Business Overview - The company's main business revenue primarily comes from food products, including fresh pork, fresh poultry, and ham, indicating a strong focus on the meat processing sector [8]. - The company continues to focus on its core business of livestock slaughtering, with significant revenue derived from fresh pork products [64]. - The company has not experienced any significant changes in its main business operations during the reporting period [65]. - The company is a key player in the agricultural industrialization sector and a leading enterprise in large-scale livestock and poultry slaughtering in Zhejiang Province, focusing on slaughtering, meat processing, livestock breeding, and feed processing [143]. Financial Performance - Zhejiang Huatong Meat Products Co., Ltd. reported a revenue of RMB 1.2 billion for the fiscal year 2019, representing a year-on-year increase of 15% [34]. - The company achieved a net profit of RMB 150 million in 2019, which is a 10% increase compared to the previous year [34]. - The company's operating revenue for 2019 was CNY 7,705,776,975.10, representing a 50.56% increase compared to CNY 5,118,042,889.19 in 2018 [49]. - The net profit attributable to shareholders for 2019 was CNY 131,652,028.31, a decrease of 12.35% from CNY 150,208,674.18 in 2018 [49]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 90,466,753.13, down 18.89% from CNY 111,535,331.86 in 2018 [49]. - The net cash flow from operating activities for 2019 was CNY 127,624,635.75, a significant decline of 51.07% compared to CNY 260,851,201.93 in 2018 [49]. - The total assets at the end of 2019 were CNY 3,062,145,607.23, reflecting a 40.75% increase from CNY 2,175,629,248.29 at the end of 2018 [53]. - The net assets attributable to shareholders at the end of 2019 were CNY 1,484,179,908.87, an increase of 14.36% from CNY 1,297,867,905.04 at the end of 2018 [53]. - The company reported a basic earnings per share of CNY 0.49 for 2019, down 12.50% from CNY 0.56 in 2018 [49]. - The company achieved a total revenue of 770,577.70 million CNY in 2019, representing a year-on-year growth of 50.56% [82]. Inventory and Assets - As of the end of the reporting period, the company's inventory book value was 338.20 million yuan, accounting for 11.04% of total assets, highlighting potential risks related to inventory depreciation [12]. - Inventory increased significantly to CNY 338.20 million, accounting for 11.04% of total assets, up 4.62% due to increased reserves of frozen pork products [117]. - Fixed assets rose to CNY 1,146.56 million, making up 37.44% of total assets, an increase of 1.51% attributed to new subsidiaries and equipment [117]. - Short-term borrowings surged to CNY 719.96 million, representing 23.51% of total assets, a significant increase of 14.53% due to project financing and inventory replenishment [117]. Risks and Challenges - The company faces significant risks from animal epidemics, which could lead to a decrease in livestock supply and negatively impact sales and performance [12]. - Fluctuations in raw material prices, particularly for live pigs and poultry, pose a risk to the company's operating performance due to their cyclical nature influenced by various market factors [12]. - The company is exposed to consumer confidence risks in the livestock industry, which could be affected by quality issues in the sector [14]. - The company reported that the outbreak of major animal diseases could lead to a significant decline in production and sales volume, impacting overall performance [12]. - The company faces risks related to potential changes in tax exemption policies for agricultural products, which could significantly impact its operating performance [172]. - The company is addressing the challenges posed by African swine fever by optimizing prevention measures and government policies to promote industry transformation [153]. - The company has a risk of raw material price fluctuations, particularly for live pigs and poultry, which can affect profit margins if sales prices cannot be adjusted in a timely manner [160]. - The company is exposed to market competition risks as the industry undergoes rapid changes, with increasing concentration and competition among large-scale enterprises [170]. Strategic Initiatives - The company plans to distribute a cash dividend of 0.46 yuan per 10 shares (including tax) to all shareholders, with a capital reserve conversion of 6 shares for every 10 shares held [15]. - The company plans to launch two new product lines in 2020, focusing on organic meat products and ready-to-eat meals [34]. - Zhejiang Huatong aims to increase its market share by 5% in the next fiscal year through strategic partnerships and marketing initiatives [34]. - The company is investing RMB 200 million in new technology for meat processing to enhance production efficiency and product quality [34]. - The company is exploring potential acquisitions in the feed production sector to diversify its product offerings and strengthen its supply chain [34]. - The company has established a national pig procurement platform, which helps in optimizing procurement costs and improving supply chain stability [74]. - The company is focused on building a diversified marketing network that combines distribution and direct sales channels to respond to capacity expansion [154]. - The company will continue to strengthen its marketing team and broaden sales channels to enhance market control [145]. Government and Regulatory Factors - Changes in tax policies regarding agricultural products could adversely affect the company's operating performance, as it currently benefits from various tax exemptions [15]. - The company has obtained valid licenses for animal husbandry and slaughtering, which are subject to annual inspections; failure to pass these inspections could severely impact operations [166]. - In 2019, the government subsidies received by the company were 46.19 million CNY, accounting for 27.25% of the total profit [177]. - The company has received government subsidies of 27.25% of total profit in 2019, indicating reliance on government support [177]. Management and Governance - The company has implemented strict quality control standards across procurement, production, storage, and sales to mitigate the risk of food safety incidents [158]. - The company has committed to avoiding competition with its subsidiaries and will not invest in similar businesses [199]. - The company is committed to optimizing management systems and enhancing internal controls to mitigate risks associated with subsidiary management [177]. - The company has established a comprehensive profit distribution policy that aligns with regulatory requirements and protects minority shareholders' rights [186].

Financial Performance - Operating revenue for the period was CNY 2,019,617,167.91, representing a growth of 59.33% year-on-year[9] - Net profit attributable to shareholders was CNY 15,341,212.96, a decrease of 40.59% compared to the same period last year[9] - The net profit after deducting non-recurring gains and losses was CNY 5,971,498.93, down 67.34% year-on-year[9] - Basic earnings per share decreased by 57.14% to CNY 0.06[9] - Total operating revenue for the current period reached CNY 5,394,086,369.48, representing a year-on-year increase of 46.94% due to higher sales prices of fresh pork products[26] - The company reported a significant increase in inventory to ¥161,948,649.53 from ¥83,369,982.64, representing a growth of approximately 94.3%[59] - Total operating costs amounted to ¥2,013,190,662.01, up from ¥1,251,035,809.01, reflecting a growth of 60.9%[69] - Net profit for the period was ¥16,616,776.99, a decrease of 31.8% from ¥24,359,119.63 in the same period last year[72] Cash Flow - The net cash flow from operating activities was negative CNY 9,548,778.66, a decline of 284.61% compared to the previous year[9] - The net cash flow from operating activities was negative CNY 52,968,721.83, a decrease of 201.56% compared to the previous period[29] - Operating cash flow for the current period was negative at CNY -52,968,721.83, compared to a positive CNY 52,155,360.28 in the previous period[103] - The company reported a significant increase in cash received from operating activities, totaling CNY 5,895,686,172.39, compared to CNY 4,077,187,009.46 in the previous period, an increase of approximately 44.5%[103] - Total cash inflow from operating activities was 1,025,927,351.27, down from 1,314,471,214.17 year-over-year[107] - The total cash outflow from operating activities was 1,088,012,290.16, a decrease from 1,304,801,481.93 year-over-year[110] Assets and Liabilities - Total assets reached CNY 2,746,106,410.70, an increase of 26.22% compared to the previous year[9] - The company's accounts receivable increased by 89.31% to CNY 27,547,631.14, primarily due to some customers adopting a monthly settlement model[26] - The company's inventory rose by 159.63% to CNY 362,702,207.36, mainly due to an increase in product stock[26] - Current liabilities increased significantly to ¥948,466,679.43 from ¥508,808,473.28, an increase of around 86.5%[55] - Total liabilities rose to ¥1,138,055,811.68 from ¥736,479,089.94, indicating an increase of about 54.5%[55] - Total current assets increased to ¥953,982,255.73 from ¥683,480,589.70, representing an increase of approximately 39.6%[52] Shareholder Information - The total number of shareholders at the end of the reporting period was 13,381[14] - The largest shareholder, Huadong Group Co., Ltd., held 41.46% of the shares[14] Investments and Projects - The company plans to invest approximately ¥2 billion in the "Xinghua Huadong Pig Industry Chain Integration Project," which includes feed processing, pig farming, slaughtering, food processing, and market sales[30] - The company signed a cooperation agreement for the "Xianju Huadong Agricultural Complex Project" with a planned investment of ¥350 million, including vegetable production, fruit planting, and modern ecological farming[30] - The "Qujiang Huadong Pig Industry Chain Project" has a planned investment of ¥850 million, with the breeding farm expected to be operational by the end of 2019 and the fattening farm by the second half of 2020[30] - The company acquired a 35% stake in Zhengkang (Yiwu) Pig Industry Co., Ltd. through a purchase and two capital increases, enhancing its ecological farming capabilities[30] Expenses - The company's management expenses rose by 86.70% to CNY 101,024,397.71, mainly due to the recognition of equity incentive expenses[26] - Research and development expenses for the period were ¥11,102,557.35, significantly higher than ¥4,160,149.99 in the previous period, reflecting a 167.5% increase[69] - Operating expenses increased by 119.60% to ¥1,310,757.34, primarily due to increased non-current asset disposal and penalty expenses[30] Other Financial Metrics - The company reported a financial expense increase of 200.39% to CNY 15,722,465.92, mainly due to increased bank borrowings[26] - Income tax expenses decreased by 91.10% to ¥353,577.61, mainly due to the completion of income tax recognition from the previous period's subsidiary demolition[30] - The company has not conducted any repurchase transactions among its top shareholders during the reporting period[23] - The company has no violations regarding external guarantees during the reporting period[40] - There are no overdue commitments from the actual controller, shareholders, or related parties during the reporting period[41]

Group 1: Event Details - The company will participate in an online investor reception day on November 5, 2019, from 15:30 to 17:00 [1] - The event is organized by the China Securities Regulatory Commission Zhejiang Regulatory Bureau and Zhejiang Listed Companies Association [1] - Investors can join the event through the "P5W Roadshow" website [1] Group 2: Company Representatives - The event will feature company representatives including Chairman Zhu Jianyong, CFO Zhou Xihua, and Vice General Manager and Board Secretary Liao Wenfeng [1] - These representatives will engage with investors regarding corporate governance and operational development [1] Group 3: Communication Goals - The purpose of the event is to enhance communication with investors and provide a comprehensive understanding of the company's operations [1] - The company emphasizes the importance of accurate and complete information disclosure [1]

[Important Notice](index=2&type=section&id=Section%20I.%20Important%20Notice) [Management Statement](index=2&type=section&id=The%20Company%27s%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Guarantee%20the%20Truthfulness%2C%20Accuracy%2C%20and%20Completeness%20of%20the%20Quarterly%20Report%20Content) The company's management guarantees the truthfulness and completeness of the quarterly report, with all directors attending the review meeting - Management declares the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) - All directors attended the board meeting reviewing this quarterly report[5](index=5&type=chunk) [Company Profile](index=3&type=section&id=Section%20II.%20Company%20Profile) [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company experienced significant revenue growth but a decline in net profit and negative operating cash flow, with prior year data adjusted for accounting policy changes Key Financial Indicators for Q1-Q3 2019 | Indicator | Year-to-Date (2019) | Prior Year Period (2018) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 5,394,086,369.48 | 3,671,042,539.93 | 46.94% | | Net Profit Attributable to Shareholders (CNY) | 89,663,188.95 | 98,828,897.02 | -9.27% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) (CNY) | 58,892,450.57 | 67,098,644.66 | -12.23% | | Net Cash Flow from Operating Activities (CNY) | -52,968,721.83 | 52,155,360.28 | -201.56% | | Basic Earnings Per Share (CNY/share) | 0.33 | 0.37 | -10.81% | | Weighted Average Return on Net Assets | 6.57% | 8.15% | -1.58% | Asset Status at Period End | Indicator | Current Period End (2019-09-30) | Prior Year End (2018-12-31) | Change | | :--- | :--- | :--- | :--- | | Total Assets (CNY) | 2,746,106,410.70 | 2,175,629,248.29 | 26.22% | | Net Assets Attributable to Shareholders (CNY) | 1,426,451,793.99 | 1,297,867,905.04 | 9.91% | - From the beginning of the year to the end of the reporting period, non-recurring gains and losses totaled **CNY 30.77 million**, primarily comprising government subsidies of **CNY 27.25 million**[13](index=13&type=chunk) [Shareholder Information](index=4&type=section&id=II.%20Total%20Number%20of%20Shareholders%20and%20Top%20Ten%20Shareholders%27%20Holdings%20at%20Period%20End) The company had 13,381 shareholders, with the controlling shareholder holding 41.46% of shares, and some top shareholders having related party relationships Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Huatong Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 41.46% | 115,000,378 | | Jiatong Enterprise Co., Ltd. | Overseas Legal Person | 9.08% | 25,191,253 | | Wens (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 | | ContiFeed (China) Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.83% | 7,862,931 | - Controlling shareholder Huatong Group Co., Ltd. has a related party relationship with the fourth largest shareholder Yiwu Huachen Investment Consulting Co., Ltd. ContiFeed (China) Co., Ltd. and ContiFeed Additives (Beijing) Co., Ltd. are under common control[17](index=17&type=chunk) [Significant Matters](index=7&type=section&id=Section%20III.%20Significant%20Matters) [Analysis of Changes in Key Financial Data](index=7&type=section&id=I.%20Changes%20and%20Reasons%20for%20Key%20Financial%20Data%20and%20Indicators%20During%20the%20Reporting%20Period) Significant changes in financial indicators include increased inventory and prepayments, a surge in short-term borrowings, revenue growth offset by rising costs, and negative operating cash flow due to inventory increases Balance Sheet Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Prepayments | 536.24% | Increase in advance payments for goods in the current period | | Inventory | 159.63% | Increase in product inventory in the current period | | Short-term Borrowings | 203.33% | Increase in bank borrowings in the current period | | Other Payables | 170.82% | Receipt of employee equity incentive restricted stock subscription funds | Income Statement Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Operating Revenue | 46.94% | Increase in sales price of fresh pork products | | Operating Cost | 47.07% | Increase in purchase price of live hogs and fresh pork | | Administrative Expenses | 86.70% | Recognition of equity incentive expenses in the current period | | Financial Expenses | 200.39% | Increase in bank borrowings in the current period | Cash Flow Statement Key Item Changes and Reasons | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -201.56% | Increase in product inventory in the current period | | Net Cash Flow from Investing Activities | -32.39% | Increase in new subsidiary acquisitions and subsidiary project investments in the current period | | Net Cash Flow from Financing Activities | 34.22% | Increase in bank borrowings and receipt of employee equity incentive subscription funds in the current period | [Progress of Major Investment Projects](index=8&type=section&id=II.%20Analysis%20and%20Explanation%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Matters) The company is advancing integrated hog industry chain projects in multiple locations, expected to boost output by 2020, and has a strategic partnership with Wens Foodstuff Group - The first phase of the Jiangsu Xinghua integrated hog industry chain project (total investment approximately **CNY 2 billion**) is under construction, with the breeding farm expected to be operational by H1 2020, capable of producing about **200,000 commercial hogs annually**[28](index=28&type=chunk) - The Zhejiang Xianju Huatong Agricultural Complex project (total investment **CNY 350 million**) is under construction, with the breeding farm expected to be operational by the end of 2019[31](index=31&type=chunk) - In March 2019, the company signed a Strategic Cooperation Framework Agreement with Wens Foodstuff Group Co., Ltd., establishing a strategic partnership for hog breeding and slaughtering businesses[33](index=33&type=chunk) [Investor Relations Activities](index=11&type=section&id=VIII.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20and%20Interview%20Activities%20During%20the%20Reporting%20Period) The company hosted an institutional site visit on September 20, 2019, with details disclosed on the SZSE Interactive Easy platform - The company hosted an institutional investor site visit on September 20, 2019[43](index=43&type=chunk) [Financial Statements](index=13&type=section&id=Section%20IV.%20Financial%20Statements) [Consolidated Balance Sheet](index=13&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of September 30, 2019, total assets increased by 26.22%, total liabilities surged by 54.53% due to short-term borrowings, and equity attributable to owners of the parent company grew by 9.91% Consolidated Balance Sheet Key Items (Unit: CNY) | Item | September 30, 2019 | December 31, 2018 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,746,106,410.70 | 2,175,629,248.29 | 26.22% | | Total Liabilities | 1,138,055,811.68 | 736,479,089.94 | 54.53% | | Total Equity Attributable to Owners of Parent Company | 1,426,451,793.99 | 1,297,867,905.04 | 9.91% | | Total Equity | 1,608,050,599.02 | 1,439,150,158.35 | 11.74% | [Consolidated Income Statement](index=19&type=section&id=3.%20Consolidated%20Income%20Statement%20for%20the%20Current%20Reporting%20Period) Q1-Q3 2019 saw operating revenue grow by 46.94% to CNY 5.39 billion, but net profit attributable to owners of the parent company declined by 9.27% due to rising costs Consolidated Income Statement - Q3 2019 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 2,019,617,167.91 | 1,267,589,798.91 | 59.33% | | Operating Profit | 16,614,419.40 | 24,733,777.42 | -32.83% | | Net Profit Attributable to Owners of Parent Company | 15,341,212.96 | 25,822,589.93 | -40.59% | Consolidated Income Statement - Year-to-Date Q3 2019 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 5,394,086,369.48 | 3,671,042,539.93 | 46.94% | | Operating Profit | 111,699,629.28 | 105,177,667.82 | 6.20% | | Net Profit Attributable to Owners of Parent Company | 89,663,188.95 | 98,828,897.02 | -9.27% | [Consolidated Cash Flow Statement](index=28&type=section&id=7.%20Consolidated%20Cash%20Flow%20Statement%20from%20Year-Beginning%20to%20Period%20End) Q1-Q3 2019 saw negative operating cash flow due to increased purchases, significant investing outflows for asset acquisition, and financing inflows from new borrowings and investments Consolidated Cash Flow Statement Summary (YTD Q3 2019) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -52,968,721.83 | 52,155,360.28 | | Net Cash Flow from Investing Activities | -365,716,140.72 | -276,249,351.09 | | Net Cash Flow from Financing Activities | 358,177,816.13 | 266,861,923.52 | | Net Increase in Cash and Cash Equivalents | -60,507,046.43 | 42,766,279.17 | [Audit Report](index=32&type=section&id=III.%20Audit%20Report) The company's third-quarter 2019 report remains unaudited - The company's third-quarter report is unaudited[111](index=111&type=chunk)

Revenue and Profitability - The company's operating revenue for the reporting period reached ¥3,374,469,201.57, representing a 40.40% increase compared to ¥2,403,452,741.02 in the same period last year[40]. - The net profit attributable to shareholders of the listed company was ¥74,321,975.99, showing a slight increase of 1.80% from ¥73,006,307.09 in the previous year[40]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥55,254,828.26, which is a 13.20% increase from ¥48,812,411.53 in the same period last year[40]. - The basic earnings per share for the reporting period was ¥0.28, up 3.70% from ¥0.27 in the previous year[40]. - The diluted earnings per share also stood at ¥0.28, reflecting a 3.70% increase from ¥0.27 in the same period last year[40]. - The weighted average return on equity was 5.54%, a decrease of 0.51% from 6.05% in the previous year[40]. Cash Flow and Assets - The net cash flow from operating activities was -¥43,070,986.95, a significant decline of 191.67% compared to ¥44,582,887.94 in the previous year[40]. - The total assets at the end of the reporting period amounted to ¥2,565,280,086.43, reflecting a 17.91% increase from ¥2,175,629,248.29 at the end of the previous year[40]. - The net assets attributable to shareholders of the listed company were ¥1,391,650,231.03, which is a 7.23% increase from ¥1,297,867,905.04 at the end of the previous year[40]. - The company’s cash and cash equivalents decreased by 98.95%, indicating liquidity challenges during the reporting period[73]. - Cash and cash equivalents at the end of the reporting period amounted to ¥296,551,140.81, representing 11.56% of total assets, an increase of 3.46% compared to the previous year[81]. - Inventory increased to ¥320,574,867.81, accounting for 12.50% of total assets, reflecting a 4.03% rise due to increased product stock[81]. Business Operations and Strategy - The main business revenue for the reporting period primarily comes from food products, including fresh pork, fresh poultry, and ham[6]. - The main business of the company includes feed processing, livestock breeding, slaughtering, and meat processing, with fresh pork products being the primary source of revenue[50]. - The company has established a national pig procurement platform, allowing for optimized sourcing based on price and transportation costs, enhancing supply chain efficiency[60]. - The company has introduced advanced slaughtering technology from leading international manufacturers, improving product quality compared to traditional methods[56]. - The company has a unique regional distribution model for fresh meat products, allowing for timely responses to market demand and enhancing customer stability[61]. - The company expanded its pig farming and slaughtering operations by acquiring subsidiaries, enhancing its market presence in and outside Zhejiang Province[67]. Risks and Challenges - The company faces significant risks related to food safety, which could lead to a substantial decline in operating profit if any incidents occur[6]. - Animal epidemic risks are critical, as outbreaks can reduce livestock supply and negatively impact sales, leading to a potential drop in performance[10]. - Fluctuations in raw material prices, particularly for live pigs and poultry, can adversely affect the company's operating results if product prices cannot be adjusted in a timely manner[10]. - The company faces risks related to food safety, animal diseases, and raw material price fluctuations, which could significantly impact operational performance if not managed effectively[120][121]. - The company is exposed to market competition risks as the industry is experiencing rapid changes in competition dynamics, with larger enterprises expanding capacity and market share[130]. - The company is at risk of increased costs due to potential changes in environmental regulations affecting its livestock and meat processing operations[135]. Shareholder and Governance Matters - The company does not plan to distribute cash dividends or issue bonus shares, nor will it increase capital from reserves[13]. - The actual controller and shareholders have fulfilled their commitments during the reporting period[145]. - The company has made commitments to avoid competition with its subsidiaries, ensuring no investments in similar businesses[145]. - The company has a lock-up commitment for shares held by its controlling shareholder for 36 months post-IPO, with specific conditions for share reduction thereafter[151]. - The company will notify the issuer in writing about any share reduction intentions, which must be announced publicly[151]. - The company has committed to strict compliance with the Company Law of the People's Republic of China and the Shenzhen Stock Exchange regulations regarding shareholding changes[157]. Investment and Development Projects - The company signed an investment agreement for the "Xianju Huadong Livestock and Poultry Industry Chain Project" to enhance its integrated operations[67]. - The company has ongoing projects that are still under construction, with no significant changes in feasibility reported[105]. - The company is currently implementing several major non-raised fund investment projects, including the integrated construction project of the entire pig industry chain with a planned total investment of 200 million CNY, which has seen an actual investment of 604.6 million CNY[107]. - The company has plans for market expansion through the construction of various agricultural and livestock projects, including the establishment of an ecological pig farming project with a total investment of 37 million CNY[107]. Quality Control and Certifications - The company has received multiple quality certifications, enhancing its brand reputation and market competitiveness[57]. - The company has implemented strict quality control standards across procurement, production, storage, and sales to mitigate food safety risks[120]. Miscellaneous - The company has not encountered any issues with the use and disclosure of raised funds during the reporting period[101]. - The company has not sold any significant assets during the reporting period[111]. - The company has no media scrutiny or penalties during the reporting period[183][184]. - The company has not reported any significant changes in its operational strategies in this report[188].

浙江华统肉制品股份有限公司 2019 年第一季度报告全文 浙江华统肉制品股份有限公司 2019 年第一季度报告 1 2019 年 04 月 浙江华统肉制品股份有限公司 2019 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周喜华及会计机构负责人(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 2019 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 ...

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 fiscal year 2018, representing a year-on-year increase of 15%[39]. - The company achieved a net profit of RMB 150 million in 2018, which is a 10% increase compared to the previous year[39]. - The company's operating revenue for 2018 was ¥5,118,042,889.19, an increase of 8.54% compared to ¥4,715,431,945.35 in 2017[46]. - The net profit attributable to shareholders for 2018 was ¥150,208,674.18, representing a growth of 26.81% from ¥118,454,500.07 in 2017[46]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥111,535,331.86, up 35.06% from ¥82,579,883.71 in 2017[46]. - The net cash flow from operating activities for 2018 was ¥260,851,201.93, a 35.42% increase from ¥192,626,692.46 in 2017[46]. - Total revenue for 2018 reached ¥5,118,042,889.19, an increase of 8.54% compared to ¥4,715,431,945.35 in 2017[84]. - The fresh pork segment accounted for 91.51% of total revenue, generating ¥4,683,568,557.01, up 0.38% from the previous year[84]. - The company's gross profit margin for the slaughtering and meat processing industry was 6.15%, with a year-on-year increase of 1.56%[88]. Risks and Challenges - The company faces significant risks related to food safety incidents, which could severely impact its brand reputation and sales, leading to a substantial decline in operating profits[7]. - Animal epidemic risks are critical, as outbreaks can reduce livestock supply and consumer confidence, potentially leading to a significant drop in sales[11]. - Fluctuations in raw material prices, particularly for live pigs and poultry, can adversely affect the company's financial performance if product prices cannot be adjusted in a timely manner[11]. - The company faces risks related to food safety, animal diseases, and raw material price fluctuations, which could significantly impact its operations and profitability[155][156]. - The company is exposed to inventory impairment risks for its ham products, which have a production cycle exceeding 8 months; fluctuations in raw material prices could lead to significant financial impacts[174]. Strategic Initiatives and Future Outlook - Future outlook includes a projected revenue growth of 20% for 2019, driven by market expansion and new product introductions[39]. - The company plans to launch two new product lines in 2019, focusing on organic meat products and ready-to-eat meals[39]. - The company is exploring potential acquisitions in the feed production sector to strengthen its supply chain[39]. - Market expansion efforts will focus on increasing distribution channels in tier-2 and tier-3 cities across China[39]. - The company aims to enhance its integrated operation model and expand its industry scale, focusing on pig slaughter and breeding[151]. - Key projects include the "Xinghua Pig Full Industry Chain Integration Project" and "Xianju Huadong Agricultural Complex Project," aimed at ensuring smooth implementation[151]. - The company plans to leverage its technological and management advantages to improve the performance of newly acquired companies and increase market share[151]. - The company aims to retain undistributed profits primarily for investment in projects and to repay bank loans, with a focus on sustainable development and maximizing shareholder interests[189]. Financial Management and Investment - The profit distribution plan approved by the board proposes no cash dividends and no bonus shares for shareholders, based on a base of 268,000,050 shares[16]. - The company has implemented a cash dividend policy, distributing 1.27 RMB per 10 shares in 2018, alongside a capital reserve increase of 5 shares for every 10 shares held[182]. - The total distributable profit for 2018 was 554,167,588.71 yuan, with no cash dividends planned due to major capital expenditure arrangements[194]. - The company plans to invest approximately 20 billion yuan in the "Xinghua Huaton full industry chain integration project" and other projects, indicating significant capital expenditure needs[189]. - The company’s investment needs are expected to increase as projects progress, indicating a strategic focus on expansion and operational scaling[189]. Operational Efficiency and Production Capacity - The company has adopted a production model based on sales orders and forecasts, enhancing its operational efficiency in the livestock procurement process[61]. - The company has established a national pig procurement platform, allowing for optimized sourcing based on price and transportation costs[70]. - The company is investing 8.5 billion yuan in the "Qujiang Huadong Pig Industry Chain Project" and 2.5 billion yuan in the "Lanxi Yongchang Food Processing Industry Park" for pig farming[78]. - The annual slaughtering capacity for pigs is 500,000 heads, with a total committed investment of CNY 16,023.69 million, achieving an investment progress of 100.31%[119]. - The annual slaughtering capacity for poultry is 36 million birds, with a total committed investment of CNY 10,000 million, achieving an investment progress of 100.00%[119]. Market Position and Competition - The company is a key player in the agricultural industrialization sector and a leading enterprise in large-scale livestock and poultry slaughtering in Zhejiang Province[138]. - The company has a strong brand presence in Zhejiang province, with its products recognized in various agricultural exhibitions[69]. - The company faces increasing competition in the meat processing industry, with leading enterprises like Shuanghui Development and Yurun Food expanding their production capacity and market share[165]. - The company's sales are highly concentrated in Zhejiang Province, which poses a risk; efforts will be made to expand into markets outside of Zhejiang while deepening existing market penetration[166]. Compliance and Regulatory Environment - The company is committed to maintaining compliance with regulatory requirements for its production licenses to avoid operational disruptions[164]. - The company will closely monitor changes in tax, environmental, and government subsidy policies to mitigate potential risks[172]. - Government subsidies received by the company were 20.18 million RMB, 27.72 million RMB, and 32.92 million RMB for the years 2016, 2017, and 2018, respectively, accounting for 35.81%, 23.40%, and 22.31% of total profit[171]. - The company is at risk of reduced government support for agricultural enterprises, which could negatively impact profitability if subsidies decrease[171].

Financial Performance - Operating revenue for the reporting period was CNY 1,267,589,798.91, reflecting a year-on-year growth of 16.81%[8] - Net profit attributable to shareholders was CNY 25,822,589.93, a decrease of 1.83% compared to the same period last year[8] - Basic earnings per share were CNY 0.14, a decline of 6.67% compared to the same period last year[8] - The weighted average return on equity was 2.20%, a decrease of 0.14% year-on-year[8] - The estimated net profit attributable to shareholders for 2018 is expected to be between RMB 124.38 million and RMB 148.07 million, representing a year-on-year increase of 5% to 25%[25] - The net profit for 2017 attributable to shareholders was RMB 118.45 million, indicating a significant growth potential for 2018[25] - The increase in performance is primarily due to the expansion of production and sales scale, leading to improved efficiency[25] Assets and Liabilities - Total assets at the end of the reporting period reached CNY 1,983,590,650.29, an increase of 25.65% compared to the end of the previous year[8] - Accounts receivable increased by 39.99% to ¥28,226,996.23 due to increased receivables from customers[18] - Prepaid accounts increased by 409.33% to ¥20,624,848.26 primarily due to increased advance payments for raw materials[18] - Construction in progress surged by 469.17% to ¥333,529,919.23 as a result of increased investment in construction by subsidiaries[18] - Short-term borrowings rose dramatically by 2067.78% to ¥195,100,000.00 due to increased bank loans[18] Cash Flow - The net cash flow from operating activities was CNY 5,172,472.34, down 92.09% year-on-year[8] - Net cash flow from operating activities decreased by 60.40% to ¥49,755,360.28 mainly due to changes in inventory[20] - Net cash flow from investing activities worsened by 131.59% to -¥273,849,351.09 due to increased investment in new factory construction[20] - Net cash flow from financing activities increased significantly by 4218.18% to ¥266,861,923.52 primarily from increased bank loans[20] Shareholder Information - The total number of shareholders at the end of the reporting period was 16,075[12] - The largest shareholder, Huadong Group Co., Ltd., held 42.91% of the shares, amounting to 115,000,378 shares[12] - The company’s capital stock increased by 50.00% to ¥268,000,050.00 due to the conversion of capital reserves into share capital[18] Strategic Initiatives - The company has not disclosed any new product developments or market expansion strategies in this report[10] - The company plans to invest a total of ¥20 billion in the integrated pig industry chain project in Xinhua City[22] - The company has signed a strategic cooperation agreement for the pig industry chain project in Qujiang District, with a planned total investment of ¥8.5 billion[22] - The company has established a subsidiary, Quzhou Huadong, to implement the "full industry chain project" for live pigs, with a total investment of approximately RMB 234 million as of the reporting period[23] - The company signed a strategic cooperation agreement with the Shandong Province government for a full industry chain project in Shandong, with a planned total investment of approximately RMB 1.45 billion[23] Non-Recurring Items - The company reported non-recurring gains and losses amounting to CNY 13,189,755.55 from the disposal of non-current assets[9]

Revenue and Profitability - The main business revenue for the reporting period primarily comes from food products, including fresh pork, fresh poultry, and ham [6]. - The company's operating revenue for the first half of 2018 was CNY 2,403,452,741.02, representing a 9.02% increase compared to CNY 2,204,677,220.70 in the same period last year [25]. - The net profit attributable to shareholders of the listed company was CNY 73,006,307.09, up 20.85% from CNY 60,411,892.63 year-on-year [25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 9.88% to CNY 48,812,411.53 from CNY 54,164,704.45 in the previous year [25]. - The total operating revenue for the reporting period was CNY 2,403,452,741.02, representing a year-on-year increase of 9.02% compared to CNY 2,204,677,220.70 [53]. - The company achieved a net profit of 150 million RMB in the same period, up 20% compared to the previous year [107]. - Future guidance estimates a revenue growth of 12% for the second half of 2018, targeting 1.35 billion RMB [108]. Financial Position - Total assets at the end of the reporting period were CNY 1,837,631,199.10, an increase of 16.40% from CNY 1,578,692,956.79 at the end of the previous year [25]. - The net assets attributable to shareholders of the listed company increased by 4.30% to CNY 1,220,665,537.95 from CNY 1,170,349,900.92 at the end of the previous year [25]. - The company's cash and cash equivalents decreased from 163,315,728.00 RMB to 148,872,029.39 RMB, a decline of approximately 8.8% [166]. - Total liabilities reached CNY 506,501,127.73, up from CNY 345,025,361.43, marking an increase of around 46.7% [168]. - Owner's equity totaled CNY 1,331,130,071.37, compared to CNY 1,233,667,595.36, indicating a growth of about 7.9% [169]. Investment and Expansion - The company is actively expanding its pig farming and slaughtering projects in Jiangsu and Zhejiang provinces, including the acquisition of Zhengkang Pig Industry and the establishment of several new companies [46]. - The company plans to invest CNY 2 billion in the "Xinghua Pig Full Industry Chain Integration Project" to expand its market presence outside Zhejiang province [93]. - The company has committed to an investment project for the annual slaughter of 500,000 pigs and a 10,000-ton meat processing project, with a total investment of CNY 26,023.69 million, of which CNY 24,792.05 million has been invested as of the reporting period, achieving a completion rate of 92.31% [70]. - The company is exploring potential acquisitions to diversify its product offerings and increase market share [108]. Risks and Challenges - The company faces significant risks related to food safety, which could severely impact its brand and reputation if any incidents occur [6]. - Animal disease outbreaks pose a risk to the company's supply chain and consumer confidence, potentially leading to a decline in sales [8]. - Fluctuations in raw material prices, particularly for live pigs and poultry, can adversely affect the company's operating performance if sales prices cannot be adjusted in a timely manner [9]. - Changes in tax policies regarding agricultural products could have a substantial negative impact on the company's financial performance [12]. - The company faces risks related to food safety, animal diseases, and raw material price fluctuations, which could significantly impact its operations and profitability [83][84][85]. Operational Efficiency - The company has a comprehensive business model covering livestock and poultry breeding, slaughtering, and processing [8]. - The company operates a national pig procurement platform and employs a production model based on sales orders and forecasts [33]. - The company has established strong market competitiveness and brand recognition in the fresh product sector after years of effort [33]. - The company has implemented a unique fresh meat distribution model, allowing for timely responses to market demand and improving customer stability [41]. Shareholder and Governance Matters - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital [13]. - The company has committed to maintaining a competitive edge by investing 30 million RMB in R&D for innovative meat processing technologies [108]. - The company will publicly explain any failure to fulfill commitments regarding stock price stabilization and will apologize to shareholders [114]. - The company has established internal regulations to prevent improper influence from controlling shareholders [113]. Market Presence and Customer Base - The company has formed a brand advantage in Zhejiang province and has a stable customer base with high loyalty to the Huadong brand, which it aims to enhance through various marketing strategies [86]. - User data indicated a growth in customer base by 10%, reaching 500,000 active users [108]. - The company plans to expand its market presence by entering three new provinces by the end of 2018 [108]. Research and Development - Research and development expenses rose significantly by 54.14% to CNY 7,679,929.90, primarily due to increased investment in R&D projects [51]. - The company is investing 50 million RMB in technology upgrades to enhance production efficiency [108]. Compliance and Regulatory Matters - The company has obtained valid licenses for animal epidemic prevention and food production, which are crucial for its operations; failure to renew these licenses could significantly impact its business [89][90]. - The company has established efficient waste treatment facilities to ensure compliance with environmental standards [139]. - There were no penalties or rectifications reported during the period, indicating adherence to regulatory requirements [124].

浙江华统肉制品股份有限公司 2018 年第一季度报告正文 证券代码：002840 证券简称：华统股份 公告编号：2018-034 浙江华统肉制品股份有限公司 2018 年第一季度报告正文 1 浙江华统肉制品股份有限公司 2018 年第一季度报告正文 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。 公司负责人朱俭军、主管会计工作负责人周喜华及会计机构负责人(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 2018 年第一季度报告正文 单位：元 | 项目 | 年初至报告期期末金额 | 说明 | | --- | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 13,600,003.62 | | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统 | 2,529,596.58 | | | 一标准定额或定量享受的政府补助除外） | | | | 除同公 ...