Financial Performance - The company's operating revenue for the first half of 2020 was approximately CNY 8.99 billion, representing a 10.43% increase compared to the same period last year[10]. - The net profit attributable to shareholders for the first half of 2020 was approximately CNY 893 million, a significant increase of 2,556.20% year-on-year[10]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately CNY 771 million, up 23,918.47% from the previous year[10]. - The net cash flow from operating activities reached approximately CNY 519 million, an increase of 6,856.49% compared to the same period last year[10]. - The basic and diluted earnings per share for the first half of 2020 were both CNY 0.22, a 2,100.00% increase year-on-year[10]. - The weighted average return on net assets was 8.62%, up 8.28 percentage points from the previous year[10]. - Total assets as of June 30, 2020, were approximately CNY 20.98 billion, an increase of 11.00% compared to the end of the previous year[10]. - The net assets attributable to shareholders were approximately CNY 9.97 billion, a slight decrease of 1.06% from the previous year[10]. Revenue Breakdown - The feed business accounted for 73.92% of the total revenue, while the pig farming business contributed 15.65%[17]. - The total sales volume of feed reached 1.8992 million tons, with pig feed sales at 1.3127 million tons, a year-on-year decrease of 18.90%[17]. - The sales of live pigs by the company and its subsidiaries were 648,400 heads, a year-on-year decrease of 33.08%, but the sales revenue from live pigs increased by 103.24% to 266.41 million yuan[17]. - The company’s feed production for pigs was 3,536,000 tons in the first half of 2020, with a recovery trend noted in June 2020[38]. - The company’s subsidiary, Beijing Dabeinong Biotechnology Co., Ltd., received a safety certificate for herbicide-resistant soybean DBN-09004-6, allowing for commercial planting in Argentina[31]. Market Trends and Industry Insights - In the first half of 2020, the average price of live pigs in China was 33.90 yuan/kg, an increase of 136.95% compared to the same period last year[21]. - The pig farming industry is expected to see a recovery in profitability due to rising pig prices and strong policy support[21]. - The concentration of feed enterprises is increasing, with larger companies gaining competitive advantages amid market disruptions[22]. - The approval of transgenic corn and soybean varieties for commercial planting is anticipated to significantly enhance the development space for the seed industry[23]. - The Chinese government has implemented various policies to promote the development of the seed industry, emphasizing its strategic importance for national food security[23]. Technological Advancements - The company emphasizes the development of integrated management platforms for pig farming, enhancing its digital solutions in the agricultural sector[5]. - The company has made significant progress in transgenic technology for corn and soybeans, enhancing its market position[16]. - The company has established five national-level R&D institutions and eight provincial-level R&D institutions, focusing on agricultural biotechnology and animal health products[30]. - The company is currently in the process of developing a vaccine for African swine fever, which, if successfully commercialized, could create substantial market opportunities[26]. - The company has developed a closed-loop service platform for pig farming, integrating data, transactions, and finance to enhance efficiency[33]. Investment and Growth Strategies - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[2]. - The company is focusing on expanding its pig farming technology sector, which is expected to be a key growth area in the coming years[17]. - The company has increased its raw material trading business to mitigate price volatility risks, leading to a notable rise in revenue share from this sector[47]. - The company is exploring potential mergers and acquisitions to further strengthen its market position and diversify its product offerings[107]. - The company has set a performance guidance for the second half of 2020, aiming for a revenue increase of at least 20% compared to the first half of the year[93]. Sustainability and Social Responsibility - The company has implemented a poverty alleviation strategy, aiming to invest CNY 100 billion in 100 poverty-stricken counties through 100 projects[132]. - The company’s "Internet + Poverty Alleviation" model aims to enhance agricultural product sales and provide financial support to impoverished farmers[134]. - The company is committed to sustainability, with plans to reduce carbon emissions by 30% over the next five years[107]. - The company has established partnerships with local farmers, resulting in a 25% increase in user engagement and satisfaction[106]. - The company has developed a comprehensive training program through its affiliated China Farmers University to improve the skills of impoverished individuals[135]. Shareholder and Equity Information - The largest shareholder, Shao Genhuo, holds 34.49% of the shares, totaling 1,446,969,204 shares, with a decrease of 163,978,004 shares during the reporting period[146]. - The company reported a total of 220,411 shareholders holding more than 5% of the shares at the end of the reporting period[146]. - The number of restricted shares decreased by 101,457,493, resulting in a total of 1,310,295,793 restricted shares, which is 31.23% of the total[143]. - The company’s board of directors and senior management saw changes, with several new appointments made on March 20, 2020[157][158]. - The company has no outstanding publicly issued bonds that are due or have not been fully paid as of the report date[159].

Financial Performance - The company's revenue for Q1 2020 was CNY 4,081,196,693.95, representing a 0.58% increase compared to CNY 4,057,485,579.82 in the same period last year[4]. - Net profit attributable to shareholders was CNY 465,462,716.98, a significant increase of 1,298.16% from a loss of CNY 38,848,239.65 in the previous year[4]. - The net profit after deducting non-recurring gains and losses was CNY 383,958,703.68, up 869.38% from a loss of CNY 49,904,960.40 in the same period last year[4]. - The basic earnings per share were CNY 0.11, compared to a loss of CNY 0.01 per share in the same period last year, marking a 1,200.00% increase[4]. - Net profit surged by 1,146.94% to 624.39 million CNY, driven by significant growth in the pig farming business[12]. - Total profit increased by 2,389.29% to 650.38 million CNY, mainly due to the profitability of the pig farming sector[12]. - The net profit for the first half of 2020 is expected to be between 80,000,000 and 110,000,000 CNY, representing a year-on-year increase of 2,279.39% to 3,171.66%[21]. - The main reasons for the performance increase include enhanced profitability in pig farming and continued implementation of cost reduction strategies, leading to a decrease in expenses year-on-year[22]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 20,331,919,848.66, an increase of 7.55% from CNY 18,904,149,244.36 at the end of the previous year[4]. - The net assets attributable to shareholders were CNY 10,538,745,282.59, reflecting a 4.63% increase from CNY 10,071,990,388.44 at the end of the previous year[4]. - Long-term borrowings rose by 56.10% to 364.81 million CNY, reflecting increased fixed asset investment[11]. - The company's total liabilities increased to CNY 7.93 billion from CNY 6.91 billion, reflecting a growth of about 14.8%[32]. - The total current liabilities amounted to CNY 6,157,662,441.29, an increase of 8.2% from CNY 5,691,766,394.13[34]. - The total non-current liabilities increased to CNY 2,123,608,763.70 from CNY 1,749,162,454.39, reflecting a growth of 21.4%[34]. Cash Flow - The net cash flow from operating activities was -CNY 75,046,967.14, an improvement of 67.99% from -CNY 234,469,669.53 in the same period last year[4]. - Cash flow from operating activities increased by 67.99% to 39.24 million CNY, attributed to higher sales collections[14]. - The cash flow from operating activities showed a net outflow of CNY 75,046,967.14, improving from a net outflow of CNY 234,469,669.53 in the same quarter last year[47]. - Investment activities resulted in a net cash outflow of CNY 286,798,761.57, compared to a net outflow of CNY 198,251,564.83 in the previous year[47]. - Financing activities generated a net cash inflow of CNY 943,288,128.96, a turnaround from a net outflow of CNY 129,586,773.15 in the same quarter last year[47]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 210,110, with the largest shareholder, Shao Genhuo, holding 35.87% of the shares[7]. - The total equity attributable to shareholders reached CNY 10,538,745,282.59, up from CNY 10,071,990,388.44, reflecting a growth of 4.6%[34]. Investment and Income - Trading financial assets increased by 5,849.29% to 46.21 million CNY due to the purchase of wealth management products[10]. - Investment income rose by 445.04% to 228.90 million CNY, primarily from increased equity transfer gains[12]. - The company reported a significant increase in investment income from joint ventures, amounting to approximately CNY 177.46 million, compared to a loss of CNY 51.43 million in the previous year[39]. - The company reported an increase in investment income to CNY 175,264,071.31, recovering from a loss of CNY 71,697,880.06 in the same period last year[43]. Operational Efficiency - Total operating costs decreased to approximately CNY 3.63 billion from CNY 4.01 billion, a reduction of about 9.4% year-over-year[38]. - The company’s sales expenses decreased to approximately CNY 213.15 million from CNY 285.94 million, a reduction of about 25.4% year-over-year[38]. - Research and development expenses for Q1 2020 were approximately CNY 73.61 million, slightly down from CNY 73.81 million in the same period last year[38]. - The company recorded a decrease in credit impairment losses to CNY -141,672.59 from CNY -45,999.51 in the previous year[43]. Miscellaneous - The company received government subsidies amounting to CNY 80,595,412.71 during the reporting period, primarily from equity transfer gains and project-related subsidies[5]. - The company has no securities investments during the reporting period[22]. - The company has established a professional futures research team to monitor market trends and manage risks effectively[30]. - There were no significant changes in the company's accounting policies or principles compared to the previous reporting period[30].

Financial Performance - The company's revenue for Q1 2020 was CNY 4,081,196,693.95, representing a 0.58% increase compared to CNY 4,057,485,579.82 in the same period last year[4]. - Net profit attributable to shareholders was CNY 465,462,716.98, a significant increase of 1,298.16% from a loss of CNY 38,848,239.65 in the previous year[4]. - The net profit after deducting non-recurring gains and losses was CNY 383,958,703.68, up 869.38% from a loss of CNY 49,904,960.40 in the same period last year[4]. - The basic earnings per share were CNY 0.11, compared to a loss of CNY 0.01 in the same period last year, marking a 1,200.00% increase[4]. - The total profit increased by 2,389.29% to 650.38 million CNY, largely due to the profitability of the pig farming business[13]. - The net profit for the first quarter of 2020 was approximately ¥569.95 million, a significant recovery from a net loss of ¥54.44 million in the same period last year, representing a turnaround of over 1045%[38]. - The total profit for the quarter reached ¥623.16 million, compared to a loss of ¥27.22 million in the previous year, indicating a substantial improvement[38]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 20,331,919,848.66, a 7.55% increase from CNY 18,904,149,244.36 at the end of the previous year[4]. - The net assets attributable to shareholders were CNY 10,538,745,282.59, reflecting a 4.63% increase from CNY 10,071,990,388.44 at the end of the previous year[4]. - The company's total equity attributable to shareholders reached CNY 10,538,745,282.59, compared to CNY 10,071,990,388.44 at the end of 2019, marking a growth of about 4.6%[35]. - The total liabilities increased to CNY 8,281,271,204.99 from CNY 7,440,928,848.52, representing a growth of about 11.3%[32]. - The company's total liabilities were ¥7,440,928,848.52 as of January 1, 2020, unchanged from the previous year[52]. Cash Flow - The net cash flow from operating activities was CNY -75,046,967.14, an improvement of 67.99% from CNY -234,469,669.53 in the same period last year[4]. - The net cash flow from operating activities rose by 67.99% to 159.42 million CNY, due to increased sales collections[15]. - The cash flow from operating activities was approximately ¥3.93 billion, indicating strong operational cash generation capabilities[44]. - The net cash flow from financing activities reached 943,288,128.96 RMB, a substantial increase compared to -129,586,773.15 RMB in the prior year, showing strong financing support[46]. - The total cash and cash equivalents at the end of the period amounted to 3,169,278,751.15 RMB, up from 1,608,567,458.88 RMB year-over-year, indicating improved liquidity[46]. Shareholder Information - The top shareholder, Shao Genhuo, holds 35.87% of the shares, with a total of 1,504,699,420 shares[7]. - The company has completed the repurchase and cancellation of 7,095,639 shares of restricted stock due to unfulfilled unlocking conditions[18]. - The third unlocking period for restricted stock, corresponding to 54,091,642 shares, is set for November 6, 2020, but the conditions for unlocking have not been met[18]. Government Support and Subsidies - The company received government subsidies amounting to CNY 17,435,701.19 during the reporting period, contributing to the overall financial performance[5]. Investment and Financial Management - Trading financial assets increased by 5,849.29% to 46.21 million CNY due to the purchase of wealth management products[11]. - Investment income rose by 445.04% to 228.90 million CNY, primarily from increased equity transfer gains[13]. - The company has engaged in entrusted financial management with a total amount of 896,940,200 CNY, with an outstanding balance of 47,000 CNY[23]. - The company has invested in derivatives, with a total initial investment amount of 15,871,100 CNY, and a year-end investment amount of 23,171,400 CNY, representing 0.22% of the company's net assets[24]. - The company has not engaged in any securities investments during the reporting period[22]. Operational Efficiency - The company's earnings per share increased by 1,200.00% to 0.13 CNY, reflecting the strong performance of the pig farming segment[14]. - The improvement in profitability is attributed to enhanced profitability in pig farming operations and a continued focus on cost reduction strategies[22]. - Operating costs decreased to CNY 3,632,202,613.77 from CNY 4,013,328,999.10 in the previous quarter, showing a reduction of about 9.4%[37]. - The company reported a decrease in sales expenses to CNY 213,150,834.50 from CNY 285,941,874.74, a reduction of about 25.4%[37]. Compliance and Governance - The company has committed to maintaining independence in its operations and not engaging in competitive activities with its major shareholders[19]. - The company has adhered to all commitments made regarding financial assistance and compensation during the reporting period[20]. - The company reported no non-operating fund occupation by controlling shareholders or related parties during the reporting period[26][27]. - There were no violations regarding external guarantees during the reporting period[26]. - The company has established a risk control team for futures operations to manage and audit risks effectively[25]. Future Outlook - The company expects a net profit for the first half of 2020 to increase by over 50% year-on-year, with a projected range of net profit between 80,000,000 and 110,000,000 CNY[21]. - The net profit for the first half of 2019 was 33,622,100 CNY, indicating a significant growth trajectory[21].

Financial Performance - The company's operating revenue for 2019 was approximately ¥16.58 billion, a decrease of 14.11% compared to ¥19.30 billion in 2018[17]. - Net profit attributable to shareholders was approximately ¥513.29 million, representing a slight increase of 1.26% from ¥506.91 million in the previous year[17]. - The net profit after deducting non-recurring gains and losses surged by 180.70% to approximately ¥328.54 million from ¥117.04 million in 2018[17]. - The net cash flow from operating activities increased by 67.41% to approximately ¥1.79 billion, up from ¥1.07 billion in 2018[17]. - Total assets at the end of 2019 were approximately ¥18.90 billion, reflecting a growth of 4.47% from ¥18.10 billion at the end of 2018[17]. - The net assets attributable to shareholders increased by 3.00% to approximately ¥10.07 billion, compared to ¥9.78 billion at the end of 2018[17]. - The company reported a basic earnings per share of ¥0.12, unchanged from the previous year[17]. - The company achieved a gross margin increase of 0.13 percentage points for pig feed despite a decline in sales volume[24]. - The company's comprehensive gross margin increased by 1.22 percentage points to 19.91%[45]. Dividend Distribution - The company plans to distribute a cash dividend of 2.30 RMB per 10 shares (including tax) to all shareholders based on a total share capital of 4,195,329,495 shares as of December 31, 2019[6]. - The cash dividend distribution represents 232.75% of the company's net profit attributable to ordinary shareholders for the year 2019, which was RMB 1,194,694,151.68[111]. - The company’s total distributable profit for the year was RMB 2,113,882,207.70, with cash dividends accounting for 100% of the total profit distribution[113]. - The cash dividend distribution plan was approved in the board meeting held on November 22, 2019, and implemented on December 24, 2019[108]. Market Conditions and Risks - The cost of feed raw materials accounts for over 90% of the total cost of feed products, with key ingredients including corn, wheat, and soybean meal[2]. - The company faces risks related to the supply and price of feed raw materials, which are influenced by international trade negotiations and extreme weather events[4]. - The ongoing risk of African swine fever and other diseases poses significant operational risks, potentially affecting pig production and feed demand[5]. - The company anticipates that pig prices may continue to remain high in 2020 due to tight supply conditions[6]. - The price of corn showed a cyclical fluctuation in 2019, with a general upward trend after initial declines, influenced by supply and trade relations[30]. Production and Sales - In 2019, the company's feed business revenue accounted for 78.89% of total revenue, while pig farming and related services accounted for 11.78%[24]. - The total sales volume of feed reached 3.79 million tons, with pig feed sales declining by 25.40% year-on-year to 2.79 million tons[24]. - The company sold a total of 1.64 million pigs in 2019, with a 16.47% year-on-year decrease in sales volume, but sales revenue increased by 45.64% to CNY 1,919.72 million[25]. - The company’s pig feed accounted for over 70% of its feed revenue, reflecting a shift in demand towards safe and healthy feed products[44]. Research and Development - The company has established five national-level R&D institutions and eight R&D centers, focusing on agricultural technology innovation, including the development of new feed additives and vaccines[39]. - The company’s R&D investment has increased, with 22 livestock technology projects and 2 internet + agriculture projects undertaken in 2019[46]. - The company applied for 59 new patents and received 76 patent grants, totaling 345 effective authorized invention patents[47]. - The company’s corn transgenic technology made significant breakthroughs in marketization, indicating strong future economic benefits[24]. Strategic Initiatives - The company is developing an integrated online pig farming solution through its "Pig Internet" platform, aimed at providing comprehensive management for pig farmers[10]. - The company’s "Agricultural Credit Network" serves as a comprehensive service platform for customers, facilitating various agricultural needs[10]. - The company is focused on creating a world-class agricultural technology and service enterprise, leveraging biotechnology and information technology for innovation[39]. - The company has implemented a "1240" precision service strategy to enhance the competitiveness of its seed industry[26]. Environmental and Social Responsibility - The company has established a comprehensive disease prevention system to mitigate risks from major animal diseases, including African swine fever[104]. - The company has implemented a poverty alleviation strategy, aiming to assist 100 impoverished counties with an investment of 10 billion yuan and create over 100 billion yuan in annual output value[162]. - The company constructed 11 pig farms during the reporting period, implementing effective waste treatment facilities and achieving zero emissions through anaerobic fermentation[172]. - The company’s technology innovation system includes 8 research platforms focused on agricultural science, enhancing productivity and efficiency for impoverished households[165]. Future Outlook - The company expects a gradual recovery in pig feed demand as pig farming capacity stabilizes and policy support increases[29]. - The company has set a performance guidance for the upcoming year, anticipating a revenue growth of approximately 15%[137]. - The company plans to invest 2,000 million in research and development for innovative agricultural solutions over the next two years[147]. - The company is exploring market expansion opportunities, particularly in the aquaculture segment, with contracts valued at 1,275 million[138].

Financial Performance - Operating revenue for the period was CNY 4.08 billion, representing a decrease of 20.67% year-on-year[4] - Net profit attributable to shareholders was CNY 268.42 million, down 20.25% compared to the same period last year[4] - Basic earnings per share were CNY 0.06, down 25.00% year-on-year[4] - The weighted average return on equity was 2.70%, a decrease of 16.67% compared to the previous year[4] - Total operating revenue for Q3 2019 was CNY 4,081,333,598.61, a decrease of 20.7% compared to CNY 5,144,865,484.55 in the same period last year[32] - Net profit for Q3 2019 was CNY 305,919,216.50, compared to CNY 335,619,750.40 in Q3 2018, indicating a decline of 8.8%[33] - The net profit attributable to the parent company was CNY 302,042,237.04, down 31.5% from CNY 440,585,469.77 year-on-year[41] - The total profit for the quarter was CNY 407,666,185.67, a decline of 25.3% from CNY 545,937,957.54 in the previous year[40] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 18.37 billion, an increase of 1.51% compared to the end of the previous year[4] - The company's total assets decreased to CNY 11,689,777,125.68 from CNY 12,212,800,450.17, a reduction of 4.3%[31] - The total liabilities amounted to CNY 6,839,209,353.95, down from CNY 7,381,368,275.95, indicating a decrease of 7.4%[26] - Current liabilities decreased to CNY 5,306,320,772.60 from CNY 6,437,402,732.84, a reduction of 17.5%[26] - The company's total assets decreased by 12.5% compared to the previous year, reflecting a strategic shift in asset management[40] Cash Flow - Net cash flow from operating activities was CNY 799.07 million, a decrease of 10.17% compared to the previous year[4] - Cash flow from operating activities was CNY 11,988,512,960.99, a decrease from CNY 13,165,003,844.65 in the previous year[45] - The net cash flow from operating activities was 903,688,281.43 CNY, a decrease from 1,440,119,845.58 CNY in the previous period[49] - Total cash inflow from operating activities was 4,295,426,245.57 CNY, down from 7,140,493,264.49 CNY year-on-year[49] - The total cash outflow for operating activities was 3,391,737,964.14 CNY, compared to 5,700,373,418.91 CNY in the previous period[49] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 148,628[7] - The largest shareholder, Shao Genhuo, holds 38.69% of the shares, totaling 1,641,461,553 shares[7] Investment and Expenses - Investment income decreased by CNY 249.18 million, a decline of 80.60%, mainly due to a decrease in equity transfer income[14] - Research and development expenses for Q3 2019 were CNY 94,406,149.76, up from CNY 84,973,235.56, representing an increase of 11.7%[32] - The company reported a decrease in sales expenses to CNY 268,195,688.63 from CNY 381,492,487.44, a reduction of 29.7%[32] - Research and development expenses for the current period are CNY 254,238,176.77, down from CNY 275,447,967.98 in the previous period[39] Other Financial Metrics - Non-recurring gains and losses totaled CNY 175.06 million, primarily from asset disposal gains and government subsidies[5] - The company incurred a credit impairment loss of CNY -43,265,354.86 during the quarter[40] - The company reported a fair value loss of CNY 6,658,119.96 in the current period, compared to a gain of CNY 2,767,350.00 in the previous period[39] Future Outlook - The company plans to expand its market presence through new product development and strategic acquisitions in the upcoming quarters[40]

Pig Farming Operations - In the first half of 2019, the company sold 950,000 pigs, including those from equity investment breeding platform companies[8]. - The company plans to increase its investment in the pig farming industry, aiming to expand its breeding platform company shareholding ratio[8]. - The company has established eight major platform companies for pig farming across the country, increasing the revenue proportion from this sector year by year[8]. - The company sold approximately 970,000 pigs and breeding pigs in the first half of 2019, an increase of 26.64% year-on-year[33]. - The company's pig farming output increased by 26.64% year-on-year, with a total of approximately 970,000 pigs sold, generating sales revenue of 1.31 billion yuan, a 92.19% increase[50]. - The company has invested in 19,000 breeding sows and has 46,000 more under construction, with a total production capacity of 105,000 sows planned[50]. - The company’s pig farming business experienced a 57.35% quarter-on-quarter growth in performance in Q2 2019, following a significant loss in Q1 due to market conditions[49]. - The company has developed a "Pig Internet+" platform that connects various stakeholders in the pig industry, enhancing production, transaction, and financing efficiency[46]. Financial Performance - The company's operating revenue for the first half of 2019 was ¥8,142,140,653.71, a decrease of 10.26% compared to the same period last year[22]. - The net profit attributable to shareholders was ¥33,622,125.57, down 67.67% year-on-year[22]. - The net profit after deducting non-recurring gains and losses was ¥3,210,934.20, a decline of 91.19% compared to the previous year[22]. - The total cash flow from operating activities was ¥7,459,151.44, a significant improvement from a negative cash flow of ¥597,252,236.43 in the same period last year, representing a 101.25% increase[22]. - The company reported total revenue of 814.21 million yuan, a decrease of 10.26% year-on-year, and a net profit of 33.62 million yuan, down 67.67% compared to the previous year[49]. - The company’s feed sales revenue for the reporting period was CNY 683.87 million, a year-on-year decrease of 11.67%, with total sales volume at 1.99 million tons, down 6.09%[51]. - The company reported a significant reduction in cash and cash equivalents, with CNY 357,616,088.84 as of June 30, 2019, compared to CNY 1,117,795,881.58 at the end of 2018, indicating cash flow pressures[172]. Cost Management and Profitability - The fluctuation in feed raw material prices significantly impacts the company's overall performance, with rising costs due to U.S.-China trade relations and tightening global soybean supply[5]. - The company emphasizes the importance of effectively passing on rising costs to downstream customers to maintain profitability[5]. - The company aims to enhance breeding efficiency and reduce costs to maintain profitability amid fluctuating pig prices[85]. - Selling expenses decreased by approximately ¥161,993,000, a decline of about 21.68% year-on-year[34]. - Management expenses were reduced by ¥71,496,500, representing a decrease of approximately 14.24%[34]. - The gross profit margin for the feed and veterinary industry was 20.07%, with a decrease of 0.53% year-on-year[59]. Research and Development - The number of core R&D personnel reached 1,400, contributing to the company's competitive edge in technology and innovation[41]. - The company has established multiple national-level R&D institutions, enhancing its technological innovation capabilities in the agricultural sector[42]. - Research and development investment amounted to CNY 178.33 million, a decrease of 18.66% compared to the previous year[56]. - The company applied for 16 new patents and was granted 50 patents in the first half of 2019, along with 41 new plant variety rights applications[52]. - The company aims to enhance its research and development efforts, focusing on innovative agricultural technologies[196]. Risk Management - The company faces risks from natural disasters and seasonal pests that could adversely affect seed production and sales[7]. - The company has implemented a strict three-level epidemic prevention system to mitigate the risks of major animal diseases, such as African swine fever[7]. - The company has a robust epidemic prevention system in place, but still faces risks if severe outbreaks occur near production areas[6]. - The company is facing risks from raw material price fluctuations, particularly in feed ingredients due to trade tensions[82]. Market Expansion and Strategy - The company is actively increasing its shareholding in pig farming platform companies, with ownership stakes ranging from 50.29% to 88.45% in various regional companies[49]. - The company is focusing on sustainability initiatives, aiming to reduce its carbon footprint by 25% over the next five years[115]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product portfolio[121]. - The company is actively pursuing market expansion strategies, with a focus on increasing its presence in the agricultural technology sector[119]. - The company plans to expand its market presence and invest in new product development to enhance competitiveness[196]. Shareholder and Corporate Governance - The company will not distribute cash dividends, issue bonus shares, or convert reserves into share capital[9]. - The company has fulfilled all commitments made by its actual controller and shareholders during the reporting period[91]. - The company did not experience any penalties or rectification situations during the reporting period[98]. - The company has not undergone any bankruptcy reorganization during the reporting period[95]. - The company has no major litigation or arbitration matters during the reporting period[96]. Environmental and Social Responsibility - The company has implemented a poverty alleviation model that includes providing 2 breeding pigs to each paired impoverished household, ensuring a fixed annual income of CNY 3,000 for these households[139]. - In the first half of 2019, the company allocated CNY 3.15 million for poverty alleviation efforts[141]. - The company’s major environmental projects have achieved zero emissions and resource utilization, impacting an area of 790 hectares[138]. - The company has established a comprehensive environmental risk identification and response mechanism to ensure compliance with local environmental regulations[138].

Financial Performance - The company's operating revenue for Q1 2019 was ¥4,057,485,579.82, a decrease of 11.82% compared to ¥4,601,386,528.69 in the same period last year[4]. - The net profit attributable to shareholders was -¥38,848,239.65, representing a decline of 121.48% from ¥180,869,236.01 in the previous year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥49,904,960.40, down 129.40% from ¥169,724,203.31 year-on-year[4]. - The basic earnings per share for the reporting period was -¥0.01, down 125.00% from ¥0.04 in the same period last year[4]. - The diluted earnings per share also stood at -¥0.01, reflecting a 125.00% decline from ¥0.04 year-on-year[4]. - Total profit decreased by CNY 254.66 million, a decline of 111.97%, primarily due to losses in the pig farming business[12]. - The net profit for Q1 2019 was a loss of CNY 54,439,468.25, compared to a profit of CNY 199,289,538.67 in Q1 2018[30]. - The total comprehensive income for the current period was -¥169,643,535.83, compared to ¥6,843,633.43 in the previous period[34]. Cash Flow - The net cash flow from operating activities improved to -¥234,469,669.53, a 68.14% increase compared to -¥736,025,173.13 in the same period last year[4]. - The total cash inflow from operating activities was ¥3,716,145,336.78, a decrease from ¥4,096,354,072.43 in the previous period[36]. - The total cash outflow from operating activities was ¥3,950,615,006.31, down from ¥4,832,379,245.56 in the previous period[36]. - The net cash flow from operating activities was -6,898,370.47 CNY, compared to 120,723,135.81 CNY in the previous period, indicating a significant decline[38]. - The company reported a total cash outflow of 942,250,494.68 CNY from operating activities, compared to 2,111,217,828.71 CNY in the previous period[38]. Assets and Liabilities - The total assets at the end of the reporting period were ¥17,474,130,869.14, a decrease of 3.44% from ¥18,095,720,578.33 at the end of the previous year[4]. - The net assets attributable to shareholders at the end of the reporting period were ¥9,764,816,512.96, a slight decrease of 0.14% from ¥9,778,885,025.66 at the end of the previous year[4]. - Total liabilities as of March 31, 2019, were CNY 6,789,776,434.98, a decrease of 8.0% from CNY 7,381,368,275.95[23]. - The company's total assets decreased to CNY 17,474,130,869.14 from CNY 18,095,720,578.33, reflecting a decline of 3.4%[24]. - Total liabilities decreased to CNY 4,174,612,664.34 in Q1 2019 from CNY 4,634,363,968.35 in the same period last year[27]. Shareholder Information - The company reported a total of 121,313 common shareholders at the end of the reporting period[7]. - The equity attributable to shareholders of the parent company was CNY 9,764,816,512.96, slightly down from CNY 9,778,885,025.66[24]. Expenses - Research and development expenses for Q1 2019 were CNY 73,806,186.46, a decrease of 19.6% compared to CNY 91,832,215.51 in Q1 2018[29]. - Research and development expenses for the current period were ¥10,614,918.45, down 45% from ¥19,291,866.14 in the previous period[32]. - Financial expenses increased by CNY 13.76 million, a growth of 32.30%, mainly due to increased financing interest expenses[13]. Investment and Financing Activities - The company plans to repurchase and cancel 7.10 million shares of unvested restricted stock due to non-compliance with incentive conditions[15]. - The company reported a decrease in cash received from financing activities by CNY 279.12 million, a decline of 186.20%, mainly due to reduced short-term financing[14]. - The net cash flow from investing activities was -165,862,339.32 CNY, compared to -1,091,710,737.49 CNY in the previous period, showing an improvement[38]. - Total cash inflow from financing activities was 93,685,151.92 CNY, significantly lower than 1,655,000,000.00 CNY in the previous period[39]. Other Financial Metrics - The weighted average return on equity was -0.40%, a decrease of 2.15% compared to 1.75% in the previous year[4]. - The fair value of financial assets decreased by CNY 76.21 million, primarily due to losses in futures trading[18]. - The company had no violations regarding external guarantees during the reporting period[19].

Financial Performance - The company's operating revenue for 2018 was ¥19,302,066,717.55, representing a 2.99% increase from ¥18,741,738,574.13 in 2017[18]. - The net profit attributable to shareholders for 2018 was ¥506,911,261.57, a decrease of 59.93% compared to ¥1,265,211,910.87 in 2017[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥117,044,006.53, down 88.26% from ¥996,819,640.23 in 2017[18]. - The net cash flow from operating activities increased by 49.29% to ¥1,067,467,486.86 in 2018 from ¥715,022,801.00 in 2017[18]. - The total assets at the end of 2018 were ¥18,095,720,578.33, a decrease of 6.03% from ¥19,257,822,745.27 at the end of 2017[18]. - The net assets attributable to shareholders at the end of 2018 were ¥9,778,885,025.66, down 4.28% from ¥10,216,472,825.41 at the end of 2017[18]. - The basic earnings per share for 2018 was ¥0.12, a decrease of 61.29% from ¥0.310 in 2017[18]. - The diluted earnings per share for 2018 was also ¥0.12, reflecting the same percentage decrease as basic earnings per share[18]. - The company's overall gross profit margin for 2018 was 18.70%, a decrease of 5.47 percentage points year-on-year, with feed products' gross margin at 19.45% and breeding products' gross margin at -6.79%[42]. - The company reported a significant non-recurring gain from the disposal of non-current assets amounting to ¥347,026,011.92 in 2018[21]. Pig Farming Sector - In 2018, the company sold 1.68 million pigs, including those from eight affiliated breeding platform companies, indicating a significant increase in revenue contribution from the pig farming sector[7]. - The outbreak of African swine fever in the second half of 2018 significantly impacted the pig farming industry, leading to a sharp reduction in production capacity across the sector[6]. - The company plans to continue increasing its investment in pig farming, with a focus on expanding its breeding scale to capitalize on industry opportunities[8]. - The company anticipates that pig prices will enter an upward cycle in the second half of 2019, following significant capacity reductions in the industry[8]. - The company reported a loss of approximately 260 million yuan in its pig farming business, significantly impacting the net profit[25]. - The African swine fever outbreak has accelerated the industry's capacity reduction, with a significant decline in the number of breeding sows and overall pig inventory[28]. - The company has established eight major pig farming platforms across China, with a total of 84 tier-three pig farming companies and a land reserve for nearly 30 million pigs, indicating strong future production capacity[41]. - In 2018, the company achieved total revenue from pig farming of CNY 1.318 billion, a year-on-year increase of 29.44%[41]. Feed Business - In 2018, the company's feed business revenue accounted for 86.67% of total revenue, while pig farming and seed business contributed 6.90% and 2.04% respectively[23]. - The total sales volume of pig feed in 2018 was 374.25 million tons, representing a year-on-year growth of 1.38%, but the gross margin decreased by approximately 3.58 percentage points due to raw material price fluctuations[25]. - The feed sales revenue was CNY 1,666,956.43 million, accounting for 86.67% of the main business revenue, with a sales volume of 459.75 million tons, up 3.56% year-on-year[40]. - The gross profit margin for feed products was 19.45%, reflecting a decrease of 3.01% compared to the previous year[48]. Research and Development - The company launched 107 new patent applications and received 79 patent grants in 2018, with a total of 193 plant variety rights granted[35]. - The company’s R&D efforts included 22 livestock technology projects and 26 crop technology projects, with a focus on green and safe nutrition technologies[43]. - The company holds 329 effective invention patents and 130 authorized plant variety rights, reflecting its commitment to innovation and technology development[43]. - The company has a workforce of 17,230, including over 1,500 core R&D personnel, enhancing its competitive edge in technology and innovation[33]. - The total R&D investment amounted to ¥494,391,367.90, which is 2.56% of total revenue, down from 2.81% the previous year[59]. Market Expansion and Strategy - The company is focusing on global integration of resources and results to develop competitive new products and services in agricultural technology[34]. - The company is actively pursuing market expansion strategies, targeting new regions with a projected increase in customer acquisition by 15%[123]. - The company aims to increase its market share by 10% through targeted marketing campaigns and customer engagement initiatives[123]. - The company is focusing on expanding its market presence, with new contracts signed in various regions, including 1,000 million from Changde and 2,000 million from Zhengzhou[125]. - The company plans to enhance its digital platform to improve customer engagement, with an investment of 10 million allocated for this initiative[129]. Financial Management and Investments - The company does not plan to distribute cash dividends or issue bonus shares for the year[8]. - The company has received approval for its genetically modified soybean DBN-09004-6 in Argentina and is pursuing import permits in other major markets[94]. - The company will strengthen its financial management and explore various financing options, including corporate bonds and bank loans, to support the pig farming sector[93]. - The company has a total of 120,304.77 million in other financial products from its own funds, with no overdue amounts[140]. - The company reported a total of 17,000 million in other types of entrusted financial management sourced from raised funds, with no overdue amounts[140]. Social Responsibility and Community Engagement - The company has made significant contributions to social responsibility, aligning its business strategies with national poverty alleviation goals[145]. - The company has established a cooperative model that pairs family farms with impoverished households, providing financial support and resources, including two breeding pigs per household, ensuring a fixed annual income of 3,000 yuan[146]. - The company has developed a technology promotion poverty alleviation model, utilizing a nationwide service network to deliver agricultural innovations and training to farmers, enhancing production efficiency and income[147]. - The company has invested a total of 756.53 million CNY in 13 poverty alleviation projects focused on agricultural and forestry industry development[153]. Governance and Compliance - The company has established a comprehensive internal control system to enhance governance and operational efficiency[195]. - The company has maintained a continuous relationship with the auditing firm Ruihua for 6 years, with an audit fee of 2.4 million yuan for the current period[111]. - The company has not faced any penalties or rectification issues during the reporting period[113]. - The company has not undergone any bankruptcy restructuring during the reporting period[112]. - The board of directors consists of 5 members, including 2 independent directors, complying with legal and regulatory requirements[198].

Financial Performance - Operating revenue for the reporting period was CNY 5,144,865,484.55, reflecting a year-on-year increase of 2.89%[8] - Net profit attributable to shareholders decreased by 47.52% to CNY 440,585,469.77 year-to-date[8] - The basic earnings per share for the reporting period was CNY 0.08, a decrease of 47.53% compared to the same period last year[8] - The weighted average return on equity was 3.24%, down by 4.51% year-on-year[8] - The company reported a significant decline in net profit due to a 79.04% drop in net profit after deducting non-recurring gains and losses[8] - The estimated net profit attributable to shareholders for 2018 is projected to be between CNY 50,608.48 million and CNY 88,564.83 million, representing a decrease of 30% to 60% compared to 2017's net profit of CNY 126,521.19 million[32] - The company expects to report a positive net profit for 2018, indicating no turnaround from a loss situation[31] Cash Flow and Investments - Net cash flow from operating activities surged by 162.93% to CNY 889,551,338.50[8] - Cash received from investment activities increased by CNY 3,345.45 million, a growth of 6433.55%, mainly from the transfer of equity in joint ventures[22] - The total investment in stocks amounted to 613,740,915, with a fair value change loss of -32,186,821.66, resulting in a year-end amount of 621,838,879[34] - The company reported a total of 1,085,279,155.81 in investments, with a fair value change loss of -31,435,019.12 during the reporting period[34] Shareholder Information - The total number of shareholders at the end of the reporting period was 111,086[13] - Major shareholder Shao Genhuo holds 41.25% of the shares, with a total of 1,750,382,283 shares[13] - The company repurchased 72,675,176 shares, accounting for 1.71% of the total share capital, with a total payment of CNY 306.53 million[25] - The company has been repurchasing its shares through centralized bidding, with announcements made on multiple dates in 2018[27][28] Asset Management - Total assets increased by 1.31% to CNY 19,510,485,009.21 compared to the end of the previous year[8] - Cash and cash equivalents decreased by CNY 1,607.10 million, a decline of 42.43%, primarily due to the company's investment in financial products and increased payments[18] - Accounts receivable increased by CNY 957.84 million, a growth of 68.81%, mainly due to higher credit limits extended to reputable clients facing short-term cash flow difficulties[18] - Other current assets rose by CNY 604.09 million, a growth of 100.86%, attributed to the investment of temporarily idle funds in financial products[18] - Long-term equity investments increased by CNY 956.49 million, a growth of 70.58%, due to changes in ownership percentages and additional investments in joint ventures[18] Expenses and Liabilities - Management expenses for the first nine months of 2018 increased by CNY 189.65 million, a growth of 31.60%, mainly due to higher stock incentive expenses[21] - Financial expenses rose by CNY 71.68 million, a growth of 66.49%, primarily due to increased financing and corresponding interest expenses[21] - The company’s short-term borrowings repayment increased by CNY 690.26 million, a growth of 65.61%, due to an increase in repayments of maturing short-term loans[23] Business Outlook - The company anticipates significant losses in its pig farming business due to fluctuations in pig prices, impacting overall profitability[32] - The sales growth of the company's pig feed business is expected to slow down, with a decline in gross profit margin compared to the previous year[32] - High costs associated with restricted stock incentive plans are expected to have a substantial impact on the company's performance this year[32] Compliance and Governance - The company has committed to maintaining the independence of its assets, business, personnel, finance, and organization[29] - The company has made various commitments regarding financial assistance and compliance with regulations, ensuring no conflicts of interest with shareholders[30] - The company has no violations regarding external guarantees during the reporting period[35] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[36] - The total amount of entrusted financial management was 251,448.63 million, with no overdue amounts[38] - The company utilized self-owned funds for 76,336 in bank financial products and 8,000 in broker financial products[38] - The company has a remaining balance of 83,864.36 million in entrusted financial management[38] - There were no high-risk entrusted financial management situations that could lead to impairment during the reporting period[38] Employee Stock Ownership - The company is actively promoting its employee stock ownership plan, which was approved by the board and shareholders in July 2018[26] - The company has transitioned the management of its employee stock ownership plan from Huatai Securities to self-management[26] Investor Relations - The company conducted an on-site investigation on July 16, 2018, with institutional investors[38]

Financial Performance - The company's operating revenue for the first half of 2018 was ¥9,073,372,471.54, an increase of 8.21% compared to ¥8,384,792,664.80 in the same period last year[22]. - The net profit attributable to shareholders decreased by 80.18% to ¥103,991,719.49 from ¥524,664,427.01 year-on-year[22]. - The net profit after deducting non-recurring gains and losses fell by 92.18% to ¥36,435,592.88 compared to ¥466,183,230.50 in the previous year[22]. - The company reported a net cash flow from operating activities of -¥597,252,236.43, worsening by 50.84% from -¥395,955,682.53 in the same period last year[22]. - The total assets at the end of the reporting period were ¥18,993,477,787.64, a decrease of 1.37% from ¥19,257,822,745.27 at the end of the previous year[22]. - The company achieved total revenue of CNY 907.34 million in the first half of 2018, an increase of 8.21% year-on-year[51]. - The company's net profit attributable to shareholders decreased by 80.18% year-on-year to CNY 103.99 million, primarily due to lower pig market prices and increased costs[51]. - The feed sales revenue reached CNY 773.68 million, a year-on-year growth of 5.66%, with total feed sales volume of 212.42 thousand tons, up 7.62%[52]. - The company reported a significant increase in pig revenue, which rose by 69.34% year-on-year to CNY 68.20 million, with a total of 586.6 thousand pigs sold[52]. Operational Challenges - The company reported a significant risk related to the supply and price fluctuations of key feed raw materials, which could adversely affect production costs and profit margins if prices rise significantly[6]. - The cyclical volatility of commodity pig prices impacts the company's gross margin, which aligns with industry trends; a substantial decline in pig sales prices could lead to decreased performance in the pig farming business[8]. - The company faces risks from major epidemics and natural disasters that could disrupt feed production and sales, emphasizing the need for enhanced control over raw materials and improved product quality[9]. - The company experienced a decline in overall feed gross margin by approximately 3.05 percentage points due to rising raw material prices[34]. - The company anticipates increased losses in its pig farming business due to the impact of pig prices, along with a slowdown in sales growth and a decline in gross profit margin for its feed business[98]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment rather than shareholder payouts[10]. - The company is developing a comprehensive online pig farming management platform, "Pig Internet," aimed at providing integrated solutions for pig farmers[15]. - The company has established "Agricultural Credit Network," a comprehensive service platform for customers, facilitating various agricultural management needs[15]. - The company aims to stabilize its operational performance by improving pricing power and service capabilities in response to market challenges[9]. - The company’s financial report emphasizes the importance of strategic procurement to buffer against rising raw material costs[6]. - The company is implementing strategic procurement and raw material reserves to mitigate the impact of rising raw material prices on its operations[100]. - The company is enhancing its core raw material technology research and improving product quality to stabilize operational performance and mitigate risks[102]. Investments and Projects - The company has established partnership platforms in key breeding areas, promoting integrated farming and driving sales of feed, veterinary drugs, and vaccines[41]. - The company has invested a total of 99,449.05 million in various projects, with an actual investment of 14,389.97 million during the reporting period[89]. - The company has completed the construction of a 90,000-ton feed production line with a total investment of 992 million, achieving 100% of the planned investment[89]. - The company has faced delays in several projects due to land acquisition issues and regulatory changes, impacting the expected progress and benefits[83]. - The company has made non-proportional capital increases in several subsidiaries, including Wuhan Green Giant Agricultural Co., Ltd. and Shaanxi Changnong Kangmu Agricultural Development Co., Ltd.[97]. Employee and Management - The company has a strong talent pool of 18,534 employees, including over 1,700 core R&D personnel, enhancing its innovation capabilities[45]. - The company’s core research and development team consists of over 1,700 members, including nearly 100 PhDs and 700 master's degree holders[56]. - The company is planning to implement an employee stock ownership plan to enhance its incentive mechanism[116]. - The company’s management is committed to ensuring the accuracy and completeness of financial reporting, with key personnel affirming the integrity of the half-year report[4]. Guarantees and Financial Risks - The total external guarantee amount approved during the reporting period is CNY 156,192.8 million, with an actual guarantee amount of CNY 46,454.51 million[132]. - The company has provided guarantees totaling 10,000 million for various clients, with a specific guarantee amount of 592 million due on May 30, 2018[130]. - The company has not fulfilled some of its guarantee obligations, indicating potential financial risk[138]. - The total approved guarantee amount at the end of the reporting period was 432,805.38 million, with an actual guarantee balance of 315,975.22 million[137]. Social Responsibility - The company invested a total of 210.28 million yuan in poverty alleviation projects in the first half of 2018, with 56.02 million yuan allocated for educational support, benefiting 2,024 students[151]. - The company helped 2,920 registered impoverished individuals to escape poverty through various initiatives[152]. - The company implemented seven agricultural and forestry poverty alleviation projects, with a total investment of 210.28 million yuan[152]. - The company aims to promote the "Three Hundred" project, which includes helping 100 counties, investing in 100 projects, and lifting 1 million farmers out of poverty[144]. Environmental Initiatives - The company has established a comprehensive environmental risk identification and response mechanism to ensure legal and reasonable operation of its wastewater discharge[141]. - The company’s pig farms utilize an ecological recycling model, achieving zero emissions and resource utilization over an area of 790 hectares[141].