HNZHKJ(000702)2024-08-27 08:08Financial Performance - The company's operating revenue for the reporting period was ¥438,451,452.93, a decrease of 28.13% compared to ¥610,031,120.14 in the same period last year[13]. - The net profit attributable to shareholders was -¥11,221,651.12, an improvement of 77.19% from -¥49,185,866.56 in the previous year[13]. - The net cash flow from operating activities was -¥46,827,651.19, a decline of 362.95% compared to ¥17,808,873.32 in the same period last year[13]. - The basic earnings per share were -¥0.0324, showing an increase of 82.44% from -¥0.1845 in the previous year[13]. - Total assets at the end of the reporting period were ¥714,982,291.12, a decrease of 0.44% from ¥718,154,474.27 at the end of the previous year[13]. - The company's total operating revenue for the reporting period was approximately 438.45 million yuan, a decrease of 28.13% compared to 610.03 million yuan in the same period last year, primarily due to a reduction in pig sales[21]. - The operating cost for the reporting period was approximately 411.09 million yuan, down 31.45% from 599.65 million yuan year-on-year, also attributed to decreased pig sales[21]. - The company reported a net cash flow from operating activities of -46.83 million yuan, a significant decline of 362.95% compared to 17.81 million yuan in the previous year[21]. - The company reported a net loss for the first half of 2024 was CNY 8.41 million, compared to a net loss of CNY 73.82 million in the first half of 2023, indicating a significant improvement[80]. - The company's gross profit margin for the first half of 2024 was approximately -3.2%, compared to -7.5% in the same period of 2023[79]. Market and Industry Risks - The company reported significant risks related to feed raw material price fluctuations, which are influenced by market supply and demand, import policies, and logistics costs[2]. - The cyclical volatility of pig prices poses a risk to the company's profitability, with potential for substantial declines in operating performance if prices fall significantly[2]. - The occurrence of major animal diseases could lead to reduced pig production and increased breeding costs, impacting profitability and market demand[2]. - The competitive landscape is intensifying due to increased industry concentration and the exit of smaller players, making market development more challenging[2]. - The company is facing increased pressure from large group enterprises that are expanding their market share through intensive development strategies[2]. - The report indicates that the company is committed to addressing the risks associated with the cyclical nature of the pig farming industry and the potential for significant market fluctuations[2]. - The company identified risks related to fluctuations in feed raw material prices, which could significantly impact costs and profits[41]. - The company is addressing the cyclical volatility of pig prices, which could affect profitability and operational performance[42]. - The company is implementing measures to strengthen disease prevention and control systems to mitigate risks from major livestock diseases[43]. Operational Strategy - The company plans to maintain a unified management approach while decentralizing operations, which may affect the efficiency and sustainability of subsidiaries if not managed properly[3]. - The management highlighted the need for effective coordination and communication among subsidiaries to ensure consistent operational standards[3]. - The company aims to enhance its feed business and stabilize its pig farming operations while expanding its feed raw material trade[17]. - The company plans to develop its pig farming industry with a focus on standardization, intelligence, and scalability[17]. - The company plans to continue adjusting its trade business structure and expand the sales scale of feed raw materials to support the development of its feed and breeding industries[18]. - The company is focusing on improving internal management and operational efficiency to reduce breeding costs and enhance competitiveness[42]. - The company aims to expand market share by leveraging brand and research advantages while innovating marketing and service models[43]. - The company is conducting regular audits and inspections of subsidiaries to improve overall management and operational efficiency[43]. Investment and Financial Management - The company does not plan to distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[3]. - The company reported non-operating income of ¥4,827,921.65, primarily from government subsidies and asset disposals[15]. - Research and development investment increased by 19.95% to approximately 3.81 million yuan, compared to 3.17 million yuan in the previous year[21]. - Investment income amounted to CNY 6,356,049.79, accounting for 76.19% of total profit, primarily from the transfer of subsidiary equity[26]. - The company reported a significant increase in accounts receivable, which rose to CNY 50,246,725.42, representing 7.03% of total assets[27]. - The company reported a loss of 92,100 yuan from its futures hedging business during the reporting period[34]. - The company utilized futures market hedging to mitigate the risk of raw material price fluctuations, achieving its expected risk management goals[34]. - The company sold 100% equity of Tangshan Zhenghong Biological Feed Co., Ltd. for 9.44 million yuan, contributing a net profit of 644,820 yuan, which accounted for 77.29% of the total net profit[38]. Shareholder and Corporate Governance - The company emphasizes the protection of shareholder and creditor rights, ensuring transparent and timely information disclosure[51]. - The company has committed to not infringing on the interests of listed companies during its refinancing process, with a commitment period lasting until the completion of the stock issuance[53]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[55]. - The company reported no major litigation or arbitration matters during the reporting period[56]. - The total number of shares is 346,624,948, with 79,990,372 restricted shares and 266,634,576 unrestricted shares[64]. - The largest shareholder, Yueyang Guansheng Investment Development Co., Ltd., holds 23.08% of the shares, totaling 79,990,372 shares[65]. - The second-largest shareholder, Yueyang Guansheng Agricultural Technology Co., Ltd., holds 11.64% of the shares, totaling 40,341,811 shares, with 32,273,448 shares pledged[65]. - The third-largest shareholder, Yueyang Quyuan Agricultural Reclamation Co., Ltd., holds 7.70% of the shares, totaling 26,675,805 shares, with 13,300,000 shares frozen[65]. - The total number of common shareholders at the end of the reporting period is 36,236[66]. - There were no changes in the shareholding of directors, supervisors, and senior management during the reporting period[68]. Environmental and Regulatory Compliance - The company operates two pig farms, both classified as key pollutant discharge units, and has obtained pollution discharge permits valid until April 26, 2028[48]. - The wastewater treatment system at Hejishan Pig Farm has a daily processing capacity of 300 tons, utilizing a multi-stage treatment process[49]. - The company has established environmental management regulations and has personnel responsible for environmental oversight[49]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[50]. - The company plans to upgrade the environmental protection measures at Hejishan Pig Farm in the second half of 2024 to meet regulatory requirements[49]. Accounting and Financial Reporting - The company’s financial statements are prepared based on the principle of continuous operation[102]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[110]. - The company includes all subsidiaries under its control in the consolidated financial statements[112]. - The company measures revenue based on the transaction price allocated to each performance obligation, excluding amounts collected on behalf of third parties[169]. - The company recognizes contract assets and liabilities based on the relationship between performance obligations and customer payments, offsetting them to present net amounts[160]. - The company recognizes government grants related to income as deferred income, which is recognized in profit or loss when the related costs are incurred[173]. - The company reported a tax rate of 0% for several subsidiaries engaged in agricultural projects, allowing them to be exempt from corporate income tax[182]. - The corporate income tax rate for other subsidiaries is 20% or 25%, depending on their classification[183]. - The company benefits from tax incentives for small and micro enterprises, allowing a reduced tax rate of 20% on income not exceeding 1 million yuan[184]. - The company’s feed products are exempt from value-added tax, enhancing its competitive pricing[184].