Financial Performance - The company's revenue for Q3 2022 reached ¥32,629,430,328.87, representing a 24.91% increase year-over-year[3] - Net profit attributable to shareholders was ¥1,183,217,063.14, a significant increase of 453.20% compared to the same period last year[3] - Total operating revenue for the current period reached ¥78,954,942,042.13, an increase of 22.8% compared to ¥64,313,902,856.38 in the previous period[22] - Net profit for the current period was ¥2,282,322,443.32, representing a 15.9% increase from ¥1,967,483,737.74 in the same period last year[23] - Basic earnings per share increased to ¥1.27 from ¥1.06, reflecting a growth of 19.8%[24] - The company reported a basic earnings per share of ¥0.72, up 453.85% from the same period last year[3] - The company reported a total comprehensive income of ¥2,199,837,790.22, an increase from ¥1,971,279,818.87 in the same period last year[24] Cash Flow - The net cash flow from operating activities for the year-to-date period was ¥6,238,431,567.27, reflecting a 177.03% increase year-over-year[3] - The net cash flow from operating activities for Q3 2022 was ¥6,238,431,567.27, a significant increase from ¥2,251,937,435.67 in Q3 2021, representing a growth of approximately 176.7%[26] - Total cash inflow from operating activities reached ¥79,434,621,040.06, compared to ¥64,254,033,513.47 in the same period last year, indicating a year-over-year increase of about 23.6%[26] - Cash outflow for purchasing goods and services was ¥67,025,810,637.76, up from ¥56,681,788,948.55, reflecting an increase of approximately 18.2%[26] - The net cash flow from financing activities improved to ¥2,864,497,011.72, compared to ¥1,924,922,885.42 in Q3 2021, marking an increase of approximately 48.9%[27] - The ending balance of cash and cash equivalents was ¥4,820,385,022.85, up from ¥2,702,679,591.41 at the end of Q3 2021, indicating a growth of about 78.5%[27] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥47,411,876,888.81, which is a 33.00% increase from the end of the previous year[3] - The company's total assets reached CNY 47.41 billion, a significant increase from CNY 35.65 billion at the beginning of the year, representing a growth of approximately 33.3%[20] - The company's total liabilities reached CNY 29.52 billion, compared to CNY 19.72 billion at the beginning of the year, representing an increase of approximately 49.8%[21] - The equity attributable to shareholders of the parent company increased to CNY 16.36 billion, up from CNY 14.46 billion, reflecting a growth of about 13.2%[21] Shareholder Information - The total number of common shareholders at the end of the reporting period is 19,172, with the largest shareholder holding 54.80% of shares[10] - The largest shareholder, Guangzhou Haihao Investment Co., Ltd., holds 910,369,359 shares[12] - The second-largest shareholder, Hong Kong Central Clearing Limited, holds 82,730,937 shares, representing 4.98% of the total[12] - The company has a total of 1,027.21 million shares in its repurchase account, which are not included in the top ten unrestricted shareholders[11] - The company has not disclosed any related party relationships among the top ten shareholders[11] Operational Metrics - The company experienced a 170.38% increase in accounts receivable compared to the previous year, driven by business growth and seasonal demand[7] - The company reported a 50.44% increase in financial expenses, attributed to the expansion of operations and increased borrowing costs[8] - The company's short-term borrowings increased by 56.91% due to expanded production and operational scale[8] - The company's non-current assets totaled CNY 22.66 billion, an increase from CNY 19.55 billion, indicating a growth of approximately 10.8%[20] - Inventory levels rose to CNY 9.98 billion, up from CNY 8.92 billion, marking an increase of about 11.9%[19] Research and Development - Research and development expenses for the current period were ¥512,202,370.03, up 23.3% from ¥415,263,708.15 in the previous period[23] Stock Options and Incentives - The stock option incentive plan approved on May 20, 2021, allows for the granting of 47,953,200 stock options to 4,003 eligible participants[14] - The exercise price for the stock options was adjusted from RMB 59.68 to RMB 59.36 due to the implementation of the 2020 equity distribution[14] - The company’s stock option incentive plan is not expected to have a significant impact on its financial condition and operating results during the reporting period and in the future[15]

Risk Management - The company reported significant risks related to abnormal weather affecting the feed industry, which could lead to fluctuations in livestock numbers and feed demand [2]. - The ongoing COVID-19 pandemic has caused disruptions in operations, impacting the livestock and feed sectors due to reduced consumer demand and operational challenges [4]. - The company has a comprehensive strategy to mitigate risks from animal diseases, including a diverse range of feed products and a strict disease prevention system [5]. - Fluctuations in raw material prices, particularly for corn and soybean meal, pose a risk to feed and farming costs, necessitating strategic procurement and risk management [6]. - The company is closely monitoring raw material market trends to optimize procurement strategies and manage costs effectively [6]. - The company is actively managing foreign exchange risks by carefully selecting settlement currencies and using financial instruments to hedge against currency fluctuations [9]. - The company has implemented measures to control exchange rate risks through careful selection of settlement currencies and the use of financial instruments like forward contracts [80]. - The company has established a comprehensive risk management system for its hedging activities, ensuring compliance with national laws and regulations [62]. Financial Performance - The company's operating revenue for the first half of 2022 was CNY 46.33 billion, an increase of 21.30% compared to CNY 38.19 billion in the same period last year [19]. - The net profit attributable to shareholders decreased by 40.07% to CNY 918.53 million from CNY 1.53 billion year-on-year [19]. - The net cash flow from operating activities increased significantly by 309.88% to CNY 2.38 billion, compared to CNY 580.30 million in the previous year [19]. - Total assets at the end of the reporting period reached CNY 43.39 billion, up 21.71% from CNY 35.65 billion at the end of the previous year [19]. - The net profit margin decreased, with a weighted average return on equity of 6.15%, down from 10.68% in the previous year [19]. - The company’s revenue from non-operating income was reported at 13.42 million, after accounting for tax and minority interests [24]. - The company’s trading business for bulk raw materials achieved revenue of 4.208 billion yuan, a year-on-year growth of 33.12% [40]. - The company reported a total investment amount of 44,731.17 million yuan in derivative investments by the end of the reporting period, representing 2.68% of the company's net assets [61]. Research and Development - The company has invested heavily in research and development, with over 3,000 personnel dedicated to improving animal nutrition and feed formulation technology [6]. - The company has increased its investment in research and development, particularly in key technologies for microbial fermentation feed and alternatives to feed antibiotics [19]. - Research and development investment reached 330 million yuan, a nearly 40% increase year-on-year, focusing on seven major research directions [41]. - The company has a robust R&D team of over 3,000 people, investing heavily in research across seven key areas, ensuring rapid transformation of technological achievements into production capabilities [44]. Market Dynamics - New environmental regulations are reshaping the livestock industry, leading to the exit of smaller, non-compliant producers and impacting feed market dynamics [7]. - The feed industry is currently undergoing a consolidation phase, with 39 enterprises producing over one million tons annually, indicating a trend towards larger, more competitive firms [26]. - The company has expanded its market presence in Southeast Asia, Africa, and South America, positioning itself among the top ten global feed enterprises in terms of production and sales scale [30]. - The livestock industry in China saw a production increase of 16.3% in 2021, with pork production rising by 28.8% [25]. - The market for animal health products is expected to grow significantly, driven by rising consumer demand for health, safety, and green farming practices [27]. Operational Strategies - The company has expanded its factory layout across major aquaculture regions in China and Southeast Asia to mitigate risks from localized disruptions [3]. - The company emphasizes enhancing service capabilities for farmers through integrated solutions, which helps improve their resilience against risks [3]. - The company is focusing on expanding its production capacity in resource-rich areas to capture market share in new farming regions [19]. - The company has established a comprehensive aquaculture industry chain and is gradually building a livestock and poultry industry chain, focusing on feed, quality animal seedlings, animal health products, and pig farming [31]. - The company has adopted a dual procurement strategy for raw materials, combining centralized purchasing of bulk commodities with local sourcing to manage procurement risks effectively [77]. Environmental Compliance - The company has implemented various pollution control technologies, including wet dust removal and activated carbon adsorption, to ensure compliance with emission standards [95]. - The wastewater treatment process includes A/O and AAO technologies, achieving compliance before discharge [95]. - The company has established environmental emergency response plans in accordance with national laws to mitigate risks from environmental incidents [97]. - The company has maintained effective operation of pollution control facilities across all key subsidiaries [95]. - The company faced a fine of 50,000 yuan for violating air pollution prevention regulations, with no significant adverse impact on operations [98]. Shareholder Engagement - The company held its 2021 Annual General Meeting with a participation rate of 64.32% on May 9, 2022 [81]. - The first interim shareholders' meeting of 2022 had a participation rate of 73.18% on May 16, 2022 [81]. - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period [84]. - The company has implemented multiple equity incentive plans to align the interests of management and shareholders, ensuring the execution of its strategic goals [48]. Challenges and Outlook - The company anticipates increased competition pressure and challenges in the feed industry due to rising raw material costs and declining consumer demand [36]. - The company is facing challenges in meeting expected production volumes due to rising raw material prices and pandemic-related impacts [66]. - The company has experienced fluctuations in demand for feed due to external factors such as weather and disease outbreaks, necessitating agile responses to market conditions [76]. - The company is closely monitoring the impact of environmental regulations on the livestock industry, adjusting its production capacity and market strategies accordingly [79].

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥46.33 billion, representing a 21.30% increase compared to ¥38.19 billion in the same period last year[19]. - The net profit attributable to shareholders decreased by 40.07% to approximately ¥918.53 million, down from ¥1.53 billion in the previous year[19]. - The net profit after deducting non-recurring gains and losses also fell by 39.53% to approximately ¥905.11 million, compared to ¥1.50 billion in the same period last year[19]. - The net cash flow from operating activities surged by 309.88% to approximately ¥2.38 billion, up from ¥580.30 million in the previous year[19]. - Total assets increased by 21.71% to approximately ¥43.39 billion, compared to ¥35.65 billion at the end of the previous year[19]. - The net assets attributable to shareholders rose by 5.17% to approximately ¥15.21 billion, compared to ¥14.46 billion at the end of the previous year[19]. - The company's revenue for the reporting period reached ¥46,325,511,713.26, representing a year-on-year increase of 21.30% compared to ¥38,191,235,359.27 in the same period last year[49]. - Operating costs increased by 23.81% to ¥42,266,923,964.54 from ¥34,137,214,209.10, primarily due to expanded business scale and rising raw material prices[50]. - The gross profit margin for the reporting period was impacted by rising costs, with management expenses increasing by 34.85% to ¥1,182,637,916.29[50]. - The company reported a significant increase in accounts payable, which rose to CNY 5.06 billion from CNY 4.05 billion, a growth of about 23.5%[151]. Market and Industry Trends - The ongoing COVID-19 pandemic has impacted operations, with some farmers reducing their scale or exiting the industry due to uncertainties, leading to weakened demand for meat products and feed[4]. - Major raw material prices, particularly corn and soybean meal, have shown significant volatility, impacting feed and farming costs[6]. - The livestock industry in China saw a production increase of 16.3% in 2021, with pork production rising by 28.8%[25]. - The market for animal health products is expected to grow significantly, driven by rising consumer demand for health, safety, and green farming practices[27]. - The company anticipates increased competition and challenges in the feed industry due to rising raw material costs and declining demand in the aquaculture sector[36]. Research and Development - The company has invested heavily in a research team of over 3,000 personnel, focusing on animal nutrition and feed formulation technology, allowing for quick adjustments in feed formulations to manage costs during price fluctuations[6]. - The company is increasing its R&D investment, particularly in key technologies for microbial fermentation feed and alternatives to feed antibiotics[8]. - Research and development investment reached 330 million yuan, a nearly 40% increase year-on-year, focusing on seven major research directions[41]. - The company has a robust R&D team of over 3,000 people, investing heavily in research across seven key areas, which supports rapid transformation of technological achievements into production capabilities[44]. Risk Management - The company reported significant risks related to abnormal weather affecting the feed industry, which could lead to fluctuations in livestock numbers and feed demand[2]. - The company has implemented strict disease prevention systems in feed production to address the risks posed by animal diseases[5]. - The company is actively monitoring and adjusting procurement strategies to manage risks associated with raw material price fluctuations[6]. - The company has established a comprehensive risk management system for its hedging activities, ensuring compliance with national laws and regulations[62]. - The company has developed specific operational norms for foreign exchange hedging to mitigate exchange rate risks[62]. Environmental Compliance - New environmental regulations have led to the establishment of restricted farming zones, impacting the scale and structure of livestock farming, which may reshape the feed industry landscape[7]. - The company has implemented various pollution control technologies, including wet dust removal and activated carbon adsorption, to ensure compliance with environmental standards[95]. - The company has received administrative penalties for environmental issues during the reporting period, indicating ongoing challenges in compliance[97]. - The company operates under strict environmental impact assessment protocols before project implementation, ensuring regulatory approval[97]. Strategic Expansion - The company is expanding its factory layout across major aquaculture regions in China and Southeast Asia to mitigate risks from localized weather and pandemic issues[3]. - The company has gradually expanded into Southeast Asia, Africa, and South America for feed, seed, and animal health markets, positioning itself among the top ten global feed enterprises in terms of production and sales scale[30]. - The company is focusing on integrated pig farming through a "self-breeding + farming community" model, ensuring safety and control in the breeding process[34]. - The company is expanding its aquaculture and food processing business, leveraging its advantages in quality seedlings, feed, and animal health products[31]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[10]. - The company granted 47.9532 million stock options to 4,003 incentive objects under the 2021 stock option incentive plan on June 10, 2021[87]. - The implementation of the stock option incentive plan is not expected to have a significant impact on the company's financial condition and operating results during the reporting period and in the future[88]. - The company has a cash dividend commitment, ensuring dividends are distributed when certain financial conditions are met, including profitability and cash flow sufficiency[101]. Financial Instruments and Liabilities - The company has established a dedicated team for commodity hedging operations to monitor and control related business processes[61]. - Financial liabilities measured at fair value include trading financial liabilities and those designated at initial recognition, with gains or losses recognized in the current period[200]. - Financial liabilities measured at amortized cost are accounted for using the effective interest method, with gains or losses from derecognition or amortization recognized in the current period[200]. - The company has a total of 7 subsidiaries involved in the guarantee agreements[115]. User Engagement and Future Outlook - User data showed a total of 1.5 million active users, representing a 20% increase compared to the previous year[198]. - The company provided a positive outlook for the second half of 2022, expecting a revenue growth of 10% to 12%[199]. - New product launches are anticipated to contribute an additional 5% to overall revenue in the upcoming quarters[196]. - The company plans to implement new strategies to enhance customer engagement, aiming for a 15% increase in customer retention rates[198].

Financial Performance - The company's revenue for Q1 2022 was CNY 19.95 billion, an increase of 26.98% compared to CNY 15.71 billion in the same period last year[3] - Net profit attributable to shareholders was CNY 200.70 million, a decrease of 71.62% from CNY 707.28 million year-on-year[3] - Revenue increased by 43.27% year-on-year, driven by higher income and increased investment in construction[8] - Total operating revenue for Q1 2022 reached CNY 19,953,219,403.77, an increase of 27.3% compared to CNY 15,713,132,477.82 in the same period last year[22] - Net profit for Q1 2022 was CNY 232,006,065.64, a decrease of 71.1% from CNY 803,953,797.53 in Q1 2021[24] - Total comprehensive income for the period was CNY 254,547,318.95, compared to CNY 811,993,281.28 in the previous period[25] - Basic and diluted earnings per share were both CNY 0.12, down from CNY 0.43 in the previous period[25] Cash Flow - The net cash flow from operating activities was negative CNY 1.05 billion, a decline of 25.37% compared to the previous year[3] - Net cash flow from operating activities was CNY -1,046,616,499.85, a decrease from CNY -834,854,929.29 in the previous period[27] - Cash inflow from operating activities totaled CNY 21,175,998,610.20, up from CNY 17,171,454,546.97 in the previous period[27] - Cash outflow from operating activities was CNY 22,222,615,110.05, compared to CNY 18,006,309,476.26 in the previous period[27] - Net cash flow from investing activities decreased by 174.13% year-on-year, as the group intensified investments in new feed factories[8] - Net cash flow from investing activities was CNY -2,436,270,357.27, worsening from CNY -888,716,606.53 in the previous period[28] - Cash inflow from financing activities amounted to CNY 8,047,445,925.00, compared to CNY 6,843,983,236.24 in the previous period[28] - Net cash flow from financing activities increased by 78.76% year-on-year, due to a rise in cash received from borrowings[8] - Net cash flow from financing activities was CNY 4,048,101,043.47, an increase from CNY 2,264,584,227.80 in the previous period[28] Assets and Liabilities - Total assets at the end of the reporting period were CNY 41.73 billion, an increase of 17.07% from CNY 35.65 billion at the end of the previous year[4] - The total liabilities rose to CNY 25,448,880,227.93, compared to CNY 19,715,195,063.65 in the same period last year, showing a growth in financial obligations[21] - The company's total equity increased to CNY 16,285,585,851.42, up from CNY 15,933,384,736.44, reflecting a strengthening of the financial position[21] - The company's short-term borrowings increased to CNY 6,473,163,967.58 from CNY 3,782,336,144.35, reflecting an increase of approximately 71.7%[19] - The company reported a significant increase in contract liabilities to CNY 3,165,103,241.64, compared to CNY 1,908,259,980.27, indicating growth in customer prepayments[21] Operational Metrics - The company achieved a feed sales volume of 4.19 million tons, representing a year-on-year growth of 22%[7] - The operating cost increased by 32.19% year-on-year, primarily due to the growth in sales volume of various products[7] - The company experienced a 236.07% decline in net profit from the pig farming segment, with a revenue of CNY 1.37 billion, down 1.56% year-on-year[7] Research and Development - R&D expenses rose by 63.21% year-on-year, reflecting the company's commitment to enhancing research and development capabilities[8] - Research and development expenses increased to CNY 136,212,030.43, compared to CNY 83,459,232.75 in the previous year, indicating a focus on innovation[23] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,047[9] - The largest shareholder, Guangzhou Haihao Investment Co., Ltd., held 54.58% of the shares, with 51,235,000 shares pledged[9] - The company repurchased 10.27 million shares, which were not included in the top ten shareholders[10] - The company granted 47,953,200 stock options to 4,003 eligible participants under the 2021 stock option incentive plan, with the grant date set on June 10, 2021[15] - The exercise price for the stock options was adjusted from CNY 59.68 to CNY 59.36 following the completion of the 2020 annual equity distribution plan[15] - As of the end of the reporting period, the company held 1,194,582 shares under the core team employee stock ownership plan, representing approximately 0.07% of the total share capital[17] Financial Expenses - Financial expenses surged by 84.09% year-on-year, primarily due to increased borrowing and the amortization of leasing liabilities under new accounting standards[8] - The financial expenses, including interest expenses, rose to CNY 147,181,580.77, compared to CNY 79,948,974.10, reflecting higher borrowing costs[23] Other Income - Other income increased by 43.95% year-on-year, mainly from government subsidies received during the period[8] - Investment income decreased by 32.85% year-on-year, attributed to lower profits from the company's futures business[8]

Production and Capacity - The company reported a comprehensive layout of factories in major breeding areas across South China, Central China, East China, North China, and Southeast Asia to mitigate risks from weather anomalies and natural disasters[2]. - The company is adjusting its production capacity to align with the changes in the breeding industry due to environmental regulations, aiming to capture market share in new breeding areas[6]. - The company plans to increase production capacity by nearly 500 million tons, including a 200 million ton increase in special aquatic feed[58]. - The production capacity of the Qingyuan Haida project reached 240,000 tons of feed, achieving a utilization rate of 100.17%[96]. - The Nanning Haida project, with a capacity of 480,000 tons, reported a production volume of 187,383.54 million RMB, representing a utilization rate of 79.86%[96]. - The Jiangmen Rongchuan project is currently under construction, with an expected capacity of 270,000 tons of feed, projected to be operational by June 2023[99]. Financial Performance - The company's operating revenue for 2021 was ¥85,998,559,748.78, representing a 42.56% increase compared to ¥60,323,862,405.94 in 2020[17]. - The net profit attributable to shareholders for 2021 was ¥1,596,046,173.08, a decrease of 36.73% from ¥2,522,730,419.35 in 2020[17]. - The net cash flow from operating activities increased significantly to ¥3,137,948,250.69, up 546.65% from ¥485,259,232.03 in 2020[17]. - The total assets at the end of 2021 were ¥35,648,579,800.09, a 29.50% increase from ¥27,526,958,371.19 at the end of 2020[17]. - The basic earnings per share for 2021 was ¥0.96, down 40.00% from ¥1.60 in 2020[17]. - The company achieved operating revenue of CNY 85.99 billion in 2021, a year-on-year increase of 42.56%, while net profit attributable to shareholders was CNY 1.60 billion, a decrease of 36.73%[53]. Research and Development - The company has invested significantly in a research team of nearly 2,000 people focused on animal nutrition and feed formulation technology, allowing for quick adjustments to feed formulations in response to raw material price fluctuations[4]. - The company is committed to continuous investment in research and development, particularly in key technologies for microbial fermentation feed and alternatives to feed antibiotics[6]. - The company has a robust R&D team of over 3,000 people, focusing on seven key research areas, and invests significantly in R&D to support its product capabilities[44]. - The company has developed a large animal nutrition demand database over 20 years, allowing for rapid adjustments in feed formulations in response to raw material price fluctuations[45]. - The company is collaborating on key R&D projects with institutions like Ocean University of China and South China Agricultural University, focusing on functional feed development[75]. Market and Industry Trends - The total feed production in China reached over 290 million tons in 2021, marking a year-on-year growth of 16.1%[24]. - The feed industry output value increased by 29.3% year-on-year, reaching 1.22341 trillion yuan in 2021[24]. - The average price of corn reached 2,930 yuan per ton by the end of 2021, a 26.3% increase compared to the previous year[26]. - The average price of soybean meal rose to 3,790 yuan per ton, reflecting a 14.2% year-on-year increase[26]. - The demand for animal health products is rapidly increasing, with a focus on preventive measures rather than treatment, indicating a growing market opportunity[24]. - The industry is experiencing accelerated consolidation, with small-scale farmers exiting the market, favoring larger enterprises with better resources and technology[25]. Risk Management - The company has a robust risk management framework to address the volatility of raw material prices, which are influenced by various global factors[3]. - The company is focused on managing foreign exchange risks through careful selection of settlement currencies and utilizing financial instruments to hedge against currency fluctuations[8]. - The company employs a strategy of centralized procurement for bulk raw materials while also utilizing local procurement to respond quickly to market changes[4]. Customer Engagement and Services - The company is actively enhancing its service capabilities to breeding households, integrating services in animal protection, vaccines, and finance to strengthen customer loyalty[6]. - The company provides comprehensive technical services to farmers, enhancing customer loyalty and creating value through integrated breeding solutions[45]. - The company has established a comprehensive technical service system that enhances customer retention and value creation, supported by a team of over 9,000 experienced professionals[46]. Corporate Governance and Management - The company emphasizes the importance of investor relations management, utilizing various communication methods such as phone, email, and interactive platforms to enhance investor engagement[127]. - The company has established an independent financial management system, including a complete accounting framework and independent bank accounts, ensuring no interference from the controlling shareholder[129]. - The company has implemented a strict insider information management system, ensuring all insiders are informed of trading restrictions during the reporting period[128]. - The company has a clear ownership structure with independent land use rights and property ownership, ensuring proper asset management[129]. - The company has committed to continuous improvement in corporate governance, aligning with legal and regulatory standards[127]. Employee Development and Compensation - The company has implemented a salary policy that links income levels to company performance and work objectives, ensuring sustainable growth[167]. - The company emphasizes employee training and development, with a comprehensive talent cultivation system covering five levels of employees[169]. - The company has established a talent development system, with over 800 management personnel trained across various professional centers[170]. - The company has initiated a project to cultivate 100 individuals capable of independently managing talent development within regional divisions and subsidiaries[170]. Strategic Initiatives - The company aims to expand its market presence through continuous innovation and strategic investments in technology and services[38]. - The company is focusing on differentiated product development in poultry feed, with ongoing improvements in efficiency to enhance competitiveness[52]. - The company plans to establish over 1,000 service stations within five years as part of its "Thousand Station Plan" to provide technical services to farmers, enhancing its competitive advantage in the animal health sector[119]. - The company is focusing on expanding its market presence through new projects and enhancing production capabilities across various locations[96].

Financial Performance - The company's revenue for Q3 2021 reached ¥26.12 billion, an increase of 45.77% year-on-year, while the year-to-date revenue was ¥64.31 billion, up 46.82% compared to the same period last year[3] - Net profit attributable to shareholders for Q3 2021 was ¥213.89 million, a decrease of 77.94% year-on-year, with a year-to-date net profit of ¥1.75 billion, down 15.77%[3] - Operating revenue increased by 46.82% compared to the same period last year, primarily due to significant growth in product sales and revenue recognition[10] - The company's net profit for the current period is not explicitly stated, but the operating costs increased to CNY 62.08 billion from CNY 41.04 billion, indicating a rise of about 51.2%[29] - The company experienced a decrease in total profit to CNY 2,587,941,809.30 from CNY 2,735,689,786.36 in the previous year[30] - The total comprehensive income for Q3 2021 was CNY 1,971,279,818.87, compared to CNY 2,297,038,189.65 in Q3 2020[31] Cash Flow and Assets - The company reported a significant increase in cash flow from operating activities, with a year-to-date net cash flow of ¥2.25 billion, up 650.12%[3] - The company's cash and cash equivalents increased by 33.62% compared to the end of the previous year, primarily due to increased cash flow from operations[9] - The company reported a net cash flow from operating activities of CNY 2,251,937,435.67, a significant improvement from a negative cash flow of CNY -409,352,458.03 in the same period last year[33] - The cash inflow from financing activities was CNY 1,924,922,885.42, a decrease of 66.0% compared to CNY 5,656,854,787.12 in the previous year[34] - The total assets at the end of Q3 2021 were ¥36.30 billion, representing a 31.86% increase from the end of the previous year[4] - The total liabilities of the company as of September 30, 2021, were CNY 20.07 billion, up from CNY 12.57 billion at the end of 2020, reflecting an increase of approximately 59.5%[28] Investments and Equity - Long-term equity investments increased by 212.74% compared to the end of the previous year, attributed to increased investments in joint ventures[9] - The total equity attributable to the shareholders of the parent company reached CNY 14.67 billion as of September 30, 2021, compared to CNY 13.97 billion at the end of 2020, reflecting an increase of approximately 5.0%[28] - The company’s total equity attributable to shareholders was CNY 13,972,788,864.41, remaining stable compared to the previous year[38] - Total equity attributable to owners reached CNY 14,958,691,961.36[39] Operational Challenges - The company sold approximately 550,000 pigs in Q3 2021, resulting in a net loss of about ¥700 million, significantly impacting overall performance[8] - The company is focusing on improving its breeding system, resource allocation, and animal nutrition research despite challenges in the pig farming sector[8] - Operating costs rose by 52.40% year-on-year, mainly driven by increased sales volume and cost recognition[10] Research and Development - Research and development expenses grew by 36.88% year-on-year, reflecting the company's commitment to enhancing R&D capabilities and increasing personnel costs[10] - Research and development expenses increased to CNY 415,263,708.15, up 37% from CNY 303,374,309.30 in the same period last year[30] Stock Options and Employee Incentives - The company granted 47,953,200 stock options to 4,003 incentive recipients on June 10, 2021, as part of the 2021 stock option incentive plan[20] - The company has set aside a special fund of 38,511,460.57 CNY for the core team employee stock ownership plan[23] - The company completed the repurchase and cancellation of 49,690 shares of restricted stock due to the departure of 7 incentive recipients and poor performance of 2 recipients[17] Financial Liabilities - The company's financial liabilities decreased by 93.05% year-on-year, mainly due to a reduction in futures losses[10] - Long-term borrowings increased by 162.27% year-on-year, driven by the company's business development and increased funding needs[10] Accounting Changes - The company adopted the new accounting standard for leases starting January 1, 2021, impacting the recognition of right-of-use assets and lease liabilities[39] - The company has implemented new leasing standards affecting the financial statements, indicating a shift in accounting practices[35] Miscellaneous - The third quarter report was not audited[40]

Company Overview - The company reported a comprehensive layout of factories in major breeding areas in South China, Central China, East China, North China, and Southeast Asia to mitigate risks from weather anomalies and natural disasters[4]. - The company has a diverse product range including pig feed, chicken feed, duck and goose feed, as well as fish and shrimp feed, which enhances its ability to respond to disease risks in single breeding varieties[4]. - The company has developed a comprehensive aquaculture industry chain and is gradually building a livestock and poultry industry chain, focusing on high-quality animal breeding, feed, and veterinary products[22]. - The company has expanded its product offerings from feed to high-value products such as seed breeding and animal health products, with a gradual increase in revenue structure proportion over the years[23]. Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥38.19 billion, representing a 47.54% increase compared to ¥25.89 billion in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2021 was approximately ¥1.53 billion, a 38.82% increase from ¥1.10 billion in the previous year[17]. - The net cash flow from operating activities reached approximately ¥580.30 million, showing a significant increase of 103.36% compared to ¥285.36 million in the same period last year[17]. - The total assets of the company at the end of the reporting period were approximately ¥36.34 billion, which is a 32.02% increase from ¥27.53 billion at the end of the previous year[17]. - The company reported a basic earnings per share of ¥0.93, which is a 32.86% increase from ¥0.70 in the same period last year[17]. Research and Development - The company has invested significantly in research and development, with a team of over 2,000 dedicated to animal nutrition and feed formulation technology, allowing for quick adjustments in feed formulations in response to raw material price fluctuations[7]. - The company is actively researching key technologies for microbial fermentation feed and alternatives to feed antibiotics, contributing to industry advancement[8]. - The company’s research and development investments focus on differentiated products and long-term service support, requiring significant technical and market insight[25]. - The company invested 237 million yuan in R&D, a year-on-year increase of 21.77%, focusing on industry-wide technological advancements[47]. Market and Industry Trends - The demand for animal health products is rapidly growing, driven by consumer upgrades and the increasing need for healthy, safe, and green farming practices[28]. - The aquaculture industry is experiencing accelerated growth due to policies promoting large-scale farming and increasing consumer demand for high-quality aquatic products[29]. - The cyclical nature of the livestock industry is influenced by supply and demand dynamics, with feed, health, and seed industries closely tied to the livestock cycle[30]. - In 2020, China's total feed production reached over 250 million tons, a year-on-year increase of 10.4%, with pig feed at 89.225 million tons, up 16.4%[28]. Risk Management - The company faces risks from significant fluctuations in raw material prices, primarily driven by global agricultural market dynamics[5]. - The company is exposed to exchange rate fluctuations due to its global procurement and overseas operations, necessitating careful management of currency risks[9]. - The company acknowledges the impact of environmental regulations on the breeding industry, which may lead to structural adjustments in breeding capacity and market share[7]. - The company has implemented measures to manage foreign exchange risks, including careful selection of settlement currencies and the use of financial instruments like forward contracts and options[75]. Corporate Governance and Shareholder Relations - The company has not declared any cash dividends or stock bonuses for the reporting period[9]. - The company has implemented multiple equity incentive plans for core management and technical personnel to align their interests with shareholders, ensuring the execution of development strategies[39]. - The company has a stock incentive plan in place, with a total of 46 million restricted stock options granted to incentivize employees[79]. - The company has established a comprehensive risk management system for derivative investments, ensuring compliance with national laws and regulations[63]. Environmental Compliance - The company has established multiple professional centers to provide integrated and specialized management and service support, enhancing market response efficiency[26]. - The company processed 50 million cubic meters of waste gas and 0.48 million tons of wastewater annually, ensuring compliance with emission standards[90]. - The company implemented modern environmental protection equipment, including dust collectors and biological deodorization systems, to ensure waste gas meets discharge standards[90]. - The company conducted regular environmental monitoring, ensuring compliance with environmental assessment and discharge standards[93]. Community Engagement and Social Responsibility - The company actively participated in rural revitalization efforts, focusing on agricultural technology and support for farmers through a "Five Elements Empowerment" model[94]. - The company has been recognized for its poverty alleviation efforts, receiving awards such as the Guangdong Province Advanced Collective for Poverty Alleviation and the Outstanding Contribution Collective[95]. - The company donated 15 million yuan to support poverty alleviation initiatives during the Guangdong Poverty Alleviation Day event[96]. - The company has committed to training 1 million new-type professional farmers and aims to generate 100 billion yuan in output value through its "Ten-Hundred-Thousand Project"[96].

Financial Performance - The company's operating revenue for 2020 was CNY 60,323,862,405.94, representing a 26.70% increase compared to CNY 47,612,587,464.50 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 2,522,730,419.35, a 53.01% increase from CNY 1,648,762,579.59 in the previous year[19]. - The net profit after deducting non-recurring gains and losses was CNY 2,459,587,964.11, up 55.59% from CNY 1,580,784,060.76 in 2019[19]. - The company's total assets at the end of 2020 were CNY 27,526,958,371.19, a 46.00% increase from CNY 18,854,315,218.31 at the end of 2019[20]. - The net assets attributable to shareholders at the end of 2020 were CNY 13,972,788,864.41, reflecting a 53.48% increase from CNY 9,103,789,731.01 in 2019[20]. - The basic earnings per share for 2020 were CNY 1.60, a 50.94% increase from CNY 1.06 in 2019[19]. - The diluted earnings per share for 2020 were also CNY 1.60, up 52.38% from CNY 1.05 in the previous year[19]. - The weighted average return on equity for 2020 was 23.87%, an increase of 4.33% compared to 19.54% in 2019[19]. - The net cash flow from operating activities for 2020 was CNY 485,259,232.03, down 85.06% from CNY 3,246,980,705.08 in 2019[19]. - The company reported a quarterly revenue of CNY 17,919,935,213.06 in Q3 2020, with a net profit of CNY 969,441,641.84 for the same quarter[23]. Research and Development - The company has a research team of nearly 2,000 people, investing heavily in R&D focused on animal nutrition and feed formulation technology[8]. - The company is focusing on the development of key technologies for microbial fermentation feed and alternatives to feed antibiotics, leading industry advancements[9]. - The company has established partnerships with over 50 universities and research institutions to enhance its R&D capabilities and address industry challenges[70]. - Research and development (R&D) investment reached ¥490,795,848.72, an increase of 14.63% compared to the previous year, highlighting the company's commitment to R&D[71]. - The number of R&D personnel increased by 33.21% to 2,162, with R&D personnel accounting for 8.24% of the total workforce[71]. Market Expansion and Strategy - The company is expanding its market presence in countries such as Vietnam, India, Indonesia, and Ecuador[34]. - The company has begun to expand into pig farming and food processing, leveraging its strengths in feed, seedlings, and animal health products[28]. - The company is focusing on digital transformation and "Internet + service" models to enhance technical support for farmers[47]. - The company plans to expand rapidly into emerging markets in Southeast Asia, Northeast Asia, and Africa, enhancing its international competitiveness[104]. - The company is actively expanding its market share in new farming regions with rich resources and strong environmental carrying capacity[116]. Risk Management - The company has implemented measures to manage exchange rate risks, including careful selection of settlement currencies and the use of financial instruments like forward contracts[9]. - The company faces risks from significant fluctuations in raw material prices, primarily driven by global agricultural market dynamics[6]. - The company has established a comprehensive risk management system for its hedging activities, including policies for market, liquidity, credit, operational, and legal risks[85]. - The company employs various financial instruments, such as forward foreign exchange contracts and options, to manage currency risk effectively[114]. - The company is facing potential restructuring risks in the feed industry due to environmental policies affecting pig farming and feed production capacity[116]. Environmental and Social Responsibility - The company has implemented various pollution control measures, including low-nitrogen natural gas boilers and advanced wastewater treatment processes[180]. - The company’s wastewater treatment process includes solid-liquid separation, anaerobic treatment, and advanced oxidation processes[180]. - The company has received multiple national awards for its poverty alleviation initiatives, including recognition as an advanced private enterprise in the "Ten Thousand Enterprises Helping Ten Thousand Villages" program[175]. - The company has developed a comprehensive poverty alleviation model involving seven pillars, including industry parks and technical service stations[174]. - The company aims to train 1 million new professional farmers over the next five years, contributing to a target of 100 billion yuan in output value[175]. Shareholder Returns and Dividends - The company reported a cash dividend of 3.2 CNY per 10 shares (including tax) to all shareholders, with no bonus shares issued[9]. - The company plans to distribute a cash dividend of 3.20 yuan per 10 shares (including tax) for the year 2020, with a total cash dividend amounting to 531,587,440.32 yuan[121]. - The total cash dividend, including other methods such as share repurchase, is expected to reach 615,516,535.09 yuan, which represents 100% of the distributable profit[122]. - The company's net profit available for distribution to ordinary shareholders for the year 2020 is reported at 2,553,545,708.11 yuan[124]. - The cash dividend distribution plan is designed to balance immediate and long-term interests of shareholders while ensuring the company's operational stability[124]. Operational Performance - The company has a comprehensive product line that includes pig, chicken, duck, and aquatic feeds, allowing for flexibility in production capacity adjustments[8]. - The feed business is the core of the company, supported by a strong customer base and complemented by seedling and animal health products, which have become significant supplementary businesses[27]. - The company’s overall strategy emphasizes research and development, with a multi-level R&D system to support its product offerings[27]. - The company has established a large animal nutrition demand database over 20 years, enabling rapid adjustment of feed formulas in response to raw material price fluctuations, thus gaining a cost competitive advantage[37]. - The company provides comprehensive technical services to farmers, ensuring the use of advanced farming techniques, which enhances customer retention and value creation[39].