The company has a total of 720,000 heads of pigs planned for annual output across multiple projects, with specific projects showing completion rates of 86.60%, 61.54%, and 30.23%[165]. - The company has signed a tripartite supervision agreement with the sponsor and regulatory bank for the management and use of raised funds[161]. - The company is committed to ensuring that the raised funds are used specifically for the designated projects as per regulatory requirements[161]. Research and Development - The company has established a comprehensive feed nutrition and raw material database, with 2,006 patent applications, of which 1,371 have been authorized, showcasing its strong R&D capabilities[83]. - Research and development personnel increased by 42% year-on-year, with R&D investment rising by 53%[105]. - The company launched the "6H no-antibiotic comprehensive solution" in feed research, with biological and environmentally friendly feed sales exceeding 3.5 million tons[139]. - The company is actively involved in over 51 key research projects across various fields, including feed, pig farming, and food safety[139]. Supply Chain Management - The company has utilized hedging tools to manage raw material price volatility during the COVID-19 pandemic, demonstrating effective supply chain management[14]. - The company has been actively optimizing its raw material procurement system since 2017, establishing strategic partnerships with suppliers to mitigate the impact of rising raw material prices[14]. - The company achieved a centralized procurement rate of approximately 52% in 2020, with key raw material direct procurement rates reaching 95%[84]. Environmental and Biosecurity Measures - The company has established a high standard for biosecurity measures in its self-fattening operations, which has proven effective in disease prevention compared to farmer-operated facilities[67]. - The company has implemented a four-tier biosecurity system in its breeding farms to effectively isolate the African swine fever virus[92]. - The company's wastewater treatment process meets agricultural irrigation standards, allowing for a pig carrying capacity of 30 per mu, significantly higher than the industry average of 3 per mu[95]. Product Development and Sales - The company has launched bio-environmental feed and antibiotic-free feed, while also eliminating outdated production capacity[59]. - The company achieved a poultry meat sales volume that accounted for approximately 10% of the national total in 2020, maintaining a leading position in the white feather duck market[89]. - The company sold 20.77 million tons of pork products, a decrease of 2.49 million tons or 10.7% year-on-year, primarily due to a decline in domestic pig inventory[122]. - The sales revenue of the "Beautiful Farmhouse Small Crispy Meat" product exceeded 600 million RMB, achieving over 300% year-on-year growth[190]. Challenges and Future Outlook - The company is navigating a challenging financial landscape while pursuing growth opportunities in the agricultural sector[175]. - Future outlook remains cautious due to the high number of losses reported, which may affect overall profitability in the coming periods[175]. - The company is exploring potential mergers and acquisitions to strengthen its market position, although no specific targets were mentioned[175].

Impact of COVID-19 and Natural Disasters - The company reported a significant impact from the COVID-19 pandemic, leading to delays in operations and a decrease in livestock sales, which affected overall production activities[5]. - The company has actively engaged with government authorities to facilitate the transportation of livestock products and raw materials during the pandemic, ensuring supply chain continuity[10]. - The company has established emergency plans and stockpiled flood prevention materials to effectively respond to natural disasters, minimizing operational disruptions[11]. - Natural disasters, such as floods, have adversely affected the supply chain, leading to increased costs and potential losses in livestock production[149]. - The COVID-19 pandemic severely impacted the livestock industry, causing delays in operations and disruptions in the supply chain[148]. Livestock Production and Sales - In 2019, China's pig output fell by 21.6% year-on-year, with the total pig inventory down by 27.5% by the end of the year, highlighting the industry's vulnerability to disease outbreaks[5]. - Since 2015, the company's pig farming business has rapidly developed, with sales reaching 3.55 million pigs in 2019, and over 300 million chickens and ducks sold, significantly contributing to overall revenue and profit[16]. - The company achieved a pig output of 2.12 million heads in the first half of 2020, maintaining its position among the top four listed companies in the industry[72]. - The company sold a total of 2.1229 million pigs, an increase of 770,000 heads year-on-year, representing a growth rate of 58.0%[115]. - The company sold 19.875 million live chickens and ducks, a year-on-year increase of 4.751 million, representing a growth rate of 31.4%[111]. Financial Performance - The company's operating revenue for the reporting period reached ¥44.70 billion, an increase of 26.64% compared to ¥35.29 billion in the same period last year[42]. - Net profit attributable to shareholders was ¥3.16 billion, representing a 102.57% increase from ¥1.56 billion year-on-year[42]. - The net profit after deducting non-recurring gains and losses was ¥3.28 billion, up 97.58% from ¥1.66 billion in the previous year[42]. - The company's gross profit was 4.78 billion yuan, a decrease of 490 million yuan, with a decline rate of 50.67%[111]. - The company reported a total external guarantee amount approved during the reporting period of 3,150 million, with actual guarantees amounting to 192 million[200]. Biosecurity and Disease Management - The company has implemented strict biosecurity measures and established a comprehensive epidemic prevention system, achieving industry-leading survival and market rates for pigs[8]. - The company has developed a cloud-based disease monitoring system to enhance real-time surveillance and response to potential outbreaks, improving service to farmers[8]. - The company has developed a comprehensive prevention and control system for major epidemics, particularly in response to the African swine fever outbreak[151]. - The company has achieved a survival rate of over 90% in African swine fever prevention, positioning itself at the forefront of the industry in biosecurity measures[92]. - The company has implemented a comprehensive biosecurity management system across its breeding farms, ensuring effective control of African swine fever through a four-tier safety isolation system[93]. Raw Material Costs and Procurement - The cost of raw materials accounts for over 90% of total feed production costs, making the company sensitive to fluctuations in feed ingredient prices, which could impact profitability[12]. - The company has implemented a raw material procurement system since 2017, establishing strategic partnerships with multiple suppliers to optimize procurement costs[156]. - The company has enhanced its risk management by increasing the use of hedging tools to control raw material price fluctuations during the COVID-19 pandemic[156]. - The feed raw material costs account for 80-90% of the selling price, making effective procurement crucial for success[52]. - Since 2018, feed raw material costs have shown a fluctuating upward trend, with soybean meal prices experiencing significant spikes due to market volatility[155]. Environmental and Food Safety Compliance - Environmental regulations have led to the exit of non-compliant farms, which may reduce overall supply but could enhance profitability for compliant producers in the long run[20]. - The company has established a comprehensive food safety management system, including the creation of 5 regional testing centers and the implementation of a "three-level" testing system[23]. - All food enterprises under the company have passed the China-HACCP standard certification, with over 60 companies completing BRC and Global-GAP certifications[24]. - The company's wastewater treatment process meets agricultural irrigation standards, with COD concentration ≤ 200 mg/L and ammonia nitrogen concentration ≤ 100 mg/L, significantly exceeding industry norms[95]. - The company is committed to upgrading and rectifying its environmental protection equipment and is in communication with government authorities to obtain necessary environmental approvals[180]. Talent and Workforce Development - The company has expanded its pig farming workforce to over 30,000 people, with plans to recruit an additional 10,000 to 20,000 annually to meet future production goals[28]. - The company has established a talent training system, including a "pig industry university" and a "pig industry research institute," to enhance the skills of its workforce[30]. - The company has developed a talent incentive system to retain employees and enhance productivity in the pig farming sector[170]. - The company has increased recruitment efforts in strategic new business areas and is actively conducting industry training to enhance the knowledge and skills of existing employees[171]. - In July 2019, the company implemented a restricted stock and stock option incentive plan to motivate core technical personnel and key members of the pig farming business team, ensuring the rapid implementation of its technology and pig farming strategies[171]. Strategic Initiatives and Market Position - The company has diversified its operations across various regions to mitigate the impact of natural disasters, ensuring that localized events do not significantly affect overall business performance[11]. - The company is focusing on improving breeding efficiency and maintaining lower costs than competitors to enhance profitability during price downturns in the livestock market[18]. - The company is actively exploring new breeding models that prioritize ecological and environmental standards, aiming to support the healthy development of the livestock industry[20]. - The company is focusing on enhancing operational efficiency through lean management and optimizing its supply chain design[31]. - The company is actively developing international raw material procurement and investment operations to mitigate foreign exchange risks[26].

新希望六和股份有限公司 2019 年年度报告全文 新希望六和股份有限公司 2019 年年度报告 2020-36 2020 年 04 月 1 新希望六和股份有限公司 2019 年年度报告全文 动物疫病是畜牧业发展中面临的主要风险。疫病发生带来的风险包括三类， 第一节重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人刘畅、主管会计工作负责人王述华及会计机构负责人(会计主管 人员)陈静声明：保证年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 公司 2020 年年度财务预算、经营计划、经营目标并不代表公司对 2020 年 度的盈利预测，能否实现取决于市场状况变化、经营团队的努力程度等多种因 素，存在很大的不确定性，请投资者特别注意。 公司需遵守《深圳证券交易所行业信息披露指引第 1 号——上市公司从事 畜禽、水产养殖业务》的披露要求 一、疫情及自然灾害风险 | --- | |-------------------------------------- ...