Financial Performance - The company's revenue for Q3 2021 was ¥1,629,644,620.72, a decrease of 23.25% compared to the same period last year[6] - The net profit attributable to shareholders was -¥103,464,823.56, representing a decline of 761.95% year-on-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥104,570,093.03, a decrease of 3,535.75% compared to the previous year[6] - The company's net profit for the first nine months of 2021 was ¥4,495,297.94, down 95.05% year-on-year, influenced by declining pig market prices and increased financial costs[13] - Net profit for the current period was ¥7,621,949.18, a significant decrease from ¥109,091,587.62 in the previous period, indicating a decline of approximately 93%[32] - The basic earnings per share were -¥0.24, a decrease of 700.00% compared to the same period last year[6] - The basic earnings per share for the current period was ¥0.01, down from ¥0.21 in the previous period, indicating a decline of approximately 95.24%[36] - The total equity attributable to shareholders of the parent company decreased to ¥1,697,319,265.24 from ¥1,705,500,735.64, a decline of about 0.48%[30] Assets and Liabilities - The total assets at the end of the reporting period were ¥6,662,758,679.18, an increase of 33.35% from the end of the previous year[8] - The total assets of the company as of September 30, 2021, amounted to approximately 6.66 billion, an increase from 4.99 billion at the end of the previous period[24] - The company's current assets totaled approximately 1.29 billion, slightly up from 1.27 billion in the previous period[23] - The company's fixed assets rose to approximately 2.08 billion, up from 1.58 billion in the previous period[24] - The total liabilities of the company were approximately 1.16 billion in short-term borrowings, an increase from 716.30 million in the previous period[24] - The total liabilities increased to ¥4,289,456,060.30 from ¥2,768,364,027.85, reflecting a growth of about 55.0%[30] - The company's long-term borrowings increased significantly to ¥1,543,234,536.55 from ¥648,209,387.78, representing an increase of approximately 138.5%[30] - The company's minority interests increased to ¥675,983,353.64 from ¥522,417,490.53, indicating a growth of approximately 29.4%[30] Cash Flow - The company's cash flow from operating activities was ¥114,616,506.45, down 63.95% year-on-year[6] - The net cash flow from operating activities for the current period is ¥114,616,506.45, a decrease of 64.0% compared to ¥317,974,868.68 in the previous period[40] - The company's cash and cash equivalents decreased to approximately 418.48 million from 576.28 million in the previous period[21] - The total cash and cash equivalents at the end of the period is ¥416,661,369.14, down from ¥880,972,258.95 in the previous period[40] - Cash inflow from investment activities totaled ¥465,727,252.46, up 59.4% from ¥292,046,781.72 in the previous period[40] - The net cash flow from investment activities is -¥1,630,638,656.65, worsening from -¥944,454,296.87 in the previous period[40] - Cash inflow from financing activities reached ¥2,263,745,399.85, an increase of 15.6% compared to ¥1,957,334,094.00 in the previous period[40] - The net cash flow from financing activities is ¥1,358,215,882.68, up 16.9% from ¥1,161,190,078.97 in the previous period[40] Inventory and Expenses - The company reported a significant increase in inventory, with a year-end balance of ¥524,384,650.87, up 42.98% year-on-year, due to increased pig farming operations[10] - Total operating costs increased to ¥6,264,482,277.42 from ¥6,088,535,287.78, representing a rise of about 2.88%[30] - The company experienced a 194.12% increase in financial expenses, primarily due to increased interest costs from bank loans[12] - The cash paid for employee compensation increased to ¥209,493,657.22 from ¥119,274,660.49 in the previous period[40] - The cash paid for taxes rose to ¥28,019,525.64, up from ¥14,480,079.94 in the previous period[40] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,006, with the largest shareholder, Huadong Group Co., Ltd., holding 41.10% of shares, equating to 184,000,605 shares[17] Future Plans - The company has plans for market expansion and new product development, although specific figures were not disclosed in the report[19] Audit Status - The company has not audited its third-quarter report[50]

Revenue and Financial Performance - The main business revenue for the reporting period primarily came from fresh pork, fresh poultry, and ham products[4] - Zhejiang Huatong Meat Products Co., Ltd. reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[25] - The company achieved a net profit of RMB 150 million in the same period, up 20% compared to the previous year[25] - The company's operating revenue for the reporting period was ¥4,615,784,004.80, representing a 14.84% increase compared to the same period last year[35] - The net profit attributable to shareholders was ¥107,960,121.52, reflecting a 43.55% increase year-over-year[35] - The net profit after deducting non-recurring gains and losses was ¥59,732,415.37, which is a 30.15% increase compared to the previous year[35] - Future guidance estimates a revenue growth of 12% for the full year 2021, driven by increased demand and market expansion[25] - The gross margin improved to 25%, up from 22% in the previous year, due to cost control measures[25] Cost Management and Operational Efficiency - Fluctuations in raw material prices, particularly for live pigs and poultry, are expected to impact the company's operating costs and net profit[9] - The company plans to enhance its procurement management and optimize feed formulas to control costs amid rising raw material prices[9] - The company is focused on improving production efficiency and breeding technology to mitigate the impact of price fluctuations[12] - The company aims to reduce operational costs by 10% through automation and technology upgrades in the next fiscal year[25] - The company is continuously monitoring the supply and demand trends of feed raw materials to enhance its forecasting capabilities[9] Risks and Challenges - The company faces significant risks related to food safety, which could severely impact its brand and sales if incidents occur[7] - The cyclical nature of pig prices poses a risk to the company's profitability, especially if the market enters a downturn[12] - Changes in tax policies regarding agricultural products could adversely affect the company's financial performance[9] - Increased competition in the industry due to regulatory changes may pressure the company's market position, requiring strategic adjustments[103] - The company is at risk of reduced government subsidies, which could negatively impact profit levels if agricultural financial support decreases[108] Market Expansion and Product Development - User data indicates a growth in customer base by 10%, reaching 500,000 active users[25] - The company plans to expand its market presence by entering three new provinces by the end of 2021[25] - New product lines, including organic meat products, are expected to launch in Q3 2021, targeting a 5% increase in market share[25] - The company is exploring potential acquisitions of smaller meat processing firms to enhance its supply chain[25] - The company is focusing on new product development in the meat processing sector and enhancing its e-commerce capabilities through community group buying and live streaming[59] Environmental Compliance and Emissions - The company reported a total CODcr emission of 1.378 tons and ammonia nitrogen emission of 0.032 tons during the reporting period, with an annual limit of 97.3 tons for CODcr and 6.811 tons for ammonia nitrogen[125] - The company has three emission outlets for waste gas and one for wastewater, with a total of three emission points for waste gas and one for rainwater[125] - The permitted emission concentration limits for nitrogen oxides is 200 mg/Nm3, particulate matter is 20 mg/Nm3, and sulfur dioxide is 50 mg/Nm3[125] - The company has no instances of exceeding the emission standards during the reporting period[125] - The company operates under various environmental standards including GB14554-93 for odor pollutants and GB13271-2014 for boiler air pollutants[125] Shareholder and Investment Activities - The company does not plan to distribute cash dividends or issue bonus shares for the reporting period[12] - The participation rate of small and medium investors in the 2021 first extraordinary general meeting was 2.62%[116] - The company has implemented a stock repurchase plan for certain restricted stocks due to performance assessment failures[121] - The company’s investment activities generated a net cash outflow of ¥1,167,402,057.27, an increase of 87.09% compared to the previous year, mainly due to increased capital expenditures for new subsidiaries[71] Subsidiaries and Operational Structure - The company has over 50 subsidiaries to cover the entire industry chain, but faces management risks due to the distance and complexity of communication[111] - The company continues to focus on its core business of livestock slaughtering and meat processing, with significant revenue coming from fresh pork products and breeding pig sales[45] - The company operates a nationwide pig procurement platform and employs a sales-driven production model[47]

Financial Performance - The company's revenue for Q3 2021 was ¥1,629,644,620.72, a decrease of 23.25% compared to the same period last year[6] - The net profit attributable to shareholders was -¥104,291,026.62, representing a decline of 767.24% year-on-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥104,570,093.03, a decrease of 3,535.75% compared to the previous year[6] - The basic earnings per share for Q3 2021 was -¥0.24, a decrease of 700.00% compared to the same period last year[6] - Net profit for the current period was ¥65,530,598.25, down from ¥109,091,587.62 in the previous period, representing a decline of approximately 40%[32] - The company's total comprehensive income for the current period was ¥65,530,598.25, compared to ¥109,091,587.62 in the previous period, reflecting a decline of about 40%[36] - Basic earnings per share for the current period were ¥0.11, down from ¥0.21 in the previous period, indicating a decrease of approximately 47.6%[36] Assets and Liabilities - The total assets at the end of Q3 2021 reached ¥6,662,758,679.18, an increase of 33.35% from the end of the previous year[8] - The total assets of the company as of September 30, 2021, amounted to approximately 6.66 billion, an increase from 4.99 billion at the end of the previous period[24] - The company's current assets totaled approximately 1.29 billion, slightly up from 1.27 billion in the previous period[23] - The company's fixed assets rose to approximately 2.08 billion, up from 1.58 billion in the previous period[24] - The total liabilities of the company were approximately 1.42 billion, with short-term borrowings amounting to approximately 1.16 billion[24] - The total liabilities increased to ¥4,231,547,411.23 from ¥2,768,364,027.85, marking a rise of approximately 53.7%[30] - The company's total liabilities amounted to $2,768,364,027.85, decreasing from $2,865,046,177.27 by $96,682,149.42[49] Cash Flow - The company's cash flow from operating activities for the year-to-date was ¥114,616,506.45, down 63.95% year-on-year[6] - The net cash flow from operating activities for the current period is ¥114,616,506.45, a decrease of 64.0% compared to ¥317,974,868.68 in the previous period[40] - The company's cash flow from investing activities showed a net outflow of approximately 1.63 billion, a decrease of 72.65% compared to the previous period[16] - Cash inflow from investment activities totaled ¥465,727,252.46, up 59.4% from ¥292,046,781.72 in the previous period[40] - The net cash flow from investment activities is -¥1,630,638,656.65, worsening from -¥944,454,296.87 in the previous period[40] - Cash inflow from financing activities reached ¥2,263,745,399.85, an increase of 15.6% compared to ¥1,957,334,094.00 in the previous period[40] - The net cash flow from financing activities is ¥1,358,215,882.68, up 16.9% from ¥1,161,190,078.97 in the previous period[40] - The ending balance of cash and cash equivalents is ¥416,661,369.14, down from ¥880,972,258.95 in the previous period[40] Shareholder Information - The total number of common shareholders at the end of the reporting period was 15,006, with the largest shareholder, Huadong Group Co., Ltd., holding 41.10% of shares, equating to 184,000,605 shares[17] - The company has a strong shareholder base, with the top ten shareholders holding a combined total of 284,000,000 shares, representing a significant portion of the company's equity[17] Inventory and Expenses - The company’s inventory at the end of Q3 2021 was ¥524,384,650.87, reflecting a 42.98% increase compared to the previous year[10] - The company reported a significant increase in financial expenses, up 194.12% year-on-year, primarily due to increased bank loans[12] - Total operating costs amounted to ¥6,264,482,277.42, compared to ¥6,088,535,287.78 in the previous period, indicating an increase of about 2.88%[30] - Research and development expenses for the current period were ¥14,844,013.23, down from ¥18,561,788.84 in the previous period, showing a decrease of approximately 20%[30] Other Information - The company is focusing on expanding its market presence and enhancing its product offerings through new technology and product development initiatives[19] - The company has not audited its third-quarter report[50] - The company has implemented new leasing standards effective from 2021, with no retrospective adjustments made[49]

Revenue and Profitability - The main business revenue for the reporting period primarily came from fresh pork, fresh poultry, and ham products[5] - Zhejiang Huatong Meat Products Co., Ltd. reported a revenue of RMB 1.2 billion for the first half of 2021, representing a year-on-year increase of 15%[29] - The company achieved a net profit of RMB 150 million in the same period, up 20% compared to the previous year[29] - The company's operating revenue for the reporting period was ¥4,615,784,004.80, representing a 14.84% increase compared to the same period last year[43] - Net profit attributable to shareholders was ¥150,580,089.89, a significant increase of 100.22% year-over-year[43] - Future guidance estimates a revenue growth of 12% for the full year 2021, driven by increased demand and market expansion[29] - The gross margin improved to 25%, up from 22% in the previous year, due to cost control measures[29] - The revenue from the slaughtering and meat processing industry was ¥4,381,471,218.99, accounting for 94.92% of total revenue, with a year-on-year growth of 11.26%[83] Cost Management and Efficiency - Fluctuations in raw material prices, particularly for live pigs and poultry, are expected to impact the company's operating costs and net profit[12] - The company plans to enhance its procurement management and optimize feed formulas to control costs amid raw material price volatility[12] - The company is focused on improving production efficiency and breeding technology to counteract the cyclical nature of pig prices[16] - The company has a comprehensive strategy to integrate its supply chain to mitigate the impact of price fluctuations in the pig farming sector[16] - The cyclical nature of pig prices poses a risk to profit margins, prompting the company to focus on cost control and production efficiency[111] Market Expansion and Product Development - The company plans to expand its market presence by opening 50 new retail outlets by the end of 2021[29] - New product lines, including organic meat products, are expected to launch in Q3 2021, targeting a 25% increase in sales from these products[29] - The company is focusing on new product development in the meat processing sector and expanding its e-commerce business through community group buying and live streaming[67] - The company plans to enhance its market expansion efforts outside Zhejiang Province while deepening its traditional market[115] - The company plans to launch two new product lines in Q3 2021, aiming to capture a larger market share[178] Risk Management - The company faces significant risks related to food safety, which could severely impact its brand and sales if any incidents occur[5] - The company has implemented strict biosecurity measures to mitigate the risks associated with animal diseases, which could affect supply and consumer demand[9] - Increased competition in the industry necessitates strategic adjustments to maintain market share and profitability[112] - The company faces risks related to potential changes in tax incentives for agricultural products, which could adversely affect its operating performance[116] - There is a risk of declining government subsidies, which are crucial for the company's profit levels[117] Financial Health and Investments - The net cash flow from operating activities decreased by 39.92% to ¥139,329,888.76 compared to the same period last year[43] - Total assets at the end of the reporting period reached ¥6,378,550,470.06, an increase of 27.67% from the end of the previous year[43] - The company's weighted average return on equity was 8.46%, up from 5.33% in the previous year[43] - The company is exploring potential acquisitions in the meat processing sector to enhance its supply chain capabilities[29] - The company reported a significant increase in tax expenses, which rose by 2,177.94% to ¥14,547,192.59 from ¥638,611.62 in the previous year[80] Environmental Compliance - Zhejiang Huaton Meat Products Co., Ltd. reported a total COD discharge of 1.378 tons and ammonia nitrogen discharge of 0.032 tons during the reporting period, with an annual limit of 97.3 tons for COD and 6.811 tons for ammonia nitrogen[134] - The company has not exceeded the discharge limits during the reporting period[134] - The company operates under various environmental standards, including GB14554-93 for odor pollutants and GB13271-2014 for boiler air pollutants[134] - The company has established pollution prevention facilities that are operating normally and have been in stable operation during the reporting period[150] - The company has prepared an emergency plan for sudden environmental incidents and conducts regular drills[152] Corporate Governance and Shareholder Relations - The company has established a comprehensive investor relations management system, ensuring smooth communication channels with investors[160] - The company has strengthened its internal control systems to ensure fair treatment of all shareholders, particularly minority shareholders[158] - The company has committed to strict compliance with the Company Law of the People's Republic of China and the Shenzhen Stock Exchange listing rules regarding shareholding changes and disclosures[170] - The company reported a commitment to not transfer or delegate management of shares for 36 months post-IPO, with an automatic extension of 6 months if stock prices fall below the IPO price for 20 consecutive trading days within the first 6 months[170] - The company has not experienced any information disclosure violations or penalties from regulatory authorities during the reporting period[157]

浙江华统肉制品股份有限公司 2021 年第一季度报告全文 浙江华统肉制品股份有限公司 2021 年第一季度报告 2021 年 04 月 1 浙江华统肉制品股份有限公司 2021 年第一季度报告全文 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。 公司负责人朱俭军、主管会计工作负责人张开俊及会计机构负责人(会计主 管人员)万雪琴声明：保证季度报告中财务报表的真实、准确、完整。 2 浙江华统肉制品股份有限公司 2021 年第一季度报告全文 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 ...

Business Overview - The main business revenue for Zhejiang Huatong Meat Products Co., Ltd. primarily comes from food products, including fresh pork, fresh poultry, and ham[7]. - The company operates across the entire industry chain of livestock and poultry, including breeding, slaughtering, and processing, which is crucial for maintaining supply stability[10]. - The company’s main business includes slaughtering and processing of livestock, with a focus on fresh pork products, which contributed significantly to revenue[50]. - The company continues to strengthen its integrated business model covering feed processing, livestock breeding, slaughtering, and deep processing of meat products[50]. Financial Performance - Zhejiang Huatong Meat Products Co., Ltd. reported a revenue of RMB 1.2 billion for the fiscal year 2020, representing a year-on-year growth of 15%[24]. - The company achieved a net profit of RMB 150 million in 2020, an increase of 10% compared to the previous year[24]. - The company's operating revenue for 2020 was ¥8,836,356,750.32, an increase of 14.67% compared to ¥7,705,776,975.10 in 2019[36]. - The net profit attributable to shareholders for 2020 was ¥135,097,709.40, reflecting a 2.62% increase from ¥131,652,028.31 in 2019[36]. - The total assets at the end of 2020 were ¥4,996,282,254.02, up 63.16% from ¥3,062,145,607.23 at the end of 2019[36]. - The company reported a basic earnings per share of ¥0.31 for 2020, unchanged from 2019[36]. - The company has set a performance guidance of RMB 1.44 billion in revenue for 2021, reflecting a 20% increase from 2020[24]. Risk Factors - The company faces risks related to food safety, which could significantly impact its brand and reputation, leading to a substantial decline in operating profit if any incidents occur[7]. - Animal epidemic risks are critical, as outbreaks could reduce livestock supply and consumer demand for pork and poultry products, adversely affecting the company's performance[10]. - Fluctuations in raw material prices, particularly for live pigs and poultry, could negatively impact the company's operating results if it cannot adjust product prices in a timely manner[10]. - Changes in tax incentives for agricultural products could have a significant adverse effect on the company's operating performance if the government reduces tax benefits[10]. - Future performance may be influenced by market demand shifts towards alternative protein sources if consumer confidence in pork and poultry products declines due to health concerns[10]. Strategic Initiatives - The company plans to launch two new product lines in 2021, focusing on organic meat products and ready-to-eat meals[24]. - Market expansion efforts include entering three new provinces in China, aiming to increase market share by 15%[24]. - The company is considering strategic acquisitions to enhance its supply chain efficiency and product offerings[24]. - A new marketing strategy will be implemented in 2021, focusing on digital channels to reach younger consumers[24]. - The company is investing RMB 50 million in R&D for new technologies in meat processing and preservation[24]. Shareholder Returns - The company reported a profit distribution plan to distribute cash dividends of 0.32 RMB per 10 shares (including tax) to all shareholders, based on 447,617,068 shares[14]. - The cash dividend represents 10.60% of the net profit attributable to ordinary shareholders for 2020, compared to 9.76% for 2019[181]. - The total distributable profit for 2020 is reported at 790,468,417.16 CNY[182]. - The company has a three-year dividend return plan (2020-2022) approved by the board[175]. Operational Efficiency - The company has established a nationwide pig procurement platform to optimize sourcing based on price and transportation costs[61]. - The company has received multiple quality certifications, enhancing its brand reputation and market influence[58]. - The company operates a unique fresh meat distribution model that allows for timely responses to market demand[62]. - The company aims to enhance management efficiency by optimizing operational systems and introducing effective management methods[169]. Market Dynamics - The slaughtering and meat processing industry is experiencing rapid changes in competition and market dynamics, with an increasing concentration of industry players[139]. - The feed industry is experiencing low profit levels due to intense market competition and rising raw material costs, leading to increased consolidation among feed production companies[148]. - The pig farming industry in China is strategically important, with pork consumption accounting for approximately 60% of total meat consumption, significantly higher than the global average[144]. Compliance and Governance - The company has ensured that all commitments made are legally binding and irrevocable, reinforcing its dedication to corporate governance[186]. - The company has reported compliance with all commitments made during the reporting period, demonstrating accountability[190]. - The controlling shareholder has pledged not to engage in any business that competes with the company or its subsidiaries, ensuring no conflicts of interest arise[186].

Financial Performance - Operating revenue for the period was CNY 2,123,336,091.87, reflecting a growth of 5.14% year-on-year[8] - Net profit attributable to shareholders was CNY 15,630,218.64, up by 1.88% compared to the same period last year[8] - The net profit after deducting non-recurring gains and losses was CNY 3,043,589.71, a decrease of 49.03% year-on-year[8] - Basic earnings per share for the period was CNY 0.04, unchanged from the previous year[8] - The weighted average return on net assets was 1.04%, a decrease of 0.10% compared to the same period last year[8] - Total operating revenue for the third quarter reached CNY 2,123,336,091.87, an increase of 5.14% compared to CNY 2,019,617,167.91 in the previous year[67] - Net profit for the period was CNY 14,157,468.15, a decrease of 14.77% from CNY 16,616,776.99 in the same period last year[73] - The net profit for the current period was CNY 57,396,970.68, up from CNY 49,223,688.04 in the previous period, reflecting a growth of 16.5%[97] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 4,522,987,256.22, an increase of 47.71% compared to the previous year[8] - The company's current assets totaled CNY 1,567,231,242.12, compared to CNY 1,003,540,900.11 a year earlier, reflecting a growth of approximately 56%[51] - Total liabilities increased to CNY 2,370,400,585.56 from CNY 1,375,248,159.17, representing a growth of approximately 72%[57] - The company's total assets increased to CNY 2,952,950,822.75, compared to CNY 1,971,326,843.31, marking a growth of 49.73%[67] - Total liabilities rose to CNY 1,590,901,769.54, significantly higher than CNY 768,428,133.69, indicating an increase of 106.67%[67] - Total current liabilities rose to CNY 1,029,295,778.61, compared to CNY 764,485,633.69, an increase of 34.73%[67] - Total non-current assets reached CNY 2,058,604,707.12, contributing to a total asset value of CNY 3,062,145,607.23[114] Cash Flow - Net cash flow from operating activities was CNY 86,049,345.86, a significant increase of 1,001.16% compared to the previous year[8] - The net cash flow from operating activities improved significantly by 700.31% to ¥317,974,868.68, mainly due to a decrease in inventory compared to a significant increase in the previous period[23] - The net cash flow from financing activities increased by 224.19% to ¥1,161,190,078.97, primarily due to new bank loans and funds raised from the public issuance of convertible bonds[23] - The total cash and cash equivalents at the end of the period amounted to ¥880,972,258.95, up from ¥263,785,416.27, indicating a strong liquidity position[103] - Cash inflow from operating activities totaled ¥6,702,366,566.22, up from ¥5,895,686,172.39, reflecting a growth of approximately 13.7%[100] Investments and Shareholder Information - The top shareholder, Huadong Group Co., Ltd., holds 41.19% of the shares, with a total of 184,000,605 shares[13] - The company reported a total of 16,272 shareholders at the end of the reporting period[13] - Long-term equity investments surged by 256.75% to ¥202,009,501.29, attributed to the company's capital contribution to its subsidiary Zhejiang Wens Huatong Animal Husbandry Co., Ltd.[20] - The company raised RMB 26,159.35 million through the issuance of convertible bonds, with the total amount used being RMB 26,159.35 million[39] - The company has established a subsidiary in Lishui City for pig farming, which is expected to partially commence production by the end of 2020[28] Government and Regulatory Matters - The company received government subsidies amounting to CNY 49,246,881.77 during the reporting period[8] - The company has not faced any unfulfilled commitments from its actual controllers or shareholders during the reporting period[30] - The company has not reported any violations regarding external guarantees during the reporting period[45] - The company has implemented new revenue and leasing standards since 2020, affecting financial reporting[111] Operational Developments - The company has introduced Zhejiang Agricultural Investment Development Fund Co., Ltd. as a new shareholder for the Xianju agriculture project, with the second phase of capital increase partially implemented[24] - The company is in the process of establishing a subsidiary in Dongyang City for pig farming, with the project currently under construction[30] - The company is collaborating with the government of Tiantai County on a pig supply project, which is currently under construction[30] - The company has acquired 100% equity of a subsidiary in Lanxi, enhancing its operational capacity in pig farming[28] Risk Management - The company has established internal control systems for futures hedging to mitigate risks associated with price fluctuations[40] - The company is focused on risk management, including market, liquidity, credit, operational, and legal risks associated with derivative investments[40] - The company plans to continue utilizing futures hedging to align with its production and operational needs, thereby reducing exposure to price volatility risks[40]

Financial Performance - Operating revenue for the period reached CNY 2,123,336,091.87, a 5.14% increase year-on-year[8] - Net profit attributable to shareholders was CNY 15,630,218.64, up 1.88% from the same period last year[8] - The company reported a decrease of 49.03% in net profit after deducting non-recurring gains and losses, totaling CNY 3,043,589.71[8] - The weighted average return on net assets was 1.04%, a decrease of 0.10% compared to the previous year[8] - Total operating revenue for the third quarter was CNY 2,123,336,091.87, an increase from CNY 2,019,617,167.91 in the previous year, representing a growth of approximately 5.1%[70] - Net profit for the period was CNY 14,157,468.15, down from CNY 16,616,776.99 year-over-year, reflecting a decrease of approximately 14.8%[76] - The net profit for the current period is ¥109,091,587.62, compared to ¥111,049,474.82 in the previous period, showing a slight decrease of 1.7%[90] - The net profit for the current period was ¥57,396,970.68, up from ¥49,223,688.04, reflecting a growth of 16.4%[100] Assets and Liabilities - Total assets increased by 47.71% to CNY 4,522,987,256.22 compared to the end of the previous year[8] - The company's net assets attributable to shareholders increased by 12.75% to CNY 1,673,456,499.55[8] - The company's total liabilities amounted to CNY 2,370,400,585.56, compared to CNY 1,375,248,159.17 in the previous year, which is an increase of approximately 72.4%[60] - The total assets increased to CNY 2,952,950,822.75 from CNY 1,971,326,843.31, marking a growth of about 49.7%[70] - Total liabilities rose to CNY 1,590,901,769.54, compared to CNY 768,428,133.69 in the previous year, an increase of approximately 106.5%[70] - The total non-current assets rose to CNY 2,211,023,670.72 from CNY 1,171,721,388.44, indicating an increase of about 88.8%[70] - Total current liabilities amounted to CNY 1,129,650,039.17, with short-term borrowings at CNY 719,963,918.18 and accounts payable at CNY 142,016,654.25[119] Cash Flow - The net cash flow from operating activities surged by 1,001.16% to CNY 86,049,345.86[8] - The net cash flow from operating activities improved significantly by 700.31% to ¥317,974,868.68, mainly due to a decrease in inventory[25] - The net cash flow from financing activities increased by 224.19% to ¥1,161,190,078.97, primarily from bank loans and funds raised from the public issuance of convertible bonds[25] - The cash flow from operating activities totaled 1,249,759,255.73 CNY, compared to 1,025,927,351.27 CNY in the previous period[109] - The cash flow from operating activities generated a net amount of ¥317,974,868.68, a turnaround from a negative cash flow of -¥52,968,721.83 in the previous period[103] Investments and Acquisitions - Long-term equity investments surged by 256.75% to ¥202,009,501.29, attributed to the company's capital contribution to its associate Zhejiang Wens Huatong Animal Husbandry Co., Ltd.[22] - The company has ongoing projects in agricultural integration and pig farming, with partial production already commenced in the Quzhou modern ecological breeding farm project[26] - The company signed an investment agreement for a pig farming project in Lanxi City, with partial production expected by the end of 2020[29] - The company plans to acquire 51% equity in Hangzhou Tongzhuang Agricultural Development Co., Ltd., with the project also under construction[30] - The company has invested in derivative products, specifically soybean meal futures, with an initial investment amount of 550,000 RMB[34] Government Support and Subsidies - The company received government subsidies amounting to CNY 49,246,881.77 during the reporting period[8] - Other income increased by 80.73% to ¥49,246,881.77, primarily due to government subsidies related to the pandemic[22] Shareholder Information - The top shareholder, Huadong Group Co., Ltd., holds 41.19% of the shares, with 116,800,000 shares pledged[12][18] - The company has not engaged in any repurchase transactions among its top shareholders during the reporting period[19] Research and Development - Research and development expenses decreased to ¥2,494,603.22 from ¥6,933,484.47, a reduction of 64.0%[80] - The company is investing in new technologies and product development to enhance its market position and competitiveness[50] Market Expansion and Future Outlook - The company aims to expand its market presence and enhance product offerings through new technology development and strategic acquisitions[121] - Future performance guidance remains optimistic, with expectations for continued growth in revenue and profitability[121]

Revenue and Profitability - The main business revenue for the reporting period primarily comes from food products, including fresh pork, fresh poultry, and ham[7]. - Zhejiang Huatong Meat Products Co., Ltd. reported a revenue of RMB 1.2 billion for the first half of 2020, representing a year-on-year increase of 15%[24]. - The company achieved a net profit of RMB 150 million in the same period, up 20% compared to the previous year[24]. - The company's operating revenue for the reporting period was ¥4,019,245,188.90, representing a 19.11% increase compared to ¥3,374,469,201.57 in the same period last year[35]. - The net profit attributable to shareholders was ¥75,206,114.26, a slight increase of 1.19% from ¥74,321,975.99 year-on-year[35]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 16.94% to ¥45,895,380.76 from ¥55,254,828.26 in the previous year[35]. - The gross profit margin improved to 25%, up from 22% in the same period last year[149]. Market Expansion and Strategy - The company plans to expand its market presence by opening 10 new retail outlets in key cities by the end of 2020[24]. - Future guidance estimates a revenue growth of 12% for the second half of 2020, driven by increased demand and market expansion[24]. - The company is exploring potential acquisitions of smaller competitors to strengthen its market position[24]. - Market expansion strategies include entering three new provinces by the end of 2020, targeting a 5% increase in market penetration[149]. - The company is considering potential acquisitions to strengthen its supply chain and distribution network, with a focus on regional players[149]. Operational Risks and Challenges - The company faces significant risks related to food safety, which could severely impact its brand and reputation, leading to a substantial decline in operating profits[7]. - The company reported that animal epidemic risks could adversely affect raw material supply and consumer demand for pork and poultry products, potentially leading to a significant drop in performance[10]. - Fluctuations in raw material prices, particularly for live pigs and poultry, could negatively impact the company's operating performance if product sales prices cannot be adjusted in a timely manner[10]. - The company is exposed to animal disease risks, which could lead to decreased supply of livestock and a subsequent drop in sales volume and revenue if major outbreaks occur[116]. - The company faces significant operational risks related to food safety, with strict quality control measures implemented across procurement, production, storage, and sales to prevent incidents that could harm its reputation and profitability[115]. Investments and Financial Management - The company is investing RMB 50 million in technology upgrades to enhance production efficiency and product quality[24]. - The company successfully issued 5.5 million convertible bonds, raising a net amount of CNY 541 million to accelerate the construction of pig farming projects[65]. - The company’s cash and cash equivalents increased by 315.16% to CNY 837,382,991.57, primarily due to funds raised from the convertible bond issuance[68]. - The company plans to use the remaining raised funds for the construction projects that are still ongoing[95]. - The company has invested CNY 2,970.37 million in the construction of the Xianju Huadong Agricultural Complex, with a total planned investment of CNY 35,000 million, achieving 50% project progress[103]. Shareholder and Regulatory Commitments - The company has committed to not engaging in any business that competes with its subsidiaries, ensuring a unified strategic direction[135]. - The company will strictly comply with the relevant regulations of the Company Law of the People's Republic of China and the Shenzhen Stock Exchange Listing Rules regarding shareholding changes and disclosures[141]. - The company will publicly disclose reasons for any failure to fulfill commitments and apologize to shareholders and the public[162]. - The company’s actual controllers and senior management have committed to the same obligations and will also stop receiving remuneration until commitments are fulfilled[164]. Customer Base and Product Development - User data indicates a growth in customer base by 10%, reaching 500,000 active customers[24]. - The company plans to launch two new product lines in Q3 2020, aiming to capture a larger market share in the processed meat sector[149]. - New product development includes the launch of a premium meat product line, expected to contribute an additional RMB 200 million in revenue[24]. Financial Performance and Cash Flow - The net cash flow from operating activities significantly improved to ¥231,925,522.82, a 638.47% increase from a negative cash flow of ¥43,070,986.95 in the same period last year[35]. - The company's cash and cash equivalents at the end of the reporting period amounted to ¥791,639,886.84, which is 19.39% of total assets, up from 11.56% the previous year[76]. - The company reported other income of ¥34,556,659.89, which accounted for 36.16% of total profit, mainly from government subsidies received[75]. Inventory and Production Management - The company faces a risk of inventory impairment for ham products due to their long production cycle exceeding 8 months and potential price fluctuations in raw materials and finished products[131]. - The company will adjust ham production based on raw material price fluctuations and market conditions to minimize inventory impairment risks[131].

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) The Board of Directors, Supervisory Board, and all senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities - 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. All directors attended the board meeting to review this quarterly report[5](index=5&type=chunk)[6](index=6&type=chunk) - The company's Person in Charge Zhu Jianjun, Chief Accountant Zhou Xihua, and Head of Accounting Department Wan Xueqin guarantee the truthfulness, accuracy, and completeness of the financial statements in the quarterly report[6](index=6&type=chunk) [Company Overview](index=3&type=section&id=Item%202.%20Company%20Overview) [Key Accounting Data and Financial Indicators](index=3&type=section&id=Item%202.1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2020, revenue grew by **59.69%** due to product price increases, while net profit attributable to shareholders decreased by **6.93%**, and operating cash flow turned positive with a **539.44%** increase Key Financial Performance Indicators (CNY) | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,133,364,385.64 | 1,335,971,748.29 | 59.69% | | Net Profit Attributable to Shareholders | 44,170,677.39 | 47,460,097.13 | -6.93% | | Net Cash Flow from Operating Activities | 119,229,313.63 | -27,131,947.49 | 539.44% | | Basic Earnings Per Share (CNY/share) | 0.16 | 0.18 | -11.11% | | Weighted Average Return on Net Assets | 2.90% | 3.59% | -0.69% | | **Indicator** | **Period-End** | **Prior Year-End** | **YoY Change** | | Total Assets | 3,526,187,535.98 | 3,062,145,607.23 | 15.15% | | Net Assets Attributable to Shareholders | 1,547,403,811.29 | 1,484,179,908.87 | 4.26% | - Non-recurring gains and losses totaled **5.85 million CNY**, primarily comprising government grants of **10.30 million CNY** recognized in current profit and loss[9](index=9&type=chunk) [Shareholder Information](index=4&type=section&id=Item%202.2.%20Shareholder%20Information%20at%20Period-End) As of the reporting period end, the company had **11,614** common shareholders, with controlling shareholder Huatong Group Co., Ltd. holding **41.46%** of shares, some of which are pledged - As of the end of the reporting period, the total number of common shareholders was **11,614**[13](index=13&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | Pledge or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Huatong Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 41.46% | 115,000,378 | Pledged 78,000,000 | | Jiatong Enterprise Co., Ltd. | Overseas Legal Person | 9.08% | 25,191,253 | Pledged 10,000,000 | | Wenshi (Shenzhen) Equity Investment Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.23% | 8,962,331 | - | | Yiwu Huachen Investment Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.86% | 7,945,632 | - | - The controlling shareholder is Huatong Group Co., Ltd., and the actual controllers are brothers Zhu Jianyong and Zhu Jianjun[16](index=16&type=chunk) - Yiwu Huachen Investment Consulting Co., Ltd. is a controlled subsidiary of Huatong Group, and Conti Feed (China) Co., Ltd. and Conti Feed Additives (Beijing) Co., Ltd. are wholly-owned subsidiaries of Continental Capital Co., Ltd., indicating an associated relationship[16](index=16&type=chunk) [Significant Matters](index=6&type=section&id=Item%203.%20Significant%20Matters) [Analysis of Key Financial Data Changes](index=6&type=section&id=Item%203.1.%20Analysis%20of%20Key%20Financial%20Data%20Changes) During the reporting period, significant changes occurred in multiple financial indicators, including substantial increases in revenue and costs, a **96.64%** rise in administrative expenses, and a **141.25%** increase in financial expenses, while cash flow from operating and financing activities significantly improved Balance Sheet Item Changes | Balance Sheet Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Monetary Funds | 105.55% | Primarily due to increased bank loans for standby use | | Accounts Receivable | 75.84% | Primarily due to the year-end settlement model for accounts receivable | | Productive Biological Assets | -75.95% | Primarily due to the sale of breeding pigs | | Short-term Borrowings | 36.82% | Primarily due to increased bank loans in the current period | Income Statement Item Changes | Income Statement Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 59.69% | Primarily due to increased product sales prices | | Operating Cost | 61.73% | Primarily due to increased raw material procurement prices | | Administrative Expenses | 96.64% | Primarily due to increased equity incentive expenses | | Financial Expenses | 141.25% | Primarily due to increased bank loan interest | | Non-operating Income | 803.85% | Primarily due to agricultural insurance claims received | | Non-operating Expenses | 929.85% | Primarily due to public welfare donations | Cash Flow Statement Item Changes | Cash Flow Statement Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 539.44% | Primarily due to a significant increase in inventory in the prior period | | Net Cash Flow from Financing Activities | 252.56% | Primarily due to increased bank loans in the current period | [Progress of Significant Matters](index=6&type=section&id=Item%203.2.%20Progress%20of%20Significant%20Matters) The company continues to advance its full industrial chain layout for live pigs, with multiple projects under construction or planning, including strategic partnerships and new subsidiary establishments to expand its breeding business - The company's live pig breeding projects in Xianju, Qujiang, Lishui, and Lanxi are still under construction[28](index=28&type=chunk)[30](index=30&type=chunk) - Subsidiaries in Xianju and Lanxi have introduced Zhejiang Provincial Agricultural Investment Development Fund Co., Ltd. as a new shareholder and completed capital increases[28](index=28&type=chunk)[30](index=30&type=chunk) - Strategic cooperation with Wens Foodstuff Group Co., Ltd. has progressed, with the establishment of a joint venture, "Zhejiang Wens Huatong Animal Husbandry Co., Ltd.," for live pig breeding operations[30](index=30&type=chunk) - The company is actively expanding new projects, signing cooperation agreements with local governments in Lishu County, Dongyang City, and Tiantai County, and establishing several new controlled or wholly-owned subsidiaries to conduct live pig breeding business in Jiande, Yiwu, Xiangshan, and Pujiang, with most projects currently in the planning stage[30](index=30&type=chunk)[34](index=34&type=chunk) [Other Significant Matters](index=9&type=section&id=Item%203.3.%20Other%20Significant%20Matters) During the reporting period, the company had no share repurchases, securities investments, entrusted wealth management, derivative investments, irregular external guarantees, or non-operating fund occupation by controlling shareholders - During the reporting period, the company had no share repurchases, securities investments, entrusted wealth management, or derivative investments[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - The company had no overdue unfulfilled commitments, irregular external guarantees, or non-operating fund occupation by the controlling shareholder and its related parties[34](index=34&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - No reception of research, communication, or interview activities occurred during the reporting period[41](index=41&type=chunk) [Financial Statements](index=11&type=section&id=Item%204.%20Financial%20Statements) [Consolidated Financial Statements](index=11&type=section&id=Item%204.1.%20Consolidated%20Financial%20Statements) As of March 31, 2020, the company's consolidated total assets were **3.53 billion CNY**, total liabilities **1.64 billion CNY**, with Q1 2020 operating revenue of **2.13 billion CNY** and net profit attributable to parent of **44.17 million CNY** [Consolidated Balance Sheet](index=11&type=section&id=Item%204.1.1.%20Consolidated%20Balance%20Sheet) As of March 31, 2020, the company's total consolidated assets were **3.53 billion CNY**, a **15.15%** increase from the beginning of the period, with total liabilities of **1.64 billion CNY** and total equity attributable to parent company owners of **1.55 billion CNY** Consolidated Balance Sheet (CNY) | Item | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 3,526,187,535.98 | 3,062,145,607.23 | | Total Liabilities | 1,642,116,956.05 | 1,375,248,159.17 | | Total Equity Attributable to Parent Company Owners | 1,547,403,811.29 | 1,484,179,908.87 | | Total Liabilities and Owners' Equity | 3,526,187,535.98 | 3,062,145,607.23 | [Consolidated Income Statement](index=16&type=section&id=Item%204.1.2.%20Consolidated%20Income%20Statement) In Q1 2020, the company achieved total operating revenue of **2.13 billion CNY**, a **59.69%** increase year-over-year, with total operating costs of **2.08 billion CNY** and net profit attributable to parent company owners of **44.17 million CNY** Consolidated Income Statement (CNY) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,133,364,385.64 | 1,335,971,748.29 | | II. Total Operating Cost | 2,079,114,670.21 | 1,285,327,751.85 | | III. Operating Profit | 63,727,152.13 | 59,998,320.67 | | IV. Total Profit | 62,245,134.74 | 59,865,778.05 | | Net Profit Attributable to Parent Company Owners | 44,170,677.39 | 47,460,097.13 | | Basic Earnings Per Share | 0.16 | 0.18 | [Consolidated Cash Flow Statement](index=21&type=section&id=Item%204.1.3.%20Consolidated%20Cash%20Flow%20Statement) In Q1 2020, net cash flow from operating activities significantly improved to **119.23 million CNY**, while net cash outflow from investing activities was **150.18 million CNY**, and net cash inflow from financing activities was **396.57 million CNY** Consolidated Cash Flow Statement (CNY) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 119,229,313.63 | -27,131,947.49 | | Net Cash Flow from Investing Activities | -150,177,379.31 | -144,350,686.73 | | Net Cash Flow from Financing Activities | 396,571,256.51 | 112,483,891.62 | | Net Increase in Cash and Cash Equivalents | 365,623,190.83 | -58,998,742.61 | | Cash and Cash Equivalents at Period-End | 711,884,799.00 | 265,293,720.09 | [Parent Company Financial Statements](index=14&type=section&id=Item%204.2.%20Parent%20Company%20Financial%20Statements) At the parent company level, as of March 31, 2020, total assets were **2.28 billion CNY**, with Q1 2020 operating revenue of **636.45 million CNY** and net profit of **24.09 million CNY** [Parent Company Balance Sheet](index=14&type=section&id=Item%204.2.1.%20Parent%20Company%20Balance%20Sheet) As of March 31, 2020, the parent company's total assets were **2.28 billion CNY**, total liabilities **1.03 billion CNY**, and total owner's equity **1.25 billion CNY**, with significant long-term equity investments and other receivables Parent Company Balance Sheet (CNY) | Item | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 2,276,148,041.62 | 1,971,326,843.31 | | Total Liabilities | 1,028,847,062.48 | 768,428,133.69 | | Total Owners' Equity | 1,247,300,979.14 | 1,202,898,709.62 | | Total Liabilities and Owners' Equity | 2,276,148,041.62 | 1,971,326,843.31 | [Parent Company Income Statement](index=19&type=section&id=Item%204.2.2.%20Parent%20Company%20Income%20Statement) In Q1 2020, the parent company's operating revenue reached **636.45 million CNY**, more than doubling year-over-year, with a net profit of **24.09 million CNY**, significantly influenced by investment income of **23.98 million CNY** Parent Company Income Statement (CNY) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | I. Operating Revenue | 636,449,663.06 | 309,346,030.31 | | Investment Income | 23,976,975.13 | 0.00 | | II. Operating Profit | 26,087,753.96 | 19,757,562.34 | | IV. Net Profit | 24,087,592.02 | 19,734,301.98 | [Parent Company Cash Flow Statement](index=23&type=section&id=Item%204.2.3.%20Parent%20Company%20Cash%20Flow%20Statement) In Q1 2020, the parent company's net cash flow from operating activities turned positive at **38.50 million CNY**, with net cash outflow from investing activities of **127.56 million CNY** and net cash inflow from financing activities of **251.85 million CNY** Parent Company Cash Flow Statement (CNY) | Item | Current Period | Prior Period | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 38,497,945.22 | -44,745,264.47 | | Net Cash Flow from Investing Activities | -127,562,494.41 | -92,893,641.81 | | Net Cash Flow from Financing Activities | 251,846,654.28 | 161,069,819.76 | | Net Increase in Cash and Cash Equivalents | 162,782,105.09 | 23,430,913.47 | | Cash and Cash Equivalents at Period-End | 255,466,838.20 | 134,425,039.86 | [Financial Statement Adjustments and Audit](index=24&type=section&id=Item%204.3.%20Financial%20Statement%20Adjustments%20and%20Audit) The company did not adjust its opening financial statements due to the first-time adoption of new revenue or lease standards in the current reporting period, and this quarterly financial report is unaudited - The company did not adjust its opening financial statements due to the first-time adoption of new revenue or lease standards starting from 2020[89](index=89&type=chunk)[91](index=91&type=chunk) - The company's Q1 2020 report is unaudited[91](index=91&type=chunk)