粤海饲料(001313) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report structure, and defines key terms for clarity Important Notice The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report, assuming legal responsibility. Forward-looking statements do not constitute substantive commitments, and the company plans no cash dividends, bonus shares, or capital reserve conversions - Company management guarantees the truthfulness, accuracy, and completeness of the report content[2] - The company's 2024 semi-annual profit distribution plan is to not distribute cash dividends, bonus shares, or convert capital reserves into share capital[2] Definitions This chapter defines key terms used throughout the report, including company entities, reporting period, financial terminology, major shareholders, and subsidiaries, providing a foundational understanding of the report's content - The reporting period (this period) refers to January 1, 2024, to June 30, 2024[5] - The company's main business is special aquatic feed and general aquatic feed, with special aquatic feed targeting high-value species and general aquatic feed targeting common freshwater fish[5] Company Profile and Key Financial Indicators This section introduces the company's basic information and presents a summary of its key financial performance and position for the reporting period Company Profile Guangdong Yuehai Feed Group Co., Ltd. (Stock Abbreviation: Yuehai Feed, Code: 001313) is a company listed on the Shenzhen Stock Exchange, with Zheng Shixuan as its legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Yuehai Feed | | Stock Code | 001313 | | Listing Exchange | Shenzhen Stock Exchange | | Full Company Name | Guangdong Yuehai Feed Group Co., Ltd. | | Legal Representative | Zheng Shixuan | Key Accounting Data and Financial Indicators In the first half of 2024, the company's operating performance significantly declined, with revenue decreasing by 16.13% year-on-year, net loss attributable to shareholders widening to $47.98 million, and net cash flow from operating activities decreasing by 45.62%, indicating significant pressure on revenue and profitability 2024 Semi-Annual Key Financial Indicators | Indicator | Current Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (USD) | 2,363.18 million | 2,817.68 million | -16.13% | | Net Profit Attributable to Shareholders (USD) | -47.98 million | -34.99 million | -37.10% | | Net Profit Excluding Non-recurring Items (USD) | -54.70 million | -42.17 million | -29.70% | | Net Cash Flow from Operating Activities (USD) | -147.13 million | -101.03 million | -45.62% | | Basic Earnings Per Share (USD/share) | -0.07 | -0.05 | -40.00% | | Weighted Average Return on Net Assets | -1.80% | -1.27% | -0.53% | | Total Assets (USD) | 4,785.16 million | 4,635.27 million | 3.23% (vs. end of prior year) | | Net Assets Attributable to Shareholders (USD) | 2,590.04 million | 2,729.72 million | -5.12% (vs. end of prior year) | Non-recurring Gains and Losses and Amounts During the reporting period, the company's non-recurring gains and losses totaled $6.72 million, primarily from government subsidies ($8.55 million) and entrusted wealth management income ($1.72 million), partially offset by debt restructuring losses ($-2.07 million) Non-recurring Gains and Losses Details | Item | Amount (USD) | | :--- | :--- | | Government subsidies recognized in current profit/loss | 8.55 million | | Gains/losses from entrusted investments or asset management | 1.72 million | | Debt restructuring gains/losses | -2.07 million | | Other non-operating income/expenses, etc. | -2.23 million | | Total | 6.72 million | Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial condition, and key factors influencing its results during the reporting period Main Business and Operations The company's main business is the R&D, production, and sale of aquatic feed, with special aquatic feed as its core product. In the first half of 2024, adverse factors such as a sluggish aquatic product market, declining prices, and severe weather led to a nearly 15% year-on-year decrease in feed sales and a 16.13% drop in revenue, while credit impairment losses increased by 57.94%, resulting in a net loss of $47.98 million attributable to shareholders - The company specializes in special aquatic feed, with annual production and sales ranking among the top in the industry, and has established production and sales networks in key aquaculture regions nationwide and overseas (Vietnam)[18] - In the first half of 2024, market demand decreased due to a sluggish aquatic product market, declining prices, and frequent natural disasters, leading to a short-term reduction in aquaculture scale[17][31] 2024 Semi-Annual Operating Performance Summary | Indicator | Change | Main Reason | | :--- | :--- | :--- | | Feed Sales | Decreased by nearly 15% YoY | Reduced market demand, farmers decreasing feeding or abandoning farming | | Operating Revenue | $2.36 billion, decreased by 16.13% YoY | Sales volume decrease | | Net Profit Attributable to Parent | -$47.98 million, decreased by 37.10% YoY | Revenue decline and significant increase in credit impairment losses | | Credit Impairment Losses | $151.32 million, increased by 57.94% YoY | Customer repayments below expectations, increased provision for doubtful accounts | - The company implemented measures such as deepening management reforms, increasing R&D, and strengthening quality management to address challenges, resulting in a year-on-year decrease of 29.25% in selling expenses, 3.30% in administrative expenses, and 4.43% in financial expenses[32] Core Competitiveness Analysis The company's core competitiveness is primarily reflected in five aspects: thirty years of accumulated technology and R&D advantages, a stringent product quality management system, a professional "pond-side service" marketing model, refined cost control capabilities, and a strong brand advantage under its multi-brand strategy - Technology and R&D Advantages: As a high-tech enterprise, the company possesses a professional R&D team and multiple provincial-level R&D platforms, maintaining industry-university-research cooperation with various universities and institutes[35][36] - Product Quality Advantages: Certified with ISO9001 and ISO22000, the company has established a strict quality control system covering the entire process from raw material procurement to product sales[37] - Marketing Service Advantages: Promoting "port-station service" and "pond-side service," the company forms an "iron triangle" team of marketing, service, and technical personnel to provide comprehensive aquaculture solutions, enhancing customer loyalty[38] - Cost Management Advantages: Through a professional procurement team and raw material database, the company effectively anticipates price fluctuations, controls costs, and establishes long-term strategic partnerships with suppliers[39] - Brand Advantages: The company owns multiple well-known brands, including Yuehai and Yuejia, which have strong influence among distributors and farmers[40] Main Business Analysis During the reporting period, both the company's main business revenue and costs decreased by approximately 16% year-on-year. Although the three major expenses decreased, a significant 57.94% year-on-year increase in credit impairment losses was a primary reason for the expanded loss. From a product structure perspective, feed sales, accounting for 95.74% of revenue, decreased by 15.20%. Geographically, South China remained the main revenue source, accounting for 71.24% of total revenue, with a 13.40% decrease in revenue for this region Key Financial Data Year-on-Year Changes | Item | Current Period (USD) | Prior Year Period (USD) | YoY Change | Main Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,363.18 million | 2,817.68 million | -16.13% | Sales volume decrease | | Operating Cost | 2,104.74 million | 2,512.29 million | -16.22% | Decreased with revenue | | Selling Expenses | 72.09 million | 101.90 million | -29.25% | Expense control | | R&D Investment | 22.74 million | 62.55 million | -63.64% | R&D strategy adjustment | | Credit Impairment Losses | -151.32 million | -95.81 million | 57.94% | Increased provision for doubtful accounts | Operating Revenue Composition | Category | Item | Operating Revenue (USD) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | By Product | Feed Sales | 2,262.42 million | 95.74% | -15.20% | | | Animal Health Product Sales | 34.72 million | 1.47% | -45.12% | | By Region | South China | 1,683.57 million | 71.24% | -13.40% | | | East China | 434.74 million | 18.40% | -22.34% | Non-Main Business Analysis During the reporting period, the company's non-main business activities had a minor impact on total profit, primarily including $1.72 million in gains from fair value changes of financial assets held for trading and $2.65 million in investment losses from debt restructuring, neither of which is sustainable Non-Main Business Profit/Loss | Item | Amount (USD) | % of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | -2.65 million | 3.06% | Primarily debt restructuring gains | | Gains/Losses from Fair Value Changes | 1.72 million | -1.99% | Primarily fair value changes of financial assets held for trading | | Non-operating Income | 0.29 million | -0.34% | Primarily customer liquidated damages | | Non-operating Expenses | 0.57 million | -0.65% | Primarily external donations and fixed asset disposal losses | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets were $4.79 billion, an increase of 3.23% from the beginning of the year. The asset structure changed, with cash and cash equivalents decreasing by 9.86 percentage points, while accounts receivable increased by 2.88 percentage points. On the liability side, short-term borrowings and accounts payable increased. Additionally, $480 million of the company's assets were restricted, primarily for deposits, loan collateral, and bill pledges Balance Sheet Key Item Changes | Item | Period-End Amount (USD) | % of Total Assets | Change in % from Prior Year-End | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 644.95 million | 13.48% | -9.86% | Increase in accounts receivable and some funds used to purchase wealth management products not yet redeemed | | Accounts Receivable | 1,476.14 million | 30.85% | 2.88% | - | | Short-term Borrowings | 711.96 million | 14.88% | 2.74% | - | | Accounts Payable | 441.60 million | 9.23% | 2.03% | Increase in payables for raw material purchases | | Treasury Stock | 105.84 million | 2.21% | 1.39% | Increase due to share repurchases in current period | - As of the end of the reporting period, the company had $480 million in restricted assets, including $109 million in cash and cash equivalents (deposits), $110 million in fixed assets (collateral), $9 million in intangible assets (collateral), and $252 million in financial assets held for trading (pledged)[48] Investment Status Analysis During the reporting period, the company's investment amounted to $44.28 million, a year-on-year increase of 24.99%. Regarding raised funds, out of a total of $480 million, $303 million has been cumulatively used, with $186 million remaining. Some raised fund projects, such as the Hainan 120,000-ton feed project and Zhongshan Taishan expansion project, have commenced operations but have not yet reached expected benefits, still in their ramp-up phase. The Anhui project and R&D center project experienced construction delays Overall Use of Raised Funds (USD million) | Net Raised Funds | Used in Current Period | Cumulatively Used | Remaining | Purpose and Destination of Remaining Funds | | :--- | :--- | :--- | :--- | :--- | | 480.08 | 35.69 | 303.38 | 185.60 | $151 million temporarily supplementing working capital, remainder in special accounts | - The Hainan 120,000-ton aquatic compound feed project commenced operations in May 2023, generating a loss of $6.49 million in the current reporting period, failing to meet expected benefits[55] - The Zhongshan Taishan 150,000-ton aquatic compound feed expansion project commenced operations in July 2022, generating a loss of $1.93 million in the current reporting period, failing to meet expected benefits[55] - The company decided in April 2024 to use up to $160 million of idle raised funds to temporarily supplement working capital, with $151 million used as of the end of the reporting period[56] Analysis of Major Holding and Participating Companies During the reporting period, the operating performance of the company's major holding subsidiaries varied significantly. Jiangmen Yuehai, Zhongshan Yuehai, and Zhejiang Yuehai achieved profitability, with net profits of $7.08 million, $6.96 million, and $7.57 million, respectively. However, subsidiaries such as Guangdong Yuejia, Guangxi Yuehai, Tianmen Yuehai, and Hainan Yuehai incurred losses, with Guangdong Yuejia having the largest loss of $29.28 million Major Subsidiary Operating Performance (USD million) | Company Name | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | | Guangdong Yuejia Feed Co., Ltd. | 225.61 | -41.22 | -29.28 | | Jiangmen Yuehai Feed Co., Ltd. | 462.10 | 3.89 | 7.08 | | Zhongshan Yuehai Feed Co., Ltd. | 285.15 | 5.21 | 6.96 | | Zhejiang Yuehai Feed Co., Ltd. | 250.75 | 9.98 | 7.57 | | Tianmen Yuehai Feed Co., Ltd. | 68.11 | -11.83 | -8.85 | | Hainan Yuehai Feed Co., Ltd. | 109.83 | -8.79 | -6.49 | Risks and Countermeasures The company faces major operating risks including intensified market competition, fluctuations in raw material prices, aquatic farming diseases and natural disasters, fluctuations in downstream aquatic product prices, and accounts receivable credit risk. The company plans to address these risks by leveraging its comprehensive advantages, centralized procurement and technological R&D, optimizing product and market layout, refining customer structure, and strengthening collections - Market Competition Risk: The company must compete with both national comprehensive feed enterprises and local leading enterprises[61] - Raw Material Price Fluctuation Risk: Prices of major raw materials like fish meal and soybean meal directly impact costs. The company responds through centralized procurement, raw material reserves, and formula adjustments[62] - Natural Disasters and Disease Risk: Localized farming diseases and natural disasters may temporarily adversely affect operations in certain regions[63] - Downstream Industry Risk: Low aquatic product prices may reduce farmers' enthusiasm, affecting feed sales and collections[64] - Accounts Receivable Credit Risk: Long farming cycles and slow fund recovery may lead to uncollectible accounts receivable. The company mitigates this by improving risk management and optimizing customer structure[65] Corporate Governance This section details the company's governance structure, including shareholder meetings, changes in directors, supervisors, and senior management, as well as equity incentive and employee stock ownership plans Shareholder Meetings and Changes in Directors, Supervisors, and Senior Management During the reporting period, the company held two shareholder meetings: one extraordinary general meeting and one annual general meeting. Additionally, the company's board of directors and supervisory board each elected a new member - The 2024 First Extraordinary General Meeting and the 2023 Annual General Meeting were held during the reporting period[67] - Zheng Huifang was elected as a company director, and Xu Huanyu was elected as a company supervisor[68] Equity Incentive and Employee Stock Ownership Plans The company is implementing its 2023 stock option incentive plan and has completed the initial grant registration. Furthermore, the company's 2023 employee stock ownership plan remains valid, covering 326 employees holding 8.5 million shares, representing 1.21% of the company's total share capital. During the reporting period, share-based payment expenses of $10.63 million were recognized for the employee stock ownership plan - The company launched a stock option incentive plan in 2023 and completed the initial grant registration on August 1, 2023[70][71][72] - The company's 2023 employee stock ownership plan covers 326 individuals, holding 8.5 million shares, accounting for 1.21% of total share capital. Share-based payment expenses of $10.63 million were recognized during the reporting period[73][74] Environmental and Social Responsibility This section outlines the company's commitment and actions regarding environmental protection and social responsibility, including compliance with regulations, pollution control, and contributions to community development Environmental Protection The company and its subsidiaries are not classified as key polluting entities and received no administrative penalties for environmental issues during the reporting period. The company implements measures to treat waste gas, dust, noise, and wastewater generated during production to ensure compliance with environmental standards - The company employs various environmental protection measures, such as sealing, suction, purification, sound insulation, and recycling, to treat major pollutants (waste gas, dust, noise, wastewater) generated during production[76][77] Social Responsibility The company actively fulfills its social responsibilities, protecting the rights and interests of shareholders, creditors, employees, customers, and suppliers. In terms of employee rights, the company strictly adheres to labor laws, provides a comprehensive compensation and benefits system. In social welfare, the company actively participates in rural revitalization through projects like the "Hundred Towns, Thousand Villages" Yuehai Village Wealth Creation Project, helping farmers achieve prosperity - The company protects shareholder and creditor interests through improved corporate governance and internal controls[79] - The company provides employees with standardized labor contracts, social insurance, housing provident fund, and various benefits, safeguarding employee rights[80] - Since 2015, the company has launched the "Hundred Towns, Thousand Villages" Yuehai Village Wealth Creation Project, establishing over 50 "Yuehai Villages" and technology service stations in multiple provinces and regions, helping farmers increase income through technical support and model promotion, contributing to rural revitalization[84] Significant Matters This section covers important events and disclosures, including commitments made by related parties, significant related-party transactions, and the status of major contracts and their performance Commitments During the reporting period, all commitments made by the company's actual controllers, shareholders, directors, supervisors, and senior management during the initial public offering, such as share lock-up, reduction intentions, share price stability, and avoidance of horizontal competition, were being fulfilled normally, with no overdue unfulfilled commitments - All commitments made by the company's actual controllers, controlling shareholders, and other committed parties regarding share lock-up, reduction intentions, share price stability, and avoidance of horizontal competition are being fulfilled normally[85][86][87][88] Significant Related-Party Transactions During the reporting period, the company engaged in sales transactions with related party Zhuhai Yueshun Aquatic Aquaculture Co., Ltd. totaling $11.42 million, which did not exceed the annual estimated limit of $35 million. No other significant related-party transactions occurred Related-Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Related Transaction Amount (USD) | Approved Transaction Limit (USD) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Zhuhai Yueshun Aquatic Aquaculture Co., Ltd. | Product Sales | 11.42 million | 35 million | No | Major Contracts and Their Performance During the reporting period, the company had significant guarantee matters, primarily providing guarantees for the financing of its subsidiaries and downstream customers. As of the end of the period, the company's actual total guarantee amount was $588.35 million, accounting for 22.72% of the company's net assets. Among these, the outstanding debt guarantees for guaranteed parties with an asset-liability ratio exceeding 70% amounted to $148.22 million Summary of Major Guarantees | Item | Amount (USD) | | :--- | :--- | | Total Actual Guarantee Balance at Period-End | 588.35 million | | Ratio of Total Actual Guarantee Amount to Company's Net Assets | 22.72% | | Debt Guarantee Balance for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% | 148.22 million | Share Changes and Shareholder Information This section provides details on changes in the company's share capital structure and information about its shareholders, including major shareholders and share repurchase activities Share Changes During the reporting period, the company's total share capital remained unchanged at 700 million shares, with restricted shares accounting for 68.84% and unrestricted shares for 31.16%. The company is implementing a share repurchase plan, and as of June 30, 2024, it had cumulatively repurchased 10.53 million shares, representing 1.50% of total share capital, with a total transaction value of $67.67 million - The company's total share capital is 700,000,000 shares, with no changes during the reporting period[111] - As of June 30, 2024, the company had cumulatively repurchased 10,525,068 shares through centralized bidding, accounting for 1.5036% of total share capital, with a total amount of $67,666,788.16, for implementing employee stock ownership plans or equity incentives[112] Shareholder Information As of the end of the reporting period, the company had 21,036 shareholders. The top three shareholders were Zhanjiang Prawn Feed Co., Ltd. (37.80%), Hong Kong Huangda Industrial Co., Ltd. (23.44%), and Zhanjiang Chengze Investment Center (Limited Partnership) (7.48%), all holding restricted shares. The controlling shareholder, Zhanjiang Prawn Feed Co., Ltd., pledged 66.44 million of its shares Top Five Shareholders' Shareholding | Shareholder Name | Shareholding Ratio | Number of Shares Held | Number of Restricted Shares Held | | :--- | :--- | :--- | :--- | | Zhanjiang Prawn Feed Co., Ltd. | 37.80% | 264,612,000 | 264,612,000 | | Hong Kong Huangda Industrial Co., Ltd. | 23.44% | 164,106,000 | 164,106,000 | | Zhanjiang Chengze Investment Center (Limited Partnership) | 7.48% | 52,392,000 | 52,392,000 | | Liu Xiaowei | 5.71% | 40,000,000 | 0 | | Shanghai Jingshang Investment Management Co., Ltd. - Jingshang Xinyu No. 1 | 5.55% | 38,835,946 | 0 | - The controlling shareholder, Zhanjiang Prawn Feed Co., Ltd., has pledged 66,440,000 shares[112] Financial Report This section provides the company's unaudited semi-annual financial statements for 2024 and related notes. The financial statements show total assets of $4.79 billion, net assets attributable to shareholders of $2.59 billion, operating revenue of $2.36 billion, and a net loss attributable to shareholders of $47.98 million for the reporting period. The notes to the financial statements detail the company's main accounting policies, accounting estimates, and the specific composition and changes of each statement item Financial Statements This part includes 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, comprehensively reflecting the company's financial position, operating results, and cash flow Consolidated Balance Sheet This table presents the company's consolidated financial position as of June 30, 2024, detailing assets, liabilities, and equity Consolidated Balance Sheet Summary (June 30, 2024) | Item | Period-End Balance (USD) | Period-Beginning Balance (USD) | | :--- | :--- | :--- | | Total Current Assets | 3,299.50 million | 3,229.33 million | | Total Non-current Assets | 1,485.66 million | 1,405.94 million | | Total Assets | 4,785.16 million | 4,635.27 million | | Total Current Liabilities | 2,030.21 million | 1,776.66 million | | Total Non-current Liabilities | 169.61 million | 131.87 million | | Total Liabilities | 2,199.82 million | 1,908.53 million | | Total Owners' Equity Attributable to Parent Company | 2,590.04 million | 2,729.72 million | | Total Owners' Equity | 2,585.34 million | 2,726.74 million | Consolidated Income Statement This table summarizes the company's consolidated operating results for the first half of 2024, including revenue, costs, and net profit Consolidated Income Statement Summary (2024 Semi-Annual) | Item | Current Period Amount (USD) | Prior Period Amount (USD) | | :--- | :--- | :--- | | Total Operating Revenue | 2,363.18 million | 2,817.68 million | | Total Operating Costs | 2,305.68 million | 2,787.37 million | | Credit Impairment Losses | -151.32 million | -95.81 million | | Operating Profit | -86.20 million | -58.81 million | | Total Profit | -86.47 million | -57.38 million | | Net Profit | -49.88 million | -35.73 million | | Net Profit Attributable to Parent Company Shareholders | -47.98 million | -34.99 million | Consolidated Cash Flow Statement This table outlines the company's consolidated cash inflows and outflows from operating, investing, and financing activities for the first half of 2024 Consolidated Cash Flow Statement Summary (2024 Semi-Annual) | Item | Current Period Amount (USD) | Prior Period Amount (USD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -147.13 million | -101.03 million | | Net Cash Flow from Investing Activities | -278.98 million | -535.46 million | | Net Cash Flow from Financing Activities | 31.92 million | 512.19 million | | Net Increase in Cash and Cash Equivalents | -394.37 million | -124.12 million | Notes to Consolidated Financial Statements This section provides detailed notes to the consolidated financial statements' key items. Accounts receivable at period-end amounted to $2.02 billion, with a high provision for doubtful accounts of $540.80 million. Short-term borrowings totaled $711.96 million, primarily guarantee-backed and collateralized loans. R&D expenses were $22.74 million, a significant year-on-year decrease of 63.64% Accounts Receivable Impairment Provision (Period-End) | Category | Book Balance (USD) | Impairment Provision (USD) | Book Value (USD) | | :--- | :--- | :--- | :--- | | Individually Assessed | 133.46 million | 110.55 million | 22.91 million | | Collectively Assessed | 1,883.48 million | 430.25 million | 1,453.23 million | | Total | 2,016.94 million | 540.80 million | 1,476.14 million | R&D Expense Composition | Item | Current Period Amount (USD) | Prior Period Amount (USD) | | :--- | :--- | :--- | | Marine Fish Feed Project | 6.54 million | 23.15 million | | Freshwater Fish Feed Project | 6.94 million | 22.48 million | | Shrimp Feed Project | 4.90 million | 11.98 million | | Total | 22.74 million | 62.55 million |