光明肉业(600073) - 2025 Q2 - 季度财报

Definitions Definitions of Common Terms This section lists the definitions of common terms used in the report to ensure clear understanding - Company's full name: Shanghai Bright Meat Group Co., Ltd (Bright Meat)[12] - Controlling shareholder: Bright Food (Group) Co., Ltd[12] - Major subsidiaries include Yimin Food Group, Bright Finance Company, Bright Agriculture & Husbandry, Maling Co., Ltd, and Silver Fern Farms[12] Company Profile and Key Financial Indicators Company Information This section provides the company's basic registration information - Company's Chinese name: 上海光明肉业集团股份有限公司[14] - Company's stock short name: Bright Meat[14] - Legal representative: Li Junlong[14] Contact Person and Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative - Board Secretary: He Ru[15] - Contact number: 021-22866016[15] - Email: ir@brightmeat.com[15] Changes in Basic Information This section discloses the company's registered and office addresses, noting no changes during the reporting period - Registered address: Room 101, Building 7, 1501 Chuanqiao Road, China (Shanghai) Pilot Free Trade Zone[16] - Company website: https://www.brightmeat.com/[16](index=16&type=chunk) - No changes occurred during the reporting period[16] Changes in Information Disclosure and Report Preparation Location This section specifies the designated newspapers and websites for information disclosure - Designated newspapers for information disclosure: China Securities Journal, Shanghai Securities News[17] - Website for semi-annual report disclosure: www.sse.com.cn[17](index=17&type=chunk) - Location for semi-annual report preparation: 18 Jining Road, Yangpu District, Shanghai[17] Company Stock Profile This section provides information on the company's stock listing exchange, short name, and code - Stock type: A-Share[18] - Stock exchange: Shanghai Stock Exchange[18] - Stock code: 600073[18] - Previous stock short name: Shanghai Maling[18] Key Accounting Data and Financial Indicators The company's H1 2025 data shows revenue growth but a significant profit decline due to fixed asset impairment Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,069,608,632.09 Yuan | 11,601,598,700.01 Yuan | 4.03 | | Total Profit | 259,445,280.73 Yuan | 354,873,612.21 Yuan | -26.89 | | Net Profit Attributable to Shareholders | 176,033,571.37 Yuan | 253,348,285.38 Yuan | -30.52 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 169,389,257.38 Yuan | 176,197,030.81 Yuan | -3.86 | | Net Cash Flow from Operating Activities | 90,713,195.38 Yuan | 99,787,186.64 Yuan | -9.09 | | Net Assets Attributable to Shareholders (End of Period) | 5,183,256,511.07 Yuan | 4,895,490,164.33 Yuan | 5.88 | | Total Assets (End of Period) | 14,402,538,375.63 Yuan | 14,885,174,768.82 Yuan | -3.24 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.19 | 0.27 | -29.63 | | Basic EPS (Excluding Non-recurring Items) (Yuan/Share) | 0.18 | 0.19 | -5.26 | | Weighted Average Return on Equity (%) | 3.49 | 5.07 | Decreased by 1.58 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | 3.36 | 3.53 | Decreased by 0.17 percentage points | - Reason for change in net profit attributable to shareholders: Significant impairment provision for fixed assets was made during the period[21] Non-recurring Profit and Loss Items and Amounts This section lists the company's non-recurring profit and loss items for H1 2025, totaling RMB 6,644,313.99 Non-recurring Profit and Loss Items for H1 2025 | Non-recurring Profit and Loss Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -2,431,485.44 | | Government Grants Included in Current Profit/Loss | 9,689,413.22 | | Fair Value Change Gains/Losses and Gains/Losses from Disposal of Financial Assets/Liabilities | 692,855.44 | | Gains/Losses from Entrusted Investments or Asset Management | 11,767,352.18 | | Gains/Losses on Debt Restructuring | -13,367,029.56 | | Other Non-operating Income and Expenses | -5,444,241.61 | | Less: Income Tax Impact | 3,480,453.56 | | Minority Interest Impact (After Tax) | -9,217,903.33 | | Total | 6,644,313.99 | Management Discussion and Analysis Industry and Core Business Overview This section details the company's market position, industry trends, and core business segments in pork, beef/lamb, and branded snack foods - The company is one of the largest food producers and sellers in China, holding a leading position in segments like canned meat, beef/lamb, honey, and milk candy[25] - Pork Industry: The company operates a full industry chain including hog farming, slaughtering, processing, and distribution; H1 2025 saw ample supply and declining prices in the hog farming sector[26][27] - Beef/Lamb Industry: Per capita beef consumption in China is rising with significant growth potential; H1 2025 saw structural adjustments and price recovery in the domestic beef market[31][32] - Branded Food Industry: The sector benefits from policies promoting domestic demand and rising incomes, with future trends toward functional, healthy, casual, and high-end products[33] - The company's core business comprises the meat segment (pork and beef/lamb across farming, slaughtering, and processing) and the branded food segment[34] Discussion and Analysis of Operations Revenue grew 4.03% YoY, but net profit attributable to shareholders fell 30.52% due to fixed asset impairment provisions - In H1 2025, the company achieved operating revenue of RMB 12.07 billion, a YoY increase of 4.03%; net profit attributable to shareholders was RMB 176 million, a YoY decrease of 30.52%[40] - Net profit excluding non-recurring items was RMB 169 million, a YoY decrease of 3.86%; basic earnings per share were RMB 0.19/share, down 29.63% YoY[40] - The company focused on its annual goals of "focusing on meat strategy, optimizing chain layout, and accelerating value creation" through cost reduction and efficiency improvements[39] (I) Key Operational Initiatives The company implemented key initiatives including deepening meat business integration, optimizing costs, and strengthening brand building - Pork Business: Integrated feed business operations, improved formula quality to reduce feed costs, and lowered farming costs by closing inefficient farms and optimizing management[40] - Meat Processing: Shanghai Aisen developed 9 new products; Jiangsu Sushipin used patented "fresh-lock + automatic venting" packaging for its new fresh-braised product line[41][42] - Beef/Lamb Business: New Zealand's Silver Fern Farms controlled costs through factory optimization and launched its first ready-to-heat burger product[42] - Distribution System: Expanded into fourth and fifth-tier cities, cultivated single-product sales for brands like "Dafan" and "Dabaitu Toffee", and penetrated new markets[42] - Brand Building: Increased brand exposure by sponsoring the "HADO 2025 World Cup" and collaborating with a Tencent variety show for the new "Dafan" series[43] - Supporting Mechanisms: Adjusted organizational structure, improved performance incentives, and accelerated innovation at the Bright Meat Technology Center[43][44] - Safety Management: Completed 52 safety inspections, rectifying 212 issues with a 100% correction rate; achieved a 100% pass rate in national and municipal spot checks[45] (II) Operational Performance by Business Segment The hog farming segment incurred losses due to price declines, while the beef/lamb business saw significant profit growth from higher prices and cost controls - Hog Farming: Revenue of RMB 875 million with a net loss of RMB 407 million; a subsidiary's litigation led to a RMB 266 million fixed asset impairment, reducing net profit attributable to parent by RMB 128 million[46] - Hog Slaughtering, Processing & Distribution: Sushipin launched six new "fresh-braised" products; Shanghai Aisen obtained certification for antibiotic-free pork; Shanghai Maling introduced the "Dafan" series using Tetra Pak technology[47][48][49] - Beef/Lamb Business: Silver Fern Farms achieved sales revenue of RMB 7.234 billion and a net profit of RMB 253 million, a YoY increase of 311.81%, driven by higher beef/lamb prices and effective cost reduction[50] - Branded Food Business: Guanshengyuan developed new products like Dabaitu Toffee, integrated online/offline channels, and launched a crossover collaboration with the mobile game "Arknights"[52] Core Competitiveness Analysis The company's core competitiveness lies in its strong brand value, full-chain synergy, R&D capabilities, and unique beef/lamb resource advantages - Brand Value: The company owns a portfolio of renowned domestic and international brands including "Maling B2", "Guanshengyuan", "Dabaitu", "Sushipin", "Lianhao", "Aisen", and "Silver Fern"[53] - Full-Chain Synergy: The pork business operates a complete industry chain from farming to distribution, enhancing its resilience against industry risks[54][55] - Technology and R&D: The company operates three municipal-level technology centers and applied for 39 patents in 2024, enhancing its processing capabilities and product competitiveness[55] - Beef/Lamb Resource Advantage: Through its controlling stake in Silver Fern Farms, New Zealand's largest meat processor, the company commands premium overseas resources and global market channels[55] Key Operational Results This section analyzes changes in key financial statement items, highlighting a 4.03% revenue increase and significant shifts in financial expenses and investment cash flow Analysis of Changes in Financial Statement Items | Item | Current Period (Yuan) | Same Period Last Year (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,069,608,632.09 | 11,601,598,700.01 | 4.03 | | Operating Costs | 10,631,919,811.77 | 10,380,568,578.14 | 2.42 | | Selling Expenses | 443,505,716.81 | 444,682,079.78 | -0.26 | | Administrative Expenses | 465,411,537.67 | 477,423,136.62 | -2.52 | | Financial Expenses | 90,559,206.50 | -10,092,709.02 | 997.27 | | R&D Expenses | 18,854,513.99 | 19,120,841.59 | -1.39 | | Net Cash Flow from Operating Activities | 90,713,195.38 | 99,787,186.64 | -9.09 | | Net Cash Flow from Investing Activities | -312,377,775.07 | -23,702,284.58 | -1,217.92 | | Net Cash Flow from Financing Activities | -297,979,089.87 | -522,887,347.75 | 43.01 | - Reason for change in financial expenses: Increased foreign exchange losses from overseas subsidiaries and decreased interest income from domestic companies[56] - Reason for change in net cash flow from investing activities: Land disposal in the prior period, asset construction by overseas subsidiaries, and changes in domestic term deposits[57] - Reason for change in net cash flow from financing activities: The amount of bank loan repayments was lower than in the same period last year[57] (III) Analysis of Assets and Liabilities Total assets slightly decreased, while net assets attributable to shareholders grew; overseas assets, mainly from Silver Fern Farms, constitute a significant portion Changes in Assets and Liabilities | Item Name | Current Period-End (Yuan) | % of Total Assets | Prior Period-End (Yuan) | % of Total Assets | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,890,260,058.15 | 20.07 | 3,456,429,780.44 | 23.22 | -16.38 | | Accounts Receivable | 1,746,601,735.29 | 12.13 | 1,606,276,506.92 | 10.79 | 8.74 | | Inventories | 2,682,313,520.02 | 18.62 | 2,584,511,761.77 | 17.36 | 3.78 | | Fixed Assets | 3,582,955,231.54 | 24.88 | 3,813,377,432.31 | 25.62 | -6.04 | | Total Assets | 14,402,538,375.63 | - | 14,885,174,768.82 | - | -3.24 | | Short-term Borrowings | 2,761,182,662.54 | 19.17 | 2,936,704,184.48 | 19.73 | -5.98 | | Contract Liabilities | 276,085,965.98 | 1.92 | 407,823,258.46 | 2.74 | -32.30 | | Long-term Borrowings | 152,663,094.14 | 1.06 | 57,163,094.14 | 0.38 | 167.07 | - Overseas assets: RMB 5,822,942,605.77, accounting for 40.43% of total assets[60] - Overseas assets are primarily contributed by Silver Fern Farms Limited in New Zealand, which generated revenue of RMB 7,234,208,879.40 and net profit of RMB 252,591,864.03 in the reporting period[62] - Restricted assets at period-end: Cash of RMB 6,613,704.02 (deposits, pledges, frozen accounts) and fixed assets of RMB 1,954,812,715.68 (mortgages, guarantees, seizures)[63] (IV) Investment Analysis The company's external equity investments slightly decreased, and it utilized derivative instruments, primarily forward foreign exchange contracts, for hedging purposes - External equity investment balance at period-end was RMB 408,023,051.51, compared to RMB 423,606,790.24 at the beginning of the period[65] - Investment income recognized under the equity method was RMB 42,525,977.57[65] Derivative Investments for Hedging Purposes | Derivative Type | Period-End Book Value (RMB 10k) | % of Net Assets | | :--- | :--- | :--- | | Forward Foreign Exchange Contracts | 2,185.98 | 0.42 | | Total | 2,185.98 | 0.42 | - Hedging effectiveness: The hedging activities effectively mitigated foreign exchange risks as intended[67] (VI) Analysis of Major Subsidiaries and Associates Bright Agriculture & Husbandry incurred losses due to hog prices, while Silver Fern Farms' net profit surged on higher meat prices and cost efficiencies Operating Performance of Major Subsidiaries | Company Name | Core Business | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Bright Agriculture & Husbandry Technology Co., Ltd | Hog Farming | 874,934,962.39 | -406,721,383.42 | | Shanghai Maling Food Co., Ltd | Canned Food Production & Sales | 190,955,486.90 | 14,924,545.22 | | Shanghai Guanshengyuan Food Co., Ltd | Snack Food Production & Sales | 739,592,695.72 | 161,673,201.92 | | Silver Fern Farms Limited | Beef, Lamb, Venison Slaughter & Sales | 7,234,208,879.40 | 252,591,864.03 | - Bright Agriculture & Husbandry Technology Co., Ltd performance fluctuation: Affected by weak hog prices, the company's hog farming revenue was RMB 875 million with a net loss of RMB 407 million; a subsidiary's litigation resulted in a RMB 266 million fixed asset impairment, reducing net profit attributable to parent by RMB 128 million[69] - Silver Fern Farms Limited performance fluctuation: Benefiting from rising beef and lamb prices and effective cost-saving measures, Silver Fern Farms achieved sales revenue of RMB 7.234 billion and a net profit of RMB 253 million, a YoY increase of 311.81%[69] Other Disclosures The company faces multiple risks including macroeconomic conditions, African swine fever, pork industry volatility, and overseas operational challenges - Macroeconomic Risk: Weakening global economic growth, trade barriers, geopolitical risks, and insufficient domestic demand may adversely affect the company's performance[70] - African Swine Fever Risk: The company prioritizes prevention in its hog farming operations, strictly implementing biosecurity and quarantine measures[70] - Pork Industry Volatility Risk: The hog farming sector faces risks from market fluctuations, disease, rising feed costs, policy changes, and environmental pressures, leading to cyclical profitability[71] - Overseas Operational Risk: The performance of New Zealand's Silver Fern Farms is subject to weather changes, environmental legislation, and international exchange rate fluctuations, which may cause volatility[71] Corporate Governance, Environment, and Society Changes in Directors and Senior Management Independent directors Mr. Tian Rencan and Mr. Hong Liang resigned upon term completion and were replaced by Mr. Yu Leng and Mr. Wang Jie - Independent directors Mr. Tian Rencan and Mr. Hong Liang resigned from the 9th Board of Directors upon completion of their terms[74] - At the shareholders' meeting on June 11, 2025, Mr. Yu Leng and Mr. Wang Jie were elected as new independent directors to the 9th Board of Directors[74] Profit Distribution or Capitalization of Capital Reserve Plan The company's proposed semi-annual profit distribution or capitalization of capital reserve plan is "None" - Proposed semi-annual profit distribution or capitalization of capital reserve plan: None[6] - Whether to distribute or capitalize: No[75] - Bonus shares, dividends, and capitalization per 10 shares are not applicable[75] Environmental Information Disclosure Six of the company's subsidiaries are included in the list of enterprises required to disclose environmental information - Number of enterprises on the mandatory environmental information disclosure list: 6[77] - Key disclosing entities include: Shanghai Maling Food Co., Ltd, Shanghai Aisen Meat Food Co., Ltd, Shanghai Maling Zheng Guanghe (Mianyang) Co., Ltd, Jiangsu Huai'an Sushipin Co., Ltd, Bright Agriculture & Husbandry Technology Co., Ltd, and Gaoyou Pinwang Agriculture & Husbandry Technology Co., Ltd[77] Significant Matters Fulfillment of Commitments The actual controller and controlling shareholder have strictly fulfilled their commitments to resolve horizontal competition issues - Bright Food (Group) Co., Ltd committed not to engage in businesses that substantively compete with the company and has strictly adhered to this commitment[80] - Shanghai Yimin Food No.1 Factory (Group) Co., Ltd committed not to engage in businesses that compete or may constitute substantive horizontal competition and has strictly adhered to this commitment[80] - Bright Food (Group) Co., Ltd committed that its beef cattle, feed, and hog farming businesses would be primarily operated by Shanghai Maling and has strictly adhered to this commitment[80] Major Litigation and Arbitration The company is involved in several major lawsuits concerning loan, sales, and construction contract disputes, with some cases in the enforcement stage - Shanghai Bright Meat Group Co., Ltd vs. China Merchants Bank et al. (entrusted loan contract dispute): The company won the case in the second instance, and it is now under enforcement, with partial auction proceeds received[84] - Shanghai Dingying Agricultural Co., Ltd vs. Ningxia Zhongle Forage Co., Ltd (contract dispute): Dingying won the case in the second instance, applied for enforcement, reached a settlement, and received a total of RMB 6.72 million[84][85] - Jiangsu Fengda Guorun Construction Group Co., Ltd vs. Hebei Zhongwang Agriculture & Husbandry Technology Co., Ltd (construction contract dispute): Hebei Zhongwang lost the case, and the court ordered a debt-for-asset swap, with foreclosed assets worth RMB 20,356,800 transferred to the plaintiff[85] Significant Related-Party Transactions The company engages in financial service transactions with Bright Food Group Finance Co., Ltd and routine operational transactions with other related parties - Transactions with Bright Food Group Finance Co., Ltd: As of June 30, 2025, the company had deposits of RMB 2,508,893,577.01 and loans of RMB 150,000,000.00[86][87] Routine Related-Party Transactions (Purchase of Goods/Services) | Related Party | Transaction Content | Current Period Amount (Yuan) | | :--- | :--- | :--- | | Bright Food (Group) Co., Ltd and other subsidiaries | Purchase of goods/services | 61,182,856.85 | | Shanghai Wufeng Commerce Co., Ltd | Purchase of goods/services | 185,506,720.17 | | Associates | Purchase of goods/services | 250,245,254.69 | Routine Related-Party Transactions (Sale of Goods/Services) | Related Party | Transaction Content | Current Period Amount (Yuan) | | :--- | :--- | :--- | | Bright Dairy & Food Co., Ltd and its subsidiaries | Sale of goods/services | 18,213,876.26 | | Bright Food (Group) Co., Ltd and other subsidiaries | Sale of goods/services | 54,693,654.84 | | Associates | Sale of goods/services | 323,459,401.20 | - Related-party debt and credit: The company and Yimin Food Group provided financial assistance totaling RMB 200 million to Bright Agriculture & Husbandry based on their shareholding ratios, with the company providing RMB 102 million and Yimin Food Group providing RMB 98 million[91][92] Significant Contracts and Their Performance The company's total guarantees for subsidiaries amounted to RMB 100 million, representing 1.93% of its net assets - External guarantees (excluding those for subsidiaries): RMB 0[99] - Total guarantees provided to subsidiaries during the period: RMB 100,000,000.00[99] - Total outstanding guarantees for subsidiaries at period-end: RMB 100,000,000.00, representing 1.93% of the company's net assets[99] - Guarantees provided for entities with an asset-liability ratio exceeding 70%: RMB 100,000,000.00[99] Explanation of Other Significant Matters The company's New Zealand subsidiary, Silver Fern Farms, procures raw materials from local farm operators through its minority shareholder, Silver Fern Co-operative - The company's New Zealand subsidiary, Silver Fern Farms, procures raw materials through the Silver Fern Co-operative from its individual shareholders and other local farm operators[100] - As of June 30, 2025, the procurement amount through the Silver Fern Co-operative was equivalent to RMB 3,206,152,098.05[100] - The Silver Fern Co-operative did not generate any profit from these transactions[100] Changes in Share Capital and Shareholders Changes in Share Capital The company's total number of shares and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total number of shares and share capital structure did not change[103] Shareholder Information As of the period-end, the company had 43,579 common shareholders, with Shanghai Yimin Food No.1 Factory (Group) Co., Ltd as the controlling shareholder - Total number of common shareholders at period-end: 43,579[103] Top Ten Shareholders | Shareholder Name | Shares Held (Shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shanghai Yimin Food No.1 Factory (Group) Co., Ltd | 298,386,000 | 31.82 | State-owned legal person | | Bright Food (Group) Co., Ltd | 55,978,874 | 5.97 | State-owned legal person | | Hong Kong Securities Clearing Company Ltd | 40,801,192 | 4.35 | Unknown | | Cinda Guocui Equity Investment Fund (Shanghai) Partnership (LP) | 11,227,902 | 1.2 | Unknown | | China Construction Bank - Harvest Agriculture Industry Equity Fund | 9,522,327 | 1.02 | Unknown | | National Social Security Fund Portfolio 503 | 8,000,005 | 0.85 | Unknown | | Guo Dawei | 6,820,000 | 0.73 | Unknown | | China Merchants Bank - Southern CSI 1000 ETF | 6,088,700 | 0.65 | Unknown | | ICBC - CSI Shanghai SOE ETF | 6,060,400 | 0.65 | Unknown | | Agricultural Bank of China - Dacheng New-Growth Industry Hybrid Fund | 5,586,100 | 0.6 | Unknown | - Shanghai Yimin Food No.1 Factory (Group) Co., Ltd is the company's controlling shareholder, and Bright Food (Group) Co., Ltd is the actual controller[106] Bond-related Matters Corporate Bonds and Non-financial Enterprise Debt Financing Instruments The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[110] Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[110] Financial Report Audit Report This semi-annual report has not been audited - This semi-annual report is unaudited[5][112] Financial Statements This section presents the consolidated and parent company financial statements for the semi-annual period of 2025 Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Cash and Cash Equivalents | 2,890,260,058.15 | | Accounts Receivable | 1,746,601,735.29 | | Inventories | 2,682,313,520.02 | | Fixed Assets | 3,582,955,231.54 | | Total Assets | 14,402,538,375.63 | | Short-term Borrowings | 2,761,182,662.54 | | Accounts Payable | 1,729,764,702.27 | | Total Liabilities | 7,361,460,952.30 | | Total Equity Attributable to Parent Company | 5,183,256,511.07 | | Total Equity | 7,041,077,423.33 | Key Data from Consolidated Income Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 12,069,608,632.09 | | Total Operating Costs | 11,672,562,425.19 | | Operating Profit | 264,794,522.34 | | Total Profit | 259,445,280.73 | | Net Profit | 105,965,474.17 | | Net Profit Attributable to Parent Company Shareholders | 176,033,571.37 | | Basic Earnings Per Share (Yuan/Share) | 0.19 | Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 90,713,195.38 | | Net Cash Flow from Investing Activities | -312,377,775.07 | | Net Cash Flow from Financing Activities | -297,979,089.87 | | Net Increase in Cash and Cash Equivalents | -567,130,625.68 | | Cash and Cash Equivalents at End of Period | 2,883,646,354.13 | Company Basic Information This section outlines the company's background, listing information, industry, registered capital, and ultimate controller - The company was established as a joint-stock limited company in Shanghai on June 27, 1997, and was listed on the Shanghai Stock Exchange in July 1997[141] - Registered capital is RMB 937.73 million, and the company belongs to the food processing industry[141] - Core business activities include the development, production, and sale of meat and snack foods, with main products including pork, beef, lamb, canned goods, honey, and milk candy[141] - The parent company is Shanghai Yimin Food No.1 Factory (Group) Co., Ltd, and the ultimate controller is Bright Food (Group) Co., Ltd[141] Basis of Preparation for Financial Statements The financial statements are prepared in accordance with PRC Accounting Standards for Business Enterprises and on a going concern basis - These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and relevant regulations from the China Securities Regulatory Commission[142] - The Group has assessed its ability to continue as a going concern for the next 6 months from January 1, 2025, and found no material uncertainties, thus preparing the statements on a going concern basis[143] Significant Accounting Policies and Estimates This section details the company's specific accounting policies for financial instruments, inventory, fixed assets, revenue recognition, and other key areas - The company's fiscal year is from January 1 to December 31, and the functional currency is the Renminbi (RMB)[144][147] - Materiality standards: Significant construction in progress is defined as ≥ RMB 30 million; significant long-term equity investments in joint ventures or associates are defined as ≥ 1% of the Group's total assets[148][260] - Financial instruments are classified as financial assets at amortized cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through profit or loss[158] - Inventory is valued using the weighted average method upon dispatch; subsidiary SFF uses the retail method for meat and related product inventories[185] - Revenue recognition: Revenue is recognized when the customer obtains control of the related goods or services[228] - Hedge accounting: The company formally designates and documents its hedging relationships, risk management objectives, and strategies, and continuously assesses hedge effectiveness[249][250] Taxes This section discloses the company's main tax types and rates, along with various tax incentives related to its agricultural and high-tech operations Main Tax Types and Rates | Tax Type | Rate | | :--- | :--- | | Value-Added Tax (VAT) | 0%, 2%, 3%, 5%, 6%, 9%, 11%, 13% | | Corporate Income Tax | 0%, 15%, 16.5%, 17%, 19%, 20%, 21%, 25%, 28% | | New Zealand Goods and Services Tax (GST) | 15% | - Tax incentives: VAT exemption for fresh meat products, feed products, and self-produced agricultural products sold by agricultural producers[263][264] - Tax incentives: Income tax exemption for primary processing of meat products; a reduced corporate income tax rate of 15% for high-tech enterprises; preferential policies for small and micro enterprises extended to December 31, 2027[264][265][266] - Tax incentives: Exemption from stamp duty, property tax, and urban land use tax for commodity reserve enterprises[267][268] Notes to the Consolidated Financial Statements This section provides detailed notes on items in the consolidated financial statements, including balances, changes, and valuation methods - Cash and cash equivalents at period-end were RMB 2,890,260,058.15, including RMB 1,767,093,577.01 deposited with Bright Food Group Finance Co., Ltd[270] - Derivative financial assets at period-end were RMB 37,233,138.78, primarily representing the fair value changes of forward foreign exchange contracts[272] - Accounts receivable book value at period-end was RMB 1,746,601,735.29, with a significant portion related to the New Zealand subsidiary, for which credit loss provisions are assessed individually[281][283] - Inventory book value at period-end was RMB 2,682,313,520.02, including RMB 583,795,940.32 in consumable biological assets[313] - Fixed assets book value at period-end was RMB 3,582,955,231.54; an impairment provision of RMB 266,222,035.94 was made during the period[331][437] - Short-term borrowings at period-end were RMB 2,761,182,662.54, including secured, guaranteed, and unsecured loans[368] - Operating revenue for the period was RMB 12,069,608,632.09, with the beef and lamb business contributing RMB 7,385,084,862.08[419][422] - Asset impairment loss for the period was -RMB 266,222,035.94, primarily related to fixed asset impairment[437][439] R&D Expenses Total R&D expenditure for the period was RMB 18,854,513.99, all of which was expensed R&D Expense Composition | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 12,358,118.65 | 11,048,311.92 | | Material Costs | 5,288,228.31 | 5,364,211.95 | | Utility Fees | 25,475.80 | 25,860.88 | | Machine Depreciation | 735,574.54 | 1,070,290.07 | | Others | 447,116.69 | 1,612,166.77 | | Total | 18,854,513.99 | 19,120,841.59 | - All R&D expenditures for the current period were expensed[466] Changes in Consolidation Scope There were no changes in the consolidation scope due to business combinations or disposals during the reporting period - The company had no business combinations under common control during the reporting period[467] - The company had no business combinations not under common control during the reporting period[467] - The company had no reverse acquisitions during the reporting period[467] - The company had no transactions or events leading to a loss of control over subsidiaries during the reporting period[467] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates, including key financial information for significant non-wholly-owned subsidiaries - The company has several subsidiaries, including Shanghai Maling Food Co., Ltd, Shanghai Aisen Meat Food Co., Ltd, and Silver Fern Farms Limited[469] - Significant non-wholly-owned subsidiaries include Jiangsu Sushipin Co., Ltd, Jiangsu Huai'an Sushipin Co., Ltd, Bright Agriculture & Husbandry Technology Co., Ltd, and Silver Fern Farms Limited[473] - For Silver Fern Farms Limited, the minority interest is 50%; profit attributable to minority shareholders for the period was RMB 126,295,932.01, and the period-end minority interest balance was RMB 1,670,210,642.89[473] - A significant joint venture is Shanghai Shen-Mei Beverage and Food Co., Ltd, which is accounted for using the equity method[475] Government Grants The company received various government grants during the period, totaling RMB 10,413,375.55 recognized in current profit or loss Liability Items Involving Government Grants (Deferred Income) | Item | Period-End Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | | Huatuo Relocation Project | 7,146,203.41 | Asset-related | | Smart, Healthy, Ecological, and Beautiful Integrated Pig Farm Construction Project | 475,169.17 | Income-related | | Yangpu District Trademark Subsidy | 150,000.00 | Income-related | | VAT Refund | 4,800,000.00 | Income-related | | Others | 15,706.00 | Income-related | | Total | 12,587,078.58 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Fiscal Subsidies | 6,878,002.04 | 10,047,281.00 | | Meat Reserve Subsidies | 391,882.58 | 1,980,000.00 | | Training and Employment Stability Subsidies | 362,125.19 | 1,394,538.59 | | Agricultural Subsidies | 1,528,469.00 | 143,900.00 | | Other Miscellaneous Subsidies | 1,252,896.74 | 2,540,049.04 | | Total | 10,413,375.55 | 16,614,907.83 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks through various measures including credit assessments, cash management, and hedging - The company faces various financial risks in its operations: credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other price risks)[484] - Credit Risk Management: The company places cash funds primarily with reputable financial institutions and has policies to control credit risk exposure for receivables[485][486] - Liquidity Risk Management: Each subsidiary manages its own cash flow, regularly monitoring liquidity needs to ensure sufficient cash reserves and marketable securities[487] - Market Risk Management: The company monitors the impact of interest rate changes on cash flow risk and manages foreign currency exposure by trading currencies at market rates when necessary[488][489] - Hedging Activities: SFF designates forward foreign exchange contracts as highly effective hedging instruments to manage cash flow risks arising from expected sales in USD, RMB, CAD, EUR, and GBP[491] Fair Value Disclosure This section discloses the fair value of assets and liabilities measured at fair value, primarily consisting of financial assets and liabilities Period-End Fair Value of Assets and Liabilities Measured Continuously at Fair Value | Item | Period-End Fair Value (Yuan) | | :--- | :--- | | Total Assets Measured Continuously at Fair Value | 186,495,134.57 | | Trading Financial Assets | 60,494,616.00 | | Of which: Equity Instrument Investments | 23,261,477.22 | | Of which: Derivative Financial Assets | 37,233,138.78 | | Receivables Financing | 126,000,518.57 | | Total Liabilities Measured Continuously at Fair Value | 15,373,360.69 | | Trading Financial Liabilities | 15,373,360.69 | | Of which: Derivative Financial Liabilities | 15,373,360.69 | - Level 1 Fair Value Measurement: Primarily listed stock investments, with fair value determined by public market quotes[502] - Level 2 Fair Value Measurement: Mainly forward foreign exchange contracts and receivables financing held by SFF, with fair value determined by forward quotes and market yields of similar instruments[503] - Level 3 Fair Value Measurement: Primarily unlisted equity investments, for which management considers the fair value to be approximate to the book investment cost[504] Related Parties and Transactions This section details the company's related parties and various transactions including sales, purchases, leases, guarantees, and financing - The company's parent is Shanghai Yimin Food No.1 Factory (Group) Co., Ltd (31.82% shareholding); the ultimate controller is Bright Food (Group) Co., Ltd[507] - Sales/Purchases Transactions: Purchases from Bright Food Group amounted to RMB 61,182,856.85, while sales to associates were RMB 323,459,401.20[514][516] - Related-Party Leases: The company recognized RMB 1,100,917.44 in rental income as a lessor (from Bright Dairy) and paid RMB 4,545,804.88 in rent as a lessee (to Bright Food Group)[518][519] - Related-Party Guarantees: As of June 30, 2025, guarantees totaling RMB 30,975,000.00 provided by related parties had been fully discharged[520] - Related-Party Financing: The company borrowed RMB 98,000,000.00 from Shanghai Yimin Food No.1 Factory (Group) Co., Ltd[523] - Other Related-Party Transactions: The New Zealand subsidiary SFF procured raw materials through its minority shareholder SFF Co-operative, with a transaction value of RMB 3,206,152,098.05 in H1 2025[533] Notes to Parent Company Financial Statements This section provides detailed notes on the parent company's key financial items, reflecting its standalone financial performance - Parent company's accounts receivable had a gross balance of RMB 67,700,122.81 with a bad debt provision of RMB 12,878,043.87[537] - Parent company's other receivables had a gross balance of RMB 509,285,531.92 with a bad debt provision of RMB 267,086,771.17[552][553] - Parent company's long-term equity investments had a book value of RMB 4,200,308,860.01, primarily investments in subsidiaries[558] Parent Company Operating Revenue and Costs | Item | Current Period (Yuan) | | :--- | :--- | | Operating Revenue | 452,507,165.12 | | Operating Costs | 387,990,867.79 | - Parent company's investment income for the period was RMB 291,539,167.34, mainly from long-term equity investments accounted for under the cost method[572] Supplementary Information This section provides supplementary details on non-recurring items and key performance ratios - Total non-recurring profit and loss for the current period: RMB 6,644,313.99[573] Return on Equity (ROE) and Earnings Per Share (EPS) | Profit for the Period | Weighted Average ROE (%) | Basic EPS (Yuan/Share) | | :--- | :--- | :--- | | Net profit attributable to common shareholders | 3.49 | 0.19 | | Net profit attributable to common shareholders (excluding non-recurring items) | 3.36 | 0.18 |