Company Overview - Shenzhen Agricultural Products Group Co., Ltd. was established in 1989 and listed on the Shenzhen Stock Exchange in 1997, operating 35 logistics parks across over 20 major cities in China, forming the largest wholesale market network for agricultural products in the country [1] - The average annual trading volume of the company's wholesale markets exceeds 33 million tons, with an average annual transaction value exceeding 250 billion yuan [1] Business Operations - The company covers the entire agricultural product circulation chain, including standardized base planting, cold chain processing, wholesale market construction and operation, urban ingredient distribution, brand development, and import-export trade [2] - The company aims to enhance trading efficiency in agricultural product circulation by optimizing market space layout and expanding new trading varieties [3] Revenue Structure - The revenue structure of the wholesale markets includes rent, commissions, management fees, and parking fees, with pricing based on market conditions and local economic development [2] - In the first half of the year, the company achieved a revenue of 3.491 billion yuan, a year-on-year increase of 44.98%, driven by growth in import-export, ingredient distribution, and single product trade [6] Digital Transformation - The company is advancing its digital transformation through big data, IoT, and cloud computing, with a focus on enhancing digital operational capabilities [5] - The cumulative transaction amount of the integrated payment system reached over 22.5 billion yuan in the first half of the year [5] Contract Liabilities - The company's contract liabilities increased to 638 million yuan, a year-on-year growth of 29.95%, primarily due to advance rental payments and sales from subsidiaries [7] Impact of New Retail - The development of online new retail complements the physical wholesale markets, which remain the main channel for fresh agricultural product supply, especially during emergencies [4]

Core Viewpoint - The company is focused on deepening its presence in the agricultural product circulation sector, extending from wholesale markets to the entire agricultural product supply chain [1] Group 1: Business Strategy - The company integrates global partner merchant resources to enhance the value of the agricultural supply chain [1] - It provides a comprehensive range of "one-stop" services including base certification, cold chain processing, wholesale trading venues, food safety testing, brand cultivation and sales, intensive processing and distribution, promotion of high-quality specialty agricultural products, supply-demand matching, and agricultural product import-export [1] Group 2: Market Positioning - The company aims to establish a new development pattern centered on domestic wholesale markets, with interlinked domestic and international business and resources that promote mutual sharing and enhancement [1]

Company Overview - Shenzhen Agricultural Products Group Co., Ltd. was established in 1989 and listed on the Shenzhen Stock Exchange in 1997, operating 35 logistics parks across over 20 major cities in China, forming the largest wholesale market network in the country [1] - The average annual trading volume of the company's wholesale markets exceeds 33 million tons, with an average annual trading value exceeding 250 billion yuan [1] Business Operations - The company covers the entire agricultural product supply chain, including standardized base planting, cold chain processing, wholesale market construction, urban ingredient distribution, brand development, and import-export trade [2] - The company leverages its "national network" advantage to establish quality planting bases and enhance market competitiveness through integrated operations [2] Financial Performance - In the first half of the year, the company achieved a revenue of 3.491 billion yuan, a year-on-year increase of 44.98%, driven by growth in import-export, ingredient distribution, and single product trade [4] Service Capabilities - The company provides a comprehensive range of services across the agricultural product supply chain, including certification, cold chain processing, wholesale trading, food safety testing, brand cultivation, and import-export services [5] - The company has developed a digital payment system, with a total transaction amount exceeding 22.5 billion yuan in the first half of the year [7] Market Dynamics - The development of online retail does not significantly impact the company's core business, as physical wholesale markets remain essential for ensuring urban food security, especially during emergencies [6] - The company has successfully expanded its import-export business, establishing partnerships with countries like Thailand, Vietnam, and Brazil, and introducing various high-quality products [8][9] Brand Development - The company actively promotes its "Deep Agricultural Selection" brand by ensuring product quality through multiple testing standards and participating in promotional activities [9] - It has successfully cultivated several premium products, including Sichuan Yaba Gan, Danzhou Beibei Pumpkin, and others [9] Employee Engagement - The company's employee stock ownership plan for 2024 was completed through a competitive bidding process, reflecting confidence in the company's development and enhancing employee motivation [9]

Company Overview - Shenzhen Agricultural Products Group Co., Ltd. was established in 1989 and listed on the Shenzhen Stock Exchange in 1997, investing in 35 physical agricultural product logistics park projects across over 20 major cities in China, forming the largest wholesale market network in the country [1][2] - The average annual trading volume of the company's wholesale markets exceeds 33 million tons, with an average annual trading value exceeding CNY 250 billion [1][2] Business Operations - The company covers the entire agricultural product circulation chain, including standardized base planting, cold chain processing, wholesale market construction and operation, urban ingredient distribution, brand development, and import-export trade [2] - The company aims to enhance market competitiveness and operational foundation through a networked operation of wholesale markets and dynamic layout of planting bases [2] Financial Performance - In the first half of 2025, the company achieved operating revenue of CNY 3.491 billion, a year-on-year increase of 44.98% [3] - The net profit attributable to shareholders was CNY 156 million, a year-on-year increase of 10.50%, while the total net profit was CNY 190 million, a year-on-year decrease of 11.07% due to the absence of a one-time gain from the previous year [3][4] Growth Drivers - The significant revenue growth is attributed to the rapid increase in import-export, ingredient distribution, and single product trade across the entire industry chain [4] - The company continues to expand its market presence and enhance operational capabilities, focusing on improving transaction efficiency in the agricultural product circulation sector [5] Competitive Advantages - With 36 years of development, the company has established a robust wholesale market network and possesses extensive operational experience and management talent in the agricultural product sector [6] - The company provides a comprehensive range of services, including wholesale trading venues, base certification, food safety testing, brand cultivation, and supply chain services [6] Employee Stock Ownership Plan - The employee stock ownership plan was completed in November 2024, aiming to establish a profit-sharing mechanism to enhance employee motivation and drive the company's transformation and sustainable development [7] Dividend Policy - The company plans to distribute a cash dividend of CNY 0.70 per 10 shares (including tax) for the 2024 fiscal year, totaling CNY 118,787,489.17, which accounts for 30.92% of the net profit attributable to shareholders [8]

Financial Performance - The company reported a total revenue of 3.491 billion yuan for the first half of 2025, an increase of 44.98% year-on-year [1] - The net profit attributable to shareholders was 190 million yuan, a decrease of 11.07% year-on-year [1] - The gross profit margin was 20.66%, down 31.57% year-on-year, while the net profit margin was 7.81%, down 39.09% year-on-year [1] - The total operating expenses, including sales, management, and financial expenses, amounted to 352 million yuan, accounting for 10.09% of revenue, a decrease of 34.75% year-on-year [1] Cash Flow and Debt - The company’s cash flow from operating activities increased by 32.76% year-on-year, attributed to higher cash inflows from sales and government subsidies [6] - The company’s cash and cash equivalents net increase decreased by 40.86%, primarily due to reduced cash flow from investment activities [10] - The interest-bearing debt ratio reached 30.18%, indicating a significant level of leverage [13] Accounts Receivable and Inventory - Accounts receivable increased by 41.3% year-on-year, raising concerns about the company's collection efficiency [1] - The company’s inventory management and turnover rates should be monitored closely due to the increase in accounts receivable [13] Investment and Growth - The company has been actively expanding its business, with significant increases in revenue driven by new product categories and channel expansions [3][4] - The company’s return on invested capital (ROIC) was reported at 4.57%, indicating a relatively weak capital return performance historically [11] Market Position and Strategy - The company has established a robust agricultural product wholesale market network across over 20 major cities in China, enhancing its competitive advantage in the agricultural supply chain [15] - The company aims to provide comprehensive supply chain services, including wholesale trading venues, food safety testing, and brand cultivation, to strengthen its market position [15]

Group 1: Company Overview and Competitive Advantages - The company has invested in 35 physical agricultural product logistics parks across over 20 major cities in China, forming the largest wholesale market network in the country [1] - The company provides a comprehensive "one-stop" service for the agricultural product supply chain, integrating domestic and international resources [2] - The company has a strong position in the wholesale market, which remains the main channel for agricultural product distribution [2] Group 2: Business Development and Revenue Growth - The urban food ingredient distribution business has seen a revenue increase of approximately 19% year-on-year in 2024 [2] - The company is actively expanding its market presence in regions such as Chengdu, Shanghai, and Guangzhou, establishing key distribution hubs [3] - Overall operating income has improved in various regions, with notable growth in markets like Changsha, Huizhou, and Shenzhen [4] Group 3: Profitability and Financial Performance - The net profit for Guangxi Haijixing reached approximately 71.76 million yuan, a year-on-year increase of 12.18% [4] - The company distributed cash dividends of 0.70 yuan per 10 shares in 2024, totaling approximately 118.79 million yuan [4] - The company anticipates a reduction in its debt-to-asset ratio by about 5 percentage points due to a planned stock issuance [5] Group 4: Future Opportunities and Challenges - The company aims to enhance its core competitiveness and risk management capabilities in response to market demand fluctuations and intensified competition [5] - The national emphasis on agricultural product circulation system construction presents significant opportunities for growth [5] - The company focuses on refining operations in key markets such as Shenzhen, Chengdu, and Shanghai, leveraging digital upgrades and service enhancements [5]