Financial Performance - The company's revenue for Q3 2022 was ¥8,701,286,613.33, representing a year-on-year increase of 6.46%[4] - The net profit attributable to shareholders for Q3 2022 was ¥181,891,288.40, a significant increase of 146.48% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥166,259,745.48, up 141.53% year-on-year[4] - The company's basic earnings per share for Q3 2022 was ¥0.04, a 140.00% increase compared to the same period last year[4] - The weighted average return on equity was 1.76%, an increase of 5.21% year-on-year[4] - Total operating revenue for the current period is ¥22,094,415,865.46, a decrease of 5.77% from ¥23,441,504,152.54 in the previous period[28] - Net profit for the current period is a loss of ¥320,540,263.56, compared to a loss of ¥86,975,965.14 in the previous period[30] - The total profit for the current period is a loss of ¥257,605,137.82, compared to a profit of ¥67,968,391.36 in the previous period[29] - The diluted earnings per share for the current period is -0.08, compared to 0.03 in the previous period[32] - Other comprehensive income after tax for the current period is a loss of ¥50,714,517.43, compared to a gain of ¥82,877,950.35 in the previous period[30] Assets and Liabilities - Total assets at the end of Q3 2022 reached ¥31,121,911,443.25, reflecting a growth of 15.72% from the end of the previous year[4] - As of September 30, 2022, the company's total assets amounted to RMB 31.12 billion, an increase from RMB 26.89 billion at the beginning of the year[25] - The company's current assets totaled RMB 12.43 billion, up from RMB 10.48 billion at the start of the year, indicating a growth of approximately 18.6%[24] - The company's inventory increased to RMB 4.05 billion from RMB 3.31 billion, reflecting a growth of about 22.3%[24] - The company's total liabilities reached RMB 18.69 billion, compared to RMB 14.19 billion at the beginning of the year, representing a rise of approximately 31.5%[26] - The company's equity attributable to shareholders decreased to RMB 10.43 billion from RMB 10.74 billion, a decline of about 2.7%[27] - The company reported a short-term loan of RMB 6.69 billion, an increase from RMB 4.91 billion, indicating a rise of approximately 36.0%[26] Cash Flow - The company reported a net cash flow from operating activities of ¥603,547,584.57, which is a 3.56% increase compared to the previous year[4] - The net cash flow from operating activities for Q3 2022 was CNY 603.55 million, an increase from CNY 582.81 million in Q3 2021, reflecting a growth of approximately 3%[34] - Cash inflow from operating activities is ¥22,416,358,858.93, down 5.54% from ¥23,729,086,505.03 in the previous period[33] - The total cash flow from operating activities was CNY 21.81 billion, down from CNY 23.15 billion in the same quarter last year, a decrease of approximately 6%[34] - The net cash flow from investment activities decreased by 1.34 billion RMB, a decline of 85.17%, primarily due to increased external investments[14] - Total cash outflow from investing activities was CNY 3.01 billion, compared to CNY 2.01 billion in the same period last year, indicating a significant increase of about 49%[34] - The company reported a cash inflow from investment activities of CNY 97.56 million, significantly lower than CNY 436.80 million in Q3 2021, reflecting a decline of about 78%[34] - The company experienced a negative cash flow from investing activities of CNY 2.91 billion, compared to a negative cash flow of CNY 1.57 billion in Q3 2021, indicating a worsening of about 85%[34] - The net cash flow from financing activities reached CNY 2.10 billion, up from CNY 1.12 billion in Q3 2021, representing an increase of approximately 87%[35] - Cash inflow from financing activities totaled CNY 7.36 billion, compared to CNY 6.41 billion in Q3 2021, marking an increase of about 15%[35] Expenses - The company experienced a significant increase in financial expenses, with interest expenses rising to ¥344,262,323.84 from ¥249,761,015.09, an increase of 37.8%[29] - The company's financial expenses increased by ¥77,962,500, a growth of 35.51% compared to the same period last year[10] - Research and development expenses for the current period are ¥432,878,804.65, a slight decrease of 4.3% from ¥452,097,361.80 in the previous period[29] - The company experienced a decrease in sales expenses, which rose to ¥816,667,521.05 from ¥761,593,807.72, an increase of 7.2%[29] - The company paid CNY 362.71 million in dividends and interest in Q3 2022, down from CNY 589.29 million in the same quarter last year, a decrease of approximately 38%[35] Acquisitions and Legal Matters - The company terminated the acquisition of Hunan Jiuding Technology Group Co., Ltd. due to a lawsuit, with a claim for the second payment of RMB 396 million and a penalty of RMB 4.95 million as of July 25, 2022[19] - The company is pursuing a counterclaim to recover RMB 417.67 million already paid for the acquisition and to seek tax refund cooperation for RMB 242.33 million[19] - The company has initiated legal proceedings to recover RMB 500 million in advance payment related to the acquisition of subsidiaries from Jiangxi Zhengbang Technology Co., Ltd., along with interest and penalties[22] - Jiangxi Zhengbang Technology has been placed under pre-restructuring proceedings by the court, creating uncertainty regarding its future restructuring[22] Other Financial Metrics - Cash received from tax refunds decreased by 14.19 million RMB, a decline of 38.00% compared to the same period last year, mainly due to a reduction in VAT refunds received[11] - Cash received from other operating activities increased by 188.23 million RMB, a growth of 71.74%, primarily due to an increase in government subsidies and receivables[11] - Cash paid for various taxes decreased by 75.36 million RMB, a decline of 33.25%, mainly due to a reduction in tax payments[11] - Cash paid for the acquisition of fixed assets decreased by 671.99 million RMB, a decline of 35.77%, mainly due to reduced payments for fixed asset investment projects[11] - Cash received from the disposal of subsidiaries increased by 11.10 million RMB, a growth of 3536.56%, mainly due to increased cash from equity transfers[11] - Cash received from other investment activities increased by 37.98 million RMB, a growth of 2452.23%, primarily due to increased profits from futures trading[11] - Cash paid for other financing activities increased by 479.40 million RMB, a growth of 143.86%, mainly due to increased repayments for financing leases[14]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 13,393,129,252.13, a decrease of 12.28% compared to the same period last year[14]. - The net profit attributable to shareholders was a loss of CNY 510,514,116.97, representing a decline of 202.35% year-on-year[14]. - The net cash flow from operating activities was a negative CNY 648,148,651.66, a decrease of 271.57% compared to the previous year[14]. - The company's operating revenue for the reporting period was ¥13,393,129,252.13, a decrease of 12.28% compared to ¥15,268,065,953.19 in the same period last year[33]. - The gross margin for the first half of 2022 was reported at 35%, a slight increase from 33% in the previous year, indicating improved operational efficiency[101]. - The company reported a net profit margin of 12% for the first half of 2022, showcasing improved operational efficiency[152]. Revenue Breakdown - The feed business accounted for 71.36% of the main business revenue, with sales revenue of CNY 955,766.76 million, down 14.8% year-on-year[20]. - The revenue from the pig farming business was CNY 183,243.10 million, a decline of 22.57% year-on-year[22]. - The seed business accounted for 1.35% of the main business revenue, with seed sales volume reaching 8.67 million kg, a year-on-year increase of 16.8%[24]. - The revenue from the feed and veterinary industry was ¥9,673,682,853.56, accounting for 72.23% of total revenue, down 15.09% year-on-year[34]. - The pig farming sector generated ¥1,832,431,030.98, representing 13.68% of total revenue, a decrease of 22.57% compared to the previous year[34]. Cost and Expenses - The cost of feed raw materials accounts for over 90% of the total cost of feed products, with key ingredients including corn, wheat, fish meal, and soybean meal[2]. - The operating cost decreased by 7.65% to ¥12,098,659,474.89 from ¥13,100,297,031.69, resulting in a gross margin of 9.66%[36]. - Research and development expenses were ¥307,948,953.93, a slight decrease of 0.48% compared to ¥309,449,507.94[33]. - The company experienced a 38.43% decline in revenue from veterinary products, primarily due to market conditions affecting pig prices[36]. Market and Operational Risks - Major animal diseases such as African swine fever and porcine reproductive and respiratory syndrome pose significant operational risks, potentially affecting both pig production and feed demand[3]. - The company emphasizes the importance of monitoring fluctuations in pig prices, which can significantly impact operational performance[4]. - The company faces risks from fluctuations in feed raw material prices, which account for over 90% of total feed costs, and is implementing measures to optimize procurement channels and reduce costs[51]. - The company is also addressing risks from animal diseases by enhancing biosecurity measures and investing in disease prevention technology[52][53]. Strategic Initiatives - The report indicates that the company is focused on developing new technologies and products to enhance its market position[9]. - The company has established a comprehensive management platform for pig farming, integrating various aspects of pig management into a smart solution[9]. - The company has developed various new products, including new feed additives, biological feed, and animal vaccines, through its innovative research and development efforts[28]. - The company aims to improve pig farming efficiency and reduce operational costs to mitigate risks from price volatility[54]. Environmental and Sustainability Efforts - The company has implemented measures for wastewater treatment, including a sewage treatment station that meets discharge standards[61]. - The company is exposed to environmental regulations as a key pollutant discharge unit, with specific measures in place for pollution control[60]. - The company has implemented measures to reduce carbon emissions, including upgrading equipment and processes to improve waste treatment efficiency, effectively reducing CO2 and methane emissions[68]. - The company is committed to sustainable development by integrating environmental protection into its operations and enhancing resource utilization through technology upgrades[70]. Shareholder and Governance - The company does not plan to distribute cash dividends or issue bonus shares for the current period[4]. - The management team has confirmed the accuracy and completeness of the financial report, taking legal responsibility for its content[2]. - The company held four shareholder meetings in 2022, with participation rates of 31.40%, 26.18%, 28.69%, and 28.46% respectively[55]. - The company has experienced changes in its board and management, with several resignations and appointments in 2022[56]. Research and Development - The company has allocated significant resources towards research and development, with a budget increase of 20% compared to the previous year[83]. - The company has committed to a research and development budget of 2,000 million aimed at innovating new agricultural technologies and products[107]. - The company has invested significantly in research and development, with a budget allocation of 1,573.79 million for innovative projects[133]. Guarantees and Financial Commitments - The company has provided guarantees totaling ¥500 million for various third parties, with actual guarantees amounting to ¥409.31 million as of February 10, 2022[78]. - The company has provided guarantees totaling 5,000 million for various subsidiaries, indicating strong financial backing and support for its operations[120]. - The company has a total of 9,000 million in guarantees for various projects, indicating strong financial backing and commitment to growth[150]. - The company has provided joint liability guarantees for various subsidiaries, with amounts including 2,654.67 million and 2,766.17 million for specific subsidiaries[155]. Future Outlook - The company anticipates a revenue growth of 20% year-over-year for the next fiscal year[88]. - The company has set a performance guidance of 2,172.8 million for the upcoming quarter, indicating strong growth expectations[85]. - The company is exploring potential mergers and acquisitions to enhance its competitive position in the market[90]. - The company is actively pursuing market expansion strategies, targeting new regions and increasing its distribution network[83].