西部牧业(300106) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides important disclaimers, the report's table of contents, and definitions of key terms Important Notice The company's board, supervisors, and senior management guarantee the report's accuracy, completeness, and truthfulness, while also outlining key risks and dividend policy - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - The company's principal, chief accountant, and head of the accounting department declare that the financial report is true, accurate, and complete[4] - The company faces six major risks: product quality and food safety, market competition, environmental protection, changes in individual customers, policy support and government subsidies, and animal epidemics[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This section lists the report's eight main chapters and their corresponding page numbers - The report comprises eight main chapters, covering company operations, financials, governance, and significant matters[9] Definitions This section defines common terms used in the report, including company entities and reporting periods - This section defines the names of the company, institutions, and major subsidiaries involved in the report, such as Xinjiang Western Animal Husbandry Co., Ltd., Xinjiang Tiande Bio Co., Ltd., and Xinjiang Tianshan Yunmu Dairy Co., Ltd[13] - The reporting period is from January 1, 2025, to June 30, 2025, and the prior year period is from January 1, 2024, to June 30, 2024[13] Section II Company Profile and Key Financial Indicators This section introduces the company's basic information and presents key financial data and indicators I. Company Profile This section provides basic information about Xinjiang Western Animal Husbandry Co., Ltd., including stock details and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Western Animal Husbandry | | Stock Code | 300106 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 新疆西部牧业股份有限公司 | | Legal Representative | 刘羽 | II. Contact Person and Contact Information This section provides contact details for the company's board secretary and securities affairs representative Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liang Lei | No. 28, Beiyi East Road, Economic Development Zone, Shihezi City, Xinjiang | 0993-2516883 | 0993-2701819 | 2402313916@qq.com | | Securities Affairs Representative | Zhang Zebo | No. 28, Beiyi East Road, Economic Development Zone, Shihezi City, Xinjiang | 0993-2516883 | 0993-2701819 | xbmy_zqb@126.com | III. Other Information This section confirms no changes in the company's contact information, disclosure, or registration during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[17] - Information disclosure and storage locations remained unchanged during the reporting period[18] - The company's registration status remained unchanged during the reporting period[19] IV. Key Accounting Data and Financial Indicators The company's H1 2025 revenue decreased by 12.45%, net loss attributable to shareholders widened by 26.48%, while operating cash flow significantly improved Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 396,179,341.09 | 452,496,101.56 | -12.45% | | Net Profit Attributable to Shareholders of Listed Company | -43,600,251.49 | -34,472,957.97 | -26.48% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -55,381,407.21 | -36,621,086.26 | -51.23% | | Net Cash Flow from Operating Activities | 20,452,139.90 | -39,573,072.52 | 151.68% | | Basic Earnings Per Share (CNY/share) | -0.2063 | -0.1631 | -26.49% | | Diluted Earnings Per Share (CNY/share) | -0.2063 | -0.1631 | -26.49% | | Weighted Average Return on Net Assets | -10.88% | -6.58% | 4.30% | | Indicator | End of Current Reporting Period (CNY) | End of Prior Year (CNY) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 1,069,913,338.49 | 1,103,411,423.29 | -3.04% | | Net Assets Attributable to Shareholders of Listed Company | 378,885,823.60 | 422,486,075.09 | -10.32% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reports no differences in net profit or net assets under international/overseas accounting standards compared to Chinese accounting standards - The company reports no differences in accounting data under domestic and overseas accounting standards during the reporting period[21][22] VI. Non-Recurring Gains and Losses and Amounts The company's non-recurring gains and losses totaled CNY 11.78 million, primarily from government subsidies Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | -26,305.56 | | | Government subsidies recognized in current profit or loss | 20,347,156.54 | Includes 17 items such as powder spraying subsidies, agricultural subsidies, and additional deductions for advanced manufacturing input VAT | | Other non-operating income and expenses apart from the above | 236,855.67 | | | Less: Income tax impact | 2,686,939.99 | | | Impact on minority interests (after tax) | 6,089,610.94 | | | Total | 11,781,155.72 | | - The company does not classify non-recurring gains and losses as recurring gains and losses[26] Section III Management Discussion and Analysis This section details the company's main business operations, core competencies, financial performance, and risk factors I. Main Business Activities During the Reporting Period The company's main businesses include dairy product processing, feed production, and beef/mutton processing, supported by an integrated supply chain (I) Company's Main Business The company's core businesses are dairy product processing, feed production, and beef/mutton processing, with strategic investments in upstream pastures - The company's main business involves dairy product processing and sales, feed production and sales, and beef and mutton processing and sales, with raw milk supply secured through investments in pastures[28] - The dairy product processing segment includes Huayuan Dairy, Huayuan Tianshan Branch, and Tianshan Yunmu Dairy, producing diverse products such as pure milk, yogurt, infant formula, and cheese[28] - The feed processing segment, managed by Quansheng Animal Husbandry, primarily produces feed for ruminant livestock and offers scientific feeding technical support[29] - The beef and mutton processing segment, operated by Karwan and its associate Yiheng Animal Husbandry, utilizes modern slaughtering and fine-cut methods, with products highly favored by consumers[29] (II) Industry Overview The dairy industry, supported by national policies, shows growth potential, increasing concentration, and a focus on innovation and quality - The dairy product industry receives strong national policy support, with significant room for growth in consumption and market size[30][31] - Industry development trends include increased concentration, product innovation and differentiation, enhanced added value, and steady improvement in quality and safety[32][33][34] - Industry barriers primarily include policy access, raw milk source control, brand, farming environment, and technology barriers[35][36][37][38][39][40] 2024 National Milk and Dairy Product Output | Indicator | 2024 Output | Year-on-Year Change | | :--- | :--- | :--- | | Milk Output | 4.079 million tons | -2.8% | | Dairy Product Output | 2.9618 million tons | -1.9% | 2023 Financial Data of China's Above-Scale Dairy Product Manufacturing Enterprises | Indicator | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Main Business Revenue | CNY 462.09 billion | +2.57% | | Total Profit | CNY 39.44 billion | +12.21% | - The dairy product industry's technological level is mature, encompassing production technologies such as separation, homogenization, pasteurization, UHT ultra-high temperature sterilization, aseptic packaging technology, and wet/dry infant formula production technologies[47][48][49][50][51] - The industry's operating model is primarily "company + pasture," with no obvious cyclicality, regionality influenced by low-temperature milk logistics and raw milk source distribution, and no significant seasonality[52][53] (III) Industry Regulators, Regulatory System, Major Laws, Regulations, Policies, and Their Impact on the Company's Operations and Development The dairy industry is regulated by multiple government bodies and self-regulatory organizations, with policies aimed at ensuring quality and promoting industry development Industry Regulators and Functions | Department Name | Functions | | :--- | :--- | | National Development and Reform Commission | Formulates and organizes the implementation of industry development strategies and plans, researches and formulates industrial policies, and supervises their implementation, reviews major industry projects | | State Administration for Market Regulation | Responsible for comprehensive market supervision and management, conducting supervision and inspection of the entire process of food production, circulation, and consumption | | Ministry of Agriculture and Rural Affairs | Coordinates research and organizes the implementation of strategies, plans, and policies for "agriculture, rural areas, and farmers" work, supervises and manages animal husbandry and agricultural product quality and safety | | China Dairy Association | Industry self-regulatory organization responsible for industry and market research, making recommendations to the government, public services, and internal industry norms | | China Animal Agriculture Association | Industry self-regulatory organization responsible for integrating industry resources, regulating industry behavior, and promoting industry development | | China Dairy Industry Association | Industry self-regulatory organization that protects the rights and interests of dairy enterprises, dairy farmers, and consumers, regulates corporate behavior, and promotes new technologies | - The state has introduced multiple laws, regulations, and policies, such as the "Regulations on the Supervision and Administration of Dairy Product Quality and Safety," the "Measures for the Administration of Raw Milk Production and Acquisition," and the "Several Opinions on Further Promoting the Revitalization of the Dairy Industry," aiming to ensure dairy product quality and safety, promote dairy industry revitalization, and enhance the self-sufficiency and competitiveness of domestic infant formula[58][59][60] (IV) Brand Operation Status The company actively promotes its "Ximu Tianshan" and "Huayuan" brands to expand its regional dairy market presence - The company's dairy enterprises actively promote the synergistic development of the "Ximu Tianshan" and "Huayuan" core brands[61] - Tianshan Yunmu Dairy owns multiple brands such as "Ximu Tianshan" and "Xiaoao Mudu," while Huayuan Dairy owns brands such as "Huayuan" and "Guli Bag"[61] (V) Main Sales Models The company employs a hybrid sales model combining direct and distribution channels, utilizing online, offline, and new retail strategies - The company primarily adopts a sales model combining direct sales and distribution, serving the market and consumers through online, offline, and online-offline integrated new retail models[62] - The direct sales model mainly targets various supermarkets and student milk for the education system, while the distribution model sells products through regional distributors nationwide[62] - Online sales platforms include Tmall, JD.com, Taobao, Pinduoduo, and new media marketing is conducted using live streaming and KOC sharing[62] - Offline distribution channels cover large KA systems, convenience stores, small and medium-sized chain supermarkets, Xinjiang specialty stores, and brand exclusive stores, also expanding into special channels such as schools and enterprises for group purchases[63] - The company enhances consumer engagement and brand influence through offline exhibitions and public welfare promotion activities[63] (VI) Distribution Model The company's dairy product sales are predominantly through distribution, with a notable decrease in the number of distributors, especially outside Xinjiang Changes in Dairy Product Distributor Numbers | Region | Number of Distributors at Beginning of Period (companies) | Number of New Distributors (companies) | Number of Decreased Distributors (companies) | Number of Distributors at End of Period (companies) | Change (companies) | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Within Xinjiang | 290 | 58 | 57 | 291 | 1 | 0.34% | | Outside Xinjiang | 394 | 67 | 193 | 268 | -126 | -31.98% | | Total | 684 | 125 | 250 | 559 | -125 | -18.27% | Dairy Product Sales Model Financial Data | Sales Model | Main Business Revenue (CNY 10,000) | Proportion | Gross Profit Margin | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Direct Sales Model | 1,275.83 | 3.33% | 11.27% | 1.06% | | Distribution Model | 37,040.02 | 96.67% | 9.17% | -1.95% | | Total | 38,315.84 | 100.00% | 9.24% | -1.85% | Top Five Distribution Customer Sales | Dairy Product Distributor | Current Period Revenue (CNY 10,000) | Sales Proportion | | :--- | :--- | :--- | | Fuzhou Xurong Trading Co., Ltd. | 4,969.65 | 12.97% | | Guangzhou Tianjingzhifu Trading Co., Ltd. | 1,147.93 | 3.00% | | Chongqing Wanchanghe Technology Co., Ltd. | 836.87 | 2.18% | | Zhengzhou Shengmeitai Trading Co., Ltd. | 835.07 | 2.18% | | Alar Haoyan Trading Co., Ltd. | 769.68 | 2.01% | | Total | 8,442.66 | 22.03% | - Online direct sales products are primarily dairy products, including ambient and low-temperature milk, sold on platforms such as JD.com, Tmall, Taobao, and Pinduoduo[68][69] (VII) Procurement Model and Content The company primarily procures raw milk through a cooperative model, with other materials sourced via a bidding process Main Procurement Content and Amounts | Procurement Model | Procurement Content | Amount of Main Procurement Content (CNY) | | :--- | :--- | :--- | | Cooperative Model | Raw Milk | 219,352,167.48 | | Bidding Model | Packaging Materials | 68,827,310.21 | | Bidding Model | Spare Parts | 10,150,118.13 | | Bidding Model | Other Auxiliary Materials | 21,591,514.72 | | Bidding Model | Transportation Fees | 7,831,587.04 | | Bidding Model | Fuel and Power | 15,970,357.10 | - The proportion of raw materials purchased from cooperatives or farmers did not exceed 30% of the total procurement amount[70] - The price change of major outsourced raw materials did not exceed 30% year-on-year[70] (VIII) Main Production Model The company primarily uses a self-production model for dairy products, sourcing raw milk from affiliated and cooperative pastures - The company's main dairy product production model is self-production, with three dairy processing plants, all holding food production licenses[70] - The main raw material, raw milk, is purchased from the company's affiliated pastures and long-term cooperative raw milk suppliers[70] (IX) Contract Manufacturing The company did not engage in contract manufacturing during the reporting period - The company had no contract manufacturing during the reporting period[71] (X) Output and Inventory Dairy product sales and production volumes increased year-over-year, while inventory levels slightly decreased Dairy Product Output and Inventory | Item | Unit | June 30, 2025 | June 30, 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Sales Volume | tons | 47,957.84 | 46,311.61 | 3.55% | | Production Volume | tons | 47,752.34 | 46,255.00 | 3.24% | | Inventory Volume | tons | 2,558.37 | 2,828.51 | -9.55% | II. Core Competitiveness Analysis The company's core strengths include its prime geographical location, high-quality raw milk supply, strong brand image, and robust R&D capabilities 1、Geographical and Raw Milk Source Advantages The company benefits from its location in Xinjiang's "golden milk source belt," offering superior natural conditions for high-quality raw milk production - The company's raw milk pastures are located in the "golden milk source belt" at 42-45° North Latitude, boasting high-protein forage resources, alpine glacier meltwater, and ample sunshine, resulting in distinct raw milk advantages[72] - Shihezi City, as a key region in China's "Belt and Road" and Western Development strategies, has become an important dairy production base in China[72] 2、High-Quality Raw Milk Supply Advantage The company ensures a stable supply of high-quality raw milk from certified, long-term cooperative pastures in the Shihezi region - The company's raw milk primarily originates from long-term cooperative pastures in the Shihezi region, with some pastures certified as "Standardized Dairy Farming Demonstration Farms" by the Ministry of Agriculture and Rural Affairs and organic pastures[73] - The company provides customized feed to cooperative pastures and leverages the "two-hour ecological circle" advantage of processing plants near pastures to ensure a stable supply of high-quality raw milk[73] 3、Brand Image Advantage "Huayuan" is a well-established national brand in Xinjiang, and the company actively expands its market presence for both "Huayuan" and "Ximu Tianshan" brands - Huayuan Dairy is a "Designated Production Enterprise for Chinese Student Milk" and a "National Key Leading Enterprise in Agricultural Industrialization," with the "Huayuan" brand having over forty years of history, a broad public base in Xinjiang, and inclusion in the China Agricultural Brand Directory[74] - The company actively expands markets outside Xinjiang through distinctive marketing, leveraging Xinjiang's geographical advantages, military reclamation culture, and milk quality advantages, enhancing brand influence[74] 4、Industrial Chain Synergy Advantage The company has established a synergistic industrial chain, integrating feed processing, dairy production, and pasture operations to ensure stable, high-quality milk supply - The company has formed an industrial chain centered on feed processing and dairy product production and sales, with a layout in the farming segment through cooperative pastures[75] - Through interdependent and synergistic development with its partner Tianshan Junken Pasture, the company builds industrial chain synergy to ensure the supply of high-quality raw milk and stable dairy product quality[75] 5、Product Quality Advantage The company's subsidiaries are "specialized, refined, distinctive, and innovative" enterprises, holding multiple certifications and infant formula registrations, ensuring high product quality - Huayuan Dairy and Tianshan Yunmu Dairy are the only two local dairy enterprises in Xinjiang with qualifications for infant formula production and sales, collectively holding 15 new national standard infant formula product formula registration certificates across 5 series[76][77] - Tianshan Yunmu Dairy's infant formula has also obtained EU BRC and IFS dual certifications[77] - Both dairy enterprises have passed multiple quality system certifications, including ISO9001, HACCP, GMP, integrity management system, and organic product certification, ensuring product quality[77] 6、Technology Research and Development Advantage The company collaborates with universities and research institutions to drive product development and technological innovation - The company collaborates closely with multiple universities and enterprise research institutions, including China Agricultural University, Jiangnan University, and Northwest A&F University, to provide theoretical basis and technical support for product R&D and project topics[78] 7、Trademarks and Patents The company possesses a substantial portfolio of registered trademarks, utility model patents, design patents, and copyrights across its diverse business operations - The company owns a large number of registered trademarks covering various categories such as animal husbandry, agricultural products, dairy products, food processing, and advertising, with major brands including "Western Animal Husbandry," "Tianshan Yunmu Dairy," "Huayuan," and "Karwan"[79][80][81][82][83][84][85][86][87][88][89][90][91][92][93][94][95][96][97][98][99][100][101][102][103][104] - The company holds multiple utility model patents and design patents related to dairy cow farming equipment, food processing technology, yogurt production devices, filling machine cleaning softened water supply mechanisms, liquid filling machine needles, fresh milk impurity filters, chia seed yogurt ratio experimental devices, milk tea powder preparation methods, solidified cake yogurt and its preparation methods, solidified rum yogurt and its preparation methods, and various product packaging box designs[105][106] - The company also possesses multiple copyrights, including "Large-scale Multi-Pasture Management Model—6+3," "Western Animal Husbandry," "Huayuan Brand Promotion Map," "Cow with Flower Wreath," "Tianshan Muyu," "Ximu Tianshan," "Ximu You," "Self-Operated Pasture," "Corps Quality," "Little Milk Baby," and "Beautiful Xinjiang"[106] 8、Qualifications and Licenses Related to Operating Activities The company's subsidiaries hold numerous essential licenses and certifications for dairy, feed, and meat processing, including infant formula registrations - Tianshan Yunmu Dairy and Huayuan Dairy collectively obtained 15 infant formula product formula registration certificates[107] - The company's subsidiaries hold production and sales licenses for dairy products, beverages, infant formula, meat products, and feed[108] - The company's subsidiaries also hold raw milk acquisition licenses, animal quarantine certificates, designated livestock and poultry slaughtering permits, and pollutant discharge permits[108] 9、Core Technology and Research and Development The company leverages multiple innovation platforms and academic partnerships to develop new dairy products and advance breeding and management technologies - The company possesses 9 industrial innovation development platforms and talent training bases, including a national postdoctoral research workstation and provincial-level technology centers[109] - Huayuan Dairy independently developed native cheese series and 0-sugar yogurt products, while Tianshan Yunmu Dairy continuously researches modulated milk powder, children's milk powder, elderly milk powder, and A2 full-fat milk powder, achieving product diversification[109][110] - The company collaborates with universities and research institutions such as Dalian University of Technology, Jiangnan University, and Huazhong Agricultural University on industry-university-research projects for technological breakthroughs, including "Development of Lactose-Free Brown Functional Fermented Dairy Products" and "Creation and Demonstration of Multi-Strain Probiotic Fermented Almond Yogurt for Blood Sugar Reduction"[110][111] - In cattle and sheep breeding and scientific management technology, the company collaborates with the National Wool and Cashmere Industry Technology System to implement cattle and sheep crossbreeding and selection technology, formulate 20 production technical specifications, and obtain 2 software copyrights and 4 patents[112] - Projects undertaken by Huayuan Dairy received the "Second Prize for National Commercial Scientific and Technological Progress" from the China General Chamber of Commerce and the Second Prize for Scientific and Technological Progress of the Xinjiang Production and Construction Corps, and were selected for the "First Batch of China Consumer Famous Products List" and "National Five-Star Brand" certification[113][114] III. Main Business Analysis The company's main business revenue declined by 12.45%, with dairy products contributing 96.71% of revenue, while operating cash flow significantly improved - The company's main business involves dairy product processing and sales, feed production and sales, and beef and mutton processing and sales, retaining its farming segment layout through investments in pastures[115] Main Business Revenue Composition | Business Type | Operating Revenue (CNY 10,000) | Proportion of Operating Revenue | | :--- | :--- | :--- | | Dairy Products | 38,315.84 | 96.71% | | Other Businesses | 1,302.09 | 3.29% | Key Financial Data Year-on-Year Change | Item | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 396,179,341.09 | 452,496,101.56 | -12.45% | | | Selling Expenses | 14,210,013.64 | 23,402,981.00 | -39.28% | Subsidiary Huayuan Dairy ended cooperation with Hangzhou and Zhengzhou operation centers, leading to a decrease in sales commissions and promotion expenses | | Administrative Expenses | 30,730,482.10 | 21,666,968.87 | 41.83% | Subsidiary Huayuan Dairy incurred increased expenses for new procurement, raw milk source, and quality inspection departments, as well as increased administrative expenses for Huayuan Tianshan Branch | | R&D Investment | 1,203,524.62 | 2,465,903.29 | -51.19% | Subsidiary Huayuan Dairy's R&D investment decreased compared to the prior year period | | Net Cash Flow from Operating Activities | 20,452,139.90 | -39,573,072.52 | 151.68% | Cash inflow from sales of goods, subsidies received, and tax refunds increased compared to the prior year period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dairy Products | 383,158,441.81 | 347,762,602.27 | 9.24% | 2.25% | 4.38% | -1.85% | | Other Businesses | 13,020,899.28 | 15,059,637.57 | -15.66% | -83.26% | -78.06% | -27.40% | IV. Non-Main Business Analysis Non-operating items, particularly a significant credit impairment loss, negatively impacted the company's total profit, with most items lacking sustainability Impact of Non-Main Business on Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,321,625.26 | -6.23% | Recognized share of net profit/loss from long-term equity investments in joint ventures and associates accounted for using the equity method | Yes | | Non-Operating Income | 296,231.27 | -0.80% | Compensation received | No | | Non-Operating Expenses | 59,375.60 | -0.16% | Company donation expenses | No | | Credit Impairment Loss | -42,220,522.62 | 113.32% | Provision for bad debts on accounts receivable | No | V. Analysis of Assets and Liabilities The company's total assets decreased by 3.04%, with shifts in the composition of current assets and an increase in both short-term and long-term borrowings Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | Proportion of Total Assets | Amount at End of Prior Year (CNY) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 298,604,325.02 | 27.91% | 246,533,974.11 | 22.34% | 5.57% | | Accounts Receivable | 156,499,449.56 | 14.63% | 211,416,121.99 | 19.16% | -4.53% | | Inventories | 92,786,575.12 | 8.67% | 77,471,218.01 | 7.02% | 1.65% | | Long-Term Equity Investments | 28,496,540.50 | 2.66% | 26,021,429.30 | 2.36% | 0.30% | | Fixed Assets | 320,281,942.04 | 29.94% | 334,107,230.46 | 30.28% | -0.34% | | Short-Term Borrowings | 174,690,000.00 | 16.33% | 140,131,611.11 | 12.70% | 3.63% | | Contract Liabilities | 27,679,108.27 | 2.59% | 9,941,931.44 | 0.90% | 1.69% | | Long-Term Borrowings | 49,989,800.00 | 4.67% | 29,999,800.00 | 2.72% | 1.95% | - The company had no major overseas assets or assets and liabilities measured at fair value at the end of the reporting period[125] Restricted Monetary Funds Details | Item | Balance at End of Period (CNY) | Balance at Beginning of Period (CNY) | | :--- | :--- | :--- | | Restricted Other Monetary Funds | 2,852,007.04 | 1,871,972.38 | | Total | 2,852,007.04 | 1,931,695.35 | VI. Investment Status Analysis The company made several non-equity investments in self-built projects, primarily for dairy processing upgrades, with no significant equity investments or other financial investments - The company had no significant equity investments during the reporting period[128] Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Industry Involved | Amount Invested in Current Period (CNY) | Cumulative Actual Investment at End of Reporting Period (CNY) | Source of Funds | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Construction of Cattle Farm | Self-built | Animal Husbandry | | 1,592,884.40 | Self-raised | 100.00% | | Automatic Packing Line | Self-built | Dairy Product Processing Industry | 2,035,398.75 | 2,035,398.75 | Self-raised | 100.00% | | Finished Product Warehouse Renovation and Upgrade | Self-built | Dairy Product Processing Industry | 1,033,628.32 | 1,033,628.32 | Self-raised | 100.00% | | Palletizer | Self-built | Dairy Product Processing Industry | 176,991.15 | 176,991.15 | Self-raised | 100.00% | | Wrapping Machine | Self-built | Dairy Product Processing Industry | 893,805.31 | 893,805.31 | Self-raised | 100.00% | | Compressed Hot Dryer | Self-built | Dairy Product Processing Industry | 168,141.59 | 168,141.59 | Self-raised | 100.00% | | Forklift Fee | Self-built | Dairy Product Processing Industry | 1,194.69 | 1,194.69 | Self-raised | 100.00% | | Fully Automatic Large Barrel Filling and Capping Machine | Self-built | Dairy Product Processing Industry | 1,004,424.78 | 1,004,424.78 | Self-raised | 100.00% | | Pure Steam Generator | Self-built | Dairy Product Processing Industry | 88,495.58 | 88,495.58 | Self-raised | 100.00% | | Near-Infrared Detector | Self-built | Dairy Product Processing Industry | 263,716.81 | 263,716.81 | Self-raised | 100.00% | | CO2 Laser Machine | Self-built | Dairy Product Processing Industry | 15,929.20 | 15,929.20 | Self-raised | 100.00% | | Creation and Demonstration Project of Multi-Strain Probiotic Fermented Almond Yogurt for Blood Sugar Reduction | Self-built | Dairy Product Processing Industry | 77,899.12 | 77,899.12 | Self-raised | 100.00% | | Total | -- | -- | 5,759,625.30 | 7,352,509.70 | -- | -- | - The company had no use of raised funds during the reporting period[132] - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[133][134][135] VII. Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[136] - The company did not sell significant equity during the reporting period[137] VIII. Analysis of Major Holding and Associate Companies Huayuan Dairy is the most profitable subsidiary, while several other subsidiaries reported losses during the period Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huayuan Dairy | Subsidiary | Dairy Product Processing | 7,500 | 51,167.42 | 32,458.04 | 31,322.83 | 1,787.13 | 1,967.73 | | Tianshan Yunmu Dairy | Subsidiary | Dairy Product Processing | 7,000 | 19,233.56 | -35,201.90 | 7,933.55 | -1,579.26 | -1,581.24 | | Quansheng Animal Husbandry | Subsidiary | Feed Processing | 1,688 | 15,023.21 | 9,988.58 | 119.13 | -3,198.59 | -3,198.73 | | Karwan | Subsidiary | Primary Processing of Livestock Products | 800 | 1,190.50 | -1,983.45 | 158.47 | -35.51 | -35.53 | | Animal Husbandry Engineering Center | Subsidiary | Animal Husbandry Technical Services | 15,000 | 1,691.39 | -1,060.09 | 0.00 | 20.04 | 20.04 | | Tianyuan Food Technology | Subsidiary | Food Manufacturing | 513 | 2,006.12 | -8,171.25 | 0.14 | -84.80 | -86.95 | - The company did not acquire or dispose of subsidiaries during the reporting period[139] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[142] X. Risks Faced by the Company and Countermeasures The company addresses risks related to product quality, market competition, environmental protection, dealer management, government support, and animal epidemics through various strategic measures - The company faces product quality and food safety risks, which it addresses by strictly implementing national food safety standards, strengthening quality management and process control, establishing quality control systems stricter than national standards, and developing emergency response plans[143][144] - The company faces market competition risks, which it addresses by leveraging Xinjiang's natural resource advantages, strengthening dairy product R&D and innovation, pursuing differentiated strategies, enhancing cost management, improving management efficiency, elevating product quality, and actively expanding markets outside Xinjiang[145] - The company faces environmental protection risks, which it addresses by studying environmental regulations, establishing environmental management systems, adopting advanced process technologies and equipment, reducing pollutant generation and emissions, and ensuring compliance with discharge standards[146][147] - The company faces risks from a large number of individual distributors and high turnover, which it mitigates by relying on Huayuan Dairy's stable customer base, expanding markets outside Xinjiang through three operation centers, improving Tianshan Yunmu Dairy's production capacity and product variety, and developing strong distributors[148] - The company faces risks related to policy support and government subsidies, which it addresses by staying informed about the latest industry tax incentives and government subsidy policies and actively seeking relevant subsidies[149] - The company faces animal epidemic risks, which it addresses by introducing years of accumulated experience in epidemic prevention, immunization, and disposal management to affiliated pastures and cooperative suppliers, strictly implementing epidemic prevention work, and establishing contingency plans and technical specifications to enhance risk resistance[150][151] XI. Registration Form for Investor Relations Activities During the Reporting Period The company did not host any investor relations activities during the reporting period - The company did not host any investor relations activities such as research, communication, or interviews during the reporting period[152] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[153] - The company has not disclosed a valuation enhancement plan[153] XIII. Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an action plan for "dual improvement in quality and returns" - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[153] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance, profit distribution, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management The company experienced changes in its board and supervisory board, including the departure of a supervisor and chairman, and the election of new members Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Sun Lihong | Supervisor | Resignation | March 20, 2025 | Personal reasons | | Cao Linghao | Supervisor | Elected | March 20, 2025 | Work transfer | | Li Changsheng | Chairman | Resignation | July 09, 2025 | Work transfer | | Liu Yu | Chairman | Elected | July 10, 2025 | Work transfer | II. Profit Distribution and Capital Reserve Conversion to Share Capital in This 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[156] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company did not implement any equity incentive, employee stock ownership, or other employee incentive plans 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[157] IV. Environmental Information Disclosure The company and its major subsidiaries are not listed among enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[158] V. Social Responsibility The company actively fulfills its corporate social responsibility through various community donations and public welfare activities - In June 2025, Huayuan Dairy donated 60 cans of infant formula, 200 cases of student milk, and 1,600 cups of yogurt in Adukealedi Village, Kashgar Prefecture[158] - In the first half of 2025, Huayuan Dairy conducted 52 infant formula community outreach activities, donating over 300 cans of infant formula[158] - On "Sanitation Worker's Day," Tianshan Yunmu Dairy provided 48 boxes of concentrated pure milk to frontline sanitation workers[158] Section V Significant Matters This section outlines significant events, including commitments, related party transactions, litigation, and other material matters I. Commitments Fulfilled and Overdue Unfulfilled Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period The company reports no outstanding or unfulfilled commitments from its controlling shareholder, shareholders, related parties, or the company itself - The company reports no commitments fulfilled or overdue unfulfilled by relevant parties during the reporting period[160] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company The company reports no non-operating funds occupied by controlling shareholders or other related parties - The company reports no non-operating funds occupied by controlling shareholders and other related parties of the listed company during the reporting period[161] III. Irregular External Guarantees The company reports no instances of illegal external guarantees during the reporting period - The company reports no irregular external guarantees during the reporting period[162] IV. Appointment and Dismissal of Accounting Firms The company's half-year report was not audited - The company's semi-annual report was not audited[163] V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for This Reporting Period The company did not receive any non-standard audit reports during the current reporting period - The company had no non-standard audit reports during the reporting period[164] VI. Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year The company did not have any non-standard audit reports for the previous year - The company had no non-standard audit reports for the previous year during the reporting period[164] VII. Bankruptcy and Reorganization Matters The company did not undergo any bankruptcy reorganization matters during the reporting period - The company did not experience any bankruptcy reorganization matters during the reporting period[164] VIII. Litigation Matters The company was involved in several significant sales contract disputes, primarily concerning its subsidiary Quansheng Animal Husbandry, with most cases resolved or in the process of settlement Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (CNY 10,000) | Provision for Estimated Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Hutubi County Honghui Cotton Linter Co., Ltd. vs. Quansheng Animal Husbandry, Western Animal Husbandry Sales Contract Dispute | 596.27 | No | Second instance withdrawn | First instance ruled Quansheng Animal Husbandry to pay goods and interest, Western Animal Husbandry not liable for payment | | Shihezi Jiabeirui Agricultural Technology Co., Ltd. vs. Quansheng Animal Husbandry Sales Contract Dispute | 460.31 | No | First instance mediated | Both parties signed a settlement agreement, Quansheng Animal Husbandry is fulfilling payment obligations as per agreement | | Hutubi County Liangruixiang Trading Co., Ltd. vs. Quansheng Animal Husbandry, Western Animal Husbandry Sales Contract Dispute | 353.62 | No | Second instance withdrawn | First instance ruled Quansheng Animal Husbandry to pay goods and interest, Western Animal Husbandry not liable for payment | | Hutubi County Beijiang Grain and Oil Industrial and Trading Co., Ltd. vs. Quansheng Animal Husbandry, Western Animal Husbandry Sales Contract Dispute | 101.18 | No | Second instance withdrawn | First instance ruled Quansheng Animal Husbandry to pay goods and interest, Western Animal Husbandry not liable for payment | | Xinjiang Xinchen Oil Co., Ltd. vs. Quansheng Animal Husbandry, Western Animal Husbandry Sales Contract Dispute | 82.17 | No | Retrial rejected | Second instance ruled Quansheng Animal Husbandry to pay goods and interest, Western Animal Husbandry not liable for payment | | Wusu Junteng Industrial and Trading Co., Ltd. vs. Quansheng Animal Husbandry, Western Animal Husbandry Sales Contract Dispute | 72.65 | No | Second instance withdrawn | First instance ruled Quansheng Animal Husbandry to pay goods and interest, Western Animal Husbandry not liable for payment | - Other lawsuits not meeting the disclosure threshold for significant litigation totaled CNY 1.3885 million, of which CNY 0.7302 million has been paid, and the remaining CNY 0.6584 million will be fulfilled according to court judgments[167] IX. Penalties and Rectification The company reports no penalties or rectification situations during the reporting period - The company reports no penalties or rectification situations during the reporting period[168] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller have no unfulfilled court judgments or significant overdue debts - The company, its controlling shareholder, and actual controller have no unfulfilled court judgments or significant overdue debts[169] XI. Significant Related Party Transactions The company engaged in routine related party transactions for raw milk procurement and feed sales, all within approved limits, with no other major related party transactions Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Related Transaction Amount (CNY 10,000) | Proportion of Similar Transactions | Approved Transaction Limit (CNY 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Tianshan Junken's subsidiaries Shuangshun Animal Husbandry and Tianshan Guanghe's subsidiaries | Purchase of Raw Materials (Raw Milk) | 11,774.78 | 53.68% | 50,000 | No | | Tianshan Junken's subsidiaries Shuangshun Animal Husbandry and Tianshan Guanghe's subsidiaries | Sale of Feed | 116.27 | 100.00% | 35,000 | No | | Total | -- | 11,891.05 | -- | 85,000 | -- | - The actual related transaction amount was within the estimated daily related transaction limit, and the transaction prices did not significantly differ from market reference prices[170] - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[171][172] - The company had no related party transactions involving joint external investment during the reporting period[173] - The company had no related party creditor-debtor transactions during the reporting period[174] - The company had no deposits, loans, credit, or other financial business with related financial companies or financial companies controlled by the company and related parties[175][176] - The company had no other significant related party transactions during the reporting period[177] XII. Significant Contracts and Their Performance The company's significant contracts include a lease agreement for a dairy processing plant and guarantees for subsidiaries, with no other major contracts - The company had no trusteeship or contracting situations during the reporting period[178][179] - In July 2023, controlling subsidiary Huayuan Dairy successfully bid for and leased part of the ongoing construction, fixed assets, and land use rights of the dairy processing plant from related legal entity Tianshan Dairy, establishing Huayuan Tianshan Branch, which officially commenced operations in September 2023, contributing to expanded production scale and enhanced profitability[180][181] - The company and its subsidiaries leased out idle equipment, buildings, and land, generating rental income of CNY 1.1878 million[182] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (CNY 10,000) | Actual Guarantee Amount (CNY 10,000) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Xinjiang Quansheng Animal Husbandry Co., Ltd. | 3,000 | 969 | 6 months | No | | Xinjiang Tianshan Yunmu Dairy Co., Ltd. | 10,000 | 500 | 12 months | Yes | | Total Actual Guarantee Balance for Subsidiaries at End of Reporting Period | 9,000 | 969 | -- | -- | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | -- | 2.56% | -- | -- | - The company had no other significant contracts during the reporting period[186] XIII. Explanation of Other Significant Matters The company reports no other significant matters requiring disclosure - The company reports no other significant matters requiring explanation during the reporting period187 XIV. Significant Matters of Company Subsidiaries Tianshan Yunmu Dairy established a joint venture with Beingmate Co., Ltd. for food sales, with Tianshan Yunmu holding a 95% stake - On January 3, 2025, Tianshan Yunmu Dairy and Beingmate Co., Ltd. jointly established Xinjiang Tianshan Xiaobei Food Sales Co., Ltd. with a registered capital of CNY 1 million, where Tianshan Yunmu Dairy holds a 95% stake[188] Section VI Changes in Shares and Shareholder Information This section reports on changes in share capital, securities issuance, shareholder structure, and changes in director/supervisor/senior management holdings I. Changes in Share Capital The company's total share capital remained unchanged at 211.33 million shares, all unrestricted, with no impact on per-share financial metrics Changes in Share Capital | Item | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (＋,－) Subtotal | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | | | | | | | II. Unrestricted Shares | 211,332,310 | 100.00% | 0 | 211,332,310 | 100.00% | | 1. RMB Ordinary Shares | 211,332,310 | 100.00% | 0 | 211,332,310 | 100.00% | | III. Total Shares | 211,332,310 | 100.00% | 0 | 211,332,310 | 100.00% | - During the reporting period, the company's total share capital remained unchanged, with no reasons for share changes, approval status, transfer status, progress of share repurchase implementation, or progress of repurchase share reduction through centralized bidding[191] - Share changes did not impact basic earnings per share, diluted earnings per share, or net assets per share for the most recent year and period[191] - Changes in the company's unrestricted shares[192] II. Securities Issuance and Listing The company did not have any securities issuance or listing activities during the reporting period - The company had no securities issuance and listing during the reporting period[192] III. Company Shareholder Numbers and Shareholding Status The company had 25,988 common shareholders, with Xinjiang Tiande Bio Co., Ltd. as the controlling shareholder, holding 41.82% of unrestricted shares - The total number of common shareholders at the end of the reporting period was 25,988 accounts[193] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status (number) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xinjiang Tiande Bio Co., Ltd. | State-owned Legal Person | 41.82% | 88,378,171 | 88,378,171 | 0 | | China Construction Bank Co., Ltd. - Harvest Agricultural Industry Stock Fund | Other | 1.25% | 2,651,900 | 2,651,900 | 0 | | He Feng | Domestic Natural Person | 1.00% | 2,104,900 | 2,104,900 | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.45% | 961,250 | 961,250 | 0 | | Qi Lanlan | Domestic Natural Person | 0.39% | 825,500 | 825,500 | 0 | | Yu Yangyong | Domestic Natural Person | 0.26% | 556,000 | 556,000 | 0 | | Wang Shuhong | Domestic Natural Person | 0.23% | 480,000 | 480,000 | 0 | | Liu Hui | Domestic Natural Person | 0.21% | 446,300 | 446,300 | 0 | | UBS AG | Overseas Legal Person | 0.20% | 415,586 | 415,586 | 0 | | Qi Qingyuan | Domestic Natural Person | 0.19% | 397,800 | 397,800 | 0 | - There is no associated relationship or concerted action relationship between Xinjiang Tiande Bio Co., Ltd. and other shareholders[194] - Shareholder He Feng holds a total of 2,104,900 shares through ordinary securities accounts and client credit trading guarantee securities accounts[194] - The company has no voting rights difference arrangements, and the top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[195] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[196] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[197] - The company's actual controller did not change during the reporting period[197] VI. Preferred Shares Related Information The company did not have any preferred shares during the reporting period - The company had no preferred shares during the reporting period[198] Section VII Bond-Related Information This section addresses any bond-related information Bond-Related Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[200] Section VIII Financial Report This section presents the company's unaudited financial statements and detailed notes on accounting policies and financial items I. Audit Report The company's half-year financial report was not audited - The company's semi-annual financial report was not audited[202] II. Financial Statements This section presents the company's consolidated and parent company financial statements for H1 2025, including balance sheets, income statements, and cash flow statements Consolidated Balance Sheet Key Data | Item | Balance at End of Period (CNY) | Balance at Beginning of Period (CNY) | | :--- | :--- | :--- | | Total Assets | 1,069,913,338.49 | 1,103,411,423.29 | | Total Liabilities | 561,195,364.20 | 558,964,121.21 | | Total Equity Attributable to Parent Company Owners | 378,885,823.60 | 422,486,075.09 | Consolidated Income Statement Key Data | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 396,179,341.09 | 452,49