Financial Performance - The company expects revenues for the first five months of 2020 to be approximately 93% lower compared to the same period last year, estimated at $0.32 million[230]. - The company anticipates a net loss of approximately $0.65 million for the first five months of 2020, which is about 66% lower than the same period last year[230]. - Net revenues for 2019 were $12,455,414, a decrease of 43.78% from $22,154,506 in 2018, and a decline of 22.19% from $28,473,016 in 2017[276]. - Total revenues for the year ended December 31, 2019, were $12,648,255, a decrease of 46.6% compared to $23,674,037 in 2018[278]. - Revenue decreased by approximately $11 million from $23.6 million in 2018 to $12.6 million in 2019, indicating a significant decline in sales[312]. - The company reported a net loss of $8,625,427 for the year ended December 31, 2019, a decrease from the net loss of $14,219,265 in 2018, reflecting improvements in gross margin and reduced operating expenses[309]. - The loss from operations was $6,958,496 for 2019, compared to $14,043,772 in 2018, with operating loss as a percentage of total revenues improving from negative 59.32% in 2018 to negative 55.02% in 2019[306]. Operational Challenges - The company is currently facing monthly losses exceeding RMB3 million (approximately $0.43 million) due to market conditions[234]. - The company has temporarily suspended manufacturing activities in November 2019 due to operational inefficiencies, which adversely affected sales and cash flows[312]. - The company has been involved in 48 lawsuits related to non-payment of invoices, with estimated mediation and judgment costs of approximately RMB11.8 million (USD1.69 million)[237]. - Labor arbitration claims from former employees total approximately RMB4.8 million (USD0.69 million) due to layoffs and related obligations[245]. - The company has outstanding loans totaling RMB20 million related to the purchase of the Lingang facility, which need to be renewed for continued operations[236]. Market Conditions - The price of chicken breasts has increased by more than 35% from less than RMB15 per kilogram in early 2019 to nearly RMB20 per kilogram, impacting production costs and gross profit margins[234]. - The company operates in a highly competitive pet food market, facing pricing pressures and competition from larger firms with greater resources[259]. - The company has suspended its overseas e-commerce business in 2019 due to continuous losses but plans to expand its domestic e-commerce efforts in the near future[254]. - E-commerce sales in 2019 were $83,779, accounting for only 1% of total revenue, a significant drop from 20% in 2017[261]. - E-commerce sales saw a dramatic decline of 98%, dropping from $3,800,668 in 2018 to $83,779 in 2019[278]. Financial Position - As of December 31, 2019, the company had cash and cash equivalents of approximately $6.5 million, with total notes payable and loans amounting to approximately $9.5 million[313]. - The company had a working capital deficit of approximately $7.3 million as of December 31, 2019, an improvement from a deficit of approximately $11.3 million in 2018[312]. - Total assets decreased to $15,087,210 as of December 31, 2019, from $17,429,406 as of December 31, 2018, a decline of 13%[341]. - Total liabilities decreased to $14,749,811 as of December 31, 2019, from $19,365,973 as of December 31, 2018, a reduction of 24%[341]. - Accounts receivable, net, significantly dropped to $21,657 as of December 31, 2019, from $845,800 as of December 31, 2018, a decrease of 97%[341]. Future Outlook - The company plans to improve profitability and generate sufficient cash flow to meet operating needs, while exploring additional financing options[315]. - There is substantial doubt about the company's ability to continue as a going concern for the next 12 months due to ongoing financial challenges and the impact of COVID-19[317]. - The company plans to incur additional R&D expenses in the coming years to diversify product offerings and maintain competitive advantage[303]. Compliance and Regulatory Issues - The company expects to incur additional costs related to compliance with the Sarbanes-Oxley Act, which may require seeking additional financing sources[333]. - The company successfully obtained investment approval from the Ministry of Commerce for proceeds from its IPO during 2017[338]. - The company does not have any off-balance sheet arrangements that require disclosure under SEC regulations[358].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark one) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...