Group 1: Industry Trends - The number of breeding chickens in the country has been declining for three consecutive years, leading to significant industry capacity reduction and inventory destocking effects [2] - By the end of 2017, the total stock of parent stock and production volume had significantly decreased compared to the beginning of the year, severely impacting the breeding enthusiasm of parent stock farms [2] - The phenomenon of early elimination is evident, with a significant supply gap expected in the industry in 2018 [3] Group 2: Company Management Strategies - In 2018, the company will continue to enhance management efficiency and reduce management costs [3] - The company aims to strengthen strategic investments in Agriculture 4.0, promoting management intelligence, production automation, and systematic food safety [3] - The goal is to achieve smart production and scientific management, creating an upgraded version of Chinese agricultural breeding while effectively lowering production and operational costs [3]

Group 1: Industry Trends - Since the beginning of 2018, the supply and demand in the industry have continuously improved, with a noticeable contraction in supply and strong rigid demand, leading to a significant increase in chicken prices compared to last year [2][3] Group 2: Company Management and Strategy - In 2018, the company has been strengthening the implementation of its agricultural breeding 4.0 strategy, promoting intelligent management, production automation, environmental safety standards, and a systematic food safety framework [3] - The company has enhanced internal control and proposed effective performance evaluation mechanism adjustments, resulting in a significant improvement in management efficiency and further optimization of production operations, with noticeable improvements in key production indicators and effective cost reduction [3]

Group 1: Industry Outlook - The white feather broiler industry is experiencing a significant supply shortage due to a substantial decline in grandparent stock breeding in recent years, which is expected to maintain a high level of prosperity in 2019 due to this supply shortage [2] - The growth cycle of white feather broilers indicates that the situation is unlikely to reverse in the short term [2] Group 2: Production Development Goals - The company aims to fully implement the Agricultural Breeding 4.0 strategy while enhancing internal controls and promoting cost reduction and efficiency improvement plans [3] - The company plans to expand production capacity through mergers and acquisitions to integrate high-quality domestic resources, thereby increasing market share and competitiveness [3] - The goal is to extend the industry chain beyond Fujian and establish a national presence [3]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.5 billion RMB for the year, representing a growth of 20% compared to the previous year[21]. - The company's operating revenue for 2021 was ¥14.48 billion, an increase of 5.34% compared to ¥13.74 billion in 2020[27]. - The net profit attributable to shareholders for 2021 was ¥448.24 million, a significant decrease of 78.04% from ¥2.04 billion in 2020[27]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥364.27 million, down 82.08% from ¥2.03 billion in 2020[27]. - The basic earnings per share for 2021 was ¥0.3619, a decrease of 77.97% from ¥1.6431 in 2020[27]. - The net cash flow from operating activities was ¥1.84 billion, a decline of 43.09% compared to ¥3.24 billion in 2020[27]. - The company reported a quarterly operating revenue of ¥4.01 billion in Q4 2021, showing a steady increase throughout the year[31]. - The average net profit attributable to shareholders in Q4 2021 was ¥79.77 million, indicating fluctuations in quarterly performance[31]. Investment and Expansion Plans - In 2021, the company achieved capital expenditures of 1.564 billion CNY, covering various projects across the entire industry chain, including multiple new broiler chicken farms and food processing plants[4]. - The company plans to invest in new breeding farms and food processing plants in 2022 to further enhance production capacity and output[6]. - The company plans to invest 300 million RMB in technology upgrades to improve production efficiency and reduce feed conversion rates by 5%[21]. - The company is exploring potential acquisitions to enhance its supply chain capabilities and expand its product offerings[21]. - The company plans to expand production capacity by constructing multiple breeding farms and food processing plants, with the new chicken processing plant expected to process 90 million chickens annually[126]. Market and Product Development - The company successfully launched two retail products, "Crispy Fried Chicken" and "Dudu Wings," each achieving monthly sales exceeding 10 million CNY[4]. - New product development includes the launch of a premium organic chicken line, expected to contribute an additional 200 million RMB in revenue[21]. - The company launched 58 new products in 2021, resulting in a sales revenue of 907 million yuan, with a compound annual growth rate of approximately 29% from 2014 to 2021[75]. - The company’s C-end business has seen a compound annual growth rate (CAGR) of over 70% in the past three years, with online and new retail business growing at a CAGR of approximately 300%[7]. - C-end sales revenue exceeded ¥1 billion, increasing its share of the food processing segment from approximately 7% in 2019 to over 15% in 2021[76]. Operational Efficiency and Cost Management - The implementation of a digital management system is projected to improve operational efficiency by 20% over the next two years[21]. - The company has established 12 special teams to optimize costs in various areas, including feed costs and energy management[128]. - The company achieved a profit increase of approximately 280 million yuan through management improvements, excluding market fluctuations[74]. - The company aims to achieve a feed conversion rate of 1.6 kg of feed per kg of meat produced, a reduction from the current rate of 1.7 kg[21]. Corporate Governance and Compliance - The company adheres to strict corporate governance standards, continuously improving its governance structure and internal control systems[137]. - The board of directors consists of nine members, including three independent directors, ensuring compliance with legal and regulatory requirements[141]. - The company maintains independence from its controlling shareholder, with no instances of fund occupation or guarantees provided to the controlling shareholder[140]. - The company has established a robust internal audit system to monitor compliance and improve operational efficiency[145]. - The company ensures transparent information disclosure, providing equal access to information for all shareholders and maintaining open communication with investors[146]. Employee Development and Training - The total number of employees at the end of the reporting period was 24,347, with 10,227 from the parent company and 14,120 from major subsidiaries[195]. - The company completed over 30 offline training projects in 2021, with more than 300 training sessions and over 10,000 participants[198]. - The company has established a comprehensive and effective compensation management system to encourage and retain key talent[196]. - The company implemented a performance evaluation scheme in 2021, promoting goal management to enhance employee motivation[197]. - The training system is divided into pre-job and on-the-job training, focusing on organizational development and training execution[199]. Risk Management - The company faces risks from fluctuations in raw material prices, primarily corn and soybean meal, which can significantly impact profitability due to unpredictable market conditions[133]. - The company has implemented a strategy to purchase raw materials in bulk during low price periods to stabilize procurement costs throughout the year[133]. - The company has a comprehensive disease prevention system in place, leveraging nearly 40 years of experience in poultry farming to mitigate risks from avian influenza and other diseases[134]. - The company has established a standardized control system for breeding and processing, ensuring compliance with national and internal disease prevention measures[134]. Financial Position and Cash Flow - The company reported a net cash flow from operating activities of 1.843 billion yuan during the reporting period, with financing costs below 3%[69]. - The net cash flow from operating activities decreased by 43.09% to ¥1,842,563,426.53 in 2021 from ¥3,237,507,648.21 in 2020[96]. - The net increase in cash and cash equivalents was ¥177,534,559.45 in 2021, a 120.50% improvement compared to a decrease of ¥866,017,507.06 in 2020[96]. - The total assets at the end of 2021 were ¥17.04 billion, an increase of 14.16% from ¥14.93 billion at the end of 2020[27]. - The total cost of main business for the poultry segment in 2021 was ¥850,667.07 million, compared to ¥728,622.07 million in 2020, indicating a significant increase[86].