仙坛股份(002746) - 2020 Q2 - 季度财报

Part I Important Notes, Table of Contents and Definitions This section provides crucial disclaimers, outlines the report structure, and defines key terms for clarity Important Notes The Board, Supervisory Committee, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[5] - Company head Wang Shouchun, chief accountant Xu Shiwei, and head of accounting department Tan Maozhu declare the financial report in this semi-annual report is true, accurate, and complete[5] Risk Factors The company faces multiple risks from poultry diseases, price volatility, and regulatory changes impacting operations and profitability - Poultry disease and major natural disaster risks: chicken diseases (e.g., avian influenza) may lead to reduced output, increased production costs, higher epidemic prevention investment, product quality issues, and market demand contraction[5][8] - Product sales price fluctuation risk: prices of white feather broiler chicken products and commercial white feather broilers are affected by supply and demand, feed costs, diseases, food safety incidents, potentially leading to significant declines in profitability or even losses[9] - Raw material supply and price fluctuation risk: prices of feed raw materials like corn and soybean meal are affected by various factors, and significant increases will raise production costs[10] - Risks from cooperative farming model: decreased enthusiasm of cooperative farms, termination of cooperation, or non-compliant farming may affect company production, operations, and product quality[11][14] - Risks of increased food safety and quality standards: lax quality control or industry incidents may affect product sales and brand, and higher national standards may increase operating costs[15] Profit Distribution Plan The company plans no cash dividends, bonus shares, or capital reserve conversions for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[16] Table of Contents This report's table of contents lists twelve main chapters, covering key disclosures and financial statements - The report table of contents includes twelve main chapters, with a clear structure[19] Definitions This section defines common terms used in the report, ensuring accurate understanding of its content Main Definitions | Term | Definition | | :--- | :--- | | Company, Xiantan Shares | Shandong Xiantan Co., Ltd | | Xiantan Food | Shandong Xiantan Food Co., Ltd., a wholly-owned subsidiary of the company | | Xiantan Oil | Yantai Xiantan Oil Co., Ltd., a wholly-owned subsidiary of the company | | Xiantan Hong Food | Shandong Xiantan Hong Food Co., Ltd., a wholly-owned subsidiary of the company | | Xiantan Xian Food | Shandong Xiantan Xian Food Co., Ltd., a wholly-owned subsidiary of the company | | Xiantan Qing Food | Shandong Xiantan Qing Food Co., Ltd., a wholly-owned subsidiary of the company | | Xiantan Penglai Poultry | Shandong Xiantan Penglai Poultry Co., Ltd., a controlling subsidiary of the company | | Xiantan De Bio | Shandong Xiantan De Biotechnology Co., Ltd., a controlling subsidiary of the company | | Xiantan Zhucheng Food | Shandong Xiantan Zhucheng Food Co., Ltd., a controlling subsidiary of the company | | Xiantan Vocational Skills Training School | Yantai Muping Xiantan Vocational Skills Training School Co., Ltd., a wholly-owned subsidiary of the company | | SZSE | Shenzhen Stock Exchange | | CSRC | China Securities Regulatory Commission | | Hexin | Hexin Certified Public Accountants (Special General Partnership), the audit firm engaged by the company | | Company Law | Company Law of the People's Republic of China | | Securities Law | Securities Law of the People's Republic of China | | Reporting Period | January 1, 2020 to June 30, 2020 | | Yuan | Renminbi Yuan | Part II Company Profile and Key Financial Indicators This section provides essential company information and a summary of key financial performance metrics Company Basic Information The company, Xiantan Shares (002746), is listed on the SZSE with Wang Shouchun as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xiantan Shares | | Stock Code | 002746 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Shandong Xiantan Co., Ltd | | Legal Representative | Wang Shouchun | Contact Information The company provides contact details for its Board Secretary and Securities Affairs Representative for investor inquiries Contacts and Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Xu Shiwei | Muping Industrial Park (East City), Yantai, Shandong | 05354658717 | 05354658318 | xtzq@sdxiantan.com | | Securities Affairs Representative | Wang Xinbo | Muping Industrial Park (East City), Yantai, Shandong | 05354658717 | 05354658318 | xtzq@sdxiantan.com | Other Information The company's registered and office addresses, contact details, and information disclosure channels remained unchanged - The company's registered address, office address, postal code, website, and email remained unchanged during the reporting period[28] - The company's selected information disclosure newspaper name, the CSRC-designated website address for the semi-annual report, and the location for the semi-annual report remained unchanged during the reporting period[29] Key Accounting Data and Financial Indicators Operating revenue and net profit declined year-on-year, primarily due to lower chicken product sales prices, while total assets and net assets slightly increased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period | Prior Year Same Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 1,533,155,756.21 | 1,552,189,705.67 | -1.23% | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 278,572,250.72 | 402,689,699.53 | -30.82% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses (yuan) | 239,057,617.67 | 382,633,573.57 | -37.52% | | Net Cash Flow from Operating Activities (yuan) | 339,020,304.27 | 370,933,036.07 | -8.60% | | Basic Earnings Per Share (yuan/share) | 0.60 | 0.87 | -31.03% | | Diluted Earnings Per Share (yuan/share) | 0.60 | 0.87 | -31.03% | | Weighted Average Return on Net Assets | 8.26% | 15.35% | -7.09% | | Total Assets (yuan) | 4,330,029,851.95 | 4,317,664,865.38 | 0.29% | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 3,388,929,719.77 | 3,295,834,473.45 | 2.82% | Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between Chinese and international or overseas accounting standards - The company's reporting period showed no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[33] - The company's reporting period showed no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[34] Non-recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to 39.51 million yuan, mainly from fair value changes in financial assets and government subsidies Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off portion of asset impairment provisions) | -1,095,406.83 | | Government subsidies recognized in profit or loss for the current period (excluding those closely related to the company's ordinary operations and enjoyed at fixed or quantitative standards set by the state) | 851,071.83 | | Gains or losses from changes in fair value of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other debt investments, as well as investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities, and other debt investments, excluding effective hedge accounting related to the company's normal operating activities | 36,593,509.52 | | Other non-operating income and expenses apart from the above | -135,519.10 | | Less: Income tax impact | -3,993,019.37 | | Impact on minority interests (after tax) | 692,041.74 | | Total | 39,514,633.05 | - The company's reporting period showed no reclassification of non-recurring gains and losses items as recurring gains and losses[38] Part III Company Business Overview This section outlines the company's core business activities, industry position, and competitive advantages Main Businesses Engaged by the Company During the Reporting Period The company's main business remained unchanged, encompassing a full industrial chain from breeding to chicken product sales, ensuring efficiency and food safety - The company's main business remained unchanged, primarily parent broiler breeding, chick hatching, feed production, commercial broiler farming and slaughtering, chicken product processing, and sales[42] - The company has formed an operating model covering the entire industrial chain, effectively ensuring production supply, improving operational efficiency, and enabling effective food quality and safety monitoring[43] Main Business and Operating Model The company's core business involves parent broiler breeding, chick hatching, feed production, commercial broiler farming, slaughtering, processing, and sales of chicken products - The company's main business remained unchanged, with main products being commercial broilers and chicken products, including frozen cut chicken products, fresh chicken products, and prepared foods[42] - The company's operating model covers the entire industrial chain from parent broiler breeding to chicken slaughtering and processing, enhancing efficiency and food safety control[43] Parent Broiler Breeding Operating Model All parent broiler chicks are externally sourced, then reared and hatched into commercial chicks for internal use by company and cooperative farms - Parent broiler chicks are all purchased directly from producers, and hatched commercial chicks are for the company's own farms and cooperative farms[44] Commercial Chicken Farming Model The company utilizes both its own farms and a "company + base + farm" cooperative model under "nine unifications" management for commercial broiler farming - Commercial broiler farming business is carried out by own farms and cooperative farms, most supplied for internal slaughtering and processing, a small portion sold externally[45] - The cooperative farming model adopts "nine unifications" management, including unified site selection, construction standards, feed, chicks, medicines, recycling, logistics, epidemic prevention, and testing[45] - The company ensures effective recovery of commercial broilers by setting settlement prices higher than market prices and collecting farming risk deposits[46] Feed Operating Model The company's feed mill independently develops and produces feed, exclusively supplying its own and cooperative farms - The company's feed mill independently develops formulas and produces finished feed, all supplied to the company's own farms and cooperative farms[47] Chicken Product Operating Model Qualified commercial adult chickens are processed into various chicken products and distributed directly or through dealers to end customers - Qualified commercial adult chickens are slaughtered and processed by subsidiaries into frozen cut chicken products, fresh chicken products, and prepared foods[48] - Products are supplied directly to large food processing plants, fast-food enterprises, or sold to end customers through distributors[48] Industry Development Status The company operates in the white feather broiler industry, characterized by integrated operations, cyclicality, regional concentration, and diminished seasonality - The company operates in the livestock industry (A03), with an industrial chain based on a multi-generational broiler breeding system ("great-grandparent - grandparent - parent - commercial")[50] - The company has achieved integrated operations and full industrial chain coverage from breeding to chicken product processing and sales, enhancing overall competitiveness in food safety traceability[50] - The broiler farming and slaughtering and processing industry is subject to certain cyclicality due to supply and demand, but with increased scale of farming, the industry's cyclical performance will tend to flatten[57] - Industry operations are regional, with commercial broiler farming mainly concentrated in Shandong, Hebei, Jiangsu, Liaoning, and Henan[58] - Under large-scale farming, seasonal impact is already small due to the use of temperature and humidity control equipment[59] Company's Industry Situation The company operates in the livestock industry (A03), specializing in white feather broiler farming and processing with an integrated industrial chain - The company operates in the livestock industry (A03), mainly dealing in white feather broilers and their chicken products[50] - The company's business segments cover parent broiler breeding, chick hatching, feed production, commercial broiler farming and slaughtering, chicken product processing and deep processing, achieving integrated operations and full industrial chain coverage[50] Relationship Between the Company's Industry and Upstream/Downstream Industries The company's integrated operations effectively manage risks across its closely linked upstream (feed, breeding) and downstream (catering, processing) industries - Upstream industries include planting of agricultural products like corn and soybeans, grandparent broiler breeding, and production of vaccines and veterinary drugs[51] - Downstream industries include catering, meat processing, poultry wholesale markets, and supermarkets[51] - The company's industrial chain covers breeding to chicken product processing and feed production, largely integrating and eliminating internal risks within the industrial chain[52] Company's Industry Position The company holds a significant industry position through vertical integration, numerous honors, and certifications, serving as a premium supplier to major clients - The company is currently a Vice President Unit of China Animal Agriculture Association Poultry Branch, a Standing Director Unit of China Meat Association, and has received honors such as National Key Leading Enterprise in Agricultural Industrialization and China Well-known Trademark[55] - The company has obtained ISO9001, ISO22000, OHSAS18001, ISO14001 management system certifications, and its technical center is CNAS accredited[56] - The company is a high-quality supplier for domestic fast-food and food processing enterprises such as KFC, Wallace, Shuanghui, and Jinluo[56] Cyclicality, Regionality, and Seasonality of the Broiler Farming and Processing Industry The broiler industry exhibits cyclicality, regional concentration in key agricultural areas, and reduced seasonal impact due to modern farming practices - The broiler farming and slaughtering and processing industry is subject to certain cyclicality due to supply and demand, but with increased scale of farming, the industry's cyclical performance will tend to flatten[57] - Commercial broiler farming is mainly concentrated in Shandong, Hebei, Jiangsu, Liaoning, and Henan, due to proximity to feed raw material production areas, numerous large-scale farms, and suitable climate[58] - Under large-scale farming, due to the use of temperature and humidity control equipment, seasonal impact on commercial broiler growth and egg production has diminished[59] Significant Changes in Major Assets Construction in progress increased significantly by 173.7% due to new project investments, while other major assets remained stable Significant Changes in Major Assets | Major Asset | Significant Change Explanation | | :--- | :--- | | Equity Assets | No significant change | | Fixed Assets | No significant change | | Intangible Assets | No significant change | | Construction in Progress | Increased by 173.7% at the end of the reporting period compared to the beginning of the period, mainly due to increased investment in newly started projects | - The company had no major overseas assets during the reporting period[63] Analysis of Core Competencies The company's core strengths lie in its integrated industrial chain, unique cooperative farming model, ecological location, advanced technology, and strong brand reputation - Integrated operating industrial chain advantage: covers feed production, broiler farming and slaughtering, chicken product processing and deep processing, achieving balanced production, stable supply, and food safety traceability[63] - "Nine unifications" managed "company + base + farm" commercial broiler cooperative farming model: effectively integrates company management advantages and farm decentralized farming advantages, achieving rapid scale expansion and controllable biosafety risks[64] - Ecological farming and industrial cluster location advantage: farming bases located in Jiaodong Peninsula (animal disease-free demonstration zone), possessing geographical advantages for ecological farming and closed isolation epidemic prevention, and benefiting from Shandong Province's poultry farming and agricultural powerhouse industrial cluster advantages[65] - Technological advantage: possesses healthy and efficient broiler farming technology, green nutritional feed formulation technology, disease prevention and control technology, and implements full-process food safety control, with multiple certifications[66] - Product quality and brand advantage: strict quality control through integrated operations, awarded National Key Leading Enterprise in Agricultural Industrialization, China Well-known Trademark, Shandong Famous Brand Product, Green Food certification, and other honors[67][69] - Premium customer trust advantage: accumulated numerous long-term stable premium customer resources through professional farming and full industrial chain scale supply[70] Part IV Management Discussion and Analysis This section discusses the company's operational performance, financial position, and future outlook Overview H1 2020 saw declines in revenue and profit due to COVID-19's impact on chicken product prices, with expected recovery in H2 - In the first half of 2020, affected by the COVID-19 pandemic, downstream customers' insufficient operations and unrecovered terminal consumption demand led to a year-on-year decrease in the company's chicken product sales prices[74] 2020 H1 Key Financial Performance | Indicator | Amount (million yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 1,533.1558 | -1.23% | | Operating Profit | 279.5624 | -34.25% | | Total Profit | 278.3277 | -34.46% | | Net Profit Attributable to Shareholders of Listed Company | 278.5723 | -30.82% | | Basic Earnings Per Share | 0.60 yuan | -31.03% | - The company expects chicken prices to rise in the second half of the year as the COVID-19 pandemic control improves and the catering industry recovers[74] - The company's main operating model remained unchanged during the reporting period, having formed a complete industrial chain model, effectively ensuring production supply and food quality and safety[75] Main Business Analysis Main business revenue slightly decreased, while operating costs rose, impacting gross profit margin; food processing remains the primary revenue source - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[80] Year-on-Year Changes in Key Financial Data Operating revenue slightly decreased, while operating costs and sales expenses increased, leading to a significant drop in income tax expense due to deferred tax reversal Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Same Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,533,155,756.21 | 1,552,189,705.67 | -1.23% | | | Operating Cost | 1,265,232,848.06 | 1,120,166,710.12 | 12.95% | | | Sales Expenses | 8,617,951.02 | 6,201,396.06 | 38.97% | Mainly due to increased freight costs in sales expenses during this reporting period | | Administrative Expenses | 21,103,199.33 | 22,317,236.27 | -5.44% | | | Financial Expenses | -13,144,916.72 | -7,649,854.94 | -71.83% | Mainly due to increased deposit interest income during this reporting period | | Income Tax Expense | -3,993,019.37 | -66,955.09 | -5,863.73% | Mainly due to the reversal of deferred income tax expense from the previous year-end | | R&D Investment | 1,244,185.63 | 1,158,056.44 | 7.44% | | | Net Cash Flow from Operating Activities | 339,020,304.27 | 370,933,036.07 | -8.60% | | | Net Cash Flow from Investing Activities | 151,355,932.39 | -361,025,662.16 | 141.92% | Mainly due to increased cash recovered from investments during this reporting period | | Net Cash Flow from Financing Activities | -302,120,817.99 | 3,684,744.08 | -8,299.23% | Mainly due to increased cash paid for repayment of bank loans during this reporting period | | Net Increase in Cash and Cash Equivalents | 188,255,968.77 | 13,598,575.46 | 1,284.38% | Mainly due to increased cash recovered from investments during this reporting period | Operating Revenue Composition Food processing and chicken products dominate revenue, with domestic sales accounting for nearly all income, while soybean processing and other product revenues declined Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Proportion of Operating Revenue in Prior Year Same Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | Total Operating Revenue | 1,533,155,756.21 | 100% | 100% | -1.23% | | By Industry | Food Processing | 1,455,700,409.08 | 94.95% | 94.68% | -0.95% | | | Animal Husbandry | 63,249,934.37 | 4.13% | 4.52% | -9.77% | | | Soybean Processing | 65,253.71 | 0.00% | 0.05% | -92.18% | | | Feed Processing | 14,140,159.05 | 0.92% | 0.75% | 21.40% | | By Product | Chicken Products | 1,454,354,950.81 | 94.86% | 94.65% | -1.01% | | | Commercial Broilers | 48,152,633.40 | 3.14% | 2.46% | 26.16% | | | Soybean Oil | 20,027.53 | 0.00% | 0.05% | -97.47% | | | Feather Meal | 14,140,159.05 | 0.92% | 0.74% | 23.66% | | | Chicks, Breeding Chickens, and Others | 16,487,985.42 | 1.08% | 2.10% | -49.42% | | By Region | Domestic Sales | 1,532,923,548.64 | 99.98% | 100.00% | -1.24% | | | Overseas Sales | 232,207.57 | 0.02% | | 100.00% | - Soybean processing and soybean oil revenue significantly decreased year-on-year, mainly due to reduced soybean oil production and sales[84] - Revenue from chicks, breeding chickens, and other products decreased by 49.42% year-on-year, mainly due to lower sales prices of culled breeding chickens and chicks[84] Gross Profit Margin Analysis by Industry, Product, and Region Gross profit margins for food processing, chicken products, and domestic sales all declined, reflecting market price volatility's impact on profitability Gross Profit Margin Analysis by Industry, Product, and Region | Category | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | | By Industry | | | | | Food Processing | -0.95% | 11.51% | -9.25% | | By Product | | | | | Chicken Products | -1.01% | 11.44% | -9.25% | | By Region | | | | | Domestic Sales | -1.24% | 12.93% | -10.36% | Non-Main Business Analysis Non-main business profit is primarily from sustainable investment income, while fair value changes and asset impairment negatively impacted total profit Non-Main Business Analysis | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 44,445,237.27 | 15.97% | Short-term investment of company funds | Yes | | Gains or Losses from Changes in Fair Value | -7,851,727.75 | -2.82% | Fair value changes of company's trading financial assets | Yes | | Asset Impairment | -4,280,172.48 | -1.54% | Impairment of company's inventory | Yes | | Non-operating Income | 34,195.31 | 0.01% | Fine income | No | | Non-operating Expenses | 1,268,937.81 | 0.46% | Loss from disposal of company's scrapped long-term assets | No | Analysis of Assets and Liabilities Monetary funds and construction in progress increased significantly, while short-term borrowings decreased; some assets are restricted or measured at fair value - The company's main asset measurement attributes did not undergo significant changes during the reporting period[90] Significant Changes in Asset Composition Monetary funds and construction in progress increased as a percentage of total assets, while short-term borrowings decreased Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year Same Period (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,482,185,702.36 | 34.23% | 727,285,260.69 | 20.63% | 13.60% | | Accounts Receivable | 64,656,729.28 | 1.49% | 70,141,946.40 | 1.99% | -0.50% | | Inventories | 419,801,670.67 | 9.70% | 410,362,114.82 | 11.64% | -1.94% | | Investment Properties | 2,359,494.19 | 0.05% | 2,569,239.79 | 0.07% | -0.02% | | Fixed Assets | 929,258,617.54 | 21.46% | 853,095,259.85 | 24.20% | -2.74% | | Construction in Progress | 58,422,137.89 | 1.35% | 483,880.51 | 0.01% | 1.34% | | Short-term Borrowings | 245,000,000.00 | 5.66% | 256,750,000.00 | 7.28% | -1.62% | Assets and Liabilities Measured at Fair Value Total financial assets measured at fair value reached 1.035 billion yuan, primarily trading financial assets, with a fair value change loss of -7.85 million yuan Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses for Current Period (yuan) | Amount Purchased for Current Period (yuan) | Amount Sold for Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets (excluding derivative financial assets) | 1,271,199,957.48 | -7,851,727.75 | 1,731,799,110.80 | 1,967,933,063.50 | 1,027,214,277.03 | | Other Equity Instrument Investments | 8,282,622.12 | | | | 8,282,622.12 | | Subtotal Financial Assets | 1,279,482,579.60 | -7,851,727.75 | 1,731,799,110.80 | 1,967,933,063.50 | 1,035,496,899.15 | | Financial Liabilities | 0.00 | | | | 0.00 | Asset Rights Restriction Status as of the End of the Reporting Period 724.84 million yuan in assets were restricted, primarily due to pledged time deposits and trading financial assets for borrowings Asset Rights Restriction Status | Asset with Restricted Ownership or Use Rights | Carrying Amount at Period-End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds - Time Deposits | 98,000,000.00 | Pledged time deposits | | Monetary Funds - Time Deposits | 574,300,000.00 | Time deposits not yet due for withdrawal | | Trading Financial Assets | 52,542,700.00 | Pledged for borrowings | | Total | 724,842,700.00 | | Analysis of Investment Status The company had no significant equity or non-equity investments; raised funds projects faced delays and underperformance, leading to extensions - The company had no securities investments and derivative investments during the reporting period[95][96] - The company had no major non-raised fund investment projects during the reporting period[107] Overall Situation The company had no significant equity or non-equity investments during the reporting period - The company had no significant equity investments during the reporting period[94] - The company had no significant ongoing non-equity investments during the reporting period[94] Financial Assets Measured at Fair Value Financial assets measured at fair value totaled 1.035 billion yuan at period-end, primarily self-funded investments, with a fair value change loss of -7.85 million yuan Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (yuan) | Fair Value Change Gains/Losses for Current Period (yuan) | Amount Purchased During Reporting Period (yuan) | Amount Sold During Reporting Period (yuan) | Cumulative Investment Income (yuan) | Ending Balance (yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Trading Financial Assets) | 1,271,199,957.48 | -7,851,727.75 | 1,731,799,110.80 | 1,967,933,063.50 | 38,304,293.39 | 1,027,214,277.03 | Self-funded | | Other (Other Equity Instrument Investments) | 8,282,622.12 | | | | 350,000.00 | 8,282,622.12 | Self-funded | | Total | 1,279,482,579.60 | -7,851,727.75 | 1,731,799,110.80 | 1,967,933,063.50 | 38,654,293.39 | 1,035,496,899.15 | -- | Use of Raised Funds Total raised funds were 837.76 million yuan, with 587.1535 million yuan invested; two key projects were delayed and underperformed, extended to December 31, 2020 Overall Use of Raised Funds | Indicator | Amount (million yuan) | | :--- | :--- | | Total Raised Funds | 837.76 | | Total Raised Funds Invested in Current Reporting Period | 21.9148 | | Total Raised Funds Cumulatively Invested | 598.426 | Raised Fund Commitment Projects | Committed Investment Project | Total Committed Investment of Raised Funds (million yuan) | Cumulative Investment Amount at Period-End (million yuan) | Investment Progress at Period-End | Date Project Reached Intended Usable State | Benefits Achieved in Current Reporting Period (million yuan) | Achieved Expected Benefits | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cooked Food Processing Project | 232.59 | 96.1318 | 41.33% | December 31, 2020 | -2.0172 | No | | Commercial Chicken Farming Vertical Farming Technology Renovation Project | 525.17 | 412.2942 | 78.51% | December 31, 2020 | 144.0685 | Yes | | Supplement Working Capital | 80.00 | 78.7275 | 98.41% | | | Not Applicable | | Subtotal Committed Investment Projects | 837.76 | 587.1535 | -- | -- | 142.0513 | -- | - The cooked food processing project did not meet planned progress or expected benefits, mainly due to ongoing R&D, brand building, and sales market operations, with customer certification not yet obtained; the project has been extended to December 31, 2020[100] - The commercial chicken farming vertical farming technology renovation project was extended to December 31, 2020, mainly due to changes in the market environment in the early stage, with some farms making initial investments not replaced by raised funds[103] - The company used idle raised funds up to a maximum of 250 million yuan for principal-protected bank wealth management products and structured deposits[103] 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[108] - The company did not sell significant equity during the reporting period[109] Analysis of Major Holding and Participating Companies Shandong Xiantan Penglai Poultry Co., Ltd. reported a net profit of 6.67 million yuan; other subsidiary changes had no material impact on overall performance Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Xiantan Penglai Poultry Co., Ltd | Subsidiary | Breeding chicken farming; breeding egg, chick sales; commercial chicken farming, sales | 20,000,000.00 | 202,170,186.56 | 197,933,884.42 | 29,521,039.95 | 6,715,464.45 | 6,667,914.75 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shandong Xiantan De Biotechnology Co., Ltd | Name change | No impact on overall production, operations, and performance | | Shandong Xiantan De Biotechnology Co., Ltd | Equity change | No impact on overall production, operations, and performance | | Shandong Xiantan De Biotechnology Co., Ltd | Address change | No impact on overall production, operations, and performance | | Shandong Xiantan Penglai Poultry Co., Ltd | Reduction of registered capital | No impact on overall production, operations, and performance | Risks Faced by the Company and Countermeasures Company risks are detailed in Part I; future plans and forecasts are not commitments, requiring investor discretion - Risks faced by the company are detailed in the "Part I Important Notes, Table of Contents and Definitions" section of this report[113] - Content in this report involving future plans and performance forecasts does not constitute a commitment by the company to any investor or related parties[113] Part V Significant Events This section details key corporate events, including shareholder meetings, profit distribution, and commitments Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period The company held three shareholder meetings during the reporting period, with investor participation rates around 55%, and resolutions were duly disclosed Shareholder Meetings During the Reporting Period | Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 First Extraordinary General Meeting | Extraordinary General Meeting | 55.53% | February 07, 2020 | February 08, 2020 | Juchao Information Network (www.cninfo.com.cn) Announcement No. 2020-013 | | 2020 Second Extraordinary General Meeting | Extraordinary General Meeting | 55.53% | March 10, 2020 | March 11, 2020 | Juchao Information Network (www.cninfo.com.cn) Announcement No. 2020-025 | | 2019 Annual General Meeting | Annual General Meeting | 55.75% | April 15, 2020 | April 16, 2020 | Juchao Information Network (www.cninfo.com.cn) Announcement No. 2020-044 | - The company's reporting period showed no requests from preferred shareholders with restored voting rights to convene extraordinary general meetings[118] 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 semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[118] Commitments The controlling shareholder and actual controllers, Wang Shouchun and Qu Lirong, fulfilled their share reduction commitments during the reporting period Commitments Made During Initial Public Offering or Refinancing | Promisor | Commitment Type | Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Qu Lirong; Wang Shouchun | Other Commitments | Share reduction price not lower than issuance price within two years after lock-up period; if share price falls below issuance price within 6 months of listing or closing price at period-end is below issuance price, lock-up period extends by 6 months; resignation or change of duties for directors/senior management does not affect commitment validity; after lock-up period, reduction not exceeding 5% of total share capital in the first year, and total not exceeding 10% in the first and second years; maintaining controlling position after reduction; reduction requires prior announcement | February 16, 2015 | February 15, 2020 | Normally fulfilled | - The company's reporting period showed no unfulfilled commitments by actual controllers, shareholders, related parties, acquirers, or the company itself that were due or overdue at the end of the reporting period[121] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited, with no "non-standard audit report" issues from the current or prior period - The company's semi-annual financial report was unaudited[125] - The company's reporting period showed no explanations from the board of directors or supervisory board regarding "non-standard audit reports" from accounting firms for this reporting period[126] - The company's reporting period showed no explanations from the board of directors regarding "non-standard audit reports" from the previous year[126] Bankruptcy and Reorganization Related Matters The company had no bankruptcy and reorganization related matters during the reporting period - The company had no bankruptcy and reorganization related matters during the reporting period[126] Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters in this reporting period[127] - The company had no other litigation matters in this reporting period[127] Media Scrutiny The company had no widespread media scrutiny matters during the reporting period - The company had no widespread media scrutiny matters in this reporting period[127] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties and rectification situations during the reporting period[128] Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers The company, its controlling shareholder, and actual controllers maintained good integrity status during the reporting period - The company's reporting period showed no integrity issues concerning itself, its controlling shareholder, or actual controllers[128] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures 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[131] Significant Related Party Transactions The company engaged in routine related party transactions for procurement and sales, adhering to market pricing and approved limits, with no other major related party transactions Related Party Transactions Related to Daily Operations | Related Party | Related Party Relationship | Related Party Transaction Type | Related Party Transaction Content | Related Party Transaction Amount (million yuan) | Proportion of Similar Transactions | Approved Transaction Limit (million yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yantai Xianfeng Packaging Color Printing Co., Ltd | Enterprise controlled by Qu Lirong's sister | Procurement | Packaging materials | 10.1353 | 40.94% | 28.00 | No | | Yantai Xianpeng Plastic Products Co., Ltd | Enterprise controlled by Qu Lirong's sister-in-law | Procurement | Packaging bags | 6.0579 | 24.47% | 12.00 | No | | Yantai Xianpeng Plastic Products Co., Ltd | Enterprise controlled by Qu Lirong's sister-in-law | Sales | Chicken products | 0.0065 | — | 0.10 | No | | Total | | | | 16.1997 | -- | 40.10 | -- | - The company had no significant sales returns[132] - The company's reporting period showed no related party transactions involving asset or equity acquisition/disposal[133] - The company's reporting period showed no related party transactions involving joint external investments[134] - The company's reporting period showed no related party creditor-debtor relationships[135][137] - The company had no other significant related party transactions during the reporting period[138] Non-Operating Funds Occupied by Controlling Shareholder and its Related Parties from the Listed Company The company had no non-operating funds occupied by its controlling shareholder or related parties during the reporting period - The company's reporting period showed no non-operating funds occupied by its controlling shareholder and its related parties from the listed company[139] Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters; total external guarantees were 238.65 million yuan, and wealth management amounted to 1.98 billion yuan with no overdue amounts - The company's reporting period showed no entrustment, contracting, or leasing situations[140][141][142] - The company had no illegal external guarantees during the reporting period[148][150] - The company had no other significant contracts during the reporting period[152] Entrustment, Contracting, and Leasing Matters The company had no entrustment, contracting, or leasing matters during the reporting period - The company had no entrustment situations during the reporting period[140] - The company had no contracting situations during the reporting period[141] - The company had no leasing situations during the reporting period[142] Significant Guarantees Total external guarantees amounted to 238.65 million yuan, representing 7.04% of net assets, primarily for cooperative farms and subsidiaries External Guarantees by the Company and its Subsidiaries | Name of Guaranteed Party | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Type | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cooperative Farms | 100.00 | 49.595 | Joint and several liability guarantee | Three years | No | No | | Shandong Xiantan Xian Food Co., Ltd | 400.00 | 205.00 | Joint and several liability guarantee/Pledge | One year | No | Yes | | Total Actual Guarantee Balance at Period-End | 500.00 | 238.6535 | | | | | - The actual total guarantee amount accounted for 7.04% of the company's net assets[147] Wealth Management Total wealth management transactions amounted to 1.98 billion yuan, with an outstanding balance of 1.02 billion yuan at period-end, and no overdue unrecovered amounts Wealth Management Situations | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (million yuan) | Outstanding Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Self-funded | 525.2991 | 209.0939 | 0 | | Bank Wealth Management Products | Idle Raised Funds | 4.70 | 0 | 0 | | Brokerage Wealth Management Products | Self-funded | 1,450.00 | 810.00 | 0 | | Total | | 1,979.9991 | 1,019.0939 | 0 | - The company had no single significant, low-safety, poor-liquidity, or non-principal-protected high-risk wealth management situations[151] Social Responsibility The company actively fulfills social responsibilities through environmental compliance and poverty alleviation initiatives, promoting sustainable development - The company's subsidiary Shandong Xiantan Food Co., Ltd. is a key pollutant-discharging unit announced by environmental protection authorities[153] - The company has pollution prevention facilities for wastewater treatment, solid waste management, and noise control, all operating normally, with no violations during the reporting period[153][154][156] - The company has formulated emergency plans for environmental incidents and filed them with environmental authorities, conducting comprehensive drills annually[156] - The company uses the "company + base + farm" cooperative farming model to support cooperative farms in vertical farming technology renovation, driving over 2,000 cooperative farms in surrounding areas to prosperity[158] - The company plans to continue actively fulfilling social responsibilities in the future through supporting farmers' development, technological improvements, and enhancing product quality[159] Significant Environmental Issues Shandong Xiantan Food Co., Ltd., a key pollutant-discharging unit, operates its pollution control facilities normally, ensuring compliance with environmental standards Main Pollutant Emission Status | Company or Subsidiary Name | Name of Main Pollutants and Characteristic Pollutants | Emission Method | Number of Emission Outlets | Emission Concentration | Executed Pollutant Emission Standard | Total Emission Volume | Approved Total Emission Volume | Exceeding Standard Emission Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Xiantan Food Co., Ltd | COD | Continuous emission | 1 | 55.6mg/l | 500mg/l | 71.17 tons | Discharge Permit No.: 91370600729262478P001Y | None | - The company constructed wastewater treatment facilities at its food company, using high-efficiency air flotation + A/O process, with a designed treatment capacity of 4000m³/day, installed online monitoring equipment, and wastewater discharged into urban sewage pipe network after treatment[153] - The company manages solid waste in a standardized manner, all entrusted to qualified companies for disposal, and takes measures such as vibration reduction, sound insulation, and silencing for key noise sources, with monitoring results meeting standards[153][154][156] Fulfillment of Targeted Poverty Alleviation Social Responsibilities Through its cooperative farming model, the company supports farmers in technology renovation, boosting income and driving prosperity in surrounding regions - The company uses the "company + base + farm" cooperative farming model to support cooperative farms in vertical farming technology renovation, achieving expanded farming scale, reduced labor intensity, and increased farming income[158] - This model has driven over 2,000 cooperative farms in surrounding areas like Yantai and Weihai to prosperity[158] - The company plans to actively fulfill social responsibilities in the future through supporting farmers' development, technological improvements, and enhancing product quality, pursuing an organic integration of profit and social responsibility[159] Explanation of Other Significant Matters The company plans a non-public offering of up to 1.4 billion yuan for a broiler industrial ecological project, currently awaiting CSRC review - The company plans to raise no more than 1.4 billion yuan through a non-public offering of shares, for Shandong Xiantan Zhucheng Food Co., Ltd.'s "Annual Output of 120 Million Broilers Industrial Ecological Project"[162] - This offering plan was approved and revised by the board of directors and shareholders' meeting on January 20, February 7, February 21, March 10, and March 20, 2020[162] - On June 30, 2020, the company received the administrative license application acceptance notice from the CSRC, and this matter is still subject to further review by the CSRC[162] Significant Matters of Company Subsidiaries During the reporting period, a controlling subsidiary underwent name, equity, and address changes, and a wholly-owned subsidiary was established - On January 17, 2020, the company's controlling subsidiary Shandong Xiande Biotechnology Co., Ltd. changed its name to Shandong Xiantan De Biotechnology Co., Ltd. and completed industrial and commercial change registration[163] - On May 14, 2020, Shandong Xiantan De Biotechnology Co., Ltd. underwent an equity change, with Shandong Xiantan Co., Ltd. holding 90% of the shares, and completed industrial and commercial change registration[163] - On July 6, 2020, the company's wholly-owned subsidiary Yantai Muping Xiantan Vocational Skills Training School Co., Ltd. was established and completed industrial and commercial registration[163] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and controlling parties Share Change Status The company's total share capital and the structure of restricted and unrestricted shares remained unchanged during the reporting period Share Change Status | Category | Number of Shares Before This Change | Proportion | Increase/Decrease in This Change (＋,－) Subtotal (shares) | Number of Shares After This Change | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 100,575,000 | 21.69% | 0 | 100,575,000 | 21.69% | | Of which: Shares held by domestic natural persons | 100,575,000 | 21.69% | 0 | 100,575,000 | 21.69% | | II. Unrestricted Shares | 363,117,511 | 78.31% | 0 | 363,117,511 | 78.31% | | Of which: RMB ordinary shares | 363,117,511 | 78.31% | 0 | 363,117,511 | 78.31% | | III. Total Shares | 463,692,511 | 100.00% | 0 | 463,692,511 | 100.00% | - The company's reporting period showed no progress on share repurchase implementation[167] - The company's reporting period showed no progress on concentrated bidding reductions of repurchased shares[167] Securities Issuance and Listing Status The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance and listing situations during the reporting period[170] Number of Shareholders and Shareholding Status At period-end, the company had 42,759 common shareholders; the controlling shareholders, Wang Shouchun and Qu Lirong, held a combined 55.32% of shares, with some pledged - The total number of common shareholders at the end of the reporting period was 42,759[170] Shareholding Status of Common Shareholders Holding 5% or More or Top 10 Common Shareholders at Period-End | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Common Shares Held at Period-End (shares) | Number of Restricted Common Shares Held (shares) | Number of Unrestricted Common Shares Held (shares) | Pledged or Frozen Status - Number (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Shouchun | Domestic Natural Person | 28.92% | 134,100,000 | 100,575,000 | 33,525,000 | 20,810,000 | | Qu Lirong | Domestic Natural Person | 26.40% | 122,400,000 | | 122,400,000 | 17,194,000 | | Wang Kegong | Domestic Natural Person | 1.10% | 5,100,000 | | 5,100,000 | | | National Social Security Fund 413 Portfolio | Other | 0.97% | 4,500,000 | | 4,500,000 | | | Shenwan Hongyuan Securities - Industrial and Commercial Bank of China - Huarong International Trust Co., Ltd | Other | 0.54% | 2,523,025 | | 2,523,025 | | | China Merchants Bank Co., Ltd - Everbright Pramerica Advantage Allocation Mixed Securities Investment Fund | Other | 0.42% | 1,953,000 | | 1,953,000 | | | Hong Kong Securities Clearing Company Limited | Other | 0.40% | 1,872,965 | | 1,872,965 | | | Central Huijin Asset Management Co., Ltd | Other | 0.34% | 1,591,710 | | 1,591,710 | | | Tang Jing | Domestic Natural Person | 0.30% | 1,398,800 | | 1,398,800 | | | Xu Lin | Domestic Natural Person | 0.21% | 968,200 | | 968,200 | | - The company's controlling shareholder and actual controllers Wang Shouchun and Qu Lirong are a married couple, with an associated relationship[173] - The company's top 10 common shareholders and top 10 unrestricted common shareholders did not engage in agreed repurchase transactions during the reporting period[175] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controllers remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[176] - The company's actual controller did not change during the reporting period[176] Part VII Preferred Shares Related Information This section confirms the absence of preferred shares in the company's capital structure Preferred Shares Status The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[180] Part VIII Convertible Corporate Bonds Related Information This section confirms the absence of convertible corporate bonds in the company