Financial Performance - Operating revenue for the reporting period was CNY 181,825,582.15, down 10.20% year-on-year, while year-to-date revenue was CNY 524,906,591.50, a decrease of 1.59%[8] - Net profit attributable to shareholders was a loss of CNY 632,735.40, a decline of 100.98% compared to the same period last year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 2,630,203.79, an increase of 96.05% year-on-year[8] - Operating profit decreased by 94.99% compared to the same period last year, and net profit decreased by 82.03% due to the absence of asset sales that positively impacted previous year's performance[18] - The company reported a net profit of CNY 4,417,292.03 for the year-to-date period, down from CNY 24,577,687.05 in the previous year, showing a decline of about 82.0%[48] - The company reported a loss attributable to shareholders of ¥632,735.40 in Q3 2019, contrasting with a profit of ¥64,598,266.61 in the previous year[39] - Basic and diluted earnings per share for Q3 2019 were both -¥0.0030, compared to ¥0.3057 in Q3 2018[39] - The net profit for the third quarter was -74,392.95, a significant decrease compared to -26,482,405.32 in the same period last year, indicating ongoing financial challenges[51] Cash Flow - Cash flow from operating activities for the year-to-date was CNY 105,909,364.93, down 49.83% compared to the same period last year[8] - Net cash flow from operating activities decreased by 49.83%, primarily due to a significant reduction in cash inflows from sales of goods and services[18] - Operating cash flow for the third quarter was 105,909,364.93, down from 211,097,031.75 year-over-year, reflecting reduced cash generation from operations[55] - The company’s cash and cash equivalents at the end of the period were 65,743,973.79, down from 57,828,834.78 at the end of the previous year[56] - The net cash flow from financing activities was -¥18,180,309.94, indicating a decrease compared to the previous period's net cash flow of -¥372,132,331.54[59] - Total cash inflow from financing activities amounted to ¥125,042,600.00, while total cash outflow was ¥143,222,909.94, resulting in a net outflow[59] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,122,821,206.63, a decrease of 1.29% compared to the end of the previous year[8] - Total assets as of September 30, 2019, amounted to CNY 1,122,821,206.63, a decrease from CNY 1,137,464,935.58 at the end of 2018[28] - Current assets totaled CNY 503,413,208.50 as of September 30, 2019, slightly up from CNY 498,184,280.46 at the end of 2018[27] - Total liabilities decreased from CNY 437,884,294.67 at the end of 2018 to CNY 418,823,273.69 as of September 30, 2019[29] - The company's cash and cash equivalents decreased from CNY 80,049,498.42 at the end of 2018 to CNY 65,743,973.79 as of September 30, 2019[27] - The company reported a decrease in inventory from CNY 159,663,244.08 at the end of 2018 to CNY 134,997,330.55 as of September 30, 2019[27] Expenses - Management expenses decreased by 36.26% year-on-year, primarily due to changes in the scope of consolidation after the disposal of subsidiaries[17] - Financial expenses decreased by 87.78% year-on-year, attributed to the disposal of subsidiaries and active repayment of bank loans[17] - The company experienced an increase in sales expenses, which rose to ¥17,851,669.30 from ¥14,392,385.68 year-on-year[37] - The company incurred asset impairment losses of CNY 2,284,712.77, compared to losses of CNY 6,767,592.33 in the previous year, indicating an improvement[47] - The company’s financial expenses decreased to CNY 379,501.04 from CNY 4,268,904.73 year-over-year, reflecting a reduction of approximately 91.1%[41] Government Support - The company received government subsidies amounting to CNY 3,780,000.00, including CNY 1,780,000.00 for research funding[9] Comprehensive Income - The total comprehensive income for the third quarter was CNY 2,687,164.78, compared to a total comprehensive loss of CNY 7,100,198.74 in the same quarter last year[43] - The total comprehensive income for the quarter was -74,392.95, which mirrors the net profit loss, indicating no other comprehensive income contributions[52] Investment Activities - Investment activities resulted in a net cash outflow of -27,816,994.37, contrasting with a net inflow of 335,507,363.91 in the previous year, indicating a shift in investment strategy[56] - The company’s investment loss was reported at -2,990,379.87, highlighting challenges in its investment portfolio[51] Audit and Standards - The company did not undergo an audit for the third quarter report, which may affect the reliability of the financial data presented[60] - The company has not applied new financial instrument standards or new leasing standards for the current reporting period[60]

Financial Performance - Total revenue for the first half of 2019 was CNY 343,081,009.35, an increase of 3.67% compared to CNY 330,920,291.04 in the same period last year[18]. - Net profit attributable to shareholders was CNY 1,874,035.76, a significant turnaround from a loss of CNY 41,616,640.65 in the previous year, representing a 104.50% increase[18]. - The net profit after deducting non-recurring gains and losses was CNY 991,189.93, compared to a loss of CNY 42,602,215.61 in the same period last year, marking a 102.33% improvement[18]. - Basic earnings per share increased to CNY 0.0089 from a loss of CNY 0.1969, reflecting a 104.52% increase[18]. - The weighted average return on net assets improved to 0.29% from -6.99%, an increase of 7.28 percentage points[18]. - The company reported a net profit for the first half of 2019 of CNY 3,734,914.73, a turnaround from a net loss of CNY 40,294,150.88 in the first half of 2018[180]. - The company reported a profit margin of approximately 1.09% in the first half of 2019, compared to a negative margin in the previous year[180]. - Total operating revenue for the first half of 2019 was CNY 343,081,009.35, an increase of 3.5% compared to CNY 330,920,291.04 in the same period of 2018[179]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,113,297,837.68, a decrease of 2.12% from CNY 1,137,464,935.58 at the end of the previous year[18]. - The company's total liabilities decreased to CNY 209,903,041.56 from CNY 229,839,116.46, reflecting a reduction of approximately 8.7%[178]. - The company's equity attributable to shareholders increased slightly from CNY 636,278,735.28 to CNY 638,152,771.04, an increase of approximately 0.3%[171]. - The company's current assets totaled CNY 491,902,456.29, slightly down from CNY 498,184,280.46 at the end of 2018, indicating a decrease of about 1.6%[169]. - Total liabilities decreased from CNY 437,884,294.67 to CNY 409,982,282.04, reflecting a decline of about 6.4%[171]. Cash Flow - The net cash flow from operating activities was negative at CNY -20,608,582.48, a decline of 151.35% compared to CNY 40,131,497.86 in the previous year[18]. - Cash inflow from operating activities was 424,595,874.24 CNY, down 34.7% from 650,028,452.55 CNY in the first half of 2018[186]. - The total cash and cash equivalents at the end of the period was 49,823,947.26 CNY, a decrease from 50,622,931.96 CNY at the end of the first half of 2018[189]. - Cash and cash equivalents decreased significantly from CNY 80,049,498.42 at the end of 2018 to CNY 49,823,947.26, a drop of approximately 37.8%[168]. Market Position and Strategy - The company is recognized as a national key leading enterprise in agricultural industrialization, indicating its significant role in the industry[26]. - The company is positioned as a regional leader in the dairy industry, contributing to local employment and social stability in Xinjiang[28]. - The competitive landscape includes three tiers of dairy companies, with the company classified as a second-tier regional leader, indicating strong local market presence[29]. - The company plans to enhance its brand, market, and product focus to drive the growth of the dairy industry[78]. - The company aims to leverage its unique position as the only two dairy processing enterprises in Xinjiang with infant formula production licenses to boost market presence[78]. Research and Development - The company has implemented 135 R&D projects in recent years, with 63 projects funded by various government levels and 73 internal key projects[67]. - The company has a strong technological advantage, collaborating with institutions like China Agricultural University and establishing research centers to enhance its R&D capabilities[50]. - R&D investment rose by 20.33% to CNY 1,345,651.60, reflecting the company's commitment to innovation[84]. - The company has developed key technologies for the industrialization of infant formula and functional fermented dairy products[69]. Product and Service Offerings - The company has a diverse product range including infant formula, milk powder for different age groups, and various meat products, enhancing market competitiveness[27]. - The company has established a complete industrial chain from forage resource development and utilization to livestock breeding and dairy product processing[53]. - The company is actively expanding its product offerings in the dairy sector, including infant formula and nutritional products, to capture a larger market share[58]. Risk Management - The company faces various risks including product quality, market competition, and environmental protection, which are detailed in the report[5]. - The company plans to enhance cost management and product quality to address increasing market competition risks[110]. - The company is committed to ensuring the quality and safety of its products through rigorous production standards and quality control measures[58]. Environmental and Social Responsibility - The company established an environmental management system and obtained ISO 14000 certification, ensuring compliance with environmental regulations[141]. - The company donated 5,035 boxes of nutritional milk powder, totaling 2.014 tons, to support poverty alleviation efforts by May 2019[143]. - The company conducted two training sessions for local farmers, training 60 individuals in sheep breeding management and disease prevention techniques[144]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 18,492[153]. - The largest shareholder, Shihezi State-owned Assets Management Group Co., Ltd., holds 88,378,171 shares, accounting for 41.82% of the total shares[153]. - There were no changes in the controlling shareholder or actual controller during the reporting period[155].

Financial Performance - Total operating revenue for Q1 2019 was CNY 170,780,840.46, an increase of 16.13% compared to CNY 147,065,259.06 in the same period last year[7] - Net profit attributable to shareholders was CNY 1,205,346.76, a significant turnaround from a loss of CNY 35,750,876.22, representing a growth of 103.37%[7] - The net profit after deducting non-recurring gains and losses was CNY 166,857.17, compared to a loss of CNY 31,148,750.94, marking a 100.54% increase[7] - Basic and diluted earnings per share were both CNY 0.0057, a recovery from a loss of CNY 0.1692 per share in the same period last year, reflecting a growth of 103.37%[7] - Operating profit grew by 99.89% and total profit increased by 104.71% compared to the previous year, attributed to optimized asset structure and improved management efficiency[16] - The company's total revenue for Q1 2019 reached 170.78 million yuan, an increase of 16.13% compared to the same period last year[18] - The net profit attributable to shareholders was 1.21 million yuan, reflecting a growth of 103.37% year-on-year[18] - Operating profit improved significantly to ¥724,878.73 compared to a loss of ¥32,827,440.62 in the previous period[42] - Net profit for the current period was ¥1,608,871.92, recovering from a net loss of ¥37,429,565.90 in the previous period[42] Cash Flow - The net cash flow from operating activities was negative CNY 48,619,178.35, worsening from negative CNY 24,362,709.55 in the previous year[7] - The company's cash flow from operating activities decreased by 99.56% compared to the same period last year[17] - The net cash flow from operating activities was -48,619,178.35 CNY, compared to -24,362,709.55 CNY in the previous period, indicating a decline in operational cash flow[49] - The total cash outflow for employee payments was 14,443,538.94 CNY, down from 23,772,514.67 CNY in the previous period[49] - The cash flow from operating activities showed a net inflow of 1,360,183.13 CNY, a significant recovery from -69,192,853.07 CNY in the previous period[53] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,131,892,719.49, a decrease of 0.49% from CNY 1,137,464,935.58 at the end of the previous year[7] - Total assets decreased from CNY 1,137,464,935.58 to CNY 1,131,892,719.49, a decline of approximately 0.32%[32] - Current liabilities decreased from CNY 389,368,105.59 to CNY 382,894,605.62, a reduction of about 1.22%[33] - Non-current liabilities decreased from CNY 48,516,189.08 to CNY 47,808,601.04, a decrease of approximately 1.46%[33] - Total liabilities decreased from CNY 437,884,294.67 to CNY 430,703,206.66, a decline of about 1.27%[33] - Owner's equity increased from CNY 699,580,640.91 to CNY 701,189,512.83, an increase of approximately 0.23%[34] - Total liabilities amounted to CNY 437,884,294.67, with current liabilities at CNY 389,368,105.59[57] - Total assets reached CNY 1,179,065,230.66, with current assets totaling CNY 678,537,444.36[59] Operational Strategy - The company aims to enhance its dairy product segment, focusing on infant formula milk powder as a key product[19] - The feed processing capacity has reached over 200,000 tons annually, with efforts to reduce costs and increase market competitiveness[21] - The company plans to invest in technology development for meat and oil products to improve quality and marketing capabilities[22] - The company is implementing a professional management approach to improve economic efficiency across subsidiaries[25] - The company aims to continue expanding its market presence and enhancing product development strategies moving forward[42] Financial Adjustments - The company has no significant changes in its major suppliers or customers during the reporting period[24] - The company reported a net loss of CNY 1,205,346.76 in retained earnings, compared to a loss of CNY 1,217,353.71 in the previous period, indicating a slight improvement[34] - Cash and cash equivalents decreased by 48.66% due to the purchase of raw materials and repayment of debts by subsidiaries[16] - Accounts receivable increased by 34.65% as subsidiaries actively expanded the market and increased product sales[16] - Cash and cash equivalents decreased from CNY 3,863,920.90 to CNY 3,560,780.84, a decline of about 7.83%[36] - Accounts receivable decreased from CNY 2,148,650.16 to CNY 1,948,822.40, a reduction of approximately 9.29%[36] - Inventory remained stable at CNY 986,668.11, unchanged from the previous period[36] - The company has not undergone an audit for the first quarter report[60] - There were no adjustments made for the new financial instrument and lease standards[60]

Financial Performance - The company's operating revenue for 2018 was CNY 677,811,826.82, a decrease of 2.13% compared to CNY 692,557,176.69 in 2017[18]. - The net profit attributable to shareholders was CNY 19,710,127.53, a significant turnaround from a loss of CNY 367,021,095.61 in the previous year, representing a 105.37% increase[18]. - The net cash flow from operating activities reached CNY 741,993,353.67, marking an impressive increase of 816.64% from CNY 80,946,859.88 in 2017[18]. - Basic earnings per share improved to CNY 0.09 from a loss of CNY 1.74 in 2017, reflecting a 105.17% increase[18]. - The total assets of the company decreased by 53.05% to CNY 1,137,464,935.58 from CNY 2,422,903,459.86 in 2017[18]. - The net assets attributable to shareholders increased by 3.20% to CNY 636,278,735.28 from CNY 616,568,607.75 in the previous year[18]. - The company reported a significant improvement in the fourth quarter with a net profit of CNY 64,598,266.61, compared to losses in the first three quarters[20]. - The company reported a total revenue of 677.81 million yuan in the reporting period, with dairy product revenue accounting for 66.07% at 447.86 million yuan[98]. - The company reported a net profit of CNY 12,354,779.34 for the year 2018, with an initial undistributed profit of CNY 94,037,945.86[176]. Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the year[7]. - The total distributable profit at the end of 2018 was CNY 95,380,025.21, but no cash dividends or stock dividends were distributed[176]. - The company’s cash dividend total for 2018 was CNY 0.00, representing 0.00% of the total distributable profit[174]. - The board of directors decided not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the year 2018 due to the negative retained earnings[180]. - The company’s cash dividend policy requires at least 10% of the distributable profit to be distributed in cash if there are no major investment plans or cash expenditures[171]. Market Position and Strategy - 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[28]. - The company aims to enhance its market presence and product diversity to meet the growing consumer demand for varied and high-quality dairy products[31]. - The company is expanding its market presence, with plans to enter three new provinces in the next quarter, aiming for a 10% market share in these regions[61]. - The company aims to achieve steady profit growth by focusing on infant formula milk powder as the flagship product, with liquid milk and yogurt as supplementary products[158]. - The company plans to enhance technology investment in meat and oil products, leveraging local raw material advantages to improve product quality and marketing capabilities[160]. Research and Development - The company has a strong technical research and development team and collaborates with various universities and institutions to enhance its technological capabilities[51]. - The company has implemented 135 R&D projects in recent years, with 63 projects at various national and local levels[67]. - The company has obtained 24 patents and has been awarded over 10 national and local awards for its technological achievements[67]. - The company aims to leverage its processing capacity of 300 tons of fresh milk daily to enhance brand promotion and market layout, focusing on infant formula as a key product[85]. - The company has established a new R&D center focused on developing plant-based dairy alternatives, targeting a growing segment of health-conscious consumers[61]. Risk Management - The company faced various risks including product quality, market competition, and environmental protection risks, which were discussed in the report[6]. - The company emphasizes the importance of internal control and risk management to ensure operational efficiency and compliance with regulations[88]. - The company is at risk of potential government policy changes affecting tax incentives and subsidies, which could impact financial performance[95]. - The company has established measures to mitigate risks associated with animal diseases that could affect fresh milk supply and product sales[96]. - The company is focused on expanding its market presence and diversifying its customer base to reduce risks from customer concentration[93]. Asset Management - The company's equity assets decreased by 54.29% compared to the beginning of the period, primarily due to the sale of equity in six dairy farming companies[47]. - Fixed assets decreased by 46.22% compared to the beginning of the period, mainly due to the government reclaiming land and buildings[47]. - The company has divested from 16 underperforming dairy and beef cattle breeding companies, with total transaction prices amounting to CNY 263 million[76]. - The company completed the transfer of 30% equity stakes in several subsidiaries, including Shihezi LQ Livestock Co., which is expected to improve financial structure and reduce financial burdens[147]. - The company’s strategic asset sales are part of a broader plan to optimize its financial performance and enhance shareholder value[200]. Industry Overview - The competitive landscape includes a first tier of major brands like Yili and Mengniu, while the company is positioned as a regional leader in the second tier[31]. - The dairy industry in China has experienced a consolidation, with over 1,100 companies reduced to 648 after regulatory scrutiny, leading to a concentration of market share among top brands[32]. - The dairy industry is characterized by high entry barriers related to policy approval, milk source control, marketing networks, and brand recognition[36]. - The dairy industry is increasingly focusing on quality control and supply chain management to ensure product safety and reliability, especially after past food safety incidents[35]. - The dairy industry in China is currently in an upward cycle, with increasing consumer demand expected as living standards rise[44].

Financial Performance - Operating revenue for the period was CNY 202,475,448.15, an increase of 2.68% year-on-year[8] - Net profit attributable to shareholders increased by 290.21% to CNY 64,598,266.61 compared to the same period last year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses rose by 302.89% to CNY 65,321,979.78[8] - Basic earnings per share increased by 290.23% to CNY 0.3057[8] - Operating profit increased by 129.68% compared to the same period last year, and net profit increased by 130.08%[21] - Investment income increased by 45230.16% compared to the same period last year, mainly due to increased investment income from changes in the scope of consolidation[21] - The company reported a net loss of CNY 214,295,855.28, improving from a loss of CNY 237,277,481.24 in the previous period[34] - The company reported an operating profit of ¥65,947,530.50, compared to an operating loss of ¥33,671,338.06 in the prior period, indicating a turnaround in operational performance[41] - Total comprehensive income for the current period was ¥64,871,837.93, compared to a loss of ¥35,436,968.95 in the previous period, indicating a strong recovery[46] Cash Flow and Liquidity - Cash flow from operating activities for the year-to-date reached CNY 211,097,031.75, a significant increase of 1,345.73%[8] - Net cash flow from operating activities increased by 1345.73% compared to the same period last year, driven by increased cash inflows from operating activities[22] - Cash inflow from operating activities totaled CNY 1,337,906,000.03, an increase from CNY 919,041,388.86 in the previous year[56] - The net cash flow from operating activities was 211,097,031.75 CNY, a significant increase from 14,601,419.61 CNY in the previous period, indicating improved operational efficiency[57] - Total cash inflow from investment activities reached 374,422,506.10 CNY, compared to only 9,604.06 CNY in the previous period, reflecting successful asset disposals[57] - The net cash flow from investment activities was 362,571,355.18 CNY, a recovery from -60,378,516.27 CNY in the previous period, due to successful asset sales[61] - The total cash and cash equivalents at the end of the period decreased to 57,828,834.78 CNY from 115,128,383.08 CNY, indicating liquidity challenges[58] Assets and Liabilities - Total assets decreased by 24.07% to CNY 1,839,766,408.64 compared to the end of the previous year[8] - Cash and cash equivalents decreased by 34.10% compared to the beginning of the period, primarily due to repayment of bank loans[19] - Accounts receivable decreased by 88.10% compared to the beginning of the period, mainly due to the redemption of bank acceptance bills[19] - Inventory decreased by 68.57% compared to the beginning of the period, primarily due to the sale of subsidiary assets and equity[19] - Long-term equity investments increased by 46.62% compared to the beginning of the period, mainly due to the sale of subsidiary assets and equity[19] - Total non-current assets decreased to CNY 663,278,702.29 from CNY 1,357,394,711.06, a decline of about 51.1%[33] - Total liabilities decreased to CNY 1,099,334,918.93 from CNY 1,707,049,657.20, representing a reduction of approximately 35.6%[34] - The company's total equity increased to CNY 740,431,489.71 from CNY 715,853,802.66, reflecting a growth of about 3.4%[34] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,465[12] - The largest shareholder, Shihezi State-owned Assets Management Group, held 42.29% of the shares[12] Operational Changes and Future Plans - The company has implemented measures to improve operations, including management optimization and asset sales, positively impacting financial performance[26] - The company plans to focus on market expansion and new product development in the upcoming quarters[36]

Product Quality and Safety - The company reported that it is one of the few dairy enterprises that were not detected with melamine during the melamine incident, ensuring product quality and safety during the reporting period[6]. - The company emphasizes the importance of food safety management, particularly in the production of infant formula, to mitigate risks associated with product quality[5]. - The company has established a stable relationship with dairy farmers, ensuring high-quality raw milk free from melamine contamination[58]. - The company has implemented a comprehensive traceability system across the supply chain, ensuring product quality and food safety from raw materials to sales[60]. - The company has established wastewater treatment facilities with a total processing capacity of 3,000 cubic meters per day, which have been upgraded and are operating normally[167]. - The total wastewater discharge from the company was 13,138 tons, which is within the approved discharge limits[167]. - All 12 issues identified in the food safety production standard inspection were rectified and passed verification, allowing the company to resume production[172]. Financial Performance - Total revenue for the reporting period was ¥330,920,291.04, a decrease of 2.67% compared to ¥340,005,473.19 in the same period last year[27]. - Net profit attributable to shareholders was -¥41,616,640.65, an improvement of 10.29% from -¥46,391,826.03 in the previous year[27]. - Net cash flow from operating activities reached ¥40,131,497.86, a significant increase of 175.84% compared to -¥52,918,514.25 in the same period last year[27]. - Total assets at the end of the reporting period were ¥2,285,868,780.48, down 5.66% from ¥2,422,903,459.86 at the end of the previous year[27]. - Net assets attributable to shareholders decreased by 6.75% to ¥574,951,967.10 from ¥616,568,607.75 at the end of the previous year[27]. - The company reported a basic earnings per share of -¥0.1969, an improvement of 10.30% from -¥0.2195 in the same period last year[27]. - The company reported an operating loss of 42.11 million yuan, an increase of 14.59% year-on-year, and a total profit loss of 41.12 million yuan, which grew by 2.60% year-on-year[83]. - The company’s total assets amounted to 2.29 billion yuan, a decrease of 5.66% from the beginning of the period, while net assets attributable to shareholders were 574.95 million yuan, down 6.75% year-on-year[83]. Market Position and Competition - The company is the only local dairy processing enterprise in Xinjiang to obtain production and sales licenses for infant formula milk powder, highlighting its market position[6]. - The company faces significant market competition, with domestic fresh milk prices experiencing volatility, which could adversely affect sales prices and overall performance[7]. - The first-tier dairy companies include Yili, Mengniu, and Bright Dairy, with Yili and Mengniu being major players with significant market shares of 25.21% and 12.94% respectively in the liquid milk market as of 2013[37][39]. - The second-tier companies, such as Western Pastoral and Tianrun Dairy, dominate regional markets and are well-positioned to capture consumer demand for diverse and high-quality dairy products[37]. - The company aims to expand its market influence and product innovation to strengthen its competitive position in the dairy sector[37]. - The company is focused on expanding its market presence, particularly in the Xinjiang region, where it competes with local dairy companies[61]. Government Support and Subsidies - The company has received multiple government subsidies for its investment projects, which are crucial for the long-term recovery of capital in the dairy and livestock industry[9]. - The company received government subsidies totaling ¥477,200.00, which included various project funds[31]. - The company has received multiple government subsidies and tax incentives, which are crucial for its operations in the agriculture sector, but future changes in these policies could significantly impact performance[135]. Operational Challenges and Risks - The company is exposed to risks from animal diseases that could impact fresh milk supply and consumer confidence in dairy products[12]. - Environmental protection policies may lead to the exit of smaller livestock farms from the market, potentially affecting the company's feed and slaughtering business[11]. - The company acknowledges the potential impact of natural disasters on its operations, which could lead to significant losses in livestock and production capabilities[14]. - The company faces risks from animal diseases that could lead to insufficient supply of fresh milk and potential impairment of biological assets[138]. - Natural disasters such as droughts and floods pose risks to livestock and production facilities, potentially affecting operational performance[139]. Investment and Expansion Plans - The company plans to expand its product offerings and has completed the investment layout for the entire industry chain from feed processing to livestock breeding and dairy processing[8]. - The company is focused on modernizing livestock breeding and processing, aiming to become a leading enterprise in the industry[34]. - The company has diversified its product offerings, including infant formula and various dairy products tailored to different consumer needs[35]. - The company plans to implement a professional management model by hiring professional managers for its subsidiaries to improve economic efficiency and reduce losses[85]. - The company intends to transfer part of its breeding business assets to reduce financial burdens and improve operational results[89]. - The company is focusing on enhancing its production capabilities and market expansion strategies in the livestock sector[121]. Research and Development - The company has established research and development partnerships with institutions like China Agricultural University, enhancing its technological capabilities in livestock breeding and management[57]. - The company has implemented 133 R&D projects in recent years, with 60 projects at various national and local levels and 73 internal key projects[75]. - The company has completed 77 various technology projects and has received over 10 national and local awards[75]. - The company holds 33 patents and has participated in the formulation of 36 different standards[75]. - The company has achieved significant advancements in technology, including a vaccine for bovine mycoplasma pneumonia that meets domestic advanced standards[77]. - The company has developed key technologies for the industrialization of soybean protein separation[77]. Environmental Compliance - The company is implementing effective waste management and environmental protection measures to comply with stringent regulations in the livestock industry[136]. - The company has completed the environmental impact assessment and implemented corresponding environmental protection measures, ensuring compliance with regulatory requirements[169]. - The company has established an online monitoring system for wastewater treatment, including equipment for COD, ammonia nitrogen, pH, total nitrogen, and flow measurement[170]. - The company has engaged a third-party monitoring agency to conduct quarterly water quality comparisons for its wastewater treatment facilities, which has already commenced[170]. - The company has no significant environmental protection issues reported during the period[167]. Shareholder and Governance Matters - The company held five temporary shareholder meetings and one annual shareholder meeting during the reporting period, with investor participation rates ranging from 42.78% to 43.05%[141]. - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from capital reserves for the half-year period[142]. - The actual controller and shareholders have fulfilled their commitments during the reporting period, with no violations reported as of June 30, 2018[143]. - The company’s major shareholder, Shihezi State-owned Assets Management Group, committed not to transfer or entrust the management of its shares for 36 months from the date of the company's stock listing[144]. - The company has made commitments to avoid competition with its subsidiaries and ensure no direct or indirect business competition occurs[144]. - The company’s governance structure includes commitments to prevent any related party transactions that could harm its operational integrity[144]. Financial Structure and Liabilities - The company's total equity decreased from CNY 715,853,802.66 to CNY 675,559,651.78, reflecting a decline of about 5.61%[199]. - Total liabilities decreased from CNY 1,707,049,657.20 to CNY 1,610,309,128.70, a reduction of approximately 5.68%[198]. - The company's retained earnings showed a negative balance, increasing from CNY -237,277,481.24 to CNY -278,894,121.89[199]. - The capital reserve remained stable at CNY 620,714,153.04, unchanged from the previous period[199]. Miscellaneous - The company has not engaged in any major litigation or arbitration matters during the reporting period[150]. - There were no significant penalties or rectifications during the reporting period[151]. - The company did not implement any stock incentive plans or employee shareholding plans during the reporting period[152]. - No related party transactions occurred in daily operations during the reporting period[153]. - The company did not engage in any joint external investments during the reporting period[155].

Financial Performance - Total revenue for Q1 2018 was ¥147,065,259.06, a decrease of 4.66% compared to ¥154,246,276.71 in the same period last year[7] - Net profit attributable to shareholders was -¥35,750,876.22, representing a decline of 103.18% from -¥17,596,031.99 year-on-year[7] - Basic and diluted earnings per share were both -¥0.1692, a decrease of 111.46% from -¥0.0800 in the same period last year[7] - The company's net profit attributable to shareholders decreased by 103.18% year-on-year, amounting to a loss of 35.75 million yuan in Q1 2018[28] - Total operating revenue for Q1 2018 was CNY 147,065,259.06, a decrease of 4.8% compared to CNY 154,246,276.71 in the same period last year[50] - The company's net profit for Q1 2018 was a loss of CNY 37,429,565.90, compared to a loss of CNY 17,100,129.57 in Q1 2017, reflecting an increase in losses of approximately 118.5%[52] - The total profit for Q1 2018 was a loss of CNY 11,599,087.49, compared to a loss of CNY 16,294,314.31 in Q1 2017, showing a reduction in losses by about 28.9%[54] Cash Flow and Liquidity - Net cash flow from operating activities improved by 84.48%, reaching -¥24,362,709.55 compared to -¥156,978,081.88 in the previous year[7] - The company reported a net cash increase of -11,555,104.49 CNY, compared to -82,527,210.18 CNY in the same period last year[59] - Cash and cash equivalents at the end of the period totaled 76,195,071.82 CNY, down from 210,355,589.44 CNY year-over-year[59] - The total cash outflow from operating activities was 336,052,302.31 CNY, a decrease from 461,318,368.56 CNY in the previous period[58] - The company incurred 23,772,514.67 CNY in employee payments, up from 19,973,634.60 CNY in the prior year[58] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,389,932,524.93, down 1.36% from ¥2,422,903,459.86 at the end of the previous year[7] - Current liabilities totaled CNY 1,600,785,493.49, showing a marginal increase from CNY 1,595,694,848.27 in the previous period[44] - The company's total liabilities reached CNY 1,711,508,288.17, compared to CNY 1,707,049,657.20 at the start of the year[44] - The equity attributable to shareholders of the parent company decreased to CNY 580,817,731.53 from CNY 616,568,607.75[45] Operational Efficiency - The company is focusing on optimizing its breeding structure and improving operational efficiency to address losses in the breeding segment[28] - The company has implemented strict quality control measures to mitigate risks related to product safety and quality[12] - The company aims to implement refined management and quality control to achieve profitability[30] Market Strategy and Risks - The company plans to leverage regional advantages and improve product quality to enhance market competitiveness[11] - The company plans to actively expand its market and user base to mitigate risks associated with changes in demand[14] - The company faces significant risks from animal diseases, which could impact fresh milk supply and sales[9] - The company is subject to stringent environmental protection policies that may impact its livestock operations and feed business growth[15] Shareholder Information - The top shareholder, Shihezi State-owned Assets Management (Group) Co., holds 42.29% of the shares, with 89,378,171 shares pledged[19] - The company has a total of 1,033,514 restricted shares held by executives, which cannot be transferred for a specified period[22] - The company has not engaged in any repurchase transactions among its top shareholders during the reporting period[20] Government Support and Subsidies - The company has received multiple government subsidies for its agricultural projects, which are crucial for its financial stability[14] - The company benefits from favorable tax policies and government support for the agricultural sector, which may change in the future[14] Investment and Development - The construction of the cattle breeding base and the 150,000-ton feed processing production line is progressing steadily, contributing to the overall development of the company[27] - The balance of construction in progress increased by 7.70 million yuan, a growth of 2007.56% due to increased investment in cattle farm infrastructure[25] - The company achieved a funding utilization rate of 97.30% for the project of producing 150,000 tons of feed annually, with an investment of 10,021.52 million yuan[34]

Financial Performance - The company's operating revenue for 2017 was CNY 692,557,176.69, an increase of 4.21% compared to CNY 664,584,792.47 in 2016[19]. - The net profit attributable to shareholders was a loss of CNY 367,021,095.61, representing a decrease of 602.91% from a loss of CNY 52,214,745.06 in the previous year[19]. - The net cash flow from operating activities improved to CNY 80,946,859.88, a significant increase of 130.03% compared to a negative cash flow of CNY 269,566,013.01 in 2016[19]. - The total assets at the end of 2017 were CNY 2,422,903,459.86, a decrease of 12.62% from CNY 2,772,892,881.81 at the end of 2016[19]. - The net assets attributable to shareholders decreased by 37.45% to CNY 616,568,607.75 from CNY 985,702,909.14 in 2016[19]. - The basic earnings per share for 2017 was -CNY 1.74, a decline of 570.35% from -CNY 0.26 in the previous year[19]. - The weighted average return on equity was -45.80%, down from -5.50% in 2016, indicating a significant deterioration in profitability[19]. - The company reported a total profit of CNY -369.55 million, a reduction of 626.98% compared to the previous year[81]. - The company's total assets reached CNY 2.42 billion, a decrease of 12.62% from the previous year[81]. - The net profit attributable to shareholders was CNY -367.02 million, down 602.91% year-over-year[81]. Revenue Sources - The revenue from dairy products was ¥495,627,635.22, accounting for 71.56% of total operating revenue, with a year-on-year growth of 27.89%[99]. - The sales revenue from breeding livestock reached ¥62,358,750.58, showing a significant increase of 2,074.35% compared to ¥2,867,929.83 in 2016[99]. - The company reported a decrease in the livestock sector's revenue to ¥160,130,425.97, down 37.35% from ¥255,584,800.83 in the previous year[99]. - The company's revenue from external markets for dairy products and fresh milk was ¥193,017,277.11, reflecting a year-on-year increase of 31.09%[99]. Government Support and Subsidies - The company reported a total of government subsidies amounting to ¥17,039,823.28 in 2017, a decrease from ¥49,145,169.11 in 2016[25]. - The company achieved a total of ¥762,500.00 in government funding for various agricultural projects in 2017[26]. - The company received a substantial reduction in government subsidies compared to previous years, impacting overall financial performance[82]. Market Position and Strategy - The company aims to establish itself as a leading enterprise in livestock breeding and modern intensive farming, focusing on biotechnology and quality breeding[30]. - The company is positioned as a regional leader in the dairy industry, contributing to local employment and social stability in Xinjiang[32]. - The company is actively involved in the entire dairy supply chain, from cow breeding to product processing and sales, ensuring high-quality raw milk supply[34]. - The company plans to enhance market operations and brand promotion in 2018, focusing on increasing market share and customer loyalty[86]. - The company aims to strengthen brand strategy and increase advertising efforts to enhance brand recognition and influence, particularly for the "Huayuan" and "Xiyue" brands[149]. Product Development and Diversification - The company has launched a variety of dairy products, including infant formula, calorie milk, and specialized products for different age groups, enhancing product diversification to meet market demand[31]. - The company developed over 80 varieties of dairy products and over 60 varieties of meat products, enhancing its product portfolio significantly[84]. - The company is actively involved in the research and development of new products, including a method for producing DHA and ARA microcapsules[65]. Operational Challenges - The company reported an operating loss of CNY 349.02 million, a decrease of 115.45% year-over-year[81]. - The breeding sector faced substantial losses due to low domestic fresh milk prices and high feeding costs, exacerbated by the impact of imported milk powder and long-life milk[82]. - The company has not experienced any major food safety or quality issues during the reporting period, maintaining a strong reputation in the market[91]. - The company faces risks from natural disasters that could impact livestock and production facilities, but has designed its farms to withstand extreme weather conditions[93]. Research and Development - The company has implemented 133 R&D projects in recent years, with 60 projects at various research levels and 73 internal key projects[73]. - The company holds 33 patents and has participated in the formulation of 36 standards[74]. - The company has established a large-scale dairy farm big data cloud platform for intelligent management[76]. - Research and development investment amounted to ¥22,018,550.00, representing 3.18% of operating revenue[113]. Financial Management and Governance - The company has committed to using retained earnings primarily for significant investments and operational needs to enhance sustainable development[162]. - The company has established a mechanism for cash dividend decision-making and supervision to protect the rights of minority shareholders[156]. - The company is focusing on improving breeding efficiency by adjusting herd structure, accelerating breed replacement, and enhancing feed composition[150]. - The company is committed to complying with environmental protection regulations, which may impact the operations of smaller competitors in the market[94]. Compliance and Regulatory Issues - The company faced penalties for failing to adhere to the information disclosure management regulations, resulting in public reprimands for key executives[180]. - The discrepancies in earnings reports were attributed to inadequate accounting practices and late confirmations of performance estimates[180]. - The company’s financial reporting practices were found to violate multiple provisions of the Shenzhen Stock Exchange's listing rules, resulting in disciplinary actions against key executives[181]. Environmental Management - The company operates two dairy processing plants: Ximoo Dairy and Shihezi Huayuan Dairy, which are not classified as key pollutant discharge units by environmental protection authorities[200]. - Average COD discharge concentration from the plants is 25 mg/L, complying with national secondary discharge standards without exceeding limits[200]. - The company implements water recycling for irrigation of green areas using treated wastewater to enhance energy efficiency[200].

Financial Performance - Operating revenue for the reporting period was ¥197,197,581.52, representing a year-on-year increase of 19.50%[7] - Net profit attributable to shareholders was -¥33,960,805.28, a decrease of 9.30% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥32,195,174.39, reflecting a year-on-year increase of 20.17%[7] - The basic earnings per share for the reporting period was -¥0.1607, down 9.25% from the previous year[7] - The weighted average return on net assets was -3.59%, a decrease of 0.21% compared to the previous year[7] - Total profit decreased by 21.37 million RMB, a decline of 37.96%, primarily due to significant expenses related to new product development and market expansion[18] - Net profit attributable to shareholders decreased by 39.20% compared to the same period last year[18] - The net profit for the current period was a loss of ¥84,344,429.25, compared to a loss of ¥57,548,202.48 in the previous period, reflecting a deterioration in performance[41] - Basic and diluted earnings per share were both -0.3802, compared to -0.2732 in the previous period[42] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥14,601,419.61, an increase of 106.00%[7] - Operating cash flow net inflow decreased by 257.93 million RMB, a reduction of 106.00%, due to a decrease in cash inflows from operating activities[18] - Cash flow from operating activities generated a net cash inflow of ¥14,601,419.61, a significant improvement from a net outflow of -¥243,324,888.33 in the previous period[46] - The total cash inflow from operating activities was 490,646,299.34 CNY, up from 271,977,614.82 CNY in the previous period[50] - Operating activities generated a net cash flow of -17,700,055.39 CNY, an improvement from -289,968,418.81 CNY in the previous period[50] Assets and Liabilities - Total assets at the end of the reporting period reached ¥2,794,189,508.04, an increase of 0.77% compared to the end of the previous year[7] - Cash and cash equivalents decreased by 152.75 million RMB, a reduction of 52.16% due to increased payments for raw materials and prepayments for equipment[15] - Accounts receivable increased by 32.41 million RMB, a growth of 34.36%, attributed to expanding market sales[15] - Total liabilities rose from ¥1,678,924,239.55 to ¥1,784,565,295.03, which is an increase of approximately 6.3%[28] - The company's long-term borrowings increased from ¥254,000,000.00 to ¥397,000,000.00, representing a rise of about 56.2%[27] - The total equity attributable to shareholders decreased from ¥985,702,909.14 to ¥905,350,277.83, a decline of approximately 8.1%[28] Expenses - Total operating costs for Q3 2017 were CNY 230.63 million, up 19.4% from CNY 193.28 million in Q3 2016[34] - The company reported a significant increase in sales expenses to CNY 17.68 million from CNY 13.76 million, reflecting a rise of 28.5%[34] - Financial expenses rose to ¥47,868,058.93, compared to ¥42,275,037.35 in the previous period, reflecting increased borrowing costs[41] Investments - Investment income increased by 9.01 million RMB, a growth of 97.76%, mainly from recognizing investment income from joint ventures[17] - The company invested 89,118,982.88 CNY in fixed assets, a significant increase from 58,528,036.29 CNY in the previous period[48]

Financial Performance - Total revenue for the reporting period was ¥340,005,473.19, an increase of 1.07% compared to ¥336,417,257.50 in the same period last year[30]. - Net profit attributable to shareholders was -¥46,391,826.03, a decrease of 74.04% from -¥26,656,276.56 in the previous year[30]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was -¥53,474,704.95, down 92.67% from -¥27,754,848.40 year-on-year[30]. - Net cash flow from operating activities improved to -¥52,918,514.25, a 67.4% increase from -¥162,333,002.85 in the previous year[30]. - Basic and diluted earnings per share were both -¥0.2195, a decline of 74.07% from -¥0.1261 in the same period last year[30]. - Total assets at the end of the reporting period were ¥2,856,217,199.78, reflecting a 3.00% increase from ¥2,772,892,881.81 at the end of the previous year[30]. - Net assets attributable to shareholders decreased by 4.71% to ¥939,311,083.11 from ¥985,702,909.14 at the end of the previous year[30]. - The company plans not to distribute cash dividends or issue bonus shares[18]. - The company reported an operating loss of CNY 49.30 million, a decrease of 69.61% compared to the same period last year[85]. - The company's total assets reached CNY 2.86 billion, an increase of 18.67% compared to the previous year[85]. - The sales expenses increased by CNY 15.88 million, a growth of 85.99%, due to market expansion and increased advertising efforts[92]. - The company faced significant operational pressure due to a decline in fresh milk and meat product prices, leading to continuous losses in the dairy farming sector[86]. - The company reported a significant increase in tax expenses, with a 1,000.63% rise to 6,689,841.63 due to higher tax payments compared to the previous year[93]. - The gross profit margin for self-produced fresh milk decreased by 18.90% to -3.54%, while the gross margin for purchased fresh milk remained stable with a slight decrease of 0.79%[94]. - The company reported a net loss of CNY 48,907,460.30, compared to a net loss of CNY 28,576,964.64 in the previous period, reflecting a significant decline in profitability[199]. Market Conditions - The company reported a significant risk related to animal diseases, which could lead to insufficient fresh milk supply and impact sales of dairy products[6]. - The domestic fresh milk sales prices have shown volatility, with a decline starting in the second half of 2014, influenced by international market prices and imports[8]. - The competitive landscape of the dairy industry has stabilized, with major players like Yili and Mengniu leading the market[39]. - The dairy industry in China is experiencing increasing integration, with companies extending into downstream processing to enhance quality control[39]. - The dairy industry faces significant entry barriers, including policy approvals, milk source control, and brand recognition, which favor established players[44]. - Market competition remains a concern, with fluctuating fresh milk prices and increased pressure from imported dairy products affecting profitability[133]. Operational Strategies - The company has implemented strategies to enhance cost management, improve efficiency, and expand its market presence to counteract competitive pressures[9]. - The company is focusing on enhancing its product offerings, including the production of long-life milk, low-temperature yogurt, and milk powder[13]. - The company is aware of the risks associated with fluctuating customer bases and is taking steps to diversify its customer portfolio[13]. - The company is focused on enhancing its supply chain and marketing strategies to strengthen its competitive position in the regional market[41]. - The company aims to expand its market presence by capitalizing on the increasing consumer preference for diverse dairy products and regional specialties[40]. - The company plans to enhance product technology and innovate sales models to improve competitiveness and reduce production costs[88]. - The company is actively pursuing market expansion strategies, including potential mergers and acquisitions to enhance its product offerings and market reach[67]. Quality Control and Safety - The company has maintained a strong focus on product quality and safety, with no major food safety issues reported during the period[10]. - The company emphasizes the importance of adhering to national food safety standards and continuously improving quality management practices[10]. - The company emphasizes strict quality control and adherence to national food safety standards, optimizing production processes to mitigate risks[135]. - The company has implemented standardized feeding techniques and strict monitoring measures to ensure product quality and safety[61]. - The company has established a comprehensive quality traceability system for dairy farming and feed processing, improving product safety[80]. Environmental and Regulatory Factors - Natural disasters pose a risk to operations, but the company has designed its facilities to withstand extreme weather conditions[12]. - The company is facing pressure from environmental protection policies, which may lead to the exit of some small-scale livestock farms from the market[17]. - The company has implemented effective measures to reduce waste generation and environmental emissions in its livestock operations[17]. - The company has implemented measures to minimize environmental impact and comply with stringent environmental protection policies, which may affect smaller competitors in the market[138]. Government Support and Subsidies - The company has received multiple government subsidies and tax incentives to support its operations in the dairy and livestock sectors[15]. - Government subsidies accounted for ¥18,861,447.55, with significant contributions from projects like a 10,000-ton infant formula production line and a 20,000-ton specialized feed production line[33]. - The company has received government subsidies amounting to 19,742,099.37, accounting for 46.76% of total non-operating income, indicating reliance on external support[96]. - The company is committed to staying informed about agricultural tax policies and government subsidies to maximize financial support[137]. Research and Development - The company has a strong technical research and development team and collaborates with various universities and research institutions to enhance its R&D capabilities[60]. - The company has implemented 133 R&D projects in recent years, with 60 projects funded by various levels of government and 73 internal key projects[78]. - The company has achieved 15 technological results and holds 33 patents, demonstrating significant innovation in the livestock industry[78]. - The company has developed key technologies in areas such as cattle nutrition control and infant formula production, reaching advanced domestic levels[80]. - The company has developed a range of new products, including various types of milk packaging and a milk feeding machine based on IoT technology[71]. Risk Management - The company has a comprehensive risk management strategy in place to address potential natural disaster impacts on livestock and production facilities[135]. - The company has established a breeding center to mitigate disease risks and has implemented insurance for its dairy cattle to reduce financial losses from potential outbreaks[132]. - The company is focused on enhancing its internal control management to better respond to various risks[135]. Shareholder and Corporate Governance - The company reported that as of June 30, 2017, the controlling shareholder, Shihezi State-owned Assets Management Group Co., Ltd., has complied with the commitment not to transfer or entrust the management of its shares for 36 months since the company's stock listing[143]. - The company has a commitment from its shareholders that during their tenure, they will not transfer more than 25% of their shares annually, and they have adhered to this commitment as of June 30, 2017[143]. - The company has established a commitment to avoid competition with its controlling shareholder and its subsidiaries, ensuring that no new investments in similar businesses will be made[143]. - The company has the right of first refusal for any new products or technologies developed by its controlling shareholder that are related to its business operations[144]. - The company has not undergone any bankruptcy restructuring during the reporting period[147]. - The semi-annual financial report for the company has not been audited[145].