山东仙坛股份有限公司 2017 年第三季度报告正文 证券代码：002746 证券简称：仙坛股份 公告编号：2017-038 山东仙坛股份有限公司 2017 年第三季度报告正文 2017 年 10 月 1 山东仙坛股份有限公司 2017 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人王寿纯、主管会计工作负责人许士卫及会计机构负责人(会计主 管人员)王斌声明：保证季度报告中财务报表的真实、准确、完整。 2 山东仙坛股份有限公司 2017 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,584,686,608.16 | 2,485,259,525.95 | | 4.00% | | ...

山东仙坛股份有限公司 2017 年半年度报告全文 山东仙坛股份有限公司 2017 年半年度报告 2017 年 08 月 1 山东仙坛股份有限公司 2017 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和 连带的法律责任。 公司负责人王寿纯、主管会计工作负责人许士卫及会计机构负责人(会计主 管人员)王斌声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本报告的董事会会议。 公司需遵守《深圳证券交易所行业信息披露指引第 1 号——上市公司从事 畜禽、水产养殖业务》的披露要求 1、禽类疫情及重大自然灾害发生引致的风险 鸡在饲养过程中会发生疫病，包括禽流感或其他类似疫症，因此，公司经 营过程中将会面临鸡发生疫病和养殖行业爆发大规模疫情传播导致的风险。具 体包括：（1）鸡因感染疾病死亡，鸡只出栏量下降直接影响公司生产经营业绩； （2）疫病发生后，公司需对养殖场净化，净化过程增加生产成本；（3）疫情传 播开始，公司需要增加防疫投入，包括实施强制疫苗接种、隔离甚至 ...

[Important Notice](index=2&type=section&id=First%20Section%20Important%20Notice) The company's board of directors, supervisory board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities, with all directors attending the board meeting to review this report - Company management guarantees the quarterly report content is true, accurate, and complete, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's head, the person in charge of accounting, and the head of the accounting department all declare to guarantee the truthfulness, accuracy, and completeness of the financial statements[5](index=5&type=chunk) [Company Overview](index=3&type=section&id=Second%20Section%20Company%20Overview) This chapter outlines the company's core financial data and shareholder structure for the first quarter of 2017, showing year-on-year revenue growth but a decline in net profit, with highly concentrated shareholding by the controlling shareholders [Key Accounting Data and Financial Indicators](index=3&type=section&id=II.I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2017, the company's operating revenue was CNY 465.53 million, up 6.96% year-on-year, but net profit attributable to shareholders was CNY 15.76 million, down 22.44%, with non-recurring net profit declining by 62.70%, while net cash flow from operating activities significantly increased by 169.98% | Indicator | Current Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 465,534,788.07 | 435,249,767.17 | 6.96% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | 15,764,538.47 | 20,325,634.23 | -22.44% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses (CNY) | 7,014,771.75 | 18,807,191.81 | -62.70% | | Net Cash Flow from Operating Activities (CNY) | 15,583,754.50 | -22,268,852.23 | 169.98% | | Basic Earnings Per Share (CNY/share) | 0.09 | 0.13 | -30.77% | | Total Assets (CNY) | 2,516,794,165.08 | 2,485,259,525.95 | 1.27% (vs. end of prior year) | | Net Assets Attributable to Shareholders of Listed Company (CNY) | 2,069,377,972.32 | 2,053,613,433.85 | 0.77% (vs. end of prior year) | - Total non-recurring gains and losses for the period amounted to **CNY 8.75 million**, primarily from investment income on wealth management products (**CNY 6.98 million**) and government subsidies (**CNY 2.05 million**)[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=II.II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) As of the end of the reporting period, the company had 27,713 common shareholders, with controlling shareholder Wang Shouchun and his spouse Qu Lirong collectively holding 55.09% of the shares, indicating a highly concentrated equity structure - At the end of the reporting period, the company had **27,713** common shareholders[11](index=11&type=chunk) - The company's controlling shareholder and de facto controller, Wang Shouchun, holds **28.69%**, and his spouse, Qu Lirong, holds **26.40%**, with both acting in concert[11](index=11&type=chunk)[12](index=12&type=chunk) - Among the top ten shareholders, some shares held by Wang Kegong and He Chuanhu are pledged[11](index=11&type=chunk) [Significant Matters](index=6&type=section&id=Third%20Section%20Significant%20Matters) This chapter details the reasons for changes in key financial data during the reporting period and provides a performance forecast for the first half of 2017, anticipating a significant year-on-year decline in net profit due to market conditions, with no major commitments or illegal guarantees reported [Analysis of Changes in Key Financial Data and Reasons](index=6&type=section&id=III.I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, several financial indicators changed significantly, with prepayments surging by 4306.41% due to increased raw material prepayments, short-term borrowings decreasing by 41.67% due to repayment, investment income rising by 835.74% from wealth management products, and operating cash flow improving while financing cash flow decreased due to loan repayments - Prepayments at period-end surged by **4,306.41%** compared to the beginning of the year, primarily due to increased prepayments for major raw materials like corn[15](index=15&type=chunk) - Short-term borrowings at period-end decreased by **41.67%** compared to the beginning of the year, leading to a **177.56%** year-on-year reduction in financial expenses and a **376.15%** decrease in net cash flow from financing activities[15](index=15&type=chunk)[17](index=17&type=chunk) - Investment income increased by **835.74%** year-on-year, mainly due to an increase in wealth management products during the current period[16](index=16&type=chunk) [2017 Half-Year Performance Forecast](index=6&type=section&id=III.IV.%20Forecast%20of%20Operating%20Performance%20for%20January-June%202017) The company forecasts a significant decline in net profit attributable to shareholders for January-June 2017, expecting to earn between CNY 20 million and CNY 50 million, representing a year-on-year decrease of 34.54% to 73.82%, primarily due to rising feed costs and falling chicken product prices | Item | Change Range | | :--- | :--- | | Change in Net Profit Attributable to Parent Company Shareholders (Jan-Jun 2017) | -73.82% to -34.54% | | Net Profit Attributable to Parent Company Shareholders (Jan-Jun 2017) Range (CNY) | 20,000,000 to 50,000,000 | | Net Profit Attributable to Parent Company Shareholders (Jan-Jun 2016) (CNY) | 76,382,600 | - The primary reason for performance change is the impact of the overall market environment, with expected increases in feed costs and a year-on-year decline in chicken product prices, leading to a decrease in operating performance[20](index=20&type=chunk) [Other Significant Matters](index=6&type=section&id=III.%20Other%20Significant%20Matters) During the reporting period, the company had no overdue unfulfilled commitments, illegal external guarantees, or non-operating fund occupation by controlling shareholders, and no investor relations activities were conducted - The company had no overdue unfulfilled commitments, illegal external guarantees, or fund occupation by controlling shareholders during the reporting period[18](index=18&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - No investor relations activities such as research visits, communications, or interviews occurred during the reporting period[23](index=23&type=chunk)

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Item%201.%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Significant Risk Warnings](index=2&type=section&id=Significant%20Risk%20Warnings) The company faces major risks including poultry epidemics and natural disasters, product price fluctuations, raw material supply and price volatility, cooperative farming model risks, rising food safety standards, and underperforming fundraising projects, which could significantly impact its operations, cost control, and profitability - Poultry epidemics (e.g., avian influenza) and major natural disasters may lead to chicken deaths, increased production costs, and market demand contraction, adversely affecting company performance[4](index=4&type=chunk)[5](index=5&type=chunk) - The prices of the company's main products (white feather broiler chicken products) are subject to significant fluctuation risks due to market supply and demand, epidemics, and food safety incidents, potentially leading to performance decline or even losses[6](index=6&type=chunk) - Feed costs account for approximately **67% of main business costs**, with corn and soybean meal together exceeding **40%**, making significant fluctuations in these raw material prices directly impact production costs and operating performance[7](index=7&type=chunk) - The company's "company + base + farm" cooperative farming model faces risks if cooperative farms lose enthusiasm or engage in non-compliant farming, which would negatively affect production and operations[8](index=8&type=chunk)[9](index=9&type=chunk) - Food safety incidents or stricter national standards may result in product sales damage, brand image impact, and increased operating costs for the company[10](index=10&type=chunk) - The non-public offering's fundraising project for processed food faces market expansion risks, potentially leading to actual results differing from expectations[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Key Accounting Data and Financial Indicators](index=9&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2016, the company achieved explosive growth, with operating revenue increasing by **19.32%** and net profit attributable to shareholders soaring by **988.41%** to **CNY 246 million**, demonstrating strong profitability and cash generation, while total assets and net assets also significantly grew due to capital raised from a non-public offering 2016 Annual Key Financial Data | Indicator | 2016 | 2015 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 2,095,018,758.69 | 1,755,788,002.76 | 19.32% | | Net Profit Attributable to Shareholders (CNY) | 245,516,007.12 | 22,557,355.38 | 988.41% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 242,141,219.76 | 6,043,242.98 | 3,906.81% | | Net Cash Flow from Operating Activities (CNY) | 430,115,147.66 | 154,129,710.56 | 179.06% | | Basic Earnings Per Share (CNY/share) | 1.49 | 0.15 | 893.33% | | Weighted Average Return on Net Assets | 18.63% | 2.36% | 16.27% | | Total Assets (CNY) | 2,485,259,525.95 | 1,451,108,965.01 | 71.27% | | Net Assets Attributable to Shareholders (CNY) | 2,053,613,433.85 | 997,544,929.68 | 105.87% | 2016 Quarterly Key Financial Indicators (Unit: CNY) | Indicator | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 435,249,767.17 | 509,773,885.29 | 567,158,426.45 | 582,836,679.78 | | Net Profit Attributable to Shareholders | 20,325,634.23 | 56,056,939.51 | 102,081,188.64 | 67,052,244.74 | - The company's 2016 non-recurring gains and losses totaled **CNY 3.3748 million**, primarily from government subsidies and investment income[29](index=29&type=chunk)[31](index=31&type=chunk) [Company Business Overview](index=12&type=section&id=Item%203.%20Company%20Business%20Overview) [Main Business and Operating Model](index=12&type=section&id=Main%20Business%20and%20Operating%20Model) The company's main business is white feather broiler chicken farming and processing, having established a complete industrial chain from parent breeder chicken farming, chick hatching, feed production, commercial broiler farming, to slaughtering and processing, with commercial chicken farming primarily adopting a "company + base + farm" cooperative model under "nine unified" management to ensure product quality and safety - The company's main business covers parent breeder chicken farming, chick hatching, feed production, commercial broiler farming and slaughtering, chicken product processing and sales, with main products being commercial broilers and segmented frozen chicken products[34](index=34&type=chunk) - The company adopts an integrated industrial chain model, effectively ensuring supply at each stage, improving efficiency, and monitoring food safety[35](index=35&type=chunk) - Commercial chicken farming employs a "company + base + farm" cooperative model with "nine unified" management, where the company provides chicks, feed, medicine, etc., and reclaims mature chickens, paying farming fees to cooperative farms[37](index=37&type=chunk) [Industry Development and Company Position](index=13&type=section&id=Industry%20Development%20and%20Company%20Position) The company operates in the white feather broiler industry, with a value chain covering everything from breeder chicken farming to chicken product processing and sales, holding a significant position as a vice-chairman unit of the China Animal Agriculture Association and chairman unit of its Poultry Branch, and has received numerous honors such as "National Key Leading Enterprise in Agricultural Industrialization" and "China Well-known Trademark," serving as a premium supplier to renowned enterprises like KFC and McDonald's - The company's business covers the entire industrial chain from parent breeder chicken farming to chicken product processing and sales, enhancing its comprehensive competitiveness in food safety traceability[42](index=42&type=chunk) - The company holds multiple important positions in the industry, including vice-chairman unit of the China Animal Agriculture Association and chairman unit of its Poultry Branch, and has been awarded titles such as "National Key Leading Enterprise in Agricultural Industrialization" and "China Well-known Trademark"[46](index=46&type=chunk) - The company is a premium supplier to well-known fast-food and food processing enterprises in China, including KFC, McDonald's, Shuanghui, and Jinluo[47](index=47&type=chunk) [Core Competitiveness Analysis](index=15&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness is reflected in six aspects: the integrated industrial chain advantage, the unique "nine unified" cooperative farming model, superior ecological farming location advantage, leading technological advantage, excellent product quality and brand advantage, and stable high-quality customer resources - Integrated Operations: Business covers feed production, farming, slaughtering, and processing, achieving vertical integration of the industrial chain, enhancing market responsiveness and risk resistance[52](index=52&type=chunk) - Cooperative Farming Model: Adopts a "company + base + farm" model with "nine unified" management, effectively integrating the company's management advantages with farmers' breeding advantages, enabling rapid scale expansion[53](index=53&type=chunk) - Location Advantage: Farming bases are located in the Jiaodong Peninsula's disease-free animal demonstration zone, possessing geographical advantages for ecological farming and closed epidemic prevention[54](index=54&type=chunk) - Technological Advantage: Possesses core technologies such as healthy and efficient broiler farming, green nutritional feed formulations, and disease prevention and control, implementing full-process food safety control[55](index=55&type=chunk)[56](index=56&type=chunk) - Brand and Quality: Certified by multiple quality and food safety systems, awarded honors such as "China Well-known Trademark," and products certified as green food and halal food[57](index=57&type=chunk) - Customer Advantage: Possesses numerous long-term stable high-quality customer resources due to premium products and stable supply capacity[58](index=58&type=chunk) [Discussion and Analysis of Operations](index=17&type=section&id=Item%204.%20Discussion%20and%20Analysis%20of%20Operations) [Overview of Operations](index=17&type=section&id=Overview%20of%20Operations) In 2016, benefiting from industry capacity reduction and decreased grandparent breeder chicken imports, the white feather broiler market gradually recovered, allowing the company to seize opportunities by increasing capacity, boosting sales, and lowering farming costs, achieving significant performance growth with operating revenue reaching **CNY 2.095 billion** (up **19.32%**) and net profit attributable to shareholders soaring to **CNY 246 million** (up **988.41%**), while also extending its industrial chain through a non-public offering for a processed food project to enhance risk resistance - In 2016, white feather grandparent breeder chicken imports continuously declined for three years, leading to industry capacity reduction and gradual market recovery, creating favorable conditions for large-scale enterprises[61](index=61&type=chunk) 2016 Annual Operating Performance Summary | Indicator | Amount (CNY 10,000) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 209,501.88 | 19.32% | | Operating Profit | 24,658.79 | 2,143.44% | | Total Profit | 24,579.66 | 989.85% | | Net Profit Attributable to Shareholders | 24,551.60 | 988.41% | | Basic Earnings Per Share (CNY) | 1.49 | 893.33% | - The significant performance growth was primarily due to increased company capacity, higher sales volume, an overall increase in industry sales prices year-on-year, and reduced farming costs[63](index=63&type=chunk) - The company completed a non-public offering, raising funds for a processed food project aimed at extending the industrial chain and developing processed food products closer to end consumers, thereby enhancing profitability and risk resistance[62](index=62&type=chunk) [Main Business Analysis](index=17&type=section&id=Main%20Business%20Analysis) In 2016, the company's main business revenue was **CNY 2.095 billion**, a **19.32%** increase year-on-year, with chicken products contributing **94.87%** of the revenue; gross profit margins across all business segments significantly improved, with the farming industry's gross margin increasing from **13.3%** to **43.93%**, driven by rising sales prices and cost control, while physical sales of processed food, as a core business, saw a **10.08%** increase in volume [Revenue and Cost Analysis](index=18&type=section&id=Revenue%20and%20Cost%20Analysis) In 2016, the company's operating revenue reached **CNY 2.095 billion**, a **19.32%** year-on-year increase, with chicken products being the primary revenue source, accounting for **94.87%**; operating costs were **CNY 1.768 billion**, increasing by **5.80%**, a much slower rate than revenue growth, mainly due to effective raw material cost control, leading to significant improvements in gross profit margins for both food processing and farming, which increased by **9.87** and **30.63** percentage points respectively, while sales to the top five customers accounted for **33.01%** of total sales, indicating moderate customer concentration Operating Revenue Composition (2016) | Category | Amount (CNY) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **By Product** | | | | | Chicken Products | 1,987,614,628.17 | 94.87% | 18.96% | | Commercial Broilers and Others | 107,404,130.52 | 5.13% | 26.50% | | **By Region** | | | | | Domestic Sales | 2,092,163,449.98 | 99.86% | 19.16% | | Overseas Sales | 2,855,308.71 | 0.14% | 100.00% | Major Business Gross Profit Margin Changes | Industry Segment | 2016 Gross Profit Margin | Change from Previous Year | | :--- | :--- | :--- | | Food Processing | 14.34% | 9.87% | | Farming Industry | 43.93% | 30.63% | Operating Cost Composition (2016) | Industry Segment | Item | Amount (CNY) | Proportion of Operating Cost | | :--- | :--- | :--- | :--- | | Broiler Farming and Slaughtering/Processing | Raw Materials | 1,192,846,615.18 | 67.46% | | Broiler Farming and Slaughtering/Processing | Labor Wages | 175,478,369.31 | 9.92% | | Broiler Farming and Slaughtering/Processing | Other | 311,906,839.20 | 17.64% | - Sales to the top five customers accounted for **33.01%** of total annual sales, and purchases from the top five suppliers accounted for **31.46%** of total annual purchases, indicating no significant reliance on a single customer or supplier[76](index=76&type=chunk) [Expense Analysis](index=21&type=section&id=Expense%20Analysis) In 2016, the company maintained good control over its three major expenses, with selling and administrative expenses remaining largely consistent with the previous year, while financial expenses significantly decreased by **113.21%**, turning from positive to negative, primarily due to reduced interest expenses from lower borrowings Period Expense Changes (Unit: CNY) | Expense Item | 2016 | 2015 | Year-on-Year Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 17,424,871.70 | 16,898,138.20 | 3.12% | - | | Administrative Expenses | 53,941,780.00 | 51,910,351.25 | 3.91% | - | | Financial Expenses | -827,754.78 | 6,267,229.85 | -113.21% | Decrease in borrowings, leading to reduced interest expenses | [Cash Flow Analysis](index=22&type=section&id=Cash%20Flow%20Analysis) In 2016, the company's cash flow significantly improved, with net cash flow from operating activities increasing by **179.06%** year-on-year, mainly due to increased revenue and profitability; net cash flow from investing activities showed a substantial outflow, primarily for wealth management products and fixed asset investments; net cash flow from financing activities saw a significant inflow, mainly from the proceeds of a non-public share offering Major Cash Flow Statement Item Changes (Unit: CNY) | Item | 2016 | 2015 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 430,115,147.66 | 154,129,710.56 | 179.06% | | Net Cash Flow from Investing Activities | -852,129,611.01 | -125,005,352.05 | -581.67% | | Net Cash Flow from Financing Activities | 730,562,383.16 | -81,190,270.88 | 999.82% | | Net Increase in Cash and Cash Equivalents | 308,556,638.17 | -52,065,755.00 | 692.63% | - The significant increase in net cash flow from operating activities was primarily due to the company's increased revenue and substantial profit growth[79](index=79&type=chunk) - The significant decrease in net cash flow from investing activities was mainly due to increased investments in wealth management products and fixed assets during the year[80](index=80&type=chunk) - The significant increase in net cash flow from financing activities was primarily due to the proceeds from the non-public share offering during the year[80](index=80&type=chunk) [Analysis of Assets and Liabilities](index=23&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) As of the end of 2016, the company's total assets were **CNY 2.485 billion**, a **71.27%** increase year-on-year, with a significant change in asset structure as monetary funds' proportion rose to **16.34%** while fixed assets' proportion decreased from **46.40%** to **30.83%**, and short-term borrowings significantly reduced, indicating eased debt repayment pressure Major Balance Sheet Item Changes (Unit: CNY) | Item | Amount as of Dec 31, 2016 | Proportion of Total Assets | Amount as of Dec 31, 2015 | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 406,056,413.86 | 16.34% | 96,613,674.69 | 6.66% | 9.68% | | Inventories | 265,861,586.11 | 10.70% | 271,537,864.46 | 18.71% | -8.01% | | Fixed Assets | 766,178,968.21 | 30.83% | 673,353,477.13 | 46.40% | -15.57% | | Short-term Borrowings | 12,000,000.00 | 0.48% | 90,000,000.00 | 6.20% | -5.72% | [Analysis of Investment Status](index=23&type=section&id=Analysis%20of%20Investment%20Status) In 2016, the company raised a total of **CNY 837.76 million** through a non-public offering, with net proceeds of **CNY 826.4875 million**, primarily invested in a processed food project, a commercial chicken three-dimensional farming technology renovation project, and supplementary working capital; as of the end of the reporting period, **CNY 290.1643 million** had been utilized, with **CNY 547.5957 million** remaining unused, mainly for purchasing wealth management products - In 2016, the company raised a total of **CNY 837.76 million** through a non-public offering, with net proceeds of **CNY 826.4875 million**[89](index=89&type=chunk) Use of Committed Raised Funds Projects (Unit: CNY 10,000) | Committed Investment Project | Total Committed Investment of Raised Funds | Amount Invested in Current Period | Cumulative Amount Invested as of Period End | Investment Progress | | :--- | :--- | :--- | :--- | :--- | | Processed Food Project | 23,259 | 3,258.68 | 3,258.68 | 14.01% | | Commercial Chicken Three-dimensional Farming Technology Renovation Project | 52,517 | 17,885 | 17,885 | 34.06% | | Supplementary Working Capital | 8,000 | 7,872.75 | 7,872.75 | 98.41% | | **Total** | **83,776** | **29,016.43** | **29,016.43** | **-** | - As of the end of the reporting period, **CNY 547.5957 million** of raised funds remained unused, primarily for purchasing wealth management products and subsequent project investments[89](index=89&type=chunk)[92](index=92&type=chunk) [Outlook for Company's Future Development](index=27&type=section&id=Outlook%20for%20Company%27s%20Future%20Development) The company plans to continue leveraging its integrated operational advantages, expand its business scale, and extend downstream into the industrial chain to develop high-value-added products such as processed foods and convenience foods, building a terminal brand, with a goal to achieve over **120 million birds** annually within the next 3 years, and **260,000 tons** of annual slaughtering and processing within the next 5 years, along with supplying tens of thousands of tons of convenience and processed foods to enhance brand awareness and profitability - The company's strategic goal is to expand its business scale and extend into the end-consumer market, developing processed foods and convenience foods to build a terminal brand enterprise[100](index=100&type=chunk)[101](index=101&type=chunk) - Future 3-year target: Achieve over **120 million birds/year** in broiler output, slaughtering and processing, and optimized matching capacity[101](index=101&type=chunk) - Future 5-year target: Annual output of **120 million commercial broilers**, annual slaughtering and processing of **260,000 tons** of frozen segmented chicken, annual supply of **10,000 tons** of convenience foods, and **42,000 tons** of processed foods[101](index=101&type=chunk) - The company will enhance deep processing capabilities through introducing advanced equipment, improving processes, and product R&D, achieving diversified, serialized, and high-value-added products[103](index=103&type=chunk) [Important Matters](index=30&type=section&id=Item%205.%20Important%20Matters) [Profit Distribution and Capital Reserve to Share Capital Conversion](index=30&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion) The company's 2016 profit distribution plan proposes a cash dividend of **CNY 2.00** (tax inclusive) per 10 shares to all shareholders based on a total share capital of **181,840,201 shares**, totaling **CNY 36,368,040.20**, with no capital reserve to share capital conversion, representing **14.81%** of net profit attributable to shareholders for the year 2016 Annual Profit Distribution Plan | Item | Content | | :--- | :--- | | Dividend per 10 shares (CNY) (tax inclusive) | 2.00 | | Bonus shares per 10 shares (shares) | 0 | | Capitalization issue per 10 shares (shares) | 0 | | Share capital base for distribution plan (shares) | 181,840,201 | | Total cash dividend (CNY) (tax inclusive) | 36,368,040.20 | | Proportion of cash dividend to total profit distribution | 100.00% | Cash Dividends for the Past Three Years (Unit: CNY) | Dividend Year | Cash Dividend Amount (tax inclusive) | Ratio of Net Profit Attributable to Ordinary Shareholders | | :--- | :--- | :--- | | 2016 | 36,368,040.20 | 14.81% | | 2015 | 15,935,000.00 | 70.64% | | 2014 | 0.00 | 0.00% | [Major Asset Sale](index=26&type=section&id=Major%20Asset%20Sale) On September 30, 2016, the company sold properties, land, and some equipment located in Muping District, Yantai City, to Shandong Ronghua Food Group Co., Ltd. for **CNY 72 million**, with the proceeds used to increase the company's working capital, positively impacting its cash flow - On September 30, 2016, the company sold some properties, land, and equipment to Shandong Ronghua Food Group Co., Ltd. for **CNY 72 million**, with the proceeds used to supplement working capital[94](index=94&type=chunk) [Analysis of Major Holding and Participating Companies](index=27&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Shandong Xiantan Food Co., Ltd., a major subsidiary, performed strongly during the reporting period, achieving nearly **CNY 2 billion** in operating revenue and **CNY 68.3193 million** in net profit, making it a significant source of the company's profit Major Subsidiary Financial Situation (Unit: CNY) | Company Name | Main Business | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Xiantan Food Co., Ltd. | Food Processing | 344,400,425.12 | 274,485,700.68 | 1,999,970,380.66 | 69,253,401.90 | 68,319,311.73 | [Changes in Shares and Shareholder Information](index=55&type=section&id=Item%206.%20Changes%20in%20Shares%20and%20Shareholder%20Information) [Changes in Share Capital](index=55&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased by **22,490,201 shares** due to a non-public offering, rising from **159,350,000 shares** to **181,840,201 shares**, while the proportion of unrestricted shares increased from **24.98%** to **32.64%** due to the lifting of restrictions on some initial public offering shares - On September 22, 2016, **22,490,201 shares** from the company's non-public offering were listed, leading to an increase in total share capital[195](index=195&type=chunk) - On February 17, 2016, restrictions on **19,500,000 shares** of initial public offering shares were lifted[194](index=194&type=chunk) Share Structure Changes | Share Class | Quantity Before Change | Quantity After Change | Proportion After Change | | :--- | :--- | :--- | :--- | | Restricted Shares | 119,550,000 | 122,490,201 | 67.36% | | Unrestricted Shares | 39,800,000 | 59,350,000 | 32.64% | | **Total Shares** | **159,350,000** | **181,840,201** | **100.00%** | [Shareholder Information](index=57&type=section&id=Shareholder%20Information) As of the end of 2016, the company had **26,531** shareholders, with controlling shareholders and actual controllers Wang Shouchun and Qu Lirong jointly holding **55.09%** of shares, and the top ten shareholders, excluding the controlling shareholders, primarily consisting of institutional investors who entered through the non-public offering - The total number of ordinary shareholders at the end of the reporting period was **26,531**[200](index=200&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Percentage | Number of Shares Held at Period End | | :--- | :--- | :--- | | Wang Shouchun | 28.69% | 52,173,800 | | Qu Lirong | 26.40% | 48,000,000 | | First Capital Securities - Guosen Securities - Gongying Dayan Quantitative Private Placement Collective Asset Management Plan | 4.87% | 8,859,060 | | Wang Kegong | 2.47% | 4,500,000 | | He Chuanhu | 2.47% | 4,500,000 | - The company's controlling shareholder and actual controller, Wang Shouchun and Qu Lirong, are a married couple[201](index=201&type=chunk) [Directors, Supervisors, Senior Management, and Employees](index=62&type=section&id=Item%208.%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Employees) [D&S&SM Shareholding and Remuneration](index=62&type=section&id=D%26S%26SM%20Shareholding%20and%20Remuneration) During the reporting period, only Chairman and President Mr. Wang Shouchun held company shares, with **52,173,800 shares** at period-end, having increased his holdings by **123,800 shares** during the period, and the total pre-tax remuneration paid to directors, supervisors, and senior management in 2016 was **CNY 1.0681 million** - Chairman and President Wang Shouchun held **52,050,000 shares** at the beginning of the period, increased his holdings by **123,800 shares** during the period, and held **52,173,800 shares** at the end of the period[209](index=209&type=chunk) Remuneration of Selected Directors, Supervisors, and Senior Management (Unit: CNY 10,000) | Name | Position | Total Pre-tax Remuneration from Company | | :--- | :--- | :--- | | Wang Shouchun | Chairman, President | 19.06 | | Xu Shiwei | Director, Vice President, CFO, Board Secretary | 11.26 | | Wang Shouheng | Vice President | 11.26 | | Song Tao | Vice President | 11.26 | | **Total** | **--** | **106.81** | [Employee Information](index=66&type=section&id=Employee%20Information) As of the end of the reporting period, the company had a total of **4,466** employees, with production personnel constituting the largest proportion at **4,056** employees, and the vast majority, **4,202** employees, having a junior college education or below Employee Professional Composition | Professional Category | Number of Employees (people) | | :--- | :--- | | Production Personnel | 4,056 | | Technical Personnel | 228 | | Administrative Personnel | 137 | | Financial Personnel | 25 | | Sales Personnel | 20 | | **Total** | **4,466** | [Corporate Governance](index=68&type=section&id=Item%209.%20Corporate%20Governance) [Overview of Corporate Governance](index=68&type=section&id=Overview%20of%20Corporate%20Governance) During the reporting period, the company operated strictly in accordance with laws and regulations such as the "Company Law" and "Securities Law," with no significant discrepancies between its actual corporate governance status and relevant regulations of the China Securities Regulatory Commission; the company maintained independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing complete independent operating capabilities, and has established a sound corporate governance structure and internal control system to ensure the orderly conduct of all production and operating activities - The actual status of corporate governance has no significant discrepancies with the normative documents issued by the China Securities Regulatory Commission[238](index=238&type=chunk) - The company is separate from its controlling shareholder in terms of assets, business, personnel, finance, and organization, possessing independent and complete business operations and the ability to operate independently in the market[239](index=239&type=chunk) - The company's Board of Directors has established specialized committees including Audit, Nomination, Remuneration and Appraisal, and Strategy, providing professional opinions for decision-making[234](index=234&type=chunk) [Financial Report](index=75&type=section&id=Item%2011.%20Financial%20Report) [Audit Report](index=75&type=section&id=Audit%20Report) Shandong Hexin Certified Public Accountants (Special General Partnership) audited the company's 2016 financial statements and issued a standard unqualified audit opinion, concluding that the financial statements were prepared in all material respects in accordance with enterprise accounting standards, fairly reflecting the company's financial position as of December 31, 2016, and its operating results and cash flows for the year 2016 - The auditing firm was Shandong Hexin Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[256](index=256&type=chunk)[265](index=265&type=chunk) [Main Financial Statements](index=78&type=section&id=Main%20Financial%20Statements) As of the end of 2016, the company's total assets were **CNY 2.485 billion**, net assets attributable to the parent company were **CNY 2.054 billion**, and the asset-liability ratio was **17.32%**; in 2016, it achieved operating revenue of **CNY 2.095 billion** and net profit attributable to the parent company of **CNY 246 million**, with net cash flow from operating activities of **CNY 430 million**, demonstrating a healthy financial position, excellent profitability, and cash flow performance Consolidated Balance Sheet Major Items (Unit: CNY) | Item | Dec 31, 2016 | Dec 31, 2015 | | :--- | :--- | :--- | | Monetary Funds | 406,056,413.86 | 96,613,674.69 | | Inventories | 265,861,586.11 | 271,537,864.46 | | Fixed Assets | 766,178,968.21 | 673,353,477.13 | | **Total Assets** | **2,485,259,525.95** | **1,451,108,965.01** | | Short-term Borrowings | 12,000,000.00 | 90,000,000.00 | | **Total Liabilities** | **430,369,654.83** | **452,768,107.83** | | Net Assets Attributable to Parent Company | 2,053,613,433.85 | 997,544,929.68 | | **Total Liabilities and Owners' Equity** | **2,485,259,525.95** | **1,451,108,965.01** | Consolidated Income Statement Major Items (Unit: CNY) | Item | 2016 | 2015 | | :--- | :--- | :--- | | Total Operating Revenue | 2,095,018,758.69 | 1,755,788,002.76 | | Total Operating Costs | 1,852,638,061.54 | 1,749,748,832.28 | | Operating Profit | 246,587,922.41 | 10,991,486.70 | | Total Profit | 245,796,621.73 | 22,553,282.88 | | Net Profit | 245,196,516.89 | 22,553,282.88 | | Net Profit Attributable to Parent Company Shareholders | 245,516,007.12 | 22,557,355.38 | Consolidated Cash Flow Statement Major Items (Unit: CNY) | Item | 2016 | 2015 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 430,115,147.66 | 154,129,710.56 | | Net Cash Flow from Investing Activities | -852,129,611.01 | -125,005,352.05 | | Net Cash Flow from Financing Activities | 730,562,383.16 | -81,190,270.88 | | Net Increase in Cash and Cash Equivalents | 308,556,638.17 | -52,065,755.00 |

Financial Performance - Total assets increased by 65.30% to CNY 2,398,693,650.11 compared to the end of the previous year[9] - Net assets attributable to shareholders increased by 99.15% to CNY 1,986,561,189.10 compared to the end of the previous year[9] - Operating revenue for the period was CNY 567,158,426.45, a 37.32% increase year-on-year[9] - Net profit attributable to shareholders surged by 1,688.49% to CNY 102,081,188.64 compared to the same period last year[9] - Basic earnings per share reached CNY 0.64, reflecting a 1,500.00% increase year-on-year[9] - Cash flow from operating activities increased by 116.93% to CNY 256,612,589.47 year-to-date[9] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 11,127[13] - The largest shareholder, Wang Shouchun, holds 28.69% of the shares, totaling 52,173,800 shares[13] Cash and Receivables - The company reported a 912.85% increase in cash and cash equivalents due to stock issuance[17] - Prepaid accounts increased by 1,348.35% due to higher advance payments for key raw materials[18] - The ending balance of advance receipts increased by 136.31% compared to the beginning of the year, attributed to higher pre-receipts for chicken products[21] - The ending balance of employee compensation payable increased by 46.96% compared to the beginning of the year, due to increased accrual of employee compensation[21] - The ending balance of interest payable decreased by 85.93% compared to the beginning of the year, resulting from a reduction in short-term borrowings[21] - The ending balance of capital reserves increased by 209.78% compared to the beginning of the year, due to the issuance of new shares and an increase in share premium[21] Financial Expenses and Income - Financial expenses decreased by 76.29% compared to the same period last year, attributed to reduced short-term borrowings and lower loan interest rates[21] - Investment income increased by 69.22% compared to the same period last year, due to an increase in financial products[21] - The net cash flow from operating activities increased by 116.93% compared to the same period last year, driven by increased revenue and corresponding cash flow[21] - The net cash flow from investing activities decreased by 56.28% compared to the same period last year, due to increased investments[21] - The net cash flow from financing activities increased by 1726.17% compared to the same period last year, attributed to the issuance of new shares[21] Stock Price Stabilization Measures - The company plans to implement stock price stabilization measures due to the stock price being lower than the audited net asset value per share from the previous fiscal year[26] - The company will propose a profit distribution plan or capital reserve conversion to increase share capital within 10 trading days after the stabilization measures are triggered[26] - If the stock price remains below the audited net asset value per share for a continuous period, the company may repurchase shares using its own funds, with the repurchase amount not exceeding 50% of the net profit attributable to shareholders from the previous fiscal year[26] - The controlling shareholders are required to propose a plan to increase their shareholding if the stock price continues to be below the audited net asset value per share after the stabilization measures[28] - Directors and senior management may also buy shares to stabilize the stock price under similar conditions, with the purchase amount not exceeding 50% of their after-tax salary and cash dividends from the previous fiscal year[28] - The company emphasizes compliance with relevant laws and regulations during the implementation of these measures[28] - The stock price stabilization measures will be executed in a specific order, starting with profit distribution or capital reserve conversion[26] - The company will disclose the plans for share repurchase and controlling shareholder increases in shareholding within three trading days after the proposals are made[28] - The company commits to repurchase shares if any false statements or omissions are found in its IPO prospectus, with the repurchase price adjusted according to relevant regulations[28] - The company’s stock distribution must comply with listing conditions after any share repurchase or increase in shareholding by controlling shareholders[28] Profit Projections and Market Conditions - The estimated net profit attributable to shareholders for 2016 is projected to be between 200 million and 210 million RMB, representing a year-on-year increase of 786.63% to 830.96%[31] - The significant profit increase is attributed to a substantial decrease in feed raw material prices and a gradual recovery in chicken product prices compared to the previous year[31] - The net profit for 2015 attributable to shareholders was 22.5573 million RMB[31] Compliance and Governance - There are no violations regarding external guarantees during the reporting period[32] - There are no non-operating fund occupations by controlling shareholders or their affiliates during the reporting period[33] - The company has committed to not transferring shares during the lock-up period following its IPO[30] - The controlling shareholders have pledged to not interfere with the company's management and to protect the interests of all shareholders[30] - The company plans to increase its shareholding by at least 5 million RMB using its own funds within six months[30] - The company has conducted multiple institutional research activities throughout the year[34] - The company is focused on maintaining compliance with relevant laws and regulations regarding shareholding and management practices[30]

Financial Performance - The company's operating revenue for the first half of 2016 was CNY 945,023,652.46, representing a 4.53% increase compared to CNY 904,106,148.79 in the same period last year[21]. - The net profit attributable to shareholders of the listed company surged to CNY 76,382,573.74, a remarkable increase of 788.80% from CNY 8,593,939.09 in the previous year[21]. - The net profit after deducting non-recurring gains and losses reached CNY 78,148,988.48, reflecting a significant growth of 1,208.65% compared to CNY 5,971,711.45 in the same period last year[21]. - The net cash flow from operating activities was CNY 92,359,841.46, which is a 21.72% increase from CNY 75,881,097.19 in the previous year[21]. - Basic earnings per share increased to CNY 0.48, up 700.00% from CNY 0.06 in the same period last year[21]. - The company reported a total of CNY -1,766,414.74 in non-recurring gains and losses for the period[27]. - The company achieved operating revenue of CNY 945,023,652.46, a year-on-year increase of 4.53%[31]. - The net profit attributable to shareholders reached CNY 76,382,573.74, reflecting a significant year-on-year growth of 788.80%[31]. - The cost of sales decreased by 3.78% to CNY 825,886,906.82 compared to the previous year[34]. - Research and development expenses increased by 23.49% to CNY 2,514,600.53, indicating a focus on innovation[34]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,521,036,944.84, marking a 4.82% increase from CNY 1,451,108,965.01 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company rose to CNY 1,057,992,503.42, a 6.06% increase from CNY 997,544,929.68 at the end of the previous year[21]. - Total liabilities rose to CNY 461,919,656.56, compared to CNY 452,768,107.83, marking an increase of about 2.5%[131]. - Owner's equity totaled CNY 1,059,117,288.28, up from CNY 998,340,857.18, representing an increase of approximately 6.1%[131]. Cash Flow - The company's cash flow from operating activities was CNY 825,242,310.26, compared to CNY 1,010,873,193.57 in the previous year, indicating a decrease in cash inflow[143]. - The net cash flow from operating activities for the first half of 2016 was ¥92,359,841.46, an increase from ¥75,881,097.19 in the same period of 2015, representing a growth of approximately 21%[145]. - Total cash inflow from investment activities was ¥839,928,015.80, compared to ¥1,011,374,647.38 in the previous year, indicating a decrease of about 17%[145]. - The total cash and cash equivalents at the end of the period stood at ¥108,208,411.55, down from ¥234,108,497.20 at the end of the previous year, reflecting a decrease of approximately 54%[146]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for this reporting period[6]. - The profit distribution plan for 2015 was approved, with a cash dividend of 1.00 yuan per 10 shares, totaling 15,935,000 yuan, which was implemented on May 17, 2016[66]. - The company has no plans for cash dividends, stock bonuses, or capital reserve transfers for the semi-annual period[69]. - The company’s major shareholders made commitments to not transfer or manage their shares for 36 months post-listing, ensuring stability in shareholding[99]. Investments and Projects - The company plans to invest CNY 23.259 million in a cooked food processing project to enhance its product structure and increase revenue[71]. - The company will allocate CNY 52.517 million for the transformation of its chicken breeding technology to improve space utilization and reduce costs[71]. - The company has received approval for a non-public offering of up to 33,794,271 new shares to support its growth initiatives[36]. - The company is actively expanding its product line to include various ready-to-eat chicken products, enhancing its market adaptability[30]. Compliance and Governance - The company has confirmed that the cash dividend policy complies with the company's articles of association and shareholder resolutions[68]. - The company’s board confirmed that independent directors fulfilled their responsibilities and that minority shareholders' rights were adequately protected[68]. - The company has not reported any major litigation or asset transactions during the reporting period[72][74][76]. - The company has no ongoing commitments from shareholders that would affect its operations negatively[98]. Financial Reporting and Accounting - The financial report for the first half of 2016 was not audited[127]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the accuracy and completeness of its financial reporting[171]. - The company uses RMB as its functional currency for accounting purposes, reflecting its operational environment[174]. - The company confirms that the merger cost for non-same control enterprise mergers includes the fair value of assets, liabilities, and equity securities paid on the acquisition date[177]. Market Position and Strategy - The company is focusing on vertical integration in the chicken industry to strengthen its market position and enhance profitability[71]. - The company is leveraging its integrated supply chain to enhance food safety and traceability, strengthening its market position[40]. - The company has established a stable supply chain through integrated operations, resulting in a strong market presence and a large base of long-term quality customers[45].

Financial Performance - The company's operating revenue for Q1 2016 was ¥435,249,767.17, representing a 1.94% increase compared to ¥426,962,597.53 in the same period last year[9] - Net profit attributable to shareholders increased significantly to ¥20,325,634.23, a 732.56% rise from ¥2,441,341.75 year-on-year[9] - The net profit after deducting non-recurring gains and losses reached ¥18,807,191.81, marking a 1,358.05% increase from ¥1,289,889.13 in the previous year[9] - Basic earnings per share rose to ¥0.13, up 550.00% from ¥0.02 in the same quarter last year[9] - The net profit attributable to shareholders for the first half of 2016 is expected to range from 66 million to 70 million yuan, representing a year-on-year increase of 667.99% to 714.53%[28] - The increase in net profit is attributed to a significant decrease in feed raw material prices, which lowered the cost of raising broiler chickens[28] - The overall improvement in the white feather broiler chicken industry has contributed to the enhancement of the company's operating performance[28] Assets and Liabilities - The total assets at the end of the reporting period were ¥1,465,074,337.52, a 0.96% increase from ¥1,451,108,965.01 at the end of the previous year[9] - The net assets attributable to shareholders increased to ¥1,017,870,563.91, reflecting a 2.04% rise from ¥997,544,929.68 at the end of the last year[9] - Accounts receivable increased by 37.22% compared to the beginning of the year, primarily due to an increase in receivables from chicken product sales[17] - Prepayments surged by 1,565.44% compared to the beginning of the year, mainly due to increased prepayments for corn and other raw materials[18] Cash Flow - The cash flow from operating activities showed a negative net amount of ¥22,268,852.23, a decline of 194.71% compared to a positive cash flow of ¥23,512,322.04 in the same period last year[9] - Operating cash flow net decreased by 194.71% year-on-year, due to increases in accounts receivable and prepaid accounts[23] - Investment cash flow net decreased by 33.16% year-on-year, attributed to reduced investments[23] - The net cash flow from financing activities decreased by 95.17% compared to the previous year, attributed to reduced financing activities during the period[21] Expenses - Operating taxes increased by 76.17% year-on-year, attributed to a rise in rental income and corresponding tax liabilities[23] - Sales expenses rose by 75.13% year-on-year, mainly due to increased shipping costs[23] - Financial expenses decreased by 52.17% year-on-year, resulting from a reduction in short-term borrowings[23] Shareholder and Stock Management - The company plans to raise funds through a non-public offering for food processing projects and technology upgrades[22] - The non-public offering application was approved by the China Securities Regulatory Commission on March 23, 2016[23] - The company has committed to not transferring or managing shares held by major shareholders for 36 months post-IPO[24] - Major shareholders have pledged not to engage in competing businesses with the company in the future[24] - The company will initiate stock price stabilization measures if the closing price is below the audited net asset value per share for 20 consecutive trading days[25] - The company plans to propose a profit distribution or capital reserve transfer to stabilize stock prices, with a board meeting to be held within 5 trading days[25] - The amount used for share repurchase will not exceed 50% of the net profit attributable to the parent company's ordinary shareholders from the previous fiscal year[25] - If the stock price remains below the audited net asset value per share after implementing stabilization measures, the company will consider a share repurchase plan[25] - The company will ensure that the shareholding structure complies with listing conditions after any share repurchase[25] - The controlling shareholder may increase their stake through market transactions after stabilization measures are implemented[25] - The company is committed to maintaining investor confidence and protecting shareholder interests through these measures[25] - The implementation of profit distribution or capital reserve transfer must comply with relevant laws and regulations[25] - The company will disclose relevant information and follow necessary approval procedures for share repurchase[25] - The stock price stabilization measures will be executed in accordance with applicable laws and regulations[25] - The company plans to increase share repurchase measures if the stock price remains below the audited net asset value per share from the previous fiscal year[26] - The controlling shareholders committed to not intervene in the company's management activities and to fulfill their obligations to return profits to the company[27] - The company reported that the controlling shareholder, Wang Shuchun, plans to increase his shareholding by at least 5 million RMB within six months starting from July 10, 2015[27] - The company’s board and senior management are committed to maintaining the legal rights of all shareholders and ensuring compliance with relevant regulations[27] - The company has established a plan for stock incentive policies that will be linked to the execution of profit return measures[27] - The controlling shareholders are required to disclose their shareholding increase plans within three trading days after obtaining approval from regulatory authorities[26] - The company’s stock price stabilization measures will be initiated if the stock price remains below the audited net asset value for 10 consecutive trading days[26] - The company’s board of directors will propose a shareholders' meeting to initiate share repurchase measures if the prospectus is found to contain significant omissions or misleading statements[26] - The company’s senior management is restricted from transferring shares during their tenure and for six months after leaving their positions[27] - The company’s controlling shareholders have committed to not transferring or managing their shares for twelve months following the stock listing[27]

Financial Performance - The company's operating revenue for 2015 was approximately RMB 1.76 billion, an increase of 1.22% compared to RMB 1.73 billion in 2014[28]. - The net profit attributable to shareholders decreased by 49.13% to approximately RMB 22.56 million from RMB 44.34 million in 2014[28]. - The net profit after deducting non-recurring gains and losses fell by 83.54% to approximately RMB 6.04 million from RMB 36.71 million in 2014[28]. - The net cash flow from operating activities increased by 57.10% to approximately RMB 154.13 million compared to RMB 98.11 million in 2014[28]. - The total assets at the end of 2015 were approximately RMB 1.45 billion, a decrease of 3.15% from RMB 1.50 billion at the end of 2014[28]. - The basic earnings per share decreased by 59.46% to RMB 0.15 from RMB 0.37 in 2014[28]. - In 2015, the company achieved a total revenue of ¥1,755,788,002.76, representing a year-on-year growth of 1.22%[60]. - The net profit attributable to shareholders was ¥22,557,355.38, a decrease of 49.13% compared to the previous year[60]. - The company sold 98,234,955 broilers during the year, with a slaughter volume of 97,389,863[60]. - Chicken product sales accounted for 95.16% of total revenue, increasing by 7.63% year-on-year[64]. Cost Structure - The company reported that approximately 67% of its main business costs are attributed to feed costs, with corn and soybean meal accounting for over 40% of total costs[8]. - The company is exposed to risks related to raw material supply and price volatility, particularly for corn and soybean, which could increase production costs[8]. - The operating cost for chicken farming and slaughtering was ¥1,671,292,353.97, reflecting a year-on-year increase of 4.30%[73]. - The raw material cost for chicken products was ¥1,126,098,594.33, which constituted 70.27% of the total operating cost[74]. Business Strategy and Expansion - The company is investing in a cooked food processing project to extend its industry chain and enhance revenue, although market growth may not meet expectations[13]. - The company aims to achieve an annual output of over 120 million broilers in the next three years, optimizing production capacity across all segments including slaughtering and feed supply[103]. - The company plans to increase the variety of frozen chicken products from 120 to over 200 by improving processing capabilities and introducing advanced equipment[105]. - The company intends to expand its business scope by developing ready-to-eat products and establishing dedicated chicken product stores in supermarkets[102]. - The company will enhance its integrated operational model to mitigate market fluctuations and ensure stable production[101]. - The company has established three wholly-owned subsidiaries and a joint venture, indicating ongoing market expansion efforts[61]. Risk Management - The company faces risks from poultry epidemics, which could lead to decreased output and increased production costs due to necessary biosecurity measures[5]. - The company acknowledges the risk of price fluctuations in chicken products, which could significantly impact profitability if supply exceeds demand[7]. - The cooperative breeding model allows for rapid expansion of breeding scale while ensuring biosecurity risks are controllable[51]. - The company emphasizes food safety and quality standards, having established a comprehensive management system that complies with national regulations[11]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 1 RMB per 10 shares to all shareholders, based on a total share capital of 159,350,000 as of December 31, 2015[15]. - The cash dividend represents 70.64% of the net profit attributable to the company's ordinary shareholders, which is 22,557,355.38 yuan[124]. - The profit distribution plan for 2015 includes a cash dividend of 1.00 yuan per 10 shares, totaling 15,935,000 yuan[120]. - The total distributable profit for the year is 223,223,398.59 yuan, with the cash dividend accounting for 100% of the profit distribution[124]. Corporate Governance and Compliance - In 2015, the company strictly adhered to relevant laws and regulations, enhancing corporate governance and protecting shareholder rights, which improved governance levels[171]. - The company has not reported any changes in its asset and liability structure during the reporting period[188]. - The company did not experience any major litigation or arbitration matters during the reporting period[138]. - There were no significant accounting errors requiring retrospective restatement during the reporting period[134]. Production and Supply Chain - The company has established a complete industrial chain model covering parent stock breeding, chick incubation, feed production, broiler breeding, and chicken slaughtering and processing[39]. - The company's main business remains unchanged, focusing on breeding, hatching, feed production, and processing of broiler chickens[38]. - The company’s breeding bases are located in Yantai and Weihai, benefiting from ecological advantages and a favorable climate for chicken production[52]. - The company’s feed production is self-researched and produced, ensuring quality control throughout the supply chain[43]. Market and Customer Relations - The company’s chicken products are mainly supplied to the Northeast, North China, and eastern coastal regions of China[47]. - The total sales amount from the top five customers reached ¥542,685,253.34, accounting for 30.91% of the annual total sales[79]. - The largest customer, Shuanghui, contributed ¥164,859,218.65, representing 9.39% of the annual sales[79]. - Domestic sales comprised 100% of total revenue, with a slight increase of 1.29% from the previous year[64]. Human Resources and Social Responsibility - The company will enhance its human resources management by improving its compensation system and talent development programs, focusing on recruiting and training professionals in animal husbandry and veterinary fields[110]. - The company has a strong focus on social responsibility, ensuring employee rights and promoting harmonious labor relations through training and cultural activities[173]. - The company aims to support farmers and promote rural social progress through its "company + self-raised farms + farms" production model[109]. Financial Management and Investments - The company has engaged in entrusted financial management, with various financial products and amounts detailed[160]. - The company reported a total of 2,000 million RMB in financial products for the year 2015, achieving a return of 12.16%[163]. - The company plans to utilize various financing methods to maintain a healthy capital structure and reduce financing costs, ensuring sustainable business development[113]. - The company will issue non-public shares to raise funds for food processing projects and the three-dimensional breeding technology transformation project[115].

Financial Performance - Operating revenue for the reporting period was CNY 413,017,938.50, down 10.90% year-on-year, while year-to-date revenue increased by 7.23% to CNY 1,317,124,087.29[9] - Net profit attributable to shareholders of the listed company was CNY 5,707,684.39, a decline of 83.81%, with year-to-date net profit down 67.41% to CNY 14,301,623.48[9] - Basic earnings per share for the reporting period were CNY 0.04, down 86.67% compared to the same period last year[9] - The weighted average return on net assets was 1.02%, a decrease of 2.25% year-on-year[9] - The estimated net profit attributable to shareholders for 2015 is projected to be between 22.17 million and 31.04 million RMB, representing a decrease of 30% to 50% compared to the previous year's net profit of 44.34 million RMB[22] - The decline in performance is attributed to the sluggish domestic macroeconomic environment, which has not yet returned to normal levels, impacting overall industry operations[22] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,466,946,258.35, a decrease of 2.09% compared to the end of the previous year[9] - Net assets attributable to shareholders of the listed company increased by 23.24% to CNY 989,289,197.78 from CNY 802,737,574.30[9] - Accounts receivable net amount decreased by 31.61% compared to the beginning of the year, mainly due to a reduction in customer debts[17] - Prepayments increased by 148.90% compared to the beginning of the year, primarily due to a significant increase in advance payments for engineering equipment[17] - Construction in progress increased by 1093.52% compared to the beginning of the year, attributed to the company's transformation of chicken farms into vertical farming[17] - Long-term deferred expenses increased by 41.35% compared to the beginning of the year, due to an increase in land lease payments[17] - Short-term borrowings decreased by 50.98% compared to the beginning of the year, as the company repaid a significant amount of loans during the period[17] Cash Flow and Financial Management - The net cash flow from operating activities for the year-to-date was CNY 118,293,761.06, an increase of 237.31%[9] - Operating cash flow net amount increased by 237.31% compared to the same period last year, driven by increased revenue and corresponding cash flow[17] - Financial expenses decreased by 76.10% compared to the same period last year, due to significant loan repayments[17] - Other income increased by 73.67% compared to the same period last year, mainly due to increased government compensation[17] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,067[13] - The top two shareholders, Wang Shouchun and Qu Lirong, held 32.66% and 30.12% of the shares, respectively[13] - The company reported no significant changes in shareholder structure or any repurchase agreements during the reporting period[14] Stock Price Stabilization Measures - The company will initiate stock price stabilization measures if the stock price remains below the audited net asset value per share for 20 consecutive trading days[20] - The board will propose a profit distribution plan or capital reserve transfer plan within 5 trading days if stabilization measures are triggered[20] - The company may repurchase shares using its own funds, with the repurchase price not exceeding the audited net asset value per share from the previous fiscal year[20] - The total amount for share repurchase will not exceed 50% of the net profit attributable to the parent company's ordinary shareholders from the previous fiscal year[20] - If the stock price conditions are not met, the company may refrain from implementing share repurchase measures[20] - The controlling shareholder may increase their stake through market transactions if the stock price remains below the audited net asset value per share after stabilization measures[20] - The controlling shareholder's purchase price will not exceed the audited net asset value per share from the previous fiscal year[20] - The funds used for the controlling shareholder's stake increase must not be less than the cash dividends received from the company in the most recent fiscal year[20] - The company will disclose the controlling shareholder's plan to increase their stake within three trading days after approval[20] - The company must comply with relevant laws and regulations during the implementation of stock price stabilization measures[20] Compliance and Governance - The company received the administrative license acceptance notice from the China Securities Regulatory Commission on October 14, 2015[18] - There were no securities investments or holdings in other listed companies during the reporting period[23][24] - The company reported no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[25][26]

Financial Performance - The company's operating revenue for the first half of 2015 was CNY 904,106,148.79, representing an increase of 18.21% compared to CNY 764,849,320.43 in the same period last year[21]. - The net profit attributable to shareholders of the listed company decreased by 34.76% to CNY 8,593,939.09 from CNY 13,173,328.65 year-on-year[21]. - The net profit after deducting non-recurring gains and losses fell by 46.58% to CNY 5,971,711.45 compared to CNY 11,177,995.92 in the previous year[21]. - The basic earnings per share decreased by 45.45% to CNY 0.06 from CNY 0.11 in the same period last year[21]. - The diluted earnings per share also decreased by 45.45% to CNY 0.06 from CNY 0.11 year-on-year[21]. - The weighted average return on net assets was 1.04%, down from 1.72% in the previous year, a decrease of 0.68%[21]. - The expected net profit attributable to shareholders for the period of January to September 2015 is projected to be between CNY 13.35 million and CNY 18.69 million, representing a decrease of 30% to 50% compared to the same period in 2014[72]. Cash Flow and Assets - The net cash flow from operating activities significantly increased by 322.35% to CNY 75,881,097.19 from CNY 17,966,479.38 in the same period last year[21]. - The total assets at the end of the reporting period were CNY 1,460,914,851.02, a decrease of 2.50% from CNY 1,498,318,061.90 at the end of the previous year[21]. - The cash and cash equivalents increased by CNY 88,003,522.51 during the reporting period, compared to a decrease of CNY 97,956,900.00 in the previous year[33]. - The company's cash and cash equivalents increased to ¥235,668,374.20 from ¥157,198,159.19, representing a growth of approximately 49.8%[123]. - Total current assets decreased to ¥607,102,071.35 from ¥631,323,735.28, a reduction of approximately 3.8%[124]. - Current liabilities decreased to ¥474,057,337.63 from ¥655,812,487.60, a decrease of approximately 27.6%[125]. - Total liabilities decreased to ¥477,333,337.63 from ¥695,580,487.60, a reduction of about 31.4%[125]. Investment and Financial Strategy - The company has engaged in entrusted financial management with a total amount of 2,047.82 million for a USD swap, yielding an actual return of 10.01 million[60]. - The company has invested 5 million yuan in the Muping Jiaodong Village Bank, holding a 5% stake[54]. - The company has not engaged in any securities investments during the reporting period[56]. - The company has not held any shares in other listed companies during the reporting period[57]. - The company has engaged in multiple financial products with varying returns, indicating a diversified investment strategy[60][61]. - The company continues to explore new financial products and investment opportunities to enhance returns and manage risks effectively[60][61]. Operational Strategy and Market Position - The company maintained a complete industrial chain covering breeding, hatching, feed production, and processing, enhancing its market response and risk resistance capabilities[37]. - The "company + self-raising farms + farms" cooperative breeding model allows for effective disease prevention and stable quality improvement in chicken farming[38]. - The company implemented a "seven unification" management strategy to ensure standardized breeding practices and enhance biosecurity measures[39]. - The company plans to continue its product development and market expansion strategies in the second half of the year, leveraging its core competitive advantages[33]. - The company is located in the Jiaodong Peninsula, a disease-free zone for poultry farming, providing a natural barrier against diseases and ensuring biosecurity advantages[42]. Governance and Compliance - The company maintained a robust governance structure in compliance with relevant laws and regulations, enhancing its operational integrity[78]. - There were no significant litigation or arbitration matters during the reporting period, ensuring a stable legal environment for the company[79]. - The company did not engage in any asset acquisitions, sales, or mergers during the reporting period, indicating a focus on organic growth[81][83]. - The company has no outstanding commitments from shareholders or major stakeholders during the reporting period, ensuring clarity in governance[97]. Shareholder Commitments and Stock Management - The controlling shareholders Wang Shouchun and Qu Lirong committed not to transfer or manage their shares for 36 months from the date of the company's stock listing[98]. - The company will propose specific plans to stabilize stock prices within three trading days upon meeting the conditions for stabilization measures[98]. - The company plans to implement a profit distribution plan or capital reserve transfer to increase share capital within two months after approval by the shareholders' meeting[99]. - The company’s controlling shareholders are committed to increasing their shareholdings if the stock price remains below the audited net asset value per share for 10 consecutive trading days[99]. Financial Reporting and Compliance - The financial statements were approved by the board of directors on August 26, 2015[161]. - The company adheres to the accounting policies set forth by the Ministry of Finance, ensuring compliance with the relevant accounting standards[166]. - The company has established a comprehensive accounting treatment for mergers and acquisitions, ensuring accurate reporting of goodwill and equity interests[173]. - The company applies a provision for bad debts based on aging analysis, with a 5% provision for receivables within 1 year and 100% for those over 5 years[193].