巨星农牧(603477) - 2024 Q2 - 季度财报

Financial Performance - The company's operating revenue for the first half of 2024 was ¥2,232,749,174.78, representing a 13.13% increase compared to ¥1,973,689,828.99 in the same period last year[17]. - The net profit attributable to shareholders of the listed company was -¥44,843,627.73, showing an improvement from -¥348,321,299.11 year-on-year[17]. - The net cash flow from operating activities increased significantly to ¥180,437,099.28, a 273.88% improvement from -¥103,772,429.39 in the previous year[17]. - The total assets of the company at the end of the reporting period were ¥8,132,428,193.45, up 5.33% from ¥7,720,965,323.92 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company decreased slightly by 1.05% to ¥3,035,332,629.22 from ¥3,067,569,979.28[17]. - The basic earnings per share for the first half of 2024 were -¥0.09, an improvement from -¥0.69 in the same period last year[18]. - The weighted average return on net assets increased by 8.50 percentage points to -1.47% from -9.97% year-on-year[18]. Industry Overview - In 2023, China's pork production reached 57.94 million tons, maintaining a global market share of approximately 50%[22]. - The per capita pork consumption in China increased to 30.50 kg in 2023, a year-on-year growth of 13.2%, marking a ten-year high[22]. - The company operates in the pig farming industry, which is significantly impacted by animal disease outbreaks, affecting production and consumption patterns[21]. - The market for pork in China is substantial, with the country being the largest producer and consumer of pork globally[22]. - The pig farming industry in China is experiencing a significant recovery, with market prices showing signs of warming since May 2024 after a period of volatility due to animal diseases[25]. Operational Challenges - The company faced significant risks including price fluctuations in livestock products and changes in environmental policies[5]. - The reliance on imported breeding stock remains a challenge, with China importing 31,686 and 22,325 breeding pigs in 2020 and 2021 respectively, highlighting the need for advancements in breeding technology[25]. - The company is exposed to raw material price volatility, particularly for corn and soybean meal, which affects the cost structure of its main business[54]. - Animal diseases pose a major risk, potentially leading to decreased efficiency and increased costs due to necessary interventions[54]. - Environmental policy changes could increase compliance costs, impacting overall profitability[54]. Strategic Focus - The company is focusing on expanding its market presence and enhancing its operational efficiency in response to industry challenges[21]. - The strategic emphasis is on leveraging government support and optimizing asset management to mitigate non-recurring losses[20]. - The company aims to enhance food safety and quality in the feed industry, aligning with national standards and consumer awareness[29]. - The company plans to actively explore customer acquisition and optimize product structure in response to the leather business's declining demand[37]. - The company is committed to strict internal controls and the safe use of raised funds for project construction[37]. Research and Development - The company has invested heavily in R&D, focusing on key technologies such as genetic breeding, precise nutrition, and biosecurity, with a dedicated research institute comprising five specialized departments[35]. - The introduction of high-quality breeding pigs from PIC has enhanced the company's breeding capabilities, resulting in lower costs for piglets and improved growth rates and feed conversion[35]. - The company has developed optimal feed formulas for different growth stages of pigs, leading to increased feed conversion rates and reduced feed costs[35]. Environmental Compliance - The company has implemented a comprehensive wastewater treatment system using a three-stage treatment technology, ensuring compliance with environmental standards[64]. - The company has achieved gold certification from BLC-LWG for its environmental protection efforts, meeting both international and domestic standards[62]. - The company has established strict pollution prevention measures, including real-time monitoring systems for CODcr and ammonia nitrogen in wastewater[67]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[68]. Financial Management - The company has established a procurement management system for its leather business, ensuring quality and stability in raw material supply[33]. - The company has a strong supply chain advantage in the leather business, ensuring stable and low-cost raw material supplies[36]. - The company has maintained a high proportion of double-negative breeding pigs, significantly improving breeding efficiency and food safety in pork production[35]. - The company has reported a total guarantee amount of approximately ¥2,043.31 million, which accounts for 67.32% of the company's net assets[88]. Shareholder and Governance - The company has undergone management changes, appointing a new financial director and a new employee representative supervisor[57]. - The company has not proposed any profit distribution or capital reserve transfer plans for the current period[58]. - The company is focused on maintaining transparency and compliance with the China Securities Regulatory Commission and Shanghai Stock Exchange regulations[74]. - The company’s board members and senior management have pledged to comply with internal regulations and not misuse company assets for personal investments[78]. Financial Reporting - The financial report was approved by the board of directors on August 30, 2024, indicating a commitment to transparency and compliance with accounting standards[152]. - The company operates under the assumption of going concern, with sufficient financial support and no significant doubts about its ability to continue operations for the next 12 months[154]. - The accounting policies are aligned with the relevant accounting standards, ensuring accurate reflection of the company's financial status and operational results[156].