立华股份(300761) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions 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] - 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] - 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][426] Company Profile and Key Financial Indicators 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 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 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 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 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 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 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] - 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][443] Market Position and Performance Drivers 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] 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 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] - 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][32][49] Core Competitiveness Analysis 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][74] - 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][141] - 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][143] - The company utilizes intelligent software, IoT, and big data analytics to enhance management efficiency and precision[144] Main Business Analysis 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 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 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] - 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] - 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] 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 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 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][94] Entrusted Wealth Management, Derivative Investments, and Entrusted Loans 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 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 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][175][177][156] - 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][157][158] Corporate Governance 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 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 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 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] - 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][216] Environmental and Social Responsibility 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 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][221][196] - 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] - 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] Social Responsibility 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] - 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][44] Significant Matters 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 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] - 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][258] Significant Related-Party Transactions 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 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] Share Changes and Shareholder Information 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 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 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] 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 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] Preferred Shares Information 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] Bonds Information 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] Financial Report 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 The company's 2024 half-year financial report is unaudited - The company's half-year financial report is unaudited[310] Financial Statements 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 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 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 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 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] - The financial statements are prepared on a going concern basis and comply with enterprise accounting standards[368][402] - 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][685] - 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][796]