Summary of the Conference Call for Lihua Co., Ltd. Company Overview - **Company**: Lihua Co., Ltd. - **Date of Call**: August 1, 2024 - **Key Focus**: Half-year financial results and operational outlook Key Points Financial Performance - The company achieved a significant turnaround with a profit of **575 million** (5.75亿) in the first half of 2024, compared to previous losses [3] - Revenue increased by **12.7%** year-on-year, despite a substantial decrease in feed costs [3] - The main business segments, including poultry and pig farming, experienced approximately **10%** growth [4] Operational Insights - The number of yellow-feathered chickens raised showed steady growth, supported by improved production performance and reduced raw material costs [1] - The cost of pig farming has also improved significantly, with costs dropping from **17.0** (17块) to **14.8** (14.8块) per kilogram in the second quarter [8] - The company plans to increase pig output to over **1.2 million** (120万) heads for the year, with **430,000** (43万) heads already achieved in the first half [7] Market Dynamics - The yellow-feathered chicken market is experiencing seasonal consumption patterns, with the second half of the year expected to account for over **50%** of total consumption [17] - The company noted a decline in chicken prices in July compared to June, attributed to various factors including weather impacts and consumer behavior [18][19] - The overall market for yellow-feathered chickens is stable, with expectations for continued demand during the upcoming Mid-Autumn Festival and National Day [20] Industry Trends - The industry is witnessing a consolidation trend, with leading companies like Lihua and Wen's maintaining growth plans despite a generally low cycle in the market [27] - The average cost of production for yellow-feathered chickens has decreased significantly, with costs dropping from **6.3** (6.3块) to **5.9** (5.9块) per kilogram year-on-year [29] - The company anticipates stable raw material costs moving forward, supported by government policies promoting grain production [25] Future Outlook - Capital expenditures are expected to remain around **1 billion** (十亿) annually, focusing on expanding production capacity and improving facilities [31][34] - The company plans to maintain a steady growth rate of **8% to 10%** in the coming years, primarily driven by new company developments [32] - There is a cautious approach towards expanding pig farming capacity, with no immediate plans for cross-regional expansion [62] Additional Notes - The company declared a dividend of **0.30** (三毛) per share for the first time, reflecting its improved financial position [15] - The management emphasized the importance of maintaining quality and market share amidst changing consumer preferences and competitive pressures [41][42] This summary encapsulates the key insights and operational strategies discussed during the conference call, highlighting Lihua Co., Ltd.'s financial recovery, market positioning, and future growth plans.

Investment Rating - The investment rating for the company is "Outperform the Market" [4][15]. Core Views - The company has shown stable growth in output and a decrease in costs, leading to a significant increase in net profit attributable to shareholders, which rose by 346% year-on-year in Q2 2024 [1][5]. - The revenue for the first half of 2024 reached 7.805 billion yuan, a year-on-year increase of 12.16%, with Q2 revenue at 4.144 billion yuan, up 16.79% year-on-year [1][5]. - The growth in revenue is attributed to over 10% year-on-year increases in the output of meat chickens, pigs, and geese, while profitability has improved due to lower breeding costs for pigs and chickens [1][5]. Summary by Sections Chicken Business - The output of yellow feathered chickens continues to grow, with the complete cost per chicken dropping below 6 yuan. In H1 2024, the sales price of meat chickens remained stable year-on-year, while the output increased by 10.69% to 235 million chickens, resulting in a revenue increase of 10.09% to 6.794 billion yuan [1][5]. - The complete cost per chicken decreased by 13.48% year-on-year to 6.1 yuan, with Q2 costs further reduced to 5.9 yuan, leading to a gross margin increase of 13.54 percentage points to 13.86% [1][5]. - The company is expected to maintain good profitability in its chicken business, especially with the upcoming consumption peak in the second half of the year [1][5]. Pig Business - The pig business has maintained rapid growth, with sales of pigs in H1 2024 increasing by 18.83% to 434,900 heads, and the average sales price rising by 7.13% to 15.92 yuan/kg, resulting in a revenue increase of 18.50% to 895 million yuan [2][6]. - The complete breeding cost has decreased, with costs dropping below 16 yuan/kg in March and further to 14.8 yuan/kg in Q2, contributing to a gross margin increase of 33.44 percentage points to 15.55% [2][6]. - The company has established a pig production capacity of approximately 1.8 million heads and aims to achieve over 1.2 million heads of output within the year [2][6]. Goose Business - The goose business has also shown growth, with 960,500 geese sold in H1 2024, a year-on-year increase of 12.92%, although revenue slightly decreased by 1.02% to 82 million yuan [6]. - The gross profit for the goose business increased by 10.81% year-on-year to 16 million yuan due to improved costs and favorable market conditions [6]. Financial Forecasts - The company is expected to benefit from the recovery in the livestock industry, with projected net profits for 2024-2026 being 1.03 billion, 1.44 billion, and 870 million yuan respectively, corresponding to EPS of 1.24, 1.74, and 1.05 yuan [2][5]. - The current price-to-earnings ratio (PE) is projected to be 19, 14, and 22 times for the years 2024, 2025, and 2026 respectively [2][5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][8] Core Views - The company's revenue for the first half of 2024 reached 7.805 billion yuan, a year-on-year increase of 12.16%, and it achieved a net profit of 575 million yuan, recovering from a loss of 592 million yuan in the same period last year [2][3] - The cost of the yellow chicken business has decreased rapidly, leading to continuous improvement in profitability. The company sold 235 million meat chickens in the first half of 2024, a year-on-year increase of 10.69%, with a continued expansion in market share [3] - The average cost of chicken was 6.1 yuan per kilogram in the first half of 2024, down 13.48% from the same period last year, and further decreased to 5.9 yuan in the second quarter [3] - The sales price of meat chickens was 13.21 yuan per kilogram in the first half of 2024, a slight increase of 0.23% year-on-year, indicating a favorable margin due to declining costs [3] - The domestic pig farming sector has also turned profitable, with the company selling 434,900 pigs in the first half of 2024, a year-on-year increase of 18.83% [3] - The average sales price of pigs was 15.92 yuan per kilogram, up 7.13% year-on-year, and the company aims to exceed 1.2 million pigs sold for the full year [3] Financial Projections - Revenue projections for 2024-2026 are adjusted to 17.581 billion yuan, 18.316 billion yuan, and 19.820 billion yuan respectively, with net profits of 1.501 billion yuan, 1.638 billion yuan, and 1.168 billion yuan [3][6] - The corresponding P/E ratios for 2024-2026 are estimated at 13, 12, and 17 times [3][6] - The company is expected to maintain a stable growth trajectory in its yellow chicken and pig farming businesses, with profitability expected to recover due to improving industry conditions [3][6]

Investment Rating - The investment rating for the company is "Buy" with a reasonable value of 30.32 CNY per share, corresponding to a PE ratio of 20 times for the year 2024 [4][10]. Core Views - The company has significantly reduced its breeding costs, leading to a substantial turnaround in performance for the second quarter. The half-year report for 2024 shows a revenue of 7.8 billion CNY, a year-on-year increase of 12%, and a net profit attributable to shareholders of 570 million CNY, a year-on-year increase of 197%. The second quarter alone generated a revenue of 4.1 billion CNY, with a net profit of approximately 500 million CNY, marking a year-on-year increase of 346% [2][3]. - The company experienced steady growth in yellow chicken output, with 235 million birds sold in the first half of 2024, an increase of 11% year-on-year. The average selling price was 6.6 CNY per jin, while the total cost dropped to 6.1 CNY per jin, resulting in an estimated profit of about 2 CNY per bird [2][3]. - The scale of pig farming has rapidly increased, with 435,000 pigs sold in the first half of 2024, a year-on-year increase of 19%. The second quarter saw approximately 242,000 pigs sold, an increase of 88% year-on-year. The breeding cost for pigs significantly decreased to 7.4 CNY per jin in the second quarter [2][3]. Financial Summary - The company's revenue is projected to grow from 15.35 billion CNY in 2023 to 17.13 billion CNY in 2024, reflecting a growth rate of 11.6% [3][8]. - The net profit is expected to recover from a loss of 437 million CNY in 2023 to a profit of 1.26 billion CNY in 2024, indicating a growth rate of 386.8% [3][8]. - The earnings per share (EPS) are forecasted to be 1.52 CNY in 2024, increasing to 2.07 CNY in 2025 and 2.78 CNY in 2026 [2][3].

Investment Rating - The report maintains a "Recommended" rating for the company [2][5]. Core Insights - The company reported a significant improvement in performance for H1 2024, with revenue of 7.805 billion yuan, a year-on-year increase of 12.16%, and a net profit attributable to shareholders of 575 million yuan, reversing from a loss of 592 million yuan in H1 2023 [2]. - The growth in revenue and profitability is attributed to stable sales growth in the pig and chicken segments, a decline in breeding costs due to lower raw material prices, and improved production efficiency [2]. - The company aims to expand its production capacity for yellow feathered chickens and pigs, with expectations for continued price increases in the market [5]. Summary by Sections Financial Performance - H1 2024 revenue reached 7.805 billion yuan, up 12.16% year-on-year; net profit was 575 million yuan, compared to a loss of 592 million yuan in H1 2023 [2]. - The gross profit margin for H1 2024 was 14.10%, an increase of 15.56 percentage points year-on-year [2]. - The company sold 2.35 million yellow feathered chickens in H1 2024, a year-on-year increase of 10.69%, with a sales price of 13.21 yuan/kg, up 0.23% [2]. Production and Capacity - The company plans to achieve an annual output of over 1.2 million pigs in 2024, with a focus on expanding production capacity in Jiangsu, Anhui, and Shandong provinces [2]. - The total number of cooperative farmers for the chicken business reached 6,909, a year-on-year increase of 4.07% [2]. Future Projections - The company forecasts net profits of approximately 1.083 billion yuan, 2.063 billion yuan, and 879 million yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.31 yuan, 2.49 yuan, and 1.06 yuan [5]. - The company aims to maintain a growth rate of 8-10% in annual output for its chicken business [2].

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I.%2E%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) The company's board, supervisors, and senior management assure report accuracy, highlight eight major risks, and propose a 2024 interim cash dividend of 3 Yuan per 10 shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, with no false records, misleading statements, or major omissions[3](index=3&type=chunk) - The company advises investors to pay attention to eight major risks, including product price fluctuations, raw material supply and price fluctuations, inventory impairment, animal epidemics, natural disasters, cooperative farmer management, food safety, and environmental protection risks[428](index=428&type=chunk) - The 2024 interim profit distribution plan approved by the company's Board of Directors is to distribute a cash dividend of **3 Yuan (tax inclusive) per 10 shares** to all shareholders based on the existing total share capital, with no bonus shares or capital reserve conversions[428](index=428&type=chunk)[426](index=426&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information and highlights its significant financial turnaround in H1 2024, achieving profitability with strong revenue and cash flow growth [Company Profile and Contact Information](index=6&type=section&id=I.%20Company%20Profile) This chapter provides the company's basic information, including its stock abbreviation 'Lihua Shares', stock code '300761', legal representative Cheng Lili, and contact details for the Board Secretary and Securities Affairs Representative, with no changes to registered or office addresses during the reporting period Company Basic Information | Item | Information | | :--- | :--- | | **Stock Abbreviation** | Lihua Shares | | **Stock Code** | 300761 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Legal Representative** | Cheng Lili | | **Board Secretary** | Yu Jian | | **Securities Affairs Representative** | Shen Chen | | **Contact Number** | 0519-86350908 | | **Email** | ir@lihuamuye.com | [Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2024, the company's performance significantly improved, successfully turning losses into profits, with operating revenue increasing by 12.16% to 7.805 billion Yuan, net profit attributable to shareholders reaching 575 million Yuan, and operating cash flow growing by 811.23% 2024 Half-Year Key Financial Indicators | Indicator | Current Period | Prior Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (Yuan)** | 7,805,091,471.63 | 6,959,089,826.35 | 12.16% | | **Net Profit Attributable to Shareholders (Yuan)** | 574,602,201.45 | -591,590,642.22 | 197.13% | | **Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (Yuan)** | 543,555,925.01 | -621,156,440.61 | 187.51% | | **Net Cash Flow from Operating Activities (Yuan)** | 676,925,536.59 | 74,286,715.53 | 811.23% | | **Basic Earnings Per Share (Yuan/share)** | 0.6943 | -1.1353 | 161.16% | | **Weighted Average Return on Net Assets** | 7.17% | -7.25% | 14.42% | | **Total Assets (Yuan)** | 14,243,609,772.66 | 13,664,626,453.48 | 4.24% (vs. end of prior year) | | **Net Assets Attributable to Shareholders (Yuan)** | 8,316,666,516.10 | 7,684,786,822.23 | 8.22% (vs. end of prior year) | [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 31.05 million Yuan, primarily comprising government subsidies recognized in current profit and loss and gains/losses from disposal of non-current assets Details of Non-Recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 9,901,839.98 | | Government Subsidies Recognized in Current Profit and Loss | 17,646,531.41 | | Fair Value Changes from Financial Assets and Liabilities Held by Non-Financial Enterprises | 5,468,482.98 | | Other Non-Operating Income and Expenses | -1,970,577.93 | | **Total** | **31,046,276.44** | [Management Discussion and Analysis](index=9&type=section&id=Section%20III.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the company's main operations, core competencies, and financial performance, along with an analysis of assets, liabilities, investments, and risk management strategies [Company Main Business Overview](index=9&type=section&id=I.%20Company%20Main%20Business%20Overview) The company's main business involves the breeding, slaughtering, processing, and sale of yellow-feathered broiler chickens, commercial pigs, and meat geese, operating under an integrated "company + cooperative + farmer" model, achieving a significant turnaround in H1 2024 with 7.805 billion Yuan in revenue [Main Business, Products, and Operating Model](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20Main%20Business%2C%20Main%20Products) The company primarily engages in the breeding and sale of yellow-feathered broiler chickens, commercial pigs, and meat geese, having established an integrated industry chain from breeding and feed processing to farming and slaughtering, with core operating models ensuring product quality and food safety through unified management - The company's main business involves the breeding, slaughtering, processing, and sale of yellow-feathered broiler chickens, as well as the breeding and sale of commercial pigs and meat geese[18](index=18&type=chunk) - The company implements a "company + cooperative + farmer" cooperation model for yellow-feathered broiler chicken and meat goose breeding, and a "company + base + farmer" model for pig breeding[43](index=43&type=chunk)[443](index=443&type=chunk) [Market Position and Performance Drivers](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%20Market%20Position) The company is a leading yellow-feathered broiler chicken breeding enterprise in China, holding approximately 12.71% market share in 2023, with H1 2024 performance driven by increased sales, reduced costs in yellow-feathered chicken, improved pig prices, and continued profitability in meat geese - According to statistics from the China Animal Husbandry Association, the company sold **457 million broiler chickens** in 2023, accounting for approximately **12.71%** of the national yellow-feathered chicken output, indicating a stable industry position[22](index=22&type=chunk) 2024 Half-Year Performance Drivers by Business Segment | Business Segment | Sales Volume & YoY Change | Price & YoY Change | Cost Change | Summary | | :--- | :--- | :--- | :--- | :--- | | **Yellow-Feathered Broiler Chicken** | 235 million units (+10.69%) | 13.21 Yuan/kg (+0.23%) | Full cost per kg chicken 6.1 Yuan (-13.48%) | Sales growth and significant cost reduction created substantial profit margin | | **Pig** | 0.4349 million units (+18.83%) | 15.92 Yuan/kg (+7.13%) | Q2 cost per kg pig decreased to 7.4 Yuan | Domestic pig prices rebounded, leading to profitability in the segment | | **Meat Goose** | 0.9605 million units (+12.92%) | Sales revenue 80 million Yuan (-1.02%) | Reduced gosling production costs | Continued strong profitability, supported by rising goose down prices | [Industry Development Trends](index=12&type=section&id=%EF%BC%88%E5%8D%81%EF%BC%89%20Industry%20Development%20Trends) During the reporting period, the yellow-feathered chicken industry saw a declining supply due to capacity exits and reduced breeding costs from lower corn and soybean meal prices, while the pig industry experienced a 3.1% decrease in national pig output and a 6.0% decline in breeding sow inventory, leading to rising pig prices and industry profitability since March - Yellow-feathered broiler chicken industry: Supply generally showed a downward trend due to some capacity exits, while prices of major raw materials like corn and soybean meal decreased, lowering industry breeding costs[47](index=47&type=chunk) - Pig industry: In the first half of 2024, national pig output decreased by **3.1%** year-on-year, and breeding sow inventory decreased by **6.0%** year-on-year, leading to an upward trend in pig prices since March due to supply-demand dynamics, restoring industry profitability[31](index=31&type=chunk)[32](index=32&type=chunk)[49](index=49&type=chunk) [Core Competitiveness Analysis](index=14&type=section&id=II.%20Core%20Competitiveness%20Analysis) The company's core competitiveness is built upon five pillars: an integrated full-产业链 operation, a mutually beneficial cooperative breeding model, continuous technological innovation, advanced information technology infrastructure, and accumulated talent advantages - The company has established a full industry chain integrating breeding, feed production, farming, and slaughtering, enhancing its risk resistance, cost control, and food safety traceability capabilities[50](index=50&type=chunk)[74](index=74&type=chunk) - Innovative "company + cooperative + farmer" and "company + base + farmer" models, through unified management and risk-sharing mechanisms, effectively stimulate farmer enthusiasm and ensure product quality[52](index=52&type=chunk)[141](index=141&type=chunk) - The company continuously invests in breeding and disease prevention technology R&D, with **46.64 million Yuan** in R&D expenditure during the reporting period and **191 valid patents** as of the end of the period, demonstrating significant technological advantages[142](index=142&type=chunk)[143](index=143&type=chunk) - The company utilizes intelligent software, IoT, and big data analytics to enhance management efficiency and precision[144](index=144&type=chunk) [Main Business Analysis](index=16&type=section&id=III.%20Main%20Business%20Analysis) In the first half of 2024, the company's main business performed strongly, with operating revenue increasing by 12.16% driven by higher sales volume, and operating costs decreasing by 5.04% due to lower raw material costs, resulting in significant gross margin improvements for both chicken and pig businesses Key Financial Data Year-on-Year Changes | Item | Current Period (Yuan) | Prior Period (Yuan) | Year-on-Year Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 7,805,091,471.63 | 6,959,089,826.35 | 12.16% | Due to increased sales volume | | **Operating Cost** | 6,704,359,986.57 | 7,060,399,538.68 | -5.04% | Due to decreased raw material costs | | **Net Cash Flow from Operating Activities** | 676,925,536.59 | 74,286,715.53 | 811.23% | Due to increased revenue and decreased raw material prices | Gross Margin by Product | Product | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Gross Margin Change vs. Prior Year | | :--- | :--- | :--- | :--- | :--- | | **Chicken Revenue** | 6,793,877,814.46 | 5,851,977,910.57 | 13.86% | 13.60% | | **Pig Revenue** | 894,500,321.09 | 755,424,248.73 | 15.55% | 34.47% | [Non-Main Business Analysis](index=17&type=section&id=IV.%20Non-Main%20Business%20Analysis) During the reporting period, non-main business activities positively impacted profit, primarily from fair value change gains of 5.23 million Yuan (mainly bank wealth management) and asset impairment reversals of 42.71 million Yuan (mainly inventory impairment reversal), while non-current asset disposal losses resulted in 9.48 million Yuan in non-operating expenses Non-Main Business Profit and Loss Items | Item | Amount (Yuan) | Reason for Formation | | :--- | :--- | :--- | | **Fair Value Change Gains/Losses** | 5,226,284.81 | Primarily due to fair value changes in bank wealth management products | | **Asset Impairment** | 42,714,816.03 | Primarily due to reversal of inventory impairment | | **Non-Operating Expenses** | 9,477,525.10 | Primarily due to losses from disposal of non-current assets | [Analysis of Assets and Liabilities](index=17&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets were 14.24 billion Yuan, a 4.24% increase from the beginning of the period, with changes in asset structure including increased inventory due to higher livestock and poultry holdings, increased fixed assets from construction in progress transfers, and a significant decrease in transactional financial assets due to wealth management product redemptions - Inventory increased by **2.77 percentage points** from the beginning of the period, primarily due to an increase in the company's livestock and poultry inventory[124](index=124&type=chunk) - Fixed assets as a percentage of total assets increased to **51.53%**, mainly due to construction in progress reaching its intended usable state and being transferred to fixed assets, with a corresponding decrease in the proportion of construction in progress[124](index=124&type=chunk) - Transactional financial assets as a percentage of total assets decreased from **5.19% to 2.14%**, primarily due to the redemption of wealth management products[124](index=124&type=chunk) Restricted Assets at Period End | Item | Book Value at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 15,563,451.93 | Margin | | Fixed Assets | 17,529,837.61 | Loan Collateral | | Intangible Assets | 5,882,139.09 | Loan Collateral | | **Total** | **38,975,428.63** | -- | [Investment Analysis](index=18&type=section&id=VI.%20Investment%20Analysis) During the reporting period, the company's total investment amounted to 2.507 billion Yuan, a 23.88% year-on-year increase, primarily focused on fundraising projects such as slaughterhouses and integrated chicken farming projects, while also engaging in entrusted wealth management with自有资金 and derivative investments for hedging raw material and pig price fluctuations [Use of Raised Funds](index=19&type=section&id=%EF%BC%881%EF%BC%89%20Use%20of%20Raised%20Funds) The company raised a net amount of 1.261 billion Yuan through a private placement in 2022, with 1.136 billion Yuan cumulatively invested as of June 30, 2024, primarily in broiler chicken slaughtering and integrated chicken farming projects in various locations, and remaining funds of 136 million Yuan (including wealth management income) permanently used to supplement working capital Overall Use of Raised Funds (10,000 Yuan) | Item | Amount | | :--- | :--- | | **Total Raised Funds** | 126,064.41 | | **Total Investment in Current Period** | 4,961.11 | | **Total Cumulative Investment** | 113,622.93 | | **Total Cumulative Change in Use** | 6,018.96 | | **Cumulative Change in Use Ratio** | 4.74% | - Multiple fundraising projects, such as the "Xiangtan Lihua Broiler Chicken Slaughtering Project" and "Xuzhou Lihua Integrated Chicken Farming Project," have been completed, with remaining raised funds totaling **136 million Yuan** (including wealth management and interest income) permanently used to supplement working capital[108](index=108&type=chunk)[94](index=94&type=chunk) [Entrusted Wealth Management, Derivative Investments, and Entrusted Loans](index=24&type=section&id=6%E3%80%81Entrusted%20Wealth%20Management%2C%20Derivative%20Investments%2C%20and%20Entrusted%20Loans) During the reporting period, the company engaged in entrusted wealth management using its own funds, with transactions totaling 503 million Yuan and an outstanding balance of 300 million Yuan at period-end, while also conducting hedging activities for soybean meal and live pig futures contracts to mitigate raw material and pig price volatility, with a period-end position of 58.81 million Yuan, representing 0.71% of the company's net assets Entrusted Wealth Management Overview (10,000 Yuan) | Specific Type | Fund Source | Transaction Amount | Unexpired Balance | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 43,300 | 0 | | Brokerage Wealth Management Products | Own Funds | 7,000 | 30,000 | | **Total** | | **50,300** | **30,000** | Hedging Derivative Investment Situation (10,000 Yuan) | Derivative Type | Beginning Balance | Current Period Purchases | Current Period Sales | Ending Balance | Ending Balance as % of Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Soybean Meal, Live Pig Futures Contracts | 3,493.49 | 66,134.6 | 63,747.09 | 5,881 | 0.71% | [Analysis of Major Holding and Participating Companies](index=26&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company's major subsidiaries performed well, with Fuyang Lihua Livestock and Poultry Co., Ltd., Xuzhou Lihua Livestock and Poultry Co., Ltd., and Changzhou Tianmu Poultry Co., Ltd. making particularly significant contributions to the company's net profit, achieving net profits of 97.53 million Yuan, 62.42 million Yuan, and 58.83 million Yuan, respectively Major Subsidiary Operating Performance (10,000 Yuan) | Company Name | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | | **Fuyang Lihua Livestock and Poultry Co., Ltd.** | 79,426.63 | 9,764.57 | 9,753.06 | | **Xuzhou Lihua Livestock and Poultry Co., Ltd.** | 48,965.43 | 6,264.99 | 6,242.16 | | **Changzhou Tianmu Poultry Co., Ltd.** | 58,017.48 | 5,892.72 | 5,882.97 | [Company Risks and Countermeasures](index=28&type=section&id=X.%20Company%20Risks%20and%20Countermeasures) The company faces major risks including product price volatility, raw material price fluctuations, inventory impairment, animal epidemics, natural disasters, cooperative farmer management, food safety, and environmental protection risks, which it addresses by strengthening full industry chain development, steadily developing the pig industry to smooth cycles, increasing R&D investment, and improving management and quality safety systems - The company faces major operating risks including: product price fluctuations (live livestock and poultry), raw material price fluctuations (corn, soybean meal), inventory impairment, animal epidemics (avian influenza, swine fever, etc.), food safety, and environmental protection[174](index=174&type=chunk)[175](index=175&type=chunk)[177](index=177&type=chunk)[156](index=156&type=chunk) - The company's countermeasures include: adhering to full industry chain development to smooth cycle fluctuations; steadily developing the pig industry to form a "dual-driver" strategy; increasing investment in technology R&D to enhance core competitiveness; and improving the quality and safety management system to ensure product traceability[179](index=179&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) [Corporate Governance](index=32&type=section&id=Section%20IV.%20Corporate%20Governance) This section details the company's corporate governance practices, including shareholder meetings, profit distribution plans, and the implementation of equity incentive programs [Shareholder Meeting Information](index=32&type=section&id=I.%20Shareholder%20Meeting%20Information%20During%20the%20Reporting%20Period) During the reporting period, the company held its 2023 Annual General Meeting on May 13, 2024, with a 79.44% investor participation rate, and the resolutions were disclosed as required 2023 Annual General Meeting | Meeting Type | Investor Participation Rate | Date Held | | :--- | :--- | :--- | | Annual General Meeting | 79.44% | 2024年05月13日 | [Profit Distribution and Capital Reserve Conversion to Share Capital](index=32&type=section&id=III.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20Current%20Reporting%20Period) The company proposed a 2024 interim profit distribution plan to distribute a cash dividend of 3 Yuan (tax inclusive) per 10 shares to all shareholders, based on a total share capital of 827,644,501 shares, amounting to 248 million Yuan in cash dividends, with no bonus shares or capital reserve conversions 2024 Half-Year Profit Distribution Plan | Item | Content | | :--- | :--- | | **Cash Dividend Per 10 Shares (Yuan) (Tax Inclusive)** | 3 | | **Share Capital Base for Distribution Plan (shares)** | 827,644,501 | | **Cash Dividend Amount (Yuan) (Tax Inclusive)** | 248,293,350.30 | | **Cash Dividend as % of Total Profit Distribution** | 100.00% | [Implementation of Equity Incentive Plans](index=33&type=section&id=IV.%20Implementation%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company continued its 2022 Restricted Stock Incentive Plan and launched a new 2024 Restricted Stock Incentive Plan, granting 15.49 million Class II restricted shares to 571 incentive recipients at 10.46 Yuan/share on May 13, 2024, with shares from both plans not yet entering the vesting period as of the reporting period end - On May 13, 2024, the company granted **15.49 million Class II restricted shares** to **571 incentive recipients** for the first time, at a grant price of **10.46 Yuan/share**[167](index=167&type=chunk) - As of the end of the reporting period, shares granted under both the 2022 and 2024 Restricted Stock Incentive Plans have not yet entered their vesting periods[166](index=166&type=chunk)[216](index=216&type=chunk) [Environmental and Social Responsibility](index=35&type=section&id=Section%20V.%20Environmental%20and%20Social%20Responsibility) This section outlines the company's significant environmental issues, including pollutant emissions and compliance, and details its commitment to social responsibility through cooperative farming models that promote rural revitalization and farmer income growth [Significant Environmental Issues](index=35&type=section&id=I.%20Significant%20Environmental%20Issues) The company and several subsidiaries are designated key pollutant discharge units, primarily emitting production wastewater (COD, ammonia nitrogen) and exhaust gas, with detailed reports confirming compliance with emission standards and total discharge limits, ongoing environmental governance efforts, and a minor fine for atmospheric pollution at a Lianyungang subsidiary that has been rectified - The company and several of its subsidiaries (such as Jiangsu Lihua Food, Yangzhou Yangxue Food, etc.) are designated as key pollutant discharge units, with main pollutants being production wastewater and exhaust gas[220](index=220&type=chunk)[221](index=221&type=chunk)[196](index=196&type=chunk) - During the reporting period, the company paid **0.27 million Yuan** in environmental protection tax, and all production units have developed environmental self-monitoring plans and emergency response plans for environmental incidents as required[230](index=230&type=chunk) - Lianyungang Lihua Animal Husbandry Co., Ltd. was fined **0.02 million Yuan** for violating relevant provisions of the "Atmospheric Pollution Prevention and Control Law," and the company has paid the fine on time and completed rectification[204](index=204&type=chunk) [Social Responsibility](index=42&type=section&id=II.%20Social%20Responsibility) Adhering to the philosophy of "sincere cooperation and common prosperity," the company actively fulfills its social responsibilities through models like "company + cooperative + farmer," contributing to rural revitalization, with 7,283 cooperative farmers as of the reporting period end and 766 million Yuan in total settlement income for them in the first half of the year, driving farmer employment and income growth - As of the end of the reporting period, the company had **7,283 cooperative farmers**[232](index=232&type=chunk) - In the current reporting period, the company's total settlement income for cooperative farmers reached **766 million Yuan**, a **7.02%** year-on-year increase, effectively boosting farmer income and prosperity[232](index=232&type=chunk)[44](index=44&type=chunk) [Significant Matters](index=42&type=section&id=Section%20VI.%20Significant%20Matters) This section covers the fulfillment of commitments by the company's actual controllers and related parties, details significant related-party transactions, and provides an overview of major guarantees [Fulfillment of Commitments](index=42&type=section&id=I.%20Fulfillment%20of%20Commitments%20by%20Company%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period%20and%20Overdue%20Unfulfilled%20Commitments%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, the share lock-up and reduction commitments made by the company's controlling shareholder, actual controller Mr. Cheng Lili, and other related parties during the company's initial public offering or refinancing were fulfilled on time - The 18-month lock-up commitment for shares acquired by Mr. Cheng Lili, one of the company's controlling shareholders and actual controllers, from the 2021 private placement expired on February 28, 2024, and has been fulfilled[59](index=59&type=chunk) - The share reduction commitments made by the company's controlling shareholder, actual controller, and other major shareholders during the initial public offering expired on February 17, 2024, and have been fulfilled[257](index=257&type=chunk)[258](index=258&type=chunk) [Significant Related-Party Transactions](index=47&type=section&id=XI.%20Significant%20Related-Party%20Transactions) During the reporting period, the company engaged in daily operational related-party transactions with Changjia (Shanghai) Agricultural Technology Co., Ltd., selling feed and breeding pigs totaling 26.14 million Yuan, accounting for 99.99% of similar transactions and remaining within the annual approved limit of 90 million Yuan, with pricing based on market principles Related-Party Transactions Related to Daily Operations | Related Party | Related Transaction Type | Related Transaction Content | Related Transaction Amount (10,000 Yuan) | % of Similar Transaction Amount | Approved Transaction Limit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Changjia (Shanghai) Agricultural Technology Co., Ltd. | Sales of Products to Related Parties | Sales of feed, breeding pigs, piglets, etc. | 2,614.2 | 99.99% | 9,000 | [Major Guarantees](index=49&type=section&id=2%E3%80%81Major%20Guarantees) As of the end of the reporting period, the company's total actual guarantees amounted to 465 million Yuan, representing 5.59% of its net assets, primarily comprising financing guarantees for cooperative farmers and guarantees for subsidiaries, all within approved limits and without any irregular guarantee situations Summary of Guarantees | Guarantee Type | Actual Guarantee Balance at Period End (10,000 Yuan) | | :--- | :--- | | Guarantees for Cooperative Farmers | 16,520.30 | | Guarantees for Subsidiaries | 29,974.44 | | **Total** | **46,494.74** | - The company's total actual guarantees accounted for **5.59%** of its net assets[276](index=276&type=chunk) [Share Changes and Shareholder Information](index=52&type=section&id=Section%20VII.%20Share%20Changes%20and%20Shareholder%20Information) This section provides an overview of the company's share capital structure, shareholder numbers, and major shareholder holdings, confirming no changes in controlling shareholder or actual controller during the reporting period [Share Changes](index=52&type=section&id=I.%20Share%20Changes) As of June 30, 2024, the company's total share capital remained unchanged at 827,644,501 shares, with restricted shares accounting for 26.91% and unrestricted shares for 73.09% Share Structure | Share Type | Quantity | Proportion | | :--- | :--- | :--- | | **I. Restricted Shares** | 222,745,411 | 26.91% | | **II. Unrestricted Shares** | 604,899,090 | 73.09% | | **III. Total Shares** | **827,644,501** | **100.00%** | [Shareholder Numbers and Shareholding Information](index=53&type=section&id=III.%20Shareholder%20Numbers%20and%20Shareholding%20Information) As of the end of the reporting period, the company had 10,244 common shareholders, with a stable top ten shareholder structure where controlling shareholder Mr. Cheng Lili held 32.64% and, together with his concerted parties, controlled the company, and institutional investors including multiple Zhonggeng Fund products were among the top ten shareholders - As of the end of the reporting period, the company had a total of **10,244 common shareholders**[284](index=284&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shareholding Proportion | Number of Shares Held | | :--- | :--- | :--- | | Cheng Lili | 32.64% | 270,130,501 | | Changzhou Benteng Animal Husbandry Technology Service Center (Limited Partnership) | 19.03% | 157,500,000 | | Changzhou Tianming Agricultural Technology Service Center (Limited Partnership) | 9.21% | 76,230,000 | | Changzhou Hao Cheng Animal Husbandry Technology Service Center (Limited Partnership) | 2.26% | 18,732,080 | | Changzhou Juyi Agricultural Technology Service Center (Limited Partnership) | 1.93% | 15,975,460 | | Wei Fengming | 1.76% | 14,549,760 | | Zhonggeng Value Navigation Mixed Securities Investment Fund | 1.49% | 12,291,207 | | Zhang Qiugang | 1.46% | 12,082,134 | | Zhonggeng Small-Cap Value Stock Investment Fund | 1.22% | 10,080,321 | | Zhonggeng Value Quality One-Year Holding Period Mixed Securities Investment Fund | 1.11% | 9,215,076 | [Changes in Controlling Shareholder or Actual Controller](index=56&type=section&id=VI.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder and actual controller remained unchanged during the reporting period[288](index=288&type=chunk) [Preferred Shares Information](index=57&type=section&id=Section%20VIII.%20Preferred%20Shares%20Information) This section confirms that the company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[289](index=289&type=chunk) [Bonds Information](index=58&type=section&id=Section%20IX.%20Bonds%20Information) This section confirms that the company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[334](index=334&type=chunk) [Financial Report](index=59&type=section&id=Section%20X.%20Financial%20Report) This section presents the company's unaudited financial statements for the first half of 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in equity, along with detailed notes on accounting policies and key financial items [Audit Report Explanation](index=59&type=section&id=I.%20Audit%20Report) The company's 2024 half-year financial report is unaudited - The company's half-year financial report is unaudited[310](index=310&type=chunk) [Financial Statements](index=59&type=section&id=II.%20Financial%20Statements) This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2024 [Consolidated Balance Sheet](index=59&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of June 30, 2024, the company's total assets were 14.24 billion Yuan, total liabilities were 5.83 billion Yuan, and owners' equity attributable to the parent company was 8.32 billion Yuan, with an asset-liability ratio of 40.9% Consolidated Balance Sheet Key Items (Yuan) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | **Total Assets** | **14,243,609,772.66** | **13,664,626,453.48** | | Total Current Assets | 4,019,010,500.23 | 3,885,262,038.22 | | Total Non-Current Assets | 10,224,599,272.43 | 9,779,364,415.26 | | **Total Liabilities** | **5,826,430,846.57** | **5,877,860,670.49** | | Total Current Liabilities | 5,054,406,788.31 | 5,050,807,711.55 | | Total Non-Current Liabilities | 772,024,058.26 | 827,052,958.94 | | **Total Owners' Equity** | **8,417,178,926.09** | **7,786,765,782.99** | | Total Owners' Equity Attributable to Parent Company | 8,316,666,516.10 | 7,684,786,822.23 | [Consolidated Income Statement](index=64&type=section&id=3%E3%80%81Consolidated%20Income%20Statement) In the first half of 2024, the company achieved total operating revenue of 7.805 billion Yuan and total operating costs of 7.303 billion Yuan, resulting in a total profit of 573 million Yuan and a net profit of 573 million Yuan, with net profit attributable to parent company shareholders reaching 575 million Yuan, successfully turning losses into profits Consolidated Income Statement Key Items (Yuan) | Item | 2024 Half-Year | 2023 Half-Year | | :--- | :--- | :--- | | **I. Total Operating Revenue** | **7,805,091,471.63** | **6,959,089,826.35** | | **II. Total Operating Costs** | **7,303,412,002.50** | **7,572,522,552.24** | | Including: Operating Cost | 6,704,359,986.57 | 7,060,399,538.68 | | **III. Operating Profit** | **582,393,188.95** | **-578,685,935.70** | | **IV. Total Profit** | **573,302,450.22** | **-591,719,358.78** | | **V. Net Profit** | **573,135,650.68** | **-591,780,501.80** | | Net Profit Attributable to Parent Company Shareholders | 574,602,201.45 | -591,590,642.22 | [Consolidated Cash Flow Statement](index=67&type=section&id=5%E3%80%81Consolidated%20Cash%20Flow%20Statement) In the first half of 2024, the company generated 677 million Yuan in net cash flow from operating activities, a significant increase from the prior year, while net cash outflow from investing activities was 579 million Yuan and from financing activities was 120 million Yuan, resulting in a period-end cash and cash equivalents balance of 330 million Yuan Consolidated Cash Flow Statement Key Items (Yuan) | Item | 2024 Half-Year | 2023 Half-Year | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | **676,925,536.59** | **74,286,715.53** | | **Net Cash Flow from Investing Activities** | **-579,270,273.22** | **-821,961,050.12** | | **Net Cash Flow from Financing Activities** | **-119,892,463.54** | **386,297,915.97** | | **Net Increase in Cash and Cash Equivalents** | **-22,237,199.63** | **-361,376,346.07** | | **Cash and Cash Equivalents at Period End** | **329,897,617.15** | **176,113,013.81** | [Notes to Financial Statements](index=77&type=section&id=III.%20Company%20Basic%20Information) This chapter elaborates on the basis of financial statement preparation, adherence to enterprise accounting standards, and explanations of significant accounting policies and estimates, including financial instruments, inventory, fixed assets, biological assets, and revenue recognition, along with detailed notes and analysis of major items in the consolidated financial statements - The company's main business involves the breeding and sale of yellow-feathered broiler chickens, commercial pigs, and meat geese, complemented by slaughtering and processing operations, forming an integrated industry chain[391](index=391&type=chunk) - The financial statements are prepared on a going concern basis and comply with enterprise accounting standards[368](index=368&type=chunk)[402](index=402&type=chunk) - Biological assets are categorized into consumable biological assets (e.g., commercial chickens, commercial pigs) and productive biological assets (e.g., breeding chickens, breeding pigs), accounted for using the cost method and depreciation method, respectively[679](index=679&type=chunk)[685](index=685&type=chunk) - Company revenue is recognized when customers obtain control of the related goods or services, primarily upon delivery and acceptance of live livestock and poultry by the customer[790](index=790&type=chunk)[796](index=796&type=chunk)

证券代码：300761 证券简称：立华股份 公告编号：2024-057 江苏立华牧业股份有限公司 关于召开2024年第二次临时股东大会的通知 1、股东大会届次：2024 年第二次临时股东大会； 2、股东大会召集人：公司董事会； 3、会议召开的合法、合规性：公司第四届董事会第二次会议作出了关于召 开本次股东大会的决定，本次股东大会的召集程序符合有关法律、行政法规、部 门规章、规范性文件、深圳证券交易所（以下简称深交所）业务规则和《公司章 程》等的规定。 4、会议召开的日期、时间： ①现场会议召开时间为：2024 年 8 月 16 日（星期五）下午 2:00； ②网络投票时间为： 通过深圳证券交易所交易系统进行网络投票的具体时间为 2024 年 8 月 16 日 9:15~9:25，9:30~11:30 和 13:00~15:00； 本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有 虚假记载、误导性陈述或重大遗漏。 江苏立华牧业股份有限公司（以下简称公司、立华股份）第四届董事会第二 次会议决定采取现场会议与网络投票相结合的方式召开公司 2024 年第二次临时 股东大会，现将本次股东大会会议有关事项通 ...

证券代码：300761 证券简称：立华股份 公告编号：2024-058 1 序 号 委托方 受托方 产品名称 产品类型 资金来源 金额 （万元） 起息日 到期日 预期年化 收益率（%） 1 江苏立华 牧业股份 有限公司 中信银行股 份有限公司 常州分行 七天通知存款 保本固定 收益类 自有资金 3,000 2024/4/30 2024/5/7 0.80 一、主要内容 2 序号 委托方 受托方 产品名称 产品类型 资金来源 金额 （万元） 起息日 到期日 预期年化 收益率（ % ） 2 江苏立华 牧业股份 有限公司 中信银行股 份有限公司 常州分行 信银理财日盈 象天天利 1 号 C 款现金管理 型理财产品 公募、固定 收益类、开 放式 自有资金 20,000 2024/5/7 无固定期 限 2024/5/8 赎 回 7,000 万； 2024/5/10 赎 回 5,000 万； 2024/5/13 赎 回 8,000 万 3 江苏立华 牧业股份 有限公司 中国民生银 行股份有限 公司常州武 进支行 民生天天增利 对公款理财产 品 固定收益类 自有资金 12,000 2024/5/7 无固定期 限 2024/5 ...

证券代码：300761 证券简称：立华股份 公告编号：2024-052 江苏立华牧业股份有限公司 第四届董事会第二次会议决议的公告 本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有 虚假记载、误导性陈述或重大遗漏。 二、董事会会议审议情况 经与会董事认真审议，充分讨论，会议审议通过了以下议案： 1、审议通过《关于公司<2024 年半年度报告>及其摘要的议案》 董事会认为《2024 年半年度报告》及其摘要真实反映了本报告期公司财务 状况及经营管理情况，所记载事项不存在虚假记载、误导性陈述或重大遗漏，所 披露的信息真实、准确、完整。具体内容详见公司 2024 年 8 月 1 日刊载于巨潮 资讯网（http://www.cninfo.com.cn）的《2024 年半年度报告》及《2024 年半年度 报告摘要》。 表决结果：9 票同意，0 票反对，0 票弃权。 2、审议通过《关于<2024 年半年度募集资金存放与使用情况的专项报告> 的议案》 具 体 内 容 详 见 公 司 2024 年 8 月 1 日 刊 载 于 巨 潮 资 讯 网 （http://www.cninfo.com.cn）的《2024 年 ...

证券代码：300761 证券简称：立华股份 公告编号：2024-056 根据中国证券监督管理委员会《上市公司监管指引第 3 号——上市公司现金 分红》及《公司章程》等规定，为充分考虑对投资者的回报，结合公司 2024 年 半年度实际生产经营情况及未来发展前景，江苏立华牧业股份有限公司（以下简 称公司）于 2024 年 7 月 31 日召开第四届董事会第二次会议、第四届监事会第二 次会议，会议审议通过《关于 2024 年中期现金分红预案的议案》，本议案尚需 提交公司 2024 年第二次临时股东大会审议。现将有关事项公告如下： 一、2024 年中期利润分配预案基本情况 公司 2024 年 1-6 月实现归属于上市公司股东的净利润为 574,602,201.45 元， 母公司 2024 年半年度实现净利润-77,204,277.20 元。截至 2024 年 6 月 30 日，公 司合并报表累计未分配利润为 4,594,296,492.17 元，母公司累计未分配利润为 2,332,587,941.30 元。 江苏立华牧业股份有限公司 关于 2024 年中期现金分红预案的公告 本公司及董事会全体成员保证信息披露的内容真 ...