Financial Performance - The company's operating revenue for 2022 was CNY 1,324,514,621.66, representing a 17.43% increase compared to CNY 1,127,956,763.43 in 2021[21]. - The net profit attributable to shareholders for 2022 was CNY 12,984,781.30, a decrease of 9.88% from CNY 14,408,910.20 in the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 9,347,129.88, down 50.50% from CNY 18,882,319.54 in 2021[21]. - The net cash flow from operating activities increased by 24.34% to CNY 115,060,475.98 from CNY 92,540,359.54 in the previous year[21]. - The total assets at the end of 2022 were CNY 1,190,181,545.26, reflecting a 9.48% increase from CNY 1,087,167,060.96 at the end of 2021[21]. - The net assets attributable to shareholders increased by 2.19% to CNY 605,528,788.71 from CNY 592,544,007.41 in 2021[21]. - The basic earnings per share for 2022 were CNY 0.06, a decrease of 14.29% from CNY 0.07 in the previous year[21]. - The diluted earnings per share also stood at CNY 0.06, down 14.29% from CNY 0.07 in 2021[21]. - The weighted average return on net assets was 1.88%, a decrease of 0.30% from 2.18% in the previous year[21]. Market Trends and Industry Insights - The dairy industry is recognized as a strategic sector for national development, with government policies supporting its growth, which may benefit the company's operations[33]. - The dairy industry in China is one of the fastest-growing sectors since the reform and opening up, with a significant increase in demand for high-quality products and services as the economy recovers[34]. - The trend towards high-value-added dairy products is driven by rising health awareness and diversified consumer preferences, leading to a shift towards premium, functional, and differentiated products[38]. - The dairy industry is experiencing a shift from a "quantity-focused" to a "quality-focused" consumption model, with consumers demanding a wider variety of dairy products[37]. - The government has implemented strict policies and standards for dairy processing projects, raising the entry barriers for new entrants in the industry[39]. - The stable supply of high-quality milk sources is crucial for dairy production, with large enterprises accelerating their layout in advantageous milk source areas[39]. - Brand recognition and loyalty are significant barriers in the dairy industry, requiring substantial time and financial investment for new entrants to establish a competitive brand[41]. Product Development and Innovation - The company is focusing on the development of new technologies and products, including IoT-based feed processing and quality monitoring systems, to enhance operational efficiency[27]. - The company has obtained organic milk certification for its two core brands, enhancing its market competitiveness[49]. - The company is actively investing in research and development for new technologies, including methods for producing soybean protein and yogurt[97]. - The company has developed functional low-temperature milk, full-fat flavored fermented milk, and organic milk series products[108]. - The company has completed the development of functional children's formula milk powder, enhancing product value and market competitiveness[129]. - The company has successfully launched new products, including a probiotic yogurt bag and a packaging design for pure milk, both of which have received patent authorization[97]. Sales and Distribution - In 2022, direct sales revenue decreased by 56.21% to CNY 2,442.62 million, primarily due to a decline in sales to local supermarkets and student milk programs, while distribution revenue increased by 26.17% to CNY 102,105.19 million due to market expansion outside the region[72]. - The number of distributors increased by 6.68% to 415, with a notable rise in both regional and non-regional areas, indicating successful market penetration strategies[75]. - The company has established a strong market presence through various sales channels, including e-commerce platforms and offline retail, enhancing consumer engagement and brand visibility[70]. - The company employs a combined direct sales and distribution model, utilizing online and offline channels, with a significant focus on big data and IoT technologies to maintain sales channels and pricing systems[68]. Financial Management and Governance - The company has not reported any significant discrepancies between financial data under international and Chinese accounting standards, ensuring consistency in financial reporting[24][25]. - The company has established a fair and transparent performance evaluation and incentive mechanism for senior management[163]. - The company has a dedicated financial department with an independent accounting system and tax compliance[168]. - The company emphasizes social responsibility and actively engages with stakeholders to balance interests[166]. - The company has a total of 8 board members, including 3 independent directors[173]. - The company maintains an independent governance structure, ensuring separation from the controlling shareholder in assets, personnel, and operations[167]. Operational Challenges and Risks - The company has experienced a loss of -10.56 million from debt restructuring, indicating challenges in financial management during the reporting period[28]. - The company faces increasing market competition risks due to brand and sales channel limitations, which may hinder rapid growth in scale, products, technology, and market expansion[155]. - The company has implemented strict disease prevention measures in its dairy farming operations to safeguard against potential outbreaks that could affect milk supply and quality[158]. - The company is actively pursuing government subsidies and tax incentives related to the dairy and feed processing industries to mitigate potential impacts from changes in government support[157]. Future Outlook and Strategic Goals - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[88]. - The company aims to stabilize the self-sufficiency level of infant formula milk powder at over 60% by 2023, with a focus on quality improvement and brand cultivation[65]. - The company aims to leverage unique natural resources in Xinjiang to enhance fresh milk quality, strengthen product R&D, and expand markets outside Xinjiang to increase market share and competitiveness[155]. - The company has set ambitious performance guidance for the upcoming fiscal year, aiming for a double-digit growth rate in revenue[96]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of 200 million CNY allocated for this purpose[88].

证券代码：300106 证券简称：西部牧业 公告编号：临 2023-018 新疆西部牧业股份有限公司 出席本次说明会的人员有：公司董事长李昌胜先生、独立董事秦明 先生、财务总监周桂红女士、董事会秘书梁雷先生。敬请广大投资者积 极参与。 特此公告。 关于举行 2022 年度报告网上业绩说明会的公告 本公司及董事会全体成员保证公告内容真实、准确、完整，并对公告中的虚假记载、误导 性陈述或者重大遗漏承担责任。 新疆西部牧业股份有限公司（以下简称"公司"）于 2023 年 4 月 25 日披露《2022 年年度报告》，为了让广大投资者能进一步了解公司 2022 年年度报告及经营情况，公司将于 2023 年 5 月 12 日（星期五） 下午 15:00-17:00 举行 2022 年年度报告网上业绩说明会。本次网上说 明会将采用网络远程的方式举行，投资者可通过以下方式参与互动交 流，提问通道自发出公告之日起开放。 参与方式一：在微信小程序中搜索"西部牧业投资者关系"； 参与方式二：微信扫一扫以下二维码： 投资者依据提示，授权登入"西部牧业投资者关系"微信小程序， 即可参与交流。 1 新疆西部牧业股份有限公司董事会 二〇 ...

Revenue and Profitability - Revenue for Q3 2022 reached ¥351,725,025.36, an increase of 17.54% year-over-year, while total revenue for the year-to-date was ¥973,430,435.30, up 18.37% compared to the same period last year[4] - Net profit attributable to shareholders for Q3 2022 was ¥2,482,440.24, a significant increase of 53.07% year-over-year, with year-to-date net profit at ¥14,562,441.40, showing a modest increase of 0.93%[4] - The net profit excluding non-recurring gains and losses for Q3 2022 was ¥3,781,089.93, up 131.65% year-over-year, while the year-to-date figure was ¥13,780,862.27, down 10.65%[4] - Total operating revenue for the period reached CNY 973,430,435.30, an increase of 18.4% compared to CNY 822,356,786.29 in the previous period[20] - Net profit for the period was CNY 33,638,798.34, a decrease of 1.8% from CNY 35,276,264.92 in the same period last year[22] - The company reported a total comprehensive income of CNY 33,638,798.34, slightly down from CNY 35,276,264.92 in the previous year[22] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date reached ¥104,327,429.96, an increase of 39.98%[4] - Net cash flow from operating activities grew by 39.98% year-to-date, driven by increased cash inflows from sales at Garden Dairy[12] - The company reported a net cash flow from operating activities of CNY 104,327,429.96, an increase of 40.0% compared to CNY 74,530,035.30 in the previous period[24] - Net cash flow from investing activities decreased by 64.15% year-to-date, primarily due to reduced fixed asset investments by Garden Dairy and Tianshan Yunmu Dairy[12] - Net cash flow from financing activities increased by 261.34% year-to-date, as there were no dividend distributions to shareholders this period compared to the previous year[12] - The net increase in cash and cash equivalents was ¥117,375,193.38, compared to ¥50,120,357.28 in the previous period, showing strong liquidity growth[25] - The ending balance of cash and cash equivalents was ¥358,802,922.20, up from ¥258,087,994.99 in the previous period[25] Assets and Liabilities - Total assets at the end of Q3 2022 were ¥1,254,496,523.60, reflecting a growth of 15.39% compared to the end of the previous year[4] - Total current assets as of September 30, 2022, amounted to CNY 717,705,236.55, up from CNY 523,715,290.79 at the beginning of the year[18] - Total assets reached CNY 1,254,496,523.60 as of September 30, 2022, compared to CNY 1,087,167,060.96 at the start of the year[18] - Total liabilities included short-term borrowings of CNY 211,000,000.00, up from CNY 187,000,000.00 at the start of the year[18] - The total liabilities increased to CNY 536,973,966.69 from CNY 403,283,302.39, reflecting a growth of 33.2%[20] Expenses - Operating expenses increased by 383.11% year-to-date compared to the same period last year, primarily due to donations and other non-recurring losses[12] - Income tax expenses rose by 267.58% year-to-date, mainly attributed to increased tax expenses from the subsidiary Garden Dairy[12] - The company recorded an increase in sales expenses to CNY 60,581,211.03, up from CNY 48,017,294.88, reflecting a 26.5% rise[20] - Research and development expenses increased to CNY 3,255,474.47, compared to CNY 2,613,510.75 in the previous period, showing a growth of 24.5%[20] Investments and Production - The company is actively engaged in the construction of new production lines, including a 10,000-ton infant formula production line and a 1.8 million-ton Tetra Pak liquid dairy production line[5] - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets was ¥4,808,682.24, a decrease of 64.7% from ¥13,593,232.01 in the previous period[25] - Net cash flow from investment activities was -¥4,787,362.24, compared to -¥13,355,091.01 in the previous period, indicating an improvement[25] Shareholder Information - The total equity attributable to shareholders of the parent company rose to CNY 607,106,448.81, up from CNY 592,544,007.41, marking a 2.6% increase[20] - Basic earnings per share improved to CNY 0.0689 from CNY 0.0683, indicating a slight growth in profitability per share[22]

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 621,705,409.94, representing an increase of 18.84% compared to CNY 523,130,816.25 in the same period last year[22]. - The net profit attributable to shareholders decreased by 5.67% to CNY 12,080,001.16 from CNY 12,805,888.51 year-on-year[22]. - The net profit after deducting non-recurring gains and losses fell by 27.50% to CNY 9,999,772.34 compared to CNY 13,791,880.52 in the previous year[22]. - The net cash flow from operating activities surged by 378.83% to CNY 65,590,285.77, up from CNY 13,698,045.60 in the same period last year[22]. - Total assets increased by 9.64% to CNY 1,191,930,395.63 from CNY 1,087,167,060.96 at the end of the previous year[22]. - The net assets attributable to shareholders rose by 2.04% to CNY 604,624,008.57 compared to CNY 592,544,007.41 at the end of the previous year[22]. - The company reported a total of 420,000 cubic meters of compliant wastewater discharge for the year, with 170,000 cubic meters reused for site greening and road cleaning[134]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the first half of 2022, representing a year-over-year growth of 15%[71]. - The company reported a significant increase in revenue, with a year-on-year growth of 15% in the first half of 2022[72]. Market and Industry Trends - The dairy industry in China is experiencing rapid growth, with liquid milk demand increasing at over 25% and the overall dairy consumption expected to rise significantly due to improving living standards[34]. - The industry is witnessing a trend towards higher market concentration, with major brands gaining market share through mergers and acquisitions, enhancing their control over supply chains[35]. - There is a growing demand for product innovation and differentiation in the dairy sector, driven by consumer preferences for diverse and healthy options[35]. - The dairy industry in China has seen a rapid increase in the number of processing enterprises, with nearly 5,000 companies emerging over the past decade, leading to a more concentrated market[40]. - The dairy industry in China is currently in an upward cycle, with increasing consumer demand for dairy products as living standards improve[48]. Product Development and Innovation - The company has launched a series of products targeting different age groups, including infant formula and senior milk powder, enhancing product diversification[42]. - The company is focusing on expanding its self-owned dairy farms to increase the proportion of self-supplied raw milk, which is expected to rise continuously in the future[47]. - The company is actively involved in the development of the entire dairy industry chain, which includes feed processing, dairy farming, and meat processing[42]. - The company is investing in research and development for new product innovations, particularly in the dairy and nutrition sectors[69]. - The company is expanding its product line to include protein dietary supplements and various food supplements, targeting health-conscious consumers[69]. Risk Management - The company faces various risks including product quality, market competition, and environmental protection[6]. - The company emphasizes the importance of risk awareness regarding future plans and performance forecasts[5]. - The company is exposed to risks from animal diseases affecting fresh milk supply and has implemented strict disease prevention measures[120]. - The company has established an environmental management system to comply with increasing environmental regulations and aims to reduce pollution and improve resource utilization[117]. Strategic Initiatives - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the industry[70]. - The company is focusing on logistics and cold chain services to improve its distribution capabilities and ensure product freshness[69]. - The company has developed a comprehensive sales strategy that includes online platforms, new media marketing, and various offline channels to enhance market reach[51]. - The company is leveraging advanced technologies such as big data and IoT to maintain product sales channels and pricing systems[49]. Financial Management - Operating costs increased to ¥512,062,580.35, up 16.08% from ¥441,140,850.89 year-on-year[87]. - Sales expenses rose significantly by 44.29% to ¥37,874,600.82, primarily due to increased sales efforts and advertising costs[87]. - Management expenses increased by 34.10% to ¥24,932,765.64, mainly driven by higher employee compensation related to performance management[87]. - Research and development investment grew by 31.58% to ¥2,498,048.41, reflecting the company's commitment to enhancing R&D efforts[87]. - The company reported a net loss of CNY 249,222,080.42 as of June 30, 2022, compared to a loss of CNY 261,302,081.58 at the beginning of the year, indicating a reduction in losses[185]. Corporate Social Responsibility - The company donated 700 units of Garden brand infant formula to communities in Shanghai to support COVID-19 relief efforts[137]. - The company, through its subsidiary Garden Dairy, donated products worth over 50,000 yuan to the "Love Garden" rehabilitation center[137]. - The company provided one year’s supply of Garden Fairy brand infant formula to five families with three children in Urumqi, Changji, and Shihezi cities as part of the national three-child policy support[137].

Revenue and Profit - The company's revenue for Q1 2022 was CNY 296,789,793.80, representing a 22.13% increase compared to CNY 243,012,169.11 in the same period last year[3] - Net profit attributable to shareholders was CNY 2,284,528.38, a 4.95% increase from CNY 2,176,693.60 year-on-year[3] - Total operating revenue for Q1 2022 was CNY 296,789,793.80, an increase of 22.2% compared to CNY 243,012,169.11 in the same period last year[17] - The net profit for the first quarter of 2022 was CNY 7,567,780.80, an increase of 17.4% compared to CNY 6,445,424.36 in the same period last year[18] - The total profit for the first quarter was CNY 7,959,134.42, up 17.8% from CNY 6,755,073.00 in the previous year[18] - Operating profit increased to CNY 8,452,356.51, representing a growth of 14.0% from CNY 7,413,387.71 in the prior year[18] - The company reported a basic and diluted earnings per share of CNY 0.0108, compared to CNY 0.0103 in the previous year[19] - The total comprehensive income for the first quarter was CNY 7,567,780.80, reflecting a significant increase from CNY 6,445,424.36 in the same period last year[19] Cash Flow - The net cash flow from operating activities decreased significantly by 1,491.66%, resulting in a negative cash flow of CNY -32,646,382.04 compared to a positive CNY 2,345,861.72 in the previous year[3] - Cash inflow from operating activities totaled CNY 285,239,642.45, compared to CNY 262,728,783.88 in the previous year[20] - The company's cash outflow from operating activities was CNY 317,886,024.49, compared to CNY 260,382,922.16 in the previous year[21] - The company's cash and cash equivalents at the end of Q1 2022 were CNY 236,744,749.76, a decrease of 3.1% from CNY 244,266,588.82 at the beginning of the year[13] - Cash and cash equivalents at the end of the period were CNY 233,905,889.76, slightly down from CNY 225,615,605.55 at the end of the previous year[22] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,151,720,293.98, up 5.94% from CNY 1,087,167,060.96 at the end of the previous year[3] - Accounts receivable increased by 77.06%, attributed to higher receivables from the subsidiary Quan Sheng Livestock[6] - The company’s total liabilities increased, with accounts payable rising by 41.44% due to increased raw material purchases[6] - Total liabilities increased to CNY 460,268,754.61, up 14.2% from CNY 403,283,302.39 at the beginning of the year[15] - The company’s total equity increased to CNY 691,451,539.37, up from CNY 683,883,758.57 at the beginning of the year[16] - Inventory at the end of Q1 2022 was CNY 126,086,182.47, an increase of 12.7% from CNY 111,891,505.36 at the beginning of the year[14] Research and Development - The company reported a 33.33% increase in R&D expenses, reflecting increased investment in innovation and product development[7] Non-Operating Income - The company experienced a 275.53% increase in non-operating income, primarily due to government subsidies received for agricultural projects[7] Impairment Loss - The company incurred a credit impairment loss of CNY -2,942,701.61 during the quarter[18] Profit Distribution - The company reported a decrease in undistributed profits to CNY -259,017,553.20 from CNY -261,302,081.58 at the beginning of the year[16]

Financial Performance - The company's operating revenue for 2021 was CNY 1,127,956,763.43, representing a 37.50% increase compared to CNY 820,327,472.41 in 2020[19]. - The net profit attributable to shareholders for 2021 was CNY 14,408,910.20, up 20.62% from CNY 11,945,396.84 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,882,319.54, a significant increase of 270.28% from CNY 5,099,505.44 in 2020[19]. - The total assets at the end of 2021 were CNY 1,087,167,060.96, a 1.46% increase from CNY 1,071,526,903.21 at the end of 2020[19]. - The net assets attributable to shareholders increased by 2.49% to CNY 592,544,007.41 from CNY 578,135,097.21 in 2020[19]. - The basic earnings per share for 2021 were CNY 0.07, reflecting a 16.67% increase from CNY 0.06 in the previous year[19]. - The weighted average return on net assets was 2.18%, up from 1.81% in 2020[19]. - Total revenue from dairy products reached ¥86,503.19 million in 2021, with a gross margin of 18.39%, up from 16.12% in 2020[56]. - The revenue from the dairy products segment was CNY 865,031,861.84, accounting for 76.69% of total revenue, with a growth of 44.12% year-on-year[88]. - The feed segment generated revenue of CNY 213,587,100.24, which is 18.94% of total revenue, showing a year-on-year increase of 12.38%[88]. Cash Flow and Investments - The net cash flow from operating activities decreased by 40.44% to CNY 92,540,359.54 from CNY 155,385,601.50 in 2020[19]. - The company received government subsidies totaling CNY 6.71 million in 2021, which is an increase from CNY 4.17 million in 2020[25]. - The operating cash inflow for 2021 was ¥1,217,317,112.72, an increase of 24.10% compared to ¥980,908,802.25 in 2020[103]. - Investment cash inflow dropped by 96.41% to ¥1,046,393.62, with a net cash flow from investment activities of -¥32,836,223.41[103]. - The net cash flow from financing activities decreased by 784.36% to -¥26,241,173.23, attributed to the repayment of bank loans[104]. Market and Industry Trends - The dairy industry in China is expected to see a significant recovery in consumption growth, with low-temperature fresh milk demand increasing by over 25% in 2021[30]. - The overall dairy product market in China is projected to continue growing rapidly, driven by rising consumer incomes and changing consumption patterns[31]. - The average per capita dairy consumption in China is only one-third of the world average, indicating substantial growth potential for the dairy market[31]. - The dairy industry in China has seen a significant increase in market concentration, with leading companies gaining higher market shares due to rising industry barriers[38]. - The company operates in a market with increasing concentration, as larger firms gain market share through mergers and acquisitions, enhancing their control over supply chains[32]. Product Development and Innovation - The company is involved in various projects, including a CNY 2 million investment in infant formula production line upgrades, reflecting its commitment to expanding product offerings[25]. - The company has developed new technologies in dairy farming, including special feeding for high-yield cows and stress resistance, improving dairy farming efficiency[43]. - The company has developed a range of new dairy products, including high-calcium low-fat milk and various flavored yogurts, to meet consumer demand[51]. - The company is developing a functional low-temperature milk product aimed at expanding its consumer base, particularly for diabetic and weight-loss populations[102]. - New product development includes the launch of a premium dairy line, expected to contribute an additional 200 million CNY in revenue[72]. Risk Management and Compliance - The company faces various risks including product quality, market competition, and environmental protection risks[4]. - The approval requirements for new dairy processing projects are stringent, with northern enterprises needing a daily processing capacity of 500 tons for new projects[36]. - The company emphasizes the importance of R&D talent, continuously recruiting high-level professionals such as graduates and PhDs, and has established project cooperation with several universities and institutions[67]. - The company is enhancing its risk management and internal controls to address potential product quality issues[126]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[199]. Corporate Governance - The company held 4 shareholder meetings during the reporting period, reviewing 51 proposals, ensuring equal rights for all shareholders[138]. - The board of directors consists of 8 members, including 3 independent directors, and held 12 meetings to review 72 proposals, enhancing decision-making capabilities[139]. - The supervisory board, comprising 3 members, held 11 meetings and reviewed 65 proposals, ensuring effective oversight of the company's operations[140]. - The company has established an independent financial department with a complete accounting system and financial management policies[147]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting to investors[142]. Employee and Community Engagement - The total number of employees at the end of the reporting period is 698, with 24 from the parent company and 674 from major subsidiaries[173]. - The company has a training plan that includes onboarding for new employees and various training sessions for middle management and technical staff throughout the year[175]. - The company actively engages in community promotion activities to enhance consumer experience and brand loyalty[58]. - The company has established a high-end talent recruitment mechanism to attract essential management, R&D, and sales personnel[121]. - The company is committed to improving customer relationships by providing technical support and after-sales services in the feed segment[52].

新疆西部牧业股份有限公司 2021 年第三季度报告 证券代码：300106 证券简称：西部牧业 公告编号：临 2021-81 新疆西部牧业股份有限公司 2021 年第三季度报告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记载、误导 性陈述或重大遗漏。 重要内容提示: 1.董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报 告中财务信息的真实、准确、完整。 3.第三季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 本报告期比上年同期 | 年初至报告期末 | 年初至报告期末比上 | | --- | --- | --- | --- | --- | | | | 增减 | | 年同期增减 | | 营业收入（元） | 299,225,970.04 | 28.93% | 822,356,786.29 | 40.79 ...

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 523,130,816.25, representing a 48.60% increase compared to CNY 352,033,181.99 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2021 was CNY 12,805,888.51, a significant increase of 521.37% from CNY 2,060,916.36 in the previous year[20]. - The net cash flow from operating activities reached CNY 13,698,045.60, improving by 158.99% compared to a negative cash flow of CNY 23,219,459.40 in the same period last year[20]. - Basic earnings per share for the first half of 2021 were CNY 0.0606, up 518.37% from CNY 0.0098 in the previous year[20]. - The total revenue for the reporting period was ¥39,318.38 million, with a gross margin of 17.99%, down 4.96% year-on-year[57]. - The company reported a net loss of CNY 262,905,103.27 for the period, an improvement from a loss of CNY 275,710,991.78 at the end of 2020[183]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion CNY for the first half of 2021, representing a year-over-year growth of 20%[73]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,156,034,221.77, an increase of 7.89% from CNY 1,071,526,903.21 at the end of the previous year[20]. - The total liabilities as of June 30, 2021, were CNY 238,777,784.99, compared to CNY 223,636,205.93 at the end of 2020, representing a rise of approximately 6.5%[186]. - The company's total equity rose to CNY 681,647,912.75 from CNY 654,168,004.95, indicating an increase of approximately 4.2%[183]. Market and Industry Insights - The dairy industry in China has significant growth potential, with per capita dairy consumption at only 1/3 of the world average, indicating room for market expansion[30]. - The dairy industry in China is currently in an upward cycle, driven by increasing consumer demand and improving living standards[50]. - The company plays a crucial role in stabilizing the supply of basic dairy products in Xinjiang and promoting social employment[31]. - The company is subject to strict regulatory requirements for new dairy processing projects, which raises the entry barriers in the industry[36]. Product Development and Diversification - The company focuses on dairy product processing and sales, feed production, and livestock breeding, aiming to become a leading enterprise in modern animal husbandry in Xinjiang[28]. - The company has launched a variety of dairy products, including infant formula and specialized products for different age groups, enhancing product diversification[29]. - The product categories include infant formula, protein dietary supplements, and various dairy products such as cheese and yogurt[72]. - The company is involved in the processing and transportation of food and beverages, indicating a focus on supply chain management[72]. Research and Development - The company has implemented 135 R&D projects in recent years, with 63 projects at various governmental levels and 73 internal key projects, completing 78 projects and receiving over 10 awards[82]. - The company has developed key technologies in areas such as "beef nutrition regulation technology" and "infant formula milk powder wet process industrialization," achieving domestic advanced levels[85]. - The company is committed to research and development, with ongoing projects aimed at improving the nutritional value of its dairy products[77]. Risk Management - The company faces various risks including product quality, market competition, and environmental protection, which are detailed in the report[5]. - The company faces risks related to a high number of individual customers, which can lead to variability in supply and demand; it aims to diversify its customer base to mitigate this risk[120]. - The company has implemented strict disease prevention measures in its livestock operations to mitigate risks associated with animal diseases that could impact milk supply[122]. Environmental and Social Responsibility - The company has established an environmental management system aimed at reducing pollution and ensuring compliance with environmental regulations, which is crucial given the increasing regulatory scrutiny[119]. - The company has actively engaged in social responsibility initiatives, distributing 2,400 cans of infant formula to over 200 expectant mothers across various regions[139]. - Tianshan Yunmu Dairy and Huayuan Dairy have obtained ISO14000 environmental management system certification, ensuring effective environmental management practices are in place[137]. Strategic Initiatives - The company is expanding its market presence, targeting a 30% increase in distribution channels across key regions in China[73]. - A strategic acquisition of a local dairy producer is anticipated to enhance production capacity by 40% and diversify product offerings[74]. - The company is investing in new technology for production efficiency, aiming to reduce operational costs by 10% over the next year[73]. Financial Management - The company has not reported any significant changes in its profit structure during the reporting period[91]. - The company has established partnerships with multiple universities and research institutions to enhance its technological capabilities and innovation efficiency[87]. - The company has authorized a total of 20 patents, including 8 invention patents and 12 copyrights, focusing on dairy product innovations and management systems[76].

Financial Performance - The company's operating revenue for 2020 was CNY 820,327,472.41, representing a 26.40% increase compared to CNY 649,011,242.00 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 11,945,396.84, a significant turnaround from a loss of CNY 57,168,011.36 in 2019, marking a 120.90% improvement[16]. - The net cash flow from operating activities reached CNY 155,385,601.50, a remarkable increase of 615.56% from CNY 21,715,132.16 in the previous year[16]. - The basic earnings per share for 2020 was CNY 0.06, compared to a loss of CNY 0.27 per share in 2019, reflecting a 122.22% increase[16]. - Total assets at the end of 2020 amounted to CNY 1,071,526,903.21, a 2.11% increase from CNY 1,049,370,989.69 at the end of 2019[16]. - The net assets attributable to shareholders increased to CNY 578,135,097.21, up 2.11% from CNY 566,189,700.37 in 2019[16]. - The operating profit for 2020 was CNY 32.30 million, up 171.83% compared to the previous year[71]. - The company sold dairy products generating revenue of CNY 600.24 million, a 29.86% increase from the previous year[71]. - The revenue of large-scale dairy processing enterprises in China reached 394.7 billion RMB in 2019, representing a year-on-year growth of 10.17%[38]. - The profit margin of the dairy industry was 9.61% in 2019, an increase of 41.74 percentage points year-on-year, reflecting significant improvement in profitability[38]. Cash Dividends and Profit Distribution - The company plans not to distribute cash dividends or issue bonus shares for the year[5]. - The company reported a net profit of 11,945,396.84 yuan for the year 2020, but the total distributable profit at the end of the year was -275,710,991.78 yuan[151]. - The company plans not to distribute any cash dividends, stock dividends, or capital reserve transfers for the year 2020 due to negative distributable profits[151]. - The company has not issued any cash dividends in the past three years, with the last reported cash dividend being 0 yuan[149]. - The company’s cash dividend policy requires that at least 10% of the distributable profit be distributed in cash if there are no major investment plans or cash expenditures[146]. - The company’s profit distribution policy can be adjusted only under significant adverse conditions, such as a 50% decline in total revenue, net profit, or earnings per share[146]. - The company’s board of directors must seek approval from more than half of the independent directors and supervisors before submitting any profit distribution proposals to the shareholders' meeting[146]. Market and Industry Trends - The dairy industry in China is expected to grow significantly due to increasing consumer demand and supportive government policies aimed at revitalizing the dairy sector[28]. - The competitive landscape of the dairy industry in China has stabilized, with increasing brand awareness among consumers and a rising market concentration[29]. - The average annual growth rate of the dairy industry has been robust, reflecting a growing consumer demand for dairy products[36]. - The barriers to entry in the dairy industry include policy approval, milk source construction, marketing networks, and brand recognition[32]. - The company is focused on dairy product processing and sales, feed production, and livestock breeding, aiming to become a leading enterprise in modern animal husbandry in Xinjiang[26]. Product Development and Diversification - The company has launched a variety of dairy products, including infant formula and specialized milk powder for different age groups, enhancing product diversification[27]. - The company is expanding its product line to include various dairy products, beverages, and infant formula, targeting different age groups[58]. - The company aims to strengthen its control over high-quality milk sources to produce premium dairy products[73]. - The company has developed a standardized feeding technique to ensure balanced nutrition and maximize the genetic potential of dairy cows[51]. Research and Development - The company has implemented 135 R&D projects in recent years, with 63 projects funded by various levels of government[63]. - The company holds 20 patents, including 10 copyrights, and has completed 78 various technology projects[63]. - The company has established partnerships with multiple universities and research institutions to enhance its R&D capabilities[68]. - The company has established research and development partnerships with several universities and institutions, enhancing its technological capabilities in dairy production[49]. Risk Management and Compliance - The company has identified several risks, including product quality, market competition, and environmental protection risks, which may impact future operations[4]. - The company has implemented an environmental management system aimed at reducing pollution and ensuring compliance with emission standards, in response to heightened regulatory scrutiny[134]. - The company has established preventive measures against animal diseases to safeguard its fresh milk supply and maintain consumer confidence in product safety[137]. - The company has committed to transparency in its financial reporting and adheres to the disclosure requirements set by the Shenzhen Stock Exchange[4]. Supply Chain and Operations - The company has established a strong supply chain with dairy farmers, ensuring high-quality fresh milk without contamination issues[50]. - The procurement model focuses on centralized management and unified purchasing to improve raw material quality and reduce costs, with over 90% of inventory being stored forage[77]. - The production model integrates breeding, large-scale farming, and mechanized milking, ensuring high-quality fresh milk through advanced technology and standardized management[78]. - The company has established a complete industrial chain from forage resource development to dairy and meat product processing[52]. Environmental and Social Responsibility - The company has established an environmental management system and obtained ISO 14000 certification[189]. - The company donated over 800,000 CNY to support frontline epidemic prevention efforts in various communities and hospitals[184]. - The company plans to launch a "Guardian Plan" public welfare activity in 2021 to assist special groups such as cancer-stricken mothers and abandoned infants[185]. Strategic Initiatives - The company is pursuing mergers and acquisitions, specifically targeting Tianshan Guanghe Company to integrate its supply chain[126]. - The company intends to raise up to 50 million CNY through a private placement to no more than 35 specific investors[190]. - The company aims to enhance product brand promotion and accelerate market layout in 2021, indicating a focus on market expansion and new product development[151].

Financial Performance - The company's operating revenue for 2020 was CNY 820,327,472.41, representing a 26.40% increase compared to CNY 649,011,242.00 in 2019[16]. - The net profit attributable to shareholders for 2020 was CNY 11,945,396.84, a significant turnaround from a loss of CNY 57,168,011.36 in 2019, marking a 120.90% improvement[16]. - The net profit after deducting non-recurring gains and losses was CNY 5,099,505.44, compared to a loss of CNY 56,006,772.06 in the previous year, reflecting a 109.11% increase[16]. - The net cash flow from operating activities reached CNY 155,385,601.50, a remarkable increase of 615.56% from CNY 21,715,132.16 in 2019[16]. - Basic earnings per share improved to CNY 0.06 from a loss of CNY 0.27 in 2019, representing a 122.22% increase[16]. - Total assets at the end of 2020 were CNY 1,071,526,903.21, a 2.11% increase from CNY 1,049,370,989.69 at the end of 2019[16]. - The net assets attributable to shareholders increased to CNY 578,135,097.21, up 2.11% from CNY 566,189,700.37 in 2019[16]. - The weighted average return on net assets was 1.81%, a significant recovery from -9.61% in 2019[16]. - The operating profit for 2020 was CNY 32.30 million, up 171.83% compared to the previous year[71]. - The sales revenue from dairy products was CNY 600.24 million, representing a year-on-year growth of 29.86%[71]. - The company's revenue from feed reached 190,054,283.80 CNY, which is 23.17% of total revenue, reflecting a year-on-year increase of 21.61%[87]. Market and Industry Insights - The dairy industry in China is expected to grow due to increasing per capita income and changing dietary structures, with significant market demand for dairy products[28]. - The competitive landscape of the dairy industry in China has stabilized, with increasing market concentration and brand awareness among consumers[29]. - The total sales revenue of China's dairy industry reached CNY 357.7 billion in 2019, with a compound annual growth rate of 54.51% from 2011 to 2019[31]. - The dairy industry in China has seen a concentration of market share towards larger, well-known brands due to recent policy support aimed at optimizing the industry structure[31]. - The average annual per capita consumption of dairy products is a key indicator of living standards, reflecting the growing importance of dairy in the Chinese diet[35]. - The dairy industry is increasingly focusing on quality control and the establishment of stable milk sources to ensure product reliability and safety[33]. - The company plays a crucial role in stabilizing the supply of basic dairy products in Xinjiang and promoting social employment[28]. Product Development and R&D - The company has established a strong research and development capability through partnerships with universities and research institutions, enhancing its technological strength in the dairy sector[49]. - The company holds 15 infant formula product registration certificates, making it the only dairy processing enterprise in Xinjiang with two infant formula production facilities[49]. - The company has implemented 135 R&D projects in recent years, with 63 projects at various governmental levels and 73 internal key projects[63]. - The company reported a significant focus on R&D, with several patents related to IoT-based feeding machines and yogurt mixing devices[57]. - The company is expanding its product line to include a variety of dairy and non-dairy beverages, such as almond milk and fruit juices[58]. Risk Management - The company faces various risks including product quality, market competition, and environmental protection, which are detailed in the report[4]. - The company is addressing the risk of animal diseases that could impact fresh milk supply and consumer confidence in dairy products[129]. - The company has established an environmental management system to reduce pollution and ensure compliance with environmental regulations[126]. Corporate Governance and Shareholder Relations - The company has established a clear cash dividend policy that prioritizes investor returns and requires a minimum of 10% of distributable profits to be distributed in cash when conditions are met[135][136]. - The company’s profit distribution policy emphasizes the need for continuous and stable returns to shareholders while considering long-term sustainability[135]. - The company has not engaged in any investor communication activities during the reporting period[131]. - The company’s board of directors has decided against any capital reserve conversion to increase share capital for the year 2020[144]. - The company’s financial performance has shown a trend of negative retained earnings over the past three years, impacting its ability to distribute profits[145]. Environmental and Social Responsibility - The company donated over 800,000 CNY to support frontline epidemic prevention efforts in various cities and communities[177]. - The wastewater from the company's processing plants meets the secondary discharge standards and does not exceed the approved discharge limits[179]. - The company has implemented a comprehensive emergency management system for environmental incidents, including various emergency response plans[181]. Strategic Initiatives - The company plans to acquire 100% equity of Tianshan Guanghe Animal Husbandry Co., Ltd. for a transaction price of 870 million CNY[183]. - The company intends to raise up to 500 million CNY through a share issuance to no more than 35 specific investors[183]. - The company is accelerating the merger and restructuring of Tian Shan Guang He Company to integrate the entire industry chain from feed production to dairy processing[119]. - The company aims to strengthen its market position in the western region through the acquisition, leveraging synergies across its operations[72].