百洋股份(002696) - 2024 Q2 - 季度财报

Part I Important Notes, Table of Contents, and Definitions This section covers important notes, the report's table of contents, reference documents, and key definitions Important Notes The Board and management guarantee report accuracy; forward-looking statements are not commitments; no profit distribution is planned - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[1] - Forward-looking statements regarding future plans in the report do not constitute substantial commitments to investors[1] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[1] Table of Contents This section lists the complete chapter structure of the 2024 semi-annual report, from important notes to financial reports Reference Documents This section lists documents available for inspection, including Board and Supervisory Board resolutions and signed financial statements - Reference documents include resolutions from the 11th meeting of the 6th Board of Directors and the 5th meeting of the 6th Supervisory Board[3] - Financial statements signed and sealed by the company's head, chief accountant, and head of accounting department are available for inspection[3] Definitions This section provides definitions for common terms and abbreviations, covering company names and industry certification standards - Company, the Company, Shareholding Company, Baiyang Shares, Group, and the Group all refer to Baiyang Industrial Investment Group Co., Ltd[4] - HACCP is a systematic approach to identify, assess, and control food safety hazards[4] - ACC's BAP certification represents the most stringent aquaculture standards developed by the Global Aquaculture Alliance (GAA)[4][5] Part II Company Profile and Key Financial Indicators This section provides the company's basic information and key financial performance indicators for the reporting period I. Company Profile This section provides the company's basic information, including stock details and official names Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Baiyang Shares | | Stock Code | 002696 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 百洋产业投资集团股份有限公司 | | Company's English Name | BAIYANG INVESTMENT GROUP, INC. | II. Contact Persons and Information This section lists contact details for the company's Board Secretary and Securities Affairs Representative Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liu Ying | No. 9 Gaoxin 4th Road, High-tech Development Zone, Nanning, Guangxi | 0771-3210585 | 0771-3210813 | ly@baiyang.com | | Securities Affairs Representative | Lin Xiaoqin | No. 9 Gaoxin 4th Road, High-tech Development Zone, Nanning, Guangxi | 0771-3210585 | 0771-3210813 | byzqb@baiyang.com | III. Other Information This section states that the company's key contact and disclosure information remained unchanged during the reporting period - The company's contact information remained unchanged during the reporting period, as detailed in the 2023 annual report[8] - Information disclosure and document storage locations remained unchanged during the reporting period, as detailed in the 2023 annual report[9] IV. Key Accounting Data and Financial Indicators This section presents H1 2024 key accounting data, showing a slight revenue decrease but significant net profit losses Key Accounting Data and Financial Indicators (H1 2024 vs. Prior Year Period) | Indicator | Current Period (CNY) | Prior Year Period (CNY) | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,224,590,194.27 | 1,233,706,203.24 | -0.74% | | Net Profit Attributable to Shareholders of Listed Company | -24,671,303.83 | 18,706,879.56 | -231.88% | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Items | -29,426,231.17 | 7,361,492.45 | -499.73% | | Net Cash Flow from Operating Activities | 96,713,266.41 | 158,080,727.41 | -38.82% | | Basic Earnings Per Share (CNY/share) | -0.07 | 0.05 | -240.00% | | Diluted Earnings Per Share (CNY/share) | -0.07 | 0.05 | -240.00% | | Weighted Average Return on Net Assets | -1.79% | 1.30% | -3.09% | | End of Current Period vs. End of Prior Year: | | | | | Total Assets | 3,039,370,871.66 | 2,973,962,804.48 | 2.20% | | Net Assets Attributable to Shareholders of Listed Company | 1,375,201,916.23 | 1,399,873,220.06 | -1.76% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section states no differences in net profit and net assets between domestic and overseas accounting standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[12] VI. Non-Recurring Gains and Losses and Amounts This section details non-recurring gains and losses, totaling CNY 4.75 million, primarily from government subsidies and asset disposals Non-Recurring Gains and Losses and Amounts (Unit: CNY) | Item | Amount | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 60,627.22 | | Government Subsidies Recognized in Current Profit/Loss | 3,603,513.96 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 865,329.39 | | Other Non-Operating Income and Expenses Apart from the Above | 873,157.14 | | Less: Income Tax Impact | 404,824.01 | | Impact on Minority Interests (After Tax) | 242,876.36 | | Total | 4,754,927.34 | - The company does not classify non-recurring gains and losses as recurring gains and losses[14] Part III Management Discussion and Analysis This section provides management's perspective on the company's operations, financial condition, and future outlook I. Main Businesses During the Reporting Period The company's main businesses include feed, aquatic product processing, biological products, and ocean fishing, providing traceable aquatic products - The company's businesses primarily include feed and feed raw materials, aquatic product processing and biological products, and ocean fishing and processing[15] - The company fully leverages the synergistic effects across its upstream and downstream supply chain to provide consumers with high-quality, safe, healthy, and fully traceable aquatic food ingredients[15] 1. Feed and Feed Raw Materials Business The feed business focuses on "product+technology+service" to enhance farmer profitability, with a focus on shrimp and special aquatic feeds - The feed business is strategically positioned as "product+technology+service" to enhance farmer profitability and become a professional aquaculture service provider[15] - Shrimp feed and special aquatic feed products are key categories the company will continue to focus on in the future[15] - The company strictly implements standardized, regulated, and professional management for all production and management processes in accordance with the ISO9001:2015 quality management system[18] 2. Aquatic Product Processing and Biological Products Business Aquatic product processing is primarily export-oriented (over 80%), focusing on traceable seafood, while biological products are derived from tilapia by-products - Aquatic product processing is primarily export-oriented, with exports accounting for over 80%, mainly frozen tilapia fillets and whole frozen tilapia[18][19] - Domestic sales have developed two product series, "Beifeng" and "Qiaoyujia", including pre-cooked dishes like non-marinated fish fillets and hotpot crispy fish fillets[19] - The company's biological product processing business develops collagen and gelatin series from fish skin and scales, widely used in health products, cosmetics, beverages, and food[20] 3. Ocean Fishing and Processing Business The ocean fishing and processing business in Mauritania catches non-deep-sea and economic fish, with products sold to European, domestic, and African markets - The ocean fishing and processing business is located in Mauritania, Africa, using owned and partner fleets to catch non-deep-sea and economic fish as raw materials[20] - Current products primarily include fishmeal, fish oil, and other economic fish, as well as cephalopod seafood products such as octopus, cuttlefish, and squid[21] - Fish oil and cephalopod seafood products are mainly sold to Europe, fishmeal supplements domestic aquatic feed demand, and other economic fish products are primarily sold in neighboring African markets[21] II. Analysis of Core Competencies The company's core competitiveness stems from its dual-core aquatic product processing and feed businesses, supported by its state-owned controlling shareholder - The company's dual-core businesses are aquatic product processing and feed/feed raw materials, continuously extending and expanding the industrial chain and product scope to maximize resource integration[23] - Qingdao Guoxin Group, as the controlling shareholder, provides strong empowerment and support to Baiyang Shares in terms of industry resources and capital[23] - The company has established a relatively complete aquatic industrial chain, driving the supporting feed industry through aquatic food processing and actively developing overseas ocean fishing and processing businesses[23] - The company has largely completed its business layout in the main tilapia producing areas (Guangdong, Guangxi, Hainan), possessing significant regional layout and scale advantages[23] - The company boasts a professional and highly loyal talent team, along with an elite technical R&D team comprising dozens of doctors and masters[24] - The company has established a comprehensive food safety and quality control system, certified by multiple standards including ISO9001, HACCP, BRC, BAP, and ASC (ASC-COC)[24] III. Analysis of Main Business H1 2024 saw a slight revenue decrease but significant net profit losses, driven by weak feed demand and increased impairment losses - In H1 2024, the company achieved total operating revenue of CNY 1.225 billion, a 0.74% decrease year-on-year[25] - Net profit attributable to shareholders of the listed company was -CNY 24.67 million, a 231.88% decrease year-on-year[25] 2024 H1 Main Business Revenue Composition and YoY Change | Category | Current Period Amount (CNY) | % of Operating Revenue | Prior Year Period Amount (CNY) | % of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | Feed Industry | 540,446,984.90 | 44.13% | 721,839,131.07 | 58.51% | -25.13% | | Food Processing Industry | 675,892,950.27 | 55.19% | 503,563,963.35 | 40.82% | 34.22% | | By Product | | | | | | | Feed | 435,503,740.00 | 35.56% | 590,973,836.94 | 47.90% | -26.31% | | Feed Raw Materials | 104,943,244.90 | 8.57% | 130,865,294.13 | 10.61% | -19.81% | | Aquatic Product Processing | 562,578,379.99 | 45.94% | 393,082,003.27 | 31.86% | 43.12% | | Ocean Fishing Seafood | 73,215,735.42 | 5.98% | 65,433,434.44 | 5.30% | 11.89% | | Biological Products | 40,098,834.86 | 3.27% | 45,048,525.64 | 3.65% | -10.99% | | By Region | | | | | | | Domestic | 635,791,678.95 | 51.92% | 809,291,299.72 | 65.60% | -21.44% | | International | 588,798,515.32 | 48.08% | 424,414,903.52 | 34.40% | 38.73% | 2024 H1 Key Financial Indicators YoY Change | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Administrative Expenses | 47,929,518.19 | 54,760,155.70 | -12.47% | Decreased remuneration | | R&D Investment | 1,413,920.28 | 971,119.58 | 45.60% | Increased R&D projects | | Financial Expenses | 402,367.59 | 7,465,838.79 | -94.61% | Increased interest income and RMB appreciation exchange gains | | Credit Impairment Losses | -24,811,949.98 | -6,268,937.97 | 295.79% | Increased provision for accounts receivable impairment | | Net Cash Flow from Operating Activities | 96,713,266.41 | 158,080,727.41 | -38.82% | Increased payments for goods purchased | IV. Analysis of Non-Core Businesses Non-core businesses impacted total profit, with asset impairment (mainly receivables and inventory) being the largest factor at 95.54% Impact of Non-Core Businesses on Total Profit (Unit: CNY) | Item | Amount | % of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 749,692.06 | -2.59% | Increased operating efficiency of associate companies | Yes | | Asset Impairment | -27,679,034.51 | 95.54% | Provision for accounts receivable impairment and inventory write-downs | Yes | | Non-Operating Income | 1,116,965.74 | -3.86% | Collection of liquidated damages from sued customers | No | | Non-Operating Expenses | 243,808.60 | -0.84% | Asset losses incurred by subsidiaries due to natural disasters | No | | Other Income | 9,603,806.84 | -33.13% | Government grants received | Yes | V. Analysis of Assets and Liabilities Total assets increased by 2.20%, with a shift towards short-term borrowings and significant overseas assets in Mauritania - Total assets at the end of the reporting period were CNY 3.039 billion, a 2.20% increase from the end of the prior year[11] Changes in Asset and Liability Composition (Unit: CNY) | Item | Amount at End of Current Period | % of Total Assets | Amount at End of Prior Year | % of Total Assets | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 709,660,524.86 | 23.35% | 620,492,636.72 | 20.86% | 2.49% | | Short-term Borrowings | 673,545,535.10 | 22.16% | 530,429,221.08 | 17.84% | 4.32% | | Long-term Borrowings | 62,750,000.00 | 2.06% | 209,121,000.00 | 7.03% | -4.97% | - The main overseas asset is an 88% equity stake in Risheng Ocean, with an asset size of CNY 298.06 million, accounting for 20.30% of the company's net assets[33] - Total restricted asset rights at period-end amounted to CNY 161.87 million, including cash and cash equivalents, fixed assets, construction in progress, and intangible assets[34] VI. Analysis of Investment Status Total investment decreased by 63.56%; the aquatic processing project progressed, and forward foreign exchange hedging resulted in a negative return Investment Amount During the Reporting Period | Indicator | Investment Amount Current Period (CNY) | Investment Amount Prior Year Period (CNY) | % Change | | :--- | :--- | :--- | :--- | | Investment Amount | 14,678,137.17 | 40,279,787.56 | -63.56% | - The Baiyang Aquatic Product Integrated Processing Project has a cumulative actual investment of CNY 81.31 million, with a project progress of 65.92%[36] - The company's forward foreign exchange hedging business, aimed at mitigating exchange rate fluctuation risks, recorded a loss of CNY 0.56 million in the current reporting period[40] - The company has established a "Foreign Exchange Hedging Business Management System," explicitly prohibiting purely speculative activities and implementing multi-level risk control measures[41] VII. Major Asset and Equity Disposals The company did not undertake any major asset or equity disposal during the reporting period - The company did not dispose of any major assets during the reporting period[44] - The company did not dispose of any major equity during the reporting period[45] VIII. Analysis of Major Holding and Associate Companies Several subsidiaries faced increased losses due to declining sales, rising costs, and reduced government subsidies, while Risheng Ocean also saw slight decreases in revenue and net profit Overview of Major Subsidiary Financial Performance (Unit: CNY) | Company Name | Operating Revenue | Net Profit | YoY Change in Operating Revenue (%) | YoY Change in Net Profit (%) | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangxi Baiyue Animal Husbandry Development Co., Ltd. | 182,646,811.43 | -18,581,735.76 | -27.99% | 2,086.11% (Increased loss) | Decreased livestock and poultry feed sales, increased accounts receivable impairment | | Hainan Baiyang Feed Co., Ltd. | 79,221,783.77 | -3,599,674.07 | 6.28% | 2,262.01% (Increased loss) | Increased accounts receivable impairment, capitalization of project loan interest | | Guangxi Baijia Food Co., Ltd. | 94,800,318.30 | -4,993,691.66 | -13.42% | 335.24% (Increased loss) | Decreased export volume, increased raw material prices and sea freight leading to lower gross margin | | Risheng Ocean Resources Development Co., Ltd. | 110,884,675.31 | 9,960,850.17 | -4.78% | -2.23% | Impact of product structure changes | | Rongcheng Rixin Marine Biotechnology Co., Ltd. | 112,627,652.54 | 2,487,823.81 | 2.65% | -8.10% | Increased raw material prices leading to lower gross margin | | Guangxi Xiangheshun Ocean Fishing Co., Ltd. | 6,450,734.57 | -6,990,705.22 | 66.03% | 233.85% (Increased loss) | Decreased government grants and exchange gains year-on-year | | Jingzhou Baiyang Feed Co., Ltd. | 16,770,645.61 | -5,083,845.58 | -31.24% | 65.60% (Increased loss) | Impact of product structure changes leading to lower gross profit | IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[48] X. Risks Faced by the Company and Countermeasures The company faces market, credit, and operational risks, addressed by market monitoring, financial tools, and quality control - The feed and aquatic food processing businesses face risks from raw material and product price fluctuations, rising labor costs, RMB exchange rate volatility, food quality and safety control, and disasters and diseases[48][49] - The ocean fishing and processing business faces resource risks (catch volume affected by climate, overfishing, government bans), exchange rate fluctuation risks (settlement in USD, EUR), and natural disaster risks (fishing vessel operations affected by typhoons)[49][50] - The company addresses risks by closely monitoring market dynamics, expanding sales channels, utilizing financial instruments, strengthening quality control systems, and building disease prevention and control systems[48][49][50] XI. Implementation of 'Quality and Return Dual Enhancement' Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the 'Quality and Return Dual Enhancement' action plan[51] Part IV Corporate Governance This section details the company's corporate governance, including shareholder meetings, personnel changes, and incentive plans I. Information on Annual and Extraordinary General Meetings Held During the Reporting Period The company held its 2024 first extraordinary and 2023 annual general meetings, with investor participation rates of 43.19% and 43.12% respectively Shareholder Meetings During the Reporting Period | Session | Meeting Type | Investor Participation Rate | Date Held | | :--- | :--- | :--- | :--- | | First Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 43.19% | January 12, 2024 | | 2023 Annual General Meeting | Annual General Meeting | 43.12% | May 20, 2024 | II. Changes in Directors, Supervisors, and Senior Management Multiple changes occurred in the company's directors, supervisors, and senior management, including resignations and new appointments - Hu Xin resigned from the positions of Deputy General Manager, Chief Financial Officer, and Board Secretary due to work adjustments[53] - Liu Kang resigned from the position of General Manager due to work adjustments[53] - Liu Ying was appointed as Executive Deputy General Manager and Board Secretary[53] - Sun Lihai was appointed as General Manager[53] III. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[54] IV. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[54] Part V Environmental and Social Responsibility This section outlines the company's environmental compliance, social responsibility initiatives, and stakeholder protection efforts I. Major Environmental Issues The company and its subsidiaries comply with environmental regulations, operate treatment facilities, and incurred no penalties, with one subsidiary no longer a key pollutant emitter - The company and its subsidiaries are classified as key pollutant-discharging entities by environmental protection authorities[55] - Subsidiaries such as Mingyang Gelatin, Guangdong Yujia, and Hainan Jiadexin have self-built and operational wastewater and exhaust gas treatment facilities, with compliant discharge indicators[59][60] - Emergency response plans for environmental incidents of all subsidiaries have been filed with local environmental authorities[61] - In H1 2024, Mingyang Gelatin, Guangdong Yujia, and Hainan Jiadexin collectively paid CNY 16,234.18 in environmental protection taxes[61] - The company received no administrative penalties for environmental issues during the reporting period[62] - Subsidiary Guangxi Baijia Food Co., Ltd. is no longer classified as a key pollutant-discharging entity[62] II. Social Responsibility The company actively fulfills social responsibilities by protecting stakeholder rights, ensuring food safety, promoting rural development, and engaging in public welfare - The company consistently prioritizes protecting shareholders' legitimate rights and interests in all business and management activities, standardizing shareholder meetings, safeguarding the rights of small and medium investors, and enhancing information disclosure quality[63] - The company strictly adheres to labor laws and regulations, highly values employee rights protection, fosters a positive work environment, and conducts regular safety inspections and training[63] - The company is founded on respecting and protecting consumer rights, having established a comprehensive product traceability system through multi-level quality control certifications such as ISO9001, HACCP, BRC, and BAP (ACC)[63] - The company promotes rural economic development and helps farmers prosper through aquaculture via its "company + base + farmer" linkage mechanism[63] - The company develops fishmeal, fish oil, and other products from tilapia processing by-products, forming a circular aquaculture economy model, and highly prioritizes environmental protection, ensuring stable and compliant wastewater discharge[63][64] - The company is committed to integrity building, strengthening contract and credit management, paying taxes honestly according to law, and actively participating in social welfare initiatives[64] Part VI Significant Events This section covers commitments, related party transactions, guarantees, and other significant events during the reporting period I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period No commitments by related parties or the company were fulfilled or overdue and unfulfilled during the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[65] II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company No non-operating funds were occupied by the controlling shareholder or other related parties from the listed company during the reporting period - During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties from the listed company[65] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[65] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[65] V. Board of Directors' and Supervisory Board's Explanations on 'Non-Standard Audit Report' for the Current Period This section is not applicable as the company's semi-annual report was not audited, thus no non-standard audit report exists VI. Board of Directors' Explanations on 'Non-Standard Audit Report' for the Prior Year This section is not applicable as no non-standard audit report existed for the company in the prior year VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[65] VIII. Litigation Matters The company had no major litigation, arbitration, or other litigation matters during the reporting period - The company had no major litigation or arbitration matters during the current reporting period[65] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[66] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller This section is not applicable XI. Major Related Party Transactions The company engaged in related party transactions for operations, including sales, purchases, and significant debt with Guoxin Group Related Party Transactions Related to Ordinary Operations (Sales of Products/Provision of Services) | Related Party | Related Transaction Content | Amount Incurred Current Period (CNY 10,000) | % of Similar Transactions | Approved Transaction Limit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | | PROMETEX.S.A.M. | Sales of Products | 1,708.77 | 23.34% | 8,500 | | Guoxin Zhongchuan (Qingdao) Marine Technology Co., Ltd. | Sales of Feed and Provision of Services | 73.69 | 0.17% | 1,500 | | Guoxin (Taizhou) Fishery Co., Ltd. | Sales of Goods and Provision of Services | 145.96 | 0.34% | 500 | Related Party Debt and Credit Transactions (Payables to Related Parties) | Related Party | Reason for Formation | Beginning Balance (CNY 10,000) | Amount Added Current Period (CNY 10,000) | Amount Repaid Current Period (CNY 10,000) | Interest Rate | Interest Current Period (CNY 10,000) | Ending Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Guoxin Group | Entrusted Loan | 10,009.62 | 149 | 178.01 | 2.95% | 149 | 9,980.61 | | Guoxin Group | Entrusted Loan | 20,018.64 | 298.07 | 372.82 | 2.95% | 298.07 | 19,943.89 | | Guoxin Group | Consolidated Borrowing and Repayment | | 1,905.59 | 4.13 | 2.90% | 5.59 | 1,901.46 | | Guoxin Group | Consolidated Borrowing and Repayment | | 5,965.41 | 10.77 | 2.90% | 15.41 | 5,954.64 | - During the reporting period, the company did not engage in related party transactions involving asset or equity acquisitions/disposals, nor did it undertake joint external investment related party transactions[70][71] XII. Major Contracts and Their Performance The company engaged in leasing activities and provided significant guarantees for subsidiaries, totaling CNY 188.80 million, but had no entrusted wealth management or other major contracts Leasing by the Group as Lessee (Unit: CNY) | Item | Amount Incurred Current Period | Amount Incurred Prior Period | | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 554,313.28 | 614,290.69 | | Short-term Lease Expenses Recognized in Current Profit/Loss Using Simplified Treatment | 569,518.01 | 559,527.27 | | Total Cash Outflow Related to Leases | 2,788,685.99 | 2,705,160.43 | Leasing Income by the Group as Lessor (Unit: CNY) | Item | Lease Income | | :--- | :--- | | Lease Income | 2,945,311.93 | - The company's guarantees for subsidiaries show a total actual guarantee balance of CNY 184.00 million at the end of the reporting period, accounting for 13.73% of the company's net assets[86][90] - The company had no entrusted wealth management or other major contracts during the reporting period[91] XIII. Explanation of Other Significant Matters No other significant matters requiring explanation occurred during the company's reporting period - The company had no other significant matters requiring explanation during the reporting period[91] XIV. Significant Matters of Company Subsidiaries No significant matters concerning the company's subsidiaries occurred during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[91] Part VII Share Changes and Shareholder Information This section details changes in share capital, shareholder structure, and related party shareholdings I. Share Change Information Total shares remained unchanged, but restricted shares decreased by 597,279 due to the lifting of lock-up restrictions on management shares Share Change Information (Unit: Shares) | Category | Quantity Before This Change | % | Increase/Decrease in This Change (+, -) (Other) | Subtotal | Quantity After This Change | % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,820,593 | 0.81% | -597,279 | -597,279 | 2,223,314 | 0.64% | | II. Unrestricted Shares | 343,541,669 | 99.19% | 597,279 | 597,279 | 344,138,948 | 99.36% | | III. Total Shares | 346,362,262 | 100.00% | 0 | 0 | 346,362,262 | 100.00% | - All 597,279 restricted shares held by Yi Zexi (director, supervisor, or senior management) were released from lock-up on February 7, 2024[93] II. Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[94] III. Shareholder Numbers and Shareholding At period-end, the company had 16,548 common shareholders, with Qingdao Guoxin entities as controlling shareholders and Zhejiang Ningju funds acting in concert with a former controlling shareholder - At the end of the reporting period, the total number of common shareholders was 16,548[95] Top 10 Common Shareholders' Shareholding at Period-End (Unit: Shares) | Shareholder Name | Shareholder Nature | Shareholding % | Number of Common Shares Held at Period-End | Number of Unrestricted Common Shares Held | | :--- | :--- | :--- | :--- | :--- | | Qingdao Ocean Innovation Industry Investment Fund Co., Ltd. | Domestic Non-State-Owned Legal Person | 17.00% | 58,881,390 | 58,881,390 | | Qingdao Guoxin Innovation Equity Investment Management Co., Ltd. – Qingdao Marine New Kinetic Energy Industry Investment Fund (Limited Partnership) | Other | 13.16% | 45,597,071 | 45,597,071 | | Zhejiang Ningju Investment Management Co., Ltd. – Ningju Kaiyang No. 13 Private Securities Investment Fund | Other | 5.31% | 18,374,520 | 18,374,520 | | Zhejiang Ningju Investment Management Co., Ltd. – Ningju Kaiyang No. 12 Private Securities Investment Fund | Other | 3.80% | 13,170,000 | 13,170,000 | | Zhejiang Ningju Investment Management Co., Ltd. – Ningju Kaiyang No. 11 Private Securities Investment Fund | Other | 3.80% | 13,170,000 | 13,170,000 | | Zhou Shuang | Domestic Natural Person | 3.22% | 11,161,560 | 11,161,560 | | Beixin Ruifeng Fund – ICBC – Fulitian Ruihuashang Investment Management Co., Ltd. – Fulitian Ruihuashang Fenghuangshan No. 6 Private Investment Fund | Other | 2.29% | 7,927,791 | 7,927,791 | | Zhao Jiqing | Domestic Natural Person | 1.80% | 6,251,000 | 6,251,000 | | Zhou Yuguang | Domestic Natural Person | 1.22% | 4,239,382 | 4,239,382 | | Ouyang Dunqing | Domestic Natural Person | 1.14% | 3,962,100 | 3,962,100 | - Qingdao Ocean Innovation Industry Investment Fund Co., Ltd. and Qingdao Guoxin Innovation Equity Investment Management Co., Ltd. – Qingdao Marine New Kinetic Energy Industry Investment Fund (Limited Partnership) are the company's controlling shareholders, ultimately controlled by the Qingdao Municipal State-owned Assets Supervision and Administration Commission[97] - The three private securities investment funds under Zhejiang Ningju Investment Management Co., Ltd. are acting in concert with Mr. Sun Zhongyi, the company's former controlling shareholder[97] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management No changes occurred in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[100] V. Changes in Controlling Shareholder or Actual Controller Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[101] - The company's actual controller did not change during the reporting period[101] Part VIII Preferred Shares Information This section confirms that the company had no preferred shares during the reporting period Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[102] Part IX Bonds Information This section confirms that the company had no bond-related information during the reporting period Bonds Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[103] Part X Financial Report This section presents the company's unaudited consolidated and parent company financial statements for H1 2024 I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[104] II. Financial Statements This section provides the company's H1 2024 consolidated and parent company financial statements, reflecting period-end financial status, operating results, and cash flows 1. Consolidated Balance Sheet As of June 30, 2024, consolidated total assets were CNY 3.039 billion, liabilities CNY 1.571 billion, and parent equity CNY 1.375 billion Consolidated Balance Sheet Key Data (Unit: CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 3,039,370,871.66 | 2,973,962,804.48 | | Total Liabilities | 1,570,911,281.90 | 1,481,337,079.80 | | Total Equity Attributable to Parent Company Owners | 1,375,201,916.23 | 1,399,873,220.06 | | Total Equity | 1,468,459,589.76 | 1,492,625,724.68 | 2. Parent Company Balance Sheet As of June 30, 2024, parent company total assets were CNY 2.545 billion, liabilities CNY 1.385 billion, and equity CNY 1.160 billion Parent Company Balance Sheet Key Data (Unit: CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Total Assets | 2,544,972,657.90 | 2,571,094,174.65 | | Total Liabilities | 1,384,551,181.66 | 1,410,975,898.35 | | Total Equity | 1,160,421,476.24 | 1,160,118,276.30 | 3. Consolidated Income Statement In H1 2024, consolidated total operating revenue was CNY 1.225 billion, with a net loss of CNY 24.17 million Consolidated Income Statement Key Data (Unit: CNY) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Total Operating Revenue | 1,224,590,194.27 | 1,233,706,203.24 | | Operating Profit | -29,864,742.71 | 16,953,593.29 | | Total Profit | -28,991,585.57 | 17,724,590.77 | | Net Profit | -24,166,134.92 | 22,511,571.47 | | Net Profit Attributable to Parent Company Shareholders | -24,671,303.83 | 18,706,879.56 | | Basic Earnings Per Share | -0.07 | 0.05 | 4. Parent Company Income Statement In H1 2024, parent company operating revenue was CNY 199 million, achieving a net profit of CNY 0.30 million Parent Company Income Statement Key Data (Unit: CNY) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Operating Revenue | 198,986,365.36 | 202,956,016.92 | | Operating Profit | 152,328.97 | -5,978,718.36 | | Total Profit | 184,978.04 | -5,865,641.39 | | Net Profit | 303,199.94 | -4,693,888.31 | 5. Consolidated Cash Flow Statement In H1 2024, consolidated net cash flow from operating activities decreased by 38.82% to CNY 96.71 million, with a net increase in cash and cash equivalents of CNY 91.34 million Consolidated Cash Flow Statement Key Data (Unit: CNY) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 96,713,266.41 | 158,080,727.41 | | Net Cash Flow from Investing Activities | -33,528,464.11 | -34,630,443.09 | | Net Cash Flow from Financing Activities | 20,311,366.49 | 74,825,416.87 | | Net Increase in Cash and Cash Equivalents | 91,342,264.61 | 199,095,643.12 | | Cash and Cash Equivalents Balance at Period-End | 709,560,524.86 | 496,359,850.47 | 6. Parent Company Cash Flow Statement In H1 2024, parent company net cash flow from operating activities turned negative, while financing activities shifted to a net inflow, resulting in a CNY 35.94 million net increase in cash and cash equivalents Parent Company Cash Flow Statement Key Data (Unit: CNY) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -29,048,073.91 | 58,193,738.22 | | Net Cash Flow from Investing Activities | -153,747,874.10 | 124,162,769.05 | | Net Cash Flow from Financing Activities | 218,737,061.15 | -53,352,795.86 | | Net Increase in Cash and Cash Equivalents | 35,941,513.46 | 129,006,585.70 | | Cash and Cash Equivalents Balance at Period-End | 474,869,813.44 | 262,949,638.62 | 7. Consolidated Statement of Changes in Equity In H1 2024, consolidated total equity decreased from CNY 1.493 billion to CNY 1.468 billion, mainly due to a CNY 24.17 million comprehensive loss - Total equity attributable to parent company owners at period-end was CNY 1.375 billion, compared to CNY 1.399 billion at the beginning of the period[107][122] - Total comprehensive income for the current period was -CNY 24.17 million[121] 8. Parent Company Statement of Changes in Equity In H1 2024, parent company total equity increased from CNY 1.1601 billion to CNY 1.1604 billion, driven by a CNY 0.30 million comprehensive income - Total parent company equity at period-end was CNY 1.1604 billion, compared to CNY 1.1601 billion at the beginning of the period[111][127] - Total comprehensive income for the current period was CNY 0.30 million[126] III. Company Basic Information Established in 2000, Baiyang Industrial Investment Group operates in agriculture, feed, aquatic processing, and ocean fishing, with 23 subsidiaries as of June 30, 2024 - Baiyang Industrial Investment Group Co., Ltd., established on April 19, 2000, has its RMB ordinary A-shares listed on the Shenzhen Stock Exchange[130] - The company operates in the agriculture, forestry, animal husbandry, and fishery sectors, primarily engaged in feed and feed raw material production, aquatic product processing, and ocean fishing[130] - As of June 30, 2024, the Group's consolidated financial statements include the parent company and 23 subsidiaries[130] IV. Basis of Financial Statement Preparation Financial statements are prepared under Enterprise Accounting Standards and CSRC disclosure requirements, on a going concern basis, ensuring accurate reflection of financial status - The Group's financial statements are prepared based on actual transactions and events, in accordance with the 'Enterprise Accounting Standards' issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[133] - The Group has a history of profitable operations and financial resources to support it, thus considering the preparation of financial statements on a going concern basis to be reasonable[134] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, covering key financial areas and confirming compliance with accounting standards - These financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting the financial position of the Company and the Group as of June 30, 2024, and the operating results and cash flows for January-June 2024[136] - Specific accounting policies and estimates formulated by the Group based on its operational characteristics include impairment provisions for receivables, inventory write-downs, depreciation of fixed assets, amortization of intangible assets, and revenue recognition and measurement[135] Expected Credit Loss Provision Ratios for Accounts Receivable by Aging | Aging | Within 1 year | 1-2 years | 2-3 years | Over 3 years | | :--- | :--- | :--- | :--- | :--- | | Expected Credit Loss Rate | 5% | 10% | 30% | 100% | Fixed Asset Depreciation Methods and Useful Lives | Category | Depreciation Method | Useful Life (Years) | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 3-58 | 0-10% | 1.64%-33.33% | | Machinery and Equipment | Straight-line method | 2-30 | 0-5% | 3.17%-47.5% | | Transportation Equipment | Straight-line method | 3-10 | 0-10% | 9%-33.33% | | Electronic Equipment | Straight-line method | 3-30 | 0-10% | 3.33%-33.33% | | Other Equipment | Straight-line method | 3-30 | 0-5% | 3.17%-33.33% | - Revenue is recognized when the customer obtains control of the related goods or services; domestic sales revenue is recognized upon delivery to the customer, while export sales revenue is recognized based on trade terms, export customs declarations, and ocean bills of lading[170][171] VI. Taxation This section details the company's applicable tax types and rates, including VAT and corporate income tax, and highlights various tax incentives enjoyed by the company and its subsidiaries Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable sales amount | 0%、1%、5% 、6%、 9%、13% | | Corporate Income Tax | Taxable turnover | 7%、15%、16.5% 、20%、 25% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | Hainan Baiyang, Jiadexin, Baiwei Bio, Yujia Food, Foshan Baiyang, Baijia Food, Baiyang Aquatic | 15% | | Hong Kong Baiyang | 16.50% | | Risheng Ocean | 7.00% | | Baifeng Feed | 20% | - The company's feed products and ocean fishing income are exempt from VAT; small-scale taxpayers receive VAT reductions[181] - Several subsidiaries enjoy corporate income tax benefits due to high-tech enterprise qualifications, Hainan Free Trade Port policies, inclusive policies for small and micro enterprises, primary agricultural product processing projects, and self-caught fish income[182][183][184] - The company also benefits from exemption policies for education surcharges, local education surcharges, and water conservancy construction funds[185] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for consolidated financial statement items, including balances, changes, and explanations for assets, liabilities, and equity - Total cash and cash equivalents at period-end amounted to CNY 709.66 million, of which CNY 8.76 million was held overseas[187] - Accounts receivable book balance at period-end was CNY 830.83 million, with bad debt provisions of CNY 324.48 million, and CNY 25.36 million in bad debt provisions recognized in the current period[192][194][198] - Total inventory at period-end was CNY 382.52 million, with inventory write-downs and contract performance cost impairment provisions totaling CNY 9.08 million[211] - Fixed assets book value at period-end was CNY 696.27 million, with an increase in depreciation of CNY 46.18 million in the current period[220] - Construction in progress book value at period-end was CNY 81.52 million, with the Baiyang Aquatic Product Integrated Processing Project at 51.30% completion[223][224] - Total short-term borrowings at period-end were CNY 673.55 million, total long-term borrowings CNY 62.75 million, and total long-term payables CNY 358.50 million[240][252][254] - Total operating revenue for the current period was CNY 1.225 billion, total operating costs CNY 1.237 billion, and net profit was -CNY 24.17 million[111] VIII. Research and Development Expenses Total R&D expenses for the reporting period were CNY 1.41 million, all expensed, focusing on high-value protein utilization and green aquatic processing technology R&D Expenses (Unit: CNY) | Item | Amount Incurred Current Period | Amount Incurred Prior Period | | :--- | :--- | :--- | | Research on High-Value Utilization of Protein Extracted from Fish Gelatin Residue | 988,222.55 | | | Promotion and Demonstration of Green Aquatic Product Processing and Circulation Technology | 379,271.07 | | | Research and Demonstration of Automated Intelligent Fish Processing Technology | | 701,064.49 | | Research on Directed Enzymatic Hydrolysis Extraction Process for Tilapia Collagen | | 172,249.29 | | Other Minor Projects | 46,426.66 | 97,805.80 | | Total | 1,413,920.28 | 971,119.58 | - All R&D expenses for the current period were expensed, totaling CNY 1.41 million[282] IX. Changes in Consolidation Scope The company's consolidation scope changed due to the establishment of Nanning Baiyang Biotechnology Co., Ltd. with CNY 30 million registered capital - On April 22, 2024, the company established a new wholly-owned subsidiary, Nanning Baiyang Biotechnology Co., Ltd., with a registered capital of CNY 30 million[282] X. Interests in Other Entities This section details the company's interests in 23 subsidiaries and important joint/associate ventures, covering diverse business activities - The company's consolidated financial statements include the parent company and 23 subsidiaries, with business activities covering feed processing and sales, aquatic product processing and sales, biological product processing and sales, and ocean fishing[130][132][283] Significant Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding % | Profit/Loss Attributable to Minority Shareholders Current Period (CNY) | Minority Interests Balance at Period-End (CNY) | | :--- | :--- | :--- | :--- | | Baiwei Bio | 49.07% | 504,160.10 | 51,446,387.30 | | Risheng Ocean | 12.00% | 1,195,302.02 | 32,263,311.56 | Significant Associate Companies | Joint Venture or Associate Company Name | Principal Place of Business | Nature of Business | Shareholding % (Direct) | | :--- | :--- | :--- | :--- | | Guangxi Hongshengyuan Environmental Protection Co., Ltd. | Nanning, Guangxi | Environmental Engineering | 47.11% | | PROMETEX S.A.M. | Principality of Monaco | Sales | 44.67% | | Qingdao Guoxin Baiyang Aquatic Industry Development Fund Partnership (Limited Partnership) | Qingdao, Shandong | Business Services | 40.00% | XI. Government Grants Government grants in deferred income totaled CNY 60.54 million at period-end, with CNY 9.93 million recognized in current profit/loss Government Grant-Related Liabilities (Unit: CNY) | Account | Beginning Balance | Amount of New Grants Current Period | Amount Transferred to Other Income Current Period | Period-End Balance | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 64,315,905.00 | 2,786,200.00 | 6,563,307.38 | 60,538,797.62 | | | Overseas Base Construction Project for Ocean Fishing | 39,217,272.63 | | 2,645,040.12 | 36,572,232.51 | Asset Related | | Ocean Fishing Vessel Renovation Project | 7,150,000.00 | | 2,100,000.00 | 5,050,000.00 | Asset Related | | Agricultural Development Incentive Funds | 4,916,666.67 | 2,786,200.00 | 182,865.50 | 7,520,001.17 | Asset Related | Government Grants Recognized in Current Profit/Loss (Unit: CNY) | Account | Amount Incurred Current Period | Amount Incurred Prior Period | | :--- | :--- | :--- | | Other Income | 9,603,806.84 | 27,174,561.73 | | Financial Expenses | 325,337.00 | 520,784.26 | | Total | 9,929,143.84 | 27,695,345.99 | XII. Risks Related to Financial Instruments The company manages market, credit, and liquidity risks through policies like hedging, floating-rate borrowings, credit limits, and monitoring bank facilities - The Group faces market risks (such as exchange rate risk, interest rate risk, and commodity price risk), credit risk, and liquidity risk in its daily operations[290] - Exchange rate risk primarily relates to USD, EUR, HKD, and Ouguiya, managed by closely monitoring exchange rate fluctuations and timely introducing foreign currency financial instruments[291] - Interest rate risk primarily arises from interest-bearing debts such as bank borrowings, which the company manages by maintaining floating-rate borrowings to eliminate fair value risk from interest rate changes[291][292] - Credit risk primarily arises from cash and cash equivalents, notes receivable, accounts receivable, and other receivables, which the company mitigates through credit limits, approval, and monitoring procedures[292] - Liquidity risk is managed by monitoring bank borrowing utilization, adhering to loan agreements, and engaging in financing discussions with financial institutions[292] Financial Asset Transfer Information (Unit: CNY) | Transfer Method | Nature of Financial Assets Transferred | Amount of Financial Assets Transferred | Derecognition Status | | :--- | :--- | :--- | :--- | | Bill Endorsement/Bill Discounting | Notes Receivable | 418,752.00 | Not Derecognized | | Bill Endorsement/Bill Discounting | Notes Receivable | 286,390.00 | Derecognized | | Total | | 705,142.00 | | XIII. Related Parties and Related Party Transactions This section details the company's related parties and transactions, including sales, purchases, leases, guarantees, and significant intercompany borrowings with Guoxin Group - The company's related parties include subsidiaries, associate companies (e.g., Guangxi Hongshengyuan Environmental Protection Co., Ltd., PROMETEX S.A.M.), and entities controlled by the controlling shareholder's parent company (e.g., Qingdao Guoxin Development (Group) Co., Ltd.)[295][296] Related Party Transactions for Goods Sales/Purchases and Service Provision/Acceptance (Amount Incurred Current Period, Unit: CNY) | Related Transaction Type | Amount Incurred Current Period | | :--- | :--- | | Total Purchases of Goods/Acceptance of Services | 2,386,952.07 | | Total Sales of Goods/Provision of Services | 43,455,348.64 | - As