NWF(SH:600975)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥2,514,952,130.30, representing a 68.39% increase compared to ¥1,493,538,192.27 in the same period last year[25]. - The net profit attributable to shareholders of the listed company was -¥614,244,370.95, compared to -¥222,396,804.39 in the previous year, indicating a significant loss[25]. - The net cash flow from operating activities was -¥273,930,458.98, an improvement from -¥450,779,713.59 in the same period last year[25]. - The total assets at the end of the reporting period were ¥12,505,460,380.80, a 23.77% increase from ¥10,103,903,226.03 at the end of the previous year[25]. - The net assets attributable to shareholders of the listed company increased by 32.95% to ¥3,581,393,469.11 from ¥2,693,738,630.22 at the end of the previous year[25]. - The company's operating costs increased by 72.19% to ¥2,827,279,405.73, primarily due to a significant year-on-year increase in the scale of live pig sales[120]. - The company invested ¥244,944,292.46 during the reporting period, representing a 101.17% increase compared to ¥121,760,000 in the same period last year[125]. Operational Capacity and Production - The significant increase in operating revenue was primarily due to a substantial growth in the scale of hog sales during the reporting period[26]. - The company has completed a slaughter capacity layout of 2.05 million pigs per year[34]. - The new pig slaughterhouse project in Chenzhou is currently under construction, with an annual capacity of 850,000 pigs expected to be operational in 2024[58]. - The company has established a pig slaughtering and cold chain logistics project with an annual capacity of 500,000 pigs, expected to be fully operational by the end of 2023[90]. - The company has nearly 800,000 tons of existing feed capacity, with an additional 420,000 tons under construction[91]. - The company has a slaughtering capacity of 700,000 pigs per year at the Hunan Changzhutan Guanglian Pig Trading Market, with additional projects expected to add 500,000 and 850,000 pigs per year respectively[138]. Market and Sales Strategy - The company is a major exporter of live pigs to Hong Kong and Macau, enhancing its market presence[55]. - The company primarily sells piglets based on weekly guidance prices, focusing on large pig farming groups in Hunan and surrounding provinces[37]. - The company achieved domestic sales revenue of RMB 151,579.22 million, an increase of 73.02% year-on-year, primarily due to a significant growth in the scale of hog slaughtering[142]. - Sales revenue from trade and other activities reached RMB 24,062.96 million, up 158.52% year-on-year, driven by increased sales volume of raw materials and hog trading[143]. - The slaughtering and refrigeration business generated sales revenue of RMB 31,813.86 million, reflecting a 35.08% increase year-on-year, attributed to higher slaughter volumes[145]. Biosecurity and Disease Management - The company has established a comprehensive biosecurity management system to prevent African swine fever, implementing strict disinfection protocols and training for all staff[77]. - The company is increasing disease monitoring efforts to mitigate risks associated with pig diseases, particularly African swine fever[173]. - The company is enhancing its biosecurity measures to prevent disease outbreaks and ensure production stability[173]. - The company has implemented a risk-sharing mechanism for disease prevention, involving all management and staff in the pig farming sector[200]. Research and Development - The company has actively engaged in technology research and development, collaborating with institutions like the Chinese Academy of Sciences to enhance breeding efficiency and reduce production costs[78]. - The company has submitted five technology project applications during the reporting period, aiming to advance agricultural technology standards[78]. - The company has implemented genome selection technology to enhance breeding efficiency and is developing liquid fermentation feed technology to improve hog health[146]. - The company has launched a new information system integrating various operational aspects, improving overall operational efficiency[80]. Strategic Initiatives and Future Plans - The company aims to build a "safe, nutritious, efficient, high-quality, low-consumption, green, and ecological" pig industry system[31]. - The company is focusing on the "company + appropriate scale small farm" model to enhance biosecurity and management practices[76]. - The company is committed to improving biosecurity measures, including monthly performance assessments and enhanced disease detection protocols[87]. - The company is focused on expanding its breeding scale through leasing pig farms[179]. - The company is optimizing its regional strategic layout by integrating the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, and Hunan to enhance production capabilities[200]. Challenges and Risks - The company faces a risk of approximately 10% mortality rate in pig farming, with a general survival rate of around 90%[173]. - The company is actively managing risks related to raw material price fluctuations and environmental policy changes[176]. - Financial expenses increased by 40.04% year-on-year, mainly due to unrecognized financing costs and reduced interest income[147]. Subsidiary Performance - Subsidiary Hunan Youxian Food Co., Ltd. reported a total asset of 1,405.33 million CNY and a net asset of -3,644.53 million CNY, with a net profit of -18.07 million CNY[184]. - Hunan Daqi Animal Husbandry Co., Ltd. has total assets of 39,293.17 million CNY and a net asset of -5,459.50 million CNY, with a net profit of -3,084.77 million CNY[185]. - Hunan Changzhutan Guanglian Pig Trading Market Co., Ltd. reported total assets of 68,827.25 million CNY and a net asset of 15,269.77 million CNY, with a net profit of -374.18 million CNY[185]. - Hunan Wangling Wuzhong Feed Co., Ltd. reported total assets of 3,464.55 million CNY and a net asset of 1,327.66 million CNY, with a net profit of 92.33 million CNY[194]. - Hunan Xiangpig Technology Co., Ltd. has total assets of 18,682.6 million CNY and a net asset of 36,905.28 million CNY, with a net profit of 1,406.27 million CNY[194].