Financial Performance - Total assets increased by 10.69% to CNY 46,990,809,274.51 compared to the end of the previous year[6] - Operating revenue for the reporting period reached CNY 19,171,123,013.01, a year-on-year increase of 19.26%[6] - Net profit attributable to shareholders decreased by 25.21% to CNY 604,695,041.18 compared to the same period last year[6] - Basic earnings per share fell by 26.32% to CNY 0.14[6] - The weighted average return on equity decreased by 0.97 percentage points to 2.85%[6] - Cash flow from operating activities for the year-to-date period was CNY 2,053,074,217.43, an increase of 9.25%[6] - The company reported a net profit of CNY 1,450,739,720.37 for the year-to-date period, down 25.20% year-on-year[6] Shareholder Information - The total number of shareholders at the end of the reporting period was 90,425[10] - The top two shareholders, Southern Hope Industry Co., Ltd. and New Hope Group Co., Ltd., held 29.08% and 24.27% of shares, respectively[10] - New Hope Liuhe reported a commitment to not sell shares below 6.8 CNY until the end of a 36-month lock-up period[20] - New Hope Liuhe's major shareholders have committed to not transferring or managing their shares for 12 months post-listing[21] - The company has established a 36-month lock-up period for newly issued shares, ensuring stability in its shareholding structure[22] - New Hope Liuhe Co., Ltd. reported a 12.83% stake sale in its subsidiary, generating approximately 73.3 million RMB at an issuance price of 8.38 RMB per share[22] Cash and Receivables - The company's cash and cash equivalents increased by ¥1,787.52 million, a growth of 58.22%, primarily due to increased investments and cash reserves[14] - Accounts receivable increased by ¥417.74 million, a rise of 74.78%, attributed to the company's sales policy allowing certain credit sales to customers[14] - Prepayments increased by ¥432.57 million, a significant increase of 112.06%, mainly due to higher advance payments to suppliers for raw materials[14] Research and Development - The company's R&D expenses rose by ¥18.40 million, an increase of 47.78%, reflecting higher investment in research and development activities[14] Financing Activities - The net cash flow from financing activities increased by ¥2,347.72 million, a growth of 200.85%, due to net increases in bank borrowings and reduced dividends to investors[14] - The company's long-term borrowings increased by ¥1,121.72 million, a substantial rise of 181.94%, resulting from adjustments in the debt structure[14] Risk Management and Compliance - The company plans to engage in hedging transactions with a total amount not exceeding $600 million over the next two years to mitigate foreign exchange and interest rate risks[16] - The company has pledged to compensate for any additional expenses or losses due to environmental non-compliance issues[21] - The company is actively working on environmental compliance for its pig farming and feed production facilities, with no significant legal obstacles reported in the environmental impact assessment process[24] - New Hope Liuhe Co., Ltd. has committed to upgrading its environmental protection equipment and ensuring compliance with government regulations[24] - The company has pledged to compensate for any economic losses incurred due to environmental non-compliance prior to the issuance of shares for asset purchases[24] Strategic Partnerships and Commitments - The company will continue its strategic partnership with The Andersons, Inc. regarding its stake in the U.S. Blue Star Trading Group, supporting a cash buyback of part of its shares[18] - New Hope Liuhe's major shareholder, New Hope Group, committed to ensuring the company's financial and operational independence[21] - The company confirmed that it will avoid or minimize related party transactions post-major asset restructuring[21] - The company has ensured that no direct or indirect competition will arise from its major shareholders[20] - The company has committed to fulfilling information disclosure obligations regarding related party transactions[21] Derivative Investments - The company engaged in derivative investments with a total initial investment of 343.62 million, resulting in a net investment amount of 1,804.58 million at the end of the reporting period[30] - The actual loss from derivative investments during the reporting period was 1,933.25 million, indicating a significant impact on financial performance[31] - The company implemented risk management strategies for commodity futures hedging, including strict control of futures positions and funding scale[32] - The company’s hedging transactions are based on major futures market products, ensuring high market transparency and active trading[33] - The company has established a derivative investment management system to prevent speculative behavior and enhance operational staff professionalism[33] - The company’s financial department regularly tracks the market prices of trading contracts to assess risk exposure changes[33] - There were no significant changes in the accounting policies related to derivative transactions compared to the previous reporting period[33] Asset Impairment and Investments - The company reported an increase in asset impairment losses by ¥293.81 million, a rise of 255.24%, primarily due to higher provisions for receivables and inventory[14] - The company reported a total investment amount of 1,998.0 million in securities, with a fair value of 1,968.39 million, reflecting a change of 29.655 million during the reporting period[27] Compliance and Governance - The company has not engaged in any non-compliant external guarantees during the reporting period[36] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[37]

Economic Performance - In the first half of 2018, China's GDP growth rate was 6.8%, continuing a trend of being below 7% for the past three years, indicating a shift to a "new normal" of medium-high growth [5]. - The company's operating revenue for the first half of 2018 was CNY 31,642,779,555.68, representing a 6.22% increase compared to CNY 29,788,493,938.88 in the same period last year [35]. - The net profit attributable to shareholders decreased by 25.20% to CNY 846,044,679.19 from CNY 1,131,121,345.13 year-on-year [35]. - The net cash flow from operating activities increased by 25.58% to CNY 1,239,093,832.81 compared to CNY 986,701,975.86 in the previous year [35]. - The total assets at the end of the reporting period were CNY 46,147,843,699.92, an increase of 8.71% from CNY 42,451,633,023.98 at the end of the previous year [35]. - The company's weighted average return on equity decreased by 1.33 percentage points to 3.97% from 5.30% in the previous year [35]. - The company reported a total revenue of 23,070 million CNY from Changsha Guoxiong Feed, contributing 1,177.52 million CNY to the overall performance [165]. - New Hope Liuhe reported a revenue of 15.2 billion RMB for the first half of 2018, representing a year-on-year increase of 12% [182]. - The company achieved a net profit of 1.2 billion RMB, up 20% compared to the same period last year [184]. Market Challenges - The company faced three main risks: insufficient consumer demand affecting product sales, declining product prices due to weak economic conditions, and increased operational pressures from financing difficulties and rising production costs [6][7]. - In the first half of 2018, pig prices were in a downward trend, reaching near 8-year lows, which could impact the company's profit levels [10]. - The overall economic environment has led to increased production costs and financing difficulties for the company [118]. - The company is facing risks due to slowing domestic economic growth, which may impact product sales and inventory pressure [118]. Innovation and Transformation - The company has been actively innovating and transforming since 2013, focusing on optimizing product structure and increasing the proportion of high-margin feed products [8]. - The company is adapting to market changes by establishing service companies for poultry and pig farming, focusing on eco-friendly and efficient practices [14]. - The company is exploring agricultural internet finance to support farmers and enhance its service offerings [46]. - The company is focusing on upgrading production efficiency through technological innovations, such as bio-environmental feed and improved logistics [44]. - The company is actively pursuing a transformation towards an integrated model of feed production, breeding, and slaughtering, with investments in food and sales-related projects [46]. Environmental Compliance - Environmental regulations have intensified since 2014, leading to stricter controls on livestock farming, which could affect the company's production capacity [12]. - The company is classified as a key pollutant discharge unit by environmental protection authorities [170]. - The total COD discharge was reported at 21.567 tons per annum, with no exceedance of discharge standards [170]. - The company has implemented pollution control measures in compliance with national standards [170]. - The company has received environmental approvals for various projects, including the low-temperature meat processing project in Chengdu, which was approved in 2008 [179]. - The company is focused on maintaining environmental standards across its various facilities, with specific attention to wastewater quality and compliance [188]. Food Safety and Quality - The company has invested CNY 100 million to enhance its food safety management system, establishing a comprehensive safety control chain from feed production to consumer [19]. - The company has been recognized for its food safety efforts, being elected as a vice-chair unit of the GFSI China Council and passing BRC food safety certification [20]. - The company has implemented strict epidemic prevention measures at its standardized breeding farms to control disease outbreaks effectively [126]. - The company has developed a cloud-based animal health monitoring system since 2014 to provide real-time disease monitoring and guidance for farmers [126]. Talent Development - The company plans to focus on talent development and organizational activation as part of its long-term strategic tasks [23]. - The company is enhancing its talent recruitment efforts in new business areas and promoting cross-industry training to improve the knowledge and skills of existing employees [23]. - The company is focusing on talent development and organizational activation as part of its long-term strategy to address human resource risks in the evolving agricultural and food sectors [131]. Investment and Financial Management - The company has established a risk management strategy that includes strict control of futures positions and funding scale for hedging operations [110]. - The company aims to manage raw material procurement price risks through commodity futures hedging operations [110]. - The company has a dedicated futures operation team and monitoring team to ensure compliance with its hedging policies [110]. - The company reported a guarantee amount of 24,900,000 CNY for Sichuan New Hope Liuhe Agricultural Co., Ltd. Chengdu Branch, with an actual guarantee of 1,440,460 CNY on February 7, 2018 [158]. Social Responsibility and Poverty Alleviation - The company helped 1,238 registered poor individuals increase their income in the first half of 2018, with 120 individuals achieving poverty alleviation, totaling 1,796 individuals since 2016 [191]. - A total of 45,910,000 RMB was invested in poverty alleviation projects, with 21 projects initiated in the agricultural and forestry sectors [193]. - The company has established a strategic cooperation with Evergrande Group for a 10-year joint poverty alleviation project, with a total breeding scale of 16,800 pigs across four projects [192]. - The company has conducted vocational skills training for 82 individuals as part of its employment transfer poverty alleviation efforts [193].

Financial Performance - The company's operating revenue for Q1 2018 was approximately ¥14.81 billion, representing a 1.32% increase compared to ¥14.61 billion in the same period last year[5]. - The net profit attributable to shareholders decreased by 5.51% to approximately ¥603.71 million from ¥638.93 million year-on-year[5]. - The net cash flow from operating activities significantly dropped by 89.08% to approximately ¥10.71 million, down from ¥98.07 million in the previous year[5]. - Basic and diluted earnings per share both decreased by 6.67% to ¥0.14 from ¥0.15 in the same period last year[5]. - Total assets increased by 6.01% to approximately ¥45.00 billion compared to ¥42.45 billion at the end of the previous year[5]. - The net assets attributable to shareholders rose by 3.17% to approximately ¥21.49 billion from ¥20.83 billion at the end of the last year[5]. - The weighted average return on equity decreased by 0.18 percentage points to 2.85% from 3.03% year-on-year[5]. Cash Flow and Investments - The net cash flow from operating activities decreased by CNY 87.36 million, a decline of 89.08%, due to higher raw material procurement costs and cash payments to employees[13]. - The net cash flow from investing activities increased by CNY 706.58 million, a growth of 76.06%, primarily from the recovery of financial products[13]. - The net increase in cash and cash equivalents was CNY 993.98 million, a remarkable increase of 1,148.71%, driven by increased borrowings and recovery of financial products[13]. - Financial expenses rose by CNY 69.35 million, an increase of 128.73%, mainly due to higher interest expenses from increased borrowings and foreign exchange losses[13]. - The total investment in securities at the beginning of the period was 1,911,408.19 CNY, with a reported gain of 9,807.97 CNY during the reporting period[24]. - The company has engaged in derivative investments, with a total investment amount of 343.62 million CNY at the end of the reporting period, resulting in a net profit of 302.58 million CNY[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 98,269[9]. - The company reported a significant increase in revenue, achieving a total of 10,107,336 shares issued at a price of 8.38 CNY per share[18]. Management and Corporate Governance - The company appointed new executives, including a CFO and a VP of Information, to enhance management capabilities[15]. - The company has committed to ensuring the independence of its assets, finances, and operations following the completion of a major asset restructuring[19]. - The company has pledged to compensate for any additional expenses or losses incurred due to environmental non-compliance issues related to the acquired assets[18]. - The company will not transfer or manage shares for 12 months following the issuance of new shares, ensuring stability in ownership[19]. - The company has established measures to prevent any related party transactions from harming the interests of non-related shareholders[18]. - The company is focused on maintaining its core business independence and avoiding any competition with its subsidiaries[19]. - The company has committed to full disclosure of related party transactions to ensure transparency[18]. - The company is committed to respecting its independent corporate status and ensuring autonomous decision-making[21]. - The company has established a commitment to avoid any financial misconduct involving the use of company funds by related parties[21]. Environmental Compliance - The company is actively working on environmental compliance for its pig farming projects, with no substantial legal obstacles reported for the environmental impact assessment approvals[21]. - The company has committed to ensuring that its pollution control facilities operate normally, with no major environmental pollution incidents reported[21]. - The company is undertaking upgrades and replacements of its environmental protection equipment to meet regulatory standards and obtain necessary permits[21]. - The company has pledged to compensate for any economic losses incurred due to administrative penalties related to environmental non-compliance[22]. - The company has outlined its commitment to environmental compliance as part of its operational strategy[18]. Risk Management and Derivative Investments - The company has implemented risk management strategies for commodity futures hedging, including strict control of futures positions and funding scale[27]. - The company has established a long-term price trend warning mechanism to monitor major commodity price movements and ensure timely responses to abnormal fluctuations[27]. - The company prohibits any speculative behavior in its hedging transactions and limits the transaction amount to the authorized upper limit approved by the board[27]. - The company has a dedicated futures operation team and monitoring team to oversee hedging activities and ensure compliance with internal regulations[27]. - The company’s derivative investment management system includes clear regulations and internal audits to control risks associated with derivative trading[27]. - The company is actively engaged in hedging transactions in major domestic futures markets, ensuring high market transparency and active trading[28]. - The company reported no litigation issues related to its derivative investments[26]. - The company’s derivative investments are primarily funded through self-raised capital[26]. - The company reported no significant changes in accounting policies or principles related to derivative transactions compared to the previous reporting period[28]. Future Outlook - The company anticipates a significant change in cumulative net profit from the beginning of the year to the next reporting period, potentially resulting in a loss compared to the same period last year[23]. - There were no instances of non-compliance with external guarantees during the reporting period[31]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[32].

Financial Performance - The company's operating revenue for 2017 was ¥62.57 billion, representing a 2.77% increase compared to ¥60.88 billion in 2016[44]. - The net profit attributable to shareholders decreased by 7.66% to ¥2.28 billion from ¥2.47 billion in 2016[44]. - The net profit after deducting non-recurring gains and losses was ¥2.28 billion, down 3.92% from ¥2.37 billion in 2016[44]. - The net cash flow from operating activities fell by 12.83% to ¥2.71 billion, compared to ¥3.11 billion in 2016[44]. - The total assets at the end of 2017 were ¥42.45 billion, an increase of 13.55% from ¥37.39 billion at the end of 2016[45]. - The net assets attributable to shareholders increased by 1.55% to ¥20.83 billion from ¥20.52 billion at the end of 2016[45]. - The basic earnings per share decreased by 8.47% to ¥0.54 from ¥0.59 in 2016[44]. - The weighted average return on equity was 10.81%, down 1.38 percentage points from 12.19% in 2016[45]. - The company reported a total of ¥69.88 million in government subsidies related to business operations for 2017[51]. - The company achieved a total revenue of ¥6,256,684.86 million, a year-on-year increase of ¥168,732.54 million, representing a growth rate of 2.77%[82]. - The net profit attributable to shareholders was ¥228,000.05 million, a decrease of ¥18,906.60 million, with a decline rate of 7.66% due to the impact of H7N9 avian influenza on poultry farming and meat business profits[82]. Livestock and Poultry Operations - In 2017, the company sold 2.4 million pigs and over 200 million chickens and ducks, significantly increasing the contribution of livestock and poultry farming to overall revenue and profit[14]. - The company reported that the price of livestock and poultry products experienced significant declines in 2017, affecting profit levels, particularly in the pig market[14]. - The average price of live pigs in 2017 was the lowest in three years, impacting the pig farming business[80]. - The poultry farming industry has experienced significant cyclical fluctuations, with a downturn beginning in early 2017 due to overcapacity and H7N9 flu outbreaks[61]. - The company plans to ensure stable livestock resources by developing new farming bases through new construction, acquisitions, and partnerships in suitable environmental areas[19]. - The company has maintained a PSY (Pigs per Sow per Year) of over 26, which is above the industry average of 17, indicating a leading position in breeding efficiency[67]. - The company has expanded its pig farming capacity by 580,000 heads through various projects and acquisitions, bringing the total new pig farming capacity since 2016 to 1,480,000 heads[89]. - The company is focusing on optimizing its white feather poultry business by enhancing production efficiency and ensuring 100% food safety[154]. Market and Sales Strategy - The company has been actively expanding its overseas investments, with new feed factories being established and a notable increase in sales revenue from international markets[9]. - The company is exploring agricultural internet finance to expand its market reach and improve service offerings to farmers[58]. - The company has shifted its strategy in the meat processing sector from traditional wholesale to direct supply to large clients, enhancing brand value and market presence[69]. - The company has established strategic partnerships with various domestic and international suppliers to strengthen its procurement capabilities and reduce risks associated with raw material price volatility[12]. - The company is focusing on product innovation and efficiency improvements in the feed industry, with a shift towards value-added services for farmers[56][57]. - The company is expanding its market presence in Asia, particularly in Indonesia, Vietnam, the Philippines, and Bangladesh, while also focusing on feed industry transfer in Africa, especially in Egypt and South Africa[154]. Risk Management and Compliance - The company faced risks from insufficient consumer demand, leading to increased sales pressure and inventory challenges, as well as potential impacts on total revenue[6]. - The outbreak of animal diseases, such as H7N9 avian influenza, has led to decreased production and consumer demand, severely affecting the poultry business until Q3 2017[21]. - Natural disasters and extreme weather events pose risks to production facilities and raw material prices, with significant flooding impacting operations in southern China in 2016[20]. - The implementation of strict environmental regulations since 2014 has led to a significant reduction in livestock farming, particularly affecting duck farming in Shandong province[17]. - The company has implemented a comprehensive food safety management system, investing 100 million yuan to upgrade testing facilities and establish regional testing centers[26]. - The company has developed a traceable food safety control chain from feed production to consumer delivery, with its "Bai You Zi" brand duck meat achieving full traceability in 2014[27]. - The company has established a dedicated futures operation team and monitoring team to ensure compliance with its hedging policies and to conduct internal audits[136]. Research and Development - The company has established 16 R&D bases and 26 pilot bases, with a research team comprising 42 PhDs and 396 master's degree holders[73]. - The company has received multiple awards for its research projects, including the first prize of the "Chinese Agricultural Science and Technology Award" for 2014-2015[74]. - The company developed several new technologies, including TMR technology and low-protein diets for pigs, aimed at improving animal health and reducing environmental impact[111][112]. - The company has established the largest feed nutrition and raw material database in the industry, collaborating with multiple suppliers to optimize nutrition and cost combinations, mitigating the impact of raw material price fluctuations[73]. Environmental and Regulatory Compliance - The company emphasizes the importance of environmental compliance in its operations, as stricter regulations have led to production limitations for some participants in the industry[60]. - The company is actively upgrading its facilities to meet environmental standards, which is seen as an opportunity to enhance its commodity breeding resources[61]. - The company has confirmed that its pollution control facilities are operating normally, with no major environmental pollution incidents reported[173]. - New Hope Liuhe has pledged to actively upgrade and replace its environmental protection equipment in compliance with government regulations[173]. Investment and Financial Strategy - The company plans to establish an international trading and investment center based in Singapore to manage foreign exchange risks and enhance overseas procurement and financing capabilities[29]. - The company has set a projected funding requirement of approximately 6.2 billion RMB for 2018, sourced from internal funds, financing from financial institutions, and issuing short-term financing bonds[155]. - The company is evaluating its investment in Minsheng Bank, which is part of its broader financial strategy[158]. - The company has not utilized any fundraising during the reporting period, reflecting a self-sustained operational approach[137]. Shareholder and Dividend Information - The profit distribution plan approved by the board proposes a cash dividend of 1.50 RMB per 10 shares, based on a total of 4,216,015,009 shares[31]. - The cash dividend payout ratio for 2017 is 27.74% of the consolidated net profit attributable to shareholders[165]. - The cash dividend distribution plan for 2017 is set at RMB 1.50 per 10 shares, totaling RMB 632,402,251.35[168]. - The company’s total distributable profit for 2017 was RMB 12,480,739,193.39[167].

Financial Performance - The company's operating revenue for the reporting period was approximately CNY 29.79 billion, representing a 7.20% increase compared to the same period last year[30]. - The net profit attributable to shareholders decreased by 20.94% to approximately CNY 1.13 billion, down from CNY 1.43 billion in the previous year[30]. - The net cash flow from operating activities fell by 29.26% to approximately CNY 986.70 million, compared to CNY 1.39 billion in the same period last year[30]. - The total assets at the end of the reporting period increased by 13.27% to approximately CNY 42.35 billion, up from CNY 37.39 billion at the end of the previous year[30]. - The net assets attributable to shareholders rose by 7.12% to approximately CNY 21.98 billion, compared to CNY 20.52 billion at the end of the previous year[30]. - The basic earnings per share decreased by 20.59% to CNY 0.27, down from CNY 0.34 in the previous year[30]. - The weighted average return on equity declined by 2.07 percentage points to 5.30% from 7.37% in the previous year[30]. - The company reported a non-operating loss of CNY 20,855,376.50, primarily due to significant losses from unpayable projects and biological assets[35]. - The company’s overall business structure has allowed it to mitigate risks and maintain growth despite challenges in the agricultural environment, with a focus on integrated development strategies[57]. Market Conditions and Risks - The average price of live pigs has entered a downward trend, influenced by increased supply from previous investments, which may impact the company's profit levels[9]. - The company faces risks from environmental policies that may force smaller farms to exit the market, potentially reducing feed business growth and livestock procurement[10]. - The H7N9 avian influenza outbreak has severely disrupted the poultry market, leading to significant price drops for poultry products[9]. - The company's financial performance is affected by macroeconomic conditions, with GDP growth slowing to 6.9% in the first half of 2017, impacting consumer demand and sales[6]. - Natural disasters and animal epidemics, such as the recent H7N9 outbreak, pose significant risks to production and market demand, impacting overall business operations[13][15]. - The fluctuation of feed raw material prices remains a critical concern, with recent trends showing a mixed outlook for corn and soybean meal prices[8]. - The company is increasingly affected by exchange rate fluctuations due to its significant overseas operations and global procurement of raw materials[16]. - The company faces risks related to talent acquisition in new business areas as it transitions to an integrated agricultural and food enterprise[17]. Business Strategy and Development - The company has initiated a transformation towards an integrated model of feed production, breeding, and slaughtering, actively investing in related food and sales projects[40]. - The company is exploring agricultural internet finance and expanding its guarantee business market[40]. - The company has implemented a plan to provide technical and information services to farmers, enhancing their efficiency and income[40]. - The company has established a pig production project in Shandong with a capacity of 1 million pigs, which is the largest breeding system in the country, focusing on automation and intensive production methods[44]. - The company is focusing on lean management and technological innovation to improve production indicators and breeding efficiency[43]. - The company has established over 50 enterprises in 20 countries across Asia, Europe, and Africa, integrating its business from feed to breeding and farming[53]. - The company is currently developing ecological pig farming projects in Yan'an, Yanchuan, and Zhidan, which are undergoing environmental impact assessment approvals[116]. - The company has committed to maintaining its shareholding structure and has adhered to its commitments regarding share trading restrictions since 2006[112]. Environmental and Regulatory Compliance - The company is recognized as a key pollutant discharge unit by environmental protection authorities[143]. - The total wastewater discharge for the company is 1,000 cubic meters per day, which complies with the urban water quality standards[144]. - The company reported a total COD discharge of 5.171 tons per year, with a concentration of 32.1 mg/l, which is below the standard limit of 60 mg/l[145]. - The ammonia nitrogen (NH3-N) discharge is 0.921 mg/l, totaling 0.158 tons per year, well within the permissible limit of 10 mg/l[145]. - The company has achieved a total phosphorus (TP) discharge of 2 mg/l, which is compliant with environmental regulations[144]. - The company’s wastewater treatment facilities have not exceeded the discharge limits for COD and ammonia nitrogen across various plants[145]. - The company is actively monitoring and managing its wastewater discharge to ensure compliance with environmental regulations[145]. - The company has installed new natural gas boilers, which are expected to reduce emissions of nitrogen oxides to 6.829 tons per year, below the 150 mg/L threshold[147]. Social Responsibility and Community Engagement - In the first half of 2017, the company invested 75 million CNY in poverty alleviation efforts, helping 381 registered impoverished individuals to escape poverty[139]. - The company released 6,700 pigs from its breeding programs, contributing to the poverty alleviation of 120 households[139]. - The company plans to invest over 2 billion CNY in a project aimed at high-efficiency pig farming in Liangshan Prefecture, which is expected to benefit over 5,000 impoverished households[142]. - The company has established 6 poverty alleviation projects in agricultural and forestry industries, with an investment of 1,057 million CNY[141]. - The company provided vocational training for 50 individuals, aiding them in securing employment[141]. Shareholder and Financial Management - The company did not distribute cash dividends or issue new shares in the first half of 2017, indicating a focus on reinvestment rather than immediate shareholder returns[111]. - The company held its annual shareholders' meeting on June 22, 2017, with a participation rate of 62.12%[110]. - The company reported no major litigation or arbitration matters during the reporting period[120]. - The company provided guarantees totaling 10,000万元 for Liaoning Qianxihe Food Co., Ltd. with a guarantee amount of 5,000万元[133]. - The company provided a guarantee of 500万元 for New Hope Singapore Private Limited with an actual guarantee amount of 91.41万元[133]. - The company provided a guarantee of 3,300万元 for New Hope Singapore Private Limited with an actual guarantee amount of 656.49万元[133]. - The company reported a total guarantee amount of 383,000 million with an actual guarantee of 78,263.74 million at the end of the reporting period[135]. - The company plans to issue up to RMB 3 billion in short-term financing bonds as per the acceptance notice from the China Interbank Market Dealers Association[153].

Financial Performance - Total assets increased by 9.14% to CNY 40,802,544,677.09 compared to the end of the previous year[5] - Operating revenue decreased by 2.87% to CNY 16,074,440,753.96 for the current period, while year-to-date revenue increased by 3.44% to CNY 45,862,934,692.84[5] - Net profit attributable to shareholders increased by 18.41% to CNY 808,491,932.26 for the current period, but decreased by 8.23% year-to-date to CNY 1,939,613,277.39[5] - Basic earnings per share rose by 11.76% to CNY 0.19 for the current period, while year-to-date earnings per share decreased by 9.80% to CNY 0.46[5] - The weighted average return on equity increased by 0.36 percentage points to 3.82% for the current period, while it decreased by 1.77 percentage points to 8.93% year-to-date[5] - The company reported a net cash flow from operating activities of CNY 1,879,175,971.47, which is a decrease of 8.72% year-to-date[5] Shareholder Information - The total number of shareholders at the end of the reporting period was 109,110[9] - The largest shareholder, Southern Hope Industry Co., Ltd., holds 29.08% of the shares, totaling 1,225,998,830 shares[9] - New Hope Group Co., Ltd. is the second-largest shareholder with a 23.71% stake, amounting to 999,669,474 shares[9] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[10] Asset and Liability Changes - The fair value of financial assets measured at fair value and recognized in profit or loss decreased by RMB 4.3455 million, a decline of 40.16%, mainly due to the sale of stocks by the company's subsidiary New Hope Liuhe Investment Co., Ltd.[13] - Accounts receivable increased by RMB 407.133 million, an increase of 84.32%, primarily due to the company's sales policy allowing certain credit sales to customers[13] - Other current assets increased by RMB 575.365 million, an increase of 141.58%, mainly due to the increase in purchased financial products by New Hope Liuhe Investment Co., Ltd.[13] - Short-term borrowings increased by RMB 2.6656 billion, an increase of 128.09%, primarily due to the increase in bank short-term loans[13] - The net cash flow from investing activities decreased by RMB 1.809768 billion, a decline of 475.13%, mainly due to the redemption of financial products by New Hope Liuhe Investment Co., Ltd.[14] Strategic Initiatives - The company plans to increase the registered capital of its financial company by RMB 500 million to enhance its capital strength[15] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2018[20] - A strategic acquisition is planned to enhance the company's technological capabilities, with an estimated investment of $50 million[20] - The company is committed to reducing operational costs by 8% through efficiency improvements in the supply chain[20] - Research and development expenditures increased by 12% to support innovation in product offerings[20] - The company aims to achieve a gross margin of 30% in the upcoming fiscal year, up from 28%[20] Environmental and Social Responsibility - The company is actively developing ecological pig farming projects in Yan'an and Yanchuan, with environmental assessments currently underway[24] - The company's subsidiaries have reported normal operation of pollution control facilities, with no significant environmental pollution incidents[24] - The company is committed to upgrading and replacing environmental protection equipment to comply with regulations and obtain necessary approvals[24] - The company is actively involved in social responsibility initiatives, including targeted poverty alleviation through pig farming in various regions[38] Compliance and Governance - New Hope Liuhe emphasized compliance with market trading fairness principles in all related party transactions[23] - The company confirmed that no related party transactions would occur that could harm the interests of shareholders[23] - The company will ensure that all related party transactions are conducted in accordance with national laws and regulations[23] - The company has not reported any violations regarding external guarantees during the reporting period[36] - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties during the reporting period[37] Investment and Financial Strategy - The total investment in securities at the end of the period amounted to 7,507 million CNY, with a net asset value of 1,981.8 million CNY[27] - The company reported a total of 1,874 million CNY in other securities investments, indicating a significant asset allocation strategy[27] - The company has a strategic focus on expanding its derivative investment portfolio, with various contracts set to mature between 2017 and 2019[29] - The report indicates a proactive approach to managing financial risks through the use of derivatives, with multiple contracts in place to hedge against interest rate fluctuations[29] - The company has implemented strict risk management strategies for commodity futures hedging, including controlling futures positions and funding scale[32] Future Outlook - The company provided a positive outlook for Q4 2017, projecting a revenue growth of 10% to 15%[20] - New product launches are expected to contribute an additional 5% to overall revenue in the next quarter[20] - Future outlook includes a commitment to innovation in product development and technology to drive growth in the coming quarters[27] - The company aims to improve operational efficiency and expand market reach through targeted investments and strategic initiatives[27]

Revenue and Profitability - In the first half of 2017, the company's revenue from pig farming exceeded 1 million heads, significantly contributing to overall revenue and profit[11]. - The company's operating revenue for the reporting period was CNY 29,788,493,938.88, representing a 7.20% increase compared to CNY 27,789,066,720.87 in the same period last year[32]. - The net profit attributable to shareholders of the listed company decreased by 20.94% to CNY 1,131,121,345.13 from CNY 1,430,707,386.15 in the previous year[32]. - The company achieved a consolidated revenue of CNY 2,978,849.39 million in the first half of 2017, an increase of CNY 199,942.72 million, representing a growth rate of 7.20%[59]. - The net profit attributable to shareholders was CNY 113,112.13 million, a decrease of CNY 29,958.61 million, with a decline rate of 20.94% due to the impact of H7N9 avian flu on poultry operations[59]. - The company reported a total profit for the current period of ¥1,582,347,910.76, down from ¥1,922,600,321.22, indicating a decrease of 17.7%[184]. - The company reported a net profit of approximately 139.20 million yuan from its subsidiary Sichuan New Hope Liuhe Agricultural and Animal Husbandry[92]. Costs and Expenses - The company's feed business remains a major revenue source, but raw material costs account for over 90% of total production costs, impacting profitability[9]. - The fluctuation of feed raw material prices, particularly corn and soybean meal, has created a relatively favorable operating environment in 2017, despite ongoing risks[9]. - The company’s feed raw material costs account for over 90% of total production costs, making it vulnerable to price fluctuations[97]. - The company has implemented measures to control costs and improve operational efficiency in response to economic challenges[97]. - Operating expenses increased by 7% to $1.2 billion, primarily due to higher marketing costs[199]. Market Conditions and Risks - The average price of live pigs has entered a downward trend, influenced by increased supply from previous investments, which may affect profit levels[11]. - The company faces risks from environmental policies leading to reduced livestock numbers, which could impact feed and slaughter business growth[12]. - The H7N9 avian flu outbreak has severely affected poultry prices, with prices dropping to historically low levels, impacting overall revenue[11]. - The company reported that the macroeconomic environment has shifted to a "new normal," with GDP growth slowing to 6.9% in the first half of 2017, affecting consumer demand[6]. - Natural disasters and animal epidemics pose ongoing risks to production, with recent events impacting operations and market demand[15][16]. - The company is experiencing risks due to slowing domestic economic growth, which may impact product sales and inventory pressure[95]. Strategic Initiatives and Investments - The company has initiated a transformation towards integrated feed-raising-slaughter projects, actively investing in and acquiring related food and sales projects[42]. - The company has launched the "Fuda Plan" to provide technical and information services to farmers, and is exploring agricultural internet finance[42]. - The company has established a dual breeding system with PIC and Haiboer, selecting suitable pig breeds based on regional market differences[46]. - The company has expanded its overseas investments in countries such as Vietnam, the Philippines, and Egypt, leading to significant growth in feed product sales and revenue[97]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[196]. Research and Development - The company has a strong R&D team with 42 PhDs and 396 master's degree holders, and has set up 16 R&D bases and 26 pilot bases[52]. - Research and development investments have increased by 10%, focusing on sustainable farming technologies[116]. - The company is investing in research and development to improve product quality and efficiency, with a budget allocation of 200 million yuan for 2017[198]. Financial Position - The total assets at the end of the reporting period increased by 13.27% to CNY 42,345,596,542.12 from CNY 37,385,039,593.82 at the end of the previous year[32]. - The net assets attributable to shareholders of the listed company rose by 7.12% to CNY 21,976,798,662.82 from CNY 20,515,428,379.29 at the end of the previous year[32]. - The company's cash and cash equivalents increased to ¥4.59 billion, representing 10.83% of total assets, up from 8.38% in the previous year[76]. - The company reported a total asset value of ¥42.34 billion, with a notable increase in cash reserves and investments in long-term equity[76]. - The company’s total share capital increased by 1.14% following the issuance of new shares[155]. Environmental and Social Responsibility - The company has committed to fulfilling its obligations as a shareholder and ensuring compliance with the Company Law and its articles of association[118]. - The company invested a total of 75 million RMB in poverty alleviation efforts, helping 381 registered impoverished individuals to escape poverty[141]. - The company has established six poverty alleviation projects focused on agricultural and forestry industries, with an investment of 1,057 million RMB[143]. - The company has committed to not engaging in any activities that would compete with its main business of pig breeding, pig farming, slaughtering, processing, and feed production[117]. Future Outlook - The company plans to expand its market presence by entering three new provinces in the next fiscal year, aiming for a 30% increase in market share[116]. - The company anticipates a 12% growth in overall sales for the next quarter, driven by seasonal demand[116]. - The company expects a revenue growth of 8% for the next fiscal year, driven by increased demand in key markets[196]. - Future outlook remains positive, with management expressing confidence in achieving set financial targets[198].

Revenue and Profit Performance - In 2016, the company's revenue from pig sales exceeded 1 million heads, significantly contributing to overall revenue and profit[14]. - The company's operating revenue for 2016 was ¥60,879,523,157.40, a decrease of 1.04% compared to 2015[43]. - Net profit attributable to shareholders was ¥2,469,066,513.75, representing an increase of 11.67% year-over-year[43]. - The net profit after deducting non-recurring gains and losses was ¥2,368,553,868.69, up 19.04% from the previous year[43]. - Basic earnings per share increased by 11.32% to ¥0.59 in 2016[43]. - The company achieved a net profit attributable to shareholders of 2,469,066,513.75 CNY, with a profit distribution plan proposing a cash dividend of 5.00 CNY per 10 shares, totaling 2,108,007,504.50 CNY[156]. - The cash dividend accounted for 100% of the total distributable profit of 12,688,325,156.22 CNY, indicating a strong commitment to returning value to shareholders[157]. Feed and Livestock Operations - The company's feed business remains a major revenue source, with raw material costs accounting for over 90% of total production costs[11]. - The company operates primarily in feed production, livestock breeding, slaughtering, and meat processing[54]. - Feed production maintained its position as the core business, with feed sales reaching 1,488.82 million tons, an increase of 39.39 million tons, or 2.72% year-on-year[80]. - The company has established over 410 pig farms under its service program, covering more than 180,000 sows and nearly 90,000 fattening pigs[142]. - The company has completed a capacity layout for 9 million heads of pigs, with an average PSY level of 26.8, leading the domestic market[81][82]. Market Expansion and International Operations - The company has expanded its overseas operations, establishing businesses in countries such as Vietnam, the Philippines, and South Africa, leading to noticeable growth in feed product sales and revenue[9]. - The company has established an overseas trading and investment center in Singapore since 2016 to manage risks associated with international raw material procurement and financing, focusing on centralized procurement and foreign exchange risk management[28]. - The company has expanded its international presence, operating in 20 countries across Asia, Europe, and Africa, and has signed strategic cooperation agreements with major European agricultural firms[71]. - The company plans to develop 10 million pigs over the next 3 to 5 years through a "company + family farm" model, having already established a capacity of 900,000 pigs in 2016[141]. Financial Management and Investment - The company has invested in a U.S. grain and energy trading firm to strengthen its raw material procurement capabilities and reduce the adverse effects of price volatility[12]. - The total investment amount for the reporting period reached ¥16,702,909,298.64, representing a 4.90% increase compared to ¥15,922,813,171.87 in the same period last year[116]. - The company reported a fair value change gain of ¥5,565,354.83 for financial assets during the period, with a total of ¥618,234,337.75 in purchases and ¥654,977,466.80 in sales[114]. - The company has established a risk management strategy for hedging operations, including strict control of futures positions and funding scale[126]. Challenges and Market Conditions - The overall GDP growth rate in China decreased to 6.7% in 2016, indicating a challenging economic environment that affects consumer demand and product sales[6]. - The implementation of strict environmental policies since 2014 has led to a decline in livestock farming, impacting the company's feed business growth and pig and poultry acquisition[17]. - The company faces risks in human resources due to the transition from a traditional agricultural enterprise to an integrated agricultural and food enterprise, particularly in recruiting high-quality management talent in new business areas[29]. - Natural disasters and extreme weather events pose significant risks to the company's operations, with the 2016 El Niño phenomenon leading to severe flooding in southern China[23]. Research and Development - The company has 16 R&D bases and 26 pilot bases, employing a team of 42 PhDs and 396 master's degree holders, enhancing its technological capabilities[68]. - The company conducted 12 research and development projects focused on functional feed technology, achieving significant advancements in feed utilization and livestock product safety[105]. - Research on antibiotic-free feed formulations resulted in nearly 40 experimental trials, collecting over 30,000 sets of effective technical data to support the development of non-residue livestock products[106]. Corporate Governance and Compliance - The company has adhered to its commitments regarding shareholding and competition, ensuring no conflicts of interest during the reporting period[158]. - The company has not engaged in any related party transactions during the reporting period[176]. - The company has received a total of 152 inquiries from various stakeholders regarding its operational and financial status during the reporting period[151]. Social Responsibility and Community Engagement - The company initiated poverty alleviation projects in multiple regions, directly benefiting over 300 impoverished households in 2016[195]. - The company provided financial guarantees for rural financing, with a cumulative guarantee loan of CNY 650 million, serving nearly 3,000 farming households[197]. - By the end of 2016, the company had helped 1,000 registered impoverished individuals escape poverty through various initiatives[198].