仙坛股份(002746) - 2021 Q2 - 季度财报

Section I Important Notes, Table of Contents, and Definitions Important Notes The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, while the company faces multiple operational and market risks - Company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[5] - Company faces risks including avian epidemics and major natural disasters, product sales price fluctuations, raw material supply and price volatility, cooperative farming models, and increased food safety and quality standards[5][9][10][11][13] - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[13] Table of Contents This section outlines the report's structure, covering ten main chapters on company operations, finance, governance, and social responsibility - The report contains ten main chapters, covering company operations, finance, governance, and social responsibility[16] - Reference documents include financial statements signed and sealed by the legal representative, original drafts of publicly disclosed documents, and the original semi-annual report[19][20][21] Definitions This section defines common terms used in the report, such as company names, major subsidiaries, regulatory bodies, and the reporting period, for clarity Major Definitions | Definition Item | Definition Content | | :--- | :--- | | Company, Xiantan Co., Ltd. | Shandong Xiantan Co., Ltd. | | Xiantan Food | Shandong Xiantan Food Co., Ltd., a wholly-owned subsidiary of the company | | Reporting Period | January 1, 2021 to June 30, 2021 | Section II Company Profile and Key Financial Indicators I. Company Profile This section provides Shandong Xiantan Co., Ltd.'s basic information, including its stock abbreviation, code, listing exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xiantan Co., Ltd. | | Stock Code | 002746 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 山东仙坛股份有限公司 | | Legal Representative | 王寿纯 | II. Contact Persons and Information This section lists contact details for the company's Board Secretary and Securities Affairs Representative, including names, phone numbers, and email addresses Company Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | 许士卫 | 05354658717 | xtzq@sdxiantan.com | | Securities Affairs Representative | 王心波 | 05354658717 | xtzq@sdxiantan.com | III. Other Information The company's registered address, office address, postal code, website, email, and information disclosure channels remained unchanged during the reporting period - Company's registered address, office address, postal code, website, and email remained unchanged during the reporting period[31] - Information disclosure newspaper name, CSRC designated website URL, and report storage location remained unchanged during the reporting period[32] IV. Key Accounting Data and Financial Indicators The company experienced a year-on-year decline in operating revenue and net profit, with net cash flow from operating activities significantly decreasing, while total assets slightly increased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,445,438,521.05 | 1,533,155,756.21 | -5.72% | | Net Profit Attributable to Shareholders of Listed Company | 121,963,020.70 | 278,572,250.72 | -56.22% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 57,617,795.54 | 239,057,617.67 | -75.90% | | Net Cash Flow from Operating Activities | -48,548,475.23 | 339,020,304.27 | -114.32% | | Basic Earnings Per Share (RMB/share) | 0.14 | 0.32 | -56.25% | | Diluted Earnings Per Share (RMB/share) | 0.14 | 0.32 | -56.25% | | Weighted Average Return on Net Assets | 2.68% | 8.26% | -5.58% | | Total Assets (RMB) | 5,561,751,135.78 | 5,462,381,123.85 | 1.82% | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 4,442,239,301.45 | 4,493,633,344.39 | -1.14% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese Accounting Standards - Company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards during the reporting period[36] - Company reported no differences in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese Accounting Standards during the reporting period[37] VI. Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses amounted to 64.3452 million RMB, primarily from fair value changes and investment income, offset by asset disposal losses and non-operating expenses Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -4,122,461.41 | | Government Subsidies Included in Current Profit and Loss | 1,364,216.02 | | Fair Value Changes and Investment Income from Trading Financial Assets, Derivative Financial Assets, etc. | 68,946,239.64 | | Other Non-Operating Income and Expenses | -617,517.56 | | Less: Impact on Minority Interests (After Tax) | 1,225,251.53 | | Total | 64,345,225.16 | - Company did not classify non-recurring gains and losses as recurring gains and losses during the reporting period[42] Section III Management Discussion and Analysis I. Main Business Activities During the Reporting Period The company operates an integrated white feather broiler industry chain, with revenue and net profit declining due to lower product prices and rising raw material costs, while actively expanding capacity and optimizing sales models - Company's main business involves breeder chicken farming, chick hatching, feed production, commercial broiler farming and slaughtering, and chicken product processing and sales, forming a complete industry chain[53][54] - In the first half of 2021, the company's operating revenue decreased by 5.72% year-on-year, and net profit decreased by 56.22% year-on-year, primarily due to lower average chicken product sales prices and rising raw material costs for corn and soybean meal[49][52] - The company raised 1.045 billion RMB through a non-public offering for the Zhucheng annual output of 120 million broilers industrial ecological project, which is expected to double production capacity upon completion[48] (I) Company Overview China's poultry consumption is growing, with the company expanding capacity through the Zhucheng project and receiving increased shareholder holdings, despite market price and raw material cost pressures - In 2020, poultry meat production accounted for 31% of total meat production, with chicken demand expected to further increase as a high-protein, low-fat healthy food[46][47] - The company raised 1.045 billion RMB for the Zhucheng project, projected to achieve a broiler slaughter volume of 250-270 million birds, meat processing capacity of 600,000 tons, and cooked food capacity of 150,000 tons by 2024, effectively doubling production capacity[48] - Controlling shareholder Mr. Wang Shouchun's concerted party increased its stake by 4.5512 million shares, representing 0.53% of total share capital, demonstrating confidence in the company's future development[48] (II) Main Business and Operating Model The company maintains its integrated industry chain model, covering all stages from breeder chicken farming to chicken product sales, utilizing a "company + self-owned farm + farmer" cooperative model for efficiency and safety - The company's main business remains unchanged, covering breeder chicken farming, chick hatching, feed production, commercial broiler farming and slaughtering, and chicken product processing and sales[53] - The company employs a complete industry chain model to effectively monitor food quality and safety at every stage from feed production to chicken product sales[54] - Commercial chicken farming adopts a "company + self-owned farm + farmer" cooperative farming model under "nine unified" management, ensuring controllable biosecurity risks and rapid expansion of farming scale[56] (III) Industry Development Operating in the cyclical animal husbandry industry, the company maintains a leading position with integrated operations, certifications, and stable customer resources, despite a significant drop in chicken product gross margin - The company operates in the animal husbandry industry (A03), specializing in white feather broiler farming and slaughtering, achieving integrated operations and full industry chain coverage[62] - The company is a national key leading enterprise in agricultural industrialization, holding "China Well-known Trademark," ISO9001, and ISO22000 certifications, and is a premium supplier to fast-food chains like KFC and Wallace[68][69][71] Key Financial Data by Sales Model and Product Category (H1 2021 vs H1 2020) | Model/Product | Item | H1 2021 (RMB) | H1 2020 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Direct Sales | Operating Revenue (RMB) | 944,701,450.20 | 914,391,399.57 | 3.31% | | | Operating Cost (RMB) | 888,563,725.46 | 760,431,005.31 | 16.85% | | | Gross Margin | 5.94% | 16.84% | -64.71% | | Distribution | Operating Revenue (RMB) | 426,935,212.60 | 539,963,551.24 | -20.93% | | | Operating Cost (RMB) | 401,414,055.22 | 443,905,869.44 | -9.57% | | | Gross Margin | 5.98% | 17.79% | -66.40% | | Chicken Products | Operating Revenue (RMB) | 1,309,055,355.01 | 1,394,087,465.07 | -6.10% | | | Operating Cost (RMB) | 1,232,347,279.48 | 1,153,802,962.73 | 6.81% | | | Gross Margin | 5.86% | 17.24% | -66.00% | | Prepared Foods | Operating Revenue (RMB) | 62,581,307.79 | 60,267,485.74 | 3.84% | | | Operating Cost (RMB) | 57,630,501.20 | 50,533,912.02 | 14.04% | | | Gross Margin | 7.91% | 16.15% | -51.02% | Number of Distributors (H1 2021 vs H1 2020) | Region | Number of Distributors H1 2021 (Units) | Number of Distributors H1 2020 (Units) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | North China | 72 | 71 | 1.41% | | Northeast China | 35 | 29 | 20.69% | | East China | 590 | 594 | -0.67% | | Central South China | 153 | 121 | 26.45% | | Southwest China | 33 | 26 | 26.92% | | Northwest China | 12 | 10 | 20.00% | | Export | - | 1 | -100.00% | | Total | 895 | 852 | 5.05% | Production and Inventory (H1 2021 vs H1 2020) | Product Category | Item | Unit | H1 2021 | H1 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Chicken Products | Production | Kilograms | 149,269,362.29 | 149,512,470.09 | -0.16% | | | Sales | Kilograms | 143,919,311.98 | 146,511,305.36 | -1.77% | | | Inventory | Kilograms | 9,532,065.86 | 9,141,899.14 | 4.27% | | Prepared Foods | Production | Kilograms | 4,843,557.83 | 4,481,037.84 | 8.09% | | | Sales | Kilograms | 4,646,019.88 | 4,204,299.12 | 10.51% | | | Inventory | Kilograms | 893,444.73 | 692,232.18 | 29.07% | II. Analysis of Core Competencies The company's core strengths lie in its integrated industry chain, unique cooperative farming model, advantageous ecological location, advanced technology, strong brand, and stable customer base - Company achieves balanced production and stable supply through highly integrated vertical industry chain, possessing strong market responsiveness and risk resistance capabilities[101] - The "nine unified" management under "company + self-owned farm + farmer" cooperative farming model effectively integrates scientific and decentralized farming advantages, enabling rapid scale expansion and farmer prosperity[102] - Company's farming bases in the Jiaodong Peninsula benefit from ecological farming and closed isolation for epidemic prevention, along with industry cluster advantages[105] - Company possesses meat chicken healthy and efficient farming technology, green nutritional feed formulation technology, and disease prevention and control technology, recognized as multiple technology demonstration bases[106] - Through strict quality control across the entire industry chain, company has obtained various food safety and quality management system certifications, with products recognized as green food and "China Well-known Trademark"[107] - Company has accumulated numerous long-term and stable high-quality customer resources leveraging its professional farming expertise and full industry chain coverage[108] III. Analysis of Main Business Operating revenue and net profit declined due to lower chicken product prices and rising raw material costs, while selling expenses decreased due to accounting reclassification and administrative expenses increased Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,445,438,521.05 | 1,533,155,756.21 | -5.72% | Average chicken product sales price lower than prior period | | Operating Cost | 1,340,066,860.52 | 1,265,232,848.06 | 5.91% | Rising prices of bulk raw materials like corn and soybean meal | | Selling Expenses | 3,965,511.63 | 8,617,951.02 | -53.99% | Reclassification of freight to cost of goods sold under new revenue standard | | Administrative Expenses | 29,252,680.59 | 21,103,199.33 | 38.62% | Increase in management and administrative personnel expenses year-on-year | | Financial Expenses | -6,581,707.01 | -13,144,916.72 | 49.93% | Decrease in interest income from deposits | | Net Cash Flow from Operating Activities | -48,548,475.23 | 339,020,304.27 | -114.32% | Increase in cash paid for goods due to rising raw material prices year-on-year | | Net Cash Flow from Investing Activities | -615,404,966.49 | 151,355,932.39 | -506.59% | Decrease in cash received from investment recovery year-on-year | | Net Cash Flow from Financing Activities | -104,225,660.79 | -302,120,817.99 | 65.50% | Decrease in cash paid for debt repayment year-on-year | | Net Increase in Cash and Cash Equivalents | -768,179,102.51 | 188,255,968.77 | -508.05% | Decrease in cash received from investment recovery year-on-year | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue | Prior Year Same Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Broiler Farming and Slaughtering | 1,445,438,521.05 | 100.00% | 1,533,155,756.21 | 100.00% | -5.72% | | By Product | Chicken Products | 1,371,636,662.80 | 94.89% | 1,454,354,950.81 | 94.86% | -5.69% | | | Commercial Broilers and Others | 73,801,858.25 | 5.11% | 78,800,805.40 | 5.14% | -6.34% | | By Region | Domestic Sales | 1,445,438,521.05 | 100.00% | 1,532,923,548.64 | 99.98% | -5.71% | | | International Sales | 0 | 0.00% | 232,207.57 | 0.02% | -100.00% | - Operating revenue from soybean processing and soybean oil both significantly increased year-on-year, primarily due to an increase in soybean oil sales volume[115] - Operating revenue from chicks, breeder chickens, and others increased by 30.33% year-on-year, with gross margin increasing by 38.13%, mainly due to higher prices for culled breeder chickens[116] - International sales operating revenue and costs decreased by 100% year-on-year, primarily because there were no international sales in the current reporting period[117] IV. Analysis of Non-Main Business Non-main business significantly impacted total profit, with investment income and fair value change gains contributing positively, while asset impairment and non-operating expenses had a negative effect Impact of Non-Main Business on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Is it Sustainable | | :--- | :--- | :--- | :--- | | Investment Income | 43,233,017.82 | 33.18% | Yes | | Fair Value Change Gains/Losses | 25,739,804.50 | 19.76% | Yes | | Asset Impairment | -7,276,779.27 | -5.59% | Yes | | Non-Operating Income | 54,636.08 | 0.04% | No | | Non-Operating Expenses | 4,794,615.05 | 3.68% | No | V. Analysis of Assets and Liabilities Monetary funds significantly decreased, while trading financial assets and inventories substantially increased, and short-term borrowings and lease liabilities rose, with some assets restricted Significant Changes in Asset Composition (Period-End vs Period-Beginning) | Item | Period-End Amount (RMB) | Proportion of Total Assets | Period-Beginning Amount (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 409,370,627.76 | 7.36% | 1,177,549,730.27 | 21.56% | -14.20% | | Trading Financial Assets | 2,766,269,586.54 | 49.74% | 2,330,549,362.34 | 42.67% | 7.07% | | Inventories | 553,197,717.34 | 9.95% | 361,381,264.76 | 6.62% | 3.33% | | Right-of-Use Assets | 41,310,538.16 | 0.74% | 0 | 0.00% | 0.74% | | Short-Term Borrowings | 310,320,361.11 | 5.58% | 230,255,536.11 | 4.22% | 1.36% | | Lease Liabilities | 31,490,169.93 | 0.57% | 0 | 0.00% | 0.57% | Assets and Liabilities Measured at Fair Value | Item | Period-End Amount (RMB) | | :--- | :--- | | Trading Financial Assets | 2,766,269,586.54 | | Other Equity Instrument Investments | 8,471,672.24 | | Total | 2,774,741,258.78 | - At period-end, 253 million RMB of assets were restricted, including 200 million RMB in structured deposits (unwithdrawable before maturity) and 52.94 million RMB in wealth management products (pledged for loans)[127] VI. Analysis of Investment Status The company primarily engaged in securities investments, with a 20 million RMB investment in Ruixuan No. 12 FOF product, generating a small profit, and had no derivative investments Securities Investment Status | Security Type | Security Code | Security Name | Initial Investment Cost (RMB) | Period-End Book Value (RMB) | Profit/Loss for Reporting Period (RMB) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | AD8662 | Ruixuan No. 12 FOF | 20,000,000.00 | 20,029,589.00 | 29,589.00 | Own Capital | - The company had no derivative investments during the reporting period[133] VII. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposal matters during the reporting period - The company did not dispose of significant assets during the reporting period[134] - The company did not dispose of significant equity during the reporting period[135] VIII. Analysis of Major Controlled and Invested Companies This section analyzes major subsidiaries, highlighting Shandong Xiantan Penglai Poultry Co., Ltd.'s strong profitability and Shandong Xiantan Zhucheng Food Co., Ltd.'s losses during the reporting period Financial Status of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Xiantan Penglai Poultry Co., Ltd. | Subsidiary | Breeder chicken farming; sales of hatching eggs, chicks; commercial chicken farming, sales; feed sales | 5,000,000.00 | 203,457,429.19 | 191,897,469.15 | 48,001,326.64 | 17,639,363.26 | 17,639,904.26 | | Shandong Xiantan Zhucheng Food Co., Ltd. | Subsidiary | Poultry slaughtering; poultry farming; food production; food business; feed production; feed additive production; livestock and poultry breeding production; livestock and poultry breeding business; grain acquisition; food internet sales; catering services | 700,000,000.00 | 1,205,809,057.16 | 555,946,740.25 | 39,149,079.74 | -646,577.30 | -601,035.00 | - The company did not acquire or dispose of subsidiaries during the reporting period[136] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[137] X. Risks Faced by the Company and Countermeasures Investors should review the risks detailed in Section I of the report, noting that future plans and performance forecasts do not constitute a commitment - Risks faced by the company are detailed in "Section I Important Notes, Table of Contents, and Definitions" of the report[137] - Future plans and performance forecasts mentioned in the report do not constitute a commitment by the company to any investors or related parties[137] Section IV Corporate Governance I. Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period The company held three shareholder meetings during the reporting period, including two extraordinary and one annual general meeting, with investor participation rates between 44.97% and 45.03% Shareholder Meetings During the Reporting Period | Meeting Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | | :--- | :--- | :--- | :--- | :--- | | First Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 44.97% | January 08, 2021 | January 09, 2021 | | 2020 Annual General Meeting | Annual General Meeting | 44.99% | April 20, 2021 | April 21, 2021 | | Second Extraordinary General Meeting of 2021 | Extraordinary General Meeting | 45.03% | July 09, 2021 | July 10, 2021 | - The company had no preferred shareholders with restored voting rights requesting to convene extraordinary general meetings during the reporting period[141] II. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, consistent with the 2020 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[142] III. Profit Distribution and Capital Reserve Conversion to Share Capital During the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[142] IV. Implementation of 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 implemented 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[143] Section V Environmental and Social Responsibility I. Significant Environmental Issues The company and its subsidiaries, designated as key pollutant-discharging units, operated all pollution control facilities normally, meeting emission standards without violations or penalties - The company and its subsidiaries are designated as key pollutant-discharging units by environmental protection authorities[147] Major Pollutant Emission Data (Shandong Xiantan Food Co., Ltd.) | Pollutant | Emission Method | Number of Outlets | Emission Concentration | Execution Standard | Total Emission (tons) | | :--- | :--- | :--- | :--- | :--- | :--- | | COD | Continuous emission | 1 | 55.6mg/l | 500mg/l | 71.17 | - The company's wastewater treatment facility has a designed capacity of 4,000 m³/day, uses efficient air flotation + A/O process, and is equipped with online monitoring devices[147] - During the reporting period, all company facilities for pollution treatment and prevention operated normally, with no violations or administrative penalties for environmental issues[148][152] - The company has developed and filed emergency plans for environmental incidents with local environmental protection authorities, conducting a comprehensive drill annually[149] II. Social Responsibility As a key agricultural industrialization enterprise, the company actively fulfills social responsibilities by protecting stakeholders, promoting environmental sustainability, enhancing cooperative farm income, and engaging in social welfare and poverty alleviation - Company strictly adheres to laws and regulations, improves corporate governance, standardizes information disclosure, treats all investors fairly, and actively interacts to