[Important Notice](index=2&type=section&id=Section%201.%20Important%20Notice) [Management Statement](index=2&type=section&id=Guarantee%20by%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The board, supervisory board, and senior management affirm the report's truthfulness and completeness, with key executives also guaranteeing financial statement accuracy - The company's board of directors, supervisory board, and senior management guarantee the report's content is true, accurate, and complete, free from false records, misleading statements, or major omissions[2](index=2&type=chunk) - Company head Lin Feng, chief accountant Wang Yonghong, and head of accounting department Xiong Zhuolin declare that the financial statements in the quarterly report are true, accurate, and complete[2](index=2&type=chunk) [Company Profile](index=3&type=section&id=Section%202.%20Company%20Profile) [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Q1 2021 saw a 78.07% revenue increase, but net profit attributable to shareholders dropped 76.63%, with operating cash flow at -3.66 billion RMB and total assets up 17.67% | Item | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 12,705,330,076.23 | 7,134,956,714.87 | 78.07% | | Net Profit Attributable to Shareholders (RMB) | 211,639,955.91 | 905,617,024.79 | -76.63% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (RMB) | 686,985,526.90 | 996,462,730.32 | -31.06% | | Net Cash Flow from Operating Activities (RMB) | -3,657,782,405.25 | -1,938,920,258.02 | -88.65% | | Basic Earnings Per Share (RMB/share) | 0.07 | 0.36 | -80.56% | | Weighted Average Return on Net Assets | 0.89% | 9.20% | -8.31% | | Total Assets (RMB) | 69,729,793,156.28 | 59,259,566,548.38 (Beginning of Period) | 17.67% (vs. Beginning of Period) | | Net Assets Attributable to Shareholders (RMB) | 23,755,667,155.80 | 23,252,100,795.55 (Beginning of Period) | 2.17% (vs. Beginning of Period) | - During the reporting period, total non-recurring gains and losses amounted to **-475 million RMB**, primarily consisting of **-522 million RMB** from disposal of non-current assets[4](index=4&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period-End) As of the period-end, the company had 148,209 common shareholders, with the top two holding 46.54% and significant pledges, and some top ten shareholders having related party ties - At the end of the reporting period, the company had **148,209** common shareholders[6](index=6&type=chunk) | Shareholder Name | Shareholding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | | Zhengda Group Co., Ltd. | 24.76% | 779,677,352 | Pledged 544,761,397 | | Jiangxi Yonglian Agricultural Holdings Co., Ltd. | 21.78% | 685,826,602 | Pledged 452,371,280 | | LIEW KENNETH THOW JIUN | 5.39% | 169,636,419 | - | | Gongqingcheng Bangding Investment Co., Ltd. | 2.41% | 75,987,841 | Pledged 75,987,841 | - Among the top ten shareholders, Zhengda Group Co., Ltd., Jiangxi Yonglian Agricultural Holdings Co., Ltd., Gongqingcheng Bangding Investment Co., Ltd., and Gongqingcheng Bangyou Investment Co., Ltd. are controlled by the same ultimate beneficial owner and have related party relationships[7](index=7&type=chunk) [Significant Events](index=6&type=section&id=Section%203.%20Significant%20Events) [Changes in Key Financial Data and Reasons](index=6&type=section&id=I.%20Changes%20in%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period%20and%20Reasons) Financial changes were driven by rapid expansion, with revenue up 78.07% from hog sales, significant increases in inventory and construction in progress, and a sharp decline in operating cash flow due to higher raw material payments - Operating revenue increased by **78.07%** year-on-year, primarily due to the expansion of hog farming scale and increased sales volume[10](index=10&type=chunk) - Inventory increased by **53.00%** from the beginning of the period, mainly due to the expansion of the company's production and operation scale and an increase in consumable biological assets[10](index=10&type=chunk) - Construction in progress increased by **111.41%** from the beginning of the period, primarily due to increased payments for engineering projects during the current period[10](index=10&type=chunk) - Net cash flow from operating activities decreased by **88.65%** year-on-year, mainly due to increased payments for raw material purchases[10](index=10&type=chunk) [Progress of Significant Events](index=6&type=section&id=II.%20Analysis%20and%20Explanation%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company advanced capital operations and incentive plans, including stock option grants, employee stock purchases, and the listing of new A-shares, while establishing three industrial funds and noting high share pledges by the controlling shareholder - The company implemented the 2021 stock option and restricted stock incentive plan, completing the initial grant registration, awarding **50.91 million** restricted shares to 1,800 individuals and **24.22 million** stock options to 1,560 individuals[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - The company completed the stock purchase for the first phase of its employee stock ownership plan, acquiring a cumulative **12,027,140** shares, representing **0.39%** of the total share capital[14](index=14&type=chunk) - Newly issued shares from the company's 2020 non-public offering of A-shares were listed on **February 1, 2021**[16](index=16&type=chunk) - The company, through its wholly-owned subsidiaries, participated in establishing three industrial investment funds: Anhui Guoyuan Zhengda, Guangdong Hengbang, and Jiangsu Qiequan Bangyu, all of which have completed industrial and commercial registration[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - As of **March 31, 2021**, controlling shareholder Zhengda Group and its concerted parties had cumulatively pledged **68.84%** of their total shares, representing **34.86%** of the company's total share capital[22](index=22&type=chunk) [Financial Asset Investments](index=11&type=section&id=IV.%20Financial%20Asset%20Investments) The company made no securities investments but engaged in minimal live hog futures trading for hedging familiarity, with a 2 million RMB investment and a 400 RMB gain, deeming risks controllable - The company had no securities investments during the reporting period[25](index=25&type=chunk) | Investment Type | Initial Investment Amount (Million RMB) | Amount Purchased During Reporting Period (Million RMB) | Amount Sold During Reporting Period (Million RMB) | Period-End Investment Amount (Million RMB) | Actual Gain/Loss During Reporting Period (Million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Live Hog Futures | 0.2 | 0.18876 | 0.18880 | 0 | 0.00004 | - The primary purpose of the company's derivative investments is to familiarize itself with internal hedging operational procedures in preparation for future large-scale participation, with main risks being price and liquidity risks[26](index=26&type=chunk) [Use of Raised Funds](index=12&type=section&id=V.%20Progress%20of%20Raised%20Fund%20Investment%20Projects) As of March 31, 2021, the company continued investing raised funds, completing 2016 projects with surplus funds for working capital, while 2018 and 2020 funds are mostly in project construction, with some temporarily supplementing working capital - The 2016 non-public offering fundraising projects are complete, with **137 million RMB** in remaining funds permanently used to supplement working capital[27](index=27&type=chunk) - Approximately **800 million RMB** from the 2018 non-public offering has been cumulatively invested, with **178 million RMB** temporarily used to supplement working capital[28](index=28&type=chunk) - A cumulative **394 million RMB** from the 2020 convertible bond offering has been invested, with **1.16 billion RMB** temporarily used to supplement working capital[28](index=28&type=chunk) - During the reporting period, **1.75 billion RMB** from the 2020 non-public offering was invested, with cumulative investments reaching **4.75 billion RMB** and a remaining balance of **2.73 billion RMB**[28](index=28&type=chunk) [Investor Relations Activities](index=14&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) In Q1 2021, the company held three investor relations events via phone and roadshow, discussing monthly sales, hog release pace, and breeding pig conditions with various institutions | Reception Date | Reception Method | Reception Object | Main Discussion Content | | :--- | :--- | :--- | :--- | | 2021年01月07日 | Phone Communication | Changjiang Securities, China Merchants Fund, etc. | Monthly sales analysis, etc. | | 2021年01月29日 | Phone Communication | Yinhua Fund, Changxin Fund, etc. | Hog release pace, etc. | | 2021年03月10日 | Roadshow Event | Qianhai Kaiyuan Fund, E Fund, etc. | Breeding pig conditions, etc. | [Financial Statements](index=15&type=section&id=Section%204.%20Financial%20Statements) [Consolidated Balance Sheet](index=15&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2021, total assets grew 17.67% to 69.73 billion RMB, driven by prepayments, inventory, and construction in progress, while total liabilities rose 28.78% to 44.69 billion RMB, mainly from notes and accounts payable | Item | March 31, 2021 (RMB) | December 31, 2020 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 69,729,793,156.28 | 59,259,566,548.38 | +17.67% | | Total Liabilities | 44,690,347,878.72 | 34,701,465,987.35 | +28.78% | | Total Equity Attributable to Parent Company Owners | 23,755,667,155.80 | 23,252,100,795.55 | +2.17% | - Asset expansion was significant, with inventory (primarily consumable biological assets) increasing from **13.45 billion RMB** to **20.58 billion RMB**, and construction in progress rising from **1.19 billion RMB** to **2.52 billion RMB**[33](index=33&type=chunk)[34](index=34&type=chunk) - Liability growth was primarily driven by operating liabilities, with notes payable surging from **1.04 billion RMB** to **5.37 billion RMB**, and accounts payable increasing from **3.44 billion RMB** to **5.15 billion RMB**[34](index=34&type=chunk) [Consolidated Income Statement](index=20&type=section&id=3.%20Consolidated%20Income%20Statement) Q1 2021 saw total operating revenue rise 78.07% to 12.71 billion RMB, but total operating costs surged 97.14%, including a 180.41% increase in management expenses, leading to a 76.63% drop in net profit attributable to parent company shareholders | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 12,705,330,076.23 | 7,134,956,714.87 | +78.07% | | II. Total Operating Costs | 12,081,940,388.11 | 6,128,619,350.73 | +97.14% | | Including: Operating Costs | 10,166,640,668.32 | 5,325,722,670.80 | +90.89% | | Management Expenses | 1,361,557,218.66 | 485,561,760.16 | +180.41% | | III. Operating Profit | 704,040,311.23 | 1,012,769,996.76 | -30.48% | | V. Net Profit | 223,745,820.13 | 920,927,345.43 | -75.70% | | Net Profit Attributable to Parent Company Shareholders | 211,639,955.91 | 905,617,024.79 | -76.63% | [Consolidated Cash Flow Statement](index=25&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) Q1 2021 saw tight cash flow, with operating activities at -3.66 billion RMB due to increased payments, investing activities at -1.45 billion RMB, and a 5.12 billion RMB decrease in period-end cash and cash equivalents | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -3,657,782,405.25 | -1,938,920,258.02 | | Net Cash Flow from Investing Activities | -1,453,855,109.54 | -310,551,814.35 | | Net Cash Flow from Financing Activities | -10,806,293.99 | 3,123,896,161.89 | | Net Increase in Cash and Cash Equivalents | -5,122,469,867.87 | 874,409,030.11 | - Total cash outflow from operating activities was **20.08 billion RMB**, with **14.47 billion RMB** attributed to 'cash paid for goods and services,' which was the primary reason for negative operating cash flow[48](index=48&type=chunk) [Explanation of Financial Statement Adjustments](index=29&type=section&id=II.%20Explanation%20of%20Financial%20Statement%20Adjustments) Effective January 1, 2021, the company adopted new lease standards, retrospectively adjusting financial statements to recognize right-of-use assets and lease liabilities, and adjusting related accounts without restating prior comparative data - The company first adopted the new lease accounting standards effective **January 1, 2021**, and adjusted the financial statements at the beginning of the current period[52](index=52&type=chunk) | Adjustment Item (Consolidated Statement) | Before Adjustment (Dec 31, 2020) | After Adjustment (Jan 1, 2021) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 0 | 3,687,671,414.20 | +3,687,671,414.20 | | Long-term Deferred Expenses | 1,741,445,974.16 | 515,389,327.39 | -1,226,056,646.77 | | Lease Liabilities | 0 | 2,461,614,767.43 | +2,461,614,767.43 | [Audit Report](index=33&type=section&id=III.%20Audit%20Report) The company's 2021 first-quarter report remains unaudited - The company's first-quarter report is unaudited[58](index=58&type=chunk)

江西正邦科技股份有限公司 2020 年半年度报告全文 江西正邦科技股份有限公司 2020 年半年度报告 2020 年 08 月 1 江西正邦科技股份有限公司 2020 年半年度报告全文 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、高级管理人员保证半年度报告内容的 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。 公司负责人程凡贵、主管会计工作负责人王永红及会计机构负责人(会计主 管人员)熊卓琳声明：保证本半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 | --- | |------------------------------------------------------------------------| | | | 公司可能面临的风险因素：疫情风险、食品安全风险、自然灾害风险、生 | | 猪和猪肉价格波动对公司盈利能力带来的风险、分子公司管控模式的风险、公 | | 司租赁经营的风险、产业政策风险、公司债偿付 ...

Financial Performance - The company's operating revenue for 2019 was ¥24.52 billion, an increase of 10.87% compared to ¥22.11 billion in 2018[18]. - The net profit attributable to shareholders for 2019 reached ¥1.65 billion, a significant increase of 751.53% from ¥193.42 million in 2018[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥1.04 billion, up 368.60% from ¥222.76 million in 2018[18]. - The net cash flow from operating activities was ¥3.92 billion, representing a 194.85% increase from ¥1.33 billion in 2018[19]. - The basic earnings per share for 2019 was ¥0.6857, a rise of 757.13% compared to ¥0.08 in 2018[19]. - The total assets at the end of 2019 were ¥30.83 billion, an increase of 44.58% from ¥21.33 billion at the end of 2018[19]. - The net assets attributable to shareholders at the end of 2019 were ¥9.39 billion, up 44.99% from ¥6.48 billion at the end of 2018[19]. - The company reported a total of 578.40 million pigs sold in 2019, ranking third among A-share listed companies in the pig farming sector[29]. - In 2019, the company achieved a total sales revenue of 24.518 billion yuan, an increase of 10.87% year-on-year, and a net profit attributable to shareholders of 1.647 billion yuan, up 751.53% year-on-year[73]. Dividend Policy - The company reported a cash dividend of 0.7 RMB per 10 shares (including tax) for the profit distribution plan[6]. - The proposed dividend for 2019 is 0.70 CNY per 10 shares (including tax), with a total cash dividend amounting to 175,423,927.77 CNY[175]. - The cash dividend for 2018 was 94,873,469.56 CNY, which represented 49.05% of the net profit attributable to ordinary shareholders[175]. - The company plans to maintain its dividend distribution strategy, adjusting the payout based on the total share capital at the time of distribution[170]. - The company has consistently maintained a positive distributable profit for ordinary shareholders over the past three years[175]. - The cash dividend distribution plan aligns with the company's disclosed shareholder return strategy and articles of association[177]. Business Operations - The company has not changed its main business operations since its listing, focusing on the production and sales of animal feed and breeding[17]. - The company’s business scope includes the production and sales of animal feed, premixes, and feed additives[17]. - The company has developed a comprehensive animal husbandry industry chain, integrating feed, veterinary medicine, and pig breeding to mitigate the impact of cyclical fluctuations in individual business segments[31]. - The feed business has adopted a combination of distributor, direct sales, and farm management models to enhance customer loyalty and product value[31]. - The company is focusing on expanding its market presence through innovative service models in pig farming, such as the "company + farmer" cooperative breeding model[33]. Risk Management - The company faces various risks including pandemic risk, food safety risk, and price fluctuations of live pigs and pork, which may impact profitability[5]. - The company emphasizes the importance of risk awareness for investors regarding future plans and forecasts[5]. - The company has established a comprehensive biosecurity management system, including a multi-layer control system and strict monitoring protocols, to ensure rapid development in pig farming despite adverse market conditions[58]. - The company has established a dedicated African swine fever prevention management team and a comprehensive biosecurity system to mitigate risks associated with pig farming[160]. - The company emphasizes food safety as a core value, implementing strict management practices throughout the production process to ensure product safety[160]. Market Trends - The overall concentration of the pig farming industry is increasing, with large-scale farms gaining market share despite the decline in small-scale farmers[40]. - The market share of the top 10 listed pig farming companies in China increased from 3.84% in 2016 to 8.54% in 2019, with a year-on-year increase of approximately 1.48 percentage points despite the African swine fever outbreak[43]. - The feed production industry in China saw a 3.7% decline in industrial feed output, with pig feed production dropping by 26.6%[36]. - The current pig farming cycle is expected to last longer and see higher price increases due to the ongoing impact of the African swine fever epidemic[45]. Investment and Expansion - The company has completed a capital increase of 1,000,000,000 CNY, fully funded by its own resources, for the breeding and sales of pigs and related services[112]. - The company plans to expand pig output to between 9 million and 11 million heads in 2020, indicating a strong growth outlook[75]. - The company is focusing on expanding its breeding capacity and optimizing its project implementation layout to promote growth in the pig farming business[125]. - The company plans to use up to CNY 39,500 million of idle funds for temporary working capital, with a repayment period not exceeding 12 months[120]. Research and Development - The company reported a significant increase in R&D investment, amounting to ¥394.32 million, representing an 89.07% increase compared to the previous year[101]. - R&D expenses accounted for 1.61% of total revenue, up from 0.94% in the previous year, indicating a strategic focus on innovation[101]. - The company is focusing on research and development to enhance product competitiveness and contribute to healthy farming practices and food safety[140]. Corporate Governance - The company has committed to ensuring the repayment of debts to avoid defaults and maintain control stability[186]. - The company has established a commitment to avoid any competition with its controlling shareholder in similar business areas[183]. - The company will ensure that the net proceeds from the non-public offering are used strictly according to the resolutions passed at the shareholders' meeting[182]. - The company has pledged to maintain transparency and accuracy in its information disclosure to protect investors' rights[183].