Guangdong Haid Group Co., Ltd.
2024 Annual Report
April 2025
Section I Important Tips, Contents and InterpretationThe company's board of directors, board of supervisors, directors, supervisorsand senior management personnel guarantee that the contents of the annualreport are true, accurate and complete, and there are no false records,misleading statements or major omissions, and bear individual and joint legalliabilities.Xue Hua, the person in charge of the company, Yang Shaolin, the person incharge of accounting work, and Yang Shaolin, the person in charge of theaccounting organization (accounting officer), hereby confirm that the financialreport in this annual report is true, accurate and complete.All directors attended the board meeting at which the report was considered.
1. The risk of abnormal weather affecting the periodic fluctuations of the feedindustryThe feed industry mainly serves the downstream aquaculture industry. Whennatural factors such as high temperature, extreme cold, rain, typhoon andother natural factors change abnormally during the breeding process, theremay be large fluctuations in the number of breeding stocks and storage ponds,and even large-scale outbreaks of diseases, which will affect the demand forfeed, and there will be a risk of phased or regional demand fluctuations. Forexample, continuous rainy weather will reduce the dissolved oxygen saturationof the water body, deteriorate the water quality, affect the feeding of aquatic
animals, cause farmers to passively reduce feeding, and some aquatic productswill not adapt to the drastic changes in the environment and even die, whichwill affect the short-term aquatic feed demand; Floods caused by heavyrainfall in the region in the short term will lead to the loss of aquatic productsand livestock and poultry breeding, which will affect the normal feed demand.After floods, general animal epidemics are prone to and frequent, and will alsohave an adverse impact on the production and operation of feed enterprises.Risk response measures: (1) The company is currently deploying factories anddeveloping local markets in major breeding regions such as South China,Central China, East China, and North China, as well as overseas markets suchas Southeast Asia, South America, and Africa. The expansion of the regionallayout can effectively deal with the risks of abnormal weather and naturaldisasters in local areas; (2) Continuously improve the service ability of farmers,through the joint empowerment of feed, seedlings and animal protection,provide scientific breeding plans, and provide counterpart guidance from thecompany's technical personnel to improve farmers' anti-risk ability andbreeding competitiveness, and reduce the adverse effects caused by abnormalweather influences.
2. Risks brought by breeding diseases to the company's production andoperationWith the change of the environment and the development of large-scalebreeding, animal diseases will also occur from time to time. For example, the
"African swine fever virus" that broke out nationwide in August 2018, and thediseases such as the "blue-ear virus" in pigs, the "EMS disease" in shrimpfarming and the "H7N9 virus" in poultry have appeared in recent years. Theoccurrence of the disease will lead to the reduction of the production and stockof farmed animals, which will directly inhibit the scale of breeding and reducethe demand for feed in the short term; The prevalence of major animaldiseases can also easily affect consumer psychology, leading to shrinkingterminal demand, causing the aquaculture industry to fall into a stageddownturn, affecting feed demand. At the same time, the outbreak of regionalepidemics will bring about major adjustments in the breeding structure andinventory in some areas, which will affect the demand for feed in the region.Risk response measures: (1) The company's feed varieties cover livestock andpoultry feeds such as pig feed, chicken feed and duck and goose feed, as well asaquatic feeds such as fish feed and shrimp feed. The variety is complete andthe structure is balanced, which can effectively deal with the disease risk of asingle breeding species. At the same time, the company is currently deployingfactories and developing local markets in major domestic breeding regions andoverseas markets such as Southeast Asia, South America and Africa. Theexpansion of the regional layout can effectively deal with the risk of epidemicoutbreaks in local areas; (2) The company has established a strict diseaseprevention and control system in the production process of feed products, andat the same time, utilizes technical advantages and professional capabilities to
implement the prevention and control of breeding diseases from the source.
3. The risk of major raw material price fluctuations
The feed ingredients are mainly various bulk agricultural products, mainlycorn and soybeans (soybean meal). In recent years, the domestic andinternational agricultural product markets have been closely linked. Climatechanges, changes in planting area and harvest, changes in purchasing, storageand subsidy policies, changes in import and export policies, political games invarious countries, international trade relations, shipping conditions and otherlogistics capacity and cost fluctuations, and exchange rate changes in majorgrain-producing countries may bring large fluctuations in agricultural productprices, which in turn may have a certain impact on feed and breeding costs.With the strengthening of the internationalization of agricultural producttrade, the factors of agricultural product price change are becoming more andmore complex, and the price fluctuation is also intensified. If the company failsto grasp the changes in the feed raw material market in a timely manner anddo a good job in the strategic management and risk control of procurement ina timely manner, it may face the risk of rising comprehensive procurementcosts.Risk response measures: (1) The company divides raw material varieties andimplements a combination of centralized procurement of bulk varieties andlocal procurement of regional varieties, which not only ensures the advantagesof large-scale procurement of bulk raw materials, but also strives to obtain the
localized advantages of rapid response to regional procurement; (2) Thecompany continues to invest in the construction of the raw materialprocurement research system. The professional raw material informationresearch department team is relatively mature. It conducts strategicprocurement through real-time tracking, research, and judgment of themarket trend of domestic and foreign bulk raw materials, and conductsposition risk management on bulk raw materials through tools such as futureshedging and raw material trading, which can effectively control procurementrisks; (3) The company has a rich accumulation of research and developmentof animal nutrition and feed formula technology. It has a huge R&D team andinvests a lot of money in research and development every year. It focuses onanimal nutrition requirements, feed formula technology, breed breeding andbreeding of excellent germplasm, healthy breeding mode and other researchdirections. It has a deep understanding of animal nutrition requirements and arelatively high technical level of comprehensive utilization of raw materials.Therefore, when the price of raw materials fluctuates, It can controlreasonable feed nutrition level and formula cost by quickly adjusting theformula.
4. Risks of environmental protection laws and policies on the scale structureand regional adjustment of the aquaculture industryIn recent years, the state has introduced a series of environmental protectionregulations, such as the new Environmental Protection Law, the Regulations
on Pollution Prevention and Control of Large-scale Livestock and PoultryBreeding, the Action Plan for Water Pollution Prevention and Control, and theGuiding Opinions on Promoting the Adjustment and Optimization of PigBreeding Layout in Southern Water Network Areas. According to theregulations and policies of the central government, no-breeding areas andrestricted-breeding areas have been established all over the country. Theimplementation of the environmental protection policy will not only furtheraccelerate the withdrawal of retail pig farmers, reduce the unqualifiedenvironmental protection and small-scale backward production capacity,continue to expand the production capacity of large-scale farmers, andcontinuously improve the scale and structure of breeding; in addition, theestablishment of no-breeding areas and restricted-breeding areas will alsoadjust the production capacity of pig breeding in various regions and acrossthe country. The scale structure of breeding and the regional adjustment ofproduction capacity will definitely have a profound impact on the existingproduction capacity layout, market share, pricing power and business model ofthe feed industry. The impact of environmental protection policies on the pigbreeding and feed industries puts the existing dominant companies in themarket at risk of reshuffling.Risk response measures: (1) The company continues to improve its servicecapabilities for farmers. In addition to feed products, it has a layout in theindustrial chain of animal protection, vaccines, and finance, which is highly
sticky to large-scale farmers; (2) The company's feed varieties cover livestockand aquatic products, and the product line is rich, and the production lines ofpig feed, chicken feed, duck feed and pellet fish feed can be shared. Byadjusting the production capacity of local bureaus, the company can quicklyswitch production capacity layout and adjust to meet the changes in theindustry; (3) The company adopts various models to accelerate the productioncapacity layout in areas with abundant resources and strong environmentalcarrying capacity, and seize the market share of new breeding areas; (4) Thecompany continues to increase R&D investment, and the research results inkey technologies of microbial fermented feed, key technologies of feedantibiotic substitutes, and key technologies of functional health feed have beeneffectively applied, leading the progress and development of the industry.
5. The risk of exchange rate fluctuations
The global procurement of feed raw materials has become the norm, and thecompany's overseas investment and overseas business scale are also rapidlyexpanding. The scale of cross-border fund settlement and overseas asset stockhave increased significantly. It involves the currency types of multiplecountries, and the exchange rate fluctuation factors of each currency aredifferent, and the exchange rate fluctuation of any currency may have acertain impact on the business settlement cost and asset stock value in theregion.Risk response measures: (1) According to the business scale, business model
and settlement characteristics of each region and country, the companycarefully selects the settlement currency based on the principle of strict controlof exchange rate risk, and strives to achieve a relatively balanced regionalcapital inflow and outflow through the structural arrangement of financingsources and financing varieties, and control exchange rate risk; (2) Theexpansion of two-way fluctuations in the RMB exchange rate has become thenew normal. The company further enhances its awareness of foreign exchangerisk management, arranges settlement models according to procurement andsales strategies and the cyclical characteristics of import and export business,and flexibly uses financial instruments such as forward foreign exchangesettlement and sales, swaps and foreign exchange options to lock in exchangerate risks, control procurement and sales costs, and control risks that mayarise from exchange rate fluctuations.Forward-looking statements such as the company's future plans covered in thisreport do not constitute a material commitment of the company to anyinvestors and related parties. Investors are advised to be aware of investmentrisks.The profit distribution plan approved by the board of directors of the companyis: based on the total share capital of the repurchased shares deducted from theshare registration date when the distribution plan is implemented in the future,a cash dividend of RMB 11.00 (including tax) will be distributed to allshareholders for every 10 shares, and 0 shares (including tax) will be
distributed, and the share capital will not be converted from the public reserve.In this report, if the mantissa of the total count does not match the mantissa ofthe listed values, it is due to rounding.
Content
Section I Important Tips, Contents and Interpretation ...... 1
Section Ⅱ Company Profile and Main Financial Indicators ...... 13
Section Ⅲ Management Discussion and Analysis ...... 18
Section IV Corporate Governance ...... 54
Section V Environmental and Social Responsibility ...... 86
Section VI Important Matters ...... 93
Section Ⅶ Changes in Shares and Shareholders ...... 126
Section Ⅷ Relevant Information on Preferred Shares ...... 135
Section Ⅸ Bond Related Information ...... 136
Section X Financial Report ...... 137
Reference file directory
(1) Financial statements with the signatures and seals of the person in chargeof the company, the person in charge of accounting work, and the person in chargeof the accounting organization (accounting officer).
(2) The original audit report with the seal of the accounting firm and thesignature and seal of the certified public accountant.
(3) The originals of all company documents and announcements that have beenpublicly disclosed during the reporting period.
(4) Annual reports published in other securities markets.
Paraphrase
| Paraphrase | Depend on | Paraphrase |
| The company, the company, the group, the Haid Group | Depend on | Guangdong Haid Group Co., Ltd. |
| Board of directors | Depend on | Board of Directors of Guangdong Haid Group Co., Ltd. |
| Supervisory Board | Depend on | Board of Supervisors of Guangdong Haid Group Co., Ltd. |
| General Meeting of Shareholders | Depend on | Shareholders' meeting of Guangdong Haid Group Co., Ltd. |
| The Companies Act | Depend on | "Company Law of the People's Republic of China" |
| Securities Act | Depend on | "Securities Law of the People's Republic of China" |
| Articles of Association | Depend on | "Articles of Association of Guangdong Haid Group Co., Ltd." |
| Yuan | Depend on | RMB Yuan |
| Reporting period, current period, current year | Depend on | January 1, 2024 to December 31, 2024 |
| Last year, the same period last year | Depend on | January 1, 2023 to December 31, 2023 |
| End of period | Depend on | December 31, 2024 |
| Beginning, the beginning of the year | Depend on | January 1, 2024 |
| China Securities Regulatory Commission | Depend on | China Securities Regulatory Commission |
Section Ⅱ Company Profile and Main Financial IndicatorsI. Company Information
| Stock abbreviation | Haid Group | Stock code | 002311 |
| Stock abbreviation before the change (if any) | No | ||
| Stock exchange | Shenzhen Stock Exchange | ||
| Chinese name of the company | 广东海大集团股份有限公司 | ||
| Chinese abbreviation of the company | 海大集团 | ||
| Foreign name of the company (if any) | Guangdong Haid Group Co., Limited | ||
| Abbreviation of the company's foreign name (if any) | Haid Group | ||
| Legal representative of the company | Xue Hua | ||
| Registered address | Room 701, Building 2, Haid Mansion, No. 42, Road 4, Wangbo, Nancun Town, Panyu Dist, Guangzhou, China | ||
| Postal code of registered address | 511445 | ||
| Historical changes of the company's registered address | There was no change of registered address during the reporting period | ||
| Office address | Building 1, Haid Science Park, No. 8 Longtai Street, Hualong Town, Panyu District, Guangzhou, Guangdong Province | ||
| Postal code of office address | 511434 | ||
| Company URL | www.haid.com.cn | ||
| zqbgs@haid.com.cn | |||
II. Contact person and contact information
| Board secretary | Securities Affairs Representative | |
| Name | Huang Zhijian | Lu Jiewen, Yang Huafang |
| Contact address | Building 1, Haid Science Park, No. 8 Longtai Street, Hualong Town, Panyu District, Guangzhou, Guangdong Province | Building 1, Haid Science Park, No. 8 Longtai Street, Hualong Town, Panyu District, Guangzhou, Guangdong Province |
| Telephone | 8620-39388960 | 8620-39388960 |
| Fax | 8620-39388958 | 8620-39388958 |
| zqbgs@haid.com.cn | zqbgs@haid.com.cn |
III. Information Disclosure and Preparation Location
| The stock exchange website where the company discloses its annual report | Shenzhen Stock Exchange http://www.szse.cn |
| The name and website of the media where the company discloses its annual report | "Securities Times", "China Securities Journal", "Securities Daily", "Shanghai Securities News" and www.cninfo.com.cn |
| Where the company's annual report is prepared | Corporate Securities Department |
IV. Registration changes
| Unified Social Credit Code | No change |
| Changes in the company's main business since its listing (if any) | No change |
| Changes in previous controlling shareholders (if any) | No change |
V. Other relevant informationAccounting firm hired by the company
| Accounting firm name | Grant Thornton Zhitong Certified Public Accountants LLP |
| Office address of accounting firm | Floor 5, Scitech Plaza, No. 22 Jianguomenwai Street, Chaoyang District, Beijing |
| Name of Signing Accountant | Li Xujia, Qiu Shuntong |
Sponsor institutions engaged by the company to perform continuous supervision duties during the reportingperiod
□ Applicable ? Not Applicable
Financial consultants hired by the company to perform continuous supervision duties during the reportingperiod
□ Applicable ? Not Applicable
VI. Key Accounting Data and Financial IndicatorsWhether the company needs to retrospectively adjust or restate the accounting data of previous years? Yes □ No
| 2024 | 2023 | Increase or decrease this year over the previous year | 2022 | |
| Operating income (yuan) | 114,601,056,662.29 | 116,117,168,742.97 | -1.31% | 104,715,417,485.92 |
| Net profit attributable to shareholders of listed companies (yuan) | 4,503,995,518.39 | 2,741,256,374.98 | 64.30% | 2,957,330,734.56 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (yuan) | 4,539,064,747.56 | 2,541,491,959.42 | 78.60% | 2,883,311,221.53 |
| Net cash flow from operating activities (yuan) | 7,996,255,375.05 | 12,698,374,699.54 | -37.03% | 6,817,894,250.91 |
| Basic earnings per share (yuan/share) | 2.71 | 1.66 | 63.25% | 1.79 |
| Diluted earnings per share (yuan/share) | 2.70 | 1.66 | 62.65% | 1.79 |
| Weighted average return on equity | 20.88% | 14.53% | 6.35% | 18.47% |
| End of 2024 | End of 2023 | Increase or decrease at the end of this year compared to the end of the previous year | End of 2022 | |
| Total assets (yuan) | 48,140,586,659.70 | 44,746,735,775.61 | 7.58% | 44,470,388,435.88 |
| Net assets attributable to shareholders of listed companies (yuan) | 23,905,302,719.55 | 19,647,107,064.19 | 21.67% | 17,832,539,336.58 |
The lower of the company's net profit before and after deducting non-recurring gains and losses in the last threefiscal years is negative, and the audit report of the most recent year shows that the company's ability to continueoperations is uncertain
□ Yes ? No
The lower of the net profit before and after deduction of non-recurring gains and losses is negative
□ Yes ? No
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with internationalaccounting standards and Chinese accounting standards at the same time
□ Applicable ? Not Applicable
During the reporting period, there was no difference in net profit and net assets in the financial reports disclosedin accordance with international accounting standards and in accordance with Chinese accounting standards.
2. Differences in net profit and net assets in financial reports disclosed in accordance with overseasaccounting standards and in accordance with Chinese accounting standards
□ Applicable ? Not Applicable
During the reporting period, there was no difference in net profit and net assets in the financial reports disclosedin accordance with overseas accounting standards and in accordance with Chinese accounting standards.
VIII. Main Financial Indicators by Quarter
Unit: Yuan
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 23,171,735,504.66 | 29,124,064,147.12 | 32,564,830,090.03 | 29,740,426,920.48 |
| Net profit attributable to shareholders of listed companies | 860,694,642.71 | 1,264,353,714.60 | 1,498,774,865.48 | 880,172,295.60 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 759,671,794.96 | 1,273,122,794.69 | 1,485,952,788.50 | 1,020,317,369.41 |
| Net cash flow from operating activities | -2,546,897,105.70 | 4,448,044,505.16 | 5,912,718,849.74 | 182,389,125.85 |
Whether the above financial indicators or their total numbers are materially different from the relevant financialindicators of the company's disclosed quarterly reports and semi-annual reports
□ Yes ? No
IX. Items and amounts of non-recurring gains and losses
?Applicable □ Not applicable
Unit: Yuan
| Projects | 2024 Amount | 2023 Amount | 2022 Amount | Description |
| Gains and losses on disposal of illiquid assets (including the write-off portion of the provision for asset impairment) | -59,464,676.78 | 9,004,677.06 | -45,840,354.94 | |
| Government subsidies included in the current profit and loss (except for government subsidies that are closely related to the company's normal business operations, comply with national policies and regulations, are enjoyed according to determined standards, and have a continuous impact on the company's profit and loss) | 88,405,109.35 | 59,119,428.77 | 125,600,697.83 | |
| In addition to the effective hedging business related to the company's normal business operations, the gains and losses from changes in fair value arising from the holding of financial assets and financial liabilities by non-financial enterprises and the gains and losses arising from the disposal of financial assets and financial liabilities | -58,602,433.58 | 147,165,591.84 | 39,455,335.15 | |
| Gains and losses from external entrusted loans | 0.00 | 326,833.38 | 530,942.74 | |
| Reversal of provision for impairment of | 34,087,704.91 | 14,802,077.94 | 6,167,665.26 |
| Projects | 2024 Amount | 2023 Amount | 2022 Amount | Description |
| receivables separately tested for impairment | ||||
| The investment cost of the enterprise to obtain subsidiaries, associates and joint ventures is less than the income from the fair value of the investee's identifiable net assets when the investment is obtained | 0.00 | 0.00 | 812,610.97 | |
| Other non-operating revenue and expenditure other than the above-mentioned items | -3,065,353.75 | -8,642,137.95 | -34,643,762.69 | |
| Other profit and loss items that meet the definition of non-recurring profit and loss | 0.00 | 0.00 | 5,936,636.84 | |
| Less: Income tax impact amount | 19,665,499.65 | 9,966,547.74 | 17,625,340.80 | |
| Amount of impact on minority shareholders’ equity (after tax) | 16,764,079.67 | 12,045,507.74 | 6,374,917.33 | |
| Total | -35,069,229.17 | 199,764,415.56 | 74,019,513.03 | -- |
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable ? Not Applicable
The company does not have other specific circumstances of profit and loss items that meet the definition of non-recurring profit and loss.Explanation of the situation of defining the non-recurring profit and loss items listed in the "ExplanatoryAnnouncement No. 1 on Information Disclosure of Companies Offering Securities to the Public-Non-recurringProfit and Loss" as recurring profit and loss items
□ Applicable ? Not Applicable
There is no situation in which the company defines the non-recurring gains and losses listed in the "ExplanatoryAnnouncement No. 1 on Information Disclosure of Companies Offering Securities to the Public-Non-recurringGains and Losses" as recurring gains and losses.
Section Ⅲ Management Discussion and AnalysisI. The industry in which the company operates during the reporting periodIn 2024, the company's domestic and overseas feed sales reached new highs. Standing at a new startingpoint, we can recognize and develop the global feed industry from a broader global perspective. According torelevant statistics, the current global animal feed production is close to 1.3 billion tons. Specifically:
China is the world's largest feed producer, with an annual feed output of over 300 million tons, accountingfor about 24% of the global feed output. In terms of varieties, the output of pig feed is about 140 million tons;the output of poultry feed is about 130 million tons; the output of aquatic feed is about 23 million tons,accounting for more than 40% of the global aquatic feed; and the output of other feeds is about 20 million tons.Among the top ten feed companies in the world, Chinese companies account for half, and the top three are allChinese companies. The huge market capacity and excess capacity have led to fierce competition in the industry.In China, the feed industry has shifted from the single-dimensional competition of feed products to multi-dimensional competition such as seedlings, animal protection, feed product strength and the company's ownbreeding technical service capabilities. It is increasingly difficult for companies that lack competitiveness tooperate. This is mainly due to: ① In recent years, there is a cyclical mismatch between the fluctuation of thesales price of downstream aquaculture products and the fluctuation of raw materials, which leads to the poortransfer of cost pressure in the feed industry, which has an impact on the operating profit of the feed industry,Feed companies that lack scale advantages, procurement advantages, and raw material substitution technologyreserves are more difficult to operate and make profits; ② The structure of the downstream livestock andpoultry breeding industry is constantly changing, and some uncompetitive individual free-range farmers aregradually withdrawing, and the main breeding force has become a moderately large-scale family farm andbreeding company. Its ability to distinguish the product strength of the feed product itself is enhanced, and it isdifficult for companies that lack R&D accumulation and systematic advantages to create excellent products tomatch the customer's demand for high-quality feed; ③ The overcapacity of pig breeding has led to thediversification and rapid iteration of breeding models, and the increased operating pressure of asset-heavyenterprises. In addition, due to the iteration of the model, farmers' demand for feed products will bedifferentiated, and the competition requirements for the feed industry will also be higher.
The feed capacity in the Asia-Pacific region (excluding China) exceeds 150 million tons. In addition toChina, the region has several of the world's top ten feed producing countries, including India, Vietnam andJapan. In terms of varieties, broilers, laying hens, and aquatic feed contributed most of the production. With therapid economic development and population growth in Southeast Asia, there is a huge demand for animalprotein such as meat, eggs, and milk. According to the OECD-FAO Agricultural Outlook 2021-2030, from2018 to 2020, the proportion of animal protein in the total protein supply in Southeast Asia is very low, about13%; in the same period, it is more than 35% in China. In the future, the supply of animal protein in SoutheastAsia will continue to grow, thereby expanding the feed market capacity.The vast market capacity, large population, abundant breeding resources, and huge economic developmentpotential have attracted the world's excellent feed manufacturers to concentrate in this region, includingtraditional Southeast Asian multinational feed manufacturers and well-known European and American feedmanufacturers, many of which are among the top 20 companies in the world, and due to the relatively lowoverall economic strength and industrialization level of local countries, the supply of raw materials is unstable,and local small feed manufacturers generally lack competitiveness, There is no market space for expansion;therefore, the industry is currently mainly competition among multinational companies, still focusing on theproduct strength of the feed products themselves, and relying on product quality to gain a competitiveadvantage.
The feed capacity in North America exceeds 250 million tons, mainly for broiler, pig and beef cattle. Thereare more than 6,000 feed factories in the area. The United States accounts for most of the region's production,with an output of more than 230 million tons, and is also the world's second largest feed producer.
The feed capacity in Europe also exceeds 250 million tons, mainly for broiler, pig and dairy cows. Amongthem, Russia, Spain, and Turkey are among the top ten feed producers in the world, and the total feed output ofthe three countries exceeds 80 million tons.
The feed capacity in South America is about 200 million tons, of which Brazil is the third largest feedproducer in the world, with a feed output of over 80 million tons. In this region, broiler feed production exceeds70 million tons, second only to the Asia-Pacific region; layer feed production exceeds 25 million tons; pig feedexceeds 40 million tons; and aquatic feed exceeds 7 million tons. It is an important breeding area for tilapia andlitopenaeus vannamei.
South America has unique natural advantages: abundant feed ingredients provide sufficient raw materialsupply for feed enterprises; rich water resources, rapid growth of aquaculture industry; superior geographical
location, close to developed countries in Europe and America, convenient for meat protein export. There aremany feed manufacturers in the region, mainly European and American feed companies and local companies.Sufficient and relatively cheap raw materials ensure the cost advantage of animal breeding in the region. If feedupgrades and innovations, product supporting services, and breeding model upgrades can be achieved, thebreeding efficiency and advantages will be greatly improved, and the feed efficiency will have a large room forimprovement.The feed capacity in Africa exceeds 50 million tons, of which broiler and layer feed together account forhalf of the region's feed production. Africa is currently the region with the fastest population growth rate in theworld, and the contradiction between protein demand and supply efficiency is the most prominent: due to therapid population growth in some regions of Africa, the annual per capita supply of animal protein will evendrop slightly. Due to the urgent need to improve the efficiency of animal protein supply through feed, and thevast arable land provides a large amount of feed raw materials, the feed industry has a broad development spacein this region.
Company Operation Overview
1. Feed sales grew against the trend, and market share further increased
During the reporting period, the company achieved a feed sales volume of 26.52 million tons (includingapproximately 2.1 million tons of internal breeding consumption), a year-on-year increase of approximately 9%,and its market share further increased. Among them, in terms of varieties (including domestic and overseas), theexport sales of poultry feed was 12.65 million tons, an increase of about 12% year-on-year; the export sales ofpig feed was 5.64 million tons, a slight decrease of about 3% year-on-year; the export sales of aquatic feed was
5.85 million tons, an increase of about 11% year-on-year; and the export sales of ruminant feed and others were280,000 tons.
By region,Domestic feed export sales amounted to 22.06 million tons, a year-on-year increase ofapproximately 5%. According to the data of China Feed Industry Association, the total output of industrial feedin the country decreased by 2.1% year-on-year, and the company's market share further increased: ① Theexport sales of aquatic feed increased by 8% year-on-year, and the growth rate far exceeded that of the industry.This is due to the company's adjustment of the group's internal competition strategy in recent years, theinvestment of resources in key markets, and the vigorous support of high-quality customers and farmers. Duringthe reporting period, the general water feed increased significantly year-on-year; the shrimp and crab feedincreased significantly year-on-year, of which the litopenaeus vannamei feed increased by 16% year-on-year.
However, due to the high breeding density and abnormal weather, the crayfish farming ended prematurely andthe peak season was not prosperous, so the crayfish feed declined throughout the year; High-end extruded fishfeed (special water fish feed) is under pressure due to insufficient consumption demand, and the productioncapacity of varieties that have increased significantly in the past few years has been reduced significantly; ②The export sales of poultry feed increased by 10% year-on-year: The company actively leveraged its R&Dtechnical reserves and professional advantages to cooperate with large-scale farmers, one-stop breedingcompanies, and food companies in various ways to empower the industry and expand market share in the asset-light development model; ③ Pig feed fell by 3-4% year-on-year: The effective market space for pig feed hasshrunk due to the decline in the stock of small and medium-sized retail investors in pig breeding; the companyactively follows the changes in breeding trends, actively adjusts its customer structure, and focuses ondeveloping pig family farms and large-scale farms with breeding advantages and strong vitality, laying a solidfoundation for development in the next few years.The company is fully aware of and prepared for the difficulties, challenges and opportunities facedby the domestic aquaculture and feed industries, and the domestic feed market share will steadilyincrease.The contradiction between excess capacity and consumer demand in the aquaculture and feedindustries will bring about drastic changes. Operational excellence, product leadership, and customer orientationare the only paths for feed companies to survive and develop in the next stage.Operational excellence is thefoundation. In the feed industry, as a manufacturing industry, the low-cost advantage brought by operationalexcellence is the most basic competitive advantage; clear processes, efficient per capita efficiency, strongexecution, high capacity utilization and low four expenses can form a leading edge in the total cost of productoperation. The company has screened out a group of internal factories with high operating efficiency and goodcost control, summed up and sorted out excellent experience, and created a full range of basic competitiveadvantages.Product leadership is the key to creating differentiated advantages. There are a large number oftechnological innovation points and technological potential tapping points in the domestic aquaculture industrywith multiple varieties, multiple regions and multiple models. Since its establishment, the company has beencommitted to research and development. At present, it has a huge R&D team of nearly 4,000 people, with acumulative R&D investment of more than 5 billion yuan. The systematic R&D platform has become highlycompetitive. It will accurately target key R&D sites, tap potential innovation space, build product strength withtechnology and innovation, and establish differentiated advantages.Customer orientation is the best paradigmfor building core competitiveness. On the basis of excellent operation and leading products, we provide farmers
with overall solutions for breeding: high-quality seedlings, high-quality feed, high-quality animal protection,healthy breeding mode, and comprehensive breeding management guidance. This is the greatest value of feedenterprises and the best way to create value for farmers. At present, the company has achieved initial results inthe combination of seedlings, feed, animal protection, breeding mode, and breeding guidance of Penaeusvannamei, effectively improving the breeding efficiency of farmers and creating excess value for farmers. Atpresent, the customer-oriented paradigm will be extended to other aquatic products and livestock and poultrybreeds, expanding the advantages of the system, and increasing the utilization rate of domestic productioncapacity and market share.The export sales volume of feed in overseas regions was 2.36 million tons, a year-on-year increase ofabout 40%. Among them: ① Aquatic feed has quickly won the favor of farmers due to its excellent productstrength and strong breeding technology service system, and has established a competitive advantage in the twomajor varieties of global circulation and consumption-vannamei and tilapia, and the aquatic feed has increasedby 25-30% throughout the year; ② The poultry feed has increased by 50% throughout the year, and thecombination of poultry seedlings and feed has brought great competitive advantages; ③ The sales volume ofpig feed is definitely not large due to the influence of local consumption habits of the business.From overseas regions:
Vietnam is the region where the company entered the earliest, has been working for the longest time, andcurrently has the largest absolute volume of overseas sales. In 2024, the sales growth rate will be 25-30%.Vietnam has a long coastline, small temperature difference throughout the year, and rich water resources. It isvery suitable for aquaculture. It is currently one of the fastest growing countries in aquaculture in the world anda leading exporter of aquatic products in the world. At present, the company's sales of aquatic products inVietnam have ranked first in the local area;Indonesia is the country with the second largest absolute volume of the company's overseas feed sales,with a sales growth rate of over 40% in 2024. The local population is large, and animal protein foods are mainlychicken, eggs and aquatic products. The company entered the Indonesian market in 2017, the first plant was putinto operation in 2019, and the second plant was put into trial production in December 2024. The capacityutilization rate is in a rapid ramp-up period;Egypt is one of the most populous countries in Africa, with a huge consumption of poultry meat, and is theorigin of tilapia, with a large market space. Relying on high-quality products and efficient services, since theEgyptian Haida poultry feed plant was put into operation in January 2024, the sales volume of poultry feed has
ushered in a breakthrough growth, and its market share has jumped to the forefront of the region; the aquaticfeed plant has also been put into operation in early 2025;Ecuador has a unique marine environment and is an important breeding area for litopenaeus vannamei inthe world. The market for shrimp farming and shrimp feed is the largest in the world. As the first Chinese feedcompany in Ecuador, the company provides a series of solutions for farmers with high-quality shrimp feed andrefined farming management technical guidance. In 2024, shrimp feed in the region will increase by more than40%.
Internationalization is one of the core strategies of Haida in the future. The vast overseas marketspace provides a major opportunity for the company's development. In terms of spatial layout, the feedcapacity of the existing deployed areas and neighboring countries has been able to support the completion of theoverseas medium-term target (7.2 million tons), and the company is deploying for a longer-term and broadermarket target. In Southeast Asia, with Vietnam and Indonesia as the core, the company has been activelyexpanding into Bangladesh, Cambodia, Myanmar and other markets; in Africa, with Egypt as a bridgehead, ithas gradually extended to East and Central Africa markets, and is currently actively exploring markets inNigeria, Tanzania, Uganda, etc.; in South America, the company is based in Ecuador, and has established ateam to develop neighboring countries such as Brazil and Chile. In terms of market competition, many overseasregions are still in a single-dimensional competition of feed products themselves, and the intensity is less thanthat in China. The company's feed product strength has been honed in the fierce domestic market competition,and has formed strong professional capabilities in all aspects, so the feed product strength has strongcompetitiveness in overseas local markets; At the same time, the company is fully prepared for the changes thatwill occur in the future competition in the overseas market. It has invested resources and teams to graduallydeploy the seedling and animal protection industries overseas, match the future competition needs of customersand the market in advance, and replicate the mature domestic competition paradigm and core advantages tooverseas markets.
2. Continuous research and development of seedlings and animal protection business, and actively developnew categories
During the reporting period, the company's seedling business achieved operating income of 1.4 billionyuan. In terms of shrimp breeding, the company has 14 generations of pedigrees, and more than 2,000 familiesare maintained every year, which constitutes a germplasm resource bank with high genetic diversity. It also hasa number of specialized shrimp breeding centers, expansion and testing bases to ensure the strong
competitiveness of the company's shrimp seedling products. The company continues to adhere to and invest inthe fish fry industry, breaking through the traditional breeding model, and introducing indoor factory breeding;the company has made great breakthroughs in the breeding, breeding and breeding of tilapia varieties, and isexpected to rapidly form industrial advantages in the next few years; it has introduced new ones in traditionalvarieties such as grass carp, bream and crucian carp, and has taken the lead in realizing the large-scale single-sex seedlings in raw fish, yellow croaker and other varieties. In addition, the company has invested in theconstruction of aquatic seedling farms in Vietnam, Indonesia and other countries, starting an internationalstrategic layout.The overall operating income of the animal insurance business was about 800 million yuan. The markethas higher and higher requirements for green, environmental protection and health of aquaculture products, andthe demand for health care of aquaculture products continues to increase. The company has intensivelycultivated in the field of animal protection, relying on strong research and development capabilities, and hasachieved product innovation and upgrading according to market demand. It has successively launched variousinnovative products such as functional materials, health materials and enzyme preparations, and combinedanimal protection products and feed into one, continuously improving the ability of escorting farmers.
3. The professional ability is improved, and the downstream aquaculture develops steadilyIn the pig breeding business, the company achieved about 6 million fat pigs for slaughter throughout theyear. The company continued to focus on the capacity building of the pig breeding team and the innovation ofthe asset-light model. The team management ability and professional ability were further improved, and thecomprehensive breeding cost was significantly improved and the risk was controllable. Under the backgroundof overcapacity in the industry, the company strives to explore and implement the operation model of"outsourcing piglets, company + family farm, locking profits, and hedging risks". With the improvement of theprofessional ability of the team and the exploration and iteration of the model, the asset-light, low-risk andstable pig breeding model has become more and more clear, and the overall breeding risk is controllable and theprofit is considerable.In terms of aquaculture, the company's current main breeding species are special aquatic products such asprawns. Factory shrimp farming has the advantages of safety, controllability and stable quality compared withtraditional farming mode through factory scientific design, circulating water system, biological feed technologyand strict biological prevention and control, and can form a dislocation competition with traditional products interms of time to market and product specifications. Through refined management and professional operation in
recent years, the cost of shrimp farming has been significantly reduced. In the future, the company willappropriately expand the scale of shrimp farming on the basis of building the professional ability of the team.
4. Future Outlook
Looking forward to the future, the company has a clear strategic plan — the feed business is the first corebusiness, and it pursues core capacity building and scale expansion. The short-term goal is to reach an exportincrease of more than 3 million tons in 2025, and the medium-term goal is to reach a total sales volume of 51.5million tons in 2030, steadily increase domestic capacity utilization and market share, and further accelerate theexpansion of overseas feed business. Seedling and animal protection businesses are also core businesses and arethe foundation of intensive animal farming; both have very strong technical attributes. The company willcontinue to invest resources and efforts to occupy the commanding heights of technology and industry. Inaddition, the asset-light pig farming model and factory shrimp farming are being tried. These two farmingbusinesses must be expanded on the premise of unique competitiveness or core competitiveness, and willbecome one of the company's main businesses in the future.II. Main business of the company during the reporting period
The company's industrial chain business layout is based on providing overall solutions for animal breeding.The main products include feed, high-quality animal seedlings, animal protection, live pigs, aquatic products,etc. The business operation has covered all business links such as research and development, design, production,sales and service of various products. Specifically, the company's products include animal feeds such aschickens, ducks, geese, pigs, fish, shrimps and crabs, ruminants, live pigs, shrimps, fish and other farmedspecies, shrimp fry, fish fry and other seedling species, fresh livestock and poultry products and preparedvegetables for aquatic products, as well as biological products, veterinary drugs, vaccines and other animalprotection products required in the process of livestock and aquaculture.
1. Main business and products
(1) The three-body linkage of feed, seedlings and animal protection creates value for farmers. Feed,seedlings and animal protection are the company's core business, and its operating income accounts for morethan 80% of the company. After more than 20 years of development, the feed business has accumulated a widerange of customer resources. By providing customers with high-quality animal seedlings that are scarce in themarket, cost-effective and strong feed products, and relying on the breeding technology service system to drivethe development of animal protection products such as vaccines, veterinary drugs, and biological products, a
complete set of breeding solutions can better help customers achieve breeding success, help customers achievehealthy breeding, and control breeding costs and gain competitive advantages in end products.
(2) On the basis of specialization, the breeding business realizes a light-asset, low-risk breeding modelOn the basis of the high-quality development of feed, seedling and animal protection business, thecompany conducts model exploration in the breeding link. In terms of livestock and poultry breeding, thecompany is currently mainly engaged in pig breeding, with continuous improvement in breeding professionalcapabilities, continuous optimization of breeding costs, and controllable risks. In aquaculture, the company usesits own high-quality seedlings, feed and animal protection products to focus on the factory farming of prawnswhere the company has overall advantages. In the breeding business, the company controls the scale of breeding,builds teams, reduces costs, improves the system, and is building core competitiveness.
2. Main business model
(1) Feed, seedling and animal protection business business model Feed business is the company's corebusiness, and its operation and management mainly adopt the business model of centralized procurement of rawmaterials, distribution of production points, sales of products and technical services.① Adopting the centralizedprocurement model of "group + regional center" for bulk raw materials such as agricultural products, combinedwith hedging and other methods, can obtain better procurement advantages and risk control; ② The productionlink aims to be closest to the market, convenient logistics and rich resources, and carry out multi-pointproduction in the breeding area. At present, the factories are mainly distributed in more than 200 cities in Asia,Africa and South America; ③ The company focuses on localized marketing and fully establishes distributionchannels to efficiently solve the capital and transportation needs of farmers. At the same time, the companydirectly goes deep into farmers to provide breeding technical services by setting up technical and service teamsin breeding areas, forming sales and services, channels and functions of farmers. Complementary andsynergistic;④ High-quality animal seedlings, biological products, veterinary drugs and vaccines have becomeindispensable products and tools in the process of providing breeding technical services for the company, andconstitute a package of overall breeding solutions.
(2) Breeding business model The pig breeding business basically adopts the model of "company + familyfarm". The "company + family farm" model means that the company provides family farmers with seedlings,feed, vaccines and other necessary products for breeding. After the main technical requirements of the breedingprocess are agreed, the family farmers complete the breeding process, and the company recycles the finishedproducts for external sales. The company's aquatic product breeding and processing business is still in its
infancy. The main species of aquatic product breeding is prawns. With the company's high-quality seedlings,feed, animal protection and technical advantages, standardized and factory farming is carried out.III. Analysis of core competitivenessThe company's products and services are arranged around the needs of breeding. The core competitivenessis reflected in the ability to create value for customers. The comprehensive performance is the outstandingsingle-product product strength driven by research and development, the matching ability of high-quality seedand seedling animal protection, and the breeding technical service ability directly to the terminal to build theoutput capacity of the overall breeding solution.
1. R&D-driven clear and excellent feed product strength is the company's most importantcompetitive advantageThe company conducts research on basic, forward-looking and key common issues in the seven R&Ddirections of "animal genetics and breeding, animal nutrition and feed, veterinary medicine andbiopharmaceuticals, microbial engineering, biochemical engineering, protein engineering, and healthybreeding", and continuously improves the three-level R&D system to comprehensively and effectively support,drive and serve the needs of the rapid development of the group. The company has a relatively rich technicalresearch reserve and a huge R&D team. It invests a lot of money in R&D every year. R&D personnel includeanimal nutrition, veterinary medicine, breeding and breeding, breeding mode, bioengineering, biochemistry,machinery and other multi-disciplinary talents. The transformation of R&D results is fast, and the investmentsupporting strategy can be clearly and quickly implemented. For example, for feed formulation technology,through more than 20 years of continuous research and development, the company has established a hugeanimal nutrition demand database and reserves a variety of raw material formulation technologies. Every year,thousands of sets of comparative experimental results are added to the animal core nutrition demand and rawmaterial utilization database to transform the technology into productivity. Therefore, the company has a strongability to continuously optimize product formulas, and can quickly adjust formulas when raw material pricesfluctuate to gain a cost competitive advantage. At the same time, the optimization and upgrading of productsdriven by scientific and technological research and development can not only adapt to changes in the breedingenvironment and changes in breeding models, but also lead the progress of breeding technology and theupgrading of breeding models.
On the basis of a strong R&D system and continuous technological innovation, the company's variousseries of products are committed to creating product capabilities that are significantly ahead of competitors.While high-end products are priced at high prices, they all have obvious advantages in the ultimate pursuit ofanimal survival rate, growth effect and growth efficiency, and their brand effect is outstanding; mid-endproducts are priced close to competitors' products on the basis of ensuring leading production efficiency, andpursue outstanding product cost-effectiveness. Therefore, when the overall breeding efficiency of the industry isgood, the company's customers can obtain significantly higher income than similar farmers; and when theindustry's breeding efficiency declines or even the whole industry loses money, the company's customers canlose less or even no loss.
2. High-quality seedling animal protection solves the pain points of farmers
In the breeding industry chain, seedlings are the "core chips", the link with the highest technical thresholdand the greatest potential for value mining. The company has the world's leading technological advantages,resource reserves and industrialization scale in the field of aquatic breeding. It is the first to build an integratedcommercial breeding system for breeding, reproduction and promotion in the industry. It is listed in the firstbatch of 20 "China Aquatic Seed Industry Integrated Advantage Enterprises" and was selected as a nationalseed industry formation enterprise. The company has technologically advanced shrimp fry and freshwater frybreeding technology, and has cultivated a number of new varieties with fast production speed and strong diseaseresistance and stress resistance. There are 9 new national aquatic products: Litopenaeus vannamei "HaixingnongNo. 2", Litopenaeus vannamei "Haixingnong No. 3", Litopenaeus vannamei "Haijingzhou No. 1", Tilapia"Bairong No. 1", Hybrid Channa "Xiongbi No. 1", Tuantou "Huahai No. 1", Changzhu Hybrid mandarin catfish,hybrid yellow croaker "Baixiong No. 1", and grass carp "Husu No. 1".
The company's animal protection vaccine is guided by distinctive technology and research anddevelopment, and is empowered by a complete service system and mature breeding plan. It has strong marketcompetitiveness and excellent market reputation, and solves breeding pain points for farmers all over thecountry. High-quality aquatic animal protection and livestock and poultry animal protection products can helpfarmers improve the breeding environment, prevent and control diseases of farmed animals, reduce diseaselosses, realize healthy, safe and controllable breeding process, reduce breeding costs, and improve breedingefficiency.
3. The breeding technology service system is an important starting point for the company to createvalue for customers, continuously acquire new customers and improve customer stickiness
In 2006, the company took the lead in the industry to propose to provide comprehensive technical servicesto farmers, and positioned the company as a service-oriented enterprise that provides farmers with overallbreeding solutions. The company provides farmers with product and technical service support for the entirebreeding process such as "seedling-stocking mode-environmental control-disease control-feed-marketinformation" to ensure that farmers can use the most advanced breeding technology, thereby ensuring thesuccess and profitability of farmers. The company has the most experienced and passionate technical serviceteam in the industry; it has accumulated a variety of advanced breeding models based on local characteristics; ithas hundreds of efficient service stations in the national breeding intensive areas, which can provide tens ofthousands of farmers at the same time. Provide technical services. The company's relatively complete servicesystem in the industry can give full play to the advantages of product strength and provide full-process technicalservices for breeding, which can effectively amplify customer benefits and increase customer stickiness.The company's breeding technology service started from aquaculture service. After more than ten years oftalent team construction and platform construction, the process and concept of the breeding technology servicesystem have penetrated into all aspects of product, technology, research and development, market and operation,driving the company's aquatic feed and animal protection business development to highlight the effect, and theprocess and idea have been gradually promoted to pig breeding and have achieved obvious results.Comprehensive breeding technical services have become an important brand label of the company, and it is animportant starting point for the company to create value for customers, acquire customers and improve customerstickiness.IV. Main business analysis
1. Overview
See "I. The industry in which the company operates during the reporting period".
2. Revenue and Cost
(1) Composition of operating income
Unit: Yuan
| 2024 | 2023 | Year-on-year increase or decrease | |||
| Amount | Proportion of operating income | Amount | Proportion of operating income | ||
| Total operating | 114,601,056,662.29 | 100% | 116,117,168,742.97 | 100% | -1.31% |
| income | |||||
| By industry | |||||
| Feed industry | 95,774,577,643.37 | 83.57% | 100,625,094,888.81 | 86.66% | -4.82% |
| Breeding industry | 18,826,479,018.92 | 16.43% | 15,492,073,854.16 | 13.34% | 21.52% |
| Sub-product | |||||
| Feed | 91,202,471,546.02 | 79.58% | 95,956,237,795.73 | 82.64% | -4.95% |
| Animal protection products | 845,785,008.00 | 0.74% | 1,094,616,254.63 | 0.94% | -22.73% |
| Agricultural products | 18,826,479,018.92 | 16.43% | 15,492,073,854.16 | 13.34% | 21.52% |
| Trading business | 3,435,411,501.16 | 3.00% | 3,400,500,883.54 | 2.93% | 1.03% |
| Other business | 290,909,588.19 | 0.25% | 173,739,954.91 | 0.15% | 67.44% |
| By regions | |||||
| South China | 67,393,687,661.28 | 58.81% | 69,265,386,101.27 | 59.65% | -2.70% |
| East China | 16,343,599,813.21 | 14.26% | 16,173,847,857.34 | 13.93% | 1.05% |
| North China | 27,435,014,704.38 | 23.94% | 32,361,476,949.29 | 27.87% | -15.22% |
| Central China | 30,865,136,138.53 | 26.93% | 32,394,634,731.85 | 27.90% | -4.72% |
| Overseas area | 14,339,378,668.54 | 12.51% | 10,935,313,584.80 | 9.42% | 31.13% |
| Combined offset | -41,775,760,323.65 | -36.45% | -45,013,490,481.58 | -38.77% | -7.19% |
(2) The situation of industries, products, regions and sales models that account for more than 10% of the company'soperating income or operating profit
?Applicable □ Not applicable
Unit: Yuan
| Operating income | Operating cost | Gross margin | Increase or decrease in operating income over the same period of the previous year | Operating costs increased or decreased compared to the same period last year | Gross profit margin increased or decreased compared with the same period last year | |
| By industry | ||||||
| Feed industry | 95,774,577,643.37 | 86,254,955,507.06 | 9.94% | -4.82% | -5.99% | 1.12% |
| Breeding industry | 18,826,479,018.92 | 15,384,621,981.11 | 18.28% | 21.52% | 5.91% | 12.05% |
| Sub-product | ||||||
| Feed | 91,202,471,546.02 | 82,315,983,104.74 | 9.74% | -4.95% | -6.22% | 1.21% |
| Animal protection products | 845,785,008.00 | 368,047,297.51 | 56.48% | -22.73% | -33.39% | 6.96% |
| Agricultural products | 18,826,479,018.92 | 15,384,621,981.11 | 18.28% | 21.52% | 5.91% | 12.05% |
| Trading business | 3,435,411,501.16 | 3,413,103,070.42 | 0.65% | 1.03% | 0.85% | 0.18% |
| By regions | ||||||
| South China | 67,393,687,661.28 | 60,465,150,039.27 | 10.28% | -2.70% | -6.89% | 4.04% |
| East China | 16,343,599,813.21 | 15,343,642,240.56 | 6.12% | 1.05% | 0.18% | 0.81% |
| North China | 27,435,014,704.38 | 26,087,969,176.03 | 4.91% | -15.22% | -16.79% | 1.79% |
| Central China | 30,865,136,138.53 | 28,851,852,669.77 | 6.52% | -4.72% | -8.00% | 3.33% |
| Overseas area | 14,339,378,668.54 | 12,420,785,985.76 | 13.38% | 31.13% | 28.56% | 1.73% |
If the statistical caliber of the company's main business data is adjusted during the reporting period, thecompany's main business data adjusted according to the caliber at the end of the reporting period in the mostrecent year
□Applicable ? Not applicable
(3) Whether the company's physical sales income is greater than the labor income? Yes □ No
| Industry classification | Projects | Unit | 2024 | 2023 | Year-on-year increase or decrease |
| Feed industry | Sales volume | 10,000 tons | 2,652.42 | 2,440.23 | 8.70% |
| Production volume | 10,000 tons | 2,656.50 | 2,427.65 | 9.43% | |
| Inventory | 10,000 tons | 30.20 | 26.12 | 15.62% |
Explanation of the reasons why the relevant data has changed by more than 30% year-on-year
□Applicable ? Not applicable
(4) The performance of major sales contracts and major procurement contracts signed by the company asof the reporting period
□Applicable ? Not applicable
(5) Composition of operating costs
Industry and Product Classification
Unit: Yuan
| Industry classification | Projects | 2024 | 2023 | Year-on-year increase or decrease | ||
| Amount | Proportion of operating cost | Amount | Proportion of operating cost | |||
| Feed industry | Material cost | 82,300,277,709.15 | 95.41% | 88,202,446,185.50 | 96.13% | -6.69% |
| Feed industry | Labor cost | 1,059,264,120.40 | 1.23% | 989,977,644.07 | 1.08% | 7.00% |
| Feed industry | Manufacturing expenses | 2,532,650,682.13 | 2.94% | 2,339,254,579.25 | 2.55% | 8.27% |
| Feed industry | Contract performance cost | 204,940,960.99 | 0.24% | 180,835,593.31 | 0.20% | 13.33% |
| Feed industry | other | 157,822,034.39 | 0.18% | 41,892,300.32 | 0.04% | 276.73% |
| Total feed industry | 86,254,955,507.06 | 100.00% | 91,754,406,302.45 | 100.00% | -5.99% | |
| Breeding industry | Material cost | 12,710,121,419.04 | 82.62% | 12,396,546,681.62 | 85.34% | 2.53% |
| Breeding industry | Labor cost | 1,781,888,643.36 | 11.58% | 1,366,507,811.60 | 9.41% | 30.40% |
| Breeding industry | Manufacturing expenses | 856,521,390.67 | 5.57% | 732,405,482.14 | 5.04% | 16.95% |
| Breeding industry | Contract performance cost | 36,090,528.04 | 0.23% | 30,752,187.87 | 0.21% | 17.36% |
| Total breeding industry | 15,384,621,981.11 | 100.00% | 14,526,212,163.23 | 100.00% | 5.91% | |
Unit: Yuan
| Product categories | Projects | 2024 | 2023 | Year-on-year increase or decrease | ||
| Amount | Proportion of operating cost | Amount | Proportion of operating cost | |||
| Feed | Material cost | 78,583,692,155.91 | 95.47% | 84,349,916,329.38 | 96.10% | -6.84% |
| Feed | Labor cost | 1,040,158,185.91 | 1.26% | 961,282,644.51 | 1.10% | 8.21% |
| Feed | Manufacturing expenses | 2,502,195,525.44 | 3.04% | 2,303,531,792.17 | 2.62% | 8.62% |
| Feed | Contract performance cost | 189,937,237.48 | 0.23% | 160,791,559.67 | 0.18% | 18.13% |
| Total feed | 82,315,983,104.74 | 100.00% | 87,775,522,325.73 | 100.00% | -6.22% | |
| Animal protection products | Material cost | 303,482,482.82 | 82.46% | 468,093,146.63 | 84.71% | -35.17% |
| Animal protection products | Labor cost | 19,105,934.49 | 5.19% | 28,694,999.56 | 5.19% | -33.42% |
| Animal protection products | Manufacturing expenses | 30,455,156.69 | 8.27% | 35,722,787.08 | 6.47% | -14.75% |
| Animal protection | Contract performance | 15,003,723.51 | 4.08% | 20,044,033.64 | 3.63% | -25.15% |
| products | cost | |||||
| Total animal insurance products | 368,047,297.51 | 100.00% | 552,554,966.91 | 100.00% | -33.39% | |
| Agricultural products | Material cost | 12,710,121,419.04 | 82.62% | 12,396,546,681.62 | 85.34% | 2.53% |
| Agricultural products | Labor cost | 1,781,888,643.36 | 11.58% | 1,366,507,811.60 | 9.41% | 30.40% |
| Agricultural products | Manufacturing expenses | 856,521,390.67 | 5.57% | 732,405,482.14 | 5.04% | 16.95% |
| Agricultural products | Contract performance cost | 36,090,528.04 | 0.23% | 30,752,187.87 | 0.21% | 17.36% |
| Total agricultural products | 15,384,621,981.11 | 100.00% | 14,526,212,163.23 | 100.00% | 5.91% | |
| Trade industry | Cost of sales | 3,413,103,070.42 | 100.00% | 3,384,436,709.49 | 100.00% | 0.85% |
| other | Cost of sales | 157,822,034.39 | 100.00% | 41,892,300.32 | 100.00% | 276.73% |
DescriptionNo.
(6) Whether the scope of consolidation has changed during the reporting period? Yes □ NoThe company included 574 subsidiaries in the consolidated financial statements this year, an increase of 45 anda decrease of 28 over the previous year. For details, please refer to Note VII in Section X "Financial Reports".Interests in other entities.
(7) Significant changes or adjustments in the company's business, products or services during thereporting period
□Applicable ? Not applicable
(8) Major sales customers and major suppliers
The company's main sales customers
| The total sales amount of the top five customers (yuan) | 2,670,199,505.48 |
| The proportion of the total sales amount of the top five customers to the total annual sales | 2.33% |
| The proportion of related party sales in the top five customer sales to the total annual sales | 0.00% |
The company's top 5 customers
| Serial number | Customer name | Sales (yuan) | % of total annual sales |
| 1 | First place | 788,720,383.87 | 0.69% |
| 2 | Second place | 700,257,717.22 | 0.61% |
| 3 | Third place | 464,271,569.00 | 0.41% |
| 4 | Fourth place | 409,424,334.64 | 0.36% |
| 5 | Fifth place | 307,525,500.75 | 0.27% |
| Total | -- | 2,670,199,505.48 | 2.33% |
Other descriptions of major customers
□Applicable ? Not applicable
The company's main suppliers
| The total purchase amount of the top five suppliers (yuan) | 13,479,427,870.81 |
| The proportion of the total purchase amount of the top five suppliers to the total annual purchase amount | 12.45% |
| The proportion of related party purchases in the total annual purchases of the top five suppliers | 0.00% |
The company's top 5 suppliers
| Serial number | Supplier name | Purchase amount (yuan) | Percentage of total annual purchases |
| 1 | First place | 5,251,698,311.87 | 4.85% |
| 2 | Second place | 2,714,696,337.16 | 2.51% |
| 3 | Third place | 2,316,527,695.90 | 2.14% |
| 4 | Fourth place | 1,634,952,899.14 | 1.51% |
| 5 | Fifth place | 1,561,552,626.74 | 1.44% |
| Total | -- | 13,479,427,870.81 | 12.45% |
Other descriptions of major suppliers
□Applicable ? Not applicable
3. Fees
Unit: Yuan
| 2024 | 2023 | Year-on-year increase or decrease | Description of major changes | |
| Selling expense | 2,608,350,800.44 | 2,259,143,012.20 | 15.46% | A year-on-year increase of 15.46% was mainly due to the expansion of the company's sales volume, the increase in sales and service personnel, the increase in salary levels and the increase in business promotion expenses. |
| Administration expense | 3,187,514,888.49 | 2,616,739,147.40 | 21.81% | A year-on-year increase of 21.81% was mainly due to the increase in salary levels and the increase in office expenses over the same period. |
| Finance | 369,711,343.72 | 512,506,390.25 | -27.86% | A year-on-year decrease of 27.86% was mainly due to the decrease in financing scale and the decrease in |
| expense | financing costs. | |||
| R&D expenses | 860,035,315.34 | 784,880,414.03 | 9.58% | The slight year-on-year increase was mainly due to the increase in the company's R&D personnel, the increase in salary levels and the increase in R&D investment. |
4. R&D investment
?Applicable □ Not applicable
| Main R&D project name | Project purpose | Project progress | Goals to be achieved | Expected impact on the company's future development |
| Construction and maintenance of precision nutrition database for various aquatic products | Precision Nutrition | Determine the precise nutritional requirements of multiple aquatic products in various breeding modes, different growth stages, different breeding stages and different breeding environments. | Nutrition is more precise, feed cost is saved, feed waste is avoided, the environment is protected, feed digestion and absorption are more complete, and growth performance is greatly improved. | The cost of feed has been significantly reduced, the cost of breeding by farmers has been significantly reduced, and the growth performance of aquatic products has been higher, which has promoted the green development of the breeding industry. |
| Establishment of disease-resistant nutrition system for livestock and poultry | Development of functional feed and functional additives | Immune enhancers have been developed to improve the resistance of pigs and poultry to bacterial and viral diseases. | In view of common diseases of livestock and poultry, immune enhancers can significantly improve disease resistance and provide a strong guarantee for the healthy and efficient production of livestock and poultry breeding. | Focusing on the core concept of creating value for customers, we will improve the efficiency of breeding and enhance the product strength. |
| Constructing an integrated shrimp and fish fry breeding system | Provide high-quality, stable shrimp and fish fry | It has been rated as a new aquatic product variety in many countries, and continues to promote the genetic breeding research of other varieties | Complete the systematic work of seed industry selection and breeding, germplasm resource protection, germplasm family establishment, etc | Relying on the whole industry chain of aquaculture, taking advantage of the three-body linkage of "feed + seedlings + animal protection" to promote the green and high-quality development of aquaculture |
| Establishment of nutritional system for teaching trough material and nursery material | Precision Nutrition | The nutritional value evaluation, nutritional requirements, feeding mode, feed processing and other aspects of different raw materials have been completed, and the effect has been verified in the breeding terminal | Choose raw materials that are easy to digest and absorb nutrients, which are more in line with the pulverization and relaxation of the gastrointestinal tract of piglets, and all-round balanced nutrition, which makes piglets healthier and has a higher survival rate; better intestinal development, less diarrhea; better feed palatability, | Create the quality of teaching materials and create industry benchmarks. |
| Main R&D project name | Project purpose | Project progress | Goals to be achieved | Expected impact on the company's future development |
| better nutrient absorption, better balance, and faster growth. |
Company R&D personnel
| 2024 | 2023 | Change ratio | |
| Number of R&D personnel (person) | 3,860 | 3,525 | 9.50% |
| The proportion of R&D personnel | 9.23% | 9.08% | 0.15% |
| Educational structure of R&D personnel | |||
| Undergraduate | 1,012 | 885 | 14.35% |
| Master | 922 | 800 | 15.25% |
| Phd | 137 | 115 | 19.13% |
| Age composition of R&D personnel | |||
| Under 30 years old | 2,057 | 1,915 | 7.42% |
| 30~40 years old | 1,206 | 1,099 | 9.74% |
| 40~50 years old | 391 | 331 | 18.13% |
| Above 50 years old | 206 | 180 | 14.44% |
The company's R&D investment
| 2024 | 2023 | Change ratio | |
| R&D investment amount (yuan) | 911,811,476.92 | 803,082,298.63 | 13.54% |
| R&D investment as a percentage of operating income | 0.80% | 0.69% | 0.11% |
| Amount of capitalized R&D investment (yuan) | 51,776,161.58 | 18,201,884.60 | 184.45% |
| Capitalized R&D investment as a percentage of R&D investment | 5.68% | 2.27% | 3.41% |
The reasons and impacts of major changes in the composition of the company's R&D personnel
□Applicable ? Not applicable
Reasons for the significant change in the proportion of total R&D investment in operating income comparedwith the previous year
□Applicable ? Not applicable
Reasons for the substantial change in the capitalization rate of R&D investment and its rationality
□Applicable ? Not applicable
5. Cash flow
Unit: Yuan
| Projects | 2024 | 2023 | Year-on-year increase or decrease |
| Subtotal of cash inflow from operating activities | 117,807,433,617.72 | 119,076,079,621.32 | -1.07% |
| Subtotal of cash outflows from operating activities | 109,811,178,242.67 | 106,377,704,921.78 | 3.23% |
| Net cash flow from operating activities | 7,996,255,375.05 | 12,698,374,699.54 | -37.03% |
| Subtotal of cash inflows from investing activities | 17,400,060,753.23 | 5,655,779,524.28 | 207.65% |
| Subtotal of cash outflows from investing activities | 23,805,566,731.01 | 9,475,754,280.35 | 151.23% |
| Net cash flows from investing activities | -6,405,505,977.78 | -3,819,974,756.07 | -67.68% |
| Subtotal of cash inflows from financing activities | 7,750,505,656.53 | 10,363,673,588.82 | -25.21% |
| Subtotal of cash outflows from financing activities | 11,360,973,044.88 | 16,016,845,242.92 | -29.07% |
| Net cash flow from financing activities | -3,610,467,388.35 | -5,653,171,654.10 | 36.13% |
| Cash and cash equivalents | -2,040,303,927.96 | 3,245,099,423.10 | -162.87% |
Description of the main influencing factors for the significant year-on-year changes in relevant data?Applicable □ Not applicable
1. The net cash flow from operating activities decreased by 37.03% compared with the same period of theprevious year, mainly due to the increase in the company's inventory at the end of the period, the maturity ofbills payable, and the increase in cash paid for labor services.
2. The net cash flow from investing activities decreased by 67.68% in the same period of last year, mainly dueto the increase in the scale of the company's use of idle self-owned funds for wealth management.
3. The net cash flow from financing activities increased by 36.13% in the same period of last year, mainly dueto the decrease of the company's repayment of loans in the current period.Explanation of the reasons for the significant difference between the net cash flow generated by the company'soperating activities during the reporting period and the net profit of the current year
□Applicable ? Not applicable
V. Analysis of non-main business
□Applicable ? Not applicable
VI. Analysis of Assets and Liabilities
1. Significant changes in asset composition
Unit: Yuan
| End of 2024 | Early 2024 | Proportion increase or decrease | Description of major changes | |||
| Amount | % of total assets | Amount | % of total assets | |||
| Monetary fund | 3,478,256,875.63 | 7.23% | 5,476,452,778.79 | 12.24% | -5.01% | The proportion of total assets at the end of the period decreased by 5.01 percentage points, and the amount at the end of the period decreased by 36.49% compared with the beginning of the period, mainly due to the increase in the company's idle funds and wealth management and the increase in raw material stocking. |
| Accounts Receivable | 2,125,872,345.43 | 4.42% | 2,056,713,658.36 | 4.60% | -0.18% | The proportion of total assets at the end of the period decreased by 0.18 percentage points, and the amount at the end of the period was basically the same as that at the beginning of the period. |
| Contract assets | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | Not applicable |
| Inventory | 11,290,384,103.30 | 23.45% | 9,935,863,743.13 | 22.20% | 1.25% | The proportion of total assets at the end of the period increased by 1.25 percentage points, and the amount at the end of the period increased by 13.63% compared with the beginning of the period, mainly due to the increase in the company's raw material stocking and the increase in inventory consumable biological assets. |
| Investment real estate | 92,624,790.99 | 0.19% | 29,823,321.44 | 0.07% | 0.12% | The proportion of total assets at the end of the period increased by 0.12 percentage points, and the amount at the end of the period increased by 210.58% compared with the beginning of the period, mainly due to the newly added land to be sold and the external lease of a small number of self-use buildings. |
| Long‐term equity | 280,217,892.86 | 0.58% | 216,673,525.00 | 0.48% | 0.10% | The proportion of total assets at the end of the period |
| End of 2024 | Early 2024 | Proportion increase or decrease | Description of major changes | |||
| Amount | % of total assets | Amount | % of total assets | |||
| investment | increased by 0.1%, and the amount at the end of the period increased by 29.33% compared with the beginning of the period, mainly due to the company's increased investment in associates. | |||||
| Fixed assets | 16,930,687,726.99 | 35.17% | 16,393,917,170.28 | 36.64% | -1.47% | The proportion of total assets at the end of the period decreased by 1.47 percentage points, and the amount at the end of the period increased by 3.27% compared with the beginning of the period, mainly due to the completion and commissioning of projects under construction and the new purchase of fixed assets. |
| Construction in progress | 426,719,987.46 | 0.89% | 687,708,201.87 | 1.54% | -0.65% | The proportion of total assets at the end of the period decreased by 0.65 percentage points, and the amount at the end of the period decreased by 37.95% compared with the beginning of the period, mainly due to the transfer of projects under construction to fixed assets after completion and commissioning. |
| Right-of-use asset | 2,769,825,756.21 | 5.75% | 2,360,221,694.26 | 5.27% | 0.48% | The proportion of total assets at the end of the period increased by 0.48 percentage points, and the amount at the end of the period increased by 17.35% compared with the beginning of the period, mainly due to the expansion of the company's business scale and the addition of leasing business. |
| Short-term loan | 251,739,887.29 | 0.52% | 1,396,136,213.00 | 3.12% | -2.60% | The proportion of total assets at the end of the period decreased by 2.6 percentage points, and the amount at the end of the period decreased by 81.97% from the beginning of the period, mainly due to the decrease in short-term bank loans and the increase in repayment of loans. |
| End of 2024 | Early 2024 | Proportion increase or decrease | Description of major changes | |||
| Amount | % of total assets | Amount | % of total assets | |||
| Contract liabilities | 2,251,063,282.58 | 4.68% | 1,922,213,731.37 | 4.30% | 0.38% | The proportion of total assets at the end of the period increased by 0.38 percentage points, and the amount at the end of the period increased by 17.11% compared with the beginning of the period, mainly due to the expansion of the company's business sales and the increase in advance receipts. |
| Long-term loan | 1,769,821,334.89 | 3.68% | 3,027,758,789.71 | 6.77% | -3.09% | The proportion of total assets at the end of the period decreased by 3.09 percentage points, and the amount at the end of the period decreased by 41.55% compared with the beginning of the period, mainly due to the early repayment of some long-term loans. |
| Lease liabilities | 2,015,568,878.94 | 4.19% | 1,619,548,546.37 | 3.62% | 0.57% | The proportion of total assets at the end of the period increased by 0.57 percentage points, and the amount at the end of the period increased by 24.45% compared with the beginning of the period, mainly due to the expansion of the company's business scale and the addition of leasing business. |
| Trading financial assets | 4,662,427,829.82 | 9.69% | 1,286,752,498.95 | 2.88% | 6.81% | The proportion of total assets at the end of the period increased by 6.81 percentage points, and the amount at the end of the period increased by 262.34% compared with the beginning of the period, mainly due to the increase in the company's idle funds and wealth management. |
| Advance payment | 628,293,443.54 | 1.31% | 743,154,926.15 | 1.66% | -0.35% | The proportion of total assets at the end of the period decreased by 0.35 percentage points, and the amount at the end of the period decreased by 15.46% compared with the beginning of the period, mainly due to the decrease in the company's prepayments for raw materials. |
| End of 2024 | Early 2024 | Proportion increase or decrease | Description of major changes | |||
| Amount | % of total assets | Amount | % of total assets | |||
| Notes payable | 4,995,201,488.07 | 10.38% | 5,897,614,880.98 | 13.18% | -2.80% | The proportion of total assets at the end of the period decreased by 2.8 percentage points, and the amount at the end of the period decreased by 15.3% compared with the beginning of the period, mainly due to the decrease in the maturity and redemption balance of bills payable. |
| Account payables | 5,483,061,495.95 | 11.39% | 4,743,294,500.05 | 10.60% | 0.79% | The proportion of total assets at the end of the period increased by 0.79 percentage points, and the amount at the end of the period increased by 15.60% compared with the beginning of the period, mainly due to the increase in inventory at the end of the period and the increase in payables. |
Overseas assets account for a relatively high proportion
□Applicable ? Not applicable
2. Assets and liabilities measured at fair value
?Applicable □ Not applicable
Unit: ten thousand yuan
| Projects | Beginning of the period | Gains and losses from changes in fair value for the current period | Changes in cumulative fair value included in equity | Impairment accrued in the current period | Purchase amount in the current period | Amount sold in the current period | Other changes | Ending number |
| Financial assets | ||||||||
| 1. Transactional financial assets (excluding derivative financial assets) | 27,001.46 | 8,219.00 | 24,179.12 | 37.25 | 35,805.96 | |||
| 5. Other non-current financial | 24,868.36 | -759.04 | 271.47 | 23,838.06 | ||||
| assets | ||||||||
| Subtotal of financial assets | 51,869.82 | 7,459.96 | 24,179.12 | 37.25 | 271.47 | 59,644.02 | ||
| Other [Note] | 101,673.79 | 783.78 | 1,424,450.00 | 1,100,348.22 | 430,436.82 | |||
| Total of the above | 153,543.61 | 8,243.74 | 24,179.12 | 1,424,487.25 | 1,100,619.69 | 490,080.84 | ||
| Financial liabilities | 2,220.38 | -5,715.15 | 7,739.03 |
Note: Others are bank wealth management products.Other changesNo.Whether there was any significant change in the measurement attributes of the company's main assets during thereporting period
□ Yes ? No
3. Restricted asset rights as of the end of the reporting period
As of the end of the reporting period, the company still had restricted assets of RMB 150,778,414.73, mainlyincluding land reclamation deposit, guarantee deposit, bank guarantee, etc.VII. Analysis of investment status
1. Overall situation
?Applicable □ Not applicable
| Investment in the reporting period (yuan) | Investment in the same period last year (yuan) | Range of change |
| 3,136,747,295.93 | 3,353,272,322.86 | -6.46% |
2. Significant equity investments obtained during the reporting period
□Applicable ? Not applicable
3. Major non-equity investments in progress during the reporting period
□Applicable ? Not applicable
4. Financial asset investment
(1) Securities investment
?Applicable □ Not applicable
Unit: Yuan
| Types of securities | Securities Code | Abbreviation of securities | Initial investment cost | Accounting measurement model | Book value at the beginning of the period | Gains and losses from changes in fair value for the current period | Changes in cumulative fair value included in equity | Purchase amount in the current period | Amount sold in the current period | Profit and loss for the reporting period | Book value at the end of the period | Accounting subjects | Source of funds |
| Domestic and overseas stocks | 603363.SH | *ST Aonong | 372,528.52 | Fair value measurement | 0 | -10,234.30 | 0.00 | 372,528.52 | 0.00 | -10,234.30 | 362,294.22 | Trading financial assets | Income from debt repayment |
| Other securities investments held at the end of the period | 0.00 | -- | 0 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -- | -- | ||
| Total | 372,528.52 | -- | 0 | -10,234.30 | 0.00 | 372,528.52 | 0.00 | -10,234.30 | 362,294.22 | -- | -- | ||
| Disclosure date of the announcement of the board of directors of securities investment approval | Not applicable | ||||||||||||
Note: According to the "Reorganization Plan of Fujian Aonong Biological Technology Group Incorporation Ltd." approved by the court, the company has transferredthe shares of Aonong Biological Technology Group (603363.SH) to offset the company's receivables.
(2) Derivatives investment
?Applicable □ Not applicable
1) Derivative investments for hedging purposes during the reporting period?Applicable □ Not applicable
Unit: ten thousand yuan
| Derivatives investment type | Initial investment amount | Amount at the beginning of the period | Gains and losses from changes in fair value for the current period | Changes in cumulative fair value included in equity | Amount purchased during the reporting period | Amount sold during the reporting period | Amount at the end of the period | The proportion of the investment amount at the end of the period to the company's net assets at the end of the reporting period |
| Futures company | 0.00 | 57,967.83 | 2,457.04 | 28,356.70 | 628,636.29 | 610,430.85 | 59,768.13 | 2.50% |
| Commercial Bank | 0.00 | -177.51 | -353.35 | 0.00% | ||||
| Total | 0.00 | 57,967.83 | 2,279.53 | 28,003.35 | 628,636.29 | 610,430.85 | 59,768.13 | 2.50% |
| The accounting policies and specific principles of accounting for hedging business during the reporting period, and an explanation of whether there have been significant changes compared with the previous reporting period | According to the relevant provisions of the Ministry of Finance's "Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 — Transfer of Financial Assets", "Accounting Standards for Business Enterprises No. 24 — Hedging Accounting", "Accounting Standards for Business Enterprises No. 37 — Presentation of Financial Instruments" and their guidelines, the company conducts corresponding accounting and processing for the hedging business it conducts. The accounting policies and accounting calculations of the company's hedging business during the reporting period did not change significantly compared with the previous reporting period. | |||||||
| Explanation of actual profit and loss during the reporting period | In order to avoid the fluctuation of the market price of raw materials such as corn and meal and the fluctuation risk of expected future cash flow caused by the expected sales of live pigs, the company has carried out commodity futures hedging business; in order to avoid the operating risks brought by foreign exchange rate fluctuations to the company, it has carried out foreign exchange hedging business. During the reporting period, the total actual profit and loss after offsetting the profit and loss of the company's commodity and foreign exchange hedging derivatives contract and the spot was 61,093,000 yuan. | |||||||
| Description of hedging effect | The commodity futures hedging futures that the company engages in are mainly corn, meal, live pig products and other raw materials and commodities related to production and operation. Through the change of the value of hedging instruments, the risk of changes in the value of the hedged item is effectively hedged, and the expected risk management goal is basically achieved. The company's foreign exchange hedging business means that the company's overseas bank loan financing business and overseas procurement business face the risk of exchange rate fluctuations. By carrying out forward foreign exchange settlement and | |||||||
| Derivatives investment type | Initial investment amount | Amount at the beginning of the period | Gains and losses from changes in fair value for the current period | Changes in cumulative fair value included in equity | Amount purchased during the reporting period | Amount sold during the reporting period | Amount at the end of the period | The proportion of the investment amount at the end of the period to the company's net assets at the end of the reporting period |
| sales and currency swaps, the company locks in exchange rate costs and effectively hedges uncertain risks arising from exchange rate fluctuations. | ||||||||
| Sources of Funds for Derivatives Investment | Own funds | |||||||
| Risk analysis of derivative positions during the reporting period and description of control measures (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | 1. Match the hedging business with the company's production and operation, strictly control the positions of futures and options, conduct foreign exchange hedging transactions in strict accordance with the company's predicted foreign exchange collection period, foreign exchange payment period and amount, and reasonably use futures, options, the above product portfolio, foreign exchange hedging and other tools to lock the company's feed raw materials and other related product costs and expenses. 2. Strictly control the capital scale of hedging, rationally plan and use margin, issue operation instructions in strict accordance with the company's futures trading management system, and conduct operations after approval according to regulations. The company will rationally allocate funds for hedging business. 3. According to the "Guidelines for Self-Regulatory Supervision of Listed Companies on the Shenzhen Stock Exchange No. 1 — Standardized Operation of Listed Companies on the Main Board", systems such as the "Futures Hedging Business Management System", "Futures Management Measures" and "Live Pig Futures Business Operation Management Measures" have been formulated, which clearly stipulates the approval authority, internal review process and risk handling procedures for hedging business. The company has established a dedicated commodity hedging operation team, a commodity hedging business operation monitoring team and corresponding business processes, which are controlled by the implementation of authorization and post containment, as well as internal auditing and other measures. 4. The company has formulated the "Foreign Exchange Hedging Business Management System", which clearly stipulates the company's foreign exchange hedging business quota, product range, approval authority, internal review process, responsible department and responsible person, information isolation measures, internal risk reporting system and risk handling procedures, etc. The system meets the relevant requirements of the regulatory authorities and meets the needs of actual operations, and the risk control measures formulated are effective. 5. The company's risk control department regularly and irregularly inspects the hedging transaction business, supervises the hedging transaction business personnel to implement risk management policies and risk management work procedures, and timely prevents operational risks in the business. | |||||||
| In the case of changes in the market price or the fair value of the product during the reporting period of the invested derivatives, the analysis of the fair value of the derivatives shall disclose the specific methods used and the setting of relevant assumptions and parameters | The company's commodity hedging transactions are traded on the futures exchange, with great market transparency and very active transactions. The transaction price and the settlement unit price of the day can fully reflect the fair value of the derivatives; the foreign exchange hedging transactions are measured at the fair value of the date when the contract between the company and the commercial bank is signed, and their fair value is subsequently measured based on the closing valuation notice of each commercial bank. | |||||||
| Litigation-related | Not applicable | |||||||
| Derivatives investment type | Initial investment amount | Amount at the beginning of the period | Gains and losses from changes in fair value for the current period | Changes in cumulative fair value included in equity | Amount purchased during the reporting period | Amount sold during the reporting period | Amount at the end of the period | The proportion of the investment amount at the end of the period to the company's net assets at the end of the reporting period |
| circumstances (if applicable) | ||||||||
| Derivatives Investment Approval Board Announcement Disclosure Date (if any) | February 05, 2024 | |||||||
| Derivatives Investment Approval Shareholders' Meeting Announcement Disclosure Date (if any) | March 20, 2024 | |||||||
2) Derivatives investment for speculative purposes during the reporting period
□Applicable ? Not applicable
During the reporting period, the company did not invest in derivatives for speculative purposes.
5. Use of raised funds
□Applicable ? Not applicable
The company had no use of raised funds during the reporting period.VIII. Major Asset and Equity Sale
1. Sale of major assets
□Applicable ? Not applicable
The company did not sell any major assets during the reporting period.
2. The sale of major equity
□Applicable ? Not applicable
IX. Analysis of major holding companies?Applicable □ Not applicableMajor subsidiaries and shareholding companies that have an impact on the company's net profit by more than 10%
Unit: ten thousand yuan
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Guangdong Hinter Biotechnology Group Co., Ltd | Subsidiary | Production and sales of feed premixes | 8,000.00 | 102,152.30 | 93,574.78 | 77,264.89 | 28,671.24 | 24,802.69 |
Acquisition and disposal of subsidiaries during the reporting period?Applicable □ Not applicable
| Company name | The method of acquiring and disposing of subsidiaries during the reporting period | Impact on overall production operations and performance |
| Guizhou Yixin Seed Technology Co., Ltd | Newly established | No significant impact on current results |
| Hunan Yixin Pig Breeding Co., Ltd | Newly established | No significant impact on current results |
| Ji'an Yitun Ecological Agriculture Co., Ltd | Newly established | No significant impact on current results |
| Company name | The method of acquiring and disposing of subsidiaries during the reporting period | Impact on overall production operations and performance |
| Meizhou Yikang Pig Breeding Technology Co., Ltd | Newly established | No significant impact on current results |
| Qingdao Daxin Yitun Ecological Agriculture Co., Ltd | Newly established | No significant impact on current results |
| Shaoguan Zhenjiang District Yixian Food Co., Ltd | Newly established | No significant impact on current results |
| Guangdong Yitun Supply Chain Management Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Xitun Agricultural Investment Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Peiqi Investment Co., Ltd | Newly established | No significant impact on current results |
| Zigong Peiqi Agricultural Technology Co., Ltd | Newly established | No significant impact on current results |
| Qinzhou Peiqi Breeding Service Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Haiyue Agriculture and Animal Husbandry Co., Ltd | Newly established | No significant impact on current results |
| Qujing Haiyue Ecological Agriculture Co., Ltd | Newly established | No significant impact on current results |
| Hunan Haiyue Ecological Agriculture Co., Ltd | Newly established | No significant impact on current results |
| Liuzhou Haizehui Fishery Technology Co., Ltd | Newly established | No significant impact on current results |
| Huizhou Haizexin Marine Biological Technology Co., Ltd | Newly established | No significant impact on current results |
| Zhuhai Haizexin Marine Biotechnology Co., Ltd | Newly established | No significant impact on current results |
| Zhanjiang Haizexin Marine Biological Technology Co., Ltd | Newly established | No significant impact on current results |
| Shanwei Haixingnong Marine Biological Technology Co., Ltd | Newly established | No significant impact on current results |
| Shanwei Haizenong Gene Technology Co., Ltd | Newly established | No significant impact on current results |
| Yingkou Haishengyuan Biotechnology Co., Ltd | Newly established | No significant impact on current results |
| Shanwei Haizehui Marine Biological Technology Co., Ltd | Newly established | No significant impact on current results |
| Beihai Haizenong Agricultural Seed Technology Co., Ltd | Newly established | No significant impact on current results |
| Rongcheng Yandunjiao Feed Co., Ltd | Newly established | No significant impact on current results |
| Haiyang Haihe Feed Co., Ltd | Newly established | No significant impact on current results |
| Haida (Zhengzhou) Digital Technology Co., Ltd | Newly established | No significant impact on current results |
| Rongcheng Haituo Biological Technology Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Shuohai Commercial Management Co., Ltd | Newly established | No significant impact on current results |
| Beijing Haichengyuan Feed Technology Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Haihong Biotechnology Co., Ltd | Newly established | No significant impact on current results |
| Yiyang Dachuan Feed Co., Ltd | Newly established | No significant impact on current results |
| Yucheng Haiding Agriculture and Animal | Newly established | No significant impact on current results |
| Company name | The method of acquiring and disposing of subsidiaries during the reporting period | Impact on overall production operations and performance |
| Husbandry Co., Ltd | ||
| Zhuhai Fengcheng Supply Chain Management Co., Ltd | Newly established | No significant impact on current results |
| Hexin Technology (Henan) Co., Ltd | Newly established | No significant impact on current results |
| Zhaoqing Bairong Seed Technology Co., Ltd | Newly established | No significant impact on current results |
| Yantai Zhizhuxia Breeding Service Co., Ltd | Newly established | No significant impact on current results |
| Yantai Daxin Agriculture and Animal Husbandry Development Co., Ltd | Newly established | No significant impact on current results |
| Guangzhou Haiying Commercial Management Co., Ltd | Newly established | No significant impact on current results |
| Lishui Haida Huatong Biotechnology Co., Ltd | Newly established | No significant impact on current results |
| Ningdu Haida Biotechnology Co., Ltd | Newly established | No significant impact on current results |
| Huaian Dachuan Feed Co., Ltd | Newly established | No significant impact on current results |
| Shenyang Shengkang Biotechnology Service Co., Ltd | Newly established | No significant impact on current results |
| HAIDA AGRICULTURAL AND TECHNOLOGY NIGERIA LIMITED | Newly established | No significant impact on current results |
| PT.HAILIANK TECHNOLOGY INDONESIA | Newly established | No significant impact on current results |
| MEKONG HAI LONG COMPANY LIMITED | Newly established | No significant impact on current results |
| Guiping Yitun Ecological Agriculture Co., Ltd | Log out | No significant impact on current results |
| Baojing County Yitun Ecological Agriculture Co., Ltd | Log out | No significant impact on current results |
| Rongcheng Yandunjiao Fish Meal Co., Ltd | Log out | No significant impact on current results |
| Xinjiang Xiyu Haihua Products Co., Ltd | Log out | No significant impact on current results |
| Jinzhou Zhengyuan Grain Trading Co., Ltd | Log out | No significant impact on current results |
| Jining Haiding Veterinary Service Co., Ltd | Log out | No significant impact on current results |
| Yinan Dingxin Veterinary Service Co., Ltd | Log out | No significant impact on current results |
| Junan Haiding Veterinary Service Co., Ltd | Log out | No significant impact on current results |
| Guangzhou Haishengke Investment Co., Ltd | Log out | No significant impact on current results |
| Binzhou Haiying Food Co., Ltd | Log out | No significant impact on current results |
| Qingdao Zhizhuxia Experimental Technology Co., Ltd | Log out | No significant impact on current results |
| Ganzhou Hailong Feed Co., Ltd | Log out | No significant impact on current results |
| Guangzhou Shunkang Aquaculture Co., Ltd | Log out | No significant impact on current results |
| Guangzhou Hairong Food Co., Ltd | Log out | No significant impact on current results |
| Dali Haizhi Trading Co., Ltd | Log out | No significant impact on current results |
| Dongguan Haiqi Feed Co., Ltd | Log out | No significant impact on current results |
| Leizhou Hailong Biological Technology Co., Ltd | Log out | No significant impact on current results |
| Jiangsu Haida Biotechnology Co., Ltd | Log out | No significant impact on current results |
| Foshan Lianduoli Feed Co., Ltd | Log out | No significant impact on current results |
| Company name | The method of acquiring and disposing of subsidiaries during the reporting period | Impact on overall production operations and performance |
| Qingyuan Haikun Biotechnology Co., Ltd | Log out | No significant impact on current results |
| Guiyang Aizhu Livestock and Poultry Technical Service Co., Ltd | Log out | No significant impact on current results |
| Guangzhou Haihan Asset Technology Co., Ltd | Log out | No significant impact on current results |
| Zhuhai Chenzhe Private Equity Fund Management Co., Ltd | Log out | No significant impact on current results |
| Yantai Haixin Animal Husbandry Co., Ltd | Log out | No significant impact on current results |
| PRIME WORLD CO., LTD. | Log out | No significant impact on current results |
| Foshan Hainong HangbiaoFeed Co., Ltd | Equity sale | No significant impact on current results |
| Liaocheng Daxin Feed Co., Ltd | Equity sale | No significant impact on current results |
| Yantai Zhizhuren Pig Farm Feed Co., Ltd | Equity sale | No significant impact on current results |
Description of the main holding companies
The main business of Guangdong Hinter Biotechnology Group Co., Ltd. is feed premix, which is mainly soldto other subsidiaries within the Group and other feed companies in the industry. The gross profit level of theproducts is higher than that of the company's compound feed products. During the reporting period, its operatingrevenue and profit were strong., and its net profit was 248 million yuan (including internal sales and externalsales).X .Structured entities controlled by the company
□Applicable ? Not applicable
XI. Prospects for the company's future development
See "I. The industry in which the company operates during the reporting period".
XII. Reception of research, communication, interviews and other activities during thereporting period?Applicable □ Not applicable
| Reception time | Reception location | Reception | Reception object type | Reception object | The main content of the discussion and the information provided | Basic Information Index of the Survey |
| January 26, 2024 | Online meeting | Telephone communication | Mechanism | Essence Fund, Bosera Funds, Zhongtai Asset Management, etc | Company production and operation | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen |
| Stock Exchange's website | ||||||
| April 23, 2024 | Company meeting room | Telephone communication | Mechanism | FullgoalFund, GF Fund, etc | Interpretation of the company's annual and first quarter results | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| April 29, 2024 | p5w.net | Online communication on network platform | other | Investors participating in the "Quanjing · Roadshow World" interaction | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| May 16, 2024 | Company meeting room | Field research | Institution/Individual | Guolian Fund, CHINA SECURITIES INVESTOR SERVICES CENTER Co., Ltd., individual investors, etc | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| June 01, 2024 | Shanghai, Shenzhen | Field research | Mechanism | CICC, Haitong Securities, Foresight Fund, etc | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| July 30, 2024 | Company meeting room | Telephone communication | Mechanism | Gf Securities, China Asset Management, etc | Interpretation of the company's semi-annual results | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| September 01, 2024 | Shanghai, Shenzhen | Field research | Mechanism | Gf Securities, Invesco Great Wall Fund, Harvest Fund, etc | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| September 12, 2024 | p5w.net | Online communication on network | other | Investors participating in the interaction of p5w.net | The company's production | The survey results are published on www.cninfo.com.c |
| platform | and operation and the company's development strategy | n and the interactive website of the Shenzhen Stock Exchange's website | ||||
| October 20, 2024 | Company meeting room | Telephone communication | Mechanism | Gf Securities, FullgoalFund, GF Fund, etc | Interpretation of the company's third quarter results | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| November 01, 2024 | Shenzhen, Beijing, Shanghai | Field research | Mechanism | CITIC Securities, CICC, RosefinchFund, etc | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
| December 01, 2024 | Hongkong | Field research | Mechanism | Gf Securities, Point 72, etc | The company's production and operation and the company's development strategy | The survey results are published on www.cninfo.com.cn and the interactive website of the Shenzhen Stock Exchange's website |
XIII. Formulation and implementation of market value management system and valuationenhancement planWhether the company has established a market value management system.?Yes □NoHas the company disclosed its valuation enhancement plan
□ Yes ? No
The Company formulated the Market Value Management System in December 2024, which was reviewedand approved at the twenty-second meeting of the sixth board of directors of the Company on December 6, 2024.The main purpose of market value management is to enhance the company's transparency through fully compliantinformation disclosure, to align the company's market value with its intrinsic value and at the same time usecapital operation, equity management, investor relationship management and other means to fully realize thecompany's value, establish a stable and high-quality investor base, and obtain long-term market support.
XIV. Implementation of the "Quality and Return Double Improvement" Action Plan
Has the company disclosed the announcement of the action plan for the "double improvement of quality andreturn"??Yes □NoIn order to thoroughly implement the important instructions of "to activate the capital market and boostinvestor confidence" put forward by the Political Bureau of the Central Committee meeting and "to vigorouslyimprove the quality and investment value of listed companies, and to take more effective measures to stabilize themarket and stabilize confidence" put forward by the executive meeting of the State Council, the company hasalways practiced the concept of high-quality sustainable development while sticking to its original intention andtaking root in agricultural development, and has continuously improved the quality of operation and development,investment value and sustainable development level of the company. In order to safeguard the interests of allshareholders of the company, enhance investor confidence, and promote the stable development of the capitalmarket, the company formulated an action plan for "double improvement of quality and return" on March 7, 2024.For details, please refer to the "Announcement on Promoting Double Improvement of Quality and Return" actionplan disclosed in the company's designated information disclosure media (Announcement No.: 2024-017). For theimplementation and progress of the action plan, please refer to the relevant announcements disclosed in thecompany's designated information disclosure media (announcement numbers: 2024-042, 2025-022).
Section IV Corporate Governance
I. The basic situation of corporate governance
1. The establishment of the company system
From the company's listing to the end of the reporting period, the company has continuously improved thecompany's internal corporate governance structure, optimized the internal control environment, improved theinternal management system, and standardized the company's operations in strict accordance with the CompanyLaw, the Securities Law, the Shenzhen Stock Exchange's Stock Listing Rules, the Shenzhen Stock Exchange'sSelf-Regulatory Guidelines for Listed Companies No.1—Standardized Operation of Main Board ListedCompanies, Efforts to improve the level of corporate governance. The actual situation of corporate governancecomplies with the requirements of the relevant normative documents of the China Securities RegulatoryCommission and the Shenzhen Stock Exchange on the governance of listed companies.
2. About shareholders and general meeting
During the reporting period, the company strictly followed the requirements of the Company Law, theArticles of Association, the Rules of Procedure for the General Meeting of Shareholders and other laws andregulations, as well as the requirements of the internal control system, to standardize the convening, conveningand voting procedures of the general meeting of shareholders, to ensure that all shareholders enjoy equal status,fully exercise their rights, and to ensure the legality of the convening and voting procedures by hiring lawyers towitness, and to safeguard the legitimate rights and interests of the company and shareholders. A total of 3shareholder meetings were hold in 2024, all of which will be convened by the board of directors. The convening,convening and voting procedures of the shareholders meeting have been witnessed by witnessing lawyers, and allare legal and valid.
3. About directors and the board of directors
The company elects and appoints directors in strict accordance with the "Company Law", "Articles ofAssociation", "Rules of Procedure of the Board of Directors" and "Independent Director System". The selectionand appointment procedures of directors are open, fair and just, and the composition and number of directors meetthe requirements of laws and regulations. The members of the sixth board of directors of the company arenominated and recommended in accordance with relevant regulations, reviewed by the board of directors, andelected by the cumulative voting system. There are currently 7 directors, including 3 independent directors.Independent directors account for more than one-third of all directors, and their qualifications meet therequirements for the qualifications of independent directors in the "Administrative Measures for IndependentDirectors of Listed Companies".
All directors of the company perform their duties in strict accordance with relevant laws, regulations andnormative documents, attend all board meetings and carry out related work in a serious and responsible manner,and strictly abide by the directors' statements and commitments. Independent directors strictly follow the relevant
requirements of independence, conduct self-examination on independence every year, and the board of directorsof the company evaluates the independence of incumbent independent directors and issues special opinions.
The Board of Directors has an Audit Committee, a Remuneration and Appraisal Committee, a StrategyCommittee and a Nomination Committee. Each committee can perform its functions in accordance with itsworking rules and make due contributions to the standardization of corporate governance. The board of directorscan carry out its work in strict accordance with relevant laws and regulations. All directors of the company arehonest, trustworthy, diligent and responsible, attend board meetings and shareholders' meetings conscientiously,actively participate in relevant training, and are familiar with relevant laws and regulations.
4. About the Supervisory Board and the Supervisory Board
The company has appointed supervisors in strict accordance with the "Company Law", "Articles ofAssociation" and other relevant regulations. The sixth board of supervisors has 3 supervisors, including 2shareholder supervisors and 1 employee supervisor. The number and composition of the board of supervisors meetthe requirements of laws and regulations. Among them, the shareholder representative supervisor is elected by thecumulative voting system, and the employee supervisor is elected by the company's employee representativeassembly through a secret ballot. The company's supervisors can conscientiously perform their duties inaccordance with the "Rules of Procedure of the Board of Supervisors" and other requirements, effectivelysupervise and inspect the company's major events, related transactions, and the legality and compliance of thecompany's directors and senior management in performing their duties, so as to safeguard the legitimate rights andinterests of the company and shareholders.
5. About the internal audit system
The company has established a sound internal audit system and set up an internal audit department toconduct effective internal supervision over the company's daily operations.
6. About stakeholders
The company fully respects and safeguards the legitimate rights and interests of relevant stakeholders,realizes the coordination and balance of the interests of society, shareholders, the company, employees, etc., treatssuppliers and customers with integrity, earnestly trains every employee, adheres to the principle of mutual benefitand win-win with relevant stakeholders, and jointly promotes the company's sustainable, healthy and rapiddevelopment.
7. About information disclosure and transparency
The company strictly complies with the relevant laws and regulations and the requirements of the company's"Information Disclosure System" and "Investor Relations Management System" to disclose information truthfully,accurately, completely and in a timely manner to ensure that all shareholders have equal opportunities to obtaininformation.
The chairman of the board assumes primary responsibility for the management of the company's informationdisclosure affairs. The company appoints the secretary of the board of directors to be responsible for organizingand coordinating the management of the company's information disclosure affairs and investor relations, and thesecurities department is the executive department of information disclosure affairs and investor relations
management. The company pays attention to communication with investors, and strengthens communication withinvestors through various methods such as telephone, email, and investor relations interactive platform.The company's information disclosure work has been assessed by the Shenzhen Stock Exchange as thehighest level A (excellent) for 14 consecutive years from 2010 to 2023.
8. About Investor Relations Management
The company has always attached great importance to the management of investor relations, and carried outrelevant work in accordance with the requirements of the "Investor Relations Management System" and othersystems. It has adopted various forms such as the Shenzhen Stock Exchange's investor relations interactiveplatform, investor hotline, and receiving investor visits to implement investor relations management, strengthencommunication with investors, and fully guarantee the majority of investors' right to know.Corporate governance is a systematic and long-term project that requires continuous improvement. After thecompany is successfully listed, it is willing to accept the supervision of all parties, adhere to the scientificdevelopment concept, continuously improve the corporate governance system, strengthen the practice of variouslaws and regulations, promote the healthy development of the company, and improve the overall competitiveness.
9. About inside information management
In accordance with the "Company Law", "Securities Law", "Shenzhen Stock Exchange Stock Listing Rules"and other relevant laws and regulations and the relevant provisions of the "Articles of Association", the companyhas formulated the "Registration Management System for Insiders with Inside Information". In strict accordancewith the requirements of the relevant system, the company does a good job in the registration and filing of insiderinformation, and can truthfully record and disclose the list of all insider information insiders and the progress ofmajor events in the reporting, transmission, preparation, resolution, disclosure and other links of insiderinformation before external disclosure. Memorandum. During the reporting period, the company did not have anyinsider information illegally buying or selling the company's stock, nor was there any case where relevantpersonnel were suspected of insider trading and were subject to regulatory measures and administrative penaltiesby the regulatory authorities.Are there any major differences between the actual status of corporate governance and laws, administrativeregulations and the regulations on listed company governance issued by the China Securities RegulatoryCommission
□ Yes ? No
There is no major difference between the actual status of corporate governance and laws, administrativeregulations and the regulations on listed company governance issued by the China Securities RegulatoryCommission.
II. The company's independence from the controlling shareholder and actual controller inguaranteeing the company's assets, personnel, finance, organization, business, etcThe company has independent and complete business and independent operation capabilities, and iscompletely independent of the controlling shareholder in terms of assets, personnel, finance, organization, andbusiness.
1. In terms of assets, the company has a clear property rights relationship with the controlling shareholder,has independent land use rights, housing property rights, and independently registers, builds accounts, accounts,and manages the company's assets. The controlling shareholder does not occupy, dominate the company's assetsor interfere with the company's operation and management of the assets.
2. In terms of personnel, the company has established an independent personnel system. The controllingshareholders exercise their rights and undertake corresponding obligations in accordance with the law. There is nooccurrence of affecting the appointment and removal of listed company personnel or restricting the performanceof duties by directors, supervisors, senior managers or other personnel of listed companies by exercisingshareholder rights other than those stipulated by laws and regulations.
3. In terms of finance, the company has a complete and independent financial institution, equipped withsufficient full-time financial personnel, established an independent accounting system and financial managementsystem, independently opened bank accounts, independently paid taxes, independently allocated funds, and madeindependent financial decisions. There is no situation where the controlling shareholder interferes with thefinancial management of the company;
4. In terms of organization, the board of directors, the board of supervisors and various internal functionaldepartments of the company can operate independently, and there is no subordinate relationship with the internalorganization of the controlling shareholder, and there is no direct or indirect interference by the controllingshareholder in the decision-making and business activities of the company beyond the general meeting ofshareholders.
5. In terms of business, the company's business structure is independent and complete, and it has the abilityto independently face the market and operate independently. There is no competition with the company in termsof business scope, business nature, customer targets, product substitutability, etc.; there is no use of the company'scontrolling position to seek business opportunities belonging to the company; there is no situation that directlymakes major decisions about the listed company on behalf of the shareholders meeting and the board of directorsand interferes with the normal decision-making procedures of the listed company.III. Horizontal competition
□Applicable ? Not applicable
IV. Relevant information on the annual general meeting and extraordinary general meetingheld during the reporting period
1. The general meeting of shareholders during the reporting period
| Session | Meeting type | Investor participation ratio | Date | Disclosure date | Meeting resolutions |
| First Extraordinary General Meeting of Shareholders in 2024 | Extraordinary General Meeting | 73.52% | March 20, 2024 | March 21, 2024 | For details, please refer to the "Announcement on Resolutions of the First Extraordinary General Meeting of Shareholders in 2024" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-021) |
| 2023 Annual General Meeting | Annual general meeting | 67.14% | May 16, 2024 | May 17, 2024 | For details, please refer to the "Announcement on Resolutions of the 2023 Annual General Meeting of Shareholders" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-048) |
| Second Extraordinary General Meeting of Shareholders in 2024 | Extraordinary General Meeting | 65.41% | November 04, 2024 | November 05, 2024 | For details, please refer to the "Announcement on Resolutions of the Second Extraordinary General Meeting of Shareholders in 2024" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No. 2024-070) |
2. Preferred shareholders whose voting rights have been restored request to convene an extraordinarygeneral meeting
□Applicable ? Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
| Name | Sex | Age | Position | Employment status | Term start date | Term end date | Number of shares held at the beginning of the period (shares) | The number of shares held in the current period (shares) | The number of shares reduced in the current period (shares) | Other changes (shares) | Number of shares held at the end of the period (shares) | Reasons for changes in shares |
| Xue Hua | Male | 55 | Chairman | Incumbent | June 06, 2007 | August 18, 2025 | ||||||
| President | Incumbent | May 25, 2010 | August 18, 2025 | |||||||||
| Xu Yingzhuo | Male | 57 | Vice Chairman | Incumbent | June 06, 2007 | August 18, 2025 | ||||||
| Cheng Qi | Male | 45 | Director | Incumbent | July 16, 2019 | August 18, 2025 | 52,500 | 52,500 | ||||
| Executive Vice President | Incumbent | July 16, 2019 | August 18, 2025 | |||||||||
| Qian Xueqiao | Male | 58 | Director | Incumbent | February 03, 2021 | August 18, 2025 | 255,700 | 255,700 | ||||
| Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | |||||||||
| Chief engineer | Incumbent | January 22, 2008 | August 18, 2025 | |||||||||
| Gui Jianfang (Note 1) | Male | 69 | Independent director | Outgoing | July 16, 2019 | January 09, 2025 | ||||||
| He Jianguo | Male | 63 | Independent director | Incumbent | July 16, 2019 | August 18, 2025 | ||||||
| Liu Yunguo | Male | 59 | Independent director | Incumbent | July 16, 2019 | August 18, 2025 | ||||||
| Gao Zexia (Note 2) | Female | 43 | Independent director | Incumbent | January 09, 2025 | August 18, 2025 | ||||||
| Shen Dong | Male | 47 | Supervisor | Incumbent | September 14, 2023 | August 18, 2025 | ||||||
| Wang | Male | 38 | Superviso | Incumben | Novemb | Augu |
| Name | Sex | Age | Position | Employment status | Term start date | Term end date | Number of shares held at the beginning of the period (shares) | The number of shares held in the current period (shares) | The number of shares reduced in the current period (shares) | Other changes (shares) | Number of shares held at the end of the period (shares) | Reasons for changes in shares |
| Hua | r | t | er 16, 2020 | st 18, 2025 | ||||||||
| Mu Yongfang | Female | 36 | Supervisor | Incumbent | November 16, 2020 | August 18, 2025 | ||||||
| Liu Guoxiang | Male | 56 | Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | 152,070 | 152,070 | ||||
| Yang Shaolin | Male | 51 | Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | 330,900 | 330,900 | ||||
| Financial Controller | Incumbent | October 22, 2012 | August 18, 2025 | |||||||||
| Jiang Xiewu | Male | 57 | Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | 50,180 | 50,180 | ||||
| Mi Guocheng | Male | 53 | Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | 182,100 | 182,100 | ||||
| Chen Zhongzhu | Male | 55 | Vice-President | Incumbent | July 16, 2019 | August 18, 2025 | 141,570 | 141,570 | ||||
| Chen Mingzhong | Male | 60 | Vice-President | Incumbent | June 06, 2007 | August 18, 2025 | ||||||
| Yang Jiantao | Male | 56 | Vice-President | Incumbent | August 19, 2022 | August 18, 2025 | ||||||
| Wang Jing | Female | 46 | Vice-President | Incumbent | August 19, 2022 | August 18, 2025 | 8,700 | 8,700 | ||||
| Huang Zhijian | Male | 47 | Vice-President | Incumbent | July 26, 2012 | August 18, 2025 | 412,244 | 412,244 | ||||
| Board secretary | Incumbent | July 26, 2012 | August 18, 2025 | |||||||||
| Huo Quanwen | Male | 50 | Vice-President | Incumbent | February 05, 2024 | August 18, 2025 | ||||||
| Zhang Guijun | Male | 51 | Vice-President | Incumbent | February 05, 2024 | August 18, 2025 | ||||||
| Lv | Male | 48 | Vice- | Incumben | Februar | Augu | 52,260 | 52,260 |
| Name | Sex | Age | Position | Employment status | Term start date | Term end date | Number of shares held at the beginning of the period (shares) | The number of shares held in the current period (shares) | The number of shares reduced in the current period (shares) | Other changes (shares) | Number of shares held at the end of the period (shares) | Reasons for changes in shares |
| Xuezhi (Note 3) | President | t | y 05, 2024 | st 18, 2025 | ||||||||
| Total | -- | -- | -- | -- | -- | -- | 1,638,224 | 0 | 0 | 0 | 1,638,224 | -- |
Note:
1. Mr. Gui Jianfang has resigned before the expiration of his term on January 9, 2025.
2. Ms. Gao Zexia was appointed as an independent director of the company on January 9, 2025.
3. The number of shares held by Mr. Lv Xuezhi at the beginning of the period refers to the shareholding situationon the day when the company appointed him as vice president (February 5, 2024).Whether there were any resignations of directors and supervisors and dismissal of senior management during thereporting period
□ Yes ? No
Changes in the company's directors, supervisors and senior management
□Applicable ? Not applicable
2. Employment
The professional background, main work experience and current main responsibilities of the company's currentdirectors, supervisors and senior managers
（1）Directors
Mr. Xue Hua, born in 1970, master degree, engineer. In 1992, he graduated from the Fisheries College ofHuazhong Agricultural University, majoring in special aquaculture; in 1995, he received a master's degree inzoology from the School of Life Sciences, Sun Yat-sen University. He has served successively as the vicechairman of Guangdong Rural Revitalization Promotion Association, the vice chairman of Guangdong FeedIndustry Association, the vice chairman of Guangdong Non-Anti-Feed Industry Alliance, the vice chairman ofGuangdong Agricultural Industrialization Leading Enterprise Association, the vice chairman of the 16thExecutive Committee of Guangzhou Federation of Industry and Commerce, the vice chairman of GuangzhouCharity Association, the vice chairman of Guangzhou Guangcai Career Promotion Association, the honorarychairman of Guangzhou Feed Industry Association, and the executive vice chairman of Guangzhou Guangdong-Hong Kong-Macao Greater Bay Area Enterprise Integrity and Compliance Management Association. He has
successively won the titles of "Leading Figure of Chinese Feed Enterprises", "Thirty Outstanding Entrepreneurs inChina" and "Top Ten Economic Figures in Guangdong". One of the founders of the company, he is currently thechairman and president of the company and the executive director of Guangzhou Haihao Investment Co., Ltd., thecontrolling shareholder of the company. Mr. Xue Hua holds 39.75% of the equity of Guangzhou HaihaoInvestment Co., Ltd., the controlling shareholder of the company, and is the actual controller of the company.Mr. Xu Yingzhuo, born in 1968, is an animal pastor. In 1991, he graduated from South China AgriculturalUniversity majoring in animal husbandry with a bachelor's degree, and later obtained a master's degree in businessadministration from HEC Business School in Paris. He is one of the founders of the company and the current vicechairman of the company.Mr. Cheng Qi, born in 1980, holds a master's degree. He graduated from Huazhong University of Scienceand Technology in 2002 with a major in automation; from 2005 to 2008, he studied at Sun Yat-sen Universitywith a master's degree in world economics; from 2013 to 2015, he studied at China Europe International BusinessSchool with an EMBA and obtained a master's degree in business administration. From 2002 to 2010, he servedas process engineer, operation manager, supply chain manager and technical director in Guangzhou Procter &Gamble & Gamble Co., Ltd. From 2010 to 2017, he served as operation director of East Asia Pacific and globalsupply chain director in Esol Packaging Co., Ltd. He joined the company in March 2017 and is currently adirector, executive vice president of the company, and general manager of South China.
Mr. Qian Xueqiao, born in 1967, holds a doctorate degree. He has presided over or participated in the HubeiProvincial Natural Science Foundation project "Development and Utilization of Feather Protein in Fishery Feed",the development project of the State Key Laboratory of Freshwater Ecology and Biotechnology, "Influence ofNutritional Level and Nutritional History on Fish Growth and Activity, Research on Feeding Behavior andChemical Sensation of Allogeneic Crucian Carp, Research on Utilization of Plant Protein by Major FreshwaterFarmed Fish" The National Natural Science Foundation of China project "Comparative Nutritional EnergyResearch on Feed Protein Requirements for Carnivorous Fish and Omnivorous Fish", and the Ministry ofAgriculture's 948 project "Artificial Propagation and Large-scale Breeding of Keynose Sturgeon", etc., havepublished more than 20 papers, three of which have been published in international journals and included in SCI.He joined the company in 2004 and is mainly engaged in aquatic animal nutrition and feed science research andthe development of new feed additives. He is currently a director, vice president, chief engineer and supervisor ofGuangzhou Haihao Investment Co., Ltd., the controlling shareholder of the company.Mr. He Jianguo, born in 1962, Ph.D., professor, recipient of the National Science Fund for DistinguishedYoung Scholars. In 1990, he graduated from Sun Yat-sen University majoring in zoology with a doctorate ofscience. He has been working at Sun Yat-Sen University since 1991; from 2000 to 2008, he was the deputy deanof the School of Life Sciences, Sun Yat-Sen University; from 2008 to 2018, he was the dean of the School ofMarine Sciences, Sun Yat-Sen University; He is currently a professor at Sun Yat-sen University, director of theNational Key Laboratory of Aquatic Animal Disease Prevention and Control and Healthy Breeding, director ofthe China-ASEAN Marine Aquaculture Technology "Belt and Road" Joint Laboratory, deputy director of theAquatic Disease Control Expert Committee of the Ministry of Agriculture and Rural Affairs, and vice president ofthe Crustacean Branch of the Chinese Zoological Society. He is currently an independent director of the company.
Mr. Liu Yunguo, born in 1966, has a doctorate in accounting from Xiamen University, a visiting scholar atthe University of Houston in the United States, an outstanding teacher at Baosteel in the country, and a famousteaching teacher in Guangdong Province (undergraduate). He is currently a professor of accounting and a doctoralsupervisor in the School of Management, Sun Yat-sen University. He is also a senior researcher of the ChinaEnterprise Reform and Development Research Association, a member of the Management AccountingProfessional Committee of the China Accounting Association, an executive director of the China Cost ResearchAssociation, a management accounting consulting expert of the Ministry of Finance, a member of the CGMANorth Asia 100 Leadership Think Tank, a member of the IMA Academic Advisory Committee, the vice presidentof the Consulting Branch of the China Association of Chief Accountants, the vice president of the GuangdongAssociation of Management Accountants, the editorial board of Management Accounting Research, and theeditorial board of China Management Accounting. Selected into the Ministry of Finance Accounting MasterTraining Project (2019), the third batch of special support plans of the Ministry of Finance, and the Ministry ofFinance Accounting Leading Talents (first phase). At the same time, he is also an independent director ofGuangzhou Haige Communications Group Incorporated Co., and Guangzhou Shiyuan Electronic Technology Co.,Ltd.. He is currently an independent director of the company.Ms. Gao Zexia, born in 1982, Ph.D., doctoral supervisor. In June 2010, he obtained a doctorate degree inaquaculture from Huazhong Agricultural University. In July of the same year, he worked at HuazhongAgricultural University until now. From August 2007 to February 2009, he conducted joint training doctoralresearch at Ohio State University in the United States; from November to December 2015, he conducted visitingscholar research at Nofima Institute in Norway; from September 2016 to August 2017, he conducted visitingscholar research at the University of California, Davis in the United States; and since December 2017, he has beena professor and doctoral supervisor of Huazhong Agricultural University. Since September 2019, he has been thedeputy dean of the Fisheries College of Huazhong Agricultural University; he is currently the second-levelprofessor of Huazhong Agricultural University, the director of the Key Laboratory of Freshwater BiologicalBreeding of the Ministry of Agriculture and Rural Affairs, the deputy director of the Freshwater AquacultureBranch of the Chinese Fisheries Society, and the director of the Chinese Fisheries Society. He is currently anindependent director of the company.
(2) Supervisors
Mr. Shen Dong, born in 1978, holds a master's degree and graduated from Sun Yat-sen University majoringin law. He joined the company in 2021 and is currently the company's assistant vice president, responsible for thecompany's legal affairs, brand promotion, government affairs and administrative logistics, and is the company'semployee representative supervisor.
Mr. Wang Hua, born in 1987, master degree, economist. He graduated from Southwest Jiaotong Universitywith a major in Political Science and Administration in 2009, and received a master's degree in Political ScienceTheory from Wuhan University in 2011. From July 2011 to March 2017, he worked in Guangdong HuatunConstruction Co., Ltd., and from June 2017 to March 2019, he worked in Guangdong Cinda Real Estate Co., Ltd.,joined the company in April 2019, and is currently the assistant director of the group secretary office and thecompany's supervisor.
Ms. Mu Yongfang, born in 1989, bachelor degree, intermediate accountant. In June 2012, he graduated fromHenan University of Economics and Law majoring in accounting. He joined the company in July 2012 and hasheld relevant positions in the company's cost accounting, budget management and financial management. He iscurrently the company's financial senior manager and company supervisor.
(3) Senior management
Mr. Liu Guoxiang, born in 1969, bachelor degree, graduated from Huazhong Agricultural University in 1992,majoring in special aquatic products. He joined the company in 2004 and is currently the vice president of thecompany, responsible for the investment, construction and operation of the company's investment projects, as wellas the general manager of Central China.
Mr. Yang Shaolin, born in 1974, graduated from Sun Yat-sen University majoring in business administrationwith a master's degree and an EMBA. He is a senior accountant, certified public accountant and certified tax agent.From 2008 to 2012, he served as executive director, Chief Financial Officer and joint secretary of KEE HoldingsLimited (HK.02011). He was selected into the high-tech enterprise evaluation expert database of the GuangdongProvincial Department of Science and Technology, and served as the vice president of the Guangdong Associationof Management Accountants. Since June 2016, he has served as an off-campus tutor for the master of accountingin the School of Management of Sun Yat-sen University. Since 2021, he has been a master’s tutor of accountingin Guangdong University of Foreign Studies. He joined the company in 2012 and is currently the vice president ofthe company, responsible for the company's finance, industrial finance and risk control business, and the chieffinancial officer.
Mr. Jiang Xiewu, born in 1968, bachelor degree, aquaculture engineer, the first batch of rural craftsmanprofessionals in Guangdong Province (senior title). In 1992, he graduated from Huazhong Agricultural UniversityFisheries College, majoring in special aquatic products. He served as the vice president of China FisheriesAssociation, the executive president of the first council of the Aquatic Seedlings Branch of China FisheriesAssociation, and the honorary president of Weifang Fisheries Association. He joined the company in 2004 and iscurrently the vice president of the company, responsible for the aquaculture business of aquatic seedlings, and thegeneral manager of Heint.
Mr. Mi Guocheng, born in 1972, bachelor degree, graduated from Southwest Agricultural Universitymajoring in freshwater fishery. He joined the company in 2010 and is currently the vice president of the company,responsible for the pig breeding business, and the general manager of the dolphin business department.
Mr. Chen Zhongzhu, born in 1970, holds a master's degree. He joined the company in 2004 and is currentlythe vice president of the company, responsible for the aquaculture business, and the general manager of theshrimp special division and the Ronghai aquaculture division.
Mr. Chen Mingzhong, born in 1965, master degree. He is currently the vice president of GuangzhouAgricultural Leading Enterprise Association, the vice president of the Standing Committee of Guangzhou PanyuDistrict Federation of Industry and Commerce, the vice president of Guangzhou Sanhui (Guangzhou IndustrialEconomic Federation, etc.), and the executive vice president of Nancun General Chamber of Commerce in PanyuDistrict, Guangzhou. He was awarded the honorary title of "Excellent Entrepreneur of Caring for Employees in
Panyu District, Guangzhou". He joined the company in 2004 and is currently the vice president of the company,responsible for public relations, brand image and publicity.Mr. Yang Jiantao, born in 1969, holds a master's degree and graduated with an MBA from Hong KongBaptist University. He joined the company in 2004 and is currently the vice president of the company, responsiblefor the processing, procurement and trading of the company's raw materials.Ms. Wang Jing, born in 1979, graduated from the University of Science and Technology of China majoringin management science in 2001. From 2006 to 2008, she studied at Cheung Kong Graduate School of Business foran MBA and obtained a master's degree in business administration. From 2001 to 2006, he successively worked inIFLYTEK Co., Ltd., Shenzhen Bohua Consulting Co., Ltd., and Tencent Technology Co., Ltd. From thebeginning of 2008 to 2010, he worked as a consultant in IBM China. He joined the company in February 2012 andis currently the company's vice president, responsible for the company's human resource management business.Mr. Huo Quanwen, born in 1974, is studying for an MBA from Cheung Kong Graduate School of Business.He joined the company in 2012 and is currently the vice president of the company. He is responsible for theoverall operation and management of the company's Shandong region and concurrently serves as the generalmanager of the Shandong region.Mr. Zhang Guijun, born in 1973, holds a master's degree from the School of Management, Sun Yat-SenUniversity. He joined the company in 2004 and has served as the company's factory operations director, humanresources director, and assistant to the president. He is currently the company's vice president, responsible for themanagement of the strategic development division and the ruminant division, and concurrently serves as thegeneral manager of the strategic development division and the ruminant division.
Mr. Lv Xuezhi, born in 1977, holds a master's degree from China Europe International Business School. Hejoined the company in 2010 and has served as the director of the marketing center, the chief marketing officer, thegeneral manager of the South China region, and the assistant to the chairman. He is currently the vice president ofthe company and is in charge of the operation and management of the strategic development division, theruminant division and the Haixin division.Mr. Huang Zhijian, born in 1978, accountant, bachelor degree. He joined the company in 2004 and iscurrently the vice president of the company, responsible for the company's securities, investment and financingand mergers and acquisitions business, and the secretary of the board of directors.Serving in shareholder units?Applicable □ Not applicable
| Name of incumbent | Name of shareholder unit | Positions held in shareholder units | Term start date | Term end date | Whether to receive remuneration allowance in the shareholder unit |
| Xue Hua | Guangzhou Haihao Investment Co., Ltd | Director | September 27, 2006 | No | |
| Qian Xueqiao | Guangzhou Haihao Investment Co., Ltd | Supervisor | December 01, 2021 | No | |
| Description of the position in the | Not applicable. | ||||
shareholder unit
Serving in other units?Applicable □ Not applicable
| Name of incumbent | Other unit names | Positions held in other units | Term start date | Term end date | Whether to receive remuneration allowance in other units |
| Xue Hua | Guangdong Airport City Investment Co., Ltd | Director | January 21, 2015 | No | |
| Xue Hua | Guangzhou Huading Investment Holdings Co., Ltd | Supervisor | May 19, 2022 | No | |
| Xue Hua | Guangzhou Huayu Investment Co., Ltd | Director | December 14, 2021 | No | |
| Xu Yingzhuo | Guangdong Haihaowan Development Co., Ltd | Chairman | April 22, 2020 | No | |
| Xu Yingzhuo | Guangzhou Zhuoling Investment Development Co., Ltd | Executive Director | June 02, 2021 | No | |
| Xu Yingzhuo | Guangzhou Zhuoyi Investment Development Co., Ltd | Supervisor | June 4, 2021 | No | |
| Xu Yingzhuo | Guangzhou Zhuosheng Investment Holdings Co., Ltd | Executive Director | June 08, 2021 | No | |
| Qian Xueqiao | Guangzhou Huayu Investment Co., Ltd | Supervisor | December 14, 2021 | No | |
| Qian Xueqiao | Guangzhou Qingyuan Investment Co., Ltd | Executive Director | February 25, 2022 | No | |
| He Jianguo | Sun Yat-sen University | Professor | December 01, 1994 | Yes | |
| He Jianguo | Bainong Guochuang (Beijing) Technology Co., Ltd | Director | July 23, 2019 | No | |
| Liu Yunguo | Sun Yat-sen University | Professor | December 01, 1999 | Yes | |
| Liu Yunguo | Guangzhou Haige Communications Group Incorporated Co., | Independent director | December 01, 2022 | Yes | |
| Liu Yunguo | Guangzhou Shiyuan Electronic Technology Co., Ltd. | Independent director | January 19, 2024 | Yes | |
| Gao Zexia | Huazhong Agricultural University | Professor | December 31, 2017 | Yes | |
| Liu Guoxiang | Guangzhou Qingyuan Investment Co., Ltd | Supervisor | February 25, 2022 | No | |
| Yang Shaolin | Sun Yat-sen University | Master's Off-campus Tutor | June 05, 2016 | June 05, 2028 | Yes |
| Yang Shaolin | Guangdong University of Foreign Studies | Master Tutor | January 01, 2025 | January 01, 2030 | Yes |
| Yang Shaolin | Guangdong Association of Management Accountants | Vice President | October 01, 2021 | October 01, 2027 | No |
| Jiang Xiewu | Guangzhou Haishengyuan Investment Co., Ltd | Executive Director | January 27, 2022 | No | |
| Yang Jiantao | Wujiaqu Taikun Plant Protein Co., Ltd | Director | October 19, 2020 | No | |
| Yang Jiantao | Alar Ruiliheng Biological Protein Co., Ltd | Director | October 26, 2016 | No | |
| Huo Quanwen | Linyi Jiajun Management Consulting Co., Ltd | Executive Director, | April 26, 2020 | No |
| Name of incumbent | Other unit names | Positions held in other units | Term start date | Term end date | Whether to receive remuneration allowance in other units |
| General Manager | |||||
| Huo Quanwen | Suixian Fengtai Food Co., Ltd | Director | August 27, 2013 | No | |
| Description of employment in other units | Not applicable. | ||||
Penalties of the company's current and resigned directors, supervisors and senior executives in the past three yearsby securities regulatory agencies
□Applicable ? Not applicable
3. Remuneration of directors, supervisors and senior management
Decision-making procedures, basis for determination, and actual payment of remuneration for directors,supervisors and senior executivesThe company has formulated the "Remuneration Management System for Directors, Supervisors and SeniorManagers" in accordance with national laws and regulations and in light of its own actual conditions. As thehighest authority of the company, the general meeting of shareholders is responsible for reviewing and approvingthe implementation, change and termination of the remuneration system. The company has formulated the"Remuneration Plan for Directors and Senior Management" and "Supervisor's Allowance Plan": non-independentdirectors do not receive director allowances from the company; independent directors adopt an annual allowancesystem with an allowance standard of 180,000 yuan per year; senior management compensation consists of basiccompensation, risk performance annual bonus and other incentives, and senior management who also serve asdirectors shall be paid according to the salary standard of senior management; The supervisor's allowance is60,000 yuan per year, and he is also a supervisor in other positions of the company. Their salary is composed ofthe post salary and the supervisor's allowance.Remuneration of directors, supervisors and senior management of the company during the reporting period
Unit: ten thousand yuan
| Name | Sex | Age | Position | Employment status | Total pre-tax compensation received from the company | Whether to get paid from the company's affiliates |
| Xue Hua | Male | 55 | Chairman, President | Incumbent | 457.63 | |
| Xu Yingzhuo | Male | 57 | Vice Chairman | Incumbent | 0 | Yes |
| Cheng Qi | Male | 45 | Director, Executive Vice President | Incumbent | 190.51 |
| Qian Xueqiao | Male | 58 | Director, Vice President, Chief Engineer | Incumbent | 159.26 | |
| Gui Jianfang | Male | 69 | Independent director | Outgoing | 18 | |
| He Jianguo | Male | 63 | Independent director | Incumbent | 18 | |
| Liu Yunguo | Male | 59 | Independent director | Incumbent | 18 | |
| Shen Dong | Male | 47 | Supervisor | Incumbent | 200.63 | |
| Wang Hua | Male | 38 | Supervisor | Incumbent | 80.42 | |
| Mu Yongfang | Female | 36 | Supervisor | Incumbent | 50.56 | |
| Liu Guoxiang | Male | 56 | Vice-President | Incumbent | 162.92 | |
| Yang Shaolin | Male | 51 | Vice President, Chief Financial Officer | Incumbent | 425.81 | |
| Jiang Xiewu | Male | 57 | Vice-President | Incumbent | 235.3 | |
| Mi Guocheng | Male | 53 | Vice-President | Incumbent | 159.29 | |
| Chen Zhongzhu | Male | 55 | Vice-President | Incumbent | 134.24 | |
| Chen Mingzhong | Male | 60 | Vice-President | Incumbent | 68.14 | |
| Yang Jiantao | Male | 56 | Vice-President | Incumbent | 171.2 | |
| Wang Jing | Female | 46 | Vice-President | Incumbent | 215.81 | |
| Huo Quanwen | Male | 51 | Vice-President | Incumbent | 181.47 | |
| Zhang Guijun | Male | 52 | Vice-President | Incumbent | 101.82 | |
| Lv Xuezhi | Male | 48 | Vice-President | Incumbent | 97.59 | |
| Huang Zhijian | Male | 47 | Vice President, Secretary of the Board | Incumbent | 117.19 | |
| Total | -- | -- | -- | -- | 3,263.81 | -- |
Note: 1. The above table does not include the total operating profit sharing amount and special bonus of RMB95,242,700 accrued by the 14 vice presidents of the company in 2024. The above bonuses have been withheld anddistributed to personal income tax according to regulations.
2. Mr. Gui Jianfang will resign before the expiration of his term on January 9, 2025.
3. Mr. Huo Quanwen, Mr. Zhang Guijun and Mr. Lv Xuezhi were appointed as vice presidents of the company onFebruary 5, 2024. The above is the amount of remuneration during the reporting period.Other information
□Applicable ? Not applicable
VI. Directors' performance of duties during the reporting period
1. The situation of the board of directors during the reporting period
| Session | Date | Disclosure date | Meeting resolutions |
| The Seventeenth Meeting of the Sixth Board of Directors | February 05, 2024 | February 07, 2024 | For details, please refer to the "Announcement on Resolutions of the Seventeenth Meeting of the Sixth Board of Directors" published in "Securities Times", |
| Session | Date | Disclosure date | Meeting resolutions |
| "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No. 2024-004) | |||
| The Eighteenth Meeting of the Sixth Board of Directors | March 04, 2024 | March 05, 2024 | For details, please refer to the "Announcement on Resolutions of the Eighteenth Meeting of the Sixth Board of Directors" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-014) |
| The Nineteenth Meeting of the Sixth Board of Directors | April 19, 2024 | April 23, 2024 | For details, please refer to the "Announcement on Resolutions of the Nineteenth Meeting of the Sixth Board of Directors" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-025) |
| The twentieth meeting of the sixth board of directors | July 26, 2024 | July 30, 2024 | For details, please refer to the "2024 Semi-Annual Report Summary" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No. 2024-056) |
| The twenty-first meeting of the sixth board of directors | October 17, 2024 | October 19, 2024 | For details, please refer to the "Announcement on Resolutions of the 21st Meeting of the Sixth Board of Directors" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-062) |
| The Twenty-second Meeting of the Sixth Board of Directors | December 06, 2024 | December 09, 2024 | For details, please refer to the "Announcement on Resolutions of the Twenty-second Meeting of the Sixth Board of Directors" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-072) |
| The twenty-third meeting of the sixth board of directors | December 24, 2024 | December 25, 2024 | For details, please refer to the "Announcement on Resolutions of the 23rd Meeting of the Sixth Board of Directors" published in "Securities Times", "China Securities Journal", "Shanghai Securities News", "Securities Daily" and http://www.cninfo.com.cn (Announcement No.: 2024-075) |
2. Directors' attendance at the board of directors and general meeting of shareholders
| Director's name | The number of times to participate in the board of directors during the reporting period | On-site attendance of the board of directors | Participation in the Board of Directors by Correspondence | Number of entrusted attendance at the board of directors | Number of absences from the board of directors | Whether to fail to attend board meetings in person for two consecutive times | Number of attendance at general meetings |
| Xue Hua | 7 | 7 | 0 | 0 | 0 | No | 2 |
| Xu Yingzhuo | 7 | 3 | 4 | 0 | 0 | No | 2 |
| Cheng Qi | 7 | 6 | 1 | 0 | 0 | No | 1 |
| Qian Xueqiao | 7 | 6 | 1 | 0 | 0 | No | 1 |
| Gui Jianfang | 7 | 4 | 3 | 0 | 0 | No | 2 |
| He Jianguo | 7 | 4 | 3 | 0 | 0 | No | 2 |
| Liu Yunguo | 7 | 3 | 4 | 0 | 0 | No | 2 |
Explanation of failing to attend the board of directors in person for two consecutive timesDuring the reporting period, none of the directors failed to attend the board of directors in person for twoconsecutive times.
3. Directors' objections to the company's related matters
Whether the directors raise objections to the company's related matters
□ Yes ? No
During the reporting period, the directors did not raise any objections to the company's relevant matters.
4. Other explanations for directors to perform their duties
Whether the directors' recommendations on the company have been adopted?Yes □ NoDirectors' statement on whether the company's proposal was adopted or not adoptedDuring the reporting period, all directors of the company carried out their work in strict accordance with the"Company Law", "Shenzhen Stock Exchange Stock Listing Rules" and other laws and regulations, as well as the"Articles of Association", "Rules of Procedures of the General Meeting of Shareholders", "Rules of Procedures ofthe Board of Directors" and other company regulations. They were faithful, diligent and responsible. According tothe actual situation of the company, they put forward relevant opinions on the company's major governance andbusiness decisions. After full communication and discussion, they reached a consensus. And resolutely superviseand promote the implementation of the resolutions of the board of directors, ensure that the decision-making isscientific, timely and efficient, and safeguard the legitimate rights and interests of the company and allshareholders.
VII. The status of the special committees under the board of directors during the reportingperiod
| Committee name | Membership | Number of meetings held | Date | Meeting content | Important comments and suggestions | Other performance of duties | Details of the objection (if any) |
| Audit Committee | Liu Yunguo, He Jianguo, Gui Jianfang | 6 | April 19, 2024 | 2023 annual periodic report on financial information, internal control evaluation report, impairment provision | - | No | No |
| April 19, 2024 | 2024 First Quarter Financial Report and Internal Audit Report | - | No | No | |||
| July 26, 2024 | 2024 Semi-annual Financial Report and Internal Audit Report | - | No | No | |||
| October 16, 2024 | 2024 Third Quarter Financial Report and Internal Audit Report, Hiring 2024 Audit Institution | - | No | No | |||
| December 24, 2024 | 2024 Pre-Audit Communication Meeting | Discuss the 2024 annual audit plan and key audit matters to be performed in the review process | No | No | |||
| December 24, 2024 | 2025 Internal Audit Plan, 2024 Internal Audit Work Summary | Discuss the key directions of internal audit in 2025 and further promote the digitization and electronicization of audits | No | No | |||
| Nomination Committee | He Jianguo, Liu Yunguo, Cheng Qi | 2 | January 29, 2024 | Sixth Senior Management Candidate | - | No | No |
| December 19, 2024 | Candidates for the Sixth Independent Director | - | No | No | |||
| Remuneration and Appraisal Committee | Liu Yunguo, He Jianguo, Qian Xueqiao | 2 | January 30, 2024 | 2024 Employee Stock Ownership Plan; 2024 Draft Stock Option Incentive Plan | - | No | No |
| April 19, | 2023 Employee | - | No | No |
| Committee name | Membership | Number of meetings held | Date | Meeting content | Important comments and suggestions | Other performance of duties | Details of the objection (if any) |
| 2024 | Stock Ownership Plan performance appraisal does not meet the target; 2021 stock options do not meet the exercise conditions and are cancelled; 2024 stock option incentive plan grants stock options | ||||||
| Strategy Committee | Xue Hua, Xu Yingzhuo, Gui Jianfang | 3 | February 02, 2024 | 2024 Hedging Program | - | No | No |
| September 02, 2024 | Established Change Management Committee, IBM Management Consulting Project | - | No | No | |||
| October 12, 2024 | 2025 Hedging Program | - | No | No |
VIII. Work of the Board of Supervisors
Whether the company has risks during the supervision activities of the board of supervisors during the reportingperiod
□ Yes ? No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
IX. Company employees
1. Number of employees, professional composition and education level
| Number of employees of the parent company at the end of the reporting period (person) | 2,628 |
| Number of employees in major subsidiaries at the end of the reporting period (persons) | 39,193 |
| Total number of employees at the end of the reporting period (person) | 41,821 |
| The total number of salaried employees in the current period (person) | 41,821 |
| The number of retired employees (persons) to be borne by the parent company and its main subsidiaries | 0 |
| Professional composition | |
| Professional composition category | Professional composition (person) |
| Production staff | 19,797 |
| Sales and service staff | 11,715 |
| Technician | 3,860 |
| Financial officer | 1,923 |
| Administrative staff | 3,503 |
| Purchasing staff | 1,023 |
| Total | 41,821 |
| Education level | |
| Education level category | Quantity (persons) |
| PhD | 154 |
| Master | 2,135 |
| Undergraduate | 9,498 |
| College | 8,600 |
| High school, technical secondary school and below | 21,434 |
| Total | 41,821 |
2. Salary policy
On the basis of strictly abiding by the "Labor Law of the People's Republic of China", "Labor Contract Lawof the People's Republic of China" and other relevant national and local laws and regulations, departmental rulesand normative documents, combined with the characteristics of the industry and the company's operation, andtaking the overall development strategy and human resource management planning goals as the starting point, thecompany has formulated the "Salary Management System", "Performance Management System" and othersystems, forming a scientific and reasonable salary assessment and performance incentive management system,Ensure that employees receive proper labor compensation, fully mobilize their enthusiasm, initiative andcreativity, and encourage employees to make positive contributions to the development of the company.The principles of the company's remuneration policy are: adhere to the principle of combining distributionaccording to work with responsibilities, rights and benefits; implement the principle of linking income level withthe company's benefits and work objectives; implement the principle of combining personal remuneration with thecompany's long-term interests to ensure the continuous and steady growth of the main business, prevent short-term behavior, and promote the company's continuous operation and development; implement the principle oflinking salary income with assessment, reward the good and punish the bad, there are rewards and punishments,and both incentives and constraints are emphasized; Comprehensively consider the salary level of the region andindustry, and establish a moderately competitive salary system.
At the same time, in order to link work performance with salary and personal interests with team interests,improve employees' sense of team and responsibility, and make employees' efforts consistent with the company'sgoals, the company continuously reforms and improves the salary, benefits and insurance systems to create bettersocial and economic benefits.
3. Training plan
The company has always placed talent training in an important position, knowing that the growth anddevelopment of employees is the key driving force and core resource to promote the company's sustainableprosperity. Haida College, as the company's talent training functional department, always follows the strategicorientation of the group, closely meets the business needs, upholds the core value of "all efforts are only for you togrow", and is committed to solving the core problems in the development of the organization with the principle ofcombining elite training and inclusive education. Through the combination of online and offline teaching mode,we will continue to explore and optimize new modes of talent training.
During the reporting period, Haida College continued to build a learning organization centered on creatingvalue for customers, promoted key projects such as the IDP core cadre training program, the financial directorclass, and MDP outstanding managers, and cultivated a group of management cadres with cultural strategic vision,business operation ability and leadership; At the same time, the cultural education of campus recruitment andsocial recruitment of new employees was continuously strengthened and standardized; The training of lecturersand mentors goes hand in hand, and has cultivated a group of lecturers and mentors with strong professionalability and rich experience for the group. In terms of overseas talent training, through carefully crafted talenttraining programs, it has successfully cultivated a group of localized professional backbones and cadre teams,which effectively promoted cross-cultural communication and integration. The resources of the group's onlinelearning platform "Haiwei" are becoming more and more abundant, which provides strong support foraccelerating the formation of the group's learning ecology, a strong talent training atmosphere has been formedwithin the group, the talent training resource system has been improved day by day, the learning path map of eachprofessional center has been iteratively optimized, and the training system of each business line has graduallymatured, which has become the work highlight of HR and business managers, It has laid a solid foundation for thecontinuous enrichment of the learning resource library and the construction of the learning ecology of HaidaUniversity.
4. Labor outsourcing
□Applicable ? Not applicable
X .The company's profit distribution and capitalization of capital reserves
During the reporting period, the profit distribution policy, especially the formulation, implementation oradjustment of the cash dividend policy?Applicable □ Not applicable
The 2023 Annual General Meeting of Shareholders held on May 16, 2024 reviewed and approved the"Proposal on the Profit Distribution Plan for 2023". The distribution plan is based on the "total share capital of therepurchased shares deducted from the share registration date when the distribution plan is implemented in thefuture (that is, the number of shares that can participate in the distribution on the share registration date when the
distribution plan is implemented in the future)", and a cash dividend of RMB 5.00 (including tax) is distributed forevery 10 shares. The total amount of cash to be distributed shall not exceed the profit available for distribution toshareholders of the parent company as of December 31, 2023, and the remaining undistributed profit shall becarried forward to subsequent years. On July 4, 2024, the implementation of the company's equity distribution wascompleted.During the reporting period, the company strictly implemented the profit distribution policies such as theArticles of Association and the Dividend Return Plan for the Next Three Years (2022-2024).
| Special description of cash dividend policy | |
| Whether it complies with the provisions of the company's articles of association or the requirements of the resolutions of the general meeting of shareholders: | Yes |
| Whether the dividend standard and ratio are clear and clear: | Yes |
| Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether independent directors perform their duties and play their due role: | Yes |
| If the company does not distribute cash dividends, it shall disclose the specific reasons and the measures it plans to take in the next step to enhance the level of investor returns: | Not applicable |
| Whether small and medium shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected: | Yes |
| If the cash dividend policy is adjusted or changed, whether the conditions and procedures are compliant and transparent: | Not applicable |
The company made a profit during the reporting period and the parent company's profit available for distributionto shareholders was positive, but no cash dividend distribution plan was proposed
□Applicable ? Not applicable
Profit distribution and capitalization of capital reserve during the reporting period?Applicable □ Not applicable
| Bonus shares for every 10 shares (shares) | 0 |
| Dividend per 10 shares (yuan) (tax included) | 11.00 |
| The share capital base of the distribution plan (shares) | The total share capital on the record date of the future implementation of the distribution plan minus the repurchased shares |
| Cash dividend amount (yuan) (tax included) | 1,830,054,347.00 |
| Amount of cash dividends in other ways (such as repurchasing shares) (yuan) | 0.00 |
| Total cash dividends (including other methods) (yuan) | 1,830,054,347.00 |
| Distributable profit (yuan) | 5,344,850,272.42 |
| The ratio of total cash dividends (including other methods) to total profit distribution | 100% |
| The cash dividend distribution | |
| If the company's development stage is in the growth period and has major capital expenditure arrangements, when the profit distribution is carried out, the proportion of cash dividends in this profit distribution should be at least 20% |
| Detailed description of the plan for profit distribution or capital reserve transfer |
| According to the audit report issued by Grant Thornton Zhitong Certified Public Accountants LLP, the net profit attributable to shareholders of the listed company in the company's 2024 consolidated statement is 4,503,995,518.39 yuan, and the net profit of the parent company is 1,418,097,072.61 yuan. According to the relevant provisions of the Company Law and the Articles of Association, the accumulated amount of the company's statutory surplus reserve has reached more than 50% of the company's registered capital. In 2024, the company will no longer withdraw the statutory surplus reserve or withdraw the discretionary reserve. As of December 31, 2024, The profit available for distribution to shareholders in the consolidated statement is RMB 16,198,667,745.26, and the profit available for distribution to shareholders of the parent company is RMB 5,344,850,272.42. According to the "Shenzhen Stock Exchange Stock Listing Rules", the profit distribution of a listed company shall be based on the profit available for distribution in the parent company's statement. At the same time, in order to avoid over-distribution, the company should determine the specific profit distribution ratio based on the principle of the lower of the profit available for distribution in the consolidated statement and the parent company's statement. Therefore, the company's 2024 profit distribution plan is based on the parent company's profit available for distribution to shareholders of RMB 5,344,850,272.42 on December 31, 2024. Based on the company's operations in 2024, combined with the company's business scale and future development needs, as well as the reasonable demands of investors and continuous return to shareholders, the company formulated the 2024 profit distribution plan (hereinafter referred to as the "distribution plan "): the company plans to use" the total share capital of the repurchased shares on the record date when the distribution plan is implemented in the future (that is, the number of shares that can participate in the distribution on the record date when the distribution plan is implemented in the future) "as the base, The cash dividend of RMB 11.00 (including tax) for every 10 shares, the total proposed cash dividend shall not exceed the profit available for distribution to shareholders of the parent company on December 31, 2024, and the remaining undistributed profit shall be carried forward to subsequent years. In 2024, the company did not implement interim dividends. Based on the calculation of the total share capital of the company after deducting the repurchased shares as of the disclosure date of this distribution plan, the company expects to distribute a cumulative cash dividend of 1,830,054,347.00 yuan (including tax) in 2024, accounting for 40.63% of the net profit attributable to shareholders of the listed company in the consolidated statement of this year. The final distribution amount is calculated based on the actual result of "deducting the total share capital of the repurchased shares on the equity registration date when the distribution plan is implemented in the future (that is, the number of shares that can participate in the distribution on the equity registration date when the distribution plan is implemented in the future)". During the period from the disclosure of this distribution plan to its implementation, the company's total share capital will change due to share repurchase, equity incentive exercise and other reasons, and will be adjusted accordingly in accordance with the principle of maintaining the existing distribution ratio and adjusting the total distribution. |
XI. Implementation of the company's equity incentive plan, employee stock ownership plan orother employee incentive measures?Applicable □ Not applicable
1. Equity incentives
(1) 2021 Stock Option Incentive Plan
On April 19, 2024, the company held the nineteenth meeting of the sixth board of directors and the fifteenthmeeting of the sixth board of supervisors, and reviewed and approved the "Proposal on the first grant of the thirdexercise period of the company's 2021 stock option incentive plan and the cancellation of the corresponding stockoptions for the second exercise period" and the "Proposal on the cancellation of some stock options of thecompany's 2021 stock option incentive plan". It was determined that the first grant of the third exercise period andthe reserved grant of the second exercise period of the company's 2021 stock option incentive plan did not meetthe exercise conditions, and 9,657,500 corresponding stock options were agreed to be cancelled; 1,084,080 stockoptions corresponding to the 275 incentive objects of the 2021 stock option incentive plan were agreed to becancelled. The proposal has been reviewed and approved by the second meeting of the Remuneration and
Appraisal Committee of the sixth board of directors of the company in 2024, and the board of supervisors of thecompany issued an audit opinion. After review and confirmation by China Securities Depository and Clearing Co.,Ltd. Shenzhen Branch, on May 23, 2024, the company completed the above-mentioned first grant of the thirdexercise period and the reserved grant of the second exercise period of stock options and some incentive objectsthat have been granted but have not met the exercise conditions. The cancellation of stock options.
(2) 2024 Stock Option Incentive Plan
On February 5, 2024, the company held the seventeenth meeting of the sixth board of directors and thefourteenth meeting of the sixth board of supervisors. Deliberated and approved the "Proposal on the 2024 StockOption Incentive Plan of Guangdong Haid Group Co., Ltd. (Draft)" and its summary, "The Proposal on the"Administrative Measures for the Implementation of the 2024 Stock Option Incentive Plan of Guangdong HaidGroup Co., Ltd. "," The Proposal on Requesting the General Meeting of Shareholders to Authorize the Board ofDirectors to Handle the Company's 2024 Stock Option Incentive Plan "," The Proposal on Verifying theCompany's 2024 Stock Option Incentive Plan "(draft Proposal) Proposal on the List of Incentive Objects "and"Proposal on Making Mr. Yang Jiantao, a Relative of the Chairman, as the Object of the 2024 Stock OptionIncentive Plan and the 2024 Employee Stock Ownership Plan ".On March 15, 2024, the board of supervisors of the company issued a verification opinion on theannouncement of the list of incentive objects and positions of the 2024 stock option incentive plan, combined withthe verification results of the board of supervisors, and held that the incentive objects included in the 2024 stockoption incentive plan meet the conditions stipulated by applicable laws and meet the scope and conditions ofincentive objects stipulated in the 2024 stock option incentive plan, It is legal and effective as the incentive objectof the 2024 stock option incentive plan.
On March 20, 2024, the company held the first extraordinary general meeting of shareholders in 2024,Deliberated and approved the "Proposal on the 2024 Stock Option Incentive Plan of Guangdong Haid Group Co.,Ltd. (Draft)" and its summary, "The Proposal on the" Administrative Measures for the Implementation of the 2024Stock Option Incentive Plan of Guangdong Haid Group Co., Ltd. "," The Proposal on Requesting the GeneralMeeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to the Company's 2024Stock Option Incentive Plan "and" The Proposal on Taking Mr. Yang Jiantao, a Relative of the Chairman of theBoard of Directors, as the 2024 Proposal for Stock Option Incentive Plan and 2024 Employee Stock OwnershipPlan Objects.
On April 19, 2024, according to the authorization of the company's first extraordinary general meeting ofshareholders in 2024, the company held the nineteenth meeting of the sixth board of directors and the fifteenthmeeting of the sixth board of supervisors, and reviewed and approved the "Proposal on Adjusting the List ofIncentive Objects Granted by the Company's 2024 Stock Option Incentive Plan and the" Proposal on GrantingStock Options to Incentive Objects of the Company's 2024 Stock Option Incentive Plan ", The list of incentiveobjects granted by this incentive plan and the number of rights granted have been adjusted. At the same time, it isdetermined that the conditions for granting this incentive plan have been fulfilled. The grant date is April 19, 2024,and 32,382,180 stock options have been granted to 3,655 eligible incentive objects. The proposal has beenreviewed and approved by the second meeting of the Remuneration and Appraisal Committee of the sixth board
of directors of the company in 2024, and the board of supervisors of the company issued an audit opinion. Afterreview and confirmation by China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, the companyhas completed the grant registration of the 2024 stock option incentive plan on May 9, 2024.
(3) Accounting treatment of equity incentives and its impact on company performanceAccording to the relevant provisions of "Accounting Standards for Business Enterprises No. 11 — SharePayment", the company will revise the number of stock options expected to be exercised on each balance sheetdate of the waiting period based on the latest obtained follow-up information such as the change in the number ofexercisers and the completion of performance indicators, and the services obtained in the current period will beincluded in the relevant costs or expenses and capital reserve according to the fair value on the date of grant of thestock options.
The implementation of the above-mentioned equity incentive plan will not have a significant impact on thecompany's financial position and operating results during the reporting period and in the future.Equity incentives received by directors and senior managers of the company?Applicable □ Not applicable
Unit: share
| Name | Position | Number of stock options held at the beginning of the year | Number of newly granted stock options during the reporting period | Number of exercisable shares during the reporting period | Number of shares exercised during the reporting period | The number of shares exercised during the reporting period and the exercise price (yuan/share) | Number of stock options held at the end of the period | Market price at the end of the reporting period (yuan/share) | Number of restricted shares held at the beginning of the period | The number of unlocked shares in the current period | Number of newly granted restricted shares during the reporting period | Grant price of restricted stock (yuan/share) | Number of restricted shares held at the end of the period |
| Cheng Qi | Director, Executive Vice President | 60,000.00 | 22,000.00 | 62,000.00 | 49.05 | ||||||||
| Qian Xueqiao | Director, Vice Presiden | 54,000.00 | 22,000.00 | 58,000.00 | 49.05 |
| t, Chief Engineer | |||||||||||||
| Liu Guoxiang | Vice-President | 48,000.00 | 22,000.00 | 54,000.00 | 49.05 | ||||||||
| Yang Shaolin | Vice President, Chief Financial Officer | 54,000.00 | 22,000.00 | 58,000.00 | 49.05 | ||||||||
| Jiang Xiewu | Vice-President | 48,000.00 | 22,000.00 | 54,000.00 | 49.05 | ||||||||
| Mi Guocheng | Vice-President | 48,000.00 | 22,000.00 | 54,000.00 | 49.05 | ||||||||
| Chen Zhongzhu | Vice-President | 60,000.00 | 22,000.00 | 62,000.00 | 49.05 | ||||||||
| Yang Jiantao | Vice-President | 0.00 | 22,000.00 | 22,000.00 | 49.05 | ||||||||
| Wang Jing | Vice-President | 42,000.00 | 22,000.00 | 50,000.00 | 49.05 | ||||||||
| Huo Quanwen | Vice-President | 36,000.00 | 22,000.00 | 46,000.00 | 49.05 | ||||||||
| Zhang Guijun | Vice-President | 42,000.00 | 22,000.00 | 50,000.00 | 49.05 | ||||||||
| Lv Xuezhi | Vice-President | 42,000.00 | 22,000.00 | 50,000.00 | 49.05 | ||||||||
| Huang Zhijian | Vice President, Secretary of the Board | 54,000.00 | 22,000.00 | 58,000.00 | 49.05 | ||||||||
| Total | -- | 588,000.00 | 286,000.00 | -- | 678,000.00 | -- | -- | ||||||
| Remarks (if any) | 1. Mr. Huo Quanwen, Mr. Zhang Guijun and Mr. Lv Xuezhi were appointed by the board of directors as vice presidents of the company on February 5, 2024. The number of stock options held by them before their appointment has been included in the report at the beginning of the reporting period. 2. During the reporting period, the company held the nineteenth meeting of the sixth board of directors and the fifteenth meeting of the sixth board of supervisors, reviewed and approved the "Proposal on the Company's 2021 Stock Option Incentive Plan for the First Grant of the Third Exercise Period and the Reserved Grant of the Second Exercise Period Does Not Meet the Exercise Conditions and Cancellation of the Corresponding Stock Options", and agreed that the Company will cancel the first grant of stock options and the reserved grant of stock options that have been granted to the incentive object but did not meet the exercise conditions, Among them, a total of 196,000.00 stock options for directors and senior executives were cancelled, and the cancellation was completed on May 23, 2024. | ||||||||||||
Evaluation mechanism and incentives for senior managers
The company has established a mechanism for the selection, evaluation, incentive and restraint of seniormanagement personnel. All senior management personnel of the company are appointed by the board of directors,responsible to the board of directors, and undertake the operating indicators issued by the board of directors. Theboard of directors has a remuneration and assessment committee responsible for formulating and supervising theremuneration and assessment system for senior management to ensure its rationality and fairness. In order toensure that the behavior of executives is consistent with the company's long-term interests, and improve thecompany's performance. The following evaluation mechanism has been established: According to the company'sstrategic goals, key performance indicators such as financial (such as revenue, profit, ROA) and non-financialindicators (such as market share, customer satisfaction, and employee growth) are set, and the performance ofexecutives is comprehensively evaluated from the four dimensions of finance, customers, internal processes,learning and growth. And through the group human resources committee to collectively evaluate the performanceof executives, to ensure the combination of long-term and short-term goals, not only focusing on short-termperformance, but also evaluating the realization of long-term strategic goals. The design of executive incentivemechanism is diversified. The compensation structure includes fixed compensation, annual performance bonus,growth sharing, long-term equity option incentives, etc. The compensation incentives are closely linked withperformance appraisal, and the annual bonus, growth sharing, and long-term incentives are all linked toperformance goals and achievement. The company also pays attention to non-cash rewards such as honors, careerdevelopment opportunities and other incentives to enhance the sense of belonging and achievement of executives.In summary, during the reporting period, executive assessment and incentives took into account both short-termperformance and long-term development of the company, and ensured that the interests of executives, thecompany and shareholders were aligned through a reasonable and diversified salary structure and equity optionincentives.
2. Implementation of the Employee Stock Ownership Plan
?Applicable □ Not applicableAll effective employee stock ownership plans during the reporting period
(1) Core employee stock ownership plan
During the reporting period, 1,194,582 shares of the company held by the core employee stock ownershipplan were tradable. As of the end of the reporting period, the company's shares held by the core employee stockownership plan have been sold through centralized bidding. According to the regulations, the core employee stockownership plan has been implemented and terminated early.
(2) 2023 Employee Stock Ownership Plan
On April 19, 2024, the company held the nineteenth meeting of the sixth board of directors, and reviewedand approved the "Proposal on the failure to reach the performance evaluation indicators of the company's 2023employee stock ownership plan". The proposal has been reviewed and approved by the second meeting of theremuneration and evaluation committee of the sixth board of directors in 2024, confirming that the company-levelperformance evaluation indicators of the company's 2023 employee stock ownership plan have not been reached.
On September 7, 2024, the lock-up period of the 2023 ESOP will expire, and the 10,272,108 shares of thecompany held by it will be tradable. As of the end of the reporting period, the company's shares held by the 2023ESOP have been sold through centralized bidding. According to the regulations, the 2023 ESOP has beenimplemented and terminated early.
(3) 2024 Employee Stock Ownership Plan
On February 5, 2024, the company held the seventeenth meeting of the sixth board of directors and thefourteenth meeting of the sixth board of supervisors. Deliberated and approved the "Proposal on the 2024Employee Stock Ownership Plan of Guangdong Haid Group Co., Ltd. (Draft)" and its summary, "The Proposal onthe Management Measures for the 2024 Employee Stock Ownership Plan of Guangdong Haid Group Co., Ltd.","The Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to HandleMatters Related to the 2024 Employee Stock Ownership Plan" and "The Proposal on Using Mr. Yang Jiantao, arelative of the chairman of the board of directors, as the 2024 stock option incentive plan and 202 Proposal for theObject of the Four-Year Employee Stock Ownership Plan. Agree to the company to implement the 2024 employeestock ownership plan.
On March 20, 2024, the company held the first extraordinary general meeting of shareholders in 2024,reviewed and approved the above-mentioned relevant proposals on the 2024 employee stock ownership plan,agreed to implement the 2024 employee stock ownership plan, and at the same time, the shareholders meetingauthorized the board of directors to handle matters related to the 2024 employee stock ownership plan.
On May 6, 2024, the company received the "Securities Transfer Registration Confirmation" issued by theShenzhen Branch of China Securities Depository and Clearing Co., Ltd., and the 6,715,461 shares of the companyheld in the company's special securities account for repurchase have been transferred to the special securitiesaccount of "Guangdong Haid Group Co., Ltd. 2024 Employee Stock Ownership Plan" opened by the company onApril 30, 2024 in a non-trading manner. As of the end of the reporting period, the 2024 ESOP is still in the lock-upperiod.
The implementation of the aforementioned employee stock ownership plan will not have a significant impacton the company's financial position and operating results during the reporting period and in the future.
| Scope of employees | Number of employees | Total number of shares held (shares) | Changes | As a percentage of the total share capital of listed companies | Sources of funds for the implementation of the plan |
| The "Core Employee Stock Ownership Plan" is aimed at the core personnel of the company who play an important role in the company's overall performance and medium and long-term development | No more than 30 people | 1,194,582 | No | 0.07% | The special fund for the shareholding plan provided by the company |
| Participants of the 2023 Employee Stock Ownership Plan are directors, supervisors, | No more than 3,700 | 10,272,108 | No | 0.62% | Employees' legitimate income, self-financing or other means of obtaining funds permitted by |
| senior management and other core personnel | applicable law | ||||
| Participants of the 2024 Employee Stock Ownership Plan are directors, supervisors, senior management and other core personnel | No more than 750 | 6,715,461 | No | 0.40% | Employees' legitimate income, self-financing or other means of obtaining funds permitted by applicable law |
Shareholding of directors, supervisors and senior executives in the employee stock ownership plan during thereporting period
| Name | Position | Number of shares held at the beginning of the reporting period (shares) | Number of shares held at the end of the reporting period (shares) | As a percentage of the total share capital of listed companies |
| Cheng Qi | Director, Executive Vice President | 1,946,798.00 | 960,000 | 0.06% |
| Qian Xueqiao | Director, Vice President, Chief Engineer | |||
| Shen Dong | Supervisor | |||
| Wang Hua | Supervisor | |||
| Mu Yongfang | Supervisor | |||
| Liu Guoxiang | Vice-President | |||
| Yang Shaolin | Vice President, Chief Financial Officer | |||
| Jiang Xiewu | Vice-President | |||
| Mi Guocheng | Vice-President | |||
| Chen Zhongzhu | Vice-President | |||
| Yang Jiantao | Vice-President | |||
| Wang Jing | Vice-President | |||
| Huo Quanwen[Note] | Vice-President | |||
| Zhang Guijun [Note] | Vice-President | |||
| Lv Xuezhi [Note] | Vice-President | |||
| Huang Zhijian | Vice President, Secretary of the Board |
Note: Mr. Huo Quanwen, Mr. Zhang Guijun and Mr. Lv Xuezhi were appointed as vice presidents of the companyby the board of directors on February 5, 2024. The number of shares held at the beginning of the reporting periodincludes their shareholdings in the employee stock ownership plan before taking office.Changes in asset management institutions during the reporting period
□Applicable ? Not applicable
Changes in equity during the reporting period due to the disposal of shares by holders, etc?Applicable □ Not applicable
As of November 12, 2024, all 10,272,108 company shares held by the 2023 ESOP have been sold throughcentralized bidding, accounting for 0.6174% of the company's current total share capital; all 1,194,582 companyshares held by the core ESOP have been sold through centralized bidding, accounting for 0.0718% of thecompany's current total share capital. For details, please refer to the "Announcement on the Completion of theSale and Early Termination of the Company's Employee Stock Ownership Plan" (Announcement No.: 2024-071)disclosed in the information disclosure media designated by the company on November 13, 2024.Exercise of shareholder rights during the reporting periodNoOther relevant circumstances and explanations of the employee stock ownership plan during the reporting period
□Applicable ? Not applicable
Changes in the membership of the Employee Stock Ownership Plan Management Committee
□Applicable ? Not applicable
The financial impact of the employee stock ownership plan on listed companies during the reporting period andrelated accounting treatments?Applicable □ Not applicable
The accounting treatment of the company's employee stock ownership plan is in accordance with the"Accounting Standards for Business Enterprises No. 11 — Share-based Payment": For equity-settled share-basedpayment in exchange for employee services after completing the service within the waiting period or meeting thespecified performance conditions, the fair value of the equity instrument on the grant date shall be based on thebest estimate of the number of exercisable equity instruments on each balance sheet date during the waiting period,The services obtained in the current period are included in the relevant costs or expenses and capital reserves. Theamortization of the expenses of the employee stock ownership plan implemented by the company in the currentyear was 28.672 million yuan, which was included in the relevant expenses and capital reserve.
Termination of employee stock ownership plans during the reporting period?Applicable □ Not applicable
During the reporting period, all the underlying stocks held by the company's 2023 employee stock ownershipplan and core employee stock ownership plan have been sold. According to the China Securities RegulatoryCommission's "Guiding Opinions on the Pilot Implementation of Employee Stock Ownership Plans by ListedCompanies", "Shenzhen Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 1 — NormativeOperation of Listed Companies on the Main Board" and other relevant regulations, the company's 2023 employeestock ownership plan and core employee stock ownership plan have been implemented and terminated early.Other instructions:
No.
3. Other employee incentives
□Applicable ? Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the "Company Law", "Securities Law", "Basic Norms of Enterprise Internal Control","Shenzhen Stock Exchange Stock Listing Rules" and other laws and regulations, the company has established,improved and effectively implemented internal control, reasonably ensured the legal compliance of operation andmanagement, asset safety, authenticity and integrity of financial reports and related information, and improvedoperating efficiency and effectiveness. The company revised, supplemented and improved the daily operation andmanagement regulations in a timely manner, and the internal control operation mechanism was effective, whichachieved the expected goals of internal control, protected the interests of the company and all shareholders, andlaid a good institutional foundation for the healthy and rapid development of the company. The Company's 2024Internal Control Self-evaluation Report comprehensively, truthfully and accurately reflected the actual situation ofthe Company's internal control. During the reporting period, the Company had no major deficiencies or majordeficiencies in internal control.
2. Details of major deficiencies in internal control discovered during the reporting period
□ Yes ? No
XIII. Management and control of subsidiaries during the reporting period
| Company name | Integration plan | Integration progress | Problems encountered in integration | Solutions taken | Resolution progress | Follow-up resolution plan |
| Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
| Disclosure date of the full text of the internal control evaluation report | April 22, 2025 |
| Internal Control Evaluation Report Full Text Disclosure Index | Juchao Information Network (www.cninfo.com.cn) |
| The proportion of the total assets of the units included in the evaluation scope to the total assets of the company's consolidated financial statements | 100.00% |
| The proportion of the operating income | 100.00% |
| of the unit included in the evaluation scope to the operating income of the company's consolidated financial statements | ||
| Defect identification standard | ||
| Category | Financial report | Non-financial reporting |
| Qualitative criteria | For details, please refer to the "2024 Internal Control Self-evaluation Report" disclosed on the same day | For details, please refer to the "2024 Internal Control Self-evaluation Report" disclosed on the same day |
| Quantitative standard | For details, please refer to the "2024 Internal Control Self-evaluation Report" disclosed on the same day | For details, please refer to the "2024 Internal Control Self-evaluation Report" disclosed on the same day |
| Number of material deficiencies in financial reporting (pieces) | 0 | |
| Number of material deficiencies in non-financial reporting (pieces) | 0 | |
| Number of significant deficiencies in financial reporting (a) | 0 | |
| Number of significant deficiencies in non-financial reporting (a) | 0 | |
2. Internal control audit report
?Applicable □ Not applicable
| Deliberation paragraph in the internal control audit report | |
| On December 31, 2024, the Company maintained effective internal control over financial reporting in all material aspects in accordance with the Basic Norms for Enterprise Internal Control and relevant regulations. | |
| Disclosure of internal control audit reports | Disclose |
| Disclosure date of the full text of the internal control audit report | April 22, 2025 |
| Internal Control Audit Report Full Text Disclosure Index | Juchao Information Network (www.cninfo.com.cn) |
| Internal control audit report opinion type | Standard unqualified opinion |
| Whether there are material deficiencies in non-financial reporting | No |
Whether the accounting firm has issued a non-standard opinion on the internal control audit report
□ Yes ? No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation reportof the board of directors?Yes □No
XV. The rectification of self-examination problems in the special action of listed companygovernance
Not applicable.
Section V Environmental and Social ResponsibilityI. Major environmental issuesWhether the listed company and its subsidiaries belong to the key pollutant discharge units announced by theenvironmental protection department?Yes □NoEnvironmental protection related policies and industry standardsStrictly abide by the Environmental Protection Law of the People's Republic of China, the Water PollutionPrevention and Control Law of the People's Republic of China, the Air Pollution Prevention and Control Law ofthe People's Republic of China, the Noise Pollution Prevention and Control Law of the People's Republic of China,the Solid Waste Pollution Prevention and Control Law of the People's Republic of China, and the Boiler AirPollutant Emission Standard, the Comprehensive Air Pollutant Emission Standard, the Odor Pollutant EmissionStandard, the Unorganized Emission Control Standard of Volatile Organic Compounds, and the Meat ProcessingIndustry Water Pollution Emission Standards, etc., including various laws, regulations, policies and industrystandards.Environmental protection administrative licenseIn strict accordance with the requirements of environmental protection laws and regulations, theenvironmental impact report is prepared before the project is implemented, and submitted to the environmentalprotection department for approval. After the approval is obtained, the project construction will be carried out.During the construction period, the construction will be carried out in strict accordance with the EIA requirements,and the project will be completed and accepted according to the EIA, and the pollutant discharge license has beenobtained.Industry emission standards and the specific situation of pollutant discharge involved in production and operationactivities
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of discharge outlets | Emission Concentration/Intensity | Implemented pollutant discharge standards | Total emissions | Approved total emissions | Excessive emissions |
| Sichuan Hellinger Biopharmaceutical Co., Ltd | Waste gas, waste water | Exhaust gas: dioxygen Sulfur; Nitrogen and Oxygen | Discharge after treatment | Crippled Gas ：9 Individual Equity; | Boiler smoke Chimney; rice Tang Yan Chimne | Ammonia nitrogen: 25 mg/L; chemical oxygen demand: 500 mg/L; total | Emission Standard of Odor Pollutants (GB 14554-93), | Chemical oxygen demand: 0.0874240 t/a; | Chemical oxygen demand: 9.06 t/a; ammon | No excessive emissions |
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of discharge outlets | Emission Concentration/Intensity | Implemented pollutant discharge standards | Total emissions | Approved total emissions | Excessive emissions |
| Substance; monoxy Carbon; particles Substance; smoke black Degree; odor; Ammonia; vulcanization Hydrogen; Wastewater: Chemical Oxygen demand; ammonia Nitrogen; pH value; total nitrogen; Total phosphorus; color Degree; suspension Things; animals and plants Oil; formaldehyde; Acetonitrile; total surplus Chlorine (with Cl Count); always have | Crippled Water: 1 Individual | y; move Row of things Let go; The main outlet of the factory | phosphorus: 5.1 mg/L | Chengdu Boiler Air Pollutant Emission Standard (DB 51/2672 — 2020), Volatile Organic Compounds Unorganized Emission Control Standard (GB 37822-2019) Discharge standard of water pollutants for bioengineered pharmaceutical industry (GB 21907-2008) | ammonia nitrogen: 0.0108480 t/a; total phosphorus: 0.0026756 t/a | ia nitrogen: 0.453 t/a; total phosphorus: 0.920 t/a |
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of discharge outlets | Emission Concentration/Intensity | Implemented pollutant discharge standards | Total emissions | Approved total emissions | Excessive emissions |
| Organic carbon; acute Toxicity; fecal Intestinal flora/ （MPN/L） ; volatile phenol | ||||||||||
| Jiaxiang Haiying Food Co., Ltd | Waste gas, waste water | Exhaust gas: vulcanized Hydrogen; Ozone; Ammonia; lampblack Wastewater: Chemical Oxygen demand; ammonia Nitrogen; total nitrogen; Total phosphorus | Discharge after treatment | Crippled Gas ：5 Individual Equity; Crippled Water ：1 Individual | Exhaust gas: Boiler smoke Tube; food Tang Yan Barrel; car Between ; pollution Water treatment Place; Wastewater: Total sewage Discharge port | total nitrogen 36.3mg/L；total phosphorus 0.906mg/L；Ammonia nitrogen 8.84mg/L；chemical oxygen demand 17mg/L | Comprehensive Emission Standard of Air Pollutants (GB 16297-1996); Water Pollution Discharge Standard for Meat Processing Industry (GB 13457-92) | COD: 2.35 t/a; ammonia nitrogen: 1.35 t/a; total nitrogen: 5.36 t/a; | COD: 50.495 t/a; ammonia nitrogen: 4.385 t/a; total nitrogen: 56.7 t/a | Some wastewater collection facilities are not operating normally, resulting in excessive sewage discharge. During the reporting period, the rectification has been completed, and the emissions are in line with national |
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of discharge outlets | Emission Concentration/Intensity | Implemented pollutant discharge standards | Total emissions | Approved total emissions | Excessive emissions |
| standards. | ||||||||||
| Linxi County Haiying Food Co., Ltd | Waste water, exhaust gas | Exhaust gas: particulate matter, sulfur dioxide, nitrogen oxides, flue gas; wastewater: chemical oxygen demand, ammonia nitrogen, total nitrogen, total phosphorus, pH | Discharge after treatment | Exhaust gas: 3; Wastewater: 1 | Exhaust gas: 1 boiler exhaust pipe, 1 workshop exhaust gas treatment outlet, 1 exhaust gas treatment outlet; Wastewater: 1 total sewage discharge outlet | chemical oxygen demand 100mg/l，Ammonia nitrogen 25mg/l，total nitrogen 30mg/l，total phosphorus 3mg/l | "Comprehensive Emission Standard of Air Pollutants" (GB 16297-1996); "Water Pollution Discharge Standard for Meat Processing Industry" (GB 13457-92) | COD: 6.258 t/a Ammonia nitrogen: 0.188 t/a Total nitrogen: 3.193 t/a | Chemical oxygen demand: 36.24 t/a; ammonia nitrogen: 7.248 t/a; Nitrogen oxides: 1.464 t/a, sulfur dioxide 0.288 t/a | No excessive emissions |
| Yiyuan Haiying Food Co., Ltd | Waste water, exhaust gas | Exhaust gas: particulate matter; sulfur dioxide; nitrogen oxides; smoke blackness. Wastewater: Chemical Oxygen Demand; Total Phosphorus; Ammonia Nitrogen | Discharge after treatment | Exhaust: 3; Wastewater: 1 | Exhaust gas: 1 exhaust outlet for workshop exhaust gas treatment equipment; 1 boiler chimney; 1 exhaust gas equipment outlet for | COD: 60.3 mg/L; ammonia nitrogen: 3.73 mg/L; total phosphorus: 1.6 mg/L; total nitrogen: 21.5 mg/L; sulfur dioxide: 0 kg/h; nitrogen oxides: 0.04 kg/h; particulate matter: 0.00234 kg/h | Shandong Province Boiler Air Pollutant Emission Standard (DB 37/2374-2018), Odor Pollutant Emission Standard (GB 14554-93); Meat Processing Industry Water Pollutant Emission Standard | COD: 16.9 t/a; ammonia nitrogen: 0.955 t/a; total nitrogen 5.92 t/a; total phosphorus 0.448t/a; sulfur dioxide：0t/a； | COD: 73.62 t/a; ammonia nitrogen: 7.98 t/a; sulfur dioxide: 0.225 t/a; nitrogen oxides: 0.315 t/a; particulate matter: 0.067 t/a | Discharge pollutants in excess of water pollutant discharge standards. During the reporting period, the rectification has |
| Company or subsidiary name | Types of main pollutants and characteristic pollutants | Names of major pollutants and characteristic pollutants | Emission method | Number of discharge outlets | Distribution of discharge outlets | Emission Concentration/Intensity | Implemented pollutant discharge standards | Total emissions | Approved total emissions | Excessive emissions |
| ; Total Nitrogen. | sewage station. Wastewater: 1 discharge outlet of the sewage station. | (GB 13457-92), Sewage Discharge into Urban Sewer Water Quality Standard (GB/T 31962-2015) | nitrogen oxides：0.184t/a；particulate matter：0.0077t/a | been completed and it is in line with the national emission standards. |
Treatment of contaminants
During the reporting period, all key pollutant discharge subsidiaries of the company were equipped withpollution prevention and control facilities as required, and the daily maintenance of environmental protectionfacilities operated effectively. Among them: (1) Exhaust gas: Limestone desulfurization, SNCR denitrification,bag dust removal, deodorant spraying, activated carbon adsorption, spray tower deodorization and other processesare used to reduce the concentration of particulate matter, soot, sulfur dioxide, nitrogen oxides, ammonia,hydrogen sulfide, odor, etc., and discharge after reaching the standard; (2) Sewage (wastewater): Solid-liquidseparation, A/O process, AAO process, etc., are used respectively, and discharged after reaching the standard; (3)Solid waste: Equipped with relevant facilities and equipment to realize harmless and resource-based treatment.Environmental Self-Monitoring ProgramThe above-mentioned subsidiaries have formulated environmental self-monitoring plans according to therequirements of local environmental protection departments, and contacted qualified monitoring units to assist inregular self-monitoring, and announced or filed with local environmental protection departments as required. Themonitoring plans meet the requirements of EIA and emission standards.Emergency plan for environmental emergenciesDuring the reporting period, in order to implement the "Emergency Response Law of the People's Republicof China" and the requirements of other national laws, regulations and related documents, effectively prevent andrespond to environmental emergencies, protect people's lives and reduce unit losses, each branch companyformulated environmental protection emergency plans according to the requirements of local environmentalprotection departments and carried out emergency plan drills. At the same time, in accordance with therequirements of the "Administrative Measures for Emergency Preparedness and Response for Safety andEnvironmental Protection of Haid Group", the above-mentioned subsidiaries have established an emergencyorganizational structure and allocated personnel and resources from top to bottom, and formulated emergency
plans for pollution accidents, strengthened response to different levels of risks and incidents, and strengthenedcooperation among various departments.Investment in environmental governance and protection and payment of environmental protection taxDuring the reporting period, the company invested more than 40 million yuan in environmental governanceand protection, and paid environmental protection tax in full according to law.Measures and effects taken to reduce its carbon emissions during the reporting period?Applicable □ Not applicable
In order to reduce energy use and related emissions that lead to climate change, the company activelyexplores energy-saving technologies and processes. At the same time, in recent years, the company has continuedto promote its energy transition plan, adopting clean energy options in its operations to reduce its dependence ontraditional fossil fuels. For existing projects, the company has extensively carried out coal-fired boiler phase-outplans; monitored and managed the company's gas and electricity use, and rationally arranged production andtimely maintenance to reduce energy waste; and reused biogas from farm manure fermentation as fuel. For newprojects, the company will uniformly configure environmentally friendly equipment such as natural gas boilers orbiomass boilers during the project construction phase. At the same time, pilot installation of photovoltaic powergeneration equipment to increase the use of clean energy.During the reporting period, key pollutant discharge units were subject to administrative penalties due toenvironmental problems
| Company or subsidiary name | Reason for punishment | Violations | Penalty result | Impact on the production and operation of listed companies | The company's corrective measures |
| Yiyuan Haiying Food Limited company | Violation of Article 10 of the "Water Pollution Prevention and Control Law of the People's Republic of China" | Discharge of water pollutants in excess of water pollutant discharge standards | Fined 139,843 yuan | No material adverse effect | The company upgrades and transforms sewage treatment equipment and facilities to strengthen daily monitoring. The rectification has been completed during the reporting period |
| Jiaxiang Haiying Food Limited company | Violated the provisions of Article 39 of the "Water Pollution Prevention and Control Law of the People's Republic of China" | Some wastewater collection facilities are not operating normally, resulting in excessive sewage discharge | Fined 250,000 yuan | No material adverse effect | Improve environmental protection equipment in time and strengthen daily monitoring. The rectification has been completed during the reporting period |
Other environmental information that should be made publicNoOther environmental protection related informationNo
II. Social ResponsibilityFor details, please refer to the "Haid Group:2024 Social Responsibility Report" disclosed by the company inthe designated information disclosure media.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationAs a responsible private enterprise rooted in agriculture, rural areas and farmers, serving agriculture andanimal husbandry, the company has always adhered to the tenet of "promoting agriculture through science andtechnology and assisting agriculture through industry", and actively participated in the main battlefield of ruralrevitalization. The company gives full play to the resource advantages of the whole industry chain, aims at thethree goals of agricultural modernization, farmer professionalization, and popularization of agriculturaltechnology, and contributes scientific and technological strength and leadership to rural revitalization.For more than 20 years, Haida people have been running on the road of popularization and publicity ofagricultural technology, shuttled by the Tangtou bar in the fields and countryside. With the advantages of thewhole industry chain of Haid Group, such as seedlings, feed, biopharmaceuticals, and breeding, and strong R&Dand innovation capabilities, with advanced breeding concepts, technologies and products, Haida people haveeffectively helped millions of farmers to scientifically breed, increase income and become rich, and open up the"last mile" of agricultural science and technology services. Promote the industrialization of agriculture, theprofessionalization of farmers, and the popularization of agricultural technology, and contribute a lot to therevitalization of rural areas.For more details, please refer to the "Haid Group:2024 Social Responsibility Report" disclosed by thecompany in the designated information disclosure media.
Section VI Important MattersI. Fulfillment of commitments
1. The company's actual controllers, shareholders, related parties, acquirers, and the company and otherrelated parties have fulfilled their commitments during the reporting period and have not fulfilled theircommitments as of the end of the reporting period?Applicable □ Not applicable
| Promise | Promise party | Commitment type | Commitment content | Promise time | Commitment period | Performance |
| Commitments made in an initial public offering or refinancing | Xue Hua | Commitments on horizontal competition, related party transactions, and capital occupation | 1. Mr. Xue Hua promises not to use the position of the actual controller to damage the interests of Haid Group and other shareholders of Haid Group. 2. During the period as the actual controller of Haid Group, Mr. Xue Hua guarantees that he and his wholly-owned subsidiaries, holding subsidiaries and companies actually controlled (except Haid Group) will not directly or indirectly engage in any form of business activities that compete with the main business or main products of Haid Group or pose a threat of competition within or outside China, Including companies, enterprises or other economic organizations that do not invest, acquire, or merge within or outside China with the same or similar main business or main products of Haid Group. | November 27, 2009 | Long | Strictly performing |
| Commitments made in an initial public offering or refinancing | Guangzhou Haihao Investment Co., Ltd | Commitments on horizontal competition, related party transactions, and capital occupation | 1. Guarantee not to use the position of the controlling shareholder to damage the interests of Haid Group and other shareholders of Haid Group. 2. During the period when Guangzhou Haihao is the controlling shareholder of Haid Group, Guangzhou Haihao guarantees that Guangzhou Haihao and its wholly-owned subsidiaries, holding subsidiaries (except Haid Group) and companies actually controlled will not directly or indirectly engage in business activities that compete with or threaten competition with the main business or main products of Haid Group in any form within or outside China, Including companies, enterprises or other economic | November 27, 2009 | Long | Strictly performing |
| organizations that do not invest, acquire or merge within or outside China with the same or similar main business or main products of Haid Group. | ||||||
| Equity Incentive Commitment | Guangdong Haid Group Co., Ltd. | Other commitments | The Company promises not to provide loans, loan guarantees or any other forms of financial assistance for incentive objects to obtain relevant rights and interests in accordance with the 2021 Stock Option Incentive Plan of Guangdong Haid Group Co., Ltd.. | May 20, 2021 | May 20, 2021 to June 27, 2027 | Strictly performing |
| Equity Incentive Commitment | Guangdong Haid Group Co., Ltd. | Other commitments | The Company undertakes not to provide loans, loan guarantees or any other forms of financial assistance for the incentive objects to exercise the stock options granted in the 2024 Stock Option Incentive Plan of Guangdong Haid Group Co., Ltd.. | March 20, 2024 | March 20, 2024 to May 8, 2028 | Strictly performing |
| Other commitments made to the company's minority shareholders | Guangdong Haid Group Co., Ltd. | Dividend Commitment | When the company implements cash dividends, the following conditions must be met at the same time: (1) The company has made profits in the year or half of the year and the accumulated distributable profits (that is, the remaining after-tax profits after the company makes up for losses and withdraws the provident fund) are positive, and the cash flow is sufficient. The implementation of cash dividends will not affect the company's subsequent continuous operations; (2) The audit institution shall issue a standard unqualified audit report on the company's annual financial report (if the company implements interim dividends, the audit institution shall have issued a standard unqualified audit report on the company's previous annual financial report); (3) The company has no major foreign investment plans or major cash expenditures in the next twelve months (except for fund-raising projects). A major investment plan or major cash expenditure means that the company's planned external investment, asset acquisition, or equipment purchase in the next twelve months has reached or exceeded 30% of the company's most recent audited net assets. (4) There are no other circumstances that the board of directors considers | May 09, 2022 | May 9, 2022 to May 8, 2025 | Strictly performing |
| unsuitable for cash dividend distribution. | ||||||
| Other commitments | Xue Hua, Xu Yingzhuo, Cheng Qi, He Jianguo, Liu Yunguo, Shen Dong, Wang Hua, Mu Yongfang, Liu Guoxiang, Qian Xueqiao, Yang Shaolin, Jiang Xiewu, Mi Guocheng, Chen Zhongzhu, Chen Mingzhong, Yang Jiantao, Wang Jing, Huo Quanwen, Zhang Guijun, Lv Xuezhi, Huang Zhijian | Other commitments made to the company's minority shareholders | Follow relevant laws and regulations on the reduction of shares held by directors, supervisors and senior executives | November 27, 2009 etc | Long | Strictly performing |
| Other commitments | Qi Zhenxiong | Other commitments made to the company's minority shareholders | Share reduction commitment | November 27, 2009 | November 27, 2009 to February 18, 2026 | Strictly performing |
| Other commitments | Gui Jianfang | Other commitments made to the company's minority shareholders | Share reduction commitment | June 02, 2019 | June 2, 2019 to February 18, 2026 | Strictly performing |
| Whether the promise is fulfilled on time | Yes | |||||
| If the commitment is overdue and not fulfilled, the | Not applicable | |||||
specificreasons forthe non-fulfillmentand the nextwork planshall beexplained indetail
2. If there is a profit forecast for the company's assets or projects, and the reporting period is still in theprofit forecast period, the company will explain that the assets or projects have reached the original profitforecast and the reasons for it
□Applicable ? Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders andother related parties
□Applicable ? Not applicable
During the reporting period, there was no non-operating capital occupation of the listed company by thecontrolling shareholder and other related parties.III. Violation of external guarantees
□Applicable ? Not applicable
During the reporting period, the company had no illegal external guarantees.IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□Applicable ? Not applicable
V. Explanations of the board of directors, the board of supervisors and independent directors(if any) on the "non-standard audit report" of the accounting firm during the reportingperiod
□Applicable ? Not applicable
VI. Explanation of changes in accounting policies, accounting estimates or corrections ofmaterial accounting errors compared with the financial report of the previous year
□Applicable ? Not applicable
During the reporting period, the company had no accounting policies, changes in accounting estimates or
corrections of major accounting errors.VII. Explanation of the changes in the scope of the consolidated statement compared with thefinancial report of the previous year?Applicable □ Not applicableThe company included 574 subsidiaries in the consolidated financial statements this year, an increase of 45and a decrease of 28 over the previous year. For details, please refer to Note VII in Section X "Financial Reports".Interests in other entities.
VIII. Appointment and Dismissal of Accounting FirmsCurrent accounting firm
| Name of domestic accounting firm | Grant Thornton Zhitong Certified Public Accountants LLP |
| Remuneration of domestic accounting firms (ten thousand yuan) | 480 |
| Continuous years of audit services of domestic accounting firms | 6 years |
| The name of the certified public accountant of the domestic accounting firm | Li Xujia, Qiu Shuntong |
| Consecutive years of CPA audit services of domestic accounting firms | Li Xujia 1 year, Qiu Shuntong 2 years |
| The name of the overseas accounting firm (if any) | Not applicable |
| Remuneration of overseas accounting firm (ten thousand yuan) (if any) | 0 |
| Continuous years of audit services of overseas accounting firms (if any) | Not applicable |
| The name of the certified public accountant of the overseas accounting firm (if any) | Not applicable |
| Continuous years of CPA audit services of overseas accounting firms (if any) | Not applicable |
Whether to reappoint an accounting firm in the current period
□Yes ?No
Hiring an internal control audit accounting firm, financial consultant or sponsor?Applicable □ Not applicableDuring the reporting period, the company hired Grant Thornton Zhitong Certified Public Accountants LLP asthe internal control auditing accounting firm, and paid a total of 1.2 million yuan in internal control audit fees.IX. Facing delisting after the disclosure of the annual report
□Applicable ? Not applicable
X .matters related to bankruptcy and reorganization
□Applicable ? Not applicable
During the reporting period, the company did not have any bankruptcy and reorganization related matters.Ⅺ. Major litigation and arbitration matters
□Applicable ? Not applicable
During the reporting period, the company had no major lawsuits or arbitrations.Ⅻ. Punishment and rectification
□Applicable ? Not applicable
During the reporting period, there were no penalties and rectifications.XIII. The integrity of the company and its controlling shareholders and actual controllers
□Applicable ? Not applicable
XIV. Significant related party transactions
1. Related party transactions related to daily operations
?Applicable □ Not applicable
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| Guangzhou Haoyue Biotechnology Development Co., Ltd | Enterprises controlled by the same ultimate controlling party | Leasing a house from a related party | House rental | Market pricing | According to the market price of the place where the rented house is located, the market price shall be implemented after negotiation between the two parties | 3,459.68 | 8.10% | 3,459.68 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | September 20, 2023 | "Announcement on Housing Leasing and Related Party Transactions" (Announcement No.: 2023-073) disclosed in the company's designated information disclosure media |
| Foshan Haihang Xingfa Agriculture and Animal Husbandry | Joint venture | Sales of goods to related parties | Sales of feed and other products | Market pricing | Each transaction is based on the market price of the seller's | 8,103.9 | 0.07% | 9,000 | No | On normal commercial terms or in accordanc | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announceme |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| Development Co., Ltd. and its subsidiaries | unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | e with relevant agreements | nt No.: 2024-036) disclosed in the company's designated information disclosure media | ||||||||||
| Foshan HaihangXingfa Agriculture and Animal Husbandry Development Co., Ltd. and its subsidiaries | Joint venture | Procurement of agricultural products from related parties | Procurement of agricultural products | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the | 119.44 | 0.00% | 100 | Yes | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's designated information disclosure media |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| transaction price | |||||||||||||
| Wujiaqu Taikun Plant Protein Co., Ltd | Joint venture | Provide labor services to related parties | Provide labor | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | 18.00 | 0.00% | 18 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's designated information disclosure media |
| Wujiaqu Taikun Plant Protein Co., Ltd | Joint venture | Procurement of raw materials from related parties | Procurement of raw materials | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time | 12,434.22 | 0.11% | 15,000 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| of the transaction, and the two parties negotiate to determine the transaction price | designated information disclosure media | ||||||||||||
| Alar Ruiliheng Biological Protein Co., Ltd | Joint venture | Provide labor services to related parties | Provide labor | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | 15.75 | 0.00% | 18 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's designated information disclosure media |
| Alar Ruiliheng | Joint venture | Procurement of raw | Procurement of raw | Market pricing | Each transaction | 11,944.75 | 0.11% | 15,000 | No | On normal | Not applicable | April 23, 2024 | Announcement on Daily |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| Biological Protein Co., Ltd | materials from related parties | materials | is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | commercial terms or in accordance with relevant agreements | Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's designated information disclosure media | ||||||||
| Hutubi Tiankang Plant Protein Co., Ltd | Joint venture | Provide labor services to related parties | Provide labor | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties | 12.00 | 0.00% | 15 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | October 19, 2024 | "Announcement on Daily Related Party Transactions" (Announcement No.: 2024-066) disclosed in the company's designated information disclosure media |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| negotiate to determine the transaction price | |||||||||||||
| Hutubi Tiankang Plant Protein Co., Ltd | Joint venture | Procurement of raw materials from related parties | Procurement of raw materials | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | 2,370.31 | 0.12% | 7,000 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | October 19, 2024 | "Announcement on Daily Related Party Transactions" (Announcement No.: 2024-066) disclosed in the company's designated information disclosure media |
| Vietnam Haida Cherry Valley Co., Ltd. and its subsidiaries | Joint venture | Sales of goods to related parties | Sales of feed and other products | Market pricing | Each transaction is based on the market price of the seller's | 7,594.57 | 0.07% | 9,500 | No | On normal commercial terms or in accordanc | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announceme |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| unified external quotation at the time of the transaction, and the two parties negotiate to determine the transaction price | e with relevant agreements | nt No.: 2024-036) disclosed in the company's designated information disclosure media | |||||||||||
| Vietnam Haida Cherry Valley Co., Ltd. and its subsidiaries | Joint venture | Procurement of raw materials from related parties | Procurement of raw materials | Market pricing | Each transaction is based on the market price of the seller's unified external quotation at the time of the transaction, and the two parties negotiate to determine the | 298.39 | 0.00% | 700 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | Announcement on Daily Related Party Transactions in 2024 (Announcement No.: 2024-036) disclosed in the company's designated information disclosure media |
| Related party | Relationship | Related transaction type | Related transaction content | Pricing Principles for Related Party Transactions | Related transaction price | Amount of related transactions (ten thousand yuan) | Percentage of similar transaction amount | Approved transaction amount (ten thousand yuan) | Whether it exceeds the approved quota | Related party transaction settlement method | Available market price of similar transactions | Disclosure date | Disclosure Index |
| transaction price | |||||||||||||
| Chen Mingzhong | Key management personnel | Leasing a house from a related party | House rental | Market pricing | According to the market price of the place where the rented house is located, the market price shall be implemented after negotiation between the two parties | 150.24 | 0.35% | 150.24 | No | On normal commercial terms or in accordance with relevant agreements | Not applicable | April 23, 2024 | "Announcement on Housing Leasing and Related Party Transactions" (Announcement No.: 2024-037) disclosed in the company's designated information disclosure media |
| Total | -- | -- | 46,521.25 | -- | 59,960.92 | -- | -- | -- | -- | -- | |||
| Details of large-value sales returns | Not applicable. | ||||||||||||
| If the total amount of daily connected transactions that will occur in the current period is estimated by category, the actual performance during the reporting period (if any) | Not applicable. | ||||||||||||
| Reasons for the large difference between the transaction price and the market reference price (if applicable) | Not applicable. | ||||||||||||
Note: 1. After deliberation and approval at the thirteenth meeting of the sixth board of directors to be held on September 19, 2023, the company signed a lease
agreement with Guangzhou Haoyue Biotechnology Development Co., Ltd. (hereinafter referred to as "Haoyue Biotechnology "), an affiliate of Guangzhou Haihao,the controlling shareholder. The company leases eight buildings of Haoyue Biotechnology located in Haida Science Park, Hualong Town, Panyu District, GuangzhouCity, with a lease area of approximately 92,200 square meters (specifically subject to the subsequent actual measured area), The lease term is 6 years from January 1,2024, and the total amount of related leases is expected to be approximately RMB 403.7 million. Affected by the actual delivery progress of Haida Science Park, thecompany and Haoyue Biotechnology agreed on an equal and voluntary basis to sign a supplementary lease agreement on June 30, 2024: the lease term was adjustedto 6 years from April 1, 2024; The lease area is confirmed as the verified measured building area of 92,258 square meters (if the verified measured building area isinconsistent with the building area stated in the real estate title certificate of the leased house obtained in the future, the leased area shall be adjusted to the buildingarea stated in the real estate title certificate from the date of rent calculation); the property management fee during the decoration period agreed in the agreement isexempted. It is estimated that the amount of related-party transactions in 2024 will be approximately RMB 34,60 million.
2. After deliberation and approval at the nineteenth meeting of the sixth board of directors held on April 19, 2024, the company signed a lease agreement with Mr.Chen Mingzhong, a senior manager, and the company renewed the lease of office space. The lease period is from May 2024 to April 2026. It is estimated that thetotal amount of related leases will not exceed 3.12 million yuan. It is estimated that the related-party transactions will be about 1.5024 million yuan in 2024.
3. After deliberation and approval at the twenty-first meeting of the sixth board of directors held on October 17, 2024, the company purchased raw materials fromHutubi Tiankang Plant Protein Co., Ltd. for an amount of 190 million yuan, of which 70 million yuan will be delivered in 2024.
2. Related-party transactions arising from the acquisition and sale of assets or equity
□Applicable ? Not applicable
During the reporting period, there were no related transactions involving the acquisition or sale of assets or equity.
3. Related party transactions of joint foreign investment
□Applicable ? Not applicable
During the reporting period, the company did not have any related transactions of joint foreign investment.
4. Related creditor's rights and debts
□Applicable ? Not applicable
During the reporting period, there was no related creditor's rights and debts.
5. Transactions with financial companies that have an associated relationship
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the company and the financial company thathas an associated relationship and the associated party.
6. The transactions between the financial company controlled by the company and related parties
□Applicable ? Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by thecompany and related parties.
7. Other major related transactions
□Applicable ? Not applicable
During the reporting period, the company had no other major related transactions.
XV. Major contracts and their performance
1. Custody, contracting and leasing matters
(1) Custody
□Applicable ? Not applicable
There was no custody of the company during the reporting period.
(2) Contracting situation
□Applicable ? Not applicable
There was no contract in the company during the reporting period.
(3) Leasing
□Applicable ? Not applicable
There was no lease in the company during the reporting period.
2. Major guarantee
?Applicable □Not applicable
Unit: ten thousand yuan
| External guarantees of the company and its subsidiaries (excluding guarantees to subsidiaries) | ||||||||||
| Guaranteed object name | Disclosure date of the announcement related to the guarantee amount | Guarantee amount | Actual date | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Is it fulfilled? | Whether to guarantee a related party |
| Customers such as subsidiary farmers or distributors | February 07, 2024 | 2,000 | December 04, 2023 | 806.62 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 1,500 | August 14, 2022 | 516.6 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the | 1-3 years | No | No | |||
| principal and interest of the overdue loan of the borrower. | ||||||||
| 1,000 | May 06, 2022 | 101.5 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 20,000 | January 01, 2024 | 772.89 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 55,000 | January 01, 2024 | 82,494.68 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the | 1 year | No | No |
| principal and interest of the overdue loan of the borrower. | ||||||||
| 120,000 | January 01, 2024 | 135,390.74 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 30,000 | January 02, 2024 | 29,257.31 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 10,000 | January 02, 2024 | 1,770.4 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the | 1 year | No | No |
| principal and interest of the overdue loan of the borrower. | ||||||||
| 30,000 | January 02, 2024 | 31,154.36 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 20,000 | January 02, 2024 | 19,048.89 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 40,000 | January 03, 2024 | 40,987.31 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the | 1 year | No | No |
| principal and interest of the overdue loan of the borrower. | ||||||||
| 15,000 | August 09, 2024 | 2,425.46 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 500 | April 18, 2023 | 367.6 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |
| 1,000 | March 14, 2023 | 924.67 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the | 1 year | No | No |
| principal and interest of the overdue loan of the borrower. | ||||||||||
| 500 | April 07, 2023 | 168.34 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |||
| 1,000 | January 19, 2024 | 383.1 | Joint and several liability guarantee | The spouse of the borrower, one of the adult children of the borrower and one of the spouse and the third party provide counter-guarantee to the company; the company has the right to withhold the relevant funds of the customer (including but not limited to the remaining payment, discounts, etc.) for repayment of the principal and interest of the overdue loan of the borrower. | 1 year | No | No | |||
| Unused quota | February 07, 2024 | 20,500 | ||||||||
| The total amount of external guarantees approved during the reporting period (A1) | 368,000 | The total actual amount of external guarantees during the reporting period (A2) | 346,570.47 | |||||||
| The total amount of external guarantees approved at the end of the reporting period (A3) | 368,000 | The total balance of actual external guarantees at the end of the reporting period (A4) | 199,534.57 | |||||||
| The company's guarantee to its subsidiaries | ||||||||||
| Guaranteed object name | Disclosure date of the announcement related to the guarantee amount | Guarantee amount | Actual date | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Is it fulfilled? | Whether to guarantee a related party |
| Guangzhou Nansha Haishengyuan Aquaculture Technology Co., Ltd | February 07, 2024 | 200 | April 03, 2023 | 200 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 2 years | No | No | |
| Shaoguan Haida Biotechnology Co., Ltd | February 07, 2024 | 30 | June 17, 2024 | 30 | Joint and several liability guarantee | Not applicable | 3 years | No | No | |
| Sihui Haifeng Ecological Agriculture Co., Ltd | February 07, 2024 | 50 | July 12, 2024 | 50 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| Qingyuan Hailong Biological Technology Co., Ltd | February 07, 2024 | 373 | August 05, 2024 | 373 | Joint and several liability guarantee | Not applicable | 2 years | No | No | |
| Sihui Haifeng Ecological Agriculture Co., Ltd | February 07, 2024 | 16 | September 25, 2024 | 16 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| Foshan HaihangFeed Co., Ltd | February 07, 2024 | 50 | November 13, 2024 | 50 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| Foshan HaihangFeed Co., Ltd | February 07, 2024 | 67.5 | November 13, 2024 | 67.5 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 3 years | No | No | |
| Leizhou Yuexiu Haishengyuan Shrimp Breeding Technology Co., Ltd | February 07, 2024 | 47.05 | December 02, 2024 | 47.05 | Joint and several liability | Minority shareholders provide counter-guarantee to the company according to their | 3 years | No | No | |
| guarantee | shareholding ratio | |||||||||
| Qingyuan Haid Biotechnology Co., Ltd | December 13, 2022 | 70 | December 28, 2022 | 70 | Joint and several liability guarantee | Not applicable | 3 years | No | No | |
| Haid International Group Limited | October 31, 2017 | 35,942 | June 13, 2018 | 35,942 | Joint and several liability guarantee | Not applicable | 7 years | No | No | |
| Guangdong Haid International Trade Co., Ltd | February 07, 2024 | 3,500 | April 03, 2024 | 393.39 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., LTD | February 07, 2024 | 10,063.76 | April 19, 2024 | 6,247.44 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 3 years | No | No | |
| PT HAIDA BIOTECHNOLOGY INDONESIA | February 07, 2024 | 3,098.25 | November 20, 2023 | 2,272.05 | Joint and several liability guarantee | Not applicable | 2 years | No | No | |
| BINH PHUOC HAI LONG COMPANY LIMITED | February 07, 2024 | 6,900.86 | May 14, 2024 | 6,129.25 | Joint and several liability guarantee | Not applicable | 3 years | No | No | |
| HAID INTERNATIONAL (SINGAPORE) PTE. LTD. | February 07, 2024 | 10,782.6 | July 24, 2024 | 666.45 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| China Haida Feed Group (HK) Limited | February 07, 2024 | 15,814.48 | January 17, 2024 | 19,994.96 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| China Haida Feed Group (HK) Limited | February 07, 2024 | 30,000 | December 20, 2024 | 4,015 | Joint and several liability guarantee | Not applicable | 1 year | Yes | No | |
| Guangzhou YitunPig Industry Investment Co., Ltd | June 29, 2019 | 55,700 | November 28, 2019 | 52,252.75 | Joint and several | Not applicable | 10 years | No | No |
| liability guarantee | ||||||||||
| Guangzhou Yitun Pig Industry Investment Co., Ltd | June 29, 2019 | 80,000 | September 10, 2020 | 73,810.35 | Joint and several liability guarantee | Not applicable | 10 years | No | No | |
| Guangzhou Yitun Pig Industry Investment Co., Ltd | July 27, 2021 | 23,000 | October 26, 2022 | 13,858.9 | Joint and several liability guarantee | Not applicable | 10 years | No | No | |
| Shaoguan Zhenjiang District Yitun Ecological Agriculture Co., Ltd | July 27, 2021 | 17,400 | January 08, 2022 | 17,400 | Joint and several liability guarantee | Not applicable | 8 years | No | No | |
| Shaoguan Zhenjiang District Yitun Ecological Agriculture Co., Ltd | July 27, 2021 | 19,200 | March 16, 2022 | 19,200 | Joint and several liability guarantee | Not applicable | 8 years | No | No | |
| Guangzhou Yitun Pig Industry Investment Co., Ltd | February 07, 2024 | 5,000 | February 07, 2024 | 10,000 | Joint and several liability guarantee | Not applicable | 2-3 years | No | No | |
| Wholly-owned subsidiaries and holding subsidiaries | February 07, 2024 | 400,000 | January 01, 2024 | 35,488.56 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| Unused quota | February 07, 2024 | 114,006.5 | ||||||||
| During the reporting period, the total amount of guarantees approved for subsidiaries (B1) | 600,000 | The total actual amount of guarantees to subsidiaries during the reporting period (B2) | 298,574.65 | |||||||
| The total amount of guarantees approved for subsidiaries at the end of the reporting period (B3) | 831,312 | The total balance of actual guarantees to subsidiaries at the end of the reporting period (B4) | 157,648.06 | |||||||
| Subsidiary's guarantee to subsidiary | ||||||||||
| Guaranteed object name | Disclosure date of the announcement related to the guarantee amount | Guarantee amount | Actual date | Actual guarantee amount | Guarantee type | Collateral (if any) | Counter-guarantee (if any) | Guarantee period | Is it fulfilled? | Whether to guarantee a related party |
| HAI DUONG HAID COMPANY LIMITED | February 07, 2024 | 3,594.2 | February 28, 2024 | 1,426.73 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| BINH DINH HAI LONG CO., LTD, HAI DUONG HAID COMPANY LIMITED, HAID FEED COMPANY LIMITED, VINH LONG HAI DAI CO., LTD | February 07, 2024 | 7,188.4 | February 05, 2024 | 7,747.95 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| BINH PHUOC HAI LONG COMPANY LIMITED | February 07, 2024 | 3,594.2 | October 30, 2024 | 303.97 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 8,626.08 | February 05, 2024 | 3,996.77 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 6,205.41 | February 02, 2024 | 247.82 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 14,103.2 | October 08, 2024 | 4,888.79 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 8,626.08 | January 12, 2024 | 13,002.89 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 6,110.14 | September 20, 2024 | 1,414.27 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | Yes | No |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 10,718.43 | January 19, 2024 | 5,727.13 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 30,910.12 | January 26, 2024 | 41,378.21 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | February 07, 2024 | 9,872.24 | July 23, 2024 | 11,582.96 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| HAID FEED COMPANY LIMITED | February 07, 2024 | 3,162.9 | August 08, 2024 | 522.93 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| SHENGLONG BIO-TECH (INDIA) PRIVATE LIMITED | February 07, 2024 | 3,594.2 | January 11, 2024 | 4,432.07 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENGLONG BIO-TECH (INDIA) PRIVATE LIMITED | February 07, 2024 | 5,750.72 | March 26, 2024 | 3,529.68 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENGLONG BIO-TECH (INDIA) PRIVATE LIMITED | February 07, 2024 | 3,953.62 | February 26, 2024 | 3,706.16 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| SHENGLONG BIO-TECH (INDIA) PRIVATE LIMITED | February 07, 2024 | 1,505.14 | March 28, 2024 | 206.88 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| VINH LONG HAI DAI CO., LTD | February 07, 2024 | 3,594.2 | April 08, 2024 | 3,227.1 | Joint and several liability guarantee | Not applicable | 1 year | Yes | No | |
| BINH DINH HAI LONG CO., LTD, VINH LONG HAI DAI CO., LTD | February 07, 2024 | 7,907.24 | February 23, 2024 | 14,153.66 | Joint and several liability | Not applicable | 2 years | No | No |
| guarantee | ||||||||||
| VINH LONG HAI DAI CO., LTD | February 07, 2024 | 7,188.4 | February 19, 2024 | 7,097.84 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| PT.HAIDA AGRICULTURE INDONESIA | February 07, 2024 | 5,750.72 | March 13, 2024 | 3,609.39 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| PT.HAIDA AGRICULTURE INDONESIA | February 07, 2024 | 3,594.2 | October 08, 2024 | 1,179.19 | Joint and several liability guarantee | Not applicable | 1 year | Yes | No | |
| PT.HAIDA AGRICULTURE INDONESIA | February 07, 2024 | 10,060.63 | May 31, 2024 | 3,469.04 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| PT.HAIDA AGRICULTURE INDONESIA | February 07, 2024 | 3,594.2 | November 01, 2024 | 2,255.87 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| PT.HAIDA AGRICULTURE INDONESIA | February 07, 2024 | 20,846.36 | March 13, 2024 | 11,478.92 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 3,594.2 | February 16, 2024 | 1,613.82 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 8,461.92 | May 07, 2024 | 2,853.09 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 7,188.4 | January 19, 2024 | 11,428.39 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 9,872.24 | February 05, 2024 | 21,938.62 | Joint and several | Minority shareholders provide counter-guarantee to the | 2 years | No | No |
| liability guarantee | company according to their shareholding ratio | |||||||||
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 10,718.43 | August 16, 2024 | 3,527.26 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | February 07, 2024 | 14,376.8 | February 02, 2024 | 11,746.8 | Joint and several liability guarantee | Minority shareholders provide counter-guarantee to the company according to their shareholding ratio | 1 year | No | No | |
| Guangzhou Haiyuan Commercial Factoring Co., Ltd | February 07, 2024 | 455.08 | March 04, 2024 | 455.08 | Joint and several liability guarantee | Not applicable | 3 years | No | No | |
| Huayuan County Yitun Ecological Agriculture Co., Ltd., Guangzhou Yitun Pig Industry Investment Co., Ltd | February 07, 2024 | 1,800 | January 15, 2024 | 1,800 | Joint and several liability guarantee | Not applicable | 1 year | No | No | |
| Unused quota | February 07, 2024 | 145,481.9 | ||||||||
| During the reporting period, the total amount of guarantees approved for subsidiaries (C1) | 392,000 | The total actual amount of guarantees to subsidiaries during the reporting period (C2) | 205,949.28 | |||||||
| The total amount of guarantees approved for subsidiaries at the end of the reporting period (C3) | 392,000 | The total balance of actual guarantees to subsidiaries at the end of the reporting period (C4) | 25,512.61 | |||||||
| The total amount of company guarantees (that is, the total of the first three items) | ||||||||||
| The total amount of approved guarantees during the reporting period (A1 + B1 + C1) | 1,360,000 | The total amount of guarantees actually incurred during the reporting period (A2 + B2 + C2) | 851,094.4 | |||||||
| The total amount of guarantees approved at the end of the reporting period (A3 + B3 + C3) | 1,591,312 | Total actual guarantee balance at the end of the reporting period (A4 + | 382,695.24 | |||||||
| B4 + C4) | ||
| The proportion of the total actual guarantee (ie A4 + B4 + C4) to the company's net assets | 16.01% | |
| Of which: | ||
| Balance of guarantees provided to shareholders, actual controllers and their related parties (D) | 0 | |
| Debt guarantee balance provided directly or indirectly to guaranteed objects with asset-liability ratio exceeding 70% (E) | 8,164.12 | |
| Amount of total guarantees exceeding 50% of net assets (F) | 0 | |
| The total amount of the above three guarantees (D + E + F) | 8,164.12 | |
| For unexpired guarantee contracts, a description of the circumstances in which the guarantee liability occurred during the reporting period or there is evidence that it is possible to bear joint and several liability for repayment (if any) | During the reporting period, the company has paid a total of RMB 67,303,200 for overdue guarantees, completed the recovery of RMB 25,670,400, and the rest are still in the process of recovery. | |
| Explanation of providing external guarantee in violation of prescribed procedures (if any) | Not applicable | |
Note:
1. If the "actual date of occurrence" is earlier than the "date of disclosure of relevant announcements on the guarantee quota", it is the guarantee business whose quotahas been reviewed for extension or renewal during the reporting period when it first occurs;
2. The "actual guarantee amount" refers to the accumulated guarantee amount during the reporting period, including the relevant amount that was released after theguarantee was provided during the reporting period, excluding the amount of guarantee that occurred before the reporting period and was released during thereporting period.
3. The amount of the subsidiary's external guarantee is converted according to the company's shareholding ratio in the subsidiary.
4. Those involving foreign currency guarantees shall be converted at the intermediate exchange rate at the end of the reporting period.
3. Entrusting others to manage cash assets
(1) Entrusted financial management
?Applicable □ Not applicableOverview of entrusted wealth management during the reporting period
Unit: ten thousand yuan
| Specific type | Source of funds for entrusted financial management | Entrusted financial management amount | Unexpired balance | Overdue amount | The amount of impairment accrued for overdue financial management |
| Bank wealth management products | Own funds | 519,065.36 | 350,065.36 | 0 | 0 |
| Brokerage financial products | Own funds | 78,850 | 78,850 | 0 | 0 |
| Total | 597,915.36 | 428,915.36 | 0 | 0 | |
The specific situation of high-risk entrusted wealth management with large single amount or low security andpoor liquidity
□Applicable ? Not applicable
Entrusted wealth management is expected to be unable to recover the principal or there are other situations thatmay lead to impairment
□Applicable ? Not applicable
(2) Entrusted loans
□Applicable ? Not applicable
There was no entrusted loan in the company during the reporting period.
4. Other major contracts
□Applicable ? Not applicable
There were no other major contracts in the company during the reporting period.XVI. Explanation of other important matters
□Applicable ? Not applicable
During the reporting period, there were no other major events that need to be explained.
XVII. Major events of the company's subsidiaries
□Applicable ? Not applicable
Section Ⅶ Changes in Shares and ShareholdersI. Changes in shares
1. Changes in shares
Unit: share
| Before this change | Increase or decrease in this change (+, -) | After this change | |||||||
| Quantity | Proportion | Issue new shares | Bonus shares | Provident fund conversion | other | Subtotal | Quantity | Proportion | |
| I. Shares subject to sales restrictions | 1,189,472 | 0.07% | 39,195 | 39,195 | 1,228,667 | 0.07% | |||
| 1. State shareholding | |||||||||
| 2. State-owned legal person holding shares | |||||||||
| 3. Other domestic shares | 1,189,472 | 0.07% | 39,195 | 39,195 | 1,228,667 | 0.07% | |||
| Of which: domestic legal person holdings | |||||||||
| Domestic natural person holdings | 1,189,472 | 0.07% | 39,195 | 39,195 | 1,228,667 | 0.07% | |||
| 4. Foreign shareholding | |||||||||
| Of which: overseas legal person holdings | |||||||||
| Shares held by foreign natural persons | |||||||||
| II. Unrestricted Shares | 1,662,560,498 | 99.93% | -39,195 | -39,195 | 1,662,521,303 | 99.93% | |||
| 1. RMB ordinary shares | 1,662,560,498 | 99.93% | -39,195 | -39,195 | 1,662,521,303 | 99.93% | |||
| 2. Domestically listed foreign shares | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Other | |||||||||
| III. Total number of shares | 1,663,749,970 | 100.00% | 0 | 0 | 1,663,749,970 | 100.00% |
Reasons for changes in shares?Applicable □ Not applicableDuring the reporting period, the company's newly hired senior executives led to changes in the number ofrestricted shares locked by senior executives, which had no impact on the total number of shares of the company.Approval of changes in shares
□Applicable ? Not applicable
Transfer of share changes
□Applicable ? Not applicable
The impact of share changes on financial indicators such as basic and diluted earnings per share, net assets pershare attributable to common shareholders of the company in the most recent year and the most recent period
□Applicable ? Not applicable
Other content that the company deems necessary or required to be disclosed by securities regulators
□Applicable ? Not applicable
2. Changes in restricted shares
?Applicable □ Not applicable
Unit: share
| Name of shareholder | Number of restricted shares at the beginning of the period | Increase the number of restricted shares in the current period | The number of shares lifted in the current period | Number of restricted shares at the end of the period | Reason for restriction | Release date |
| Some directors and executives of the company | 1,189,472 | 39,195 | 0 | 1,228,667 | Executives lock up shares | Not applicable |
| Total | 1,189,472 | 39,195 | 0 | 1,228,667 | -- | -- |
II. Securities Issuance and Listing
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable ? Not applicable
2. Explanation of changes in the total number of shares of the company and the structure of shareholders,and changes in the structure of assets and liabilities of the company
□Applicable ? Not applicable
3. Existing internal employee shares
□Applicable ? Not applicable
III. Shareholders and actual controllers
1. The number of shareholders and shareholding of the company
Unit: share
| Total number of common shareholders at the end of the reporting period | 21,464 | The total number of ordinary shareholders at the end of the previous month before the disclosure date of the annual report | 21,006 | The total number of preferred shareholders whose voting rights were restored at the end of the reporting period (if any) | 0 | The total number of preferred shareholders (if any) whose voting rights were restored at the end of the previous month before the disclosure date of the annual report | 0 | |
| Shareholding of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing) | ||||||||
| Name of shareholder | Nature of Shareholders | Shareholding ratio | Number of shares held at the end of the reporting period | Changes during the reporting period | Number of shares subject to sales restrictions | The number of shares held without selling restrictions | Pledge, mark or freeze | |
| Share status | Quantity | |||||||
| Guangzhou Haihao Investment Co., Ltd | Domestic non-state-owned legal person | 54.73% | 910,589,359 | 0 | 0 | 910,589,359 | Pledge | 53,200,000 |
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 6.67% | 110,939,912 | -7,978,875 | 0 | 110,939,912 | Not applicable | 0 |
| Industrial and Commercial Bank Of China Ltd. - Invesco Great Wall Emerging Growth Hybrid | other | 2.48% | 41,300,000 | -1,699,933 | 0 | 41,300,000 | Not applicable | 0 |
| Securities Investment Fund | ||||||||
| Abu Dhabi Investment Authority | Foreign legal person | 1.13% | 18,742,547 | 2,722,767 | 0 | 18,742,547 | Not applicable | 0 |
| Bank of China Ltd. - Invesco Great Wall Dingyi Hybrid Securities Investment Fund (LOF) | other | 0.96% | 15,999,899 | 0 | 0 | 15,999,899 | Not applicable | 0 |
| Industrial and Commercial Bank Of China Ltd. - Huatai Bai Rui CSI 300 Trading Open-end Index Securities Investment Fund | other | 0.87% | 14,431,019 | 8,216,670 | 0 | 14,431,019 | Not applicable | 0 |
| China Merchants Bank Co., Ltd. - Xingquan Herun Hybrid Securities Investment Fund | other | 0.79% | 13,111,475 | 12,016,075 | 0 | 13,111,475 | Not applicable | 0 |
| National Social Security Fund 106 Portfolio | other | 0.65% | 10,884,232 | 2,829,400 | 0 | 10,884,232 | Not applicable | 0 |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open-end Index-Initiated Securities Investment Fund | other | 0.60% | 9,918,962 | 7,576,418 | 0 | 9,918,962 | Not applicable | 0 |
| Goldman International-own funds | Foreign legal person | 0.56% | 9,391,107 | 3,405,314 | 0 | 9,391,107 | Not applicable | 0 |
| Strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares (if any) | Not applicable | |||||||
| Description of the above-mentioned shareholders' connected relationship or concerted action | Among the above-mentioned top 10 shareholders, the first shareholder is the controlling shareholder of the company, and the first shareholder does not have an associated relationship with other shareholders, nor is it a party acting in concert; it is unknown whether other shareholders belong to the parties acting in concert as stipulated in the Measures for the | |||||||
| Administration of Acquisitions of Listed Companies, and it is also unknown whether there is an associated relationship among other shareholders. | |||
| Explanation of the above shareholders involved in entrusted/entrusted voting rights and abstention from voting rights | Not applicable | ||
| Special instructions for repurchasing special accounts among the top 10 shareholders (if any) | Not applicable | ||
| Shareholdings of the top 10 shareholders with unrestricted sales conditions (excluding shares lent through refinancing and locked shares by executives) | |||
| Name of shareholder | The number of unrestricted shares held at the end of the reporting period | Type of shares | |
| Type of shares | Quantity | ||
| Guangzhou Haihao Investment Co., Ltd | 910,589,359 | RMB ordinary shares | 910,589,359 |
| Hong Kong Securities Clearing Company Limited | 110,939,912 | RMB ordinary shares | 110,939,912 |
| Industrial and Commercial Bank Of China Ltd. - Invesco Great Wall Emerging Growth Hybrid Securities Investment Fund | 41,300,000 | RMB ordinary shares | 41,300,000 |
| Abu Dhabi Investment Authority | 18,742,547 | RMB ordinary shares | 18,742,547 |
| Bank of China Ltd. - Invesco Great Wall Dingyi Hybrid Securities Investment Fund (LOF) | 15,999,899 | RMB ordinary shares | 15,999,899 |
| Industrial and Commercial Bank Of China Ltd. - Huatai Bai Rui CSI 300 Trading Open-end Index Securities Investment Fund | 14,431,019 | RMB ordinary shares | 14,431,019 |
| China Merchants Bank Co., Ltd. - Xingquan Herun Hybrid Securities Investment Fund | 13,111,475 | RMB ordinary shares | 13,111,475 |
| National Social Security Fund 106 Portfolio | 10,884,232 | RMB ordinary shares | 10,884,232 |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open-end Index-Initiated Securities Investment Fund | 9,918,962 | RMB ordinary shares | 9,918,962 |
| Goldman International-own funds | 9,391,107 | RMB ordinary shares | 9,391,107 |
| Description of the associated relationship or concerted action among the top 10 shareholders of tradable shares without tradable shares, and between the top 10 shareholders of tradable shares without tradable shares and the top 10 shareholders | Among the above-mentioned top 10 shareholders, the first shareholder is the controlling shareholder of the company, and the first shareholder does not have an associated relationship with other shareholders, nor is it a party acting in concert; it is unknown whether other shareholders are parties acting in concert as stipulated in the Measures for the Administration of Acquisitions of Listed Companies, and it is also unknown whether there is an associated relationship among other shareholders | ||
| Description of the top 10 common shareholders participating in margin financing and securities lending business (if any) | Not applicable |
Shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of tradableshares without selling restrictions participated in the refinancing business and lent shares?Applicable □ Not applicable
Unit: share
| Shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of tradable shares without selling restrictions participated in the refinancing business and lent shares | ||||||||
| Shareholder name (full name) | Ordinary account and credit account holdings at the beginning of the period | Refinancing lent shares at the beginning of the period and has not yet returned | Ordinary account and credit account holdings at the end of the period | Refinancing lent shares at the end of the period and has not yet returned | ||||
| Total quantity | Percentage of total share capital | Total quantity | Percentage of total share capital | Total quantity | Percentage of total share capital | Total quantity | Percentage of total share capital | |
| Industrial and Commercial Bank Of China Ltd. - Huatai Bai Rui CSI 300 Trading Open-end Index Securities Investment Fund | 6,214,349 | 0.37% | 121,400 | 0.01% | 14,431,019 | 0.87% | 0 | 0.00% |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open-end Index-Initiated Securities Investment Fund | 2,342,544 | 0.14% | 10,500 | 0.00% | 9,918,962 | 0.60% | 0 | 0.00% |
The top 10 shareholders and the top 10 shareholders of tradable shares without selling restrictions have changedfrom the previous period due to refinancing, lending/return
□Applicable ? Not applicable
Whether the company's top 10 common shareholders and top 10 common shareholders with unrestricted salesconditions conducted agreed repurchase transactions during the reporting period
□ Yes ?No
The top 10 common shareholders of the company and the top 10 common shareholders with unrestricted salesconditions did not conduct agreed repurchase transactions during the reporting period.
2. The controlling shareholder of the company
Nature of controlling shareholder: natural person holdingControlling shareholder type: legal person
| Name of controlling shareholder | Legal representative/person in charge of the unit | Date of establishment | Organization code | Main business |
| Guangzhou Haihao Investment Co., Ltd | Xue Hua | September 27, 2006 | 91440113793877530G | Enterprise's own capital investment; commodity wholesale trade (except for licensed commodities); commodity retail trade (except for licensed commodities); import and export of goods (except for franchised and controlled commodities); technology import and export |
| Equity situation of other domestic and overseas listed companies that the controlling shareholder controls and participates in during the reporting period | No | |||
Change of controlling shareholder during the reporting period
□Applicable ? Not applicable
There was no change in the controlling shareholder of the company during the reporting period.
3. The actual controller of the company and those acting in concert
Nature of actual controller: domestic natural personType of actual controller: natural person
| Name of actual controller | Relationship with the actual controller | Nationality | Whether to obtain the right of abode in other countries or regions |
| Xue Hua | Myself | China | No |
| Main occupation and position | Chairman and President (General Manager) | ||
| Domestic and overseas listed companies that have held holdings in the past 10 years | Not applicable | ||
Change of actual controller during the reporting period
□Applicable ? Not applicable
The actual controller of the company did not change during the reporting period.Block diagram of the property rights and control relationship between the company and the actual controller
The actual controller controls the company through trust or other asset management methods
□Applicable ? Not applicable
4. The accumulated pledged shares of the company's controlling shareholder or the largest shareholder andits concerted parties account for 80% of the company's shares held by them
□Applicable ? Not applicable
5. Other corporate shareholders holding more than 10% of the shares
□Applicable ? Not applicable
6. Restricted shareholding reduction of controlling shareholders, actual controllers, restructuring partiesand other commitment entities
□Applicable ? Not applicable
IV. The specific implementation of share repurchase during the reporting periodProgress in the implementation of share repurchase?Applicable □ Not applicable
| Program disclosure time | Number of shares to be repurchased (shares) | Percentage of total share capital | Amount to be repurchased (ten thousand yuan) | Proposed repurchase period | Repurchase use | Number of shares repurchased (shares) | The proportion of the number of repurchased shares to the underlying shares involved in the equity incentive plan (if any) |
| November 01, 2023 | 5,454,545 to 9,090,909 | 0.33% to 0.55% | 30,000 to 50,000 | Not more than 3 months from the date when the board of directors approves the share repurchase plan | Equity Incentive Plan and/or Employee Stock Ownership Plan | 6,779,661 | 100.00% of the 2024 Employee Stock Ownership Plan |
Note:
1. On October 31, 2023, the Board of Directors reviewed and approved the "Proposal on the Share RepurchasePlan of the Company", agreeing that the repurchase amount of the Company shall not be less than RMB 300million and not more than RMB 500 million.
2. When the repurchase plan expires on January 31, 2024, the company has repurchased 6,779,661 shares througha centralized bidding transaction through a special securities repurchase account, accounting for 0.41% of thecompany's total share capital. The total transaction amount is 300,057,977.88 yuan (excluding transaction costs).The total transaction amount meets the requirements of the repurchase plan, and the repurchase plan has beenimplemented.
3. On April 30, 2024, 6,715,461 shares of the above repurchased shares will be transferred to the 2024 EmployeeStock Ownership Plan by way of non-trading transfer.The progress of the implementation of the use of centralized bidding transactions to reduce the shareholding ofrepurchased shares
□Applicable ? Not applicable
Section Ⅷ Relevant Information on Preferred Shares
□Applicable ? Not applicable
During the reporting period, the company did not have preferred shares.
Section Ⅸ Bond Related Information
□Applicable ? Not applicable
Section X Financial ReportAudit report
| Type of audit opinion | Standard unqualified opinion |
| Audit report signing date | April 18, 2025 |
| Audit institution name | Grant Thornton Zhitong Certified Public Accountants LLP |
| Audit report number | GTCNSZ（2025）NO. 440A013352 |
| CPA name | Li Xujia, Qiu Shuntong |
Auditor’s Report
To the Shareholders of Guangdong Haid Group Co., Limited,I. OpinionWe have audited the financial statements of Guangdong Haid Group Co., Limited (the “Company”), whichcomprise the consolidated balance sheet as at December 31, 2024, and the consolidated income statement,consolidated statement of changes in shareholders’ equity and consolidated statement of cash flows for the yearthen ended, and the notes to the consolidated financial statements.In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated andthe Company’s financial position as at December 31, 2024, and the consolidated and the Company’s financialperformance and cash flows for the year then ended in accordance with Accounting Standards for BusinessEnterprises.II. Basis for OpinionWe conducted our audit in accordance with China Standards on Auditing. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement sectionof our report. We are independent of the Company in accordance with the Code of Ethics for Chinese CertifiedPublic Accountant (the “Ethics Code”) together with the ethical requirements that are relevant to our audit of thefinancial statements, and we fulfilled our other ethical responsibilities in accordance with these requirements andthe Ethics Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our opinion.III. Key audit mattersThe key audit matters are those matters that, in our professional judgment, are of most significance in our audit ofthe financial statements of the current period. These matters are addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion onthese matters.
(I) Revenue RecognitionPlease refer to Note III. 29 and Note V. 53 in the Notes to the Financial Statements for the disclosure ofrevenue recognition.
1. Description
The Company is mainly engaged in feed production and sales. We identified revenue recognition as a keyaudit matter because operating revenue is one of the Company’s key performance indicators, and there is aninherent risk that management may manipulate the timing of revenue recognition to achieve specific goals orexpectations.
2. How Our Audit Addressed the Key Audit Matter
(1) We understood and evaluated the design effectiveness of internal controls related to revenue recognition.We tested the operating effectiveness of key internal controls.
(2) We assessed whether the identification of performance obligations, the allocation of transaction prices,and the determination of when control of the related goods or services is transferred were consistent with theCompany’s business model and in compliance with the applicable Accounting Standards for BusinessEnterprises.
(3) We performed analytical procedures to evaluate the reasonableness of changes in revenue and grossmargin; We examined the monthly average sales price of the Company’s major products and compared themwith the corresponding data from the prior period.
(4) We reviewed the profile of the key customers and searched their relevant information through publicchannels to assess whether there is any related-party relationship with the Company.
(5) To test the authenticity and completeness of revenue, we inspected the supporting documents related torevenue recognition, and reviewed the relevant documents. Additionally, we reconciled and analyzed thesales data within the Company’s logistics system with the information in the financial system.
(6) To evaluate the accuracy and completeness of revenue, we performed confirmation procedures onrevenue.
(7) We performed revenue cut-off testing as of the balance sheet date to evaluate whether revenue wasrecognized in the appropriate period.
(II) Expected Credit Losses on Accounts ReceivablePlease refer to Note III. 11 (6) and Note V. 4 in the Notes to the Financial Statements for the disclosure ofexpected credit losses on accounts receivable.
1. Description
The Company’s management evaluated the expected credit losses on accounts receivable both individuallyand collectively, by considering past events, current situations and forecasts of future economic trends.Except for accounts receivable with provision of bad and doubtful debts made individually, the managementclassified the accounts receivable into corresponding portfolios based on similar credit risk characteristics.For these portfolios, the management prepared comparison table of the accounts receivable aging andexpected credit loss rate based on the historical credit losses in conjunction with the current situation andpredictions of future economic conditions to calculate the expected credit losses.We identified expected credit losses on accounts receivable as a key audit matter because the Company’sprocess involved significant accounting estimates and judgments to determine the expected credit losses, andtheir impact on the financial statements was material.
2. How Our Audit Addressed the Key Audit Matter
(1) We understood and evaluated the design effectiveness of internal controls related to expected creditlosses on accounts receivable. We tested the operating effectiveness of key internal controls.
(2) For accounts receivable that were measured expected credit losses based on portfolio of credit riskcharacteristics, we evaluated the appropriateness of the portfolio classification, reviewed the appropriatenessof the historical losses rate and prospective adjustment calculated using the migration rate model, andassessed whether the expected credit losses were adequately determined.
(3) We selected samples based on the distribution of accounts receivable as of the balance sheet date and therevenue for the current year, and performed confirmation procedure on these accounts receivable. We thencompared the confirmation results with the Company’s book records.
(4) For accounts receivables with significant balances as of balance sheet date or with long aging, weselected samples to examine the customers’ operating situation, historical payment records and subsequentpayments made after the balance sheet date.(III) Inventory ProvisionPlease refer to Note III. 13 and Note V.7 in the Notes to the Financial Statements for disclosure of inventoryprovision.
1. Description
The Company measures its inventories at the lower of cost and net realizable value. Net realizable value isdefined as the estimated selling price less the estimated costs to completion, estimated selling expenses andrelevant tax expenses. The Company determines net realizable value based on conclusive evidence,considering the purpose for holding the inventories and the impact of subsequent events after the balancesheet date.We identified inventory provision as a key audit matter because the inventory balance was material as atDecember 31, 2024 and determining the net realizable value required significant judgment from themanagement.
2. How Our Audit Addressed the Key Audit Matter
(1) We understood, evaluated and tested the design and operating effectiveness of internal controls related toinventory.
(2) We performed inventory observation procedures to verify the quantity and condition of the inventories.
(3) We obtained the inventory provision calculation schedule, and performed inventory provision testing toanalyze whether the inventory provision was adequate.
(4) We obtained the inventory list as of December 31, 2024. We performed analytical review of inventorieswith long aging, considering their condition and evaluated the appropriateness of inventory provision.
(5) For inventory provision accrued in prior year, we inspected its movement in the current period.
(6) For products with available open market price, we selected samples to perform independent research andcompared the open market price to the Company’s estimated selling price. For products without availableopen market price, we compared the Company’s estimated selling price to their most recent actual sales price,the actual sales price in the subsequent period or the actual sales price of similar products, to evaluate if theinventory provision was adequate.
IV. Other InformationThe Company’s management is responsible for the other information. The other information comprises all ofthe information included in the Company’s 2024 Annual Report other than the financial statements and ourauditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for Financial StatementsThe Company’s management is responsible for the preparation of the financial statements that give a fairview in accordance with the Accounting Standards for Business Enterprises, and for designing, implementingand maintaining such internal control as the management determines is necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, the management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the management either intends to liquidate the Company or to ceaseoperations, or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Auditor’s Responsibilities for Audit of Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with China Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.As part of an audit in accordance with CAS, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the management.
(4) Concluded on the appropriateness of the management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthat may cast significant doubt on the Company’s ability to continue as a going concern. If we concluded thata material uncertainty exists, we are required to draw attention in our auditor’s report to the relateddisclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, furtherevents or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express an opinion on the financial statements. We are responsible for thedirection, supervision and performance of the group audit. We remain solely responsible for our auditopinion.We communicated with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identified during our audit.We also provided those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and communicated with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.From the matters communicated with those charged with governance, we determine those matters that are ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter should notbe communicated in our report because the adverse consequences of doing so would reasonably be expectedto outweigh the public interest benefits of such communication.
| Consolidated and Company Balance Sheet | |||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | ||||||
| Item | As at 31/12/2024 | As at 31/12/2023 | |||||
| Consolidated | Company | Consolidated | Company | ||||
| Current assets: | |||||||
| Cash at bank and on hand | 3,478,256,875.63 | 1,349,771,214.43 | 5,476,452,778.79 | 3,234,318,586.60 | |||
| Held-for-trading financial assets | 4,662,427,829.82 | 3,916,158,115.71 | 1,286,752,498.95 | 505,326,164.35 | |||
| Notes receivable | 26,837,359.79 | 18,335,530.49 | 12,321,522.00 | - | |||
| Accounts receivable | 2,125,872,345.43 | 3,741.00 | 2,056,713,658.36 | 23,452.94 | |||
| Accounts receivable financing | - | - | - | - | |||
| Prepayments | 628,293,443.54 | 10,466,995.29 | 743,154,926.15 | 396,515.66 | |||
| Other receivables | 877,870,681.54 | 9,964,613,349.06 | 957,972,560.29 | 11,769,046,063.77 | |||
| Including: Interest receivables | - | - | - | - | |||
| Dividend receivables | - | 359,974,200.00 | - | - | |||
| Inventories | 11,290,384,103.30 | 88,344,171.47 | 9,935,863,743.13 | 63,607,408.77 | |||
| Including: Data resources | - | - | - | - | |||
| Contract assets | - | - | - | - | |||
| Assets held-for-sale | 641,999.09 | 641,999.09 | 596,427.47 | 596,427.47 | |||
| Non-current assets due within one year | 3,841,618.60 | - | 8,971,921.24 | - | |||
| Other current assets | 394,689,868.63 | 34,060,885.46 | 426,725,263.07 | 13,385,024.08 | |||
| Total current assets | 23,489,116,125.37 | 15,382,396,002.00 | 20,905,525,299.45 | 15,586,699,643.64 | |||
| Non-current assets: | |||||||
| Debt investments | - | - | - | - | |||
| Loans and advances to customers | - | - | 689,500.00 | - | |||
| Other debt investments | - | - | - | - | |||
| Long-term receivables | 169,130,714.29 | 18,845,785.23 | 177,005,523.56 | 18,238,885.23 | |||
| Net asset of defined benefit plans | - | - | - | - |
| Long-term equity investments | 280,217,892.86 | 11,123,066,584.65 | 216,673,525.00 | 10,977,958,460.08 |
| Investments in other equity instruments | - | - | - | - |
| Other non-current financial assets | 238,380,604.68 | 223,504,503.57 | 248,683,611.24 | 233,809,624.13 |
| Investment properties | 92,624,790.99 | 20,834,616.72 | 29,823,321.44 | 22,171,626.54 |
| Fixed assets | 16,930,687,726.99 | 362,053,853.38 | 16,393,917,170.28 | 343,886,373.06 |
| Construction in progress | 426,719,987.46 | 55,777,553.85 | 687,708,201.87 | 10,544,336.34 |
| Productive biological assets | 465,887,321.92 | - | 446,629,879.99 | - |
| Right-of-use assets | 2,769,825,756.21 | 524,883,644.72 | 2,360,221,694.26 | 65,331,506.40 |
| Intangible assets | 1,796,432,121.25 | 150,125,142.55 | 1,766,150,810.90 | 116,227,002.84 |
| Including: Data resources | - | - | - | - |
| Development costs | 46,582,788.74 | 43,586,516.01 | 30,107,986.40 | 20,264,774.70 |
| Including: Data resources | - | - | - | - |
| Goodwill | 245,178,825.99 | - | 344,823,501.92 | - |
| Long-term deferred expenses | 295,462,632.97 | 134,444,955.06 | 191,164,152.91 | 46,541,076.86 |
| Deferred tax assets | 726,995,506.26 | 27,157,162.74 | 673,449,861.92 | 4,362,774.63 |
| Other non-current assets | 167,343,863.72 | 4,967,313.80 | 274,161,734.47 | 3,219,336.96 |
| Total non-current assets | 24,651,470,534.33 | 12,689,247,632.28 | 23,841,210,476.16 | 11,862,555,777.77 |
| Total assets | 48,140,586,659.70 | 28,071,643,634.28 | 44,746,735,775.61 | 27,449,255,421.41 |
| Consolidated and Company Balance Sheet (continued) | ||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | |||||||
| Item | As at 31/12/2024 | As at 31/12/2023 | ||||||
| Consolidated | Company | Consolidated | Company | |||||
| Current liabilities: | ||||||||
| Short-term loans | 251,739,887.29 | - | 1,396,136,213.00 | 846,961,821.29 | ||||
| Held-for-trading financial liabilities | 77,390,252.93 | 172,234.37 | 22,203,844.99 | 3,461,597.27 | ||||
| Notes payable | 4,995,201,488.07 | 4,995,201,488.07 | 5,897,614,880.98 | 5,897,614,880.98 | ||||
| Accounts payable | 5,483,061,495.95 | 113,451,141.04 | 4,743,294,500.05 | 48,268,851.32 | ||||
| Advances from customers | 4,248,165.06 | 498,532.00 | 5,483,153.55 | 499,559.00 | ||||
| Contract liabilities | 2,251,063,282.58 | 103,863.84 | 1,922,213,731.37 | 8,197.00 | ||||
| Employee benefits payable | 2,166,662,287.79 | 327,808,933.79 | 1,682,599,689.54 | 262,545,916.61 | ||||
| Taxes payable | 359,399,237.64 | 1,613,014.11 | 259,879,934.08 | 17,574,898.64 | ||||
| Other payables | 952,217,282.62 | 7,822,320,686.64 | 839,176,371.57 | 6,278,036,424.91 | ||||
| Including: Interest payables | - | - | - | - | ||||
| Dividend payables | 92,085,342.39 | - | 3,886,356.36 | - | ||||
| Liabilities held-for-sale | - | - | - | - | ||||
| Non-current liabilities due within one year | 1,229,927,887.97 | 597,692,302.50 | 1,055,201,514.58 | 446,022,586.19 | ||||
| Other current liabilities | 763,875,809.34 | 35,667,876.45 | 610,875,764.75 | 42,865,048.54 | ||||
| Total current liabilities | 18,534,787,077.24 | 13,894,530,072.81 | 18,434,679,598.46 | 13,843,859,781.75 | ||||
| Non-current liabilities: | ||||||||
| Long-term loans | 1,769,821,334.89 | 572,687,500.00 | 3,027,758,789.71 | 1,528,463,333.25 | ||||
| Debentures payable | - | - | - | - | ||||
| Lease liabilities | 2,015,568,878.94 | 462,036,089.00 | 1,619,548,546.37 | 43,379,402.68 | ||||
| Long-term payables | 67,132,880.83 | - | 65,410,255.77 | - | ||||
| Long-term employee benefits payable | 142,173,512.17 | 16,736,269.33 | 113,458,359.73 | 18,148,364.39 | ||||
| Provisions | - | - | - | - |
| Deferred income | 349,550,038.04 | 23,494,128.00 | 334,812,148.89 | 27,601,511.96 |
| Deferred tax liabilities | 140,158,361.24 | - | 185,756,499.56 | - |
| Other non-current liabilities | 24,960,906.42 | 13,000,000.00 | 53,994,651.73 | 26,000,000.00 |
| Total non-current liabilities | 4,509,365,912.53 | 1,087,953,986.33 | 5,400,739,251.76 | 1,643,592,612.28 |
| Total liabilities | 23,044,152,989.77 | 14,982,484,059.14 | 23,835,418,850.22 | 15,487,452,394.03 |
| Share capital | 1,663,749,970.00 | 1,663,749,970.00 | 1,663,749,970.00 | 1,663,749,970.00 |
| Other equity instruments | - | - | - | - |
| Capital reserve | 5,151,357,352.87 | 5,549,414,081.28 | 5,415,541,083.59 | 5,799,984,845.21 |
| Less: Treasury stock | 300,081,705.48 | 300,081,705.48 | 1,092,402,857.64 | 1,092,402,857.64 |
| Other comprehensive income | 356,509,145.52 | -648,028.08 | 299,040,374.31 | - |
| Specific reserve | 835,404.85 | - | 398,575.53 | - |
| Surplus reserve | 831,874,985.00 | 831,874,985.00 | 831,874,985.00 | 831,874,985.00 |
| General risk provision | 2,389,821.53 | - | 2,599,780.20 | - |
| Retained earnings | 16,198,667,745.26 | 5,344,850,272.42 | 12,526,305,153.20 | 4,758,596,084.81 |
| Total equity attributable to shareholders of the parent company | 23,905,302,719.55 | 13,089,159,575.14 | 19,647,107,064.19 | 11,961,803,027.38 |
| Non-controlling interests | 1,191,130,950.38 | - | 1,264,209,861.20 | - |
| Total shareholders' equity | 25,096,433,669.93 | 13,089,159,575.14 | 20,911,316,925.39 | 11,961,803,027.38 |
| Total liabilities and shareholders' equity | 48,140,586,659.70 | 28,071,643,634.28 | 44,746,735,775.61 | 27,449,255,421.41 |
Legal representative: Xue Hua Person in charge of accounting function: Yang ShaolinPerson in charge of accounting department: Yang Shaolin
| Consolidated and Company Income Statement | ||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | |||||||
| Item | Year ended 31/12/2024 | Year ended 31/12/2023 | ||||||
| Consolidated | Company | Consolidated | Company | |||||
| I. Operating income | 114,601,056,662.29 | 3,215,196,573.23 | 116,117,168,742.97 | 2,939,482,749.35 | ||||
| Less: Operating costs | 101,639,577,488.17 | 1,330,493,047.25 | 106,280,618,465.68 | 1,276,307,830.79 | ||||
| Taxes and surcharges | 148,670,999.79 | 7,091,301.56 | 138,554,646.26 | 4,375,510.48 | ||||
| Selling and distribution expenses | 2,608,350,800.44 | - | 2,259,143,012.20 | - | ||||
| General and administrative expenses | 3,187,514,888.49 | 655,301,986.87 | 2,616,739,147.40 | 464,769,331.78 | ||||
| Research and development expenses | 860,035,315.34 | 242,132,198.68 | 784,880,414.03 | 241,409,129.02 | ||||
| Financial expenses | 369,711,343.72 | -108,395,935.44 | 512,506,390.25 | -155,125,953.65 | ||||
| Including: Interest expenses | 294,041,457.45 | 190,417,613.87 | 434,808,591.01 | 276,928,794.58 | ||||
| Interest income | 63,367,108.52 | 316,849,159.06 | 64,284,395.34 | 438,752,390.96 | ||||
| Add: Other income | 133,786,822.95 | 28,029,335.70 | 112,638,285.79 | 11,701,376.58 | ||||
| Investment income ("-" for losses) | -8,829,799.95 | 486,836,062.12 | 245,645,976.16 | 522,317,030.64 | ||||
| Including: Income from investment in associates and joint ventures | 39,786,542.41 | -296,743.27 | 49,850,706.07 | -357,434.09 | ||||
| Income from derecognition of financial assets measured at amortized cost ("-" for losses) | -746,985.21 | - | -521,219.60 | - | ||||
| Net exposure hedge income ("-" for losses) | - | - | - | - | ||||
| Gains from changes in fair value ("-" for losses) | 25,285,899.79 | 3,213,801.21 | -15,159,408.90 | 2,146,686.33 | ||||
| Credit losses ("-" for losses) | -264,471,205.52 | 92,100.60 | -197,850,781.23 | 1,258,597.80 | ||||
| Impairment losses ("-" for losses) | -219,506,218.82 | -71,195,498.37 | -121,219,210.22 | -8,112,320.66 |
| Gains from assets disposal ("-" for losses) | 53,544,318.29 | -200,935.33 | 3,014,883.68 | -2,938,420.39 |
| II. Operating profit ("-" for losses) | 5,507,005,643.08 | 1,535,348,840.24 | 3,551,796,412.43 | 1,634,119,851.23 |
| Add: Non-operating income | 68,867,810.54 | 1,007,872.75 | 65,367,813.81 | 21,754.90 |
| Less: Non-operating expenses | 182,190,876.85 | 15,990,312.51 | 99,011,582.34 | 2,652,944.26 |
| III. Profit before income tax ("-" for losses) | 5,393,682,576.77 | 1,520,366,400.48 | 3,518,152,643.90 | 1,631,488,661.87 |
| Less: Income tax expenses | 717,586,978.50 | 102,269,327.87 | 646,637,019.68 | 136,301,370.76 |
| IV. Net profit for the year ("-" for losses) | 4,676,095,598.27 | 1,418,097,072.61 | 2,871,515,624.22 | 1,495,187,291.11 |
| (I) Classification according to operation continuity | ||||
| Including: Net profit from continuing operations ("-" for net loss) | 4,676,095,598.27 | 1,418,097,072.61 | 2,871,515,624.22 | 1,495,187,291.11 |
| Net profit from discontinued operations ("-" for net loss) | - | - | - | - |
| (II) Attributable to: | ||||
| Including: Shareholders of the parent company ("-" for net loss) | 4,503,995,518.39 | 1,418,097,072.61 | 2,741,256,374.98 | 1,495,187,291.11 |
| Non-controlling interests ("-" for net loss) | 172,100,079.88 | - | 130,259,249.24 | - |
| V. Other comprehensive income, net of tax | 46,538,882.52 | -648,028.08 | -8,102,486.23 | - |
| Other comprehensive income (net of tax) attributable to shareholders of the parent company | 57,468,771.21 | -648,028.08 | -1,009,394.14 | - |
| (I) Items that will not be reclassified to profit or loss | ||||
| (II) Items that may be reclassified to profit or loss | 57,468,771.21 | -648,028.08 | -1,009,394.14 | - |
| 1. Other comprehensive income that can be converted to profit or loss under the equity method | -2,669,044.27 | - | - | - |
| 2. Cash flow hedging reserves | 241,791,178.43 | -648,028.08 | 14,324,188.55 | - |
| 3. Translation differences arising from translation of foreign currency financial statements | -181,653,362.95 | - | -15,333,582.69 | - |
| Other comprehensive income (net of tax) attributable to non-controlling interests | -10,929,888.69 | - | -7,093,092.09 | - |
| VI. Total comprehensive income for the year | 4,722,634,480.79 | 1,417,449,044.53 | 2,863,413,137.99 | 1,495,187,291.11 |
| Attributable to shareholders of the parent company | 4,561,464,289.60 | 1,417,449,044.53 | 2,740,246,980.84 | 1,495,187,291.11 |
| Attributable to non-controlling interests | 161,170,191.19 | - | 123,166,157.15 | - |
| VII. Earnings per share | ||||
| 1. Basic earnings per share | 2.71 | 1.66 | ||
| 2. Diluted earnings per share | 2.70 | 1.66 |
Legal representative: Xue Hua Person in charge of accounting function: Yang ShaolinPerson in charge of accounting department: Yang Shaolin
| Consolidated and Company Cash Flow Statement | ||||
| For the year ended December 31, 2024 | ||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | |||
| Item | Year ended 31/12/2024 | Year ended 31/12/2023 | ||
| Consolidated | Company | Consolidated | Company | |
| I. Cash flows from operating activities | ||||
| Cash received from sales of goods and rendering of services | 116,288,967,039.94 | 3,168,959,435.61 | 117,485,829,661.53 | 3,016,767,869.58 |
| Cash received from interest, handling fee and commission | 56,208,399.10 | - | 66,569,305.40 | - |
| Refund of taxes | 24,169,583.78 | - | 29,563,190.49 | 620,671.66 |
| Net decrease in loans and advances to customers | 80,140,331.90 | - | 128,871,293.50 | - |
| Cash received from other operating activities | 1,357,948,263.00 | 145,106,586,154.11 | 1,365,246,170.40 | 142,888,112,079.35 |
| Sub-total of cash inflows from operating activities | 117,807,433,617.72 | 148,275,545,589.72 | 119,076,079,621.32 | 145,905,500,620.59 |
| Cash paid for goods and services | 99,850,308,469.21 | 699,336,789.90 | 97,219,238,071.90 | 703,342,161.19 |
| Net increase in loans and advances to customers | - | - | - | - |
| Cash paid to and on behalf of employees | 6,296,452,000.72 | 485,613,285.17 | 5,650,761,173.21 | 584,376,460.25 |
| Taxes payments | 1,038,486,646.44 | 177,726,432.32 | 974,104,444.25 | 33,761,063.13 |
| Cash paid for other operating activities | 2,625,931,126.30 | 142,689,310,866.17 | 2,533,601,232.42 | 138,778,643,177.40 |
| Sub-total of cash outflows for operating activities | 109,811,178,242.67 | 144,051,987,373.56 | 106,377,704,921.78 | 140,100,122,861.97 |
| Net cash flows from operating activities | 7,996,255,375.05 | 4,223,558,216.16 | 12,698,374,699.54 | 5,805,377,758.62 |
| II. Cash flows from investing activities | ||||
| Cash received from disposal of investments | 17,096,194,296.74 | 9,105,228,376.96 | 5,344,558,061.06 | 204,556,476.72 |
| Cash received from investment gains | 66,958,758.23 | 374,814,564.6 | 245,375,459.4 | 514,172,039.8 |
| 9 | 8 | 5 | ||
| Cash received from disposal of fixed assets, intangible assets and other long-term assets | 155,745,226.93 | 172,858.95 | 15,826,538.51 | 774,532.70 |
| Net proceeds from disposal of subsidiaries and other business units | 58,274,059.80 | - | - | - |
| Cash received from other investing activities | 22,888,411.53 | - | 50,019,465.23 | - |
| Sub-total of cash inflows from investing activities | 17,400,060,753.23 | 9,480,215,800.60 | 5,655,779,524.28 | 719,503,049.27 |
| Payment for acquisition of fixed assets, intangible assets and other long-term assets | 3,136,747,295.93 | 281,010,518.68 | 3,353,272,322.86 | 81,704,729.62 |
| Payment for acquisition of investments | 20,600,132,997.25 | 12,874,434,552.42 | 6,049,784,835.23 | 1,967,484,032.67 |
| Net payments for acquisition of subsidiaries and other business units | 6,081,935.84 | - | 49,243,279.60 | - |
| Cash paid for other investing activities | 62,604,501.99 | - | 23,453,842.66 | - |
| Sub-total of cash outflows for investing activities | 23,805,566,731.01 | 13,155,445,071.10 | 9,475,754,280.35 | 2,049,188,762.29 |
| Net cash flows from investing activities | -6,405,505,977.78 | -3,675,229,270.50 | -3,819,974,756.07 | -1,329,685,713.02 |
| III. Cash flows from financing activities | ||||
| Cash received from investors | 76,800,000.00 | - | 200,497,037.71 | 153,147,037.71 |
| Including: Proceeds from non-controlling shareholders of subsidiaries | 76,800,000.00 | - | 47,350,000.00 | - |
| Cash received from borrowings | 7,248,186,028.12 | 4,865,080,020.52 | 9,804,523,690.84 | 6,417,302,695.67 |
| Cash received from other financing activities | 425,519,628.41 | 371,883,277.75 | 358,652,860.27 | 314,882,047.10 |
| Sub-total of cash inflows from financing activities | 7,750,505,656.53 | 5,236,963,298.27 | 10,363,673,588.82 | 6,885,331,780.48 |
| Repayments of borrowings | 9,496,523,043.54 | 6,557,666,982.34 | 13,572,759,670.89 | 7,681,893,795.71 |
| Payment for dividends, profit distributions or interests | 1,282,219,907.31 | 1,020,923,975.71 | 1,282,542,853.15 | 1,028,099,989.14 |
| Including: Dividends and profits paid to non-controlling shareholders of subsidiaries | 145,187,839.06 | - | 98,854,783.20 | - |
| Cash paid for other financing activities | 582,230,094.0 | 93,763,304.93 | 1,161,542,718 | 358,856,353.5 |
| 3 | .88 | 0 | ||
| Sub-total of cash outflows for financing activities | 11,360,973,044.88 | 7,672,354,262.98 | 16,016,845,242.92 | 9,068,850,138.35 |
| Net cash flows from financing activities | -3,610,467,388.35 | -2,435,390,964.71 | -5,653,171,654.10 | -2,183,518,357.87 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -20,585,936.88 | 4,414,231.41 | 19,871,133.73 | -435,653.23 |
| V. Net increase in cash and cash equivalents | -2,040,303,927.96 | -1,882,647,787.64 | 3,245,099,423.10 | 2,291,738,034.50 |
| Add: Cash and cash equivalents at the beginning of the period | 5,367,248,673.44 | 3,232,419,002.07 | 2,122,149,250.34 | 940,680,967.57 |
| VI. Cash and cash equivalent at the end of the period | 3,326,944,745.48 | 1,349,771,214.43 | 5,367,248,673.44 | 3,232,419,002.07 |
Legal representative: Xue Hua Person in charge of accounting function: Yang ShaolinPerson in charge of accounting department: Yang Shaolin
| Consolidated Statement of Changes in Shareholders' Equity | |||||||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | ||||||||||||
| Item | Year ended 31/12/2024 | ||||||||||||
| Attributable to shareholders' equity of the parent company | Non-controlling interests | Total shareholders' equity | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserve | General risk provision | Retained earnings | |||||
| Preference share | Perpetual debt | Others | |||||||||||
| I. Balance at the end of last year | 1,663,749,970.00 | - | - | - | 5,415,541,083.59 | 1,092,402,857.64 | 299,040,374.31 | 398,575.53 | 831,874,985.00 | 2,599,780.20 | 12,526,305,153.20 | 1,264,209,861.20 | 20,911,316,925.39 |
| Add: Changes in accounting policies | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Correction of prior period errors | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Adjustments for business combinations involving enterprises under common control | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| II. Balance at the beginning of the year | 1,663,749,970.00 | - | - | - | 5,415,541,083.59 | 1,092,402,857.64 | 299,040,374.31 | 398,575.53 | 831,874,985.00 | 2,599,780.20 | 12,526,305,153.20 | 1,264,209,861.20 | 20,911,316,925.39 |
| III. Changes in equity during the year ( "- " for decrease) | - | - | - | - | -264,183,730.72 | -792,321,152.16 | 57,468,771.21 | 436,829.32 | - | -209,958.67 | 3,672,362,592.06 | -73,078,910.82 | 4,185,116,744.54 |
| (I) Total comprehensive income | - | - | - | - | - | - | 57,468,771.21 | - | - | - | 4,503,995,518.39 | 161,170,191.19 | 4,722,634,480.79 |
| (II) Shareholders' contributions and decrease of capital | - | - | - | - | -265,308,610.89 | -792,321,152.16 | - | - | - | - | - | 39,637,723.08 | 566,650,264.35 |
| 1. Contribution by ordinary shareholders | - | - | - | - | - | - | - | - | - | - | - | 107,600,000.00 | 107,600,000.00 |
| 2. Contribution by holders of other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | |
| 3. Share based payment included in shareholders' equity | - | - | - | - | -271,624,071.72 | -792,321,152.16 | - | - | - | - | - | 3,983,930.38 | 524,681,010.82 |
| 4. Others | - | - | - | - | 6,315,460.83 | - | - | - | - | - | - | -71,946,207.30 | -65,630,746.47 |
| (III) Appropriation of profits | - | - | - | - | - | - | - | - | - | -209,958.67 | -831,632,926.33 | -273,886,825.09 | -1,105,729,710.09 |
| 1. Appropriation for surplus reserve | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 2. Appropriation for general risk provision | - | - | - | - | - | - | - | - | - | -209,958.67 | 209,958.67 | - | - |
| 3. Distributions to shareholders | - | - | - | - | - | - | - | - | - | - | -831,842,885.00 | -273,886,825.09 | -1,105,729,710.09 |
| 4. Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| (IV) Transfer within equity | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 1. Transfer of capital reserve to share capital | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 2. Transfer of surplus reserve to share capital | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 3. Surplus reserve for making up losses | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 4. Transfer the changes in defined benefit plan into retained earnings | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 5. Transfer of other comprehensive income to retained earning | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 6. Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| (V) Specific reserve | - | - | - | - | - | - | - | 436,829.32 | - | - | - | - | 436,829.32 |
| 1. Appropriation during the year | - | - | - | - | - | - | - | 555,173.73 | - | - | - | - | 555,173.73 |
| 2. Utilization during the year | - | - | - | - | - | - | - | -118,344.41 | - | - | - | - | -118,344.41 |
| (VI) Others | - | - | - | - | 1,124,880.17 | - | - | - | - | - | - | - | 1,124,880.17 |
| IV. Balance at the end of the year | 1,663,749,970.00 | - | - | - | 5,151,357,352.87 | 300,081,705.48 | 356,509,145.52 | 835,404.85 | 831,874,985.00 | 2,389,821.53 | 16,198,667,745.26 | 1,191,130,950.38 | 25,096,433,669.93 |
| Consolidated Statement of Changes in Shareholders' Equity (continued) | |||||||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | ||||||||||||
| Item | Year ended 31/12/2023 | ||||||||||||
| Attributable to shareholders' equity of the parent company | Non-controlling interests | Total shareholders' equity | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserve | General risk provision | Retained earnings | |||||
| Preference share | Perpetual debt | Others | |||||||||||
| I. Balance at the end of last year | 1,661,161,061.00 | - | - | - | 5,300,061,077.97 | 792,321,152.16 | 300,049,768.45 | - | 830,580,530.50 | 4,834,904.00 | 10,528,173,146.82 | 1,527,333,863.26 | 19,359,873,199.84 |
| Add: Changes in accounting policies | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Correction of prior period errors | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Adjustments for business combinations involving enterprises under common control | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| II. Balance at the beginning of the year | 1,661,161,061.00 | - | - | - | 5,300,061,077.97 | 792,321,152.16 | 300,049,768.45 | - | 830,580,530.50 | 4,834,904.00 | 10,528,173,146.8 | 1,527,333,863.26 | 19,359,873,199.84 |
| 2 | |||||||||||||
| III. Changes in equity during the year ( "- " for decrease) | 2,588,909.00 | - | - | - | 115,480,005.62 | 300,081,705.48 | -1,009,394.14 | 398,575.53 | 1,294,454.50 | -2,235,123.80 | 1,998,132,006.38 | -263,124,002.06 | 1,551,443,725.55 |
| (I) Total comprehensive income | - | - | - | - | - | - | -1,009,394.14 | - | - | - | 2,741,256,374.98 | 123,166,157.15 | 2,863,413,137.99 |
| (II) Shareholders' contributions and decrease of capital | 2,588,909.00 | - | - | - | 115,480,005.62 | 300,081,705.48 | - | - | - | - | - | -286,828,963.65 | -468,841,754.51 |
| 1. Contribution by ordinary shareholders | 2,588,909.00 | - | - | - | 150,558,128.71 | - | - | - | - | - | - | 47,350,000.00 | 200,497,037.71 |
| 2. Contribution by holders of other equity instruments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 3. Share based payment included in shareholders' equity | - | - | - | - | 12,331,583.33 | - | - | - | - | - | - | 2,183,419.47 | 14,515,002.80 |
| 4. Others | - | - | - | - | -47,409,706.42 | 300,081,705.48 | - | - | - | - | - | -336,362,383.12 | -683,853,795.02 |
| (III) Appropriation of profits | - | - | - | - | - | - | - | - | 1,294,454.50 | -2,235,123.80 | -743,124,368.60 | -99,461,195.56 | -843,526,233.46 |
| 1. Appropriation for surplus reserve | - | - | - | - | - | - | - | - | 1,294,454.50 | - | -1,294,454.50 | - | - |
| 2. Appropriation for general risk provision | - | - | - | - | - | - | - | - | - | -2,235,123.80 | 2,235,123.80 | - | - |
| 3. Distributions to shareholders | - | - | - | - | - | - | - | - | - | - | -744,065,037.90 | -99,461,195.56 | -843,526,233.46 |
| 4. Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| (IV) Transfer within equity | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 1. Transfer of capital reserve to share capital | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 2. Transfer of surplus reserve to share capital | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 3. Surplus reserve for making up losses | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 4. Transfer the changes in defined benefit plan into retained earnings | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 5. Transfer of other comprehensive income to retained earning | - | - | - | - | - | - | - | - | - | - | - | - | - |
| 6. Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| (V) Specific reserve | - | - | - | - | - | - | - | 398,575.53 | - | - | - | - | 398,575.53 |
| 1. Appropriation during the year | - | - | - | - | - | - | - | 398,575.53 | - | - | - | - | 398,575.53 |
| 2. Utilization during the year | - | - | - | - | - | - | - | - | - | - | - | - | - |
| (VI) Others | - | - | - | - | - | - | - | - | - | - | - | - | - |
| IV. Balance at the end of the year | 1,663,749,970.00 | - | - | - | 5,415,541,083.59 | 1,092,402,857.64 | 299,040,374.31 | 398,575.53 | 831,874,985.00 | 2,599,780.20 | 12,526,305,153.20 | 1,264,209,861.20 | 20,911,316,925.39 |
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting department: Yang Shaolin
| Company Statement of Changes in Shareholders' Equity | |||||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | ||||||||||
| Item | Year ended 31/12/2024 | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserve | Retained earnings | Total shareholders' equity | |||
| Preference share | Perpetual debt | Others | |||||||||
| I. Balance at the end of last year | 1,663,749,970.00 | - | - | - | 5,799,984,845.21 | 1,092,402,857.64 | - | - | 831,874,985.00 | 4,758,596,084.81 | 11,961,803,027.38 |
| Add: Changes in accounting policies | - | - | - | - | - | - | - | - | - | - | - |
| Correction of prior period errors | - | - | - | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - | - | - | - |
| II. Balance at the beginning of the year | 1,663,749,970.00 | - | - | - | 5,799,984,845.21 | 1,092,402,857.64 | - | - | 831,874,985.00 | 4,758,596,084.81 | 11,961,803,027.38 |
| III. Changes in equity during the year ( "- " for decrease) | - | - | - | - | -250,570,763.93 | -792,321,152.16 | -648,028.08 | - | - | 586,254,187.61 | 1,127,356,547.76 |
| (I) Total comprehensive income | - | - | - | - | - | - | -648,028.08 | - | - | 1,418,097,072.61 | 1,417,449,044.53 |
| (II) Shareholders' contributions and decrease of capital | - | - | - | - | -267,733,611.58 | -792,321,152.16 | - | - | - | - | 524,587,540.58 |
| 1. Contribution by ordinary shareholders | - | - | - | - | - | - | - | - | - | - | - |
| 2. Contribution by holders of other equity instruments | - | - | - | - | - | - | - | - | - | - | - |
| 3. Share based payment included in shareholders' equity | - | - | - | - | -267,733,611.58 | -792,321,152.16 | - | - | - | - | 524,587,540.58 |
| 4. Others | - | - | - | - | - | - | - | - | - | - | - |
| (III) Appropriation of profits | - | - | - | - | - | - | - | - | - | -831,842,885.00 | -831,842,885.00 |
| 1. Appropriation for surplus reserve | - | - | - | - | - | - | - | - | - | - | - |
| 2. Appropriation for general risk provision | - | - | - | - | - | - | - | - | - | - | - |
| 3. Distributions to shareholders | - | - | - | - | - | - | - | - | - | -831,842,885.00 | -831,842,885.00 |
| 4. Others | - | - | - | - | - | - | - | - | - | - | - |
| (IV) Transfer within equity | - | - | - | - | - | - | - | - | - | - | - |
| 1. Transfer of capital reserve to share capital | - | - | - | - | - | - | - | - | - | - | - |
| 2. Transfer of surplus reserve to share capital | - | - | - | - | - | - | - | - | - | - | - |
| 3. Surplus reserve for making up losses | - | - | - | - | - | - | - | - | - | - | - |
| 4. Transfer the changes in defined benefit plan into retained earnings | - | - | - | - | - | - | - | - | - | - | - |
| 5. Transfer of other comprehensive income to retained earning | - | - | - | - | - | - | - | - | - | - | - |
| 6. Others | - | - | - | - | - | - | - | - | - | - | - |
| (V) Specific reserve | - | - | - | - | - | - | - | - | - | - | - |
| 1. Appropriation during the year | - | - | - | - | - | - | - | - | - | - | - |
| 2. Utilization during the year | - | - | - | - | - | - | - | - | - | - | - |
| (VI) Others | - | - | - | - | 17,162,847.65 | - | - | - | - | - | 17,162,847.65 |
| IV. Balance at the end of the year | 1,663,749,970.00 | - | - | - | 5,549,414,081.28 | 300,081,705.48 | -648,028.08 | - | 831,874,985.00 | 5,344,850,272.42 | 13,089,159,575.14 |
| Company Statement of Changes in Shareholders' Equity (continued) | |||||||||||
| Prepared by: Guangdong Haid Group Co., Limited | Expressed in RMB | ||||||||||
| Item | Year ended 31/12/2023 | ||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserve | Retained earnings | Total shareholders' equity | |||
| Preference share | Perpetual debt | Others | |||||||||
| I. Balance at the end of last year | 1,661,161,061.00 | - | - | - | 5,514,740,565.56 | 792,321,152.16 | - | - | 830,580,530.50 | 4,008,768,286.10 | 11,222,929,291.00 |
| Add: Changes in accounting policies | - | - | - | - | - | - | - | - | - | - | - |
| Correction of prior period errors | - | - | - | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - | - | - | - |
| II. Balance at the beginning of the year | 1,661,161,061.00 | - | - | - | 5,514,740,565.56 | 792,321,152.16 | - | - | 830,580,530.50 | 4,008,768,286.10 | 11,222,929,291.00 |
| III. Changes in equity during the year ( "- " for decrease) | 2,588,909.00 | - | - | - | 285,244,279.65 | 300,081,705.48 | - | - | 1,294,454.50 | 749,827,798.71 | 738,873,736.38 |
| (I) Total comprehensive income | - | - | - | - | - | - | - | - | - | 1,495,187,291.11 | 1,495,187,291.11 |
| (II) Shareholders' contributions and decrease of capital | 2,588,909.00 | - | - | - | 165,100,192.21 | 300,081,705.48 | - | - | - | - | -132,392,604.27 |
| 1. Contribution by ordinary shareholders | 2,588,909.00 | - | - | - | 150,558,128.71 | - | - | - | - | - | 153,147,037.71 |
| 2. Contribution by holders of other equity instruments | - | - | - | - | - | - | - | - | - | - | - |
| 3. Share based payment included in shareholders' equity | - | - | - | - | 14,542,063.50 | - | - | - | - | - | 14,542,063.50 |
| 4. Others | - | - | - | - | - | 300,081,705.48 | - | - | - | - | -300,081,705.48 |
| (III) Appropriation of profits | - | - | - | - | - | - | - | - | 1,294,454.50 | -745,359,492.40 | -744,065,037.90 |
| 1. Appropriation for surplus reserve | - | - | - | - | - | - | - | - | 1,294,454.50 | -1,294,454.50 | - |
| 2. Appropriation for general risk provision | - | - | - | - | - | - | - | - | - | - | - |
| 3. Distributions to shareholders | - | - | - | - | - | - | - | - | - | -744,065,037.90 | -744,065,037.90 |
| 4. Others | - | - | - | - | - | - | - | - | - | - | - |
| (IV) Transfer within equity | - | - | - | - | - | - | - | - | - | - | - |
| 1. Transfer of capital reserve to share capital | - | - | - | - | - | - | - | - | - | - | - |
| 2. Transfer of surplus reserve to share capital | - | - | - | - | - | - | - | - | - | - | - |
| 3. Surplus reserve for making up losses | - | - | - | - | - | - | - | - | - | - | - |
| 4. Transfer the changes in defined benefit plan into retained earnings | - | - | - | - | - | - | - | - | - | - | - |
| 5. Transfer of other comprehensive income to retained earning | - | - | - | - | - | - | - | - | - | - | - |
| 6. Others | - | - | - | - | - | - | - | - | - | - | - |
| (V) Specific reserve | - | - | - | - | - | - | - | - | - | - | - |
| 1. Appropriation during the year | - | - | - | - | - | - | - | - | - | - | - |
| 2. Utilization during the year | - | - | - | - | - | - | - | - | - | - | - |
| (VI) Others | - | - | - | - | 120,144,087.44 | - | - | - | - | - | 120,144,087.44 |
| IV. Balance at the end of the year | 1,663,749,970.00 | - | - | - | 5,799,984,845.21 | 1,092,402,857.64 | - | - | 831,874,985.00 | 4,758,596,084.81 | 11,961,803,027.38 |
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting department: Yang Shaolin
Notes to the Financial StatementsI. Company ProfileGuangdong Haid Group Co., Limited (formerly known as "Guangdong Haid Industrial Co., Ltd." or"Guangdong Haid Group Limited", and hereinafter referred to as the "Company") is a share limitedcompany registered in Guangdong Province, listed on the Shenzhen Stock Exchange in November 2009with business license registration No.914400007578948436.The Company's headquarters is located atBuilding 1, Haid Science Park, No. 8 Longtai Street, Hualong Town, Panyu District, Guangzhou,Guangdong Province.The Company and its subsidiaries (hereinafter referred to as the "Group") operate in the feed industry, andthe main products include aquatic and livestock feed, high-quality aquatic animal seedlings, animal healthproducts, biological products, pig breeding, aquatic products and so on, covering all business chain such asresearch and development, design, production, sales and service of various products.The financial statements and notes have been approved by the 24th meeting of the sixth Board of Directorsof the Company on April 18, 2025.II. Basis of Preparation
The financial statements are prepared in accordance with the Accounting Standards for BusinessEnterprises and corresponding application guidance, interpretations and other related provisions issued bythe Ministry of Finance (collectively, "Accounting Standards for Business Enterprises"). In addition, theGroup also disclosed the relevant financial information in accordance with the Explanatory AnnouncementNo. 15 on Information Disclosure for Companies Offering Their Securities to the Public—GeneralRequirements for Financial Reporting (2023 version) issued by the China Securities RegulatoryCommission.The financial statements have been prepared on a going concern basis.The Group's accounting is based on the accrual basis of accounting. The financial statements are preparedunder the historical cost except for certain financial instruments. Non-current assets held-for-sale aremeasured at the lower of the amount of the fair value less estimated costs and the book value when it isrecognized as held-for-sale. If the assets were impaired, a provision for impairment shall be provided inaccordance with the relevant regulations.III. Significant Accounting Policies and Accounting Estimates
The Group has established its policies for fixed assets appreciation and revenue recognition based on thespecific characteristics of its production and operations, in accordance with the relevant requirements of theAccounting Standards for Business Enterprises. For detailed information on these accounting policies,please refer to Note III. 17 and Note III. 29.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements have been prepared in accordance with the requirements of Accounting Standardsfor Business Enterprises. These financial statements have truly and completely presented the consolidatedfinancial position and financial position of the Company as at December 31, 2024 and their operatingresults and cash flows for the year ended December 31, 2024.
2. Accounting Period
The Company's accounting period is based on the calendar year, which begins on January 1 and ends onDecember 31 of each year.
3. Operating Cycle
The operating cycle of the Group is 12 months.
4. Functional currency
The Company and its domestic subsidiaries use RMB as their functional currency. The overseas subsidiariesof the Company determine their functional currency according to the primary economic environment wherethey operate. The financial statements of the Group have been prepared in RMB.The joint ventures and associates of the Group determine their functional currency according to the primaryeconomic environment where they operate and the financial statements have been prepared in RMB.
5. Significant criteria and basis for selection
| Items | Significant criteria |
| Significant accounts receivable assessed for impairment individually | Individual provision value over 5% of total bad debt provision for the corresponding category |
| Significant provision for bad and doubtful debts recovered or reversed in current period | Individual recoveries or reversals over 5% of the total original value of the corresponding accounts receivable category |
| Significant accounts receivable write-off in current period | Individual write-offs over 5% of total original value of the corresponding accounts receivable category |
| Significant prepayments, accounts payable, advances from customers, contract liabilities, dividends receivable, other payables aged over 1 year | Individual transaction account aged over 1 year represent more than 5% of the total original value of the corresponding category |
| Significant construction in progress | Individual project value over 5% of the Company's total construction in progress |
| Significant non-wholly-owned subsidiaries | Non-wholly owned subsidiaries whose net assets account for more than 4% of the Group's total net assets |
| Significant joint ventures and associates | The book value of long-term equity investment in a single investee represents more than 5% of the Group's total net assets, or the investment gains or losses under the equity method of long-term equity investments accounts for more than 5% of the Group's consolidated net profit |
| Significant capitalized research and development projects | The value to be capitalised for the individual R&D project accounts for more than 5% of the Group's total intangible assets |
| Significant investment activities | A single investment activity accounts for more than 10% of the total cash inflows or outflows related to investment activities |
6. Accounting treatments for business combinations involving enterprises under common control and business
combinations involving enterprises not under common control
(1) Business combinations involving enterprises under common control
For a business combination involving enterprises under common control, the assets acquired and liabilitiesassumed are measured based on their carrying amounts in the consolidated financial statements of theultimate controlling party at the combination date. The difference between the carrying amount of the netassets acquired and the consideration paid for the combination is adjusted against capital reserve (sharepremium/capital premium), with any excess adjusted against retained earnings.For a business combination involving entities under common control achieved in stages that involvesmultiple exchange transactionsIn the consolidated financial statements, the assets acquired and liabilities assumed are measured based ontheir carrying amounts in the consolidated financial statements of the ultimate controlling party at the
combination date; the difference between the aggregate carrying amount of the investment beforecombination and the new consideration paid on the combination date, and the carrying amount of the netasset acquired in the combination, is adjusted against capital reserve, with any excess adjusted againstretained earnings. The long-term equity investment of the combining party before acquiring the control, theprofit or loss, other comprehensive income and other changes in the owner's equity recognized from thelater of the initial acquisition date of the equity and the date when the combining party and the combinedparty under common ultimate control party to the combination date, shall be offset against the openingretained earnings and profit or loss for the current period in the comparative statement.
(2) Business combinations involving enterprises not under common control
For business combinations involving enterprises not under common control, the consideration costs are thefair values of the assets paid, the liabilities incurred or assumed and the equity instruments issued by theacquirer in exchange for control over the acquiree on the acquisition date. At the acquisition date, theacquired assets, liabilities and contingent liabilities of the acquiree are measured at their fair value.Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's identifiable netassets, the difference is recognized as goodwill, and subsequently measured based on its cost lessaccumulated impairment provisions. Where the combination cost is less than the acquirer's interest in thefair value of the acquiree's identifiable net assets, the difference is recognized in profit or loss for thecurrent period after reassessment.The contingent consideration involved is included in the combination cost at fair value at the date ofpurchase, and if new or further evidence of circumstances existing at the purchase date emerges within 12months, the contingent consideration and goodwill are adjusted accordingly.For a business combination involving enterprises not under common control and achieved in stages thatinvolves multiple exchange transactionsIn the consolidated financial statements, the cost of business combination is the total of the considerationpaid at the acquisition date and the fair value of equity investment of the acquiree held prior to theacquisition date. The cost of equity investment of the acquiree held prior to the acquisition date shall be re-measured at the fair value at the acquisition date, the difference between the fair value and par value shallbe recognized as profit or loss for the current period. Other comprehensive income and changes of otherowners' equity from the equity interest held in the acquiree prior to the acquisition date shall be transferredto profit or loss for the current period, except for other comprehensive income arising from theremeasurement of the net liabilities or assets of defined benefit plans by the investees, as well as othercomprehensive income related to the investments in the non-trading equity instruments that were originallydesignated to be measured at fair value through other comprehensive income.
(3) Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuationadvisory, and other administrative expenses, are recorded in profit or loss for the current period whenincurred. The transaction costs of equity or debt securities issued as the considerations of businesscombination are included in the initial recognition amount of the equity or debt securities.
7. The criteria of control and the method of preparation of the consolidated financial statements
(1) The criteria of control
The scope of consolidated financial statements is based on control. Control exists when the Company haspower over the investee; exposure, or rights to variable returns from its involvement with the investee andhas the ability to use its power to affect those returns. The Company will reassess whether control exists ifchanges in relevant facts and circumstances cause variations in the elements that determine control.In determining whether to include a structured entity in the scope of consolidation, the Company assesseswhether to control the structured entity on the basis of a combination of all the facts and circumstances,
including an assessment of the purpose and design for which the structured entity was established, theidentification of the types of variable returns, and whether it assumes some or all of the variability of thereturns through its participation in its related activities.
(2) Method of preparation of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements ofthe Company and its subsidiaries and other relevant information. When preparing consolidated financialstatements, the accounting policies and accounting periods of the subsidiaries should be consistent with theCompany, and all significant intra-company balances and transactions should be eliminated.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises under common control, the financial statements of the subsidiary or business areincluded in the consolidated financial statements as if the combination had occurred at the date that theultimate controlling party first obtained control.Where a subsidiary or business was acquired during the reporting period, through a business combinationinvolving enterprises not under common control, the identifiable assets and liabilities of the acquiredsubsidiaries or business are included in the scope of consolidation from the date that control commences.The portion of a subsidiary's equity that is not attributable to the parent is treated as non-controllinginterests and presented separately in the consolidated balance sheet within shareholders' equity. The portionof net profit or loss of subsidiaries for the period attributable to non-controlling interests is presentedseparately in the consolidated income statement below the net profit line item. When the amount of loss forthe current period attributable to the non-controlling shareholders of a subsidiary exceeds the non-controlling shareholders' share of the opening owners' equity of the subsidiary, any excess is still allocatedagainst the non-controlling interests.
(3) Purchase of subsidiaries' non-controlling interests
The difference between the cost of long-term equity investment newly acquired due to the purchase of non-controlling interest and the share of net assets of the subsidiary continuously calculated from the purchasedate or merger date according to the newly increased shareholding ratio, and the difference between thedisposal price obtained as a result of partial disposal of the equity investment in the subsidiary without lossof control and the share of net assets continuously calculated since the purchase date or the merger datecorresponding to the disposal of the long-term equity investment of the subsidiary, should be adjusted tothe capital reserve in the consolidated balance sheet, with any excess adjusted to retained earnings.
(4) Disposal of subsidiaries
When the Group loses control over a subsidiary because of disposing part of equity investment or otherreasons, the remaining part of the equity investment is re-measured at fair value at the date when the controlis lost. The difference between the aggregate of consideration received in disposal and the fair value ofremaining part of the equity investment, and the aggregate share of net assets in proportion to previousshareholding percentage in the former subsidiary since acquisition date and the goodwill is recognized as aninvestment gain or loss in the current period.Other comprehensive income related to the equity investment of the former subsidiary shall be accountedfor on the same basis as the direct disposal of the relevant assets or liabilities of the former subsidiary at thetime of loss of control, and other changes in owner's equity related to the former subsidiary under the equitymethod of accounting shall be transferred to profit or loss in the current period at the time of loss of control.
(5) The treatment of disposing equity investment by stages until the control is lost
The Group considers the arrangements of multiple transactions by disposing equity investment by stagesuntil the control is lost as a single transaction when the terms, conditions and economic impact of eachtransaction meet one or more of the following situations:
① The transactions are entered into at the same time or in contemplation of each other;
② The transactions are considered as a single transaction to achieve an overall commercial effect;
③ The occurrence of one transaction dependent on the occurrence of at least one other transaction;
④ A transaction is not economically justifiable when considered on its own, but it becomes economicallyjustifiable when considered as part of a series of related transactions.In the consolidated financial statements, please refer to the above disposal of subsidiaries for themeasurement of remaining equity and accounting treatment for profit or loss of disposing equity investmentby stages until the control is lost. The difference between each consideration received and the share of thesubsidiary's net assets since acquisition date relevant to disposing investment until the control is lost:
① is recognized in other comprehensive income if the arrangements are regarded as a single transaction.Other comprehensive income is transferred to profit or loss for the current period when the control is lost.
② is recognized in capital reserve (share premium/capital premium) as an equity transaction if thearrangements are not regarded as a single transaction. Capital reserve is not transferred to profit or loss forthe current period when the control is lost.
8. Joint arrangement classification and accounting treatment for joint operation
A joint arrangement is an arrangement of which two or more parties have joint control. The Groupclassifies joint arrangements into joint operations and joint ventures.
(1) Joint operations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, andobligations for the liabilities, relating to the arrangement.The Group recognizes the following items relating to its interest in a joint operation, and account for themin accordance with relevant accounting standards:
A. Its solely-held assets, and its share of any assets held jointly;B. Its solely-assumed liabilities, and its share of any liabilities assumed jointly;C. Its revenue from the sale of its share of the output arising from the joint operation;D. Its share of the revenue from the sale of the output by the joint operation; andE. Its solely-incurred expenses, and its share of any expenses incurred jointly.
(2) Joint ventures
A joint venture is a joint arrangement whereby the joint venturers have rights to the net assets of thearrangement.The Group adopts equity method under long-term equity investment in accounting for its investment injoint venture.
9. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalentsinclude short-term, highly liquid investments that are readily convertible to known amounts of cash and aresubject to an insignificant risk of change in value.
10. Foreign currency transactions and translation of foreign currency financial statements
(1) Foreign currency transactions
The Group's foreign currency operations are translated into the local currency amounts at the spot rate ofexchange in effect on the date of the transaction or at a rate determined in accordance with a systematic andrationalized method that approximates the spot rate of exchange in effect on the date of the transaction.At the balance sheet date, monetary items denominated in foreign currencies are translated using the spotexchange rate at the balance sheet date. Exchange differences arising from the difference between the spotexchange rate at the balance sheet date and the spot exchange rate at the time of initial recognition or at theprevious balance sheet date are recognized in profit or loss for the current period; for foreign-currency non-monetary items measured at historical cost, they are still translated using the spot exchange rate at the dateof the transaction; for foreign-currency non-monetary items measured at fair value, they are translatedusing the spot exchange rate at the date of determination of the fair value, and the difference between theamount of the bookkeeping currency after translation and the amount of the original bookkeeping currencyis recognized in profit or loss for the current period. The difference between the translated amount in thefunctional currency and the original amount in the functional currency is recognized in profit or loss orother comprehensive income, depending on the nature of the non-monetary item.
(2) Translation of foreign currency financial statements
On the balance sheet date, when translating the foreign currency financial statements of foreign subsidiaries,the assets and liabilities items in the balance sheet are translated using the spot exchange rate on thebalance sheet date, and the shareholders' equity items, except for retained earnings are translated using thespot exchange rate on the date of occurrence.Income and expense items in the income statement are translated at rates of exchange determined by asystematic and rationalized method that approximate spot rates at the date of the transaction.All items in the statement of cash flows are translated at rates of exchange determined on a systematic andrationalized basis that approximate the spot rates at the date of the cash flows. The effect of exchange ratechanges on cash is reflected as a reconciling item in the statement of cash flows under the separate lineitem as effect of exchange rate changes on cash and cash equivalents.The resulting translation differences are recognised as other comprehensive income in the shareholders'equity of the balance sheet.When disposing of a foreign operation and losing control, the foreign currency translation differencesrelated to that foreign operation, which are presented under the shareholders’ equity (or owners’ equity)section of the balance, are entirely or proportionally transferred to the income statement for the period ofdisposal, based on the proportion of the foreign operation disposed of.
11. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financialliability or an equity instrument of another enterprise.
(1) Recognition and derecognition of financial instruments
A financial asset or a financial liability is recognized when the Group becomes a party to the contractualprovisions of a financial instrument.If one of the following criteria is met, a financial asset is derecognised:
① The contractual rights to the cash flows from the financial asset expire; or
② The financial asset was transferred, and the transfer qualifies for derecognition in accordance withcriteria set out below in the section of transfer of financial assets.
A financial liability (or partially) is derecognized when its contractual obligation (or partially) is dischargedor cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to replace thecurrent financial liability with assuming a new financial liability, and contractual provisions are different insubstance, the current financial liability is derecognized and a new financial liability is recognized.If the financial assets are traded regularly, the financial assets are recognized and derecognized at thetransaction date.
(2) Classification and measurement of financial assets
The Group classifies financial assets as measured at amortized cost, fair value through other comprehensiveincome or fair value through profit or loss at initial recognition on the basis of both the entity's businessmodel for managing the financial assets and the contractual cash flow characteristics of the financial asset.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair valuethrough profit or loss, the related transaction costs are directly recorded in current profit or loss; for othertypes of financial assets, related transaction costs are included in the initial recognition amount. Forreceivables arising from the sale of products or the provision of services that do not contain or take intoaccount significant financing components, the amount of consideration that the Group is expected to beentitled to collect shall be the initial recognition amount.Financial assets measured at amortized costThe Group classifies the financial assets that meet the following conditions and are not designated asmeasured at fair value through profit or loss as financial assets measured at amortized cost:
? The Group's business model of managing the financial assets aims at collecting contractual cash flows;? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, the effective interest rate method is adopted to measure the amortized cost ofsuch financial assets. Gains or losses arising from financial assets that are measured at amortized cost andare not part of any hedging relationship shall be recorded in the current profit or loss when the financialassets are derecognized, amortized according to the effective interest method or impaired.Financial assets measured at fair value through other comprehensive incomeThe Group classifies the financial assets that simultaneously meet the following conditions and are notspecified as measured at fair value through profit or loss as financial assets measured at fair value throughother comprehensive income:
? The Group's business model of managing the financial asset aims at both collecting contractual cashflows and selling the financial assets.? The contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.After the initial recognition, this type of financial assets are subsequently measured at fair value. Theinterest, loss allowance or gain and exchange loss or gain calculated using the effective interest rate methodare included in the current profit or loss, while other gains or losses are included in other comprehensiveincome. When derecognized, the accumulated gains or losses previously recorded in other comprehensiveincome shall be transferred out from other comprehensive income and recorded in the current profit or loss.Financial assets measured at fair value through profit or lossIn addition to the above financial assets measured at amortized cost and measured at fair value throughother comprehensive income, the Group classifies all other financial assets as financial assets measured atfair value through profit or loss. At the time of initial recognition, in order to eliminate or significantly
reduce accounting mismatches, the Group irrevocably designates some financial assets that should havebeen measured at amortized cost or measured at fair value through other comprehensive income asfinancial assets measured at fair value through profit or loss.After the initial recognition, this kind of financial asset is subsequently measured at fair value, and thegains or losses (including interest and dividend income) generated are recorded into the current profit orloss, unless the financial asset is part of the hedging relationship.However, for non-trading equity instrument investment, the Group irrevocably designates it as a financialasset measured at fair value through other comprehensive income at initial recognition. The designation ismade on a single investment basis and the relevant investments meet the definition of an equity instrumentfrom issuer's perspective.After the initial recognition, this kind of financial assets are subsequently measured at fair value. Qualifieddividend income is included in the profit or loss, other gains or losses and changes in fair value areincluded in other comprehensive income. When derecognized, the accumulated gains or losses previouslyrecorded in other comprehensive income are transferred out and recorded in retained earnings.The business model of managing financial assets refers to how the Group manages financial assets togenerate cash flows. The business model determines whether the cash flow from the financial assets undermanagement of the Group is derived from the receipt of contractual cash flows, the sale of financial assetsor a combination of both. The Group determines its business model for managing financial assets on thebasis of objective facts and the specific business objectives for the management of financial assetsdetermined by key management personnel.The Group assesses the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flows generated by the relevant financial assets on specified dates are solely payments ofprincipal and interest on the principal amount outstanding. Principal refers to the fair value of financialassets at initial recognition. Interest includes consideration for the time value of money, the credit riskassociated with the amount of principal outstanding over a given period, and other basic lending risks andcosts, as well as a profit margin. In addition, the Group assesses contractual terms that may cause a changein the time distribution or amount of the contractual cash flows of financial assets to determine whetherthey meet the requirements of the above contractual cash flow characteristics.Only when the Group changes the business model of managing financial assets, all affected relatedfinancial assets shall be reclassified on the first day of the first reporting period after the change of thebusiness model, otherwise the financial assets shall not be reclassified after the initial recognition.
(3) Classification and measurement of financial liabilities
At the time of initial recognition, the financial liabilities of the Group are classified as: financial liabilitiesmeasured at fair value through profit or loss, and financial liabilities measured at amortized cost. Forfinancial liabilities that are not classified as measured at fair value through profit or loss, relevanttransaction costs are included in their initial recognized amounts.Financial liabilities measured at fair value through profit or lossFinancial liabilities measured at fair value through profit or loss include financial liabilities held for tradingand financial liabilities designated at the time of initial recognition as measured at fair value through profitor loss. For such financial liabilities, the subsequent measurement shall be made according to the fair value,and the gains or losses caused by changes in the fair value as well as the dividends and interest expensesrelated to such financial liabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized costFor other financial liabilities, the effective interest rate method shall be adopted, the subsequentmeasurement shall be made at the amortized cost, and the gains or losses arising from derecognition oramortization shall be recorded into current profit or loss.
Financial guarantee contractFinancial guarantee contracts do not belong to financial liabilities measured at fair value through profit orloss. They are measured at fair value at initial recognition and are subsequently measured at the higher ofthe amount of the loss allowance determined in accordance with the expected credit loss model and theamount initially recognized less the cumulative amortisation.The distinction between financial liabilities and equity instrumentsFinancial liabilities refer to liabilities that meet one of the following conditions:
① A contractual obligation to deliver cash or other financial assets to other parties.
② A contractual obligation to exchange financial assets or financial liabilities with another party underpotentially adverse conditions.
③ A non-derivative contract that has to be settled with or can be settled with the firm's own equityinstruments in the future, under which the firm will deliver a variable number of its own equity instruments.
④ A derivative contract that has to be settled with or can be settled with the firm's own equity instrumentsin the future, except for a derivative contract in which a fixed number of its own equity instruments are tobe exchanged for a fixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's assetsafter all liabilities have been deducted.If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or otherfinancial assets, such contractual obligation meets the definition of a financial liability.If a financial instrument has to be settled with or can be settled with the Group's own equity instruments inthe future, consideration needs to be given to whether the Group's own equity instruments used to settle theinstrument is to be used as a substitute for cash or other financial assets, or to give the holder of theinstrument the remaining interest in the issuer's assets after deduction of all liabilities. If it is the former, theinstrument is a financial liability of the Group; if it is the latter, the instrument is an equity instrument ofthe Group.
(4) Derivative financial instruments and embedded derivative instruments
The Group's derivative financial instruments include forward foreign exchange contracts, currencyexchange rate swap contracts, interest rate swap contracts and foreign exchange options contracts, etc..Theinitial measurement is based on the fair value of the date of signing the derivative transaction contract, andthe subsequent measurement is based on its fair value. A derivative with a positive fair value is recognisedas an asset; a negative fair value is recognized as a liability. Any gains or losses resulting from changes infair value that do not conform to the provisions of hedge accounting shall be directly recorded into thecurrent profit or loss.For a hybrid instrument containing an embedded derivative instrument, if the host is a financial asset, thehybrid instrument as a whole shall be subject to the relevant provisions on the classification of financialassets. If the host is not a financial asset, the embedded derivative instrument shall be separated from thehybrid instrument and accounted for as a separate derivative instrument if all of the following conditionsare met: the hybrid instrument is not measured at fair value through profit or loss; the economiccharacteristics and risks of the embedded derivative are not closely related to the economic characteristicsand risks of the host; a separate instrument with the same terms as the embedded derivative would meet thedefinition of a derivative. If it is not possible to measure the embedded derivative separately at the time ofacquisition or on the subsequent balance sheet date, the hybrid instrument as a whole is designated as afinancial asset or financial liability measured at fair value through profit or loss.
(5) Fair value of financial instruments
For the determination of fair value of financial assets and financial liabilities, see Note III.12.
(6) Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for thefollowing items and recognises the allowance:
? Financial assets measured at amortized cost;? Receivables and debt investments measured at fair value and accounted for in other comprehensiveincome;? Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;? Lease receivables;? Financial guarantee contracts (except for financial assets measured at fair value through profit or loss,transfer of financial assets that do not meet the conditions for derecognition or those caused bycontinuing involvement in transferred financial assets).Measurement of expected credit lossesExpected credit loss refers to the weighted average of the credit loss of a financial instrument weighted bythe risk of default. Credit loss refers to the difference between all contractual cash flows that are due to theGroup in accordance with the contract and all the cash flows that the Group expects to receive, discountedat the original effective interest rate, that is, the present value of all cash shortfalls.The Group calculates the probabilistic weighted amount of the present value of the difference between thecash flows receivable under the contract and the cash flows expected to be received and recognizes theexpected credit loss, taking into account reasonable and supportable information concerning past events,current conditions and forecast of future economic conditions, with the respective risks of a defaultoccurring as the weights.The Group separately measures the expected credit losses of financial instruments at different stages. If thecredit risk of the financial instrument has not increased significantly since the initial recognition, thefinancial instrument is in the first stage and the Group shall measure the loss allowance at an amount equalto 12?month expected credit losses; if the credit risk of the financial instrument has increased significantlysince the initial recognition but no credit losses have occurred, the financial instrument is in the secondstage and the Group shall measure the loss allowance at an amount equal to lifetime expected credit losses;if credit losses have occurred to a financial instrument since its initial recognition, it is in the third stage andthe Group shall measure the loss allowance at an amount equal to lifetime expected credit losses.For financial instruments with low credit risk at the balance sheet date, the Group assumes that the creditrisk has not increased significantly since the initial recognition, and measures the loss allowance at anamount equal to 12?month expected credit losses.Llifetime expected credit losses refers to the expected credit losses resulting from all possible events ofdefault during the entire expected life of a financial instrument. The expected credit losses within the next12 months refer to the expected credit loss caused by the default event of the financial instrument that mayoccur within 12 months after the balance sheet date (or the expected duration of the financial instrument ifthe expected duration of the financial instrument is less than 12 months) and is part of lifetime expectedcredit losses.When measuring expected credit losses, the Group shall take into account the longest contract period(including the option to renew the contract) for which it is exposed to credit risk.The Group calculates interest income on the basis of the book value before impairment provisions and the
effective interest rate for financial instruments in stage I and stage II and with lower credit risk. Forfinancial instruments in the third stage, the interest income is calculated on the basis of the amortized costof the book value less the impairment provision and the effective interest rate.For notes receivable, accounts receivable, accounts receivable financing, other receivables, contract assets,etc., if the credit risk characteristics of a customer are significantly different from those of other customersin the group, or the credit risk characteristics of such customer are significantly changed, the Group shallassessed for impairment individually for such receivables. In addition to the receivables assessed forimpairment individually, the Group divides the receivables into groups according to the credit riskcharacteristics and calculates the loss allowance on the basis of the group.Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable and contract assets, regardless of whether there is a materialfinancing component, the Group always measures its loss allowance at an amount equal to lifetimeexpected credit losses.When an individual financial asset or contract asset cannot assess the information of expected credit loss ata reasonable cost, the Group divides the notes receivable, accounts receivable and contract assets intogroups according to the credit risk characteristics, calculates the expected credit losses based on the groupswhich are determined as follows:
A. Notes receivable? Group 1 of notes receivable: Bank acceptance notes? Group 2 of notes receivable: Commercial acceptance notes? Group 3 of notes receivable: Usance letters of creditB. Accounts receivable? Group 1 of accounts receivable: Accounts receivable due from feed related customers? Group 2 of accounts receivable: Accounts receivable due from related parties within the scope of
consolidation? Group 3 of accounts receivable: Accounts receivable due from raw materials customersFor the notes receivable and contract assets divided into groups, the Group calculates the expected creditloss through default risk exposure and the lifetime expected credit loss rate by referring to the historicalcredit loss experience, combining the current situation and the forecast of the future economic situation.For the accounts receivable divided into groups, the Group refers to the historical credit loss experience andcombines the current situation with the forecast of the future economic situation to compile a comparisontable between the age of receivables/overdue days and the lifetime expected credit loss rate and to calculatethe expected credit loss. The age of accounts receivable is calculated from the date of recognition/daysoverdue is calculated from the expiration date of credit period.Other receivablesThe Group divides other receivables into several groups according to the credit risk characteristics, andcalculates the expected credit losses on the basis of the groups which are determined as follows:
? Group 1 of other receivables: Security deposits? Group 2 of other receivables: Futures margin? Group 3 of other receivables: Receivables due from external parties
? Group 4 of other receivables: Advance social insurance and housing fund? Group 5 of other receivables: Petty cash? Group 6 of other receivables: Other receivables due from related parties within the scope of
consolidation? Group 7 of other receivables: OthersFor other receivables divided into groups, the Group calculates the expected credit losses by default riskexposure and the expected credit losses rate over the next 12 months or the entire duration. For otherreceivables grouped according to age, the age is calculated from the date of recognition.Loans and advances to customersFor loans and advances to customer, the Group calculates the expected credit loss through the exposure atdefault and the expected credit loss rate within the next 12 months or the entire duration.Long-term receivablesThe Group's long-term receivables include financial lease receivables, security deposit receivables, etc.According to the credit risk characteristics, the Group divides financial lease receivables, security depositreceivables into several groups. The expected credit loss is calculated on the basis of the groups which aredetermined as follows:
A. Finance lease receivables? Group 1 of finance leases: Receivable due from related parties within the scope of consolidation.? Group 2 of finance leases: Receivable due from other customersB. Other long-term receivables? Group 1 of long-term receivables: Security deposit receivables? Group 2 of long-term receivables: Other receivablesFor security deposit receivables, the Group refers to historic credit losses experience, combined with thecurrent situation and forecast for the future economic situation, to calculate the expected credit losses bydefault risk exposure and the lifetime expected credit loss rate.For other receivables and long-term receivables in addition to security deposit receivables, the expectedcredit losses are calculated by default risk exposure and the expected credit loss rate within the next 12months or the entire duration.Debt investment and other debt investmentFor debt investment and other debt investment, the Group calculates the expected credit loss based on thedefault risk exposure and the expected credit loss rate within the next 12 months or the entire durationaccording to the nature of the investment and the various types of counterparties and risk exposures.Assessment of a significant increase in credit riskBy comparing the risk of default of financial instruments on the balance sheet date with the risk of defaulton the initial recognition date, the Group determines the relative change of default risk within the expectedduration of financial instruments, so as to evaluate whether the credit risk of financial instruments hassignificantly increased since the initial recognition.
In determining whether credit risk has increased significantly since the initial recognition, the Groupconsiders reasonable and supportable information, including forward-looking information that can beobtained without unnecessary additional cost or effort. Information considered by the Group includes:
? The debtor fails to pay the principal and interest as due under the contract;? A material deterioration, if any, of the external or internal credit rating of the financial instrument that
has occurred or is expected to occur;? A serious deterioration of the debtor's business results occurred or is expected to occur;? A change in the existing or anticipated technological, market, economic or legal environment which
will have a material adverse effect on the debtor's ability to repay the Group.According to the nature of financial instruments, the Group evaluates whether credit risk increasessignificantly on the basis of individual financial instruments or a group of financial instruments. Whenassessing on the basis of a group of financial instruments, the Group may classify financial instrumentsbased on common credit risk characteristics, such as overdue information and credit risk rating.Credit-impaired financial assetsOn the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assetsmeasured at amortized cost and debt investments measured at fair value through other comprehensiveincome. When one or more events which have an adverse effect on the expected future cash flows of afinancial asset occur, the financial asset becomes a credit-impaired financial asset. Evidence of creditimpairment of financial assets includes the following observable information:
? Major financial difficulties occur to the issuer or the debtor;? A breach of contract by the debtor, such as a default or late payment of interest or principal;? The Group has granted concessions to the debtor would not otherwise be made, based on economic or
contractual considerations related to the debtor's financial difficulties.? The debtor is likely to go bankrupt or undergo other financial restructuring;? The financial difficulties of the issuer or debtor result in the disappearance of an active market for the
financial asset.Presentation of expected credit lossesIn order to reflect the change of the credit risk of financial instruments since the initial recognition, theGroup re-measures the expected credit losses on each balance sheet date, and the increase or recoveredamount of the loss allowance thus formed shall be recorded into the current profit or loss as an lossallowance or gain. For a financial asset measured at amortized cost, the loss allowance shall offset thecarrying amount of the financial asset as stated in the balance sheet; for the debt investment measured atfair value through other comprehensive income, the Group recognizes its loss allowance in othercomprehensive income and does not offset the carrying amount of the financial asset.Write-offIf the Group no longer reasonably expects that the contractual cash flows of a financial asset can berecovered in its entirety or a portion thereof, the carrying amount of the financial asset shall be directlywritten-off. Such a write-off constitutes derecognition of the relevant financial asset. This usually occurswhen the Group determines that the debtor does not have assets or sources of income that generatesufficient cash flows to repay the amount to be written-off. However, in accordance with the Group'sprocedures for recovering amounts due, the financial assets that have been written-off may still be affectedby the execution activities.
If a financial asset that has been written-off is recovered later, a reversal of loss allowance shall be recordedin profit or loss of the current period.
(7) Transfer of financial assets
Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee)other than the issuer of financial assets.A financial asset is derecognized if the Group transfers substantially all the risks and rewards of ownershipof the financial asset to the transferee. A financial asset is not derecognized if the Group retainssubstantially all the risks and rewards of ownership of the financial asset to the transferee.The Group neither transfers nor retains substantially all the risks and rewards of ownership of the financialasset, the accounting treatments are as following: if control over the financial assets is surrendered, theGroup derecognizes the financial assets and recognize any assets and liabilities arose; if the Group retainsthe control of the financial assets, financial assets to the extent of the continuing involvement in thetransferred financial assets by the Group and any relating liability are recognized.
(8) Offset between financial assets and financial liabilities
When the Group has the legal right to offset the recognized financial assets and financial liabilities, and thelegal rights is enforceable, and the Group plans to settle by net amount or realize the financial assets andpay off the financial liabilities, the amount after being offset is presented in the balance sheet. Otherwise,financial assets and financial liabilities are presented separately in the balance Sheet and not allowed tooffset against each other.
12. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date.The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchangedin an orderly transaction in the principal market; in the absence of a principal market, assuming the assetsor liabilities are exchanged in an orderly transaction in the most advantageous market. Principal market (orthe most advantageous market) is the market that the Group can normally enter into a transaction onmeasurement date. The Group adopts the presumptions that would be used by market participants inachieving the maximized economic value of the assets or liabilities.For financial assets or financial liabilities with active markets, the Group uses the quoted prices in activemarkets as their fair value. Otherwise, the Group uses valuation technique to determine their fair value.Fair value measurement of a non-financial asset takes into account market participants' ability to generateeconomic benefits using the asset in its best way or by selling it to another market participant that wouldbest use the asset.The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient dataare available to measure fair value, maximizing the use of relevant observable inputs, and usingunobservable inputs only if the observable inputs aren't available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements aredetermined according to the significant lowest level input to the entire measurement: Level 1 inputs arequoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access atthe measurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that areobservable for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputsfor the assets or liabilities.At the balance sheet date, the Group revalues assets and liabilities being measured at fair valuecontinuously in the financial statements to determine whether to change the levels of fair valuemeasurement.
13. Inventories
(1) Classification
Inventories include raw materials, finished goods, work in progress, consumptive biological assets andcosts to fulfil a contract, etc.
(2) Measurement method of cost of inventories
Inventories are initially measured at cost. If the inventories are managed by batch at the time of receipt anddelivery, these inventories shall be carried forward at batch cost. Otherwise, inventories are calculated byusing weighted average method.
(3) Basis for determining the net realisable value and method for provision for obsolete inventoriesNet realisable value is the estimated selling price in the ordinary course of business less the estimated costsof completion and the estimated costs necessary to make the sale and relevant taxes. The net realisablevalue is measured based on the verified evidences and considerations for the purpose of holding inventoriesand the effect of post balance sheet events.The Group generally makes inventory provision on the basis of individual inventory items. For inventoriesof large quantities with low unit prices, inventory provision is made according to inventory categories.At the balance sheet date, if the factors for previous inventory provision have disappeared, inventoryprovision is reversed to the extent of the original amount.
(4) Inventory count system
The Group maintains a perpetual inventory system.
14. Assets held for sale and discontinued operations
(1) Classification and measurement of non-current assets or disposal groups held for saleThe Group classifies a non-current asset or disposal group as held for sale when the carrying amount of thenon-current asset or disposal group will be recovered through a sale transaction (including an exchangetransaction of non-monetary assets with commercial substance) rather than through continuing use.Non-current assets mentioned above do not include investment properties subsequently measured with thefair value model, biological assets measured at fair value less costs to sell, assets arising from employeebenefits, financial assets, deferred tax assets and contractual rights under insurance contracts.The disposal group is a group of assets to be disposed of, by sale or otherwise, together as a whole in asingle transaction, and liabilities directly associated with those assets that will be transferred in thetransaction. In certain circumstances, disposal groups include goodwill acquired in a business combination.A non-current asset or disposal group is classified as held for sale when all the following criteria are met:
according to the customary practices of selling such asset or disposal group in similar transactions, the non-current asset or disposal group is available for immediate sale in its present condition; the sale is highlyprobable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally bindingpurchase agreement with other parties. The sale is expected to be completed within one year. The Groupthat is committed to a sale plan involving loss of control of a subsidiary classifies all the investment in thatsubsidiary as held for sale in its separate financial statements, and classifies all the assets and liabilities ofthat subsidiary as held for sale in its consolidated financial statements, when the classification criteria forheld for sale are met, regardless of whether the Group retains a non-controlling interest in its formersubsidiary after the sale.Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower ofcarrying amount and fair value less costs to sell. Any excess of the carrying amount over the fair value less
costs to sell is recognised as an loss allowance in profit or loss. The loss allowance recognised for adisposal group firstly reduces the carrying amount of goodwill allocated to the disposal group, and thenreduces the carrying amount of other non-current assets pro rata on the basis of the carrying amount of eachnon-current asset in the disposal group.The Group recognises a gain for any subsequent increase in fair value less costs to sell of an asset, but notin excess of the cumulative loss allowance that has been recognised after classified as held for sale. Thereduced carrying amount of goodwill is not recovered.The Group does not depreciate (or amortise) a non-current asset while it is classified as held for sale orwhile it is part of a disposal group classified as held for sale. Interest and other expenses attributable to theliabilities of a disposal group classified as held for sale continue to be recognised. If an investment or a partof investment in an associate or a joint venture is classified as held for sale, equity method is not used forthe part classified as held for sale, while equity method is used for the rest part (the part not classified asheld for sale) continually. When the Group does not have material impact on an associate or a joint venturedue to the sale transaction, it stops using equity method.The Group measures a non-current asset that ceases to be classified as held for sale at the lower of:
① Its carrying amount of the asset or disposal group before it was classifying as held-for-sale, and adjustedfor any depreciation, amortization or impairment as if it has not being classified as held-for-sale;
② Its recoverable amount.
(2) Discontinued operations
The Group classifies a component as a discontinued operation either upon disposal of the operation orwhen the operation meets the criteria to be classified as held for sale if it is separately identifiable andsatisfies one of the following conditions:
① It represents a separate major line of business or a separate geographical area of operations;
② It is part of a single coordinated plan to dispose of a separate major line of business or a separategeographical area of operations;
③ It is a subsidiary acquired exclusively with a view to resale.
(3) Presentation
The Group presents a non-current asset classified as held for sale and the assets of a disposal groupclassified as held for sale as assets held for sale in the balance sheet. The liabilities of a disposal groupclassified as held for sale is presented as liabilities held for sale in the balance sheet.The Group presents profit or loss from discontinued operations separately from profit or loss fromcontinuing operations in income statement. Loss allowance and reversal amount and any disposal gain orloss of a non-current asset or disposal group classified as held for sale that does not meet the definition of adiscontinued operation is included in profit or loss from continuing operations. Any gain or loss fromcontinuing operation of discontinued operations, including loss allowance and reversal amount, anddisposal gain or loss is included in profit or loss from discontinued operations.A disposal group which is planned to cease operation rather than for sale, and meets the criteria of a part ofdiscontinued operation, the Group presents it as discontinued operation from the date of cessation.Where an operation is classified as discontinued in the current period, profit or loss from continuingoperations and profit or loss from discontinued operations are separately presented in the income statementfor the current period. If the Group ceases to classify a discontinued operation as held for sale, theinformation previously presented in discontinued operations is reclassified and included in income fromcontinuing operations for all periods presented.
15. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries and equity investments in jointventures and associates. An associate is an enterprise over which the Group has significant influence.
(1) Determination of initial investment cost
The initial cost of a long-term equity investment acquired through a business combination involvingenterprises under common control is the Group's share of the carrying amount of the subsidiary's equity inthe consolidated financial statements of the ultimate controlling party at the combination date. For a long-term equity investment obtained through a business combination not involving enterprises under commoncontrol, the initial cost is the combination cost.A long-term equity investment acquired other than through a business combination: A long-term equityinvestment acquired other than through a business combination is initially recognised at the amount of cashpaid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if aninvestment is acquired by issuing equity securities.
(2) Subsequent measurement and recognition of profit or loss
Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in ajoint venture or an associate is accounted for using the equity method for subsequent measurement.For a long-term equity investment which is accounted for using the cost method, except for cash dividendsor profit distributions declared but not yet distributed that have been included in the price or considerationpaid in obtaining the investments, the Group recognises its share of the cash dividends or profitdistributions declared by the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method, where the initial cost ofa long-term equity investment exceeds the Group's interest in the fair value of the investee's identifiable netassets at the date of acquisition, the investment is initially recognised at cost. Where the initial investmentcost is less than the Group's interest in the fair value of the investee's identifiable net assets at the date ofacquisition, the investment is initially recognised at the investor's share of the fair value of the investee'sidentifiable net assets, and the difference is recognised in profit or loss.Under the equity method, the Group recognises its share of the investee's profit or loss and othercomprehensive income as investment income or losses and other comprehensive income respectively, andadjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividendsor profit distributions, the carrying amount of the investment is reduced by the amount attributable to theGroup. Changes in the Group's share of the investee's owners' equity, other than those arising from theinvestee's net profit or loss, other comprehensive income or profit distribution (referred to as other changesin owners' equity), is recognised directly in the Group's equity, and the carrying amount of the investment isadjusted accordingly. In calculating its share of the investee's net profits or losses, other comprehensiveincome and other changes in owners' equity, the Group recognises investment income and othercomprehensive income after making appropriate adjustments to align the accounting policies or accountingperiods with those of the Group based on the fair value of the investee's identifiable net assets at the date ofacquisition.When the Group becomes capable of exercising joint control or significant influence (but not control) overan investee due to additional investment or other reasons, the Group uses the fair value of the previously-held equity investment, together with additional investment cost, as the initial investment cost under theequity method. If the original equity is classified as non-trading equity instrument investment measured atfair value and its changes are included in other comprehensive income, the relevant accumulative changesin fair value originally included in other comprehensive income will be transferred to retained earningswhen changed to equity method accounting.When the Group can no longer exercise joint control of or significant influence over an investee due topartial disposal of the equity investment or other reasons, the remaining equity investment shall be
accounting for using Accounting Standard for Business Enterprises No. 22 - Recognition and Measurementof Financial Instruments, and the difference between the fair value and the carrying amount of theremaining equity investment shall be charged to profit or loss for the current period at the date of the loss ofjoint control or significant influence. Any other comprehensive income previously recognised under theequity method shall be accounted for on the same basis as would have been required if the Group haddirectly disposed of the related assets or liabilities for the current period upon discontinuation of the equitymethod. Other movement of owner's equity related to original equity investment is transferred to profit orloss for the current period.When the Group can no longer exercise control over an investee due to partial disposal of the equityinvestment or other reasons, and the remaining equity after disposal can exercise joint control of orsignificant influence over an investee, the remaining equity is adjusted as using equity method fromacquisition. When the remaining equity can no longer exercise joint control of or significant influence overan investee, the remaining equity investment shall be accounted for using Accounting Standard forBusiness Enterprises No. 22-Recognition and Measurement of Financial Instruments, and the differencebetween the fair value and the carrying amount of the remaining equity investment shall be charged toprofit or loss for the current period at the date of loss of control.When the Group can no longer exercise control over an investee due to new capital injection by otherinvestors, and the Group can exercise joint control of or significant influence over an investee, the Grouprecognizes its share of the investee's new added net assets using new shareholding percentage. Thedifference between its new share of the investee's new added net assets and its decreased shareholdingpercentage of the original investment is recognized in profit or loss. And the Group adjusts to the equitymethod using the new shareholding percentage as if it uses the equity method since it obtains theinvestment.Unrealised profits and losses resulting from transactions between the Group and its associates or jointventures are eliminated to the extent of the Group's interest in the associates or joint ventures. Unrealisedlosses resulting from transactions between the Group and its associates or joint ventures are eliminated inthe same method as unrealised gains but only to the extent that there is no impairment.
(3) Criteria for determining the existence of joint control or significant influence over an investeeJoint control is the contractually agreed sharing of control of an arrangement, which exists only whendecisions about the relevant activities require the unanimous consent of the parties sharing control. Whenassessing whether the Group can exercise joint control over an investee, the Group first considers whetherno single participant party is in a position to control the investee's related activities unilaterally, and thenconsiders whether strategic decisions relating to the investee's related activities require the unanimousconsent of all participant parties that sharing of control. All the parties, or a group of the parties, control thearrangement collectively when they must act together to direct the relevant activities. When more than onecombination of the parties can control an arrangement collectively, joint control does not exist. A party thatholds only protective rights does not have joint control of the arrangement.Significant influence is the power to participate in the financial and operating policy decisions of aninvestee but does not have control or joint control over those policies. When determining whether theGroup can exercise significant influence over an investee, the effect of potential voting rights (for example,warrants, share options and convertible bonds) held by the Group or other parties that are currentlyexercisable or convertible shall be considered.When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) ormore but less than 50% of the voting shares, it has significant influence over the investee unless there isclear evidence to show that in this case the Group cannot participate in the production and businessdecisions of the investee, and cannot form a significant influence. When the Group owns less than 20% ofthe voting shares, generally it does not have significant influence over the investee, unless there is clearevidence to show that in this case the Group can participate in the production and business decisions of theinvestee so as to form a significant influence.
(4) Equity investments held-for-sale
Accounting for an entity investment, or a portion of an equity investment, in an associate or a joint venturethat is classified as held for sale refers to Note III.14.Any remaining equity investment that has not been classified as held for sale shall be accounted for usingthe equity method.When an equity investment in an associate or a joint venture previously classified as held for sale no longermeets the criteria to be so classified, it is accounted for using the equity method retrospectively as from thedate of its classification as held for sale.
(5) Method of impairment testing and impairment provision
For investments in subsidiaries, associates and joint ventures, refer to Note III. 23 for the Group's methodof asset impairment.
16. Investment property
Investment properties are properties held either to earn rental income or for capital appreciation or for both.The Group's investment properties include leased land use rights, land use right held with intention ofappreciation and subsequent transfer, and leased buildings.Investment properties are initially measured at acquisition cost, and depreciated or amortized using thesame policy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model, refer to Note III. 23.Gains or losses arising from the sale, transfer, retirement or disposal of an item of investment property aredetermined as the difference among the net disposal proceeds, the carrying amount of the item, relatedtaxes and surcharges, and are recognised in profit or loss for current period.
17. Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in production of goods, use in supply ofservices, rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognised when its related economic benefits are likely to flow to the Group and itscost can be reliably measured.Fixed asset are initially measured at cost.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the economicbenefits related to them are likely to flow into the Group and their costs can be measured reliably; the dailyrepair expenses of fixed assets that do not meet the criteria for subsequent expenditure of fixed assetscapitalization shall be included in the current profit or loss or the cost of relevant assets according to thebeneficiary at the time of occurrence. The carrying amount of the replaced part shall be derecognized.
(2) Depreciation of fixed assets
The cost of a fixed asset is depreciated using the straight-line method since the state of intended use, unlessthe fixed asset is classified as held for sale. Without considering impairment provision, the estimated usefullives, residual value rates and depreciation rates of each class of fixed assets are as follows:
| Category | Estimated useful life (years) | Residual value rate % | Annual depreciation rate % |
| Plant and buildings | 5-40 (Note) | 5.00 | 19.00-2.38 |
| Category | Estimated useful life (years) | Residual value rate % | Annual depreciation rate % |
| Machinery and equipment | 3-12 | 5.00 | 31.67-7.92 |
| Motor vehicles | 5 | 5.00 | 19.00 |
| Electronic equipment | 3-5 | 5.00 | 31.67-19.00 |
| Other equipment | 3-5 | 5.00 | 31.67-19.00 |
Note: ① For the immovable buildings on the leased land, they are depreciated over the shorter of the lease
term of land use right and the expected useful lives of the immovable buildings.
② The Group purchased freehold lands in India, Ecuador, Indonesia, Egypt and Bangladesh. No
depreciation is recognized for these lands because their estimated useful lives is uncertain. TheGroup tests for impairment on these lands every year.For impaired fixed assets, depreciation rate is calculated based on the carrying amounts after deducting theprovision for impairment.
(3) For the impairment of the fixed assets, please refer to Note III. 23.
(4) Useful lives, estimated residual values and depreciation methods are reviewed each year-end.The Group adjusts the useful lives of fixed assets if their expected useful lives are different with theoriginal estimates and adjusts the estimated net residual values if they are different from the originalestimates.
(5) Disposal of fixed assets
When the fixed assets are disposed, or no economic benefit is expected to be generated through the use ordisposal, the fixed assets shall be derecognised. The amount of the disposal income from the sale, transfer,scrapping or destruction of fixed assets after deducting its carrying value and relevant taxes is recorded intothe current profit or loss.
18. Construction in progress
Construction in progress is recognized based on the actual construction cost, including all expendituresincurred for construction Items, capitalised borrowing costs and any other costs directly attributable tobringing the asset to working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress, please refer to Note III. 23.
19. Borrowing costs
(1) Capitalisation criteria
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifyingasset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit orloss as incurred. The capitalisation of borrowing costs shall commence only when the following criteria aremet:
① Capital expenditures have been incurred, including expenditures that have resulted in payment of cash,transfer of other assets or the assumption of interest-bearing liabilities;
② Borrowing costs have been incurred;
③ The activities that are necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalisation period
The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomesready for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for thecurrent period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of afixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisitionor construction is resumed.
(3) Capitalisation rate of borrowing costs and calculation basis of capitalised amountFor interest expense actually incurred on specific borrowings, the eligible capitalised amount is the netamount of the borrowing costs after deducting any investment income earned before some or all of thefunds are used for expenditures on the qualifying asset. To the extent that the Group borrows fundsgenerally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine theamount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures onthat asset, the capitalisation rate shall be the weighted average of the borrowing costs applicable to theborrowings of the Group that are outstanding during the period, other than borrowings specifically for thepurpose of obtaining a qualifying asset.In the capitalisation period, exchange differences of specific borrowings in foreign currency shall becapitalised; exchange differences of general borrowings in foreign currency is recognised in profit or lossfor the current period.
20. Biological Assets
(1) Recognition criteria for biological assets
Biological assets are assets that composed of living animals and plants. Biological assets shall berecognized if they satisfy all of the following conditions:
① The entity owns or controls the biological asset due to past transactions or events;
② The economic benefits or potential service related to the biological asset are probable to flow into theentity;
③ The cost of the biological asset can be measured reliably.
(2) Classification of biological assets
The Group's biological assets include consumptive biological assets and productive biological assets.
① Consumptive biological assets
Consumptive biological assets is the biological assets held-for-sale or harvested as agricultural products inthe future, including livestock for sale, etc. Consumptive biological assets are initially measured at cost.The cost of self-propagating or breeding consumptive biological assets is the necessary expenditureincurred that can directly attributable to the asset before the asset is sold or shipped, including capitalizedborrowing costs. Subsequent expenditures after harvest such as management, protection and feedingexpenses are recognized in the profit or loss for the current period.When the consumptive biological assets are harvested or sold, the cost of goods sold is recognized based onthe carrying amount using the weighted average method.
② Productive biological assets
Productive biological assets are the biological assets held for the purpose of producing agricultural products,providing services or leasing, including livestock production. Productive biological assets are initiallymeasured at cost. The cost of productive biological asset by self-growing or propagating is the necessaryexpenditure directly attributable to the asset incurred before the asset reaches its intended production andoperation purpose, including capitalized borrowing costs.The subsequent expenditures for managing, protecting and feeding the productive biological assets incurredafter crown closure or reaching its intended objective of production and operation is recognized in profit orloss for the current period.Productive biological assets are depreciated by straight-line method. Depreciation for each period iscalculated and recognized based on the estimated useful lives less residual value of each type of biologicalassets.At the end of each year, the Group reviews the useful lives, estimated net residual values and depreciationmethods of productive biological assets. If there is any change, it is treated as a change in accountingestimates.The proceeds on disposal of productive biological asset for the sales, inventory loss, dead or damage lessthe carrying amount and related taxes are recognized in profit or loss for the current period.
③ Impairment of biological assets
When the net realizable value of a consumptive biological asset is lower than its carrying amount, thedifference is recognized as the impairment provision and the corresponding impairment loss is recognizedin profit or loss for the current period. If the previous factors caused the decline in value of consumptivebiological asset have disappeared at the balance sheet date, the previously recognized provision for declinein value of consumptive biological assets is reversed, to the extent of provision recognized in the past, thereversal amount is recognized in profit or loss for the current period.For the impairment of productive biological assets, please refer to Note III. 23.
21. Intangible assets
Intangible assets include land use rights, patent rights, non-patent rights, software use rights, trademarks,marketing network and maritime rights, etc.Intangible asset is initially measured cost and its useful life is determined at the time of acquisition. Anintangible asset with a finite useful life is amortized by a method which can reflect the expected realizationof economic benefits related to the asset since the intangible asset is available for use. When the expectedrealization of economic benefits cannot be reliably determined, intangible asset is amortized under straight-line method. An intangible asset with an indefinite useful life is not amortized.At the end of each year, the Group reviews the useful life and amortization method of intangible assets withfinite useful life. If there is any change, adjustment made to original estimates and it shall be treated as thechange of accounting estimate.On the balance sheet date, an intangible asset shall be derecognized in profit or loss for the current periodwhen it is not expected to generate future economic benefits.For the impairment of intangible assets, please refer to Note III. 23.
22. Research and development expenditure
The Group’s research and development (R&D) expenses are directly related to R&D activities, includingemployee compensation for R&D personnel, direct input costs, depreciation and long-term deferredexpenses, amortization of intangible assets, expenses for commissioned external research and development,and other expenses. Among these, the salaries of R&D personnel are allocated to R&D expenses based on
project hours. Equipment, production lines, and premises shared between R&D activities and otherproduction and business operations are allocated to R&D expenses based on reasonable allocation factors.Expenditure on an internal research and development project is classified into expenditure incurred duringthe research phase and expenditure incurred during the development phase.Expenditure during the research phase is expensed when incurred.Expenditure during the development phase is capitalised if the product or process is technically andcommercially feasible; the Group intends to to complete the development; the intangible asset can generateeconomic benefits, including there is evidence that the products produced using the intangible asset has amarket or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidencethat there is usage for the intangible asset; there is sufficient support in terms of technology, financialresources and other resources in order to complete the development and use or sell the intangible asset; anddevelopment costs can be measured reliably. Other development expenditure is recognised as an expense inthe period in which it is incurred.Research and development projects of the Group will enter into the development phase when they meet theabove conditions, technical and economic feasibility research is finished and necessary approval of theproject is obtained.Capitalised expenditure on the development phase is presented as development costs in the balance sheet,and is transferred to intangible assets when the project is completed to its intended use.
23. Impairment of assets
The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investmentproperties measured by the cost model, fixed assets, construction in progress, productive biological assetsmeasured by the cost model, right-of-use assets intangible assets, goodwill, etc. (excluding inventories,investment properties measured by the fair value model, deferred tax assets and financial assets) aredetermined as follows:
At the balance sheet date, the Group assesses whether there is any indication of impairment. If anyindication exists, the Group will estimate the recoverable amount and test for impairment. For goodwillarising from a business combination, intangible assets with indefinite useful life and intangible assets thatare not ready for use are tested for impairment annually, regardless of whether there is any indication ofimpairment.The recoverable amount of an asset is the higher of its fair value less disposal costs and the present value ofexpected future cash flows. The Group estimates the recoverable amount based on each individual asset. Ifit is impossible to estimate the recoverable amount of each individual asset, the Group determines therecoverable amount for the asset group to which the asset belongs. An asset group is determined based onwhether the main cash inflow generated by the asset group is independent of the cash inflow of other assetsor asset groups.An impairment loss is recognized in profit or loss when the recoverable amount of an asset is less than itscarrying amount. A provision for impairment of the asset is recognized accordingly.For the impairment test of goodwill, the carrying amount of goodwill arising from a business combinationshall be allocated to the relevant asset groups by using a reasonable method from the date of acquisition. Ifthe carrying amount of goodwill is unable to be allocated to the asset group, it shall be allocated to therelevant set of asset groups. Relevant asset group or set of asset groups is the asset group or group of assetgroups, that is expected to benefit from the synergies of the combination and not greater than the reportablesegment of the Group.If any impairment indication exists in asset group or set of asset groups related to goodwill, the Group shallperform an impairment test for the asset group or set of asset groups which does not contain goodwill first,the recoverable amount is calculated and recognized the corresponding impairment losses. Then the Group
shall perform an impairment test for the asset group or set of asset groups that contain goodwill bycomparing its carrying amount and recoverable amount. If the recoverable amount is less than the carryingamount, impairment loss of goodwill is recognized.Once an impairment loss is recognized, it cannot be reversed in a subsequent period.
24. Long-term deferred expenses
Long-term deferred expenses are recorded at the actual cost, and amortized using a straight-line methodwithin the benefit period. For long-term deferred expense that cannot bring benefit in future period, theGroup recognized its amortised cost in profit or loss for the current period.
25. Employee benefits
(1) Scope of employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange forservice rendered by employees or for the termination of employment relationship. Employee benefitsinclude short-term employee benefits, post-employment benefits, termination benefits and other long-termemployee benefits. Benefits provided to the Group's spouse, children, dependents, family members ofdeceased employees or other beneficiaries are also part of the employee benefits.According to liquidity, employee benefits are presented as employee benefits payable and long-termemployee benefits payable on the balance sheet.
(2) Short-term employee benefits
In the current period, the Group has accrued for the actual wages, bonuses, medical insurance foremployees based on standard rate, work injury insurance and maternity insurance and other socialinsurance and housing fund incurred and these are recognised as liabilities and corresponding costs in theprofit or loss.
(3) Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Definedcontribution plans are post-employment benefit plans which an entity pays a fixed amount of fee to anindependent fund and has no further payment obligation. Defined benefit plans are post-employmentbenefit plans other than defined contribution plans.Defined contribution plansDefined contribution plans include basic pension insurance, unemployment insurance, etc.The contribution amount calculated according to the define contribution plan is recognized as a liability asthe employee provides services, with a corresponding charge to profit or loss or included in the cost ofassets where appropriate.Defined benefit plansFor defined benefit plans, independent actuaries estimate the actuarial value at the balance sheet date todetermine the cost of welfare by using the projected unit credit method. The Group recognizes thefollowing components of employee benefits cost arising from defined benefit plan:
① Service cost, comprising current service cost, past service cost and any gain or loss on settlement.Current service cost is the increase in the present value of the defined benefit plan obligation resulting fromemployee service in the current period. Past service cost is the increase or decrease in the present value ofthe defined benefit plan obligation for employee service in prior periods, resulting from a plan amendment.
② Net interest on the net defined benefit plan liabilities or assets, including interest income on plan assets,
interest cost on the defined benefit plan obligation and interest on the effect of the asset ceiling.
③ Changes as a result of re-measurement of the net defined benefit liabilities or assets.Item ① and item ② above should be recognized in profit or loss for the current period unless anotheraccounting standard requires or permits the inclusion of the employee benefit costs in the cost of assets.Item ③ shall be recognized in other comprehensive income and shall not reclassified to profit or loss in asubsequent period. On termination of defined benefit plans, other comprehensive income previouslyrecognized is transferred to retained earnings.
(4) Termination benefits
The Group provides for termination benefits to the employees and shall recognise an employee benefitsliability for termination benefits, with a corresponding charge to the profit or loss for the current period, atthe earlier of the following dates: When the Group cannot unilaterally withdraw the offer of the terminationbenefits because of an employment termination plan or a redundancy proposal; or when the Grouprecognises the costs or expenses relating to a restructuring that involves the payment of the terminationbenefits.When the Group implements an internal retirement plan, the economic compensation before the formalretirement date is attributable to the termination benefits. The salaries and social insurance payment to bepaid for the early-retired employee are recognized as one-off expense in profit or loss for the current periodbetween the date when the employee stops rendering service and formal retirement. Economiccompensation after the date of formal retirement (such as normal pension) shall be accounted for as post-employment benefits.
(5) Other long-term employee benefits
Other long-term employee benefits provided by the Group to the employees satisfied the conditions forclassifying as a defined contribution plan; those benefits shall be accounted for in accordance with theabove requirements relating to defined contribution plan. When the benefits satisfied a defined benefit plan,it shall be accounted for in accordance with the above requirements relating to defined benefit plan, but themovement of net liabilities or assets in re-measurement of defined defined benefit plan shall be recorded inprofit or loss for the current period or cost of relevant assets.
26. Provisions
A provision is recognised for an obligation related to a contingency if all the following conditions aresatisfied:
(1) The Group has a present obligation;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be estimated reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related presentobligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money aretaken into account as a whole in reaching the best estimate. Where the effect of the time value of money ismaterial, provisions are determined by discounting the expected future cash flows. The Group reviews thecarrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current bestestimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a thirdparty, the amount of compensation is separately recognized as an asset when it is basically certain to bereceived. The recognized compensation amount shall not exceed the carrying amount of the provision.
27. General risk provision
General risk allowance is a provision from unrecognized earnings to partially cover probable losses thathave not been identified, after deducting the provision for loan losses that has been made after calculatingthe estimated value of the potential risks of risk assets using the standard method. Risk assets include loansand advances issued and other current assets held by subsidiaries engaged in financial operations.
28. Share-based Payment and Equity Instruments
(1) Types of share-based payment
The Group's share-based payment is classified into equity-settled share-based payment and cash-settledshare-based payment.
(2) Recognition method of the fair value of equity instruments
If an active market exists for the equity instruments such as stock option granted by the Group, the fairvalue of the equity instrument shall be determined according to the quoted price in the active market. If anactive market does not exist, the fair value of the equity instrument shall be determined by using the optionpricing model. The Group considers the following factors when selecting the model: A) the exercise priceof the option; B) the validity period of the option; C) current price of underlying stock; D) expectedvolatility of the stock price; E) expected dividend of the stock; F) risk-free interest rate within the validityperiod of the option.
(3) Basis for the best estimate of exercisable equity instruments
At each balance sheet date of the waiting period, the Group revises the number of equity instruments thatwill ultimately vest based on the best estimate of the latest number of eligible employees and othersubsequent information. On vesting date, the number of expected vested equity instruments should beagreed with the actual number vested.
(4) Accounting treatments for the implementation, modification and termination of share-based payment plansEquity-settled share-based payment is measured by the fair value of the equities instruments granted toemployees. As to an equity-settled share-based payment that the right may be exercised immediately afterthe grant, the fair value of the equity instruments shall, on the date of the grant, be charged to the relevantcost or expense and the capital reserves shall be adjusted accordingly. As to an equity-settled share-basedpayment that the right cannot be exercised until the vesting period comes to an end or until the prescribedperformance conditions are met, then on each balance sheet date within the vesting period, the servicesobtained in the current period shall, based on the best estimate of the number of vested equity instruments,be charged to the relevant costs or expenses at the fair value of the equities instruments on the date of thegrant, and the capital reserves shall be adjusted accordingly. After the vesting date, the confirmed relatedcosts or expenses and the total owner's equity will not be adjusted.Cash-settled share-based payments is measured by the fair value of liability undertaken by the Group at themean of share or other equity instruments. As to a cash-settled share-based payment instruments that theright may be exercised immediately after the grant, the fair value of the liability undertaken by the Groupshall, on the date of the grant, be charged to the relevant costs or expenses, and the liabilities shall beincreased accordingly. As to a cash-settled share-based payment that the right may not be exercised untilthe vesting period comes to an end or until the specified performance conditions are met, on each balancesheet date with in the vesting period, the services obtained in the current period shall, based on the bestestimate of the information about the vesting conditions, be charged to the relevant costs or expenses andthe corresponding liabilities at the fair value of the liability undertaken by the Group. On each balancesheet date and settlement date before the settlement of related liabilities, the fair value of liabilities is re-measured, and the changes are included in the current profit and loss.When the Group modifies the share-based payment plan, if the fair value of the distributed equityinstrument is increased due to the modification, the increment of the obtained services shall be recognized
accordingly; if the quantity of the distributed equity instrument is increased due to the modification, theincrement of obtained services shall be recognized accordingly. The increase in the fair value of equityinstruments refers to the difference between the fair value of equity instruments before and aftermodification on the modification date. If the modification decreases the fair value of equity instrumentsgranted or adopt other terms and conditions unfavorable to the employees, the accounting treatment for theservices obtained will continue, and be deemed that the change has never occurred unless the Groupcancelled some or all of the granted equity instruments.If the granted equity instruments are canceled or settled within the vesting period (except that canceled dueto failure to meet the vesting conditions), the Group shall regard the canceling or settlement as accelerationof the vest, and immediately recognize the amount supposed to be recognized within the residual vestingperiod in the current profit and loss and capital reserves. If employees or other parties can choose to meetthe conditions of unfeasible rights but fail to meet them within the waiting period, the Group will take it asthe cancellation of the instrument for granting rights and interests.
29. Revenue
(1) General principles
The Group recognizes the revenue when it satisfied its performance obligation stated in the contract, that is,when the control of the good or service is transferred to the customer.If the contract comprises two or more performance obligations, the Group allocates the transaction price toeach performance obligation based on the proportion of sales price for the goods or service committed byeach performance obligation at the commencement date of the contract. Revenue is recognized theallocated transaction for each performance obligation.If one of the following conditions is satisfied, the Group satisfies its performance obligation over time;Otherwise, the performance obligation is satisfies at a point in time:
① The customer simultaneously receives and consumes the economic benefits provided by the Group'sperformance as the Group's performs its obligation;
② The Group's performance produces good that the customer control as the good is created;
③ The Group's performance produces goods without an alternative use to the Group and the Group has anenforceable right to payment for performance completed to date.For performance obligation satisfied over time, the Group shall recognize the revenue over time bymeasuring the progress toward complete satisfaction of that performance obligation. If the progress cannotbe reasonably measured and the Group is expected to be compensated for the costs already incurred,revenue shall be recognized to the extent of the costs that have been incurred until the progress can bereasonably measured.For performance obligation satisfied at a point in time, the Group recognizes revenue at the time when thecontrol of good or service is transferred to the customer. The Group considers the following indicationswhen determining whether the control of good or service is transferred to the customer:
① The Group has a present right to payment for good or service, i.e. the customer has a present paymentobligation for the good
② The Group has transferred the legal title of the good to the customer, i.e. the customer has the legal title.
③ The Group has transferred the physical good to the customer, i.e. the customer has physical possession.
④ The Group has transferred the significant risks and rewards of ownership of the good to the customer,i.e., the customer has the significant risks and rewards of ownership.
⑤ The customer has accepted the good.
⑥ Other indications that the customer has the control of the good.
(2) Specific methods
The Group's revenue is mainly derived from sale of goods.Sale of goodsThe Group produces and sells feed, seedling, animal protection, hog and aquatic products.The Group recognizes the revenue when the customers collect the goods by door or the goods have beendelivered to the designated location, and the customers accept the goods and obtain the control of goods.The credit periods granted by the Group to its customers are consistent with the practice in each industryand have no significant financing components.The Group's cooperation model with franchiser is buyout sales, and sales revenue recognition is consistentwith the direct sales model.Some contracts with customers have sales rebate arrangements, resulting in variable consideration. TheGroup determines the best estimate of variable consideration on the basis of expectation or the most likelyvalue to occur. The transaction price that includes variable consideration does not exceed the value bywhich it is highly unlikely that a material reversal of the cumulative recognised revenue will occur whenthe related uncertainty is removed.For the sale of goods with sales return clauses, revenue recognition is limited to extent of cumulativerecognized revenue that is unlikely to be materially reversed. The Group recognizes a liability according tothe expected refund. The carrying amount of the returned goods less than the estimated cost to recover thegoods (including the decline in value for the returned goods) is recognized as an asset at the same time.
30. Contract costs
Contract costs include the incremental costs of obtaining a contract and costs to fulfill a contract.Incremental costs of obtaining a contract are the cost only incurred if the contract is obtained (i.e.commission). The Group expects to recover these costs and recognized as an asset of incremental costs ofobtaining a contract. Other expenditures of obtaining a contract except for the incremental costs expected tobe recovered, are recognized in profit or loss for the current period when incurred.The Group recognizes the costs to fulfill a contract as an asset if the costs are incurred for fulfilling theperformance obligation of the contract, do not fall within the scope of other accounting standards, such asinventory, and meet the following criteria:
① The costs directly related to a contract or an anticipated contract that can specifically identify, includingdirect labor, direct materials, manufacturing overheads (or similar expenses), costs explicitly chargeable tothe customer and other costs incurred solely for the contract;
② The costs generate or enhance resources of the Group that will be used in satisfying performanceobligations in the future.
③ The cost is expected to be recovered.
Assets recognized from costs of obtaining a contract and costs to fulfill a contract (hereinafter referred to asassets related to contract cost) shall be amortized in the profit or loss for the current period on the samebasis as revenue recognition of goods or services related to such assets. If the amortization period does notexceed one year, it is recognized in profit or loss for the current period when it occurs.
When the carrying amount of the assets related to the contract cost is greater than the difference betweenthe following two items. The Group shall make provision for impairment of the excess amount andrecognize as impairment loss:
① The remaining consideration that the Group is expected to be received as a result of the transfer of thegoods or services related to the asset;
② Costs probably incurred for transferring of the relevant goods or services.
31. Government grants
A government grant is recognized when there is reasonable assurance that the grant will be received andthat the Group will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount receivedor receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured atfair value. If fair value cannot be reliably determined, it is measured at a nominal amount of RMB 1.Government grants related to assets are grants whose primary condition is that the Group qualifying forthem should purchase, construct or otherwise acquire long-term assets. Government grants related toincome are grants other than those related to assets.For government grants with unspecified purpose, the amount of grants used to form a long-term asset isregarded as government grants related to an asset, the remaining amount of grants is regarded asgovernment grants related to income. If it is not possible to distinguish, the amount of grants is treated asgovernment grants related to income.A government grant related to an asset is offset against the carrying amount of the related asset, orrecognized as deferred income and amortized to profit or loss over the useful life of the related asset on areasonable and systematic manner. A grant that compensates the Group for expenses or losses alreadyincurred is recognized in profit or loss or offset against related expenses directly. A grant that compensatesthe Group for expenses or losses to be incurred in the future is recognized as deferred income, and includedin profit or loss or offset against related expenses in the periods in which the expenses or losses arerecognized. Government grants measured at nominal amounts are directly recognized in the profit or lossfor the current period. The Group applies the same method to the same or similar government grant.A grant related to ordinary activities is recognized as other income or offset against related expenses basedon the economic substance. A grant not related to ordinary activities is recognized as non-operating income.For repayment of a government grant, if the government grant is offset against the carrying amount of therelated asset at the time of recognition, the carrying amount of the related asset shall be adjusted. If there isrelated deferred income, the repayment is offset against the carrying amount of the deferred income, andany excess is recognized in profit or loss for the current period. Otherwise, the repayment is recognizedimmediately in profit or loss for the current period.If the government directly appropriates the interest subsidy to the lending bank, the Group recognized theloan as the amount received, and interest expense is calculated using the loan principal and policy-relatedpreferential interest rate. If the government directly appropriates the interest subsidy to the Group, theinterest subsidy is offset against interest expense.
32. Deferred tax assets and deferred tax liabilities
Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognised in profitor loss except to the extent that they relate to transactions or items recognised directly in equity andgoodwill arising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differencesrespectively, being the differences between the carrying amounts of assets and liabilities for financial
reporting purposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred inthe following transactions:
(1) initial recognition of goodwill, or assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or deductible loss) (except for individualtransactions in which the initial recognition of assets and liabilities results in equal amounts of taxabletemporary differences and deductible temporary differences);
(2) taxable temporary differences associated with investments in the Group, associates and joint ventures,and the Group is able to control the timing of the reversal of the temporary difference and it isprobable that the temporary difference will not reverse in the foreseeable future.The Group recognizes a deferred tax asset for the deductible temporary differences, deductible losses andtax credits carried forward to subsequent periods, to the extent that it is probable that future taxable profitswill be available against which deductible temporary differences, deductible losses and tax credits can beutilized, except for those incurred in the following transactions:
(1) a transaction that is not a business combination and that affects neither accounting profit nor taxableprofit (or deductible loss) (except for individual transactions in which the initial recognition of assetsand liabilities results in equal amounts of taxable temporary differences and deductible temporarydifferences);
(2) deductible temporary differences associated with investments in the Group, associates and jointventures, the corresponding deferred tax asset is recognized when both of the following conditions aresatisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it isprobable that taxable profits will be available in the future against which the temporary difference canbe utilized.At the balance sheet date, the Group measures the deferred tax assets and deferred tax liabilities accordingto the applicable tax rate during the period when the assets are expected to be recovered or the liabilities aresettled, and reflect the income tax impact of the expected asset recovery or liability settlement method onthe balance sheet date.At the balance sheet date, the Group reviews the carrying amount of any deferred tax asset. If it is probablethat sufficient taxable profits will not be available in future periods to allow the benefit of the deferred taxasset to be utilized, the carrying amount of the deferred tax asset is reduced. Any such reduction in amountis reversed to the extent that it becomes probable that sufficient taxable profits will be available.At the balance sheet date, deferred tax assets and deferred tax liabilities are presented as net amounts afteroffsetting when both of the following criteria are met:
(1) The taxpayer of the Company has the legal right to net settlement of current tax assets and current taxliabilities;
(2) Deferred tax assets and deferred tax liabilities are related to income taxes levied by the same taxcollection authority on the same taxpayer within the Company.
33. Leases
(1) Identification of leases
At inception of a contract, the Group, as a lessee or a lessor, shall assess whether the customer under thecontract has the right to obtain substantially all of the economic benefits from use of the identified assetduring the period of use and has to right to direct the use of the identified asset during the period of use.The Group considers the contract to be a lease or to include a lease if one of the parties to the contractconveys the right to control the use of one or more identified assets for a certain period of time in exchangefor consideration.
(2) The Group acts as the lessee
At the commencement date, the Group recognizes the right-of-use assets and lease liabilities for all leases,except for short-term leases and leases of low value assets that are accounted for according to thesimplified method.For the accounting policy of the right-of-use assets, see Note III. 34.Lease liabilities are initially measured at the present value of the outstanding lease payments at thecommencement date of the lease using the interest rate implicit in the lease. If the interest rate implicit inthe lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The leasepayments include: fixed payments and in-substance fixed payments; if there are lease incentives, therelevant amount of lease incentives shall be deducted; variable lease payments depending on an index or arate; the exercise price of the option provided that the lessee is reasonably certain that the option will beexercised; the amount to be paid to exercise the option to terminate the lease if the lease term reflects thatthe lessee will exercise the option to terminate the lease; and the amount expected to be payable based onthe residual value of the security provided by the lessee. The interest expense of the lease liability in eachperiod of the lease term shall be calculated in accordance with the fixed periodic interest rate and recordedinto the profit or loss of the current period. The variable lease payment not included in the measurement oflease liabilities shall be recorded into the current profit or loss when actually incurred.Short-term leasesA short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, exceptfor a lease that contains a purchase option.The Group records the lease payment amount of short-term lease into the cost of relevant assets or currentprofit or loss in each period of the lease term according to the straight-line methodLeases of Low-value assetsLeases of low value assets refer to lease of a single leased asset whose value is less than RMB40,000 whenit is a brand-new asset.The Group includes the lease payment of the low-value asset lease into the cost of the relevant asset orcurrent profit or loss in each period of the lease term according to the straight-line methodFor low-value asset leases, the Group chooses to apply the above simplified treatment depending on thespecific circumstances of each lease.Lease modificationsA lessee shall account for a lease modification as a separate lease if both: (i) the lease modifies the scope ofthe lease by adding the right to use one or more underlying assets; and (ii) the increase in considerationmust be commensurate with the stand-alone price for the increase in scope and any appropriate adjustmentsto that stand-alone price to reflect the circumstances of the particular contract.If a lease modification is not accounted for as a separate lease, at the effective date of the leasemodification, the Group reallocates the consideration in the modified lease, redetermines the lease term,and remeasures the present value of lease liability according to the revised lease payments and reviseddiscount rate.If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term, theGroup reduces the carrying amount of the right-of-use asset accordingly and recognizes the gain or lossrelated to partial termination or full termination of the lease in profit or loss for the current period.If all other lease modifications result in the remeasurement of the lease liabilities, the Group makes acorresponding adjustment to the carrying amount of right-of-use asset.
(3) The Group acts as the lessor
When the Group acts as the lessor, the leases that substantially transfer all the risks and rewards related tothe ownership of the assets are recognized as finance leases, and other leases other than finance leases arerecognized as operating leases.Finance leasesIn the case of finance leases, the Group takes the net investments in the lease as the carrying amounts offinance lease receivables at the commencement date, and the net lease investments are the sum of theunguaranteed residual value and the present value of the lease payments receivable at the commencementdate discounted at the implicit interest rate. The Group, as the lessor, calculates and recognizes interestincome for each period of the lease term at a fixed periodic rate. The variable lease payments obtained bythe Group as the lessor and not included in the measurement of the net lease investments shall be recordedinto the current profit or loss when actually incurred.The derecognition and impairment of finance lease receivable shall be accounted for in accordance with theprovisions of Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement ofFinancial Instruments and Accounting Standards for Business Enterprises No. 23 - Transfer of FinancialAssets.Operating leaseFor the rent in the operating lease, the Group shall recognize the profit or loss of the current period inaccordance with the straight-line method during each period of the lease term. The initial direct costsincurred in connection with the operating lease shall be capitalized, allocated on the same basis as therecognition of rental income during the lease term and recorded into the current profit or loss ininstallments. The variable lease payments obtained in connection with the operating lease and not includedin the lease payments shall be recorded into the current profit or loss when actually incurred.Lease modificationsThe Group treats it as a new lease for accounting treatment from the effective date of the modification, andthe amount of lease payments received in advance or receivable related to the lease before the modificationwill be regarded as the amount of new lease payments.The Group treats the finance lease modification as a separate lease if the following conditions are met: (i)the modification increases the scope of the lease by adding the right to use one or more underlying assets;and (ii) the consideration for the lease increases by an amount commensurate with the stand-alone price forthe increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstancesof the contract.If the finance lease modification is not accounted for as a separate lease, the Group will deal with themodified lease under the following circumstances: (i) If the modification takes effect on thecommencement date of the lease, the lease will be classified as an operating lease, and the Group will treatit as a new lease from the effective date of the lease modification, and take the net investment in leasebefore the effective date of the lease modification as the carrying amount of the leased asset; (ii) If themodification takes effect on the commencement date of the lease, the lease will be classified as a financelease, and the Group will conduct accounting treatment in accordance with the provisions of theAccounting Standards for Business Enterprises No. 22 - Recognition and Measurement of FinancialInstruments concerning the modification or renegotiation of the contract.
(4) Subleases
When the Group acts as a sublease lessor, it classifies the sublease based on the right-of-use assetsgenerated from the original lease. If the original lease is a short-term lease and the Group uses thesimplified method to account for the original lease, the sublease shall be classified as an operating lease.
34. Right-of-use assets
(1) Criteria for recognition of right-of-use assets
A right-of-use asset represents the right of the Group, as a lessee, to utilize the leased assets over theduration of an agreed-upon lease term.On the commencement date, the right-of-use assets shall be initially measured at cost. The cost includes:
the initial measurement of the lease liability; for the amount of lease payments paid on or before thecommencement date of the lease term, if there is a lease incentive, the relevant amount of lease incentivealready enjoyed will be deducted; initial direct costs incurred by the Group as the lessee; the costs whichthe Group, as the lessee, expects to incur in dismantling and removing the leased assets, restoring thepremises on which the leased assets are located or restoring the leased assets to the state agreed in the leaseterms. The Group, as the lessee, shall recognize and measure the costs of demolition and restoration inaccordance with the Accounting Standards for Business Enterprises No.13- Contingencies. Subsequentadjustments are made for any remeasurement of the lease liability.
(2) Depreciation method of the right-of-use assets
The Group uses the straight line method of depreciation. Where the Group, as the lessee, can reasonablydetermine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciationshall be accrued over the remaining useful life of the leased assets. Where it is impossible to reasonablydetermine that the ownership of the leased asset can be acquired at the expiration of the lease term,depreciation shall be accrued in the shorter period between the lease term and the remaining useful life ofthe leased asset.
(3) See Note III. 23 for the impairment test method of the right-of-use assets and the method for impairmentprovision.
35. Production safety fund
In accordance with the relevant regulations, the Group extracts production safety fund at the rate of 1.00%of operating revenue from the general freight business in the previous year.When the production safety fund is charged to the cost of relevant products or current profit or loss, it isalso included in the special reserve account.When the safety production fund is used in accordance to regulations, it is directly deducted from specialreserve if it is charged to current profit or loss; if it forms a fixed asset, the expense is firstly summarisedthrough construction in progress, and then recognised as a fixed asset when the safety project is completed;at the same time, it will be deducted from the special reserve in accordance with the cost of fixed asset, andthe same amount of accumulated depreciation will be recognised. At the same time, the cost of fixed assetsis deducted from the special reserve and accumulated depreciation of the same amount is recognised. Nodepreciation will be provided for the fixed assets in subsequent periods.
36. Repurchase Shares
When the Group repurchase its own shares, those shares are treated as treasury stock before they arecancelled or transferred. All the expenditures relating to the repurchased shares are recorded as the cost oftreasury stock. The consideration and transaction costs paid in share repurchase reduce the shareholders'equity. No profit or loss is recognized when repurchasing, transferring or canceling the Group's shares.When the treasury stock is transferred, the difference between the actual amount received and the carryingamount of treasury stock is recognized in capital reserve. Any excess is recognized in surplus reserve andretained earnings. When the treasury stock is cancelled, the share capital should be reduced to the extent ofthe total par value and the number of shares cancelled. The difference between the carrying amount and parvalue of the treasure stock cancelled is recognized in capital reserve. Any excess is recognized in surplusreserve and retained earnings.
37. Hedge Accounting
At the inception of a hedge relationship, the Group formally designates and documents the hedgerelationship to which the Group wishes to apply hedge accounting, the risk management objective and itsstrategy for undertaking the hedge. The documentation includes identification of the hedging instrument,the hedged item or transaction, the nature of the risk being hedged and how the Group will assess theeffectiveness of the hedging instrument.The Group assesses an ongoing basis to determine that the hedging instrument actually have been highlyeffective throughout the financial reporting periods for which they were designated. The hedge relationshipis ceased if it is unsatisfactory. Hedging accounting should meet the following requirements for theeffectiveness of hedging:
① There is an economic relationship between hedged items and hedging instruments.
② The impact of credit risk does not dominate in the change of value caused by the economic relationshipbetween hedged items and hedging instruments.
③ The hedging ratio of the hedging relationship should be equal to the ratio of the number of hedged itemsactually hedged by the enterprise to the actual number of corresponding hedging instruments. It should notreflect the imbalance of the relative weight of the hedged item and the hedging instrument. This imbalancewill cause the hedge to be invalid and may give accounting results that are inconsistent with objectives ofthe hedge accounting.The Group ceases the use of hedge accounting if one of the following situation is exist:
① The hedging relationship is no longer meets the risk management objectives due to changes in riskmanagement objectives.
② The hedging instrument is expired, sold, the contract is terminated or has been exercised.
③ The economic relationship between the hedged item and the hedging instrument is no longer existed, orthe impact of credit risk does not dominate in the change of value caused by the economic relationshipbetween hedged items and hedging instruments.
④ The hedging relationship is no longer satisfied other conditions for using hedging accounting.Fair value hedgeFair value hedge refers to a hedge of the exposure to changes in fair value of a recognized asset or liabilityor an unrecognized firm commitment, or a component of any such item, that is attributable to a particularrisk. This change in fair value would affect the Group's profit or loss, or other comprehensive income.Any gain or loss arising from fair value hedge is recognized in profit or loss for the current period. Gain orloss of hedged item arising from the exposure of risk is recognized in profit or loss for the current period,and adjusted the carrying amount of hedged items not measure at fair value accordingly.If the hedged item is a financial instrument (or its component) measured at amortized cost, any adjustmentto the carrying amount of the hedged item is amortized to profit or loss. The amortization is based on arecalculated effective interest rate at the date that amortization begins.When unrecognized firm commitment is designated as a hedged item, the cumulative change in the fairvalue of the hedged item subsequent to its designation is recognized as an asset or a liability with acorresponding gain or loss recognized in profit or loss for the current period. When an asset is obtained or aliability is committed through the fulfillment of confirmed commitment, the initial amount of such asset orliability is adjusted according to the cumulative change in the fair value of recognized hedged item.
Cash flow hedgingCash flow hedge refers to a hedge of exposure from cash flow changes. This variability in cash flows isattributable to a particular risk associated with a recognized asset or liability or a highly probably forecasttransaction and can affect profit or loss.The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge isrecognized as cash flow hedging reserve in other comprehensive income. Any remaining gain or loss on thehedging instrument that is hedged ineffective is recognized in profit or loss for the current period.For cash flow hedging, when the hedged item is an expected transaction, and a non-financial asset or non-financial liability arising from the expected transaction, or fair value hedge accounting is applicable to acommitment arising the expected transaction of non-financial assets or non-financial liability, the Grouptransfers the cash flow hedging reserve previously recognized in the other comprehensive income to theinitial recognition amount of such asset or liability.For cash flow hedges that do not fall into the above situations, the Group transfers cash flow hedgingreserve previously recognized in the other comprehensive income to profit or loss for the period when theprofit or loss is impacted by the expected cash flow being hedged.If the cash flow hedging reserve recognized in the other comprehensive income is a loss, the entire or partof the loss is not expect to be recovered in the future accounting period, the Group transfers theunrecovered portion from the other comprehensive income to profit or loss.When the Group ceases the use of hedging accounting for cash flow hedges, the cumulative cash flowhedging reserve recognized in the other comprehensive income is retained if the hedged cash flow isexpected to occur in the future. The cash flow hedging reserve is treated in accordance with the accountingpolicies of cash flow hedging mentioned above when the expected transaction has occurred. Thecumulative cash flow hedging reserve recognized in the other comprehensive income is transferred to profitor loss for the current period if the hedged cash flow is not expected to be occurred in the future. If thehedged cash flow is no longer probable to be occurred in the future but it may still be expected to beoccurred, the cumulative cash flow hedging reserve recognized in the other comprehensive income isretained until the expected transaction has occurred, it is then treated in accordance with the accountingpolicies of cash flow hedging mentioned above.
38. Significant accounting judgments and estimates
The Group assesses the significant accounting estimates and key assumptions on an ongoing basis, basedon the historical experience and other factors, including reasonable expectation of future events.It isprobable that the significant adjustment risk to the carrying amount of assets and liability in the nextaccounting period will arise from the following significant accounting judgments and key assumptions:
Measurement of expected credit losses on accounts receivable
The Group calculates the expected credit loss of accounts receivable through the default risk exposure ofaccounts receivable and the expected credit loss rate of accounts receivable. The Group determines theexpected credit loss rate based on the probability and loss rate of default. When determining the expectedcredit loss rate, the Group uses internal historical credit loss experience and other data, and adjusts thehistorical data in conjunction with current conditions and forward-looking information. When consideringforward-looking information, the indicators used by the Group include the risk of economic downturn,changes in the external market environment, technological environment and customer situation. The Groupregularly monitors and reviews assumptions related to the calculation of expected credit losses.
Impairment of goodwillThe Group assesses the impairment of goodwill at least once a year. The Group shall evaluate the value inuse for the cash-generating units to which goodwill has been allocated. When assessing the value in use, the
Group requires to estimate the expected future cash flows from the cash-generating unit and select anappropriate discount rate to calculate the present value.Deferred tax assetTo the extent that there is likely that there will be sufficient profits to offset losses, deferred tax assetsshould be recognized for all unutilized tax losses. The management requires using many judgments toestimate the time and amount of future taxable profits, in conjunction with tax planning strategies, todetermine the amount of deferred tax assets that should be recognized.
39. Changes in significant accounting policies, accounting estimates
(1) Significant changes in accounting policies
There were no significant changes in the Company's accounting policies during the year.
(2) Changes in significant accounting estimates
The Company has no significant changes in accounting estimates during the year.IV. Taxation
1. Main types of taxes and corresponding tax rates
| Tax | Tax base | Statutory tax rate |
| Value-added tax (VAT) | Taxable value-added amount (the taxable amount is calculated based on the balance of taxable sales multiplied by the applicable tax rate after deducting the allowable input tax for the current period) | Tax exemption, 3%, 5%, 6%, 9%, 10%, 13% |
| City maintenance and construction tax | Turnover tax paid | 1%, 5%, 7% |
| Property tax | For ad valorem basis, 1.2% of the residual value after deducting 30% from the original value of the property; For rental basis, 12% of the rental income. | 1.2%, 12% |
| Corporate income tax | Taxable income | Please refer to Note IV. 1 |
Note: Except for the following tax entity who are subjected to different corporate income tax rates, all other
tax entity within the scope of consolidation uses 25% corporate income tax rate.
| Taxpayer | Income tax rate (%) |
| Guangdong Haid Group Co., Ltd. | 15 |
| Shandong Yitun Ecological Agriculture Co., Ltd. | 20 |
| Shaoguan Yixian Food Co., Ltd. | 20 |
| Guangdong Yitun Supply Chain Management Co., Ltd. | 15 |
| Guangzhou Peiqi Investment Co., Ltd. | 20 |
| Guangzhou Haiyue Agriculture and Animal Husbandry Co., Ltd. | 20 |
| Guangdong Haid Bio-Tech Group Co., Ltd. | 15 |
| Guangzhou Mutai Feed Technology Co., Ltd. | 20 |
| Zhuhai Haiyiyuan Supply Chain Management Co., Ltd. | 20 |
| Yangling Haid Feed Co., Ltd. | 15 |
| Taxpayer | Income tax rate (%) |
| Gansu Haid Feed Co., Ltd. | 15 |
| Weinan Haid Feed Co., Ltd. | 20 |
| Wuwei Haid Feed Co., Ltd. | 20 |
| Liaocheng Haishin Enterprise Management Consulting Co., Ltd. | 20 |
| Anyang Haiyue Feed Technology Co., Ltd. | 20 |
| Zoucheng Haiyue Enterprise Management Consulting Co. , Ltd | 20 |
| Yinan Haiyue Biotechnology Co., Ltd | 20 |
| Foshan Haipu Feed Co., Ltd | 20 |
| Qingyuan Haibei Biotechnology Co., Ltd | 15 |
| Chengdu Haid Biotechnology Co., Ltd | 15 |
| KINGHILL HOLDINGS PTE. LTD. | 17 |
| KINGHILL PTE. LTD. | 17 |
| Haid Egypt Co., Ltd | 22.5 |
| Haid Egypt Aquatic Co., Ltd | 22.5 |
| HAID AGRICULTURAL AND TECHNOLOGY NIGERIA LIMITED | 30 |
| KINGHILL RESOURCES PTE. LTD. | 17 |
| VINH LONG HAILIANKE BIOTECHNOLOGY CO., LTD | Tax exemption |
| KINGHILL AGRI PTE. LTD. | 17 |
| PT.HAILIANK TECHNOLOGY INDONESIA | 22 |
| PT.HAID AGRICULTURE INDONESIA | 22 |
| PT.HAID SURABAYA TRADING | 22 |
| PT HISENOR TECHNOLOGY INDONESIA | 22 |
| HAID FEED BANGLADESH LIMITED | 3, 10, 15 |
| PT HAID BIOTECHNOLOGY INDONESIA | 22 |
| Dachuan Biotechnology Co., Ltd. | 27.5 |
| PT HISENOR GENETICS INDONESIA | 22 |
| Hisenor Aquatic Seed Industry Technology Pte. Ltd. | 17 |
| KINGHILL INVESTMENT (SINGAPORE) PTE. LTD. | 17 |
| KINGHILL INTERNATIONAL (SINGAPORE) PTE. LTD. | 17 |
| Huizhou Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Guangzhou Haizenong Fisheries Development Co., Ltd. | 20 |
| Zhaoqing Haizenong Fisheries Development Co., Ltd. | 20 |
| Qingyuan Haizenong Fisheries Technology Co., Ltd. | 20 |
| Liuzhou Haizenong Fisheries Technology Co., Ltd. | 20 |
| Guangzhou Nansha Haishengyuan Aquaculture Technology Co., Ltd. | 20 |
| Guangzhou Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Shanwei Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Yongji Haijingzhou Fisheries Technology Co., Ltd. | 20 |
| Jingtai Haijingzhou Fisheries Technology Co., Ltd. | 20 |
| Taxpayer | Income tax rate (%) |
| Shanwei Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Huizhou Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Raoping Haizenong Marine Biotechnology Co., Ltd. | 20 |
| Zhejiang Haizhengnong Marine Biotechnology Co., Ltd. | 20 |
| Jiangmen Haizenong Marine Biotechnology Co., Ltd | 20 |
| Zhuhai Haizenong Marine Biotechnology Co., Ltd | 20 |
| Zhanjiang Haizenong Marine Biotechnology Co., Ltd | 20 |
| Shanwei Haizhengnong Marine Biotechnology Co., Ltd | 20 |
| Shanwei Haizenong Gene Technology Co., Ltd | 20 |
| Yingkou Haishengyuan Biotechnology Co., Ltd | 20 |
| Shantou Haizenong Marine Biotechnology Co., Ltd | 20 |
| Beihai Haizenong Seed Industry Technology Co., Ltd | 20 |
| Rongcheng Yandunjiao Feed Co., Ltd | 20 |
| Zhenyuan County Haisheng Protein Feed Co., Ltd | 20 |
| Guangze County Haisheng Biotechnology Co., Ltd. | 20 |
| Haid Supply Chain Management (Zhuhai) Co., Ltd. | 15 |
| HAID INTERNATIONAL (SINGAPORE) PTE. LTD. | 17 |
| HAID BIOTECHNOLOGY INDUSTRY (SINGAPORE) PTE. LTD. | 17 |
| Sanya Fengmu Agricultural Development Co., Ltd. | 15 |
| Guizhou Delian Zhiyun Network Technology Co., Ltd. | 20 |
| Xiyu Haisheng (Guangzhou) Supply Chain Co., Ltd. | 20 |
| Chaoyang Haihong Agricultural Development Co., Ltd. | 20 |
| Dandong Haifeng Agricultural Development Co. | 20 |
| Haiyang Haihe Feed Co., Ltd | 20 |
| Ezhou Haifeng Ecological Agriculture Co., Ltd | 20 |
| Nantong Fengmu Trading Co., Ltd | 20 |
| Sichuan Haimufeng Agricultural Co., Ltd | 20 |
| Haid (Zhengzhou) Digital Technology Co., Ltd. | 20 |
| Rongcheng Haituo Biotechnology Co., Ltd | 20 |
| Guangzhou Shuohai Commercial Management Co., Ltd | 20 |
| Beijing Haicheng Feed Technology Co., Ltd | 20 |
| Guangzhou Haibio Biotechnology Co., Ltd | 20 |
| Haid International Group Limited | 8.25, 16.5, Tax exemption |
| China Haid Feed Group (HK) Limited | 16.5, Tax exemption |
| Rickworth Investments Limited | Tax exemption |
| Hong Kong Longreat Trading Co., Limited | 16.5, Tax exemption |
| HAID FEED COMPANY LIMITED | 15 |
| DONG NAI HAID FARM COMPANY LIMITED | 15 |
| PANASIA TRADING RESOURCES LIMITED | Tax exemption |
| Taxpayer | Income tax rate (%) |
| SHENG LONG INTERNATIONAL LTD. | Tax exemption |
| SHENG LONG BIO-TECH INTERNATIONAL CO., LTD | 10, 15, 17, 20, Tax exemption |
| Sheng Long Biotech (Hai Duong) International Co., Ltd. | Tax exemption |
| Long Sheng International Co., Ltd. | 15, 20 |
| Hisenor International Limited | Tax exemption |
| Kembang Subur International Ltd. | 24 |
| Namduong Vietnam Aquatic Hatchery Co., Ltd. | Tax exemption |
| Sheng Long Bio Tech (M) Sdn. Bhd. | 24 |
| SHENG LONG AQUA TECHNOLOGY (M) SDN. BHD. | 24 |
| THANG LONG (VINH LONG) BIOTECH CO., LTD | Tax exemption |
| Zhuhai Hailong Biotechnology Co., Ltd | 15 |
| Yiyang Dachuan Feed Co., Ltd | 20 |
| Yunnan Haid Biotechnology Co, Ltd. | 15 |
| Guangdong Mu Tai Biotechnology Co., Ltd | 15 |
| Zhaoqing Haid Feed Co., Ltd | 20 |
| Wuhan Shuijiyuan Biotechnology Co., Ltd | 20 |
| LANKING PTE. LTD. | 17 |
| Haid Lanking International Trading Inc. | Note 1 |
| LANKING NEMO(SG) PTE. LTD. | 17 |
| LANKING RICKWORTH PTE. LTD. | 17 |
| Lanking Nano PTE. LTD. | 17 |
| HAI DUONG HAID COMPANY LIMITED | 15 |
| HAI DAI COMPANY LIMITED | 15 |
| VINH LONG HAI DAI CO., LTD | Tax exemption |
| BINH DINH HAI LONG CO., LTD | Tax exemption |
| HISTAR VIETNAM AQUATIC BREEDING COMPANY LIMITED | 20 |
| BINH PHUOC HAI LONG COMPANY LIMITED | Tax exemption |
| MEKONG HAI LONG COMPANY LIMITED | 10 |
| Guangzhou Changsheng Logistics Co., Ltd. | 20 |
| Guangdong Haid Pet Co., Ltd. | 20 |
| Suizhou Haiding Veterinary Service Co., Ltd | 20 |
| Yuncheng Haiding Veterinary Service Co., Ltd | 20 |
| Liaocheng Haiding Veterinary Service Co., Ltd | 20 |
| Yucheng Haiding Agriculture and Animal Husbandry Co., Ltd | 20 |
| Danxian Haiding Veterinary Service Co., Ltd | 20 |
| Xinxiang Haiding Feed Co., Ltd | 20 |
| Xinxiang Haireida Feed Co., Ltd | 20 |
| Heze Haiding Feed Technology Co., Ltd | 15 |
| Heze Dingxin Veterinary Service Co., Ltd | 20 |
| Taxpayer | Income tax rate (%) |
| Jining Sishui Dingxin Veterinary Service Co., Ltd | 20 |
| Fei County Haireida Veterinary Service Co., Ltd | 20 |
| Jinan Fengcheng Agriculture and Animal Husbandry Co., Ltd | 20 |
| Tengzhou Fengcheng Feed Co., Ltd | 20 |
| Binzhou Haiding Veterinary Service Co., Ltd | 20 |
| Junan Haiding Feed Co., Ltd | 20 |
| Sihong Haiding Feed Co., Ltd | 20 |
| Linyi Haiding Veterinary Service Co., Ltd | 20 |
| Linyi Haiding Lusheng Feed Co., Ltd | 20 |
| Qinggang Fengcheng Baizun Feed Co., Ltd | 20 |
| Suihua Fengcheng Baizun Feed Co., Ltd | 20 |
| Chengwu Fengcheng Feed Co., Ltd | 20 |
| Weifang Binhai District Haiding Feed Co., Ltd | 20 |
| Xuzhou Haireida Feed Co., Ltd | 20 |
| Linyi Haiding Biological Feed Co., Ltd | 20 |
| Gansu Fengying Technology Co., Ltd | 20 |
| Qingdao Dinghao Fengying International Trade Co., Ltd | 20 |
| Liaocheng Fengcheng Feed Co., Ltd | 20 |
| Yinan Haiding Biological Technology Co., Ltd | 20 |
| HAID GROUP HAIDING AGRICULTURE AND ANIMAL HUSBANDRY KAZAKHSTAN CO., LTD | 20 |
| Zhuhai Fengcheng Supply Chain Management Co., Ltd | 15 |
| Yancheng Haid Biological Feed Co., Ltd | 20 |
| Guangzhou Heshengtang Biotechnology Co., Ltd. | 20 |
| Henan Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 20 |
| He Xin Technology (Henan) Co., Ltd. | 20 |
| Guangzhou Meinuo Investment Management Co., Ltd. | 20 |
| Guangdong Haireite Supply Chain Management Co., Ltd. | 15 |
| Yangxin County Bairong Aquatic Seed Co., Ltd. | 20 |
| Jingzhou Bairong Aquatic Seed Co., Ltd. | 20 |
| Shandong Bairong Aquatic Seed Co., Ltd. | 20 |
| Hainan Bairong Aquatic Seed Co., Ltd. | 20 |
| Zhaoqing Baishengyuan Aquatic Seed Co., Ltd. | 20 |
| Guangdong Baishengyuan Aquatic Seed Co., Ltd | 20 |
| Zhaoqing Bairong Seed Technology Co., Ltd | 20 |
| Hunan Innovation Biotechnology Co., Ltd | 15 |
| Guangdong Shunde Haid Biotechnology Co., Ltd | 20 |
| Shijiazhuang Weike Biotechnology Co., Ltd | 15 |
| Shenyang Haid Feed Co., Ltd | 20 |
| Jiangsu Haihe Agriculture and Animal Husbandry Co., Ltd | 20 |
| Taxpayer | Income tax rate (%) |
| Xuzhou Haihe Feed Co., Ltd | 20 |
| Anshan Dachuan Feed Technology Co., Ltd | 20 |
| Haid Pet Food (Weihai) Co., Ltd | 20 |
| Wuhan Zeyi Investment Co., Ltd | 20 |
| Ganzhou Haid Biotechnology Co, Ltd. | 15 |
| Guangzhou Puno Investment Management Co., Ltd | 20 |
| Guangzhou Yuannong Investment Management Co., Ltd | 20 |
| Weifang Daxin Feed Co., Ltd | 20 |
| Linyi Haihe Agriculture and Animal Husbandry Technology Co., Ltd | 20 |
| Qingdao Huaxin Feed Co., Ltd | 20 |
| Linyi Zhizhu Xia Breeding Technology Service Co., Ltd | 20 |
| Yantai Zhizhu Xia Breeding Service Co., Ltd | 20 |
| Hunan Jinhuilong Technology Co., Ltd | 15 |
| Yueyang Jinhuilong Biotechnology Co., Ltd | 20 |
| Shijiazhuang Huilong Feed Co., Ltd | 20 |
| Handan Huilong Feed Co., Ltd | 20 |
| Huai'an Hui Long Feed Co., Ltd | 20 |
| Zhuhai Dachuan Biotechnology Co., Ltd | 20 |
| Guangzhou Ming'er Bio-Technology Co., Ltd | 20 |
| Zhanjiang Rongda Feed Co., Ltd | 20 |
| Guangzhou Ronghai Aquaculture Technology Co., Ltd | 20 |
| Zhongshan Rongda Aquatic Seedling Co., Ltd | 20 |
| Foshan Rongda Aquatic Seedling Co., Ltd | 20 |
| Guangzhou Ronghai Seedling Technology Co., Ltd | 20 |
| Yichang Zhihai Agriculture and Animal Husbandry Co., Ltd | 20 |
| Mianyang Zhonggui Feed Co., Ltd | 20 |
| Dali Haiwang Feed Co., Ltd | 20 |
| Yunnan Zhonggui Feed Co., Ltd | 20 |
| Chongqing Zhihai Feed Co., Ltd | 20 |
| Chongqing Hainong Veterinary Services Co., Ltd | 20 |
| Guiyang Haid Zhihai Feed Co., Ltd | 20 |
| Qujing Zhihai Feed Co., Ltd | 20 |
| Hail (Luliang) Biotechnology Co., Ltd | 20 |
| Yibin Zhihai Feed Co., Ltd | 20 |
| Meishan Haid Zhihai Feed Co., Ltd | 20 |
| Guangzhou Xingnong Ecological Agriculture and Animal Husbandry Development Co., Ltd | 20 |
| Hainan Haid Biotechnology Co., Ltd | 15 |
| Liuzhou Haid Feed Co., Ltd | 20 |
| Guangdong Qingyuan Guanghong Feed Co., Ltd | 20 |
| Taxpayer | Income tax rate (%) |
| Mianyang Hailong Feed Co., Ltd | 20 |
| Meishan Haid Biotechnology Co., Ltd | 20 |
| Guangzhou Nongdao Feed Co., Ltd | 20 |
| Yingkou Dachuan Feed Technology Co., Ltd | 20 |
| Hainan Zhuangmei Agriculture and Animal Husbandry Co., Ltd | 15 |
| Yancheng Runchuan Agricultural Technology Co., Ltd | 20 |
| Jiangxi Gunan Herbal Technology Collaborative Innovation Co., Ltd | 20 |
| Jiangxi Renxintang Biotechnology Co., Ltd | 20 |
| Guangxi Rongchuan Feed Co., Ltd | 20 |
| Heshan Haiwei Feed Co., Ltd | 20 |
| Ganzhou Liandoli Feed Technology Co., Ltd | 15 |
| Maoming Haiwei Feed Co., Ltd | 20 |
| Sichuan Hailong Biotechnology Co., Ltd | 20 |
| Nanning Dachuan Biotechnology Co., Ltd | 20 |
| Yongzhou Haid Biotechnology Co., Ltd | 20 |
| Guiyang Haid Biotechnology Co., Ltd | 20 |
| Guilin Haid Biotechnology Co., Ltd | 20 |
| Guiyang Dachuan Biotechnology Co., Ltd | 20 |
| Guangdong Haifulei Biotechnology Co., Ltd | 20 |
| Qingyuan Hailier Biotechnology Co., Ltd | 20 |
| Guangdong Haiqi Investment Co., Ltd | 20 |
| Heze Haibo Youmei Technical Services Co., Ltd | 20 |
| Hubei Haiqi Technical Services Co., Ltd | 20 |
| Guangzhou Haiqi Technology Co., Ltd | 20 |
| Meizhou Haiqi Technology Co., Ltd | 20 |
| Zhangzhou Haiqi Veterinary Medicine Co., Ltd | 20 |
| Maoming Haiqi Technology Co., Ltd | 20 |
| Yangjiang Haiqi Technology Co., Ltd. | 20 |
| Qingyuan Haiqi Technology Co., Ltd. | 20 |
| Gansu Muqi Agricultural Technology Co., Ltd. | 20 |
| Raoping County Haide Biotechnology Co., Ltd. | 20 |
| Yulin Haiqi Biotechnology Co., Ltd. | 20 |
| Qinzhou Pubei County Haiqi Biotechnology Co., Ltd. | 20 |
| Xingtai Haiqi Animal Husbandry Technology Service Co., Ltd. | 20 |
| Suixi Haihe Veterinary Medicine Co., Ltd. | 20 |
| Yangchun Haihe Veterinary Medicine Co., Ltd. | 20 |
| Luoding Haihe Veterinary Medicine Co., Ltd. | 20 |
| Yangling Haiqi Agricultural Technology Co., Ltd. | 20 |
| Yangling Huashite Testing Technology Co., Ltd. | 20 |
| Taxpayer | Income tax rate (%) |
| Bobo Haihe Veterinary Medicine Co., Ltd. | 20 |
| Jiangmen Haiqi Technology Co., Ltd. | 20 |
| Xishui Haiqi Technical Services Co., Ltd. | 20 |
| Jingshan Haiqi Technical Services Co., Ltd. | 20 |
| Huaihua Haiqi Technical Services Co., Ltd. | 20 |
| Jieshou Haiqi Technical Services Co., Ltd. | 20 |
| Kunming Haiqi Technical Services Co., Ltd. | 20 |
| Mianyang Haiqi Breeding Technology Co., Ltd. | 20 |
| Nanchang Haiqi Veterinary Medicine Co., Ltd | 20 |
| Sichuan Haiqi Biotechnology Co., Ltd | 20 |
| Ya'an Haiqi Animal Husbandry Technology Co., Ltd | 20 |
| Kaifeng Haiqi Technical Services Co., Ltd | 20 |
| Hengyang Haiqi Technical Services Co., Ltd | 20 |
| Jingzhou Haiqi Technical Services Co., Ltd | 20 |
| Changde Haide Veterinary Medicine Co., Ltd | 20 |
| Shaoyang Haid Feed Co., Ltd | 20 |
| Guangzhou Dening Feed Co., Ltd | 20 |
| Foshan Dazhi Biotechnology Co., Ltd | 20 |
| Taishan Debao Feed Co., Ltd | 20 |
| Maoming Debao Agriculture and Animal Husbandry Co., Ltd | 20 |
| Guangzhou Debao Nongshan Feed Co., Ltd | 20 |
| Foshan Hanheng Luggage Manufacturing Co., Ltd | 20 |
| Guangzhou Jiutian Qingtan Livestock Farm Co., Ltd | 20 |
| Shaoguan Dachuan Biotechnology Co., Ltd | 20 |
| Guizhou Hailongwang Biotechnology Co., Ltd | 20 |
| Guangdong Huashite Testing Technology Co., Ltd | 20 |
| Tianjin Haid Biotechnology Co., Ltd | 20 |
| Yunnan Hairei Biotechnology Co., Ltd | 20 |
| Henan Haid Kyushu Biotechnology Co., Ltd | 20 |
| Chaozhou Haid Biotechnology Co., Ltd | 20 |
| Haishin (Tianjin) Biotechnology Co., Ltd | 20 |
| Haid Bio (Beijing) Technology Co., Ltd. | 20 |
| Dalian Haid Biotechnology Co., Ltd. | 20 |
| Shenzhen Haid Biotechnology Co., Ltd. | 20 |
| Tongliao Haid Biotechnology Co., Ltd. | 20 |
| Weifang Haid Biotechnology Co., Ltd. | 20 |
| Hubei Haid Seed Industry Technology Co., Ltd. | 20 |
| Guiyang Haiyue Feed Technology Co., Ltd. | 20 |
| Inner Mongolia Haishan Feed Co., Ltd. | 20 |
| Taxpayer | Income tax rate (%) |
| Huizhou Haid Biotechnology Co., Ltd. | 20 |
| Guangzhou Hualai Ke Testing Technology Co., Ltd. | 20 |
| Huaibei Haid Bio Feed Co., Ltd. | 20 |
| Guigang Hailong Bio Technology Co., Ltd. | 20 |
| Xinyi Fengmu Trading Co., Ltd. | 20 |
| Guizhou Haid Feed Co., Ltd | 20 |
| Pizhou Haid Ruminant Feed Co., Ltd | 20 |
| Nanping Haid Biotechnology Co., Ltd | 20 |
| Huangshi Chenke Feed Technology Co., Ltd | 20 |
| Taikun Feed (Tuanfeng) Co., Ltd | 20 |
| Quzhou Haid Hailong Bio-Feed Co., Ltd | 20 |
| HAID (ECUADOR) FEED CIA.LTDA. | Tax exemption |
| Xinyu Haihe Biotechnology Co., Ltd | 20 |
| Zhuhai Haiyue Agriculture and Animal Husbandry Co., Ltd | 15 |
| Qingyuan Haifulei Biotechnology Co., Ltd | 20 |
| Guangdong Kenong Culture Co., Ltd | 20 |
| Guangzhou Haiying Commercial Management Co., Ltd | 20 |
| Lishui Haid Huatong Biotechnology Co., Ltd | 20 |
| Ningdu Haid Biotechnology Co., Ltd | 20 |
| Huai'an Dachuan Feed Co., Ltd | 20 |
| Zhuhai Haibei Supply Chain Management Co., Ltd | 15 |
| Shenyang Shengkang Biotechnology Service Co., Ltd | 20 |
Note 1: Under the U.S. federal tax system, a multi-tiered tax rate structure is applied for Haid LankingInternational Trading Inc.This subsidiary had a loss for the year and was not subject to federal tax. Incometax is generally levied at a rate of 8.84% on taxable income in California. Therefore, the subsisidary is onlyrequired to pay a minium California tax amount of $800 for this year.Note 2: In accordance with the Pillar Two Model Rules issued by the Organisation for Economic Co-operation and Development (OECD), any group with consolidated annual revenues of EUR 750 million ormore will be subject to the global minimum tax rules. Under these rules, the Group is required to pay a top-up tax for the difference between the effective tax rate under the Global Anti-Base Erosion (GloBE) rulesand the minimum tax rate of 15% for its operations in each jurisdiction. Some of the Group's subsidiariesare registered in jurisdictions where the relevant regulations under the Pillar Two Model Rules have beenenacted and will come into effect in 2024 or 2025. The Group has calculated and provided for income taxesin accordance with the relevant calculation rules under the Pillar Two Model Rules.
2. Tax preferential treatments and approval documents
(1) Value-added tax (VAT)
Pursuant to the Notice on the Exemption of Value-Added Tax on Feed Products issued by the Ministry ofFinance and the State Administration of Taxation (CaiShui [2001] No. 121), enterprises are exempt fromvalue-added tax (VAT) on feed products that fall within the scope of tax-exempt feed products.In accordance with Article 15 of the Interim Regulations of the People's Republic of China on Value-AddedTax, which stipulates that agricultural products produced and sold by agricultural producers are exempt
from value-added tax, enterprises are exempt from VAT on the sales of their self-produced agriculturalproducts.In accordance with the provisions of the Notice on the Application of Low VAT Rates and SimplifiedMethods for Levying VAT on Certain Goods issued by the Ministry of Finance and the State Administrationof Taxation (CaiShui [2009] No. 9) and the Notice on the Simplification of VAT Collection Rate Policies(CaiShui [2014] No. 57), sales revenue from self-produced biologics made from microorganisms, microbialmetabolites, animal toxins, human or animal blood, or tissues is subject to VAT at a simplified collectionrate of 3%.In accordance with the provisions of the Announcement on Policies for VAT Exemptions and Reductionsfor Small-Scale VAT Taxpayers (Announcement No. 1 of 2023 by the Ministry of Finance and the StateTaxation Administration) and the Announcement on Policies for VAT Exemptions and Reductions forSmall-Scale VAT Taxpayers (Announcement No. 19 of 2023 by the Ministry of Finance and the StateTaxation Administration), from January 1, 2023, to December 31, 2027: VAT is exempted for small-scaleVAT taxpayers with monthly sales of RMB100,000 (inclusive) or less, for taxable sales revenue subject to a3% collection rate, VAT is levied at a reduced rate of 1%, for prepaid VAT items subject to a 3% pre-collection rate, VAT is prepaid at a reduced rate of 1%.In accordance with the provisions of the Announcement on the Extension of VAT Policies for FinancingGuarantees for Farmers, Small and Micro Enterprises, and Individual Business Households(Announcement No. 18 of 2023 by the Ministry of Finance and the State Taxation Administration), fromAugust 1, 2023, to December 31, 2027: VAT is exempted on guarantee fees earned by taxpayers forproviding financing guarantees for loans and bond issuances to farmers, small enterprises, microenterprises, and individual business households, VAT is also exempted on re-guarantee fees earned forproviding re-guarantees for the aforementioned financing guarantees (hereinafter referred to as the originalguarantees).In accordance with the provisions of the Announcement on Further Supporting Tax Policies forEntrepreneurship and Employment of Key Groups (Announcement No. 15 of 2023 by the Ministry ofFinance, the State Taxation Administration, the Ministry of Human Resources and Social Security, and theMinistry of Agriculture and Rural Affairs), from January 1, 2023, to December 31, 2027: enterprises thathire individuals who have been lifted out of poverty, as well as those who have been registered asunemployed for more than six months with public employment service institutions of the human resourcesand social security departments and hold an Employment and Entrepreneurship Certificate or anEmployment and Unemployment Registration Certificate (noting “Enterprise Tax Absorption Policy”), andwho sign a labor contract with a term of more than one year and legally pay social insurance premiums,shall, starting from the month when the labor contract is signed and social insurance premiums are paid, begranted a fixed deduction for value-added tax (VAT), urban maintenance and construction tax, educationsurcharge, local education surcharge, and enterprise income tax, based on the actual number of hires for aperiod of three years. The fixed deduction amount is RMB6,000 per person per year, with a maximumincrease of 30%. The people's governments of provinces, autonomous regions, and municipalities directlyunder the Central Government may determine the specific deduction amount within this range according tothe actual situation in their respective regions. The taxable basis for urban maintenance and constructiontax, education surcharge, and local education surcharge is the VAT payable before enjoying this taxpreferential policy.In accordance with the relevant provisions of value-added tax (VAT) in the Socialist Republic of Vietnam,feed and feed-related industries have been exempt from VAT since 2016. Companies established in Vietnamare required to pay VAT at a rate of 5% on income from the rental of cold storage facilities.
(2) Corporate income tax
According to the provisions of Article 28 of the Enterprise Income Tax Law of People's Republic of China(PRC), the enterprise income tax shall be levied at a reduced rate of 20% for eligible small and low-profitenterprises; The enterprise income tax will be levied at the reduced rate of 15% for high-tech enterprisesthat the state needs to give priority support. If the Company and its subsidiaries meet the above conditions,the enterprise income tax shall be levied at preferential tax rates.
According to Announcement on Taxation on Further Implementing the Preferential Income Tax Policy forSmall and Micro Enterprises, Caishui [2023] No.12 issued by the Ministry of Finance, State TaxationAdministration, the taxable income of small and micro-profit enterprises is reduced by 25% and levyingcorporate income tax at a rate of 20% will continue to be implemented until December 31, 2027.
In accordance with Article 27 of the Corporate Income Tax Law of the People’s Republic of China andArticle 86 of the Regulation on the Implementation of the Corporate Income Tax Law of the People’sRepublic of China, income derived from breeding of livestock and poultry is exempted from corporateincome tax; Income derived from marine aquaculture and inland aquaculture by enterprises is subject to a50% reduction in corporate income tax. The Company and its subsidiaries which are engaged in theaforementioned income-generating activities, those income is subject to the corporate income tax underthese preferential policies.In accordance with the provisions of the Notice on the Scope of Preliminary Processing of AgriculturalProducts Eligible for Corporate Income Tax Preferences (Trial) issued by the Ministry of Finance and theState Administration of Taxation (CaiShui [2008] No. 149) and the Supplementary Notice on the Scope ofPreliminary Processing of Agricultural Products Eligible for Corporate Income Tax Preferences (CaiShui[2011] No. 26), enterprises are exempt from corporate income tax on the preliminary processed productsthey produce that fall within the scope of agricultural product preliminary processing eligible for corporateincome tax preferences. The Company and its subsidiaries which are engaged in the aforementionedincome-generating activities, those income is subject to the corporate income tax under these preferentialpolicies.In accordance with the provisions of the Announcement on the Extension of Corporate Income Tax Policiesfor the Western Development Program issued by the Ministry of Finance, the State Taxation Administration,and the National Development and Reform Commission (Announcement No. 23 of 2020 by the Ministry ofFinance), from January 1, 2021, to December 31, 2030, enterprises engaged in encouraged industrieslocated in the western region are subject to corporate income tax at a reduced rate of 15%. Subsidiaries ofthe Group that are established in the western region as specified in the announcement and meet the relevantconditions are subject to corporate income tax at a rate of 15%.In accordance with the provisions of the Announcement on Further Improving the Policy for Pre-TaxAdditional Deduction of R&D Expenses issued by the Ministry of Finance and the State TaxationAdministration (Announcement No. 7 of 2023 by the Ministry of Finance and the State TaxationAdministration), actual R&D expenses incurred by enterprises in the course of R&D activities that are notcapitalized as intangible assets but are expensed in the current period, shall, on the basis of the actualamount deducted in accordance with regulations, be additionally deducted for tax purposes at 100% of theactual amount from January 1, 2023. For R&D expenses that are capitalized as intangible assets, startingfrom January 1, 2023, the cost of the intangible assets shall be amortized for tax purposes at 200% of thecost.In accordance with the provisions of the Notice on Corporate Income Tax Preferential Policies for HainanFree Trade Port issued by the Ministry of Finance and the State Taxation Administration (CaiShui [2020]No. 31) and the Notice on the Extension of Corporate Income Tax Preferential Policies for Hainan FreeTrade Port (CaiShui [2025] No. 3), from January 1, 2020, to December 31, 2027, enterprises engaged inencouraged industries that are registered in the Hainan Free Trade Port and operate substantially are subjectto corporate income tax at a reduced rate of 15%. Subsidiaries of the Group that are established within thescope of the aforementioned policy and meet the relevant conditions are subject to corporate income tax ata rate of 15%.In accordance with the provisions of the Announcement on the Extension of Tax Preferential Policies forMicrofinance Companies issued by the Ministry of Finance and the State Taxation Administration(Announcement No. 54 of 2023 by the Ministry of Finance and the State Taxation Administration), theGroup is permitted to deduct from corporate income tax, on a pre-tax basis, the loan loss provisionscalculated at 1% of the year-end loan balance for microfinance companies that have been approved andestablished by the provincial local financial regulatory authorities.In accordance with the provisions of the Notice on Corporate Income Tax Preferential Policies for the
Hengqin Guangdong-Macao In-depth Cooperation Zone (CaiShui [2022] No. 19), the subsidiaries of theGroup established within Hengqin Guangdong-Macao In-depth Cooperation Zone that meet the relevantconditions are subject to corporate income tax at a reduced rate of 15%.In accordance with the local tax laws of the British Virgin Islands, the Group's subsidiaries registered in thejurisdiction are exempt from corporate income tax.In accordance with the Hong Kong Tax Ordinance, the Group's subsidiaries registered in Hong Kong aresubject to profits tax at a rate of16.50%. Among them, offshore income of the Hong Kong based companycan be exempted from profits tax after declaration. For non-locally registered subsidiaries whose place ofactual operation and management is in Hong Kong, which are Hong Kong tax residents and engaged inqualified treasury activities, a preferential tax rate of half the profits tax rate for treasury center business(8.25%) is applicable for this year. In addition, subsidiaries that meet the economic substance requirementsspecified in Section 15K of the Inland Revenue Ordinance and have specified foreign-sourced income areeligible for tax exemption in the relevant year.Subsidiaries of the Group registered in Malaysia are subject to a corporate income tax rate of 24% inaccordance with the Malaysian tax law.Subsidiaries of the Group registered in Singapore are subject to a corporate income tax rate of 17% inaccordance with the Singaporean tax law.According to the local tax laws of Ecuador, enterprises enjoy a tax exemption period of 12 years from theissuance of the first invoice, and the tax rate after the tax exemption period is 25%. Subsidiaries of theGroup registered in Ecuador is still within tax exempt period as of the end of 2024.Subsidiaries of the Group registered in Indonesia are subject to a corporate income tax rate of 22% inaccordance with the Indonesian tax law.Subsidiaries of the Group registered in Egypt are subject to a corporate income tax rate of 22.5% inaccordance with the Egyptian tax law.In accordance with the local tax laws of Bangladesh, which apply a multi-tiered tax rate structure, theGroup's subsidiaries registered in Bangladesh incurred losses as of the end of this year and are therefore notrequired to pay coporate income tax.Subsidiaries of the Group registered in Kazakhstan are subject to a corporate income tax rate of 20% inaccordance with the tax laws of Kazakhstan.Subsidiaries of the Group registered in Nigeria are subject to a corporate income tax rate of 30% inaccordance with the Nigerian law.Subsidiaries of the Group registered in Vietnam are subject to a corporate income tax rate based on thefollowing policies:
a) Some regions enjoy preferential policies of exemption from corporate income tax for two years fromthe year of profit, followed by a 50% reduction in corporate income tax for the next four years.SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., LTD, VINH LONGHAILIANKE BIOTECHNOLOGY CO., LTD, BINH PHUOC HAI LONG COMPANY LIMITEDhave not yet started makring a profit. SHENG LONG BIOTECH (HAI DUONG) INTERNATIONALCO., LTD began to make a profit in 2024.b) In accordance with the Vietnamese government's preferential policies for new investments in difficultareas and specific industries, SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD’s factories indifferent regions continue to enjoy the original preferential tax rates of 10% and 15%. Rental incomefrom cold storage is subject to a tax rate of 10%, sales of raw materials are subject to a tax rate of 20%,animal protection are subject to a tax rate of 17%, and income from shrimp breeding is exempt fromcorporate income tax. Other income is subject to a tax rate of 20%.
c) In accordance with Income tax policies based on the region in Vietnam and the type of business thecompany is engaged in, sales of self-produced feed for LONG SHENG INTERNATIONAL COLTD.and HAID FEED COMPANY LIMITED is subject to a tax rate of 15%, income from breeding forHAI DAI COMPANY LIMITED and DONG NAI HAID FARM COMPANY LIMITED is subject to atax rate of 15%, income from agricultural processing for HAI DUONG HAID COMPANY LIMITEDis subject to a tax rate of 15%, and trading income is subject to a tax rate of 20%.d) In accordance with the local income tax policies in Vietnam, NAMDUONG VIETNAM AQUATICHATCHERY CO.,LTD’s income from breeding shrimp larvae is exempt from corporate income tax.e) Some regions enjoy preferential policies of exemption from corporate income tax for four years fromthe year of profit, followed by a 50% reduction in corporate income tax for the next nine years. VINHLONG HAI DAI CO.,LTD began to make a profit in 2021. THANG LONG(VINH LONG)BIOTECHCO.,LTD began to make a profit in 2022. BINH DINH HAI LONG CO.,LTD began to make a profit in2023.
(3) Other taxes
In accordance with the provisions of the Announcement on Further Supporting the Development of Smalland Micro-sized Enterprises and Individual Business Operators by the Ministry of Finance and the StateTaxation Administration (Announcement No. 12 of 2023 by the Ministry of Finance and the State TaxationAdministration), from January 1, 2023, to December 31, 2027, the following taxes and fees are reduced by50% for small-scale VAT taxpayers, small and micro-profit enterprises, and individual business operators:
Resource Tax (excluding water resources tax), Urban Maintenance and Construction Tax, Property Tax,Urban Land Use Tax, Stamp Duty (excluding securities transaction stamp duty), Cultivated LandOccupation Tax, and education surcharges (including local education surcharges).V. Notes to the Consolidated Financial Statements
1. Cash at bank and on hand
| Item | 2024.12.31 | 2023.12.31 |
| Cash on hand | 187,338.98 | 178,407.26 |
| Cash at bank | 2,900,103,350.93 | 5,128,158,706.62 |
| Other monetary funds | 575,096,160.60 | 347,859,314.27 |
| Accrued interest on deposits | 2,870,025.12 | 256,350.64 |
| Total | 3,478,256,875.63 | 5,476,452,778.79 |
| Including: Total overseas deposits | 1,541,218,925.89 | 1,515,348,609.91 |
Note: For cash with restriction as at December 31, 2024, please refer to Note V. 27. Assets with restrictedownership or use rights.
2. Held-for-trading financial assets
| Item | 2024.12.31 | 2023.12.31 |
| Financial assets measured at fair value through profit or loss | 4,662,427,829.82 | 1,286,752,498.95 |
| Including: Derivative financial assets | 357,697,371.99 | 270,014,574.45 |
| Financial products | 4,304,368,163.61 | 1,016,737,924.50 |
| Equity instrument investments | 362,294.22 | - |
| Total | 4,662,427,829.82 | 1,286,752,498.95 |
3. Notes receivable
| Type | 2024.12.31 | 2023.12.31 | ||||
| Book value | Loss allowance | Carrying amount | Book value | Loss allowance | Carrying amount | |
| Bank acceptance notes | 18,700,897.53 | - | 18,700,897.53 | 4,833,343.60 | - | 4,833,343.60 |
| Commercial acceptance notes | 1,000,000.00 | 24,800.00 | 975,200.00 | 1,000,000.00 | 21,940.62 | 978,059.38 |
| Usance letter of credit | 7,161,262.26 | - | 7,161,262.26 | 6,510,119.02 | - | 6,510,119.02 |
| Total | 26,862,159.79 | 24,800.00 | 26,837,359.79 | 12,343,462.62 | 21,940.62 | 12,321,522.00 |
(1) The Group had no pledged notes receivable at the end of the year.
(2) Outstanding endorsed or discounted notes that have not matured at the end of the year.
| Type | Amount derecognized at year end | Amount not derecognized at year end |
| Bank acceptance notes | 350,203,137.81 | - |
| Commercial acceptance notes | - | 1,000,000.00 |
| Total | 350,203,137.81 | 1,000,000.00 |
(3) As of the end of the reporting period, the Group had no notes that were coverted into accountsreceivable due to the drawer’s failure to fulfill their obligations.
(4) Classification by loss allowance method
| Type | 2024.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Loss allowance on an individual basis | - | - | - | - | - |
| Loss allowance by group | 26,862,159.79 | 100.00 | 24,800.00 | 0.09 | 26,837,359.79 |
| Including: | |||||
| Bank acceptance notes | 18,700,897.53 | 69.62 | - | - | 18,700,897.53 |
| Commercial acceptance notes | 1,000,000.00 | 3.72 | 24,800.00 | 2.48 | 975,200.00 |
| Usance letter of credit | 7,161,262.26 | 26.66 | - | - | 7,161,262.26 |
| Total | 26,862,159.79 | 100.00 | 24,800.00 | 0.09 | 26,837,359.79 |
Continued:
| Type | 2023.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Type | 2023.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Loss allowance on an individual basis | - | - | - | - | - |
| Loss allowance by group | 12,343,462.62 | 100.00 | 21,940.62 | 0.18 | 12,321,522.00 |
| Including: | |||||
| Bank acceptance notes | 4,833,343.60 | 39.16 | - | - | 4,833,343.60 |
| Commercial acceptance notes | 1,000,000.00 | 8.10 | 21,940.62 | 2.19 | 978,059.38 |
| Usance letter of credit | 6,510,119.02 | 52.74 | - | - | 6,510,119.02 |
| Total | 12,343,462.62 | 100.00 | 21,940.62 | 0.18 | 12,321,522.00 |
(5) Additions, recoveries or reversals of provision during the current period
| Loss allowance | |
| Balance as of 2024.01.01 | 21,940.62 |
| Additions | 2,859.38 |
| Recoveries or reversals | - |
| Write-offs | - |
| Balanace as of 2024.12.31 | 24,800.00 |
(6) The Group had no instances of write-offs of notes receivable during the current period.
4. Accounts receivable
(1) Disclosure by aging
| Aging | 2024.12.31 | 2023.12.31 |
| Within 1 year | 2,034,895,529.60 | 1,966,303,199.85 |
| 1 to 2 years | 238,795,711.21 | 282,115,922.02 |
| 2 to 3 years | 170,875,635.85 | 86,424,377.99 |
| 3 to 4 years | 60,366,838.94 | 58,450,212.31 |
| 4 to 5 years | 51,885,949.90 | 15,071,942.69 |
| More than 5 years | 20,430,272.62 | 18,898,758.21 |
| Subtotal | 2,577,249,938.12 | 2,427,264,413.07 |
| Less: Loss allowance | 451,377,592.69 | 370,550,754.71 |
| Total | 2,125,872,345.43 | 2,056,713,658.36 |
(2) Classified by loss allowance method
| Type | 2024.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Type | 2024.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Loss allowance on an individual basis | 405,348,850.10 | 15.73 | 323,018,727.81 | 79.69 | 82,330,122.29 |
| Loss allowance by group | 2,171,901,088.02 | 84.27 | 128,358,864.88 | 5.91 | 2,043,542,223.14 |
| Including: | |||||
| Accounts receivable due from feed related customers | 2,138,481,469.74 | 82.97 | 127,740,602.00 | 5.97 | 2,010,740,867.74 |
| Accounts receivable due from raw materials customers | 33,419,618.28 | 1.30 | 618,262.88 | 1.85 | 32,801,355.40 |
| Total | 2,577,249,938.12 | 100.00 | 451,377,592.69 | 17.51 | 2,125,872,345.43 |
Continued:
| Type | 2023.12.31 | ||||
| Book value | Loss allowance | Book value | |||
| Amount | Percentage (%) | Amount | Expected credit loss rate (%) | ||
| Loss allowance on an individual basis | 306,545,670.75 | 12.63 | 237,383,558.85 | 77.44 | 69,162,111.90 |
| Loss allowance by group | 2,120,718,742.32 | 87.37 | 133,167,195.86 | 6.28 | 1,987,551,546.46 |
| Including: | |||||
| Accounts receivable due from feed related customers | 2,112,580,209.85 | 87.04 | 132,996,949.62 | 6.30 | 1,979,583,260.23 |
| Accounts receivable due from raw materials customers | 8,138,532.47 | 0.33 | 170,246.24 | 2.09 | 7,968,286.23 |
| Total | 2,427,264,413.07 | 100.00 | 370,550,754.71 | 15.27 | 2,056,713,658.36 |
Accounts receivable assessed for impairment individually
| Name | 2024.12.31 | |||
| Book value | Loss allowance | Expected credit loss rate (%) | Reasons for accrual | |
| Customer 1 | 42,627,135.16 | 27,309,359.29 | 64.07 | Expected to be partially unrecoverable |
| Customer 2 | 23,254,768.61 | 23,254,768.61 | 100.00 | Estimated to be unrecoverable |
| Name | 2024.12.31 | |||
| Book value | Loss allowance | Expected credit loss rate (%) | Reasons for accrual | |
| Remaining customers whose accounts receivable are assessed for loss allowance on an individual basis (Note) | 339,466,946.33 | 272,454,599.91 | 80.26 | Expected to be partially unrecoverable |
| Total | 405,348,850.10 | 323,018,727.81 | 79.69 | / |
Continued:
| Name | 2023.12.31 | |||
| Book value | Loss allowance | Expected credit loss rate (%) | Reasons for accrual | |
| Customer 3 | 47,380,367.74 | 23,690,183.87 | 50.00 | Expected to be partially unrecoverable |
| Customer 2 | 23,747,505.01 | 20,035,515.81 | 84.37 | Expected to be partially unrecoverable |
| Remaining customers whose accounts receivable are assessed for loss allowance on an individual basis (Note) | 235,417,798.00 | 193,657,859.17 | 82.26 | Expected to be partially unrecoverable |
| Total | 306,545,670.75 | 237,383,558.85 | 77.44 | / |
Note: The expected credit loss rate of the remaining customers whose accounts receivable are assessed forloss allowance on an individual basis is the average proportion of the total individual loss allowance forthese customers to their accounts receivable carry amount.Accounts receivable assessed for impairment by groupGroup: Accounts receivable due from feed related customers
| 2024.12.31 | 2023.12.31 | |||||
| Book value | Loss allowance | Expected credit loss rate (%) | Book value | Loss allowance | Expected credit loss rate (%) | |
| Within 1 year | 1,976,377,631.01 | 54,430,120.58 | 2.75 | 1,899,445,833.59 | 48,952,065.06 | 2.58 |
| 1 to 2 years | 106,445,053.98 | 30,209,303.90 | 28.38 | 168,603,778.10 | 49,465,153.46 | 29.34 |
| 2 to 3 years | 34,060,641.30 | 22,237,266.57 | 65.29 | 24,902,716.41 | 15,801,892.21 | 63.45 |
| 3 to 4 years | 6,303,814.91 | 5,569,582.41 | 88.35 | 6,580,410.20 | 5,730,367.34 | 87.08 |
| 4 to 5 years | 4,643,152.17 | 4,643,152.17 | 100.00 | 7,829,682.12 | 7,829,682.12 | 100.00 |
| More than 5 years | 10,651,176.37 | 10,651,176.37 | 100.00 | 5,217,789.43 | 5,217,789.43 | 100.00 |
| Total | 2,138,481,469.74 | 127,740,602.00 | 5.97 | 2,112,580,209.85 | 132,996,949.62 | 6.30 |
Group: Accounts receivable due from raw materials customers
| 2024.12.31 | 2023.12.31 | |||||
| Book value | Loss allowance | Expected credit loss rate (%) | Book value | Loss allowance | Expected credit loss rate (%) | |
| Within 1 year | 33,419,618.28 | 618,262.88 | 1.85 | 8,138,532.47 | 170,246.24 | 2.09 |
| Total | 33,419,618.28 | 618,262.88 | 1.85 | 8,138,532.47 | 170,246.24 | 2.09 |
(3) Additions, recoveries or reversals of provision during the current period
| Loss allowance | |
| Balance as of 2024.01.01 | 370,550,754.71 |
| Additions | 206,151,834.56 |
| Recoveries or reversals | 32,195,350.41 |
| Write-offs | 92,480,259.42 |
| Transfer out resulting from changes in the scope of consolidation | 35,173.69 |
| Transfer out resulting from other movements | 614,213.06 |
| Balance as of 2024.12.31 | 451,377,592.69 |
There were no material loss allowances recovered or reversed in current period.
(4) Accounts receivable written off during the current period
| Item | Amount |
| Accounts receivable written off | 92,480,259.42 |
There were no significant accounts receivable write-offs during the current period.
(5) Top five closing balances of accounts receivable and contract assets by debtorThe aggregate amount of the top five accounts receivable and contract assets by debtor at the end of theperiod was RMB223,186,286.76, representing 8.66% of the combined closing balances of accountsreceivable and contract assets. The total closing balance of provision for loss allowance related to these topfive debts was RMB33,184,866.97.
5. Prepayments
(1) Disclosure by aging
| Aging | 2024.12.31 | 2023.12.31 | ||
| Amount | Percentage % | Amount | Percentage % | |
| Within 1 year | 626,721,115.36 | 99.75 | 740,685,052.88 | 99.67 |
| 1 to 2 years | 956,159.55 | 0.15 | 2,193,766.32 | 0.30 |
| 2 to 3 years | 349,983.03 | 0.06 | 224,104.43 | 0.03 |
| More than 3 years | 266,185.60 | 0.04 | 52,002.52 | 0.00 |
| Total | 628,293,443.54 | 100.00 | 743,154,926.15 | 100.00 |
(2) There was no significant prepayment aged more than 1 year.
(3) Top five closing balances of prepayments by debtor
The aggregate amount of the top five prepayments by debtor at the end of the period wasRMB278,884,163.12, representing 44.39% of the total closing balance of prepayments.
6. Other receivables
| Item | 2024.12.31 | 2023.12.31 |
| Interest receivables | - | - |
| Dividend receivables | - | - |
| Other receivables | 877,870,681.54 | 957,972,560.29 |
| Total | 877,870,681.54 | 957,972,560.29 |
(1) Other receivables by aging
| Aging | 2024.12.31 | 2023.12.31 |
| Within 1 year | 866,674,522.37 | 939,309,075.66 |
| 1 to 2 years | 32,440,019.58 | 22,822,637.83 |
| 2 to 3 years | 12,671,739.14 | 9,671,533.81 |
| 3 to 4 years | 8,095,308.13 | 3,933,348.89 |
| 4 to 5 years | 2,575,204.06 | 1,596,269.24 |
| 5 years above | 13,150,205.46 | 11,601,172.40 |
| Subtotal | 935,606,998.74 | 988,934,037.83 |
| Less: Loss allowance | 57,736,317.20 | 30,961,477.54 |
| Total | 877,870,681.54 | 957,972,560.29 |
(2) Other receivables by nature
| Aging | 2024.12.31 | 2023.12.31 |
| Futures margin | 597,681,330.15 | 579,678,347.70 |
| Security deposit | 165,747,051.27 | 302,885,410.22 |
| Receivales due from external parties | 97,166,632.53 | 48,282,506.34 |
| Advance social insurance and housing fund | 17,884,054.44 | 15,521,594.18 |
| Petty cash | 7,533,960.89 | 8,641,549.33 |
| Insurance compensation | 5,151,584.90 | 1,232,895.58 |
| Others | 44,442,384.56 | 32,691,734.48 |
| Subtotal | 935,606,998.74 | 988,934,037.83 |
| Less: Loss allowance | 57,736,317.20 | 30,961,477.54 |
| Total | 877,870,681.54 | 957,972,560.29 |
(3) Additions, recoveries or reversals of provision during the current period
| Loss allowance | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Lifetime expected credit losses (no credit impairment occurred) | Lifetime expected credit losses (credit impairment has occurred) | ||
| Balance as of January 1, 2024 | 10,040,011.02 | - | 20,921,466.52 | 30,961,477.54 |
| Balance as of January 1, 2024 | ||||
| Movement during the current period: | ||||
| - Transfer to the second stage | - | - | - | - |
| - Transfer to the third stage | -3,644,504.60 | - | 3,644,504.60 | - |
| - Reverse to the second stage | - | - | - | - |
| - Reverse to the first stage | - | - | - | - |
| Additions | 4,678,225.28 | - | 31,549,008.96 | 36,227,234.24 |
| Reversals | - | - | 1,892,354.50 | 1,892,354.50 |
| Write-offs | - | - | 5,110,578.08 | 5,110,578.08 |
| Transfer out resulting from changes in the scope of consolidation | 910,586.31 | - | 1,510,000.00 | 2,420,586.31 |
| Transfer out resulting from other movements | 25,168.49 | - | 3,707.20 | 28,875.69 |
| Balance as of December 31, 2024 | 10,137,976.90 | - | 47,598,340.30 | 57,736,317.20 |
There were no significant recoveries or reversals of loss allowance during the current period.
(4) Other receivables written off during the current period
| Item | Amount written off |
| Other receivables written off | 5,110,578.08 |
There are no significant other receivables written off in the current period.
(5) Top five closing balances of other receivables by debtor
| Debtor | Nature | Other receivables as of December 31, 2024 | Aging | Proportion of the total closing balance of other receivables (%) | Loss allowance as of December 31, 2024 |
| Company A | Future margins | 101,847,407.72 | Within 1 year | 10.89 | - |
| Company B | Security deposit | 78,043,756.12 | Within 1 year | 8.34 | 780,437.56 |
| Company C | Future margins | 52,852,441.60 | Within 1 year | 5.65 | - |
| Company D | Future margins | 50,137,564.40 | Within 1 year | 5.36 | - |
| Debtor | Nature | Other receivables as of December 31, 2024 | Aging | Proportion of the total closing balance of other receivables (%) | Loss allowance as of December 31, 2024 |
| Customer E | Future margins | 47,885,353.37 | Within 1 year | 5.12 | - |
| Total | 330,766,523.21 | 35.36 | 780,437.56 |
7. Inventories
(1) Inventory by type
| Type | 2024.12.31 | 2023.12.31 | ||||
| Book value | Loss allowance of inventories/ costs to fulfil a contract | Carrying amount | Book value | Loss allowance of inventories/ costs to fulfil a contract | Carrying amount | |
| Raw materials | 6,327,477,610.58 | 882,196.02 | 6,326,595,414.56 | 5,233,403,630.52 | 191,030.90 | 5,233,212,599.62 |
| Work in progress | 11,205,014.40 | - | 11,205,014.40 | 12,740,693.97 | - | 12,740,693.97 |
| Finished goods | 1,517,119,858.82 | 13,327,386.94 | 1,503,792,471.88 | 1,915,625,832.20 | 14,966,824.72 | 1,900,659,007.48 |
| Consumptive biological assets | 3,462,860,778.00 | 25,080,952.78 | 3,437,779,825.22 | 2,836,463,342.99 | 51,759,769.58 | 2,784,703,573.41 |
| Costs to fulfil a contract | 11,011,377.24 | - | 11,011,377.24 | 4,547,868.65 | - | 4,547,868.65 |
| Total | 11,329,674,639.04 | 39,290,535.74 | 11,290,384,103.30 | 10,002,781,368.33 | 66,917,625.20 | 9,935,863,743.13 |
(2) Loss allowance of inventories/costs to fulfil a contract
| Item | 2024.01.01 | Additions for the current period | Decreases for the current period | 2024.12.31 | ||
| Provision | Others | Reversed or written-off | Others | |||
| Raw materials | 191,030.90 | 882,196.02 | - | 191,030.90 | - | 882,196.02 |
| Finished goods | 14,966,824.72 | 20,941,607.89 | - | 22,581,045.67 | - | 13,327,386.94 |
| Consumptive biological assets | 51,759,769.58 | 29,071,286.70 | - | 55,750,103.50 | - | 25,080,952.78 |
| Item | 2024.01.01 | Additions for the current period | Decreases for the current period | 2024.12.31 | ||
| Provision | Others | Reversed or written-off | Others | |||
| Total | 66,917,625.20 | 50,895,090.61 | - | 78,522,180.07 | - | 39,290,535.74 |
Loss allowance of inventories/costs to fulfil a contract (continued)
| Item | Basis for determining the net realizable value/remaining consideration and the costs that are expected to be incurred | Reasons for reversals or write-off of inventory loss allowances/provisions for costs to fulfil a contract |
| Raw materials | The estimated selling price of the related finished goods less the estimated costs of completion and the estimated selling expenses and relevant taxes | Utilized in the production of goods and subsequently sold |
| Finished goods | The estimated selling price of related finished products less the estimated selling expenses and relevant taxes | Goods have been sold |
| Consumptive biological assets | The estimated selling price of related assets less the estimated cost to be incurred until they reaching the saleable condition, the estimated selling expenses and relevant taxes. | Raised to a saleable condition and subsequently sold |
8. Assets held-for-sale
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Loss allowance | Carrying amount | Book value | Loss allowance | Carrying amount | |
| (1) Non-current assets held-for-sale | 641,999.09 | - | 641,999.09 | 596,427.47 | - | 596,427.47 |
| Including: Fixed assets | 641,999.09 | - | 641,999.09 | 596,427.47 | - | 596,427.47 |
| Total | 641,999.09 | - | 641,999.09 | 596,427.47 | - | 596,427.47 |
At the end of the period, assets held-for-sale as follow:
| Item | Book value | Fair value | Estimated selling expenses | Schedule |
| Fixed assets | 641,999.09 | 1,598,532.00 | 689,623.06 | The transfer of asset is expected to be completed within 2025 |
Note: The management of the Group has decided to sell a designated office building to an external partyand has entered into a sales contract with them. This office building was presented as assets held-for-sale.
9. Non-current assets due within one year
| Item | 2024.12.31 | 2023.12.31 |
| Long-term receivables due within 1 year | 3,841,618.60 | 1,471,921.24 |
| Debt investments due within 1 year | - | 7,500,000.00 |
| Total | 3,841,618.60 | 8,971,921.24 |
10. Other current assets
| Item | 2024.12.31 | 2023.12.31 |
| Rental expenses | 8,323,972.41 | 7,434,630.90 |
| Insurance expenses | 20,874,879.55 | 20,054,852.55 |
| Miscellaneous prepaid expenses | 38,745,324.35 | 33,982,814.38 |
| Input VAT to be deducted and verified | 147,269,704.85 | 121,686,137.98 |
| Taxes and charges paid in advance | 81,067,645.58 | 66,553,291.91 |
| Loans and advances to customers | - | 9,383,151.54 |
| Factoring receivables | 71,323,637.69 | 142,245,827.06 |
| Others | 27,084,704.20 | 25,384,556.75 |
| Total | 394,689,868.63 | 426,725,263.07 |
(1) Loans and advances to customers
① Classification by method of guarantee
| Item | 2024.12.31 | 2023.12.31 |
| Secured loans | 1,527,732.60 | 12,719,200.00 |
| Secured / mortgage loans | - | 2,000,000.00 |
| Add: Interest receivables | 14,386.86 | 120,709.74 |
| Subtotal | 1,542,119.46 | 14,839,909.74 |
| Less: Provision for impairment | 1,542,119.46 | 5,456,758.20 |
| Total | - | 9,383,151.54 |
② Classification by overdue status
| Item | 2024.12.31 | 2023.12.31 |
| Current | - | 7,306,960.81 |
| Overdue | 1,527,732.60 | 7,412,239.19 |
| Add: Interest receivables | 14,386.86 | 120,709.74 |
| Subtotal | 1,542,119.46 | 14,839,909.74 |
| Less: Provision for impairment | 1,542,119.46 | 5,456,758.20 |
| Total | - | 9,383,151.54 |
(2) Factoring receivables by overdue status
| Item | 2024.12.31 | 2023.12.31 |
| Current | 69,282,726.61 | 132,820,379.09 |
| Overdue | 30,491,461.03 | 28,682,202.21 |
| Add: Interest receivables | 467,559.80 | 631,710.76 |
| Subtotal | 100,241,747.44 | 162,134,292.06 |
| Less: Provision for impairment | 28,918,109.75 | 19,888,465.00 |
| Total | 71,323,637.69 | 142,245,827.06 |
11. Debt investments
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Loss allowance | Carrying amount | Book value | Loss allowance | Carrying amount | |
| Entrust loans | - | - | - | 7,500,000.00 | - | 7,500,000.00 |
| Subtotal | - | - | - | 7,500,000.00 | - | 7,500,000.00 |
| Less: debt investments due within one year | - | - | - | 7,500,000.00 | - | 7,500,000.00 |
| Total | - | - | - | - | - | - |
(1) Additions, recoveries or reversals of loss allowance during the current period
| Loss allowance | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Lifetime expected credit losses (no credit impairment occurred) | Lifetime expected credit losses (credit impairment has occurred) | ||
| Balance as of January 1, 2024 | - | - | - | - |
| Movement during the current period | ||||
| - Transfer to the second stage | - | - | - | - |
| - Transfer to the third stage | - | - | - | - |
| - Reverse to the second stage | - | - | - | - |
| - Reverse to the first stage | - | - | - | - |
| Additions | - | - | - | - |
| Reversals | - | - | - | - |
| Charge-offs | - | - | - | - |
| Write-offs | - | - | - | - |
| Other movements | - | - | - | - |
| Balance as at December 31, 2024 | - | - | - | - |
(2) No debt investments were written off during the current period.
12. Loans and advances to customers
(1) Loans and advances to customers by method of guarantee
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Secured loans | 1,527,732.60 | 1,527,732.60 | - | 12,719,200.00 | 5,338,748.48 | 7,380,451.52 |
| Unsecured loans | - | - | - | 700,000.00 | 10,500.00 | 689,500.00 |
| Secured / mortgage loans | - | - | - | 2,000,000.00 | 30,000.00 | 1,970,000.00 |
| Add: Interest receivables | 14,386.86 | 14,386.86 | - | 120,709.74 | 88,009.72 | 32,700.02 |
| Subtotal | 1,542,119.46 | 1,542,119.46 | - | 15,539,909.74 | 5,467,258.20 | 10,072,651.54 |
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Less: Due within one year | 1,542,119.46 | 1,542,119.46 | - | 14,839,909.74 | 5,456,758.20 | 9,383,151.54 |
| Total | - | - | - | 700,000.00 | 10,500.00 | 689,500.00 |
(2) Loans and advances to customers by overdue status:
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Current | - | - | - | 8,006,960.81 | 120,104.40 | 7,886,856.41 |
| Overdue | 1,527,732.60 | 1,527,732.60 | - | 7,412,239.19 | 5,259,144.08 | 2,153,095.11 |
| Add: Interest receivables | 14,386.86 | 14,386.86 | - | 120,709.74 | 88,009.72 | 32,700.02 |
| Subtotal | 1,542,119.46 | 1,542,119.46 | - | 15,539,909.74 | 5,467,258.20 | 10,072,651.54 |
| Less: Due within one year | 1,542,119.46 | 1,542,119.46 | - | 14,839,909.74 | 5,456,758.20 | 9,383,151.54 |
| Total | - | - | - | 700,000.00 | 10,500.00 | 689,500.00 |
(3) Provision for impairment of loans
| Provision for impairment of loans | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Lifetime expected credit losses (no credit impairment occurred) | Lifetime expected credit losses (credit impairment has occurred) | ||
| Balance as of January 1, 2024 | 120,329.71 | 2,549.88 | 5,344,378.61 | 5,467,258.20 |
| Movement during the current period: | ||||
| - Transfer to the second stage | - | - | - | - |
| - Transfer to the third stage | - | -2,285.09 | 2,285.09 | - |
| - Reverse to the second stage | - | - | - | - |
| - Revese to the first stage | - | - | - | - |
| Additions | -120,329.71 | -264.79 | 8,440.30 | -112,154.20 |
| Reversals | - | - | - | - |
| Charge-offs | - | - | - | - |
| Write-offs | - | - | 3,812,984.54 | 3,812,984.54 |
| Due within one year and reclassified into other current assets | - | - | 1,542,119.46 | 1,542,119.46 |
| Balance as of December 31, 2024 | - | - | - | - |
13. Long-term receivables
(1) Long-term receivables by nature
| Item | 2024.12.31 | 2023.12.31 | Discounted rate | ||||
| Book value | Loss allowance | Carrying amount | Book value | Loss allowance | Carrying amount | ||
| Security deposits | 154,633,423.91 | - | 154,633,423.91 | 158,868,425.18 | - | 158,868,425.18 | |
| Receivables due from transfer and contracting in installments | 23,853,433.31 | - | 23,853,433.31 | 20,232,025.89 | - | 20,232,025.89 | 3.75%-4% |
| Others | 528,000.00 | - | 528,000.00 | 1,056,000.00 | - | 1,056,000.00 | 5.24% |
| Less: Unrealized financing income | 6,042,524.33 | - | 6,042,524.33 | 1,679,006.27 | - | 1,679,006.27 | |
| Subtotal | 172,972,332.89 | - | 172,972,332.89 | 178,477,444.80 | - | 178,477,444.80 | |
| Less: Long-term receivables due within one year | 3,841,618.60 | - | 3,841,618.60 | 1,471,921.24 | - | 1,471,921.24 | |
| Total | 169,130,714.29 | - | 169,130,714.29 | 177,005,523.56 | - | 177,005,523.56 | |
Note: The security deposits were primarily lease deposits and electricity deposits.
(2) The Group had no overdue long-term receivables during the current period.
(3) No long-term receivables were derecognized during the current period.
(4) In the current period, the Group did not transfer any long-term receivables and continue to be involved with the related assets or liabilities.
14. Long-term equity investments
| Investee | Balance as of 2023.12.31 (carrying amount) | Balance of provision for impairment as of 2023.12.31 | Movements during the current period | Balance as of 12/31/2024 | Balance of provision for impairment as of 2024.12.31 | |||||||
| Increase in capital | Decrease in capital | Investment income recognized under equity method | Other comprehensive income | Other equity movements | Declared distribution of cash dividends or profits | Provision for impairment | Others | |||||
| Associates： | ||||||||||||
| Bangpu Seed Technology Co., Ltd. | 10,160,776.56 | - | - | - | -296,743.27 | - | - | - | - | - | 9,864,033.29 | - |
| Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | 8,374,331.74 | - | - | - | 3,301,883.07 | - | - | - | - | - | 11,676,214.81 | - |
| Investee | Balance as of 2023.12.31 (carrying amount) | Balance of provision for impairment as of 2023.12.31 | Movements during the current period | Balance as of 12/31/2024 | Balance of provision for impairment as of 2024.12.31 | |||||||
| Increase in capital | Decrease in capital | Investment income recognized under equity method | Other comprehensive income | Other equity movements | Declared distribution of cash dividends or profits | Provision for impairment | Others | |||||
| HAID CHERRY VALLEY VIET NAM COMPANY LIMITED (HOLDING) | 68,173,262.53 | - | - | - | 30,354,885.65 | -2,101,524.67 | - | - | - | - | 96,426,623.51 | - |
| Wujiaqu Taikun Plant Protein Co., Ltd. | 55,933,187.09 | - | - | - | 4,079,999.25 | - | - | -10,376,247.87 | - | - | 49,636,938.47 | - |
| Alar Ruiliheng Biological Protein Co., Ltd. | 50,318,558.38 | - | - | - | 2,593,226.97 | - | - | -10,819,871.67 | - | - | 42,091,913.68 | - |
| Hutubi Tiankang Plant Protein Co., Ltd. | 21,348,805.96 | - | 42,350,000.00 | - | 516,042.72 | 220,692.56 | - | - | - | - | 64,435,541.24 | - |
| Beijing Haizhibao Pet Co., Ltd. | - | - | 4,900,000.00 | - | - | - | - | - | - | - | 4,900,000.00 | - |
| Investee | Balance as of 2023.12.31 (carrying amount) | Balance of provision for impairment as of 2023.12.31 | Movements during the current period | Balance as of 12/31/2024 | Balance of provision for impairment as of 2024.12.31 | |||||||
| Increase in capital | Decrease in capital | Investment income recognized under equity method | Other comprehensive income | Other equity movements | Declared distribution of cash dividends or profits | Provision for impairment | Others | |||||
| Qingdao Nongken Beidahuang Trade Development Co., Ltd. | - | 10,910,542.10 | - | - | - | - | - | - | - | - | - | 10,910,542.10 |
| Sichuan Zhihui Fishing Machine Technology Co., Ltd. | 2,364,602.74 | - | - | - | -1,177,974.88 | - | - | - | - | - | 1,186,627.86 | - |
| Total | 216,673,525.00 | 10,910,542.10 | 47,250,000.00 | - | 39,371,319.51 | -1,880,832.11 | - | -21,196,119.54 | - | - | 280,217,892.86 | 10,910,542.10 |
15. Other non-current financial assets
| Category | 2024.12.31 | 2023.12.31 |
| Equity instrument investments | 238,380,604.68 | 248,683,611.24 |
| Total | 238,380,604.68 | 248,683,611.24 |
16. Investment properties
(1) Investment properties
| Item | Buildings | Land use rights | Total |
| I. Cost | |||
| 1. As of 2023.12.31 | 35,027,168.92 | 3,267,083.45 | 38,294,252.37 |
| 2. Additions during the period | 27,186,531.93 | 42,108,205.17 | 69,294,737.10 |
| (1) Purchases | 215,896.26 | 42,150,757.52 | 42,366,653.78 |
| (2) Translation differences arising from translation of foreign currency financial statements | - | -42,552.35 | -42,552.35 |
| (3) Transfer from fixed assets | 26,970,635.67 | - | 26,970,635.67 |
| 3. Decreases during the period | - | - | - |
| (1) Disposals | - | - | - |
| (2) Others | - | - | - |
| 4. As of 2024.12.31 | 62,213,700.85 | 45,375,288.62 | 107,588,989.47 |
| II. Accumulated depreciation or amortization | |||
| 1. As of 2023.12.31 | 8,470,930.93 | - | 8,470,930.93 |
| 2. Charges for the period | 6,493,267.55 | - | 6,493,267.55 |
| (1) Depreciation or amortization | 1,391,589.21 | - | 1,391,589.21 |
| (2) Transfer from fixed assets | 5,101,678.34 | - | 5,101,678.34 |
| 3. Decreases during the period | - | - | - |
| (1) Disposals | - | - | - |
| (2) Others | - | - | - |
| 4. As of 2024.12.31 | 14,964,198.48 | - | 14,964,198.48 |
| III. Provision for impairment | |||
| 1. As of 2023.12.31 | - | - | - |
| 2. Additions during the period | - | - | - |
| (1) Charges for the period | - | - | - |
| (2) Others | - | - | - |
| 3. Decrease during the period | - | - | - |
| (1) Disposals | - | - | - |
| (2) Others out | - | - | - |
| 4. As of 2024.12.31 | - | - | - |
| IV. Carrying amount | |||
| 1. As of 2024.12.31 | 47,249,502.37 | 45,375,288.62 | 92,624,790.99 |
| 2. As of 2023.12.31 | 26,556,237.99 | 3,267,083.45 | 29,823,321.44 |
(1) Investment property without ownership certificates
| Item | Carrying amount | Reason why certificates of ownership are pending |
| Buildings | 14,149,433.66 | In progress |
17. Fixed assets
| Item | 2024.12.31 | 2023.12.31 |
| Fixed assets | 16,926,972,419.08 | 16,393,897,552.33 |
| Fixed assets to be disposed of | 3,715,307.91 | 19,617.95 |
| Total | 16,930,687,726.99 | 16,393,917,170.28 |
(1) Fixed assets
① Fixed assets
| Item | Plant and buildings | Machinery and equipment | Motor vehicles | Electronic equipment | Other equipment | Total |
| I.Cost: | ||||||
| 1. As of 2023.12.31 | 11,471,036,772.72 | 10,108,839,343.83 | 423,372,978.70 | 610,475,453.69 | 643,749,775.69 | 23,257,474,324.63 |
| 2.Additions during the period | 1,271,585,201.43 | 838,524,303.85 | 48,340,653.92 | 84,577,873.60 | 133,941,868.96 | 2,376,969,901.76 |
| (1) Purchases | 72,290,458.21 | 113,432,601.61 | 47,964,674.50 | 60,475,193.66 | 94,664,034.79 | 388,826,962.77 |
| (2) Transfers from construction in progress | 1,236,371,029.05 | 756,637,834.16 | 2,293,782.53 | 24,896,638.96 | 40,208,544.40 | 2,060,407,829.10 |
| (3) Effect of translation of foreign currency financial statements | -37,076,285.83 | -31,546,131.92 | -1,917,803.11 | -793,959.02 | -930,710.23 | -72,264,890.11 |
| 3. Decreases during the period | 170,926,062.22 | 221,157,843.24 | 22,890,287.65 | 22,158,678.72 | 29,366,866.48 | 466,499,738.31 |
| (1) Disposals or write-offs | 114,708,143.63 | 179,385,991.98 | 20,511,283.65 | 19,334,513.36 | 26,091,619.97 | 360,031,552.59 |
| (2) Reduction in the scope of consolidation | 29,247,282.92 | 41,771,851.26 | 2,379,004.00 | 2,824,165.36 | 3,275,246.51 | 79,497,550.05 |
| (3) Others | 26,970,635.67 | - | - | - | - | 26,970,635.67 |
| 4. As of 2024.12.31 | 12,571,695,911.9 | 10,726,205,804.4 | 448,823,344.97 | 672,894,648.57 | 748,324,778.17 | 25,167,944,488.0 |
| Item | Plant and buildings | Machinery and equipment | Motor vehicles | Electronic equipment | Other equipment | Total |
| 3 | 4 | 8 | ||||
| II. Accumulated depreciation: | ||||||
| 1. As of 2023.12.31 | 2,007,306,765.05 | 3,863,882,514.89 | 250,870,091.40 | 428,276,398.38 | 312,414,083.25 | 6,862,749,852.97 |
| 2. Charges for the period | 443,925,477.47 | 871,428,156.61 | 55,188,888.30 | 85,343,128.59 | 105,506,708.48 | 1,561,392,359.45 |
| (1) Provision | 446,899,521.23 | 877,935,678.00 | 56,211,461.20 | 85,690,373.76 | 105,971,572.42 | 1,572,708,606.61 |
| (2) Effect of translation of foreign currency financial statements | -2,974,043.76 | -6,507,521.39 | -1,022,572.90 | -347,245.17 | -464,863.94 | -11,316,247.16 |
| 3. Decreases during the period | 66,380,075.53 | 124,915,481.66 | 20,025,057.97 | 19,735,827.84 | 19,240,616.29 | 250,297,059.29 |
| (1) Disposals or write-offs | 56,530,584.94 | 110,062,369.94 | 18,025,677.85 | 17,568,753.40 | 17,668,620.31 | 219,856,006.44 |
| (2) Reduction in the scope of consolidation | 4,747,812.25 | 14,853,111.72 | 1,999,380.12 | 2,167,074.44 | 1,571,995.98 | 25,339,374.51 |
| (3) Others | 5,101,678.34 | - | - | - | - | 5,101,678.34 |
| 4. As of 2024.12.31 | 2,384,852,166.99 | 4,610,395,189.84 | 286,033,921.73 | 493,883,699.13 | 398,680,175.44 | 8,173,845,153.13 |
| III. Provision for impairment: | ||||||
| 1. As of 2023.12.31 | 766,922.86 | 8,696.00 | 280.00 | 14,360.18 | 36,660.29 | 826,919.33 |
| 2. Charges for the peirod | 47,778,132.68 | 19,225,963.42 | 67,047.85 | 243,456.64 | 975,147.73 | 68,289,748.32 |
| (1) Provision | 47,778,132.68 | 19,225,963.42 | 67,047.85 | 243,456.64 | 975,147.73 | 68,289,748.32 |
| (2) Others | - | - | - | - | - | - |
| 3. Decrease during the period | - | 1,978,375.00 | 280.00 | - | 11,096.78 | 1,989,751.78 |
| (1) Disposals or write-offs | - | 1,978,375.00 | 280.00 | - | 11,096.78 | 1,989,751.78 |
| (2) Others | - | - | - | - | - | - |
| 4. As of 2024.12.31 | 48,545,055.54 | 17,256,284.42 | 67,047.85 | 257,816.82 | 1,000,711.24 | 67,126,915.87 |
| IV. Carrying amount: | ||||||
| 1. As of 2024.12.31 | 10,138,298,689.40 | 6,098,554,330.18 | 162,722,375.39 | 178,753,132.62 | 348,643,891.49 | 16,926,972,419.08 |
| 2. As of 2023.12.31 | 9,462,963,084.81 | 6,244,948,132.94 | 172,502,607.30 | 182,184,695.13 | 331,299,032.15 | 16,393,897,552.33 |
② Impairment test of fixed assets
The recoverable amount is determined by the net amount of fair value less disposal expenses.
| Item | Carrying amount | Recoverable amount | Impairment amount | The determination of fair value and disposal expenses | Key parameters | The basis for determining key parameters |
| Fixed assets with impairment indicators | 73,538,188.81 | 5,248,440.49 | 68,289,748.32 | Refer to the recent disposal recovery ratio of similar assets | Fair value and disposal rate | Based on the asset status, refer to the recoverable ratio of similar assets disposed by the Company during the year |
③ Fixed assets temporarily idle
| Item | Cost | Accumulated depreciation | Provision for impairment | Carrying amount | Notes |
| Plant and buildings | 87,240,433.64 | 17,356,010.21 | 37,932,611.66 | 31,951,811.77 | |
| Machinery and equipment | 78,760,137.80 | 52,446,761.29 | 15,295,757.46 | 11,017,619.05 | |
| Motor vehicles | 260,479.78 | 213,071.76 | 26,585.37 | 20,822.65 | |
| Electronic equipment | 1,158,362.27 | 615,606.08 | 235,963.58 | 306,792.61 | |
| Other equipment | 3,233,520.23 | 2,072,293.87 | 930,085.44 | 231,140.92 | |
| Total | 170,652,933.72 | 72,703,743.21 | 54,421,003.51 | 43,528,187.00 |
④ Fixed assets leased under operating leases
| Item | Carrying amount |
| Machinery and equipment | 10,667,827.41 |
| Motor vehicles | 19,200.06 |
| Electronic equipment | 10,702.35 |
| Other equipment | 18,667.06 |
| Total | 10,716,396.88 |
⑤ Fixed assets without ownership certificates
| Item | Carrying amount | Reason why certificates of ownership are pending |
| Plant and buildings | 844,810,876.38 | In progress |
⑥ In the current period, the Group had no instances of offsetting the book value of fixed assets with
government grants.
(2) Fixed assets to be disposed of
| Item | 2024.12.31 | 2023.12.31 | Reason for disposal |
| Machinery and equipment | 3,703,935.78 | 19,617.95 | No longer satisifies the requirements for production and business activities |
| Motor vehicles | 7,170.00 | - | No longer satisifies the requirements for production and business activities |
| Electronic equipment | 1,868.00 | - | No longer satisifies the requirements for production and business activities |
| Other equipment | 2,334.13 | - | No longer satisifies the requirements for production and business activities |
| Total | 3,715,307.91 | 19,617.95 | / |
18. Construction in progress
| Item | 2024.12.31 | 2023.12.31 |
| Construction in progress | 426,719,987.46 | 687,708,201.87 |
| Construction materials | - | - |
| Total | 426,719,987.46 | 687,708,201.87 |
(1) Details of construction in progress
| Project | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Supporting construction for animal protection projects | 2,852,280.20 | - | 2,852,280.20 | 46,491,365.97 | - | 46,491,365.97 |
| Supporting construction for feed projects | 268,120,987.03 | 104,720.00 | 268,016,267.03 | 368,677,361.38 | - | 368,677,361.38 |
| Supporting construction for breeding projects | 80,782,567.10 | - | 80,782,567.10 | 247,584,588.38 | - | 247,584,588.38 |
| Project | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Supporting construction for butcher projects | 7,686,836.48 | - | 7,686,836.48 | 1,026,265.94 | - | 1,026,265.94 |
| Supporting construction for other projects | 67,382,036.65 | - | 67,382,036.65 | 23,928,620.20 | - | 23,928,620.20 |
| Total | 426,824,707.46 | 104,720.00 | 426,719,987.46 | 687,708,201.87 | - | 687,708,201.87 |
(2) Movements of major construction in progress
| Project | 2023.12.31 | Additions | Transfers to fixed assets | Transfers to intangible assets | Transfers to other long-term assets | Other reductions | Accumulated capitalized interest | Including: interest capitalized in 2024 | Interest rate for capitalization in 2024 (%) | 2024.12.31 | Sources of funding |
| Supporting construction for animal protection projects | 45,845,838.58 | 12,483,642.14 | 58,053,982.91 | - | 256,629.89 | - | 2,227,020.47 | - | - | 18,867.92 | Loans from financial institutions, self-raised fund |
| Supporting construction for feed projects | 282,153,581.31 | 809,084,978.85 | 914,628,244.14 | 112,299.07 | - | - | - | - | - | 176,498,016.95 | Fundraising, self-raised fund |
| Supporting construction for breeding projects | 197,797,499.24 | 310,259,523.12 | 460,290,439.96 | - | - | 20,546,746.31 | - | - | - | 27,219,836.09 | Self-raised fund |
| Supporting construction for other projects | 15,551,721.49 | 109,355,296.17 | 40,411,196.57 | 31,014,349.63 | - | - | - | - | - | 53,481,471.46 | Self-raised fund |
| Total | 541,348,640.62 | 1,241,183,440.28 | 1,473,383,863.58 | 31,126,648.70 | 256,629.89 | 20,546,746.31 | 2,227,020.47 | - | - | 257,218,192.42 | - |
(3) Impairment provisions for construction in progress
| Items | 2023.12.31 | Addition | Reduction | 2024.12.31 |
| Supporting construction for feedstuff projects | - | 104,720.00 | - | 104,720.00 |
| Total | - | 104,720.00 | - | 104,720.00 |
19. Productive biological assets
(1) Measured by cost
| Item | Animal husbandry | Aquaculture | Others | Total | |
| Breeding Pig | Breeding shrimp | Breeding fish | |||
| I. Cost | |||||
| 1. As of 2023.12.31 | 543,372,379.18 | 27,886,669.22 | 6,518,096.30 | 18,077,051.73 | 595,854,196.43 |
| 2. Additions during the period | 426,747,289.96 | 92,345,921.95 | 25,773,697.71 | 22,223,056.83 | 567,089,966.45 |
| (1) Purchases | 185,157,029.44 | 72,590,366.07 | 6,634,596.76 | 7,146,174.69 | 271,528,166.96 |
| (2) Self-cultivated | 241,596,109.58 | 19,864,113.74 | 19,139,100.95 | 15,077,292.57 | 295,676,616.84 |
| (3) Effect of translation of foreign currency financial statements | -5,849.06 | -108,557.86 | - | -410.43 | -114,817.35 |
| (4) Others | - | - | - | - | - |
| 3. Decreases during the period | 406,600,952.62 | 93,011,346.67 | 23,075,879.61 | 22,490,523.73 | 545,178,702.63 |
| (1) Disposals | 406,600,952.62 | 93,011,346.67 | 20,579,448.44 | 22,490,523.73 | 542,682,271.46 |
| (2) Others | - | - | 2,496,431.17 | - | 2,496,431.17 |
| 4. As of 2024.12.31 | 563,518,716.52 | 27,221,244.50 | 9,215,914.40 | 17,809,584.83 | 617,765,460.25 |
| II. Accumulated depreciation | |||||
| 1. As of 2023.12.31 | 136,142,921.27 | 11,759,851.95 | 1,244,595.84 | 76,947.38 | 149,224,316.44 |
| 2. Charges for the period | 145,068,510.36 | 83,358,878.52 | 9,049,640.00 | 18,276,514.33 | 255,753,543.21 |
| (1) Provision | 145,069,323.80 | 83,431,945.60 | 9,049,640.00 | 18,276,759.47 | 255,827,668.87 |
| (2) Effect of translation of foreign currency financial statements | -813.44 | -73,067.08 | - | -245.14 | -74,125.66 |
| (3) Others | - | - | - | - | - |
| 3. Decreases during the period | 141,896,395.95 | 86,403,670.68 | 8,210,826.46 | 16,588,828.23 | 253,099,721.32 |
| (1) Disposal | 141,896,395.95 | 86,403,670.68 | 8,210,826.46 | 16,588,828.23 | 253,099,721.32 |
| (2) Others | - | - | - | - | - |
| 4. As of 2024.12.31 | 139,315,035.68 | 8,715,059.79 | 2,083,409.38 | 1,764,633.48 | 151,878,138.33 |
| III. Provision for impairment | |||||
| 1. As of 2023.12.31 | - | - | - | - | - |
| 2. Charges for the period | - | - | - | - | - |
| (1) Provision | - | - | - | - | - |
| (2) Others | - | - | - | - | - |
| Item | Animal husbandry | Aquaculture | Others | Total | |
| Breeding Pig | Breeding shrimp | Breeding fish | |||
| 3. Decreases during the period | - | - | - | - | - |
| (1) Disposals | - | - | - | - | - |
| (2) Others | - | - | - | - | - |
| 4. As of 2024.12.31 | - | - | - | - | - |
| IV. Carrying amount | |||||
| As of 2024.12.31 | 424,203,680.84 | 18,506,184.71 | 7,132,505.02 | 16,044,951.35 | 465,887,321.92 |
| As of 2023.12.31 | 407,229,457.91 | 16,126,817.27 | 5,273,500.46 | 18,000,104.35 | 446,629,879.99 |
(2) There were no productive biological assets measured at fair value in the current period.
20. Right-of-use assets
| Item | Land use rights | Plant and buildings | Machinery equipment | Motor vehicles | Electronic equipment | Other equipment | Total |
| I. Cost | |||||||
| 1. As of 2023.12.31 | 1,762,707,021.87 | 925,526,184.88 | 378,964,084.68 | 22,230,220.22 | 4,884,236.83 | 29,140,605.57 | 3,123,452,354.05 |
| 2. Additions during the period | 181,041,457.71 | 730,268,974.27 | 59,853,360.14 | 7,559,286.40 | 562,270.56 | 1,187,586.89 | 980,472,935.97 |
| (1) (1) Rent in | 185,508,547.86 | 703,314,206.96 | 54,112,763.49 | 7,899,294.88 | - | 182,675.74 | 951,017,488.93 |
| (2) (2) Lease liability adjustment | -4,146,936.63 | 27,235,734.10 | 6,837,710.37 | -327,856.04 | 562,270.56 | 1,004,911.15 | 31,165,833.51 |
| (3) (3) Effect of translation of foreign currency financial statements | -320,153.52 | -280,966.79 | -1,097,113.72 | -12,152.44 | - | - | -1,710,386.47 |
| (4) (4) Others | - | - | - | - | - | - | - |
| 3. Decreases during the period | 137,642,787.81 | 111,853,512.48 | 46,746,194.22 | 5,886,923.76 | 101,573.23 | 12,606,029.03 | 314,837,020.53 |
| (5) (1) Lease termination | 126,626,711.43 | 92,686,438.91 | 39,487,391.12 | 5,886,923.76 | 101,573.23 | 12,606,029.03 | 277,395,067.48 |
| (6) (2) Reduction in the scope of consolidation | 11,016,076.38 | 19,167,073.57 | 7,258,803.10 | - | - | - | 37,441,953.05 |
| (3) Others | - | - | - | - | - | - | - |
| 4. As of 2024.12.31 | 1,806,105,691.77 | 1,543,941,646.67 | 392,071,250.60 | 23,902,582.86 | 5,344,934.16 | 17,722,163.43 | 3,789,088,269.49 |
| II. Accumulated depreciation | |||||||
| 1. As of 2023.12.31 | 335,351,556.73 | 277,693,608.30 | 125,867,447.40 | 10,377,961.94 | 2,099,679.11 | 11,840,406.31 | 763,230,659.79 |
| 2. Charges for the period | 137,778,173.39 | 181,660,045.17 | 50,691,283.86 | 5,684,854.59 | 1,252,714.92 | 2,976,254.27 | 380,043,326.20 |
| (1) Provision | 137,824,821.06 | 181,757,474.30 | 51,463,410.34 | 5,686,862.68 | 1,252,714.92 | 2,976,254.27 | 380,961,537.57 |
| (2) Effect of translation of foreign currency financial statements | -46,647.67 | -97,429.13 | -772,126.48 | -2,008.09 | - | - | -918,211.37 |
| (3) Others | - | - | - | - | - | - | - |
| 3. Decreases during the period | 38,829,437.44 | 69,074,740.42 | 30,089,869.16 | 4,937,818.94 | 101,573.23 | 7,489,946.27 | 150,523,385.46 |
| Item | Land use rights | Plant and buildings | Machinery equipment | Motor vehicles | Electronic equipment | Other equipment | Total |
| (1) Lease termination | 36,643,938.15 | 65,060,693.72 | 28,569,700.70 | 4,937,818.94 | 101,573.23 | 7,489,946.27 | 142,803,671.01 |
| (2) Reduction in the scope of consolidation | 2,185,499.29 | 4,014,046.70 | 1,520,168.46 | - | - | - | 7,719,714.45 |
| (3) Others | - | - | - | - | - | - | - |
| 4. As of 2024.12.31 | 434,300,292.68 | 390,278,913.05 | 146,468,862.10 | 11,124,997.59 | 3,250,820.80 | 7,326,714.31 | 992,750,600.53 |
| III. Provision for impairment | |||||||
| 1. As of 2023.12.31 | - | - | - | - | - | - | - |
| 2. Charges during the period | 25,473,752.43 | 1,038,160.32 | - | - | - | - | 26,511,912.75 |
| (1) Provision | 25,473,752.43 | 1,038,160.32 | - | - | - | - | 26,511,912.75 |
| (2) Others | - | - | - | - | - | - | - |
| 3. Decreases during the period | - | - | - | - | - | - | - |
| (1) Lease termination | - | - | - | - | - | - | - |
| (2) Others | - | - | - | - | - | - | - |
| 4. As of 2024.12.31 | 25,473,752.43 | 1,038,160.32 | - | - | - | - | 26,511,912.75 |
| IV Carrying amount | |||||||
| 1. As of 2024.12.31 | 1,346,331,646.66 | 1,152,624,573.30 | 245,602,388.50 | 12,777,585.27 | 2,094,113.36 | 10,395,449.12 | 2,769,825,756.21 |
| 2. As of 2023.12.31 | 1,427,355,465.14 | 647,832,576.58 | 253,096,637.28 | 11,852,258.28 | 2,784,557.72 | 17,300,199.26 | 2,360,221,694.26 |
The Group recognized lease expenses related to short-term leases and leases of low-value assets, please refer to Note V. 71 Leases for more details.
21. Intangible assets
(1) Details of intangible assets
| Item | Land use rights | Patent and non-patent rights | Software use rights and trademarks | Marketing network, maritime rights and others | Total |
| Item | Land use rights | Patent and non-patent rights | Software use rights and trademarks | Marketing network, maritime rights and others | Total |
| I. Cost | |||||
| 1. As of 2023.12.31 | 1,710,090,523.13 | 250,315,317.99 | 350,758,283.08 | 99,805,244.86 | 2,410,969,369.06 |
| 2. Additions during the period | 88,106,263.99 | 42,416,128.00 | 52,629,888.77 | - | 183,152,280.76 |
| (1) Purchases | 91,549,741.99 | 7,114,768.76 | 17,352,020.40 | - | 116,016,531.15 |
| (2) Transfers from internal R&D | - | 35,301,359.24 | - | - | 35,301,359.24 |
| (3) Transfers from constructions in progress | - | - | 35,339,512.11 | - | 35,339,512.11 |
| (4) Effect of translation of foreign currency financial statements | -3,443,478.00 | - | -61,643.74 | - | -3,505,121.74 |
| 3. Decreases during the period | 39,751,407.41 | 7,210,109.96 | 1,702,682.06 | 37,401,500.00 | 86,065,699.43 |
| (1) Disposals | 33,801,958.84 | 7,210,109.96 | 1,702,682.06 | 37,401,500.00 | 80,116,250.86 |
| (2) Reduction in the scope of consolidation | 5,949,448.57 | - | - | - | 5,949,448.57 |
| (3) Others | - | - | - | - | - |
| 4. As of 2024.12.31 | 1,758,445,379.71 | 285,521,336.03 | 401,685,489.79 | 62,403,744.86 | 2,508,055,950.39 |
| II. Accumulated amortisation | |||||
| 1. As of 2023.12.31 | 224,567,502.85 | 169,694,439.97 | 191,294,373.89 | 48,954,396.74 | 634,510,713.45 |
| 2. Charges during the period | 39,508,935.60 | 26,095,904.87 | 28,554,068.97 | 19,370,783.05 | 113,529,692.49 |
| (1) Provision | 39,989,844.42 | 26,095,904.87 | 28,601,000.90 | 19,370,783.05 | 114,057,533.24 |
| (2) Effect of translation of foreign currency financial statements | -480,908.82 | - | -46,931.93 | - | -527,840.75 |
| (3) Others | - | - | - | - | - |
| 3. Decreases during the period | 3,573,781.85 | 4,915,579.16 | 833,560.50 | 37,401,500.00 | 46,724,421.51 |
| (1) Disposals | 2,901,859.97 | 4,915,579.16 | 833,560.50 | 37,401,500.00 | 46,052,499.63 |
| (2) Reduction in the scope of consolidation | 671,921.88 | - | - | - | 671,921.88 |
| (3) Others | - | - | - | - | - |
| 4. As of 2024.12.31 | 260,502,656.60 | 190,874,765.68 | 219,014,882.36 | 30,923,679.79 | 701,315,984.43 |
| Item | Land use rights | Patent and non-patent rights | Software use rights and trademarks | Marketing network, maritime rights and others | Total |
| III. Provision for impairment | |||||
| 1. As of 2023.12.31 | - | 10,307,844.71 | - | - | 10,307,844.71 |
| 2. Charges during the period | - | - | - | - | - |
| (1) Provision | - | - | - | - | - |
| (2) Others | - | - | - | - | - |
| 3. Decreases during the period | - | - | - | - | - |
| (1) Disposals | - | - | - | - | - |
| (2) Others | - | - | - | - | - |
| 4. As of 2023.12.31 | - | 10,307,844.71 | - | - | 10,307,844.71 |
| IV. Carrying amount | |||||
| 1. As of 2024.12.31 | 1,497,942,723.11 | 84,338,725.64 | 182,670,607.43 | 31,480,065.07 | 1,796,432,121.25 |
| 2. As of 2023.12.31 | 1,485,523,020.28 | 70,313,033.31 | 159,463,909.19 | 50,850,848.12 | 1,766,150,810.90 |
At the end of the period, the carrying amount of intangible assets arising from internal research and development represented 8.30% of the total carrying amount ofintangible assets.
(2) Land use rights without ownership certificates
| Item | Carrying amount | Reason why certificates of ownership are pending |
| Land use rights | 34,571,567.29 | In progress |
22. Development costs
| Project | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Development costs | 30,107,986.40 | 51,776,161.58 | 35,301,359.24 | 46,582,788.74 |
For details, refers to Note VI. Research and development expenditure.
23. Goodwill
(1) Book value of goodwill
| Name of the investee or matters giving rise to goodwill | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | |
| Business Combination | Disposals | Effect of translation of foreign currency statement | |||
| Guangzhou Runchuan Investment Co., Ltd. | 50,000.00 | - | - | - | 50,000.00 |
| Feicheng Heruifeng Agricultural Technology Co., Ltd. | 57,092,523.20 | - | - | - | 57,092,523.20 |
| Weifang Xuheng Agricultural Technology Co., Ltd. | 30,507,361.78 | - | - | - | 30,507,361.78 |
| Gaotang Huayu Pig Farming Co., Ltd. | 1,455,358.51 | - | - | - | 1,455,358.51 |
| Gaozhou Haiyuan Agricultural Co., Ltd. | 2,799,980.27 | - | - | - | 2,799,980.27 |
| Sichuan Hailinge Biopharmaceutical Co., Ltd. | 76,410,471.64 | - | - | - | 76,410,471.64 |
| Taizhou Haida Biological Feed Co., Ltd. | 578,247.88 | - | - | - | 578,247.88 |
| Guangzhou Haihe Feed Co., Ltd. | 76,663.70 | - | - | - | 76,663.70 |
| Dongguan Haida Feed Co., Ltd. | 2,831,241.61 | - | - | - | 2,831,241.61 |
| Zhanjiang Haixingnong Marine Biotechnology Co., Ltd. | 4,100,845.79 | - | - | - | 4,100,845.79 |
| Rongcheng Yandunjiao Fish Meal Co., Ltd. | 33,087.10 | - | 33,087.10 | - | - |
| Foshan Sanshui Fanling Feed Co., Ltd. | 4,841,934.68 | - | - | - | 4,841,934.68 |
| Dalian Haida Rongchuan Trading Co., Ltd. | 32,178.11 | - | - | - | 32,178.11 |
| PANASIA TRADING RESOURCES LIMITED | 44,500,530.73 | - | - | -664,112.00 | 45,164,642.73 |
| KEMBANG SUBUR INTERNATIONAL LTD. | 353,999.58 | - | - | -5,282.98 | 359,282.56 |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | 5,737,314.50 | - | - | -85,621.89 | 5,822,936.39 |
| Kaifeng Haida Feed Co., Ltd. | 8,838,854.56 | - | - | - | 8,838,854.56 |
| Guangzhou Heshengtang Biotechnology Co., Ltd. | 127,116.22 | - | - | - | 127,116.22 |
| Name of the investee or matters giving rise to goodwill | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | |
| Business Combination | Disposals | Effect of translation of foreign currency statement | |||
| Guangdong Haida Animal Husbandry & Veterinary Research Institute Co., Ltd. | 5,809,578.76 | - | - | - | 5,809,578.76 |
| Hunan Innovation Biotechnology Co., Ltd. | 19,210,769.76 | - | - | - | 19,210,769.76 |
| Jiaxing Haida Yongwang Biological Feed Co., Ltd. | 8,312,415.28 | - | - | - | 8,312,415.28 |
| Shandong Daxin Group Co., Ltd. | 115,902,036.20 | - | - | - | 115,902,036.20 |
| Qingdao Haihe Agriculture & Animal Husbandry Technology Co., Ltd. | 220,674.27 | - | - | - | 220,674.27 |
| Hunan Jinhuilong Technology Co., Ltd. | 2,400,475.64 | - | - | - | 2,400,475.64 |
| Zhongshan Yugezi Food Co., Ltd. | 9,620,427.34 | - | - | - | 9,620,427.34 |
| Yunnan Zhonggui Feed Co., Ltd. | 3,088,765.62 | - | - | - | 3,088,765.62 |
| Qingyuan Ronghai Food Technology Co., Ltd. | 1,218,130.86 | - | - | - | 1,218,130.86 |
| Hainan Zhuangmei Agriculture & Animal Husbandry Co., Ltd. | 1,999,796.32 | - | - | - | 1,999,796.32 |
| Jiangxi Jiabo Bioengineering Co., Ltd. | 17,826,753.49 | - | - | - | 17,826,753.49 |
| Ganzhou Lianduoli Feed Technology Co., Ltd. | 4,228,394.10 | - | - | - | 4,228,394.10 |
| Foshan Debao Biological Group Co., Ltd. | 24,182,145.13 | - | - | - | 24,182,145.13 |
| Xishui Chenke Feed Technology Co., Ltd. | 55,850,881.86 | - | - | - | 55,850,881.86 |
| Total | 510,238,954.49 | - | 33,087.10 | -755,016.87 | 510,960,884.26 |
Note: The above goodwill was primarily resulted form business comninations involving enterprises notunder common control. Where the combination cost exceeds the Group’s interest in the fair value of theacquiree’s identifiable net assets, the difference is recognised as goodwill. The movement during thecurrent period included the effect of translation of foreign currency statement due to exchange ratefluctuations on the goodwill arising from the acquisition of foreign subsidiaries.
(2) Provision for impairment of goodwill
| Name of the investee or matters giving rise to goodwill | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Provision | Disposal | Effect of translation of foreign currency statement | |||
| Guangzhou Runchuan Investment Co., Ltd. | 50,000.00 | - | - | - | 50,000.00 |
| Feicheng Heruifeng Agricultural Technology Co., Ltd. | 47,023,388.15 | 10,069,135.05 | - | - | 57,092,523.20 |
| Weifang Xuheng Agricultural Technology Co., Ltd. | 25,284,430.92 | 5,222,930.86 | - | - | 30,507,361.78 |
| Gaotang Huayu Pig Farming Co., Ltd. | - | 1,455,358.51 | - | - | 1,455,358.51 |
| Gaozhou Haiyuan Agricultural Co., Ltd. | - | 2,799,980.27 | - | - | 2,799,980.27 |
| Sichuan Hailinge Biopharmaceutical Co., Ltd. | 76,410,471.64 | - | - | - | 76,410,471.64 |
| Guangzhou Haihe Feed Co., Ltd. | 76,663.70 | - | - | - | 76,663.70 |
| KEMBANG SUBUR INTERNATIONAL LTD. | 353,999.58 | - | - | -5,282.98 | 359,282.56 |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | 5,737,314.50 | - | - | -85,621.89 | 5,822,936.39 |
| Guangdong Haida Animal Husbandry & Veterinary Research Institute Co., Ltd. | - | 5,809,578.76 | - | - | 5,809,578.76 |
| Hunan Innovation Biotechnology Co., Ltd. | 4,038,440.41 | - | - | - | 4,038,440.41 |
| Shandong Daxin Group Co., Ltd. | 3,328,423.01 | 39,459,654.06 | - | - | 42,788,077.07 |
| Qingdao Haihe Agriculture & Animal Husbandry Technology Co., Ltd. | - | 220,674.27 | - | - | 220,674.27 |
| Zhongshan Yugezi Food Co., Ltd. | - | 9,620,427.34 | - | - | 9,620,427.34 |
| Jiangxi Jiabo Bioengineering Co., Ltd. | 3,112,320.66 | 14,714,432.83 | - | - | 17,826,753.49 |
| Foshan Debao Biological Group Co., Ltd. | - | 10,903,528.88 | - | - | 10,903,528.88 |
| Total | 165,415,452.57 | 100,275,700.83 | - | -90,904.87 | 265,782,058.27 |
Note: The Group calculated the recoverable amounts by discounting the expected future cash flows, whichwas prepared by the management based on the past performance and expectation for future marketdevelopment within the next 5 year, and the cash flow growth rate adopted for subsequent years wasexpected to be 0.00% (previous period: 0.00%). As of December 31, 2024, according to the impairmenttest results, the Group recognized provision for impairment of goodwill of RMB 265,782,058.27 (At the
end of previous period: 165,415,452.57).The Group uses the present value of expected future cash flows to calculate the recoverable amount of theasset group. The Group estimates cash flows for the next five years based on the financial budget approvedby the management, with a cash flow growth rate of 0.00% for subsequent years (prior period: 0.00%).Management has prepared the above financial budget based on past performance and its expectations formarket development. According to the results of the impairment test, the balance of goodwill impairmentprovision as of December 31, 2024 was RMB265,782,058.27 (December 31, 2023:: RMB165,415,452.57).
24. Long-term deferred expenses
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | |
| Amortization for the period | Others | ||||
| Rental expenses | 1,434,023.66 | 568,903.18 | 333,975.08 | 380,000.00 | 1,288,951.76 |
| Transfer fee for contracted management rights | 3,317,085.45 | - | 1,093,433.11 | 89,574.51 | 2,134,077.83 |
| Improvement and renovations expenses | 171,956,396.51 | 173,048,501.04 | 65,321,284.52 | 1,892,079.15 | 277,791,533.88 |
| Other | 14,456,647.29 | 4,922,226.83 | 4,970,347.26 | 160,457.36 | 14,248,069.50 |
| Total | 191,164,152.91 | 178,539,631.05 | 71,719,039.97 | 2,522,111.02 | 295,462,632.97 |
25. Deferred tax assets and deferred tax liabilities
(1) Unoffset deferred tax assets and deferred tax liabilities
| Item | 2024.12.31 | 2023.12.31 | ||
| Deductible or taxable temporary differences | Deferred tax assets/ deferred tax liabilities | Deductible or taxable temporary differences | Deductible or taxable temporary differences | |
| Deferred tax assets: | ||||
| Provision of credit losses | 508,740,572.13 | 119,922,787.44 | 339,706,460.38 | 80,759,541.27 |
| Provisions for assets impairment | 41,475,708.33 | 8,982,965.65 | 77,807,321.23 | 13,354,884.63 |
| Start-up expenses | 25,048,403.65 | 5,193,695.05 | 21,267,938.38 | 4,255,174.46 |
| Depreciation on fixed assets | 6,031,106.19 | 817,928.46 | 6,823,237.93 | 933,580.74 |
| Deductible losses | 2,163,425,915.22 | 497,995,931.88 | 2,379,004,825.07 | 485,092,998.76 |
| Accrued sales discount/ expenses | 188,352,253.92 | 25,030,356.15 | 162,730,663.14 | 18,084,583.38 |
| Unrealized profits of intra-group transactions | 344,444,589.49 | 69,884,574.54 | 255,702,951.70 | 47,732,629.19 |
| Movements of fair value | 67,566,076.19 | 16,882,245.05 | 27,551,786.89 | 6,637,512.72 |
| Deferred income | 206,173,283.74 | 43,737,336.66 | 196,031,730.43 | 40,147,181.86 |
| Employee compensation | 128,616,353.63 | 23,578,681.24 | 190,725,246.59 | 33,927,157.33 |
| Equity incentive | 143,007,901.13 | 21,451,185.17 | - | - |
| Advertising expenses | 49,549.08 | 8,251.90 | 115,892.93 | 19,635.06 |
| Accrued tax deduction | 209,973,636.00 | 31,496,045.40 | 308,798,901.13 | 46,319,835.17 |
| Item | 2024.12.31 | 2023.12.31 | ||
| Deductible or taxable temporary differences | Deferred tax assets/ deferred tax liabilities | Deductible or taxable temporary differences | Deductible or taxable temporary differences | |
| Lease liabilities | 1,718,446,870.60 | 296,953,755.29 | 1,380,844,985.35 | 250,593,173.69 |
| Subtotal | 5,751,352,219.30 | 1,161,935,739.88 | 5,347,111,941.15 | 1,027,857,888.26 |
| Deferred tax liabilities： | ||||
| Value-added assessment from business combination not under common control | 225,048,169.87 | 53,256,220.18 | 266,360,151.32 | 63,211,621.82 |
| Valuation of held-for-trading financial instruments and derivative financial instruments | 308,152,540.63 | 75,805,950.05 | 220,717,586.50 | 54,282,438.80 |
| Depreciation on fixed assets | 532,382,083.30 | 112,803,681.67 | 588,445,866.29 | 121,433,436.20 |
| Amortization on Intangible assets | 6,631,904.09 | 1,236,928.70 | 9,301,919.58 | 1,608,530.89 |
| Expected profits to be distributed by overseas subsidiaries | 209,973,636.00 | 31,496,045.40 | 308,798,901.13 | 46,319,835.17 |
| Right-of-use assets | 1,618,737,339.94 | 277,762,992.09 | 1,314,563,113.06 | 237,111,458.78 |
| Others | 93,392,321.55 | 22,736,776.77 | 107,689,115.32 | 16,197,204.24 |
| Subtotal | 2,994,317,995.38 | 575,098,594.86 | 2,815,876,653.20 | 540,164,525.90 |
(2) Deferred tax assets or liabilities presented at the net amount after offsetting
| Item | Offset amount of deferred tax assets and liabilities at the end of the period | Deferred tax assets or liabilities after offseting at the end of the period | Offset mount of deferred tax assets and liabilities at the end of prior year | Deferred tax assets or liabilities after offseting at the end of prior year |
| Deferred tax assets | 434,940,233.62 | 726,995,506.26 | 354,408,026.34 | 673,449,861.92 |
| Deferred tax liabilities | 434,940,233.62 | 140,158,361.24 | 354,408,026.34 | 185,756,499.56 |
(3) Details of unrecognized deferred tax assets from deductible temporary differences and deductible losses
| Item | 2024.12.31 | 2023.12.31 |
| Deductible temporary differences | 87,165,003.59 | 31,676,614.20 |
| Deductible losses | 1,074,522,760.26 | 145,368,419.81 |
| Total | 1,161,687,763.85 | 177,045,034.01 |
(4) Expiration of deductible tax losses for unrecognised deferred tax assets
| Year | 2024.12.31 | 2023.12.31 | Note |
| 2024 | —— | 34,435,436.48 | |
| 2025 | 55,283,802.09 | 30,857,785.68 |
| Year | 2024.12.31 | 2023.12.31 | Note |
| 2026 | 108,418,008.54 | 23,988,649.48 | |
| 2027 | 118,726,327.10 | 37,975,287.88 | |
| 2028 | 390,137,806.15 | 18,111,260.29 | |
| 2029 and onwards | 401,956,816.38 | —— | |
| Total | 1,074,522,760.26 | 145,368,419.81 |
26. Other non-current assets
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Impairment provision | Carrying amount | Book value | Impairment provision | Carrying amount | |
| Prepayments for equipment and constructions | 100,712,662.23 | - | 100,712,662.23 | 169,583,168.25 | - | 169,583,168.25 |
| Prepayments for other long-term assets | 36,342,448.54 | - | 36,342,448.54 | 70,103,566.22 | - | 70,103,566.22 |
| Factoring accounts receivable | 30,750,003.00 | 461,250.05 | 30,288,752.95 | 35,000,000.00 | 525,000.00 | 34,475,000.00 |
| Total | 167,805,113.77 | 461,250.05 | 167,343,863.72 | 274,686,734.47 | 525,000.00 | 274,161,734.47 |
27. Assets with restricted ownership or use rights
| Item | 2024.12.31 | |
| Carrying amount | Reason for restriction | |
| Cash at bank and on hand | 149,124,842.12 | Land reclamation deposit, guarantee deposit, bank guarantee, etc. |
| Notes receivable | 1,000,000.00 | Unexpired endorsed notes receivable that have not been derecognized |
| Held-for-trading financial assets (note) | 653,572.61 | Frozen due to litigation |
| Fixed assets | - | / |
| Total | 150,778,414.73 | / |
(Continued)
| Item | 2023.12.31 | |
| Carrying amount | Reason for restriction | |
| Cash at bank and on hand | 108,947,754.71 | Land reclamation deposit, guarantee for letter of credit, guarantee deposit, bank guarantee, etc. |
| Notes receivable | 67,245.20 | Unexpired endorsed notes receivable that have not been derecognized |
| Held-for-trading financial assets | - | / |
| Item | 2023.12.31 | |
| Carrying amount | Reason for restriction | |
| Fixed assets | 6,189,438.42 | Asset Preservation |
| Total | 115,204,438.33 | / |
Note: As of the date of this report, the asset has been unfrozen.
28. Short-term loans
(1) Classification of short-term loans
| Item | 2024.12.31 | 2023.12.31 |
| Unsecured loan | 250,844,832.05 | 1,378,714,852.59 |
| Guaranteed loan | - | 11,000,000.00 |
| Accrued interests | 895,055.24 | 6,421,360.41 |
| Total | 251,739,887.29 | 1,396,136,213.00 |
Note: Unsecured loans included loans guaranteed by members within the Group.
(2) As of December 31, 2024, there were no overdue short-term loans.
29. Held-for-trading financial liabilities
| Item | 2024.12.31 | 2023.12.31 |
| Held-for-trading financial liabilities | 77,390,252.93 | 22,203,844.99 |
| Including: Derivative financial liabilities | 77,390,252.93 | 22,203,844.99 |
| Total | 77,390,252.93 | 22,203,844.99 |
30. Notes payable
| Item | 2024.12.31 | 2023.12.31 |
| Bank acceptance notes | 4,447,545,146.08 | 5,155,754,992.46 |
| Domestic letter of credit | 547,656,341.99 | 741,859,888.52 |
| Total | 4,995,201,488.07 | 5,897,614,880.98 |
Note: As of December 31, 2024, there were no unsettled overdue notes payable.
31. Accounts payable
| Item | 2024.12.31 | 2023.12.31 |
| Within one year | 5,302,228,937.75 | 4,444,284,967.32 |
| More than 1 year | 180,832,558.20 | 299,009,532.73 |
| Total | 5,483,061,495.95 | 4,743,294,500.05 |
Note: There were no significant accounts payable with aging over one year.
32. Advances from customers
| Item | 2024.12.31 | 2023.12.31 |
| Item | 2024.12.31 | 2023.12.31 |
| Rental income | 3,749,633.06 | 4,983,594.55 |
| Others | 498,532.00 | 499,559.00 |
| Total | 4,248,165.06 | 5,483,153.55 |
Note: There were no significant advances from customers with aging over one year.
33. Contract liabilities
| Item | 2024.12.31 | 2023.12.31 |
| Advances from customers | 2,251,063,282.58 | 1,937,760,139.45 |
| Less: Contract liabilities recognized in other non-current liabilities | - | 15,546,408.08 |
| Total | 2,251,063,282.58 | 1,922,213,731.37 |
Note: There were no significant contract liabilities with aging over one year.
34. Employee benefits payable
| Item | 2023.12.31 | Accrued during the period | Decreased during the period | 2024.12.31 |
| Short-term employee benefits | 1,678,339,521.27 | 6,466,778,571.31 | 5,987,968,843.98 | 2,157,149,248.60 |
| Post-employment benefits - defined contribution plans | 1,122,883.33 | 297,045,889.42 | 296,859,405.81 | 1,309,366.94 |
| Termination benefits | 3,137,284.94 | 19,174,769.21 | 14,108,381.90 | 8,203,672.25 |
| Other benefits due within one year | - | - | - | - |
| Total | 1,682,599,689.54 | 6,782,999,229.94 | 6,298,936,631.69 | 2,166,662,287.79 |
⑴ Short-term employee benefits
| Item | 2023.12.31 | Accrued during the period | Decreased during the period | 2024.12.31 |
| Salaries, bonus, allowances | 1,288,064,031.20 | 5,512,140,011.98 | 5,210,695,609.34 | 1,589,508,433.84 |
| Staff welfare | 16,585,879.20 | 222,031,494.33 | 210,228,573.96 | 28,388,799.57 |
| Social insurances | 462,131.73 | 145,587,881.48 | 144,988,626.75 | 1,061,386.46 |
| Including: 1. Medical and maternity insurance | 417,567.01 | 132,000,223.78 | 131,372,055.23 | 1,045,735.56 |
| 2. Work-related injury insurance | 8,755.87 | 11,623,536.28 | 11,629,323.71 | 2,968.44 |
| 3. Serious disease subsidies | 35,808.85 | 1,964,121.42 | 1,987,247.81 | 12,682.46 |
| Housing Fund | 190,876.35 | 56,925,854.63 | 57,022,859.28 | 93,871.70 |
| Labor union fees | 1,346,858.65 | 12,641,797.58 | 12,510,830.69 | 1,477,825.54 |
| Employee education fee | 1,496,921.86 | 16,207,536.39 | 16,285,035.39 | 1,419,422.86 |
| Short-term profit - sharing plan | 370,192,822.28 | 501,243,994.92 | 336,237,308.57 | 535,199,508.63 |
| Item | 2023.12.31 | Accrued during the period | Decreased during the period | 2024.12.31 |
| Total | 1,678,339,521.27 | 6,466,778,571.31 | 5,987,968,843.98 | 2,157,149,248.60 |
⑵ Defined contribution plans
| Item | 2023.12.31 | Accrued during the period | Decreased during the period | 2024.12.31 |
| Post-employment benefits | 1,122,883.33 | 297,045,889.42 | 296,859,405.81 | 1,309,366.94 |
| Including: 1. Basic pension insurance | 1,109,461.73 | 285,429,264.73 | 285,235,537.72 | 1,303,188.74 |
| 2. Unemployment insurance | 13,421.60 | 11,616,624.69 | 11,623,868.09 | 6,178.20 |
| 3. Annuity | - | - | - | - |
| Total | 1,122,883.33 | 297,045,889.42 | 296,859,405.81 | 1,309,366.94 |
35. Taxes payable
| Item | 2024.12.31 | 2023.12.31 |
| VAT | 11,175,766.01 | 13,034,800.22 |
| City construction tax | 393,532.32 | 491,059.96 |
| Corporate income tax | 303,149,627.11 | 203,794,032.48 |
| Individual income tax | 13,547,929.44 | 11,063,298.47 |
| Property tax | 6,231,230.19 | 10,706,235.94 |
| Stamp tax | 15,527,964.97 | 14,493,966.10 |
| Educational surcharges and local education surcharge | 308,914.98 | 380,644.79 |
| Land use tax | 3,316,266.47 | 3,438,211.96 |
| Environmental protection tax | 438,020.26 | 423,429.96 |
| Water resource tax | 181,841.10 | 160,136.74 |
| Withholding tax | 4,324,752.32 | 1,078,656.78 |
| Others | 803,392.47 | 815,460.68 |
| Total | 359,399,237.64 | 259,879,934.08 |
36. Other payables
| Item | 2024.12.31 | 2023.12.31 |
| Interest payables | - | - |
| Dividend payables | 92,085,342.39 | 3,886,356.36 |
| Other payables | 860,131,940.23 | 835,290,015.21 |
| Total | 952,217,282.62 | 839,176,371.57 |
(2) Dividend payables
| Item | 2024.12.31 | 2023.12.31 |
| Payables due to minority shareholder | 92,085,342.39 | 3,886,356.36 |
| Item | 2024.12.31 | 2023.12.31 |
| Total | 92,085,342.39 | 3,886,356.36 |
Note: As of December 31, 2024, there were no significant dividends payable with aging over one year.
(2) Other payables (disclosed by nature)
| Item | 2024.12.31 | 2023.12.31 |
| Security deposits | 600,139,853.73 | 422,451,414.31 |
| Expense reimbursement | 14,145,503.26 | 15,885,044.34 |
| Rental expenses | 40,976,916.34 | 30,080,800.22 |
| Payment for employee shareholding plan | 134,174,910.78 | 240,880,932.60 |
| Payables to external parties | 61,680,755.20 | 112,510,967.06 |
| Payables for equity transfer | - | 6,081,935.84 |
| Others | 9,014,000.92 | 7,398,920.84 |
| Total | 860,131,940.23 | 835,290,015.21 |
Note: There were no significant other payables with aging over one year.
37. Non-current liabilities due within one year
| Item | 2024.12.31 | 2023.12.31 |
| Long-term loan due within one year | 863,994,845.76 | 717,771,010.44 |
| Long-term payables due within one year | 8,035,914.21 | 39,348,128.58 |
| Lease liabilities due within one year | 346,516,119.42 | 298,082,375.56 |
| Other non-current liabilities due within one year | 11,381,008.58 | - |
| Total | 1,229,927,887.97 | 1,055,201,514.58 |
Long-term loan due within one year
| Item | 2024.12.31 | 2023.12.31 |
| Guaranteed loans | 9,500,000.00 | 3,000,000.00 |
| Unsecured loans | 851,711,161.09 | 709,740,701.22 |
| Accrued interests | 2,783,684.67 | 5,030,309.22 |
| Total | 863,994,845.76 | 717,771,010.44 |
Long-term payables due within one year
| Item | 2024.12.31 | 2023.12.31 |
| Security deposits | 600,000.00 | 100,000.00 |
| Sea area usage fee | 2,603,850.45 | 3,374,282.08 |
| Others | 4,832,063.76 | 35,873,846.50 |
| Total | 8,035,914.21 | 39,348,128.58 |
38. Other current liabilities
| Item | 2024.12.31 | 2023.12.31 |
| Item | 2024.12.31 | 2023.12.31 |
| Water and electricity | 88,804,811.18 | 80,392,840.14 |
| Steam, fuel, and power expenses | 42,102,572.16 | 37,256,272.50 |
| Transportation and warehousing charges | 21,739,112.43 | 24,347,868.09 |
| Office and meeting service charges | 27,705,911.35 | 25,589,547.39 |
| Travel charges | 23,364,282.86 | 21,151,616.09 |
| Rental expenses | 2,555,541.73 | 2,914,969.89 |
| Vehicle costs | 21,148,175.04 | 17,327,056.83 |
| Research and development expenses | 1,919,522.24 | 3,740,190.07 |
| Business promotion expenses | 22,688,566.16 | 13,210,036.60 |
| Repair costs | 5,102,229.22 | 4,325,870.38 |
| Entrusted cultivation charges | 386,620,151.15 | 282,756,366.38 |
| Output VAT to be transferred | 30,823,119.39 | 35,816,108.60 |
| Guarantee compensation reserve | 21,662,672.98 | 18,585,055.12 |
| Others | 67,639,141.45 | 43,461,966.67 |
| Total | 763,875,809.34 | 610,875,764.75 |
39. Long-term loans
| Item | 2024.12.31 | Interest rate | 2023.12.31 | Interest rate |
| Unsecured loans | 2,606,532,495.98 | 2.65%~4.8125% 6M SOFR+1.7% 5YLPR-5BP~20BP | 3,712,999,490.93 | 2.8%-3.6% 6M SOFR+1.7% 5YLPR-5BP~20BP |
| Guaranteed loans | 24,500,000.00 | 1YLPR+35BP~50BP | 27,500,000.00 | 4.00% 1YLPR+50BP |
| Accrued interests | 2,783,684.67 | 5,030,309.22 | ||
| Subtotal | 2,633,816,180.65 | 3,745,529,800.15 | ||
| Less: long-term loans due within one year | 863,994,845.76 | 717,771,010.44 | ||
| Total | 1,769,821,334.89 | 3,027,758,789.71 |
40. Lease liabilities
| Item | 2024.12.31 | 2023.12.31 |
| Lease liabilities | 2,905,037,096.33 | 2,414,446,543.18 |
| Less: unrecognized financing costs | 542,952,097.97 | 496,815,621.25 |
| Subtotal | 2,362,084,998.36 | 1,917,630,921.93 |
| Less: lease liabilities due within one year | 346,516,119.42 | 298,082,375.56 |
| Total | 2,015,568,878.94 | 1,619,548,546.37 |
Note: Interest expenses for lease liabilities accrued in 2024 was RMB91.3175 million, which wasrecognized as financial expenses - unrecognized financing costs.
41. Long-term payables
| Item | 2024.12.31 | 2023.12.31 |
| Item | 2024.12.31 | 2023.12.31 |
| Long-term payables | 67,132,880.83 | 65,410,255.77 |
| Special payables | - | - |
| Total | 67,132,880.83 | 65,410,255.77 |
Long-term payables (disclosed by nature)
| Item | 2024.12.31 | 2023.12.31 |
| Guarantee deposit | 30,341,657.95 | 19,038,898.28 |
| Payables for equity transfer | 5,000,000.00 | 5,000,000.00 |
| Sea area usage fee | 29,590,248.50 | 33,018,248.52 |
| Other payables | 16,584,184.04 | 55,462,090.99 |
| Less: Unrecognized financing costs | 6,347,295.45 | 7,760,853.44 |
| Subtotal | 75,168,795.04 | 104,758,384.35 |
| Less: Long-term payables due within one year | 8,035,914.21 | 39,348,128.58 |
| Total | 67,132,880.83 | 65,410,255.77 |
42. Long-term employee benefits payable
| Item | 2024.12.31 | 2023.12.31 |
| Net liabilities of defined benefit plans | - | - |
| Termination benefits | - | - |
| Long-term profit sharing plans | 677,373,020.80 | 483,651,182.01 |
| Subtotal | 677,373,020.80 | 483,651,182.01 |
| Less: Long-term employee benefits payable due within one year | 535,199,508.63 | 370,192,822.28 |
| Total | 142,173,512.17 | 113,458,359.73 |
43. Deferred income
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | Reason for deferral |
| Government grant | 334,812,148.89 | 77,328,811.78 | 62,590,922.63 | 349,550,038.04 | Receipt of government grant |
| Total | 334,812,148.89 | 77,328,811.78 | 62,590,922.63 | 349,550,038.04 | / |
For the government grants recognized as deferred income, refer to Note VIII. Government Grants.
44. Other non-current liabilities
| Item | 2024.12.31 | 2023.12.31 |
| Contingent consideration | 13,000,000.00 | 26,000,000.00 |
| Provision for discount | - | 15,546,408.08 |
| Advance rent | 11,960,906.42 | 12,448,243.65 |
| Total | 24,960,906.42 | 53,994,651.73 |
45. Share capital (Unit: share)
| Item | 2023.12.31 | Movements during the period (+, -) | 2024.12.31 | ||||
| New issuance | Stock dividends | Shares converted from capital reserve | Others | Subtotal | |||
| Total shares | 1,663,749,970.00 | - | - | - | - | - | 1,663,749,970.00 |
46. Capital reserve
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Share premium | 4,742,979,060.15 | 19,127,793.45 | 232,465,957.04 | 4,529,640,896.56 |
| Other capital reserves | 672,562,023.44 | 43,657,814.89 | 94,503,382.02 | 621,716,456.31 |
| Total | 5,415,541,083.59 | 62,785,608.34 | 326,969,339.06 | 5,151,357,352.87 |
Note: (1) The increase in share premium during the period is mainly due to the difference between the
amount received or paid in the transactions with minority shareholders and the net assets of thesubsidiaires at the time of transfer, as well as the share premium transferred upon the completionand sale of the core employee shareholding plan. The decrease in share premium for this period ismainly due to the difference between the proceeds from the sale of shares used for the 2023Employee Shareholding Plan and the repurchase price.
(2) The increase in other capital reserve during the period is the portion of the equity-based share-based compensation expenses attributable to the parant company, which arises from the equity-settled share-based payments under the equity incentive plan implemented during this period(refer to Note XII for more details). The decrease in other capital reserve during the period isdue to the transfer of the originally recognized capital reserve to share premium upon thecompletion and sale of the Core Employee Shareholding Plan.
47. Treasury stock
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Share repurchase | 1,092,402,857.64 | - | 792,321,152.16 | 300,081,705.48 |
| Total | 1,092,402,857.64 | - | 792,321,152.16 | 300,081,705.48 |
Note: The decrease in treasury stock during the period is due to the completion of the sale of shares usedfor the 2023 Employee Shareholding Plan and the Core Employee Shareholding Plan during the currentperiod, and the transfer of corresponding inventory shares.
48. Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet：
| Item | 2023.12.31 | Movements during the period | 2024.12.31 | |
| Amount after tax | Less: previously recognized in OCI amount transferred to profit or loss | |||
| I. Items that will not be reclassified to profit or loss | - | - | - | - |
| II. Items that may be reclassified to profit or loss | 299,040,374.31 | 57,468,771.21 | - | 356,509,145.52 |
| Item | 2023.12.31 | Movements during the period | 2024.12.31 | |
| Amount after tax | Less: previously recognized in OCI amount transferred to profit or loss | |||
| 1. Other comprehensive income that can be converted into profit or loss under the equity method | - | -2,669,044.27 | - | -2,669,044.27 |
| 2. Cash flow hedging reserves | 357,429,884.65 | 241,791,178.43 | - | 599,221,063.08 |
| 3. Translation differences arising from translation of foreign currency financial statements | -58,389,510.34 | -181,653,362.95 | - | -240,042,873.29 |
| Total other comprehensive income | 299,040,374.31 | 57,468,771.21 | - | 356,509,145.52 |
Other comprehensive income attributable to the parent company in the income statement:
| Item | Movements during the period | ||||
| Amount before tax | Less: previously recorded in other comprehensive income and transferred to profit or loss in the current period | Less: Income tax expenses | Less: amount attributable to minority shareholders after tax | Amount attributable to the parent company after tax | |
| I. Items that will not be reclassified to profit or loss | - | - | - | - | - |
| II. Items that may be reclassified to profit or loss | 434,629,215.46 | 357,429,884.65 | 30,660,448.29 | -10,929,888.69 | 57,468,771.21 |
| 1. Other comprehensive income that can be converted into profit or loss under the equity method | -2,669,044.27 | - | - | - | -2,669,044.27 |
| 2. Cash flow hedging reserves | 629,881,511.37 | 357,429,884.65 | 30,660,448.29 | - | 241,791,178.43 |
| 3. Translation differences arising from translation of foreign currency financial statements | -192,583,251.64 | - | - | -10,929,888.69 | -181,653,362.95 |
| Total other comprehensive income | 434,629,215.46 | 357,429,884.65 | 30,660,448.29 | -10,929,888.69 | 57,468,771.21 |
Note: The net amount of other comprehensive income after tax incurred during the period isRMB46,538,882.52. Among them, the net amount of other comprehensive income attributable to theshareholders of the parent company after tax incurred during the period is RMB57,468,771.21; the netamount of other comprehensive income after tax attributable to minority shareholders during the period isRMB-10,929,888.69.
49. Special reserve
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Safety production cost | 398,575.53 | 555,173.73 | 118,344.41 | 835,404.85 |
| Total | 398,575.53 | 555,173.73 | 118,344.41 | 835,404.85 |
Note：The increase in the special reserve during the period is the safety production cost accrued by theCompany based on 1.00% of the actual operating income from general freight services in the prior period,in accordance with relevant regulations.
50. Surplus reserve
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| Statutory surplus reserve | 831,874,985.00 | - | - | 831,874,985.00 |
| Total | 831,874,985.00 | - | - | 831,874,985.00 |
Note：According to the Company's articles of association, if the accumulated amount of the statutoryreserve fund reaches more than 50% of the Company’s registered capital, the Company can cease toappropriate the surplus reserve.
51. General risk provision
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 |
| General risk allowance | 2,599,780.20 | - | 209,958.67 | 2,389,821.53 |
| Total | 2,599,780.20 | - | 209,958.67 | 2,389,821.53 |
52. Retained earnings
| Item | 2024 | 2023 | Appropriation or distribution percentage |
| Opening balance retained earnings before adjustment | 12,526,305,153.20 | 10,528,173,146.82 | -- |
| Total adjustments for opening retained earnings (“+” for increase; “-” for decrease) | - | - | |
| Opening retained earnings after adjustment | 12,526,305,153.20 | 10,528,173,146.82 | |
| Add: Net profits for the year attributable to shareholders of the parent company | 4,503,995,518.39 | 2,741,256,374.98 | -- |
| Less: Appropriation for statutory surplus reserve | - | 1,294,454.50 | |
| Appropriation for general risk provision | -209,958.67 | -2,235,123.80 | |
| Dividends payable on common stock | 831,842,885.00 | 744,065,037.90 | |
| Closing balance of retained earnings | 16,198,667,745.26 | 12,526,305,153.20 |
53. Operating income and operating cost
(1) Operating income and operating cost
| Item | 2024 | 2023 | ||
| Income | Cost | Income | Cost | |
| Principal activities | 114,320,116,180.76 | 101,482,420,447.49 | 115,961,051,970.83 | 106,239,082,310.98 |
| Other operating activities | 280,940,481.53 | 157,157,040.68 | 156,116,772.14 | 41,536,154.70 |
| Total | 114,601,056,662.29 | 101,639,577,488.17 | 116,117,168,742.97 | 106,280,618,465.68 |
(2) Operating income and operating cost by products
| Main product category | 2024 | 2023 | ||
| Income | Cost | Income | Cost | |
| Feed | 91,202,471,546.02 | 82,315,983,104.74 | 95,956,237,795.73 | 87,775,522,325.73 |
| Animal protection products | 845,785,008.00 | 368,047,297.51 | 1,094,616,254.63 | 552,554,966.91 |
| Agricultural products | 18,826,479,018.92 | 15,384,621,981.11 | 15,492,073,854.16 | 14,526,212,163.23 |
| Trading business | 3,435,411,501.16 | 3,413,103,070.42 | 3,400,500,883.54 | 3,384,436,709.49 |
| Others | 290,909,588.19 | 157,822,034.39 | 173,739,954.91 | 41,892,300.32 |
| Total | 114,601,056,662.29 | 101,639,577,488.17 | 116,117,168,742.97 | 106,280,618,465.68 |
(3) Operating income and operating costs by regions
| Main business region | 2024 | 2023 | ||
| Income | Cost | Income | Cost | |
| South China | 67,393,687,661.28 | 60,465,150,039.27 | 69,265,386,101.27 | 64,940,181,106.91 |
| East China | 16,343,599,813.21 | 15,343,642,240.56 | 16,173,847,857.34 | 15,315,359,092.57 |
| North China | 27,435,014,704.38 | 26,087,969,176.03 | 32,361,476,949.29 | 31,352,223,665.40 |
| Central China | 30,865,136,138.53 | 28,851,852,669.77 | 32,394,634,731.85 | 31,359,923,988.17 |
| Overseas | 14,339,378,668.54 | 12,420,785,985.76 | 10,935,313,584.80 | 9,661,321,418.15 |
| Consolidation elimination | -41,775,760,323.65 | -41,529,822,623.22 | -45,013,490,481.58 | -46,348,390,805.52 |
| Total | 114,601,056,662.29 | 101,639,577,488.17 | 116,117,168,742.97 | 106,280,618,465.68 |
(4) Operating income and operating costs by the time of goods transfer
| Item | 2024 | |||||
| Sales of goods | Others | Total | ||||
| Income | Cost | Income | Cost | Income | Cost | |
| Item | 2024 | |||||
| Sales of goods | Others | Total | ||||
| Income | Cost | Income | Cost | Income | Cost | |
| Principal activities | 114,310,147,074.10 | 101,481,755,453.78 | 9,969,106.66 | 664,993.71 | 114,320,116,180.76 | 101,482,420,447.49 |
| Including: Revenue recognized at a point in time | 114,310,147,074.10 | 101,481,755,453.78 | - | - | 114,310,147,074.10 | 101,481,755,453.78 |
| Revenue recognized over time | - | - | 9,969,106.66 | 664,993.71 | 9,969,106.66 | 664,993.71 |
| Operating income from other operating activities | - | - | 280,940,481.53 | 157,157,040.68 | 280,940,481.53 | 157,157,040.68 |
| Including: Revenue recognized at a point in time | - | - | 251,562,879.80 | 127,959,100.69 | 251,562,879.80 | 127,959,100.69 |
| Revenue recognized over time | - | - | - | - | - | - |
| Rental income | - | - | 29,377,601.73 | 29,197,939.99 | 29,377,601.73 | 29,197,939.99 |
| Total | 114,310,147,074.10 | 101,481,755,453.78 | 290,909,588.19 | 157,822,034.39 | 114,601,056,662.29 | 101,639,577,488.17 |
54. Taxes and surcharges
| Item | 2024 | 2023 |
| Urban maintenance and construction tax | 6,657,361.68 | 5,041,886.30 |
| Educational surcharge and Local educational surcharge | 5,042,241.47 | 3,972,223.23 |
| Stamp duty | 60,655,604.07 | 61,678,078.11 |
| Property tax | 53,050,571.63 | 44,872,674.00 |
| Land usage tax | 18,054,457.94 | 17,787,104.55 |
| Environmental protection tax | 1,812,152.08 | 1,760,264.94 |
| Embankment protection cost | 1,153,335.59 | 1,166,422.99 |
| Others | 2,245,275.33 | 2,275,992.14 |
| Total | 148,670,999.79 | 138,554,646.26 |
For the criteria of major taxes and surcharges, please refer to Note IV. Taxation
55. Selling and distribution expenses
| Item | 2024 | 2023 |
| Employee compensation | 1,957,043,350.02 | 1,699,956,672.18 |
| Travel expenses | 308,525,882.34 | 283,108,064.00 |
| Business promotion expenses | 253,291,784.65 | 197,466,970.50 |
| Share incentive expenses | 7,590,597.01 | -72,397.59 |
| Others | 81,899,186.42 | 78,683,703.11 |
| Total | 2,608,350,800.44 | 2,259,143,012.20 |
56. General and administrative expenses
| Item | 2024 | 2023 |
| Employee compensation | 2,061,873,472.37 | 1,623,742,542.38 |
| Travel expenses | 132,128,634.09 | 124,644,915.87 |
| Office expenses | 671,525,320.51 | 546,650,566.56 |
| Training and consulting service charges | 108,908,223.18 | 127,770,405.44 |
| Share incentive expenses | 30,797,210.04 | 14,074,525.92 |
| Others | 182,282,028.30 | 179,856,191.23 |
| Total | 3,187,514,888.49 | 2,616,739,147.40 |
57. Research and development expenses
| Item | 2024 | 2023 |
| Employee compensation | 516,985,822.23 | 467,907,240.17 |
| Materials | 132,958,662.05 | 116,282,096.49 |
| Travel expenses | 49,694,045.24 | 44,886,389.38 |
| Office expenses | 118,220,504.75 | 121,125,274.27 |
| Training and consulting service charges | 25,832,956.18 | 17,734,028.97 |
| Expense on R&D entrusted to external parties | 6,889,081.01 | 12,873,488.50 |
| Share incentive expenses | 5,524,933.68 | 569,143.97 |
| Others | 3,929,310.20 | 3,502,752.28 |
| Total | 860,035,315.34 | 784,880,414.03 |
58. Financial expenses
| Item | 2024 | 2023 |
| Interest expenses | 294,041,457.45 | 434,808,591.01 |
| Less: Interest income | 63,367,108.52 | 64,284,395.34 |
| Add: Net exchange losses/gains | -2,555,066.87 | -1,087,065.87 |
| Add: Unrecognized financing costs | 91,686,721.41 | 77,467,207.57 |
| Add: Bank charges and others | 49,905,340.25 | 65,602,052.88 |
| Total | 369,711,343.72 | 512,506,390.25 |
59. Other income
| Item | 2024 | 2023 |
| Government grants | 114,153,992.08 | 91,934,088.91 |
| Other items related to daily operating activities that should be directly recognized in other income | 19,632,830.87 | 20,704,196.88 |
| Total | 133,786,822.95 | 112,638,285.79 |
Note: For the details of government grants, refer to Note VIII. Government Grants.
60. Investment income
| Item | 2024 | 2023 |
| Income from long-term equity investments under equity method | 39,786,542.41 | 49,850,706.07 |
| Investment income from disposal of long-term equity investments | -1,454,295.98 | 30,991,423.96 |
| Investment income earned during the holding period of held-for-trading financial assets | 38,135,740.72 | 1,169,386.67 |
| Interest income from debt investments | 100,943.40 | 326,833.38 |
| Investment income earned during the holding period of other non-current financial assets | 533,574.61 | 1,503,844.94 |
| Investment income from disposal of other non-current financial assets | -1,296,986.53 | - |
| Investment income from disposal of held-for-trading financial assets | -83,888,333.37 | 162,325,000.74 |
| Gains from derecognition of financial assets measured at amortized cost | -746,985.21 | -521,219.60 |
| Total | -8,829,799.95 | 245,645,976.16 |
61. Gains from changes in fair value ("-" for losses)
| Source of the changes in fair value | 2024 | 2023 |
| Held-for-trading financial assets | 90,027,797.12 | -17,967,748.02 |
| Held-for-trading financial liabilities | -57,151,486.50 | 19,611,136.00 |
| Other non-current financial assets | -7,590,410.83 | -16,802,796.88 |
| Total | 25,285,899.79 | -15,159,408.90 |
62. Credit losses ("-" for losses)
| Item | 2024 | 2023 |
| Loss allowance on accounts receivable | -205,845,928.34 | -169,804,518.53 |
| Loss allowance on loans, factoring and financial guarantees | -58,625,277.18 | -28,046,262.70 |
| Total | -264,471,205.52 | -197,850,781.23 |
63. Impairment losses ("-" for losses)
| Item | 2024 | 2023 |
| Impairment losses on inventories | -24,324,136.92 | -75,228,096.30 |
| Impairment losses on goodwill | -100,275,700.83 | -45,991,113.92 |
| Impairment losses on right-of-use assets | -26,511,912.75 | - |
| Impairment losses on fixed assets | -68,289,748.32 | - |
| Item | 2024 | 2023 |
| Impairment losses on construction in progress | -104,720.00 | - |
| Total | -219,506,218.82 | -121,219,210.22 |
64. Gains from assets disposal ( "-" for losses)
| Item | 2024 | 2023 |
| Gains from disposals of fixed assets | 38,270,580.34 | -5,577,057.30 |
| Gains from disposals of intangible assets | 17,111,589.79 | 197,180.00 |
| Gains from disposals of right-of-use assets | -1,837,851.84 | 8,394,760.98 |
| Total | 53,544,318.29 | 3,014,883.68 |
65. Non-operating income
| Item | 2024 | 2023 | Amount included in non-recurring gains or losses for the current period |
| Gains on disposal of non-current assets resulted from damage or obsolescence | 137,260.73 | 7,682.89 | 137,260.73 |
| Insurance compensation | 21,327,018.65 | 28,058,404.73 | 21,327,018.65 |
| Debt repayment income | 12,773,614.72 | 8,093,105.72 | 12,773,614.72 |
| Default penalty | 24,195,653.73 | 8,239,912.17 | 24,195,653.73 |
| Compensation | - | 11,066,339.57 | - |
| Others | 10,434,262.71 | 9,902,368.73 | 10,434,262.71 |
| Total | 68,867,810.54 | 65,367,813.81 | 68,867,810.54 |
66. Non-operating expenses
| Item | 2024 | 2023 | Amount included in non-recurring gains or losses for the current year |
| Loss on disposal of non-current assets resulted from damage or obsolescence | 110,394,973.29 | 25,009,313.47 | 110,394,973.29 |
| Donations | 23,942,640.85 | 17,918,740.52 | 23,942,640.85 |
| Loss in damage and scrap of inventory | 5,179,667.14 | 2,946,296.82 | 5,179,667.14 |
| Default penalty | 6,652,220.59 | 12,955,120.28 | 6,652,220.59 |
| Fines and penalty | 4,115,547.17 | 4,228,645.49 | 4,115,547.17 |
| Others | 31,905,827.81 | 35,953,465.76 | 31,905,827.81 |
| Total | 182,190,876.85 | 99,011,582.34 | 182,190,876.85 |
67. Income tax expenses
(1) Details of income tax expenses
| Item | 2024 | 2023 |
| Current income tax expense calculated based on tax law and related regulations | 788,440,542.96 | 659,721,751.81 |
| Item | 2024 | 2023 |
| Deferred income tax expenses | -70,853,564.46 | -13,084,732.13 |
| Total | 717,586,978.50 | 646,637,019.68 |
(2) Reconciliation between income tax expenses and accounting profit is as follow:
| Item | 2024 | 2023 |
| Profit before income tax | 5,393,682,576.77 | 3,518,152,643.90 |
| Income tax expenses calculated based on applicable tax rate | 809,052,386.52 | 527,722,896.59 |
| Impact of different tax rates applied by subsidiaries | 414,897,218.63 | 507,543,812.39 |
| Adjustment of income tax for prior period | 11,155,051.18 | -7,511,208.89 |
| Impact of non-taxable income | -697,686,731.27 | -287,357,033.54 |
| Impact of non-deductible costs, expenses and losses | 86,677,764.84 | 28,452,091.81 |
| Impact of the opening balance of deferred tax due to changes in tax rate | 390,969.78 | 2,126,544.94 |
| Impact of utilizing the deductible temporary differences or deductible losses for which no deferred tax asset was previously recognized | -6,692,431.85 | -100,672,357.86 |
| Impact of deductible temporary differences or deductible losses for which no deferred tax asset was recognized during the period | 159,739,601.09 | 38,124,517.42 |
| Tax impact of the super deduction for research and development expenses (to be filled in with “-“) | -59,946,850.42 | -61,792,243.18 |
| Income tax expenses | 717,586,978.50 | 646,637,019.68 |
68. Notes to cash flow statement
(1) Cash received from other operating activities
| Item | 2024 | 2023 |
| Operating receivables | 1,103,774,455.61 | 1,102,004,570.92 |
| Fiscal subsidies | 133,669,192.91 | 129,565,336.22 |
| Interest income from deposits | 60,753,434.04 | 71,860,766.32 |
| Others | 59,751,180.44 | 61,815,496.94 |
| Total | 1,357,948,263.00 | 1,365,246,170.40 |
(2) Cash paid for other operating activities
| Item | 2024 | 2023 |
| Operating payables | 1,000,257,249.33 | 956,025,271.35 |
| Other expenses | 1,625,673,876.97 | 1,577,575,961.07 |
| Total | 2,625,931,126.30 | 2,533,601,232.42 |
(3) Cash received from other investing activities
| Item | 2024 | 2023 |
| Recovery of security deposits related to long-term assets | 22,888,411.53 | 50,019,465.23 |
| Total | 22,888,411.53 | 50,019,465.23 |
(4) Cash paid for other investing activities
| Item | 2024 | 2023 |
| Deposit of acquisitions of long-term assets, notes, letters of credit, etc. | 62,604,501.99 | 23,453,842.66 |
| Total | 62,604,501.99 | 23,453,842.66 |
(5) Cash received for other financing activities
| Item | 2024 | 2023 |
| Deposits related to notes, loans and letters of credit | 53,636,350.66 | 43,770,813.17 |
| Gains from liquidation of employee shareholding plan | 237,708,366.97 | - |
| Bank swap settlement | - | 74,001,114.50 |
| Subscription from shareholding plan | 134,174,910.78 | 240,880,932.60 |
| Total | 425,519,628.41 | 358,652,860.27 |
(6) Cash paid for other financing activities
| Item | 2024 | 2023 |
| Deposit for bills, loans and letters of credit | 60,768,692.62 | 36,447,899.07 |
| Stock repurchase | - | 300,070,255.47 |
| Lease payment | 426,986,597.74 | 356,284,774.41 |
| Bank swap settlement | 30,308,608.00 | 48,176,128.00 |
| Payment for acquisition of non-controlling interest | 64,166,195.67 | 420,563,661.93 |
| Total | 582,230,094.03 | 1,161,542,718.88 |
(7) Movements in liabilities arising from financing activities
| Item | Balance as of 2023.12.31 | Movement during 2024 | |
| Cash inflow | Cash outflow | ||
| Short-term loan | 1,396,136,213.00 | 6,988,876,295.18 | 8,297,188,955.86 |
| Long-term loan | 3,745,529,800.15 | 259,309,732.94 | 1,492,371,448.89 |
| Lease liabilities | 1,917,630,921.93 | - | 426,986,597.74 |
| Total | 7,059,296,935.08 | 7,248,186,028.12 | 10,216,547,002.49 |
(Continued)
| Item | Non-cash movement | Balance as of 2024.12.31 | ||
| Accrued interest | Change in fair value | Others | ||
| Short-term loan | 163,916,334.97 | - | - | 251,739,887.29 |
| Long-term loan | 121,348,096.45 | - | - | 2,633,816,180.65 |
| Lease liabilities | 91,317,484.28 | - | 780,123,189.89 | 2,362,084,998.36 |
| Total | 376,581,915.70 | - | 780,123,189.89 | 5,247,641,066.30 |
Note: The other movement of the lease liabilities mainly consists of new leases entered into during theperiod.
69. Supplementary information on cash flow statement
(1) Supplement to cash flow statement
| Item | 2024 | 2023 |
| 1. Reconciliation of net profit to cash flows from operating activities： | ||
| Net profit | 4,676,095,598.27 | 2,871,515,624.22 |
| Add: Provisions for impairment losses | 219,506,218.82 | 121,219,210.22 |
| Provisions for credit losses | 264,471,205.52 | 197,850,781.23 |
| Depreciation of fixed assets, investment properties and productive biological assets | 1,829,927,864.69 | 1,703,358,712.70 |
| Depreciation of right-of-use assets | 380,961,537.57 | 333,545,066.12 |
| Amortization of intangible assets | 114,057,533.24 | 96,033,660.19 |
| Amortization of long-term deferred expenses | 71,719,039.97 | 61,735,135.82 |
| Losses from disposal of fixed assets, intangible assets, and other long-term assets ("-" for gains) | -53,544,318.29 | -3,014,883.68 |
| Losses on scrapping of fixed assets ("-" for gains) | 102,588,018.88 | 25,001,630.58 |
| Losses from changes in fair value ("-" for gains) | -25,285,899.79 | 15,159,408.90 |
| Financial expenses ("-" for income) | 389,102,974.87 | 520,191,951.07 |
| Losses arising from investment ("-" for gains) | 8,829,799.95 | -245,645,976.16 |
| Decrease in deferred tax assets ("-" for increase) | -61,317,755.75 | 306,745,783.71 |
| Increase in deferred tax liabilities ("-" for decrease) | -36,289,314.74 | -282,612,682.31 |
| Decrease in inventories ("-" for increase) | -1,088,404,522.14 | 3,219,695,285.97 |
| Decrease in operating receivables ("-" for increase) | 116,078,238.81 | 403,337,820.29 |
| Increase in operating payables ("-" for decrease) | 1,026,067,571.60 | 3,301,925,234.56 |
| Expenses of equity incentive | 46,516,865.10 | 14,515,002.80 |
| Others | 15,174,718.47 | 37,817,933.31 |
| Net cash flows from operating activities | 7,996,255,375.05 | 12,698,374,699.54 |
| 2. Material investing and financing activities not requiring the use of cash: | ||
| Conversion of debt into capital | - | - |
| Convertible bonds due within one year | - | - |
| New right-of-use assets in the current period | - | - |
| 3. Change in cash and cash equivalents： | ||
| Cash at the end of the period | 3,326,944,745.48 | 5,367,248,673.44 |
| Less: Cash at the beginning of the period | 5,367,248,673.44 | 2,122,149,250.34 |
| Add: Cash equivalents at the end of the period | - | - |
| Less: Cash equivalents at the beginning of the period | - | - |
| Net increase/decrease in cash and cash equivalents | -2,040,303,927.96 | 3,245,099,423.10 |
(2) Net cash flows from acquisition of subsidiaries during the year
| Item | 2024 |
| Item | 2024 |
| Cash or cash equivalents paid during the current period for business combinations occurred during the current period | - |
| Less: Cash and cash equivalents held by subsidiaries at the acquisition date | - |
| Add: Cash or cash equivalents paid during the current period for business combinations occurred in the prior periods | 6,081,935.84 |
| Including: Jiangxi Jiabo Biological Engineering Co., LTD | 6,000,000.00 |
| Hengyang Yunyi Biological Technology Co., LTD | 81,935.84 |
| Net cash outflows for acquisition of subsidiaries | 6,081,935.84 |
(3) Net cash flows from disposal of subsidiaries during the period
| Item | 2024 |
| Cash or cash equivalents received by the disposed subsidiary during the current period | 78,392,829.77 |
| including：Liaocheng Daxin Feed Co., LTD | 39,420,193.06 |
| Yantai Zhi Zhu Ren Pig Farm Feed Co., LTD | 38,972,636.71 |
| Foshan Hai Da Hang Biao Feed Co., LTD | - |
| Less: Cash and cash equivalents held by the Company during the period of loss of control | 20,118,769.97 |
| including：Liaocheng Daxin Feed Co., LTD | 9,828,596.77 |
| Yantai Zhi Zhu Ren Pig Farm Feed Co., LTD | 10,056,275.43 |
| Foshan Hai Da Hang Biao Feed Co., LTD | 233,897.77 |
| Add: Cash or cash equivalents received during the current period from disposal of subsidiaries in prior periods | - |
| Net cash inflows for disposal of subsidiaries | 58,274,059.80 |
(4) Details of cash and cash equivalents
| Item | 2024.12.31 | 2023.12.31 |
| 1.Cash | 3,326,944,745.48 | 5,367,248,673.44 |
| Including: Cash on hand | 187,338.98 | 178,407.26 |
| Digital currency | - | - |
| Bank deposits available on demand | 2,895,639,994.35 | 5,114,839,576.53 |
| Other monetary funds available on demand | 431,117,412.15 | 252,230,689.65 |
| Cash at central bank available on demand | - | - |
| Amounts due from banks | - | - |
| Loans to banks | - | - |
| 2. Cash equivalents | - | - |
| Including: Bond investments with a maturity of 3 months or less | - | - |
| 3. Cash and cash equivalents at the end of the period | 3,326,944,745.48 | 5,367,248,673.44 |
| Including: Restricted cash and cash equivalents held by the Company or subsidiaries of the Group | - | - |
70. Monetary items in foreign currencies
(1) Monetary Items in foreign currencies
| Item | Balance in foreign currency 2024.12.31 | Exchange rate | Balance translated to RMB 2024.12.31 |
| Cash at bank and on hand | —— | —— | 947,426,710.01 |
| Including: EGP | 330,100,622.45 | 0.141393 | 46,673,786.67 |
| VND | 1,202,022,199,173.00 | 0.000282 | 339,047,140.52 |
| USD | 64,743,201.88 | 7.188400 | 465,400,032.40 |
| IDR | 169,297,629,563.87 | 0.000451 | 76,382,681.03 |
| BDT | 76,700,219.66 | 0.059530 | 4,565,964.07 |
| MYR | 3,015,496.99 | 1.619905 | 4,884,819.85 |
| INR | 124,594,549.83 | 0.084037 | 10,470,553.75 |
| KZT | 125,334.36 | 0.013817 | 1,731.72 |
| Notes receivable | —— | —— | 5,892,083.34 |
| Including: INR | 70,112,955.70 | 0.084037 | 5,892,083.34 |
| Accounts receivable | —— | —— | 1,290,971,593.90 |
| Including: EGP | 228,302,229.01 | 0.141393 | 32,280,246.71 |
| VND | 2,272,091,262,037.00 | 0.000282 | 640,875,057.01 |
| USD | 63,168,092.79 | 7.188400 | 454,077,518.21 |
| IDR | 312,145,305,002.00 | 0.000451 | 140,831,831.68 |
| MYR | 6,515,275.24 | 1.619905 | 10,554,129.53 |
| INR | 146,992,502.25 | 0.084037 | 12,352,810.76 |
| Other receivables | —— | —— | 145,250,358.57 |
| Including: EGP | 4,587,195.18 | 0.141393 | 648,595.48 |
| VND | 146,546,126,726.00 | 0.000282 | 41,335,380.71 |
| USD | 14,245,749.30 | 7.188400 | 102,404,144.29 |
| IDR | 380,558,719.00 | 0.000451 | 171,698.19 |
| BDT | 5,134,718.03 | 0.059530 | 305,669.76 |
| MYR | 37,519.58 | 1.619905 | 60,778.17 |
| INR | 3,856,538.47 | 0.084037 | 324,091.97 |
| Long-term receivables | —— | —— | 6,657,925.40 |
| Including: EGP | 5,736,081.83 | 0.141393 | 811,039.55 |
| VND | 5,271,613,400.00 | 0.000282 | 1,486,932.15 |
| USD | 18,114.59 | 7.188400 | 130,214.92 |
| IDR | 3,761,838,000.00 | 0.000451 | 1,697,243.32 |
| BDT | 8,640,000.00 | 0.059530 | 514,339.20 |
| MYR | 20,200.00 | 1.619905 | 32,722.09 |
| INR | 23,625,711.00 | 0.084037 | 1,985,434.17 |
| Short-term loans | —— | —— | 251,739,887.24 |
| Including: VND | 707,567,159,879.00 | 0.000282 | 199,579,194.52 |
| INR | 620,687,136.76 | 0.084037 | 52,160,692.72 |
| Accounts payable | —— | —— | 682,094,795.84 |
| Including: EGP | 87,954,685.75 | 0.141393 | 12,436,142.08 |
| Item | Balance in foreign currency 2024.12.31 | Exchange rate | Balance translated to RMB 2024.12.31 |
| VND | 1,026,462,686,017.00 | 0.000282 | 289,528,129.19 |
| USD | 32,748,677.57 | 7.188400 | 235,410,593.83 |
| IDR | 244,642,205,277.00 | 0.000451 | 110,376,191.23 |
| BDT | 359,305,138.79 | 0.059530 | 21,389,434.91 |
| MYR | 526,491.92 | 1.619905 | 852,867.10 |
| INR | 144,001,281.43 | 0.084037 | 12,101,437.50 |
| Employee benefits payable | —— | —— | 159,248,031.46 |
| Including: EGP | 9,290,057.85 | 0.141393 | 1,313,545.47 |
| VND | 352,167,772,686.00 | 0.000282 | 99,333,836.27 |
| USD | 6,396,512.81 | 7.188400 | 45,980,692.68 |
| IDR | 13,514,563,971.00 | 0.000451 | 6,097,419.27 |
| BDT | 8,886,502.24 | 0.059530 | 529,013.48 |
| MYR | 581,089.04 | 1.619905 | 941,309.27 |
| INR | 60,118,927.00 | 0.084037 | 5,052,215.02 |
| Taxes payable | —— | —— | 94,992,084.72 |
| Including: EGP | 72,740,426.75 | 0.141393 | 10,284,958.37 |
| VND | 235,970,807,486.00 | 0.000282 | 66,558,860.22 |
| USD | 1,306,034.35 | 7.188400 | 9,388,297.32 |
| IDR | 18,122,884,927.00 | 0.000451 | 8,176,573.66 |
| BDT | 2,169,496.77 | 0.059530 | 129,150.14 |
| MYR | 219,587.76 | 1.619905 | 355,711.40 |
| INR | 1,172,502.50 | 0.084037 | 98,533.61 |
| Other payables | —— | —— | 11,675,721.23 |
| Including: EGP | 495,599.50 | 0.141393 | 70,074.10 |
| VND | 32,610,671,719.00 | 0.000282 | 9,198,295.17 |
| USD | 72,588.62 | 7.188400 | 521,796.04 |
| IDR | 2,274,793,082.00 | 0.000451 | 1,026,327.39 |
| BDT | 918,520.13 | 0.059530 | 54,679.50 |
| MYR | 37,546.59 | 1.619905 | 60,821.92 |
| INR | 8,849,994.63 | 0.084037 | 743,727.11 |
| Non-current liabilities due within one year | —— | —— | 112,649,761.06 |
| Including: VND | 161,980,990,514.00 | 0.000282 | 45,688,999.51 |
| USD | 6,118,875.25 | 7.188400 | 43,984,922.85 |
| IDR | 50,924,567,926.00 | 0.000451 | 22,975,838.70 |
| Long-term loans | —— | —— | 82,511,229.77 |
| Including: VND | 292,526,666,668.00 | 0.000282 | 82,511,229.77 |
(2) Overseas operating entities
| Name | Functional currency | Principal place of business | Basis for selecting the functional currency |
| KINGHILL HOLDINGS PTE.LTD. | USD | Singapore | Main circulating currency |
| KINGHILL PTE.LTD. | USD | Singapore | Main circulating currency |
| Haid Egypt Co.,Ltd | EGP | Egypt | Main circulating currency |
| Haid Egypt Aquatic Co.,Ltd | EGP | Egypt | Main circulating currency |
| HAIDA AGRICULTURAL AND TECHNOLOGY NIGERIA LIMITED | NGN | Nigeria | Main circulating currency |
| KINGHILL RESOURCES PTE.LTD. | USD | Singapore | Main circulating currency |
| VINH LONG HAILIANKE BIOTECHNOLOGY CO., LTD | VND | Vietnam | Main circulating currency |
| KINGHILL AGRI PTE.LTD. | USD | Singapore | Main circulating currency |
| PT.HAILIANK TECHNOLOGY INDONESIA | IDR | Indonesia | Main circulating currency |
| PT.HAIDA AGRICULTURE INDONESIA | IDR | Indonesia | Main circulating currency |
| PT.HAIDA SURABAYA TRADING | IDR | Indonesia | Main circulating currency |
| PT HISENOR TECHNOLOGY INDONESIA | IDR | Indonesia | Main circulating currency |
| HAID FEED BANGLADESH LIMITED | BDT | Bangladesh | Main circulating currency |
| PT HAIDA BIOTECHNOLOGY INDONESIA | IDR | Indonesia | Main circulating currency |
| Dachuan Biotechnology Co., Ltd. | BDT | Bangladesh | Main circulating currency |
| PT HISENOR GENETICS INDONESIA | IDR | Indonesia | Main circulating currency |
| Hisenor Aquatic Seed Industry Technology Pte.Ltd. | USD | Singapore | Main circulating currency |
| KINGHILL INVESTMENT (SINGAPORE) PTE.LTD. | USD | Singapore | Main circulating currency |
| KINGHILL INTERNATIONAL (SINGAPORE) PTE.LTD. | USD | Singapore | Main circulating currency |
| HAID INTERNATIONAL (SINGAPORE) PTE. LTD. | USD | Singapore | Main circulating currency |
| HAID BIOTECHNOLOGY INDUSTRY (SINGAPORE) PTE. LTD. | USD | Singapore | Main circulating currency |
| Haid International Group Limited | USD | Hong Kong | Main circulating currency |
| China Haida Feed Group(HK)Limited | USD | Hong Kong | Main circulating currency |
| Rickworth Investments Limited | USD | Hong Kong | Main circulating currency |
| Hong Kong Longreat Trading Co.,Limited | USD | Hong Kong | Main circulating currency |
| HAID FEED COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| DONG NAI HAID FARM COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| Name | Functional currency | Principal place of business | Basis for selecting the functional currency |
| PANASIA TRADING RESOURCES LIMITED | USD | Hong Kong | Main circulating currency |
| SHENG LONG INTERNATIONAL LTD. | USD | Hong Kong | Main circulating currency |
| SHENG LONG BIO - TECH INTERNATIONAL CO., LTD - NINH THUAN BRANCH | VND | Vietnam | Main circulating currency |
| SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., LTD | VND | Vietnam | Main circulating currency |
| LONG SHENG INTERNATIONAL CO.,LTD | VND | Vietnam | Main circulating currency |
| Hisenor International Limited | USD | Hong Kong | Main circulating currency |
| KEMBANG SUBUR INTERNATIONAL LTD. | MYR | Malaysia | Main circulating currency |
| NAMDUONG VIETNAM AQUATIC HATCHERY CO.,LTD. | VND | Vietnam | Main circulating currency |
| SHENG LONG BIO TECH(M)SDN.BHD. | MYR | Malaysia | Main circulating currency |
| SHENG LONG AQUA TECHNOLOGY (M) SDN. BHD. | MYR | Malaysia | Main circulating currency |
| THANG LONG(VINH LONG)BIOTECH CO.,LTD | VND | Vietnam | Main circulating currency |
| LANKING PTE.LTD. | USD | Singapore | Main circulating currency |
| Haid Lanking International Trading Inc. | USD | United States of America | Main circulating currency |
| LANKING NEMO(SG) PTE.LTD. | USD | Singapore | Main circulating currency |
| SHENGLONG BIO-TECH(INDIA)PRIVATE LIMITED | INR | India | Main circulating currency |
| LANKING RICKWORTH PTE.LTD. | USD | Singapore | Main circulating currency |
| HAIDMARINO CIA.LTDA. | USD | Ecuador | Main circulating currency |
| Lanking Nano PTE.LTD. | USD | Singapore | Main circulating currency |
| HAI DUONG HAID COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| HAI DAI COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| VINH LONG HAI DAI CO.,LTD | VND | Vietnam | Main circulating currency |
| BINH DINH HAI LONG CO.,LTD | VND | Vietnam | Main circulating currency |
| HISTAR VIETNAM AQUATIC BREEDING COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| BINH PHUOC HAI LONG COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| MEKONG HAI LONG COMPANY LIMITED | VND | Vietnam | Main circulating currency |
| HAID GROUP HAIDING AGRICULTURE AND ANIMAL HUSBANDRY KAZAKHSTAN CO., Ltd. | KZT | Kazakhstan | Main circulating currency |
| Name | Functional currency | Principal place of business | Basis for selecting the functional currency |
| HAID (ECUADOR) FEED CIA.LTDA. | USD | Ecuador | Main circulating currency |
71. Lease
(1) Lessee
| Item | 2024 |
| Short-term lease expenses | 105,081,380.15 |
| Low value lease expenses | 333,975.08 |
| Total | 105,415,355.23 |
(2) Leaser
Operating leaseRental income
| Item | 2024 |
| Rental income | 29,377,601.73 |
| Including: Income related to variable lease payments not included in lease receivables | - |
VI. Research and development expenditure
(1) Research and development expenditure
| Item | 2024 | 2023 | ||
| Expensed | Capitalized | Expensed | Capitalized | |
| Employee compensation | 516,985,822.23 | 36,411,137.69 | 467,907,240.17 | 8,406,666.67 |
| Materials expenses | 132,958,662.05 | 6,476,435.87 | 116,282,096.49 | 638,431.79 |
| Travel expenses | 49,694,045.24 | 2,430,342.63 | 44,886,389.38 | 162,018.07 |
| Office expenses | 118,220,504.75 | 5,058,703.57 | 121,125,274.27 | 2,678,624.89 |
| Training and consulting service fee | 25,832,956.18 | 1,198,259.69 | 17,734,028.97 | 138,917.93 |
| Expense on R&D entrusted to external parties | 6,889,081.01 | - | 12,873,488.50 | - |
| Equity incentive expenses | 5,524,933.68 | 128,442.07 | 569,143.97 | 158,709.25 |
| Other expenses | 3,929,310.20 | 72,840.06 | 3,502,752.28 | 6,018,516.00 |
| Total | 860,035,315.34 | 51,776,161.58 | 784,880,414.03 | 18,201,884.60 |
(2) Development expenditure
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | ||
| Internal development expenditure | Other additions | Recognized as Intangible assets | Recorded in current profit or loss; | |||
| Item | 2023.12.31 | Additions during the period | Decreases during the period | 2024.12.31 | ||
| Internal development expenditure | Other additions | Recognized as Intangible assets | Recorded in current profit or loss; | |||
| Development of animal protection products and healthy breeding model | 1,816,885.35 | 36,305,568.68 | - | 2,738,202.31 | - | 35,384,251.72 |
| Development of breeding techniques for families | 7,929,238.97 | 685,074.94 | - | 8,607,602.94 | - | 6,710.97 |
| Application and development of feed formulation technology | - | 10,448,244.16 | - | - | - | 10,448,244.16 |
| Application and development of feed additives | 20,361,862.08 | 4,337,273.80 | - | 23,955,553.99 | - | 743,581.89 |
| Total | 30,107,986.40 | 51,776,161.58 | - | 35,301,359.24 | - | 46,582,788.74 |
Note: The Group has no significant capitalized research and development projects during the current period.VII. Interests in Other Entities
1. Interests in Subsidiaries
(1). Structure of the Group
In addition to the below subsidiaries, the Company has 375 indirectly controlled subsidiaries, mainly
distributed in major provinces and cities in China, as well as Southeast Asia, Egypt, etc. Their business
scopes include feed production, breeding, etc.
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guangzhou Runchuan Investment Co., Ltd. | 147,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Business combination involving entities under common control | |
| Guangzhou Haiwei Feed Co., Ltd. | 1,170.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Business combination involving entities under common control | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guangzhou Rongchuan Feed Co., Ltd. | 1,310.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | ales | 100.00 | Business combination involving entities under common control | |
| Foshan Haihang Feed Co., Ltd. | 1,000.00 | Foshan, Guangdong | Foshan, Guangdong | Production and sales | 87.50 | Business combination involving entities not under common control | |
| Guangzhou Dachuan Feed Co., Ltd. | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Business combination involving entities under common control | |
| Hubei Haid Feed Co., Ltd. | 2,000.00 | Wuhan,Hubei | Wuhan,Hubei | Production and sales | 100.00 | Business combination involving entities under common control | |
| Guangdong Hinter Biotechnology Group Co., Ltd. | 8,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 97.00 | 3.00 | Establishment |
| Shanxi Haid Agriculture and Animal Husbandry Co., Ltd. | 2,000.00 | Yangling, Shanxi | Yangling, Shanxi | Production and sales | 67.00 | Establishment | |
| Hunan Haid Bio-Feed Co., Ltd. | 1,500.00 | Changde, Hunan | Changde, Hunan | Production and sales | 100.00 | Establishment | |
| Guangzhou Haihe Feed Co., Ltd. | 10,764.24 | Guangzhou, Guangdong | Guangzhou, Guangdong | Sales | 100.00 | Establishment | |
| Foshan Haipu Feed Co., Ltd. | 300.00 | Foshan, Guangdong | Foshan, Guangdong | Sales | 87.50 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Qingyuan Haibei Biotechnology Co., Ltd. | 10,000.00 | Qingyuan, Guangdong | Qingyuan, Guangdong | Production and sales | 100.00 | Establishment | |
| Zhanjiang Haid Feed Co., Ltd. | 1,300.00 | Zhanjiang, Guangdong | Zhanjiang, Guangdong | Production and sales | 100.00 | Establishment | |
| Jiangmen Haid Feed Co., Ltd. | 8,000.00 | Jiangmen, Guangdong | Jiangmen, Guangdong | Production and sales | 100.00 | Establishment | |
| Chengdu Haid Biotechnology Co., Ltd. | 1,300.00 | Xinjin,Sichuan | Xinjin,Sichuan | Production and sales | 100.00 | Establishment | |
| Taizhou Haid Bio-Feed Co., Ltd. | 1,660.00 | Xinghua, Jiangsu | Xinghua, Jiangsu | Production and sales | 100.00 | Establishment | |
| Jingzhou Haid Feed Co., Ltd. | 1,000.00 | Jingzhou, Hubei | Jingzhou, Hubei | Production and sales | 100.00 | Establishment | |
| Dongguan Haid Feed Co., Ltd. | 1,000.00 | Dongguan, Guangdong | Dongguan, Guangdong | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Fujian Haid Feed Co., Ltd. | 1,000.00 | Changtai, Fujian | Changtai, Fujian | Production and sales | 100.00 | Establishment | |
| Zhejiang Haid Feed Co., Ltd. | 1,000.00 | Shaoxing, Zhejiang | Shaoxing, Zhejiang | Production and sales | 100.00 | Establishment | |
| Guangxi Haid Feed Co., Ltd. | 2,000.00 | Qinzhou, Guangxi | Qinzhou, Guangxi | Production and sales | 100.00 | Establishment | |
| Kinghill Holdings Pte.Ltd. | 5,234.01 (USD) | Singapore | Singapore | Investment | 100.00 | Establishment | |
| Jiangxi Haid Feed Co., Ltd. | 7,370.00 | Nanchang, Jiangxi | Nanchang, Jiangxi | Production and sales | 100.00 | Establishment | |
| Guangzhou Haid Feed Co., Ltd. | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Trading | 100.00 | Business combination involving entities not under common control | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Maoming Hailong Feed Co., Ltd. | 1,000.00 | Maoming, Guangdong | Maoming, Guangdong | Production and sales | 100.00 | Establishment | |
| Nanchang Haid Biotechnology Co., Ltd. | 300.00 | Nanchang, Jiangxi | Nanchang, Jiangxi | Production and sales | 100.00 | Establishment | |
| Zhuhai Rongchuan Feed Co., Ltd. | 3,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Foshan Sanshuifanling Feed Co., Ltd. | 200.00 | Foshan, Guangdong | Foshan, Guangdong | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Dalian Haid Rongchuan Trading Co., Ltd. | 5,000.00 | Dalian, Liaoning | Dalian, Liaoning | Trading | 100.00 | Business combination involving entities not under common control | |
| Haid International Group Limited | 3,837.00 (USD) | Hong Kong, China | British Virgin Islands | Trading | 100.00 | Establishment | |
| Changzhou Haid Bio-Feed Co., Ltd. | 2,000.00 | Liyang, Jiangsu | Liyang, Jiangsu | Production and sales | 100.00 | Establishment | |
| Tianjin Haid Feed Co., Ltd. | 15,000.00 | Tianjin | Tianjin | Production and sales | 97.00 | 3.00 | Establishment |
| Jiangmen A&T Xinhui Feed Co., Ltd. | 250.00 | Jiangmen, Guangdong | Jiangmen, Guangdong | Production and sales | 80.00 | Business combination involving entities not under common control | |
| Tianmen Haid Feed Co., Ltd. | 500.00 | Tianmen, Hubei | Tianmen, Hubei | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Zhuhai Hailong Biotechnology Co., Ltd. | 1,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Yangjiang Haid Feed Co., Ltd. | 500.00 | Yangjiang, Guangdong | Yangjiang, Guangdong | Production and sales | 100.00 | Establishment | |
| Guigang Haid Feed Co., Ltd. | 500.00 | Guigang, Guangxi | Guigang, Guangxi | Production and sales | 100.00 | Establishment | |
| Yiyang Haid Feed Co., Ltd. | 1,000.00 | Yiyang, Hunan | Yiyang, Hunan | Production and sales | 99.00 | 1.00 | Establishment |
| Nantong Haid Biotechnology Co., Ltd. | 10,000.00 | Nantong, Jiangsu | Nantong, Jiangsu | Production and sales | 100.00 | Establishment | |
| Yunnan Haid Biotechnology Co., Ltd. | 500.00 | Kunming, Yunnan | Kunming, Yunnan | Production and sales | 100.00 | Establishment | |
| Guangdong Mutai Biotechnology Co., Ltd. | 500.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Zhaoqing Haid Feed Co., Ltd. | 500.00 | Gaoyao, Guangdong | Gaoyao, Guangdong | Production and sales | 100.00 | Establishment | |
| Wuhan Aquaera Biotechnology Co., Ltd. | 500.00 | Ezhou, Hubei | Ezhou, Hubei | Production and sales | 100.00 | Establishment | |
| Shenzhen Longreat Trading Co., Ltd. | 200.00 | Shenzhen, Guangdong | Shenzhen, Guangdong | Trading | 70.00 | Establishment | |
| Lanking Pte.Ltd. | 9,232.16 (USD) | Singapore | Singapore | Trading | 100.00 | Establishment | |
| Hunan Dongting Haid Feed Co., Ltd. | 2,000.00 | Dongting, Hunan | Dongting, Hunan | Production and sales | 100.00 | Establishment | |
| Zhangzhou Haid Feed Co., Ltd. | 2,000.00 | Zhangzhou, Fujian | Zhangzhou, Fujian | Production and sales | 85.00 | Establishment | |
| Anhui Haid Feed Co., Ltd. | 1,000.00 | Chizhou, Anhui | Chizhou, Anhui | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Xiangtan Haid Feed Co., Ltd. | 2,000.00 | Xiangtan, Hunan | Xiangtan, Hunan | Production and sales | 100.00 | Establishment | |
| Guangzhou Changsheng Logistics Co., Ltd. | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Transportation service | 100.00 | Establishment | |
| Guangdong Haid Pet Co.,Ltd.（Note 1） | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Shandong Haiding Agriculture and Animal Husbandry Co., Ltd. | 10,000.00 | Heze, Shandong | Heze, Shandong | Sales | 55.00 | Establishment | |
| Xishui Haid Feed Co., Ltd. | 300.00 | Huanggang, Hubei | Huanggang, Hubei | Production and sales | 100.00 | Establishment | |
| Yancheng Haid Bio-Feed Co., Ltd. | 3,000.00 | Yancheng, Jiangsu | Yancheng, Jiangsu | Production and sales | 100.00 | Establishment | |
| Honghu Haid Feed Co., Ltd. | 700.00 | Honghu, Hubei | Honghu, Hubei | Production and sales | 100.00 | Establishment | |
| Kaifeng Haid Feed Co., Ltd. | 2,000.00 | Kaifeng, Henan | Kaifeng, Henan | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Guangzhou Heshengtang Biotechnology Co., Ltd. | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Guangzhou Heshengtang Veterinary Pharmaceutical Co., Ltd. | 6,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guangdong Haid Livestock Veterinary Research Institute Co., Ltd. | 6,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Research and trading | 100.00 | Business combination involving entities not under common control | |
| Henan Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 1,000.00 | Luoyang, Henan | Luoyang,Henan | Production and sales | 67.00 | Establishment | |
| Suqian Haid Feed Co., Ltd. | 2,000.00 | Siyang, Jiangsu | Siyang, Jiangsu | Production and sales | 100.00 | Establishment | |
| Huaihua Haid Feed Co., Ltd. | 1,300.00 | Huaihua, Hunan | Huaihua, Hunan | Production and sales | 100.00 | Establishment | |
| Guangzhou Meinong Investment Management Co., Ltd. | 787.86 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Guangdong Hairuite Supply Chain Management Co., Ltd. | 1,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Sales | 100.00 | Establishment | |
| Guangzhou Haijian Investment Co., Ltd. | 12,150.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Hunan Innovation Biotechnology Limited | 8,088.00 | Hengyang, Hunan | Hengyang, Hunan | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Sanming Haid Feed Co., Ltd. | 3,500.00 | Sanming, Fujian | Sanming, Fujian | Production and sales | 100.00 | Establishment | |
| Qingyuan Haid Biotechnology Co., Ltd. | 1,000.00 | Qingyuan, Guangdong | Qingyuan, Guangdong | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Xuancheng Haid Biotechnology Co., Ltd. | 500.00 | Xuancheng, Anhui | Xuancheng, Anhui | Production and sales | 100.00 | Establishment | |
| Guangdong Shunde Haid Biotechnology Co., Ltd. | 500.00 | Shunde, Guangdong | Shunde, Guangdong | Sales | 100.00 | Establishment | |
| Jiaxing Haid Yongwang Bio-Feed Co., Ltd. | 1,800.00 | Jiaxing, Zhejiang | Jiaxing, Zhejiang | Production and sales | 80.00 | Business combination involving entities not under common control | |
| Shijiazhuang Weike Biotechnology Co., Ltd. | 1,000.00 | Jinzhou, Hebei | Jinzhou, Hebei | Production and sales | 70.00 | Business combination involving entities not under common control | |
| Chongqing Haid Feed Co., Ltd. | 2,500.00 | Chongqing | Chongqing | Production and sales | 100.00 | Establishment | |
| Shenyang Haid Feed Co., Ltd. | 300.00 | Shenyang, Liaoning | Shenyang, Liaoning | Production and sales | 85.00 | Establishment | |
| Jiangsu Haihe Agriculture and Animal Husbandry Co., Ltd. | 1,000.00 | Xuzhou, Jiangsu | Xuzhou, Jiangsu | Sales | 67.00 | Establishment | |
| Anshan Dachuan Feed Technology Co., Ltd. | 500.00 | Anshan, Liaoning | Anshan, Liaoning | Sales | 100.00 | Establishment | |
| Guangzhou Haiyuan Factoring Co., Ltd. | 15,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Commercial factoring | 100.00 | Establishment | |
| Haid Pet Care Co., Ltd. | 18,000.00 | Weihai, Shandong | Weihai, Shandong | Sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Ganzhou Haid Biotechnology Co., Ltd. | 5,000.00 | Ganzhou, Jiangxi | Ganzhou, Jiangxi | Production and sales | 100.00 | Establishment | |
| Guangzhou Punong Investment Management Co., Ltd. | 460.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Guangzhou Yannong Investment Management Co., Ltd. | 1,975.81 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Liyang Jiu He Feed Co., Ltd. | 880.00 | Liyang, Jiangsu | Liyang, Jiangsu | Production and sales | 80.00 | Business combination involving entities not under common control | |
| Shaoguan Haid Biotechnology Co., Ltd. | 1,500.00 | Shaoguan, Guangdong | Shaoguan, Guangdong | Production and sales | 100.00 | Establishment | |
| Shandong Daxin Group Co., Ltd. | 5,204.00 | Qingdao, Shandong | Qingdao, Shandong | Investment and trading | 71.55 | Business combination involving entities not under common control | |
| Huai’an Hailong Feed Co., Ltd. | 5,000.00 | Huai’an, Jiangsu | Huai’an, Jiangsu | Production and sales | 100.00 | Establishment | |
| Hunan Jinhuilong Technology Co., Ltd. | 10,000.00 | Yueyang, Hunan | Yueyang, Hunan | Investment | 51.00 | Business combination involving entities not under common control | |
| Fuzhou Haid Feed Co., Ltd. | 8,500.00 | Fuzhou, Fujian | Fuzhou, Fujian | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Zhaoqing Gaoyao Haid Biological Technology Co., Ltd. | 8,000.00 | Zhaoqing, Guangdong | Zhaoqing, Guangdong | Production and sales | 100.00 | Establishment | |
| Nanning Haid Biotechnology Co., Ltd. | 12,000.00 | Nanning, Guangxi | Nanning, Guangxi | Production and sales | 100.00 | Establishment | |
| Guangzhou Haiyuan Microfinance Co., Ltd. | 20,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Micro-credit service | 100.00 | Establishment | |
| Jiangmen Rongchuan Feed Co., Ltd. | 18,500.00 | Jiangmen, Guangdong | Jiangmen, Guangdong | Production and sales | 100.00 | Establishment | |
| Chongqing Kaizhou Haid Biotechnology Co., Ltd. | 3,500.00 | Chongqing | Chongqing | Sales | 100.00 | Establishment | |
| Meizhou Haid Biotechnology Co., Ltd. | 9,000.00 | Meizhou, Guangdong | Meizhou, Guangdong | Production and sales | 70.00 | Establishment | |
| Yicheng Haid Biological Technology Co., Ltd. | 4,500.00 | Xiangyang, Hubei | Xiangyang, Hubei | Production and sales | 100.00 | Establishment | |
| Zhuhai Dachuan Biotechnology Co., Ltd. | 4,800.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Hexian Haid Biotechnology Co., Ltd. | 16,000.00 | Ma’anshan, Anhui | Ma’anshan, Anhui | Research and trading | 100.00 | Establishment | |
| Guangzhou Nansha Haid Technology Co., Ltd. | 10,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Establishment | |
| Tianjin Rongchuan Feed Co., Ltd. | 23,170.00 | Tianjin | Tianjin | Production and sales | 70.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Zhanjiang Rongda Feed Co., Ltd. | 4,000.00 | Zhanjiang, Guangdong | Zhanjiang, Guangdong | Sales | 100.00 | Establishment | |
| Huainan Haid Biological Feed Co., Ltd. | 8,400.00 | Huainan, Anhui | Huainan, Anhui | Production and sales | 100.00 | Establishment | |
| Maoming Haid Biological Technology Co., Ltd. | 6,000.00 | Maoming, Guangdong | Maoming, Guangdong | Sales | 100.00 | Establishment | |
| Guangzhou Ronghai Breeding Technology Co., Ltd. | 2,400.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Sichuan Rongchuan Feed Co., Ltd. | 9,000.00 | Meishan, Sichuan | Meishan, Sichuan | Production and sales | 100.00 | Establishment | |
| Yulin Haid Feed Co., Ltd. | 4,500.00 | Yulin, Guangxi | Yulin, Guangxi | Production and sales | 100.00 | Establishment | |
| Sichuan Haile Agriculture and Animal Husbandry Co., Ltd. | 3,000.00 | Chengdu, Sichuan | Chengdu, Sichuan | Investment and sales | 55.00 | Establishment | |
| Guangzhou Xingnong Ecological Agriculture and Animal Husbandry Development Co., Ltd. | 2,900.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Qingyuan Ronghai Food Technology Co., Ltd. | 7,100.00 | Qingyuan, Guangdong | Qingyuan, Guangdong | Production and sales | 96.67 | 3.33 | Business combination involving entities not under common control |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guangzhou Haiyin Financing Guarantee Co., Ltd. | 25,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Financing guarantee | 100.00 | Establishment | |
| Qinzhou Hailong Feed Co., Ltd. | 4,000.00 | Qinzhou, Guangxi | Qinzhou, Guangxi | Production and sales | 100.00 | Establishment | |
| Hainan Haid Biotechnology Co., Ltd. | 6,000.00 | Wenchang, Hainan | Wenchang, Hainan | Production and sales | 100.00 | Establishment | |
| Liuzhou Haid Feed Co., Ltd. | 500.00 | Liuzhou, Guangxi | Liuzhou, Guangxi | Production and sales | 100.00 | Establishment | |
| Jiangsu Haixin Biotechnology Co., Ltd. | 3,000.00 | Huai’an, Jiangsu | Huai’an, Jiangsu | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Gaoan Haid Biotechnology Co., Ltd. | 4,000.00 | Yichun, Jiangxi | Yichun, Jiangxi | Production and sales | 100.00 | Establishment | |
| Shanghai Gaohaid Biotechnology Co., Ltd. | 2,500.00 | Shanggao, Jiangxi | Shanggao, Jiangxi | Production and sales | 100.00 | Establishment | |
| Qingyuan Hailong Biological Technology Co., Ltd. | 13,000.00 | Qingyuan, Guangdong | Qingyuan, Guangdong | Production and sales | 100.00 | Establishment | |
| Guangdong Haid International Trade Co., Ltd. | 10,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Trading | 100.00 | Establishment | |
| Guangzhou Nansha Haid Biotechnology Co., Ltd. | 700.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Establishment | |
| Yancheng Haiwei Biological Technology Co., Ltd. | 6,000.00 | Yancheng, Jiangsu | Yancheng, Jiangsu | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Hainan Haid Aquatic Seed Industry Development Co., Ltd. | 4,500.00 | Wenchang, Hainan | Wenchang, Hainan | Production and sales | 100.00 | Establishment | |
| Wuzhou Haid Biotechnology Co., Ltd. | 2,500.00 | Wuzhou, Guangxi | Wuzhou, Guangxi | Production and sales | 100.00 | Establishment | |
| Zhangzhou Haiheng Feed Co., Ltd. | 500.00 | Zhangzhou, Fujian | Zhangzhou, Fujian | Production and sales | 100.00 | Establishment | |
| Deyang Dachuan Agriculture and Animal Husbandry Technology Co., Ltd. | 4,000.00 | Deyang, Sichuan | Deyang, Sichuan | Production and sales | 100.00 | Establishment | |
| Mianyang Hailong Feed Co., Ltd. | 500.00 | Mianyang, Sichuan | Mianyang, Sichuan | Production and sales | 70.00 | 16.46 | Establishment |
| Meishan Haid Biotechnology Co., Ltd. | 500.00 | Meishan, Sichuan | Meishan, Sichuan | Production and sales | 100.00 | Establishment | |
| Guangzhou Nongzhidao Feed Co., Ltd. | 1,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 60.00 | Establishment | |
| Yingkou Dachuan Feed Technology Co., Ltd. | 1,200.00 | Yingkou, Liaoning | Yingkou, Liaoning | Production and sales | 100.00 | Establishment | |
| Jiesou Haid Feed Co., Ltd. | 1,500.00 | Fuyang, Anhui | Fuyang, Anhui | Production and sales | 100.00 | Establishment | |
| Anlu Haid Feed Co., Ltd. | 2,000.00 | Xiaogan, Hubei | Xiaogan, Hubei | Production and sales | 100.00 | Establishment | |
| Jingzhou Haihe Biological Technology Co., Ltd. | 4,000.00 | Jingzhou, Hubei | Jingzhou, Hubei | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Hainan Zhuangmei Agriculture and Animal Husbandry Co., Ltd. | 4,000.00 | Danzhou, Hainan | Danzhou, Hainan | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Yancheng Runchuan Agricultural Technology Co., Ltd. | 100.00 | Yancheng, Jiangsu | Yancheng, Jiangsu | Production and sales | 100.00 | Establishment | |
| Zigong Hailong Biological Technology Co., Ltd. | 3,000.00 | Zigong, Sichuan | Zigong, Sichuan | Production and sales | 100.00 | Establishment | |
| Jiangxi Jiabo Biological Engineering Co., Ltd. | 8,000.00 | Jiujiang, Jiangxi | Jiujiang, Jiangxi | Production and sales | 60.00 | Business combination involving entities not under common control | |
| Guangxi Rongchuan Feed Co., Ltd. | 500.00 | Nanning, Guangxi | Nanning, Guangxi | Production and sales | 100.00 | Establishment | |
| Dali Haid Biotechnology Co., Ltd. | 4,000.00 | Dali, Yunan | Dali, Yunan | Production and sales | 100.00 | Establishment | |
| Guangzhou Haid Technology Development Co., Ltd. | 1,310.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Establishment | |
| Heshan Haiwei Feed Co., Ltd. | 1,205.00 | Jiangmen, Guangdong | Jiangmen, Guangdong | Production and sales | 100.00 | Establishment | |
| Ganzhou Lianduoli Feed Technology Co., Ltd. | 2,000.00 | Ganzhou, Jiangxi | Ganzhou, Jiangxi | Production and sales | 70.00 | Business combination involving entities not under common control | |
| Maoming Haiwei Feed Co., Ltd. | 1,000.00 | Maoming, Guangdong | Maoming, Guangdong | Production and sales | 70.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Sichuan Hailong Biotechnology Co., Ltd. | 500.00 | Meishan, Sichuan | Meishan, Sichuan | Production and sales | 100.00 | Establishment | |
| Qinzhou Haiwei Feed Co., Ltd. | 3,500.00 | Qinzhou, Guangxi | Qinzhou, Guangxi | Production and sales | 100.00 | Establishment | |
| Yancheng Rongchuan Biotechnology Co., Ltd. | 6,000.00 | Yancheng, Jiangsu | Yancheng, Jiangsu | Production and sales | 100.00 | Establishment | |
| Naning Dachuan Biotechnology Co., Ltd. | 900.00 | Nanning, Guangxi | Nanning, Guangxi | Production and sales | 100.00 | Establishment | |
| Yongzhou Haid Biotechnology Co., Ltd. | 500.00 | Yongzhou, Hunan | Yongzhou, Hunan | Production and sales | 100.00 | Establishment | |
| Guiyang Haid Biotechnology Co., Ltd. | 5,000.00 | Guiyang, Guizhou | Guiyang, Guizhou | Production and sales | 100.00 | Establishment | |
| Wuwei Haimu Biotechnology Co., Ltd. | 2,500.00 | Wuwei, Gansu | Wuwei, Gansu | Production and sales | 100.00 | Establishment | |
| Guilin Haid Biotechnology Co., Ltd. | 500.00 | Guilin, Guangxi | Guilin, Guangxi | Production and sales | 100.00 | Establishment | |
| Inner Mongolia Haid Feed Co., Ltd. | 2,500.00 | Bayannur, Inner Mongolia | Bayannur, Inner Mongolia | Production and sales | 100.00 | Establishment | |
| Guiyang Dachuan Biotechnology Co., Ltd. | 500.00 | Guiyang, Guizhou | Guiyang, Guizhou | Production and sales | 100.00 | Establishment | |
| Xingtai Haid Biotechnology Co., Ltd. | 3,000.00 | Xingtai, Hebei | Xingtai, Hebei | Production and sales | 100.00 | Establishment | |
| Guangdong Haifulai Biotechnology Co., Ltd. | 5,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Research and Sales | 100.00 | Establishment | |
| Liupanshui Haid Biotechnology Co., Ltd. | 4,000.00 | Liupanshui, Guizhou | Liupanshui, Guizhou | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guangdong Haiqi Investment Co., Ltd. | 3,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Investment | 100.00 | Establishment | |
| Nanning Haililai Biotechnology Co., Ltd. | 1,000.00 | Nanning, Guangxi | Nanning, Guangxi | Production and sales | 70.00 | Establishment | |
| Shaoyang Haid Feed Co., Ltd. | 1,000.00 | Shaoyang, Hunan | Shaoyang, Hunan | Production and sales | 100.00 | Establishment | |
| Foshan Debao Group Co., Ltd.（Note 2） | 8,362.52 | Foshan, Guangdong | Foshan, Guangdong | Production and sales | 100.00 | Business combination involving entities not under common control | |
| Shaoguan Dachuan Biotechnology Co., Ltd. | 500.00 | Shaoguan, Guangdong | Shaoguan, Guangdong | Production and sales | 100.00 | Establishment | |
| Liaoning Haid Biotechnology Co., Ltd. | 2,000.00 | Shenyang, Liaoning | Shenyang, Liaoning | Production and sales | 100.00 | Establishment | |
| Guizhou Hailongwang Biotechnology Co., Ltd. | 50.00 | Qiannan, Guizhou | Qiannan, Guizhou | Sales | 100.00 | Establishment | |
| Guangdong Huashite Testing Technology Co., Ltd. | 200.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Research and sales | 100.00 | Establishment | |
| Tianjin Haid Biotechnology Co., Ltd. | 1,000.00 | Tianjin | Tianjin | Production and sales | 100.00 | Establishment | |
| Dali Dachuan Biotechnology Co., Ltd. | 2,500.00 | Dali, Yunnan | Dali, Yunnan | Production and sales | 100.00 | Establishment | |
| Yunnan Hairui Biotechnology Co., Ltd. | 3,500.00 | Qujing, Yunnan | Qujing, Yunnan | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Henan Haidajiuzhou Biotechnology Co., Ltd. | 1,000.00 | Zhumadian, Henan | Zhumadian, Henan | Production and sales | 75.00 | Establishment | |
| Enshi Haida Biotechnology Co., Ltd. | 5,000.00 | Enshi, Hubei | Enshi, Hubei | Production and sales | 100.00 | Establishment | |
| Ningguo Haid Biotechnology Co., Ltd. | 3,000.00 | Xuancheng, Anhui | Xuancheng, Anhui | Production and sales | 65.00 | Establishment | |
| Chaozhou Haid Biotechnology Co., Ltd. | 1,000.00 | Chaozhou, Guangdong | Chaozhou, Guangdong | Sales | 100.00 | Establishment | |
| Haixin (Tianjin) Biotechnology Co., Ltd. | 3,000.00 | Tianjin | Tianjin | Production and sales | 100.00 | Establishment | |
| Nanshan Haid Biotechnology (Jinhu) Co., Ltd. | 5,000.00 | Huai’an, Jiangsu | Huai’an, Jiangsu | Production and sales | 70.00 | Establishment | |
| Tongliao Haid Biotechnology Co., Ltd. | 1,000.00 | Tongliao, Inner Mongolia | Tongliao, Inner Mongolia | Production and sales | 100.00 | Establishment | |
| Guangdong Haizhihui Breeding Technology Service Co., Ltd. | 10,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Research and sales | 53.00 | 12.75 | Establishment |
| Jiangsu Haiwei Feed Co., Ltd. | 6,500.00 | Huai’an, Jiangsu | Huai’an, Jiangsu | Production and sales | 100.00 | Establishment | |
| Hubei Haid Seed Technology Co., Ltd. | 3,000.00 | Ezhou, Hubei | Ezhou, Hubei | Research and sales | 100.00 | Establishment | |
| Qianjiang Hailong Biotechnology Co., Ltd. | 7,000.00 | Qianjiang, Hubei | Qianjiang, Hubei | Production and sales | 100.00 | Establishment | |
| Pingjiang Bairuilai Biotechnology Co., Ltd. | 1,500.00 | Yueyang, Hunan | Yueyang, Hunan | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Guiyang Haiyue Feed Technology Co., Ltd. | 1,000.00 | Guiyang, Guizhou | Guiyang, Guizhou | Production and sales | 100.00 | Establishment | |
| Inner Mongolia Haishan Feed Co., Ltd. | 300.00 | Hohhot, Inner Mongolia | Hohhot, Inner Mongolia | Production and sales | 60.00 | Establishment | |
| Huizhou Haid Biotechnology Co., Ltd. | 880.00 | Huizhou, Guangdong | Huizhou, Guangdong | Production and sales | 100.00 | Other method | |
| Guangzhou Hualaike Testing Technology Co., Ltd. | 200.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Production and sales | 100.00 | Establishment | |
| Huaibei Haid Bio-Feed Co., Ltd. | 1,000.00 | Huaibei, Anhui | Huaibei, Anhui | Production and sales | 100.00 | Establishment | |
| Guigang Hailong Biotechnology Co., Ltd. | 500.00 | Guigang, Guangxi | Guigang, Guangxi | Production and sales | 100.00 | Establishment | |
| Xinyi Fengmu Trading Co., Ltd | 500.00 | Xuzhou, Jiangsu | Xuzhou, Jiangsu | Trading | 100.00 | Establishment | |
| Guizhou Haid Feed Co., Ltd. | 500.00 | Zunyi, Guizhou | Zunyi, Guizhou | Production and sales | 100.00 | Establishment | |
| Pizhou Haid Ruminant Feed Co., Ltd | 500.00 | Xuzhou, Jiangsu | Xuzhou, Jiangsu | Production and sales | 100.00 | Establishment | |
| Nanping Haid Biotechnology Co., Ltd. | 1,800.00 | Nanping, Fujian | Nanping, Fujian | Production and sales | 80.00 | Establishment | |
| Xishui Chenke Feed Technology Co., Ltd | 5,200.00 | Xishui, Hubei | Xishui, Hubei | Production and sales | 65.00 | Business combination involving entities not under common control | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Quzhou Haid Huilong Bio-Feed Co., Ltd | 1,000.00 | Quzhou, Zhejiang | Quzhou, Zhejiang | Production and sales | 100.00 | Establishment | |
| Lanking Pte.Ltd..LTDA. | 5,920.00 (USD) | Ecuador | Ecuador | Production and sales | 95.00 | 5.00 | Establishment |
| Xinyu Haihe Biotechnology Co., Ltd | 2,000.00 | Xinyu, Jiangxi | Xinyu, Jiangxi | Production and sales | 100.00 | Establishment | |
| Zhuhai Haiyue Agriculture and Animal Husbandry Co., Ltd. | 2,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Qingyuan Haifulai Biotechnology Co., Ltd | 3,000.00 | Qingyuan, Guangdong | Qingyuan, Guangdong | Production and sales | 100.00 | Establishment | |
| Guangdong Konong Culture Co., Ltd | 500.00 | Guangzhou, Guangdong | Guangzhou, Guangdong | Others | 100.00 | Establishment | |
| Fuzhou Hailong Biotechnology Co., Ltd. | 3,000.00 | Fuzhou, Fujian | Fuzhou, Fujian | Production and sales | 100.00 | Establishment | |
| Guangzhou Haiying Commercial Management Co.Ltd | 500.00 | Guangzhou, Guangdong | Guangzhou,Guangdong | Others | 100.00 | Establishment | |
| Lishui Haida Huatong Biotechnology Co.Ltd | 3,000.00 | Lishui, Zhejiang | Lishui, Zhejiang | Production and sales | 60.00 | Establishment | |
| Ningdu Haida Biotechnology Co.Ltd | 1,200.00 | Ganzhou, Jiangxi | Ganzhou, Jiangxi | Production and sales | 60.00 | Establishment | |
| Huai’an Dachuan Feed Co.Ltd | 2,000.00 | Huai’an, Jiangsu | Huai’an, Jiangsu | Production and sales | 100.00 | Establishment | |
| Subsidiary | Registered capital (RMB ten thousand) | Principal place of business | Place of registration | Business nature | Shareholding % | Acquisition method | |
| Direct | Indirect | ||||||
| Zhuhai Haibei Supply Chain Management Co.Ltd | 500.00 | Zhuhai, Guangdong | Zhuhai, Guangdong | Production and sales | 100.00 | Establishment | |
| Shenyang Shengkang Biotechnology Service Co.Ltd | 50.00 | Shenyang, Liaoning | Shenyang, Liaoning | Production and sales | 51.00 | Establishment | |
Note:
Note 1: Guangzhou Danong Enterprise Management Co., Ltd., a subsidiary of the Company, changed itsname to Guangdong Haid Pet Co., Ltd. in November 2024.Note 2: Jiangmen Debao Group Co., Ltd., a subsidiary of the Company, changed its name to Foshan DebaoGroup Co., Ltd. in June 2024.
(2). Significant Non-Wholly-Owned Subsidiaries
| Subsidiary | Non-controlling interests (%) | Profit or loss for the current period attributable to non-controlling interests | Dividends declared for non-controlling interests for the current period | Closing balance of non-controlling interests |
| PANASIA TRADING RESOURCES LIMITED | 20.00 | 66,082,770.99 | 30,418,771.34 | 198,241,429.25 |
(3). Key Financial Information of Significant Non-Wholly-Owned Subsidiaries
(RMB ten thousand)
| Subsidiary | 2024.12.31 | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| PANASIA TRADING RESOURCES LIMITED | 132,512.17 | 61,012.69 | 193,524.86 | 83,490.40 | 4,458.08 | 87,948.48 |
Continued (1):
(RMB ten thousand)
| Subsidiary | 2023.12.31 |
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| PANASIA TRADING RESOURCES LIMITED | 157,584.33 | 59,359.94 | 216,944.27 | 123,938.05 | 1,596.43 | 125,534.48 |
Continued (2):
(RMB ten thousand)
| Subsidiary | 2024 | |||
| Operating income | Net profit | Total comprehensive income | Net cash flows from operating activities | |
| PANASIA TRADING RESOURCES LIMITED | 419,549.18 | 33,041.39 | 33,041.39 | 22,983.91 |
Continued (3):
(RMB ten thousand)
| Subsidiary | 2023 | |||
| Operating income | Net profit | Total comprehensive income | Net cash flows from operating activities | |
| PANASIA TRADING RESOURCES LIMITED | 458,465.05 | 25,331.64 | 25,331.64 | 49,778.91 |
(4). Transactions that result in changes to the Company’s interests in subsidiaries without causing a loss ofcontrol
① Changes in the Company’s interests in subsidiaries
| Subsidiary | Date of equity change | Shareholding percentage before the change (%) | Shareholding percentage after the change (%) | ||
| Direct | Indirect | Direct | Indirect | ||
| Guiyang Haida Zhihai Feed Co., Ltd. | January 2024 | 38.50 | 45.10 | ||
| Linyi Haiding Feed Technology Co., Ltd. | February 2024 | 41.25 | 50.60 | ||
| Linyi Hedong District Haiding Agricultural and Animal Husbandry Development Co., Ltd. | February 2024 | 41.25 | 50.60 | ||
| Shandong Daxin Group Co., Ltd. | August 2024 | 60.00 | 71.55 | ||
| Guangdong Qingyuan Guanghong Feed Co., Ltd. | September 2024 | 60.00 | 100.00 | ||
| Qingdao Daxinyi Dolphin Ecological Agriculture Co., Ltd. | December 2024 | 80.00 | 100.00 | ||
| Mianyang Zhonggui Feed Co., Ltd. | December 2024 | 45.10 | 54.87 | ||
| Mianyang Hailong Feed Co., Ltd. | December 2024 | 70.00 | 13.53 | 70.00 | 16.46 |
② Impact of the transactions on non-controlling interests and equity attributable to the parent company
| Item | Guiyang Haida Zhihai Feed Co., Ltd. | Linyi Haiding Feed Technology Co., Ltd. | Linyi Hedong District Haiding Agriculture and Animal Husbandry Development Co., Ltd. | Shandong Daxin Group Co., Ltd. |
| Acquisition cost / consideration of disposal | ||||
| --Cash | - | 464,900.96 | 415,852.50 | 51,812,569.47 |
| --Fair value of non-cash assets | - | - | - | - |
| Total acquisition cost / consideration of disposal | - | 464,900.96 | 415,852.50 | 51,812,569.47 |
| Less: Share of subsidiary’s net assets at the percentage of shareholding acquired or disposed | -411,860.47 | 159,387.58 | 729,207.18 | 54,783,848.70 |
| Difference: Adjustment to capital reserve (“-“ for decrease) | -411,860.47 | -305,513.38 | 313,354.68 | 2,971,279.23 |
Continued:
| Item | Guangdong Qingyuan Guanghong Feed Co., Ltd. | Qingdao Daxinyi Dolphin Ecological Agriculture Co., Ltd | Mianyang Zhonggui Feed Co., Ltd. | Mianyang Hailong Feed Co., Ltd. |
| Acquisition cost / consideration of disposal | ||||
| --Cash | 1,772,872.74 | - | - | - |
| --Fair value of non-cash assets | - | - | - | - |
| Total acquisition cost / consideration of disposal | 1,772,872.74 | - | - | - |
| Less: Share of subsidiary’s net assets at the percentage of shareholding acquired or disposed | 1,772,872.74 | -140,757.83 | 1,154,516.14 | -286,784.12 |
| Difference: Adjustment to capital reserve (“-“ for decrease) | - | -140,757.83 | 1,154,516.14 | -286,784.12 |
2. Business Combinations Involving Entities Not under Common Control
The Company did not engage in any business combinations involving entities not under common controlduring the current period.
3. Reverse Acquisition
The Company did not engage in any business combinations involving reverse acquisition during the currentperiod.
4. Business Combinations Involving Entities under Common Control
The Company did not engage in any business combinations involving entities under common controlduring the current period.
5. Disposal of Subsidiaries
Disposal of investments in subsidiaries through a single transaction resulting in loss of control
| Subsidiary | Consideration | Percentage of equity being disposed | Disposal method | Date of losing the control | Basis for determining the date of loss of control | Difference between consideration received and the related share of net assets in consolidated financial statements | Goodwill relating to this subsidiary in the consolidated financial statements |
| Foshan Haida Beacon Feed Co., Ltd. | - | 60.00 | Sale | 2024-04-13 | transfer of control | -437,032.04 | - |
| Liaocheng Daxin Feed Co.Ltd | 39,420,193.06 | 100.00 | Sale | 2024-07-31 | transfer of control | -133,176.74 | - |
| Yantai Pigman Hog Farm Feed Co.Ltd | 38,972,636.71 | 100.00 | Sale | 2024-09-30 | transfer of control | -63,161.81 | - |
Continued:
| Subsidiary | Proportion of remaining equity on the date of losing control | Carrying amount of remaining equity on date of lossing control | Fair value of remaining equity on date of lossing control | Gain or loss from remeasurement of remaining equity at fair value | Method and key assumptions for determining the fair value of remaining equity | Investment income transferred from other comprehensive income related to previously equity investments in subsidiaries |
| Foshan Haida Beacon Feed Co. | - | - | - | - | - | - |
| Liaocheng Daxin Feed Co.Ltd | - | - | - | - | - | - |
| Yantai Pigman Hog Farm Feed Co.Ltd | - | - | - | - | - | - |
6、Changes in the Scope of Consolidation due to Other Reasons
(1) Establishment of New Subsidiaries
| Subsidiary | Registered capital | Place of registration | Principal place of business |
| Yiyang Dachuan Feed Co.,Ltd. | RMB500,000.00 | Yiyang, Hunan | Yiyang, Hunan |
| Yantai Zhizhuxia Breeding Service Co., Ltd. | RMB500,000.00 | Yantai, Shandong, | Yantai, Shandong, |
| Ji’an Yi Dolphin Ecological Agriculture Co.,Ltd | RMB1,000,000.00 | Ji’an, Jiangxi | Ji’an, Jiangxi |
| Meizhou Yikang Pig Breeding Technology Co.,Ltd | RMB35,000,000.00 | Meizhou, Guangdong | Meizhou, Guangdong |
| Zhuhai Haizexin Marine Biotechnology Co., Ltd. | RMB50,000,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong |
| Guizhou Yixin Seed Industry Technology Co., Ltd. | RMB10,000,000.00 | Qiannan, Guizhou | Qiannan, Guizhou |
| Huizhou Haizexin Marine Biotechnology Co., Ltd. | RMB10,000,000.00 | Huizhou, Guangdong | Huizhou, Guangdong |
| Haiyang Haihe Feed Co., Ltd | RMB10,000,000.00 | Yantai, Shandong, | Yantai, Shandong, |
| Zhuhai Fengcheng Supply Chain Management Co., Ltd. | RMB5,000,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong |
| Zhanjiang Haizexin Marine Biotechnology Co., Ltd. | RMB50,000,000.00 | Zhanjiang, Guangdong | Zhanjiang, Guangdong |
| Shanwei Haixingnong Marine Biotechnology Co., Ltd. | RMB5,000,000.00 | Shanwei, Guangdong | Shanwei, Guangdong |
| Qingdao Daxin Yibo Ecological Agriculture Co., Ltd. | RMB50,000,000.00 | Qingdao, Shandong | Qingdao, Shandong |
| Rongcheng Yandunjiao Feed Co., Ltd. | RMB30,000,000.0 | Weihai, | Weihai, |
| Subsidiary | Registered capital | Place of registration | Principal place of business |
| 0 | Shandong | Shandong | |
| Haida (Zhengzhou) Digital Technology Co., Ltd | RMB10,000,000.00 | Zhengzhou, Henan | Zhengzhou, Henan |
| Guangzhou Haiying Commercial Management Co., Ltd. | RMB5,000,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| Hunan Yixin Pig Breeding Co., Ltd. | RMB5,000,000.00 | Hengyang, Hunan | Hengyang, Hunan |
| Rongcheng Haituo Biotechnology Co., Ltd. | RMB20,000,000.00 | Weihai, Shandong | Weihai, Shandong |
| Lishui Haida Huatong Biotechnology Co., Ltd. | RMB30,000,000.00 | Lishui, Zhejiang | Lishui, Zhejiang |
| Guangzhou Shuohai Commercial Management Co., Ltd. | RMB2,000,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| Yixian Food Co., Ltd., Zhenjiang District, Shaoguan City | RMB500,000.00 | Shaoguan, Guangdong | Shaoguan, Guangdong |
| Guangdong Yibuang Supply Chain Management Co., Ltd. | RMB1,000,000.00 | Zhuhai, Guangdong | Zhuhai, Guangdong |
| Guangzhou Peiqi Investment Co., Ltd. | RMB10,000,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| Zigong Peiqi Agricultural Technology Co., Ltd. | RMB1,000,000.00 | Zigong, Sichuan | Zigong, Sichuan |
| Qinzhou Peiqi Breeding Service Co., Ltd. | RMB1,000,000.00 | Qinzhou, Guangxi | Qinzhou, Guangxi |
| Guangzhou Haiyue Agriculture and Animal Husbandry Co., Ltd. | RMB10,000,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| Shanwei Haizenong Gene Technology Co., Ltd. | RMB20,000,000.00 | Shanwei, Guangdong | Shanwei, Guangdong |
| Yingkou Haishengyuan Biotechnology Co., Ltd. | RMB20,000,000.00 | Yingkou, Liaoning | Nanping, Fujian |
| Ningdu Haida Biotechnology Co., Ltd. | RMB12,000,000.00 | Ganzhou, Jiangxi | Ganzhou, Jiangxi |
| Huai'an Dachuan Feed Co., Ltd. | RMB20,000,000.00 | Huai’an, Jiangsu | Huai’an, Jiangsu |
| Qujing Haiyue Ecological Agriculture Co., Ltd. | RMB2,000,000.00 | Qujing, Yunnan | Qujing, Yunnan |
| Hunan Haiyue Ecological Agriculture Co., Ltd. | RMB2,000,000.00 | Xiangtan, Hunan | Xiangtan, Hunan |
| HAIDA AGRICULTURAL AND TECHNOLOGY NIGERIA LIMITED | NGN100 million | Nigeria | Nigeria |
| Liuzhou Haizehui Fishery Technology Co., Ltd. | RMB45,000,000.00 | Liuzhou, Guangxi | Liuzhou, Guangxi |
| Shanwei Haizehui Marine Biotechnology Co., Ltd. | RMB20,000,000.00 | Shanwei, Guangdong | Shanwei, Guangdong i |
| Zhaoqing Bairong Seed Industry Technology Co., Ltd. | RMB5,000,000.00 | Zhaoqing, Guangdong | Zhaoqing, Guangdong |
| Guangzhou Xitun Agricultural Investment Co., Ltd. | RM500,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| Beihai Haize Agricultural Seed Technology Co., Ltd. | RMB30,000,000.00 | Beihai, Guangxi | Beihai, Guangxi |
| Beijing Haichengyuan Feed Technology Co., Ltd. | RMB3,000,000.00 | Beijing | Beijing |
| Guangzhou Haihong Biotechnology Co., Ltd. | RMB10,000,000.00 | Guangzhou, Guangdong | Guangzhou, Guangdong |
| MEKONG HAI LONG COMPANY LIMITED | VND432.854 billio | Vietnam | Vietnam |
| Subsidiary | Registered capital | Place of registration | Principal place of business |
| n | |||
| Yucheng Haiding Agriculture and Animal Husbandry Co., Ltd. | RMB2,000,000.00 | Dezhou, Shandong | Dezhou, Shandong |
| Hexin Technology (Henan) Co., Ltd. | RMB10,000,000.00 | Xinyang, Henan | Xinyang, Henan |
| Yantai Daxin Agriculture and Animal Husbandry Development Co., Ltd. | RMB10,000,000.00 | Yantai, Shandong | Yantai, Shandong |
| Shenyang Shengkang Biotechnology Service Co., Ltd. | RMB500,000.00 | Shenyang, Liaoning | Shenyang, Liaoning |
| PT.HAILIANK TECHNOLOGY INDONESIA | IDR1,000,000.00 | Indonesia | Indonesia |
(2) Deregistration of subsidiaries
| Subsidiary | Method of equity change | Net assets at disposal date | Net profit until the date of disposal |
| Jining Haiding Veterinary Services Co., Ltd. | Deregistration | - | - |
| Guiping Yidu Ecological Agriculture Co., Ltd. | Deregistration | - | - |
| Guangzhou Hairong Food Co., Ltd. | Deregistration | - | - |
| Yinan Dingxin Veterinary Services Co., Ltd. | Deregistration | - | 160,314.77 |
| Junan Haiding Veterinary Services Co., Ltd. | Deregistration | - | 190,860.87 |
| Guangzhou Shunkang Aquaculture Co., Ltd. | Deregistration | - | -54,502.89 |
| PRIME WORLD CO., LTD. | Deregistration | - | 85,728.15 |
| Yantai Haixin Animal Husbandry Co., Ltd. | Deregistration | - | - |
| Dongguan Haiqi Feed Co., Ltd. | Deregistration | - | - |
| Xinjiang Xiyu Haihua Products Co., Ltd. | Deregistration | - | -65,279.76 |
| Foshan Lianduoli Feed Co., Ltd. | Deregistration | - | - |
| Guangzhou Haihan Financial Technology Co., Ltd. | Deregistration | - | -408,482.04 |
| Binzhou Haiying Food Co., Ltd. | Deregistration | - | 13,902,343.78 |
| Jinzhou Zhengyuan Grain Trading Co., Ltd. | Deregistration | - | 1,875,244.64 |
| Guiyang Aizhu Livestock Technology Service Co., Ltd. | Deregistration | - | 23,841.00 |
| Zhuhai Chenzhe Private Fund Management Co., Ltd. | Deregistration | - | -284,834.79 |
| Leizhou Hailong Biotechnology Co., Ltd. | Deregistration | - | 1,389.83 |
| Dali Haizhi Trading Co., Ltd. | Deregistration | - | 290,393.96 |
| Qingyuan Haikun Biotechnology Co., Ltd. | Deregistration | - | |
| Rongcheng Yandunjiao Fish Meal Co., Ltd. | Deregistration | 2,303,630.63 | |
| Qingdao Zhizhuxia Experimental Technology Co., Ltd. | Deregistration | -41,071.53 | |
| Ganzhou Hailong Feed Co., Ltd. | Deregistration | - | |
| Jiangsu Haida Biotechnology Co., Ltd. | Deregistration | - | 892.71 |
| Guangzhou Haishengke Investment Co., Ltd. | Deregistration | - | -232,320,178.75 |
| Baojing Yidu Ecological Agriculture Co., Ltd. | Deregistration | - | -2,336,512.87 |
7. Interests in Joint Ventrues or Associates
① The Group had no significant joint ventures or associates during the period
② Summary of Financial Information of Insignificant joint ventures and associates
| Item | 2024.12.31/ 2024 | 2023.12.31/ 2023 |
| Associates: | ||
| Total carrying amount of investments | 280,217,892.86 | 216,673,525.00 |
| Totals calculated as shareholding percentage | ||
| --Net profit | 41,041,524.46 | 49,717,167.08 |
| --Other comprehensive income | -1,880,832.11 | -788,212.16 |
| --Total comprehensive income | 39,160,692.35 | 48,928,954.92 |
VIII. Government grants
1. As of December 31, 2024, there were no government grants recognized as other receivables.
2. Government grants recognized in deferred income
(1) Government grants recognized in deferred income, and subsequently measured using the gross
presentation method
| Item | 2023.12.31 | Additions during the period | Recognized in profit or loss | Other movements | 2024.12.31 | Presentation item recognized in profit or loss | Related to asset/income |
| Development Support Fund | 27,834,937.94 | 25,408,917.04 | 2,323,781.84 | - | 50,920,073.14 | Other income | Related to asset |
| Development Support Fund | 10,767,721.82 | - | 8,673,337.73 | - | 2,094,384.09 | Other income | Related to income |
| Research grants | 22,514,921.92 | 142,642.97 | 2,997,064.38 | - | 19,660,500.51 | Other income | Related to asset |
| Research grants | 3,874,267.14 | 12,312,470.00 | 6,725,960.20 | - | 9,460,776.94 | Other income | Related to income |
| Grants for production activities | 227,691,061.40 | 37,665,303.77 | 20,701,042.81 | -4,305,000.00 | 240,350,322.36 | Other income | Related to asset |
| Grants for production activities | 12,417,243.18 | - | 12,412,307.06 | - | 4,936.12 | Other income | Related to income |
| Item | 2023.12.31 | Additions during the period | Recognized in profit or loss | Other movements | 2024.12.31 | Presentation item recognized in profit or loss | Related to asset/income |
| Government incentive grants | 6,115,797.79 | - | 590,024.97 | - | 5,525,772.82 | Other income | Related to asset |
| Government incentive grants | 9,900.00 | - | 9,900.00 | - | - | Other income | Related to income |
| Others | 23,384,450.40 | 1,799,478.00 | 3,742,037.40 | - | 21,441,891.00 | Other income | Related to asset |
| Others | 60,223.23 | - | 60,223.23 | - | - | Other income | Related to income |
| Total | 334,670,524.82 | 77,328,811.78 | 58,235,679.62 | -4,305,000.00 | 349,458,656.98 |
(2) Government grants recognized in deferred income, and subsequently measured using the netpresentation method
| Item | 2023.12.31 | Additions during the period | Recognized in profit or loss | Other movements | 2024.12.31 | Presentation item recognized in profit or loss | Related to asset/income |
| Financial discount | 141,624.07 | - | 50,243.01 | - | 91,381.06 | Financial expenses | Related to asset |
| Total | 141,624.07 | - | 50,243.01 | - | 91,381.06 |
3. Government grants recognized in profit or loss, and subsequently measured using the gross presentationmethod
| Item | Recognized in profit or loss for the prior year | Recognized in profit or loss for the current year | Presentation item recognized in profit or loss | Related to asset/income |
| Development Support Fund | 2,323,781.84 | 2,217,146.30 | Other income | Related to asset |
| Development Support Fund | 17,330,344.64 | 10,314,067.74 | Other income | Related to income |
| Research grants | 2,997,064.38 | 1,529,083.13 | Other income | Related to asset |
| Research grants | 11,429,957.20 | 11,918,652.30 | Other income | Related to income |
| Item | Recognized in profit or loss for the prior year | Recognized in profit or loss for the current year | Presentation item recognized in profit or loss | Related to asset/income |
| Grants for production activities | 20,723,042.81 | 27,092,818.83 | Other income/non-operating income/non-operating expenses | Related to asset |
| Grants for production activities | 12,412,307.06 | 11,692,119.39 | Other income | Related to income |
| Government incentive grants | 690,024.97 | 535,396.28 | Other income | Related to asset |
| Government incentive grants | 21,503,968.40 | 13,554,402.58 | Other income | Related to income |
| Other grants | 3,742,037.40 | 3,800,350.96 | Other income | Related to asset |
| Other grants | 22,403,979.05 | 9,280,051.40 | Other income | Related to income |
| Total | 115,556,507.75 | 91,934,088.91 |
4. Government grants offset against related costs by net presentation method
| Item | Offset against related costs and expenses in the current period | Offset against related costs and expenses in the pervious period | Presentation item to offset against related costs and expenses | Related to asset/income |
| Financial discount | 50,243.01 | 211,889.53 | Financial expenses | Related to asset |
| Financial discount | 3,324,553.00 | 2,360,135.36 | Financial expenses | Related to income |
| Total | 3,374,796.01 | 2,572,024.89 |
5. Government grants returned in the current year.
| Item | Amount | Reason |
| Subsidies for productive activities | 4,305,000.00 | Relevant subsidy programs have been terminated |
| Total | 4,305,000.00 |
IX. Risks Management of Financial Instruments
The main financial instruments of the Group include cash at bank and on hand, notes receivable, accountsreceivable, other receivables, non-current assets due within one year, other current assets, entrusted loanissued and advances to customer, held-for-trading financial assets, debt investments, other non-currentfinancial assets, long-term receivables, notes payable, accounts payable, other payables, short-term loans,held-for-trading liabilities, non-current liabilities due within one year, long-term loans, lease liabilities andlong-term payables. Details of various financial instruments have been disclosed in the relevant notes. Therisks associated with these financial instruments and the risk management policies adopted by the Group toreduce these risks are described below. The management of the Group manages and monitors theseexposures to ensure that the above risks are controlled within a limited range.
1. Objectives and Policies of Risk Management
The major risks caused by the Group's financial instruments are credit risk, liquidity risk and market risk
(including exchange rate risk, interest rate risk and commodity price risk).The Group's purpose in risk management is to achieve an appropriate balance between risk and return,minimize the negative impact of risk on the Group's operating performance. Based on the purpose of riskmanagement, the basic strategy of the Group's risk management is to identify and analyze various kind ofrisks faced by the Group, set up an appropriate risk tolerance bottom line and design the internal controlprocess to monitor the risk level. The Group reviews the risk management policy and relevant internalcontrol system to adapt to the changes of market or operations regularly. The Group’s internal auditdepartment also reviews regularly or randomly whether the performance of internal control system iscomplied with the risk management policy.The Board of Directors is responsible for planning and establishing the Group's risk management structure,formulating the Group's risk management policies and related guidelines, and supervising theimplementation of risk management measures. The Group has formulated risk management policies toidentify and analyze the risks faced by the Group. These risk management policies specify specific risksand cover many aspects such as management of market risk, credit risk and liquidity risk. The Groupregularly assesses changes in the market environment and the Group’s operating activities to decidewhether to update the risk management policies and systems. Risk management of the Group is carried outby the relevant departments in accordance with the policies approved by the Board of Directors, and thesedepartments identify, evaluate and hedge relevant risks through close cooperation with other business unitsof the Group.The Group diversifies the risks of financial instruments through appropriate diversified investments andbusiness portfolios, and reduces the risk of concentration in a single industry, specific region, or specificcounterparty by formulating appropriate risk management policies.
(1) Credit Risk
Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting infinancial losses to the Group.The Group manages credit risk on the basis of portfolio. Credit risk mainly arises from bank deposits, notesreceivable, accounts receivable, other receivables, other current assets, long-term receivables, entrustedloan issued and advances to customer etc.The Group's bank deposits are mainly deposited in financial institutions with reputation and high creditratings. The Group expects that the credit risk of bank deposits is low.With regard to notes receivable, accounts receivable, other receivables, other current assets, loans andadvances to customers, the Group establishes relevant policies to control credit risk exposure. The Groupassesses the credit qualification of customers based on their financial status, credit records and other factors,such as current market conditions, and sets corresponding credit periods. The Group monitors the creditrecords of customers on a regular basis. For customers with poor credit records, the Group will issuereminders in writing, shorten the credit period or cancel the credit period, so as to ensure that the overallcredit risk of the Group is within the controllable range.The debtors of the Group are spread in different industry and geographic region. The Group continuouslyperforms credit assessment on the debtors and purchase credit guarantee insurance when necessary.The Group’s maximum tolerated credit risk exposure is the book value of every financial asset on thebalance sheet. The Group also faces credit risk for providing financial guarantee. Please refer to Note XIII.2.Accounts receivable due from the top five customers of the Group account for 8.66% of total accountsreceivable (2023: 7.41%). Other receivables due from the top five companies account for 35.36% of theGroup’s total accounts receivable (2023: 30.67%).
(2) Liquidity Risk
Liquidity risk is the risk that the Group is short of funds to deliver cash or other financial assets or meetother settlement obligations.Each subsidiary of the Group is responsible for cash flow forecast. The financial companies of the Groupmonitors the long-term and short-term capital requirements at the group level based on the cash flowforecasts of each subsidiary. The Group coordinates the surplus funds within the group through the fundingpool plan setup in the large financial institutions, and ensure that each member has sufficient cash reservesto meet the payment obligations due for settlement. In addition, the Group entered into financing creditagreements with main business banks to support the Group in meeting its obligations related to commercialbills.The Group raises working capital through funds generated from operating business, bank and otherborrowings. As of December 31, 2024, the Group's undrawn credi facilities from financial instituions wasRMB30.317 billion (December 31, 2023: RMB25.967 billion).
(3) Market Risk
Market risk of financial instrument is the risk of fluctuation in the fair value or future cash flow due tochanges of market price, including interest rate risk, foreign exchange rate risk and other price risk.Interest Rate RiskInterest rate risk refers to the risk that the fair value or future cash flows of financial instruments willfluctuate due to changes in market interest rates. Interest rate risk can arise from confirmed interest-bearingfinancial instruments and unrecognized financial instruments.The Group's interest rate risk mainly arises from long-term and short term interest–bearing bank loans.Financial liabilities with floating interest rates causes interest rate risks in cash flow to the Group andFinancial liabilities with fixed interest rates causes interest rate risks in fair value to the Group. The Groupdetermines the proportion of fixed and floating interest rate contracts according to current market situationand maintain the appropriate mixture of the instruments with fixed and floating interest rate by regularreview and monitoring.The Group closely monitors the impact of changes in interest rates on the Group's interest rate risk. TheGroup does not currently have an interest rate hedging policy. However, management is responsible formonitoring interest rate risk and will consider hedging significant interest rate exposures as and whenrequired. An increase in interest rates could increase the cost of new interest-bearing debt and interestexpense on the Group's outstanding interest-bearing debt with floating interest rates and have a materialadverse effect on the Group's financial results. Management will make timely adjustments based on thelatest market conditions.Foreign Exchange rate riskForeign exchange rate risk is the risk of fluctuation of fair value or future cash flow of financial instrumentdue to the changes of foreign exchange rate. Foreign exchange rate risk can arise from financial instrumentmeasured at foreign currency instead of reporting currency.The Group’s principal business is operated in China and settled in RMB. The raw materials purchased andimported by the Group have achieved a certain scale, and there is an increase in the transactions amount ofoverseas subsidiaries of the Group overseas uses with other currencies other than RMB as their functionalcurrency. Therefore, fluctuations in RMB exchange rate have exerted certain impact on the Group’sbusiness operations.As of December 31, 2024, the Group’s major monetary items in foreign currencies are financial assets andfinancial liabilities denominated in US dollar, Vietnamese dong, Indonesian rupiah (refer to Note V. 70 (1)Monetary iems in foreign currencies for more details). Since other currencies are used less frequently andthe amount is relatively small, changes in their exchange rates has no significant impact on the businessactivities of the Group.
The Group closely monitors the impact of exchange rate movements on the Group's exchange rate risk andcontinuously monitors the size of the Group's foreign currency transactions and foreign currency assets andliabilities in order to minimize its exposure to foreign exchange risk. To this end, the Group seeks to hedgeits foreign exchange risk by entering into forward exchange contracts or currency swap contracts asappropriate.Other price riskOther price risk is the fluctuation risk due to the changes of market prices besides foreign exchange riskand interest rate risk due to whether individual financial instrument or its issuer or all similar financialinstruments traded in the market. It may be affected by the changes of the price of goods or equityinstrument. Other price risk can arise from changes in commodity prices, stock market indices, equityinstrument prices, and other risk variables.The Company upholds the basic principle of serving spot goods -- the spot procurement program, andregards risk control as the core principle. Meanwhile, it will adopt one or more than one arbitrage tool forhedging to avoid the commodity price risk and credit risk etc., and changes in the fair value or cash flow ofthe arbitrage tool are expected to offset all or part of the changes in the fair value or cash flow of thehedged item, in which way, the impact of price fluctuations in raw materials and commodities onproduction and operations can thus be mitigated.
2. Capital Management
The objective of the Group's capital management policy is to safeguard the Group's ability to continue as agoing concern, thereby providing returns to shareholders and benefiting other stakeholders, whilemaintaining an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure, the Group may adjust the method of financing, adjust theamount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equityinstruments or sell assets to reduce debt.The Group monitors its capital structure on the basis of gearing ratio (i.e. total liabilities divided by totalassets). As of December 31, 2024, the Group's gearing ratio was 47.87% (December 31, 2023: 53.27%).
3. Hedging
(1) Risk management of hedging business
| Item | Corresponding risk management strategies and objectives | Qualitative and quantitative information on hedged risk | Economic relationships between hedged items and related hedging instruments | Achievement of expected risk management objectives on effectiveness | Effect of corresponding hedging activities on risk exposure |
| Exchange rate risk | Hedge the exchange rate risk of foreign currency assets and foreign currency liabilities held by the Group. | Exchange rate fluctuations result in corresponding exchange gains and losses on the foreign currency assets and liabilities held by the Group. | The hedged item and the hedging instrument have an economic relationship. This economic relationship causes the value of the hedging instrument and the hedged item to move in opposite directions due to exposure to the same hedged risk. | The expected risk management objectives can be achieved. | Purchasing hedging instruments to reduce the impact of exchange rate risk exposure. |
| Item | Corresponding risk management strategies and objectives | Qualitative and quantitative information on hedged risk | Economic relationships between hedged items and related hedging instruments | Achievement of expected risk management objectives on effectiveness | Effect of corresponding hedging activities on risk exposure |
| Commodity price risk | Hedge the commodity price risk of the group. |
The pricefluctuation ofraw materialsand finishedgoods leads tothefluctuations inthe Group'soperatingincome andoperatingcosts.
| The hedged item and the hedging instrument have an economic relationship. This economic relationship causes the value of the hedging instrument and the hedged item to move in opposite directions due to exposure to the same hedged risk. | The expected risk management objectives can be achieved. | Purchase hedging instruments to reduce the impact of commodity price risk exposure. |
(2) Engage in qualifying hedging activities and applies hedge accounting
① Type of hedging risk
| Item | Carrying amount related to hedged items and hedging instruments | Cumulative fair value hedge adjustments of hedged items included in the carrying amount of recognized hedged items | Hedge effectiveness and sources of ineffective portion | Relevant effects of hedge accounting on the Company’s financial statements |
| Exchange rate risk | - | Note 1 | There was no ineffective portion resulting from exchange rate risk during the period. | Except for hedging costs, the changes in fair value of hedging instruments are offset against exchange gains and losses arising from foreign currency assets/liabilities, and the difference after offsetting is recognized in other comprehensive income. |
| Commodity price risk | 283,567,049.79 | Note 2 | Refer to the categories of hedges for details. | Refer to the categories of hedges for details. |
② Categories of hedges
| Item | Carrying amount related to hedged items and hedging instruments | Cumulative fair value hedge adjustments of hedged items included in the carrying amount | Hedge effectiveness and sources of ineffective portion | Relevant effects of hedge accounting on the Company’s financial statements |
| of recognized hedged items | ||||
| Commodity price risk—Cash flow hedge | 283,567,049.79 | Note 2 | Note 2 | The effective portion of the changes in fair value of hedging instruments is firstly recognized in other comprehensive income, and transferred to the current operating income or operating costs as the sales of the hedged item are carried forward. |
Note 1: The Group reduces the exchange rate fluctuation risk of foreign currency assets and liabilities suchas foreign currency monetary funds, foreign currency bank borrowings, foreign currency accounts payable,etc. through forward exchange contracts, foreign exchange option contracts, foreign exchange swapcontracts, and currency swap contracts. The forward exchange contracts and foreign exchange optioncontracts signed by the Group meet the application conditions of hedging accounting.On December 31, 2024, the Group held the forward exchange contract with a nominal amount ofUSD78,190,223.89. According to the above agreement, the Group may or has the right to sell dollars at afixed exchange rate on the lock in maturity date, with the aim of hedging foreign currency risks arisingfrom internal transactions within the Group that cannot be offset in the consolidated financial statements.On December 31, 2024, the Group held the forward foreign exchange contract with a nominal amount ofIDR240,000,000,000.00. According to the above agreement, the Group may or has the right to sell rupiahsat a fixed exchange rate on the lock in maturity date, with the aim of hedging foreign currency risks arisingfrom internal transactions within the Group that cannot be offset in the consolidated financial statements.The Group separates the intrinsic value and time value of options and only designates changes in theintrinsic value of options as hedging instruments; The Group separates the forward and spot elements offorward contracts and only designates changes in the value of spot elements as hedging instruments; TheGroup separates the foreign exchange basis of financial instruments and only designates financialinstruments excluding foreign exchange basis as hedging instruments.Note 2: The Group engages in the production and machining of feed products as well as hogs breeding. TheGroup designates foreign currency forwards and commodity futures contracts as hedging instrument for theexpected procurement and sales, so as to avoid the risk of cash flow changes caused by the prospectivecommodity prices and exchange rate fluctuations.At the end of the period, the balance of cash flow reserves is as follows:
| Cash flow hedge | Notional quantity of hedging instrument (tons) | Carrying amount of hedging instrument | Items presented for assets and liabilities that include hedging instruments | Changes in fair value of the hedging instruments used as the baisis for recognizing the ineffective portion of te hedge during the period | |
| Assets | Liabilities | ||||
| Commodity price risk - Expected sales | 1,100,876.00 | 262,392,110.00 | - | Held-for-trading financial assets | - |
| Commodity price risk - Expected purchases | 1,014,152.00 | 21,174,939.79 | - | Held-for-trading financial assets | - |
Continued:
| Cash flow hedge | Amount of closing positions of hedging instruments but not yet carried forward to profit or loss at the end of the period | Impact on Income tax | Cash flow hedging reserves |
| Commodity price risk - expected sales | 385,788,190.20 | 30,660,448.29 | 617,519,851.91 |
| Commodity price risk - expected purchases | -35,940,269.52 | - | -14,765,329.73 |
(3) The Company enages in hedging activities for risk management, expects to achieve risk managementobjectives, but does not apply hedge accounting
| Item | Reasons for not applying hedge accounting | Impact on the financial statements |
| Commodity price risk | The Group has not officially designated hedging instruments and hedged items | The profit or loss of Held-for-trading financial assets or liabilities are directly recognized in the profit or loss arising from changes in fair value and investment income. |
4. Transfer of financial assets
(1) Classification of transfer methods
| Transfer method | Nature of financial assets transferred | Amount of financial assets transferred | Status of derecognition | Basis for determining derecognition |
| Discount of notes | Bank acceptance bills that have been discounted but not yet matured | 350,203,137.81 | Derecognized | Bank acceptance notes discounted are accepted by banks with higher credit ratings, with minimal credit and deferred payment risks. Almost all risks and rewards have already been transferred during discounting, thereby derecognized |
| Endorsement of notes | Commercial acceptance notes that have been endorsed but not yet matured | 1,000,000.00 | Not derecognized | Due to the relatively high credit risk and deferred payment risk of commercial acceptance notes receivable, the risks and rewards related to the notes during endorsement have not been transferred, thereby did not derecognise |
| Total | 351,203,137.81 |
(2) Financial assets derecognised due to transfer
| Item | Transfer method | Amount derecognized | Gain or loss relating to derecognition |
| Bank acceptance bills that have been discounted but not yet matured | Discounted | 350,203,137.81 | -395,604.22 |
| Total | 350,203,137.81 | -395,604.22 |
(3) Continued Involvement in the Transfer of Assets Financial Assets
| Item | Method of assets transfer | Amount of assets resulting from continued involvement | Amount of liabilities resulting from continued involvement |
| Commercial acceptance notes that have been endorsed but not yet matured | Endorsement of notes | 1,000,000.00 | 1,000,000.00 |
| Total | 1,000,000.00 | 1,000,000.00 |
X. Disclosures of Fair Value
The level in which fair value measurement is categorized is determined by the level of the fair valuehierarchy of the lowest level input that is significant to the entire fair value measurement. The levels aredefined as follows:
Level 1 inputs: unadjusted quoted prices in active markets for identical assets or liabilities.Level 2 inputs: inputs other than quoted prices included within Level 1 that are either directly or indirectlyobservable for the assets or liabilities.Level 3 inputs: inputs that are unobservable for assets or liabilities. (unobservable input)Items and Amount Measured at Fair ValueAs of December 31, 2024, assets and liabilities measured at fair value based on the three levels above areshown as follows:
| Item | Level 1 | Level 2 | Level 3 | Total |
| I. Recurring fair value measurement | ||||
| 1. Held-for-trading financial assets | 354,329,790.10 | - | 4,308,098,039.72 | 4,662,427,829.82 |
| (1) Investments in equity instruments | 362,294.22 | - | - | 362,294.22 |
| (2) Derivative financial assets | 353,967,495.88 | - | 3,729,876.11 | 357,697,371.99 |
| (3) Financial products | - | - | 4,304,368,163.61 | 4,304,368,163.61 |
| 2. Other non-current financial assets | - | - | 238,380,604.68 | 238,380,604.68 |
| Total assets measured at fair value on a recurring basis | 354,329,790.10 | - | 4,546,478,644.40 | 4,900,808,434.50 |
| 3. Held-for-trading financial liabilities | 60,905,360.00 | - | 16,484,892.93 | 77,390,252.93 |
| Total liabilities measured at fair value on a recurring basis | 60,905,360.00 | - | 16,484,892.93 | 77,390,252.93 |
| II. Discontinued fair value measurements |
| Item | Level 1 | Level 2 | Level 3 | Total |
| Assets held-for-sale | - | 641,999.09 | - | 641,999.09 |
| Total assets not continuously measured at fair value | - | 641,999.09 | - | 641,999.09 |
The Company recognises transfers between different levels at the end of the current reporting period duringwhich such transfers are made. During the year, there were no transfers between Level 1 and Level 2 in thefair value measurement of the Group's financial assets and financial liabilities, nor were there any transfersinto or out of Level 3.For financial instruments with active market, the Group measures fair value at quoted price in activemarket; for financial instrument without active market, the Company measures fair value using valuationtechniques. Valuation models used are mainly cash flow discount model and market comparable entitymodel. Inputs include non-risk interest rate, base rate, foreign exchange rate, credit spread, liquiditypremium, lack of liquidity discount, etc.XI. Related Parties and Related-Party Transactions
1. Parent company
| Name | Place of registration | Business nature | Registered capital (RMB ten thousand) | Shareholding Percentage in the Company (%) | Percentage of voting rights in the Company (%) |
| Guangzhou Haihao Investment Co., Ltd. (hereinafter referred to as “Guangzhou Haihao”) | Guangzhou, Guangdong | Investment, trading, import and export of commodities and technologies | 3,000.00 | 54.73 | 54.73 |
Information on the Company's parent company:
Guangzhou Haihao is the parent company of the Company and was established on September 27, 2006. Mr.Hua Xue holds 39.75% of equity in Guangzhou Haihao, and is the ultimate controller of the Company.The ultimate controlling party of the Company is: Xue Hua.In the reporting period, movement of the registered capital of the parent company is as follows:
(RMB ten thousand)
| 2023.12.31 | Additions | Decreases | 2024.12.31 |
| 3,000.00 | - | - | 3,000.00 |
2. Information on the subsidiaries of the Company
For information on the subsidiaries of the Company, refer to Note VII.1.
3. Information on joint ventures and associates of the Company
For information on the significant joint ventures and associates of the Company, refer to Note VII.7.Joint ventures and associates that have related-party transactions and balance with the Group during thisyear or previous year are as follows:
| Names of joint ventures or associates | Relationship with the Group |
| Bangpu Seed Industry Technology Co., Ltd. | Associate, the Group holds 16% of equity interest |
| Foshan HNA Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | Associate, the Group holds 49% of equity interest |
| Wujiaqu Taikun Plant Protein Co., Ltd. | Associate, the Group holds 35% of equity interest |
| Aral Ruiliheng Biological Protein Co., Ltd. | Associate, the Group holds 35% of equity interest |
| Hutubi Tiankang Plant Protein Co., Ltd. | Associate, the Group holds 35% of equity interest |
| Beijing Haizhibao Pet Co., Ltd. | Associate, the Group holds 49% of equity interest |
| Sichuan Smart Fishing Machinery Technology Co., Ltd. | Associate, the Group holds 40% of equity interest |
| Guangzhou Hengjuchang Venture Capital Partnership (Limited partnership) | Former associate, the Group held 33.46653%.Was deregisteredin prior period. |
| Guangdong Zhongyu Duck Industry Co., Ltd. | Former associate, the Group held 49% and sold all the shares in prior period |
4. Information on other related parties
| Name | Relationship with the Group |
| Guangdong Haihaowan Development Co., Ltd. | Controlled by the same ultimate controlling party |
| Guangzhou Haoyue Biotechnology Development Co., Ltd. | Controlled by the same ultimate controlling party |
| Luoding Xingfa Xingji Agriculture and Animal Husbandry Development Co., Ltd. | Subsidiary of the Company’s associate, Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. |
| PT. HAIDA CHERRY VALLEY BREEDING IN | Subsidiary of the Company’s associate, HAID CHERRY VALLEY VIET NAM COMPANY LIMITED (HOLDING). |
| Binh An Phat Co., Ltd. | Subsidiary of the Company’s associate, HAID CHERRY VALLEY VIET NAM COMPANY LIMITED (HOLDING). |
| Mingzhong Chen | Key management |
5. Transactions with related parties
(1) Purchases/sales
① Purchase of goods/receiving of services
| Related party | Nature of transaction | 2024 | 2023 |
| Alaer Ruili Heng Sheng Protein Co., Ltd. | Raw materials | 119,447,505.13 | 236,780,332.08 |
| Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | Agricultural products | 1,194,385.46 | 405,699.82 |
| Binh An Phat Co., Ltd. | Raw materials, Agricultural products | 2,983,877.87 | 7,074,065.22 |
| Sichuan Zhihui Fishing Machine Technology Co., Ltd. | Engineering equipment | 9,000.00 | 4,187,521.00 |
| Wujiaqu Taikun Plant Protein Co., Ltd. | Raw materials | 124,342,200.95 | 214,034,525.36 |
| Hutubi Tiankang Plant Protein Co., Ltd. | Raw materials | 23,703,063.38 | - |
| Bangpu Seed Technology Co., Ltd | Agricultural products | - | 3,172,800.00 |
② Sales of goods/rendering of services
| Related party | Nature of transaction | 2024 | 2023 |
| Alaer Ruili Heng Sheng Protein Co., Ltd. | Services | 157,500.00 | 300,000.00 |
| Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | Feed and animal protection products | 81,039,019.20 | 87,974,883.19 |
| Wujiaqu Taikun Plant Protein Co., Ltd. | Services | 180,000.00 | 300,000.00 |
| Binh An Phat Co., Ltd.. | Feed and animal protection products | 75,768,091.61 | 80,869,024.67 |
| Hutubi Tiankang Plant Protein Co., Ltd. | Services | 120,000.00 | - |
| Guangzhou Haoyue Biotechnology Development Co., Ltd. | Services | 1,279,589.40 | - |
| PT. HAIDA CHERRY VALLEY BREEDING IN | Feed, animal protection products and fixed assets | 177,573.55 | - |
| Guangdong Zhongyu Duck Industry Co.Ltd. | Feed and animal protection products | - | 6,426,761.89 |
| Luoding Xingfa Xingji Agriculture and Animal Husbandry Development Co., Ltd. | Feed and animal protection products | - | 9,240.00 |
| Bangpu Seed Technology Co., Ltd | Feed and animal protection products | - | 5,500.00 |
| Guangdong Haihao Bay Development Co., Ltd. | Feed and animal protection products, agricultural products | - | 5,411.50 |
Note: The above transaction amount are tax inclusive.
(2) Trust/contracting arrangement
No such transactions during the reporting period.
(3) Lease
① As the lessor
| Lessee | Type of assets leased | Lease income recognized in 2024 | Lease income recognized in 2023 |
| Guangzhou Haihao Investment Co., Ltd. | Buildings | 73,872.00 | 54,000.00 |
② As the lessee
| Lessor | Type of assets leased | Lease expenses paid in 2024 | Lease expenses paid in 2023 |
| Mingzhong Chen | Buildings | 1,502,360.00 | 1,438,880.00 |
| Guangzhou Haoyue Biotechnology Development Co., Ltd. | Buildings | 34,596,750.00 | - |
Note: The price in the above lease with the related parties was determined based on market prices uponnegotiation.New right-of-use assets of the Company as the lessee in the current year:
| Lessor | Type of assets leased | 2024 | 2023 |
| Mingzhong Chen | Buildings | 2,877,418.68 | - |
| Guangzhou Haoyue Biotechnology Development Co., Ltd. | Buildings | 526,740,682.41 | - |
Interest expense on lease liabilities recognized by the Company as lessee during the year:
| Lessor | Type of assets leased | Interest expenses recognized in 2024 | Interest expenses recognized in 2023 |
| Mingzhong Chen | Buildings | 48,183.44 | 42,327.49 |
| Guangzhou Haoyue Biotechnology Development Co., Ltd. | Buildings | 14,597,194.16 | - |
(4) Guarantee
No such transactions during the reporting period.
(5) Funding from related party
No such transactions during the reporting period.
(6) Transfer of assets and debt restructuring
| Related party | Nature of transaction | 2024 | 2023 |
| Guangzhou Hengjuchang Venture Capital Partnership (Limited partnership) | 49% equity interest in Guangdong Yiheng Investment Co., LTD | - | 375,603,500.00 |
(7) Remuneration of key management personnel
The Company has 22 key management personnel in the current period and 19 key management personnelin the prior period, and the information about remuneration is as follows:
(RMB ten thousand)
| Item | 2024 | 2023 |
| Remuneration of key management personnel | 12,788.08 | 6,968.77 |
(8) Other related party transactions
No such transactions during the reporting period.
6. Receivables from and payables to related parties
(1) Receivables from related parties
| Item | Related party | 2024.12.31 | 2023.12.31 | ||
| Book value | Loss allowance | Book value | Loss allowance | ||
| Long-term receivables | Guangzhou Haoyue Biotechnology Development Co., Ltd. | 15,210,000.00 | - | 15,210,000.00 | - |
| Prepayment | Alaer Ruili Heng Sheng Protein Co., Ltd | 12,712,663.25 | - | 789,390.60 | - |
| Prepayment | Wujiaqu Taikun Plant Protein Co., Ltd | 6,332,752.00 | - | 502,489.01 | - |
| Item | Related party | 2024.12.31 | 2023.12.31 | ||
| Book value | Loss allowance | Book value | Loss allowance | ||
| Prepayment | Hutubi Tiankang Plant Protein Co., Ltd. | 3,883,436.62 | - | - | - |
| Accounts receivable | Guangzhou Haoyue Biotechnology Development Co., Ltd. | 94,671.40 | 2,356.20 | - | - |
| Long-term receivables | Mingzhong Chen | 333,270.00 | - | - | - |
| Other receivables | Mingzhong Chen | - | - | 999,810.00 | - |
| Other non-current assets | Sichuan Zhihui Fishing Machine Technology Co., Ltd. | - | - | 33,441.00 | - |
| Accounts receivable | Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | - | - | 19,074.00 | 418.50 |
| Accounts receivable | Luoding Xingfa Xingji Agriculture and Animal Husbandry Development Co., Ltd. | - | - | 6,600.00 | 144.81 |
| Accounts receivable | Guangdong Haihaowan Development Co., Ltd. | - | - | 2,867.50 | 62.91 |
(2) Payables to related parties
| Item | Related party | 2024.12.31 | 2023.12.31 |
| Notes payable | Alaer Ruili Heng Sheng Protein Co., Ltd | 5,945,000.00 | 71,900,000.00 |
| Notes payable | Wujiaqu Taikun Plant Protein Co., Ltd | 10,935,000.00 | 13,275,000.00 |
| Contract liabilities | Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | 878,426.57 | 561,196.37 |
| Account payables | Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. | 77,453.38 | 54,339.50 |
| Account payables | Sichuan Smart Fishing Machinery Technology Co., Ltd. | 1,672.05 | - |
| Non-current liabilities within 1 year | Mingzhong Chen | - | 461,241.06 |
XII. Share-based Payments
1. Summary of share-based payments
| Type of grantee | Granted in the Current Period | Exercised in the Current Period | Vested in the Current Period | Expired in the Current Period | ||||
| Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | Number of shares | Amount | |
| First grant of stock option incentive plan in 2021 (Note 1) | - | - | - | - | - | - | 7,231,809.13 | 191,570,623.94 |
| Stock option incentive plan reserved awarded in 2021 (Note 2) | - | - | - | - | - | - | 1,956,390.00 | 26,254,753.80 |
| Grants of stock options under the Stock Option Plan in 2024 (Note 3) | 32,382,180.00 | 615,431,426.45 | - | - | - | - | 16,191,090.00 | 300,454,818.91 |
| Employee Shareholding plan in 2024 (Note 4) | 6,715,461.00 | 158,014,797.33 | - | - | - | - | 3,357,730.50 | 79,007,398.67 |
| Total | 39,097,641.00 | 773,446,223.78 | - | - | - | - | 28,737,019.63 | 597,287,595.32 |
Note 1: The initial grant of the 2021 Stock Option Incentive Plan lapsed during the current period due tothe inability to meet the exercise conditions during the fourth exercise period and some of the stock optionincentive recipients of the first grant left their jobs or were released from labor relations, violatedprofessional ethics or damaged the interests of the Company, and the stock options granted to them whichhad not yet met the conditions for exercise.Note 2: The lapsing of the reserved grants under the 2021 Stock Option Incentive Plan for the currentperiod was due to the inability to meet the exercise conditions during the third exercise period, as well asthe fact that some of the incentive recipients of the reserved grants of stock options left their jobs orterminated their employment relationships, violated professional ethics or harmed the interests of theCompany, and one of the incentive recipients was elected to be a Supervisor of the Company, and the stockoptions granted to him that had not yet met the exercise conditions were canceled for the current period.Note 3: The Company held the first extraordinary shareholders' meeting of 2024 on March 20, 2024 toapprove the resolution related to the 2024 Stock Option Incentive Plan and the nineteenth meeting of thesixth session of the Board of Directors on April 19, 2024 to consider the granting of a total of32,382,180,000 stock options. The vesting is divided into two phases. The first vesting period becameineffective in this period due to the failure to meet the vesting conditions.Note 4: On March 20, 2024, the Company held the first extraordinary shareholders' meeting of 2024 toapprove the resolution related to the 2024 Employee Stock Purchase Plan, a total of 6,715,461 shares weregrante. The vesting is divided into two phases. The first vesting period became ineffective in this perioddue to the failure to meet the vesting conditions.Stock options or other equity instruments issued and outstanding at the end of December 31, 2024
| Type of grantee | Stock options issued and outstanding at the end of 2024.12.31 | Other equity instruments issued and outstanding at the end of 2024.12.31 | ||
| Range of exercise prices | Remaining term of the contract | Range of exercise prices | Remaining term of the contract | |
| 2021 Stock Option Incentive Plan Initial Grant | RMB59.21 | 5.33-29.33 months | - | - |
| 2021 Stock Option Incentive Plan Reserved for grant | RMB59.21 | 4.50-28.50 months | - | - |
| 2024 Grant Stock Option Plan | RMB29.96 | 16.30-28.30 months | - | - |
2. Information on equity-settled share-based payments
| Method to determine the fair value of equity instruments at grant dates | Using Black-Scholes option pricing model to calculate fair value of the Company’s share options. Employee shareholding plan is calculated based on the difference between the closing price on the grant date and the exercise price. |
| Significant parameters of fair value of equity instruments at grant date | Risk-free rate, historical stock price volatility, dividend yield |
| Basis for determining the number of equity instruments for which options are exercisable | When the equity instruments granted for each period satisfy the performance conditions set by the Company for the corresponding judgment period. |
| Reasons for significant differences between current and prior period estimates | None. |
| Accumulated amount in capital reserve for equity-settled payment | 718,177,057.02 |
3. Information on cash-settled share-based payments
No such events occurred during the reporting period.
4. Current share payment expenses
| Type of granting object | Expenses for equity-settled share-based payment | Expenses for cash-settled share-based payment |
| First grant of stock option incentive plan in 2021 | -82,610,742.81 | - |
| Stock option incentive plan reserved awarded in 2021 | -6,381,092.05 | - |
| Grant stock option plan in 2024 | 106,836,660.12 | - |
| Employee Shareholding plan in 2024 | 28,672,039.84 | - |
| Total | 46,516,865.10 | - |
5. Information on modification and termination of share-based payments
No such event during the reporting period.XIII. Commitments and Contingencies
1. Significant Commitments
As at December 31, 2024, there is no significant commitment to be disclosed.
2. Contingencies
Contingent liabilities arising from guarantee provided to other entities and related financial impacts.
As at December 31, 2024, the Group provided guarantees for the following loans:
| Company Name | Guarantee | Amount (RMB ten thousand) | Period | Note |
| 1.Subsidiaries | ||||
| Wholly-owned subsidiaries and holding subsidiaries within the scope of consolidation | Bank loan financing and payables for the purchase of raw materials | 183,160.67 | 1-10 years | |
| 2. Other companies | ||||
| Farmers and distributors of holding subsidiaries | Guarantees for financings to purchase the Group’s products | 200,056.40 | 1-3 years | |
| Total | 383,217.07 |
As at December 31, 2024, the Group had no other contingencies to be disclosed.XIV. Post balance sheet events
1. Significant non-adjustment events after the balance sheet date
As at April 18, 2025, the Group had no material post-balance sheet non-adjusting events to be disclosed.
2. Profit appropriations after balance sheet date
| Profit distributions or dividends proposed | According to the profit distribution plan approved by the Board of Directors on April 18, 2025, it is planned to issue a cash dividend of RMB11 (tax inclusive) per 10 shares based on the total capital stock of the repurchased shares deducted from the share registration date when the future distribution plan is implemented (that is, the amount of share capital that can participate in the distribution on the share registration date when the future distribution plan is implemented). The distribution plan will be implemented after the approval is granted from the general meeting of shareholders. |
3. Significant sales returns
As at April 18, 2025, the Group has no material sales returns to be disclosed.
4. Other events after the balance sheet date
As at April 18, 2025, there is no such event to be disclosed.XV. Other Significant Events
1. Correction of Accounting Errors in Prior Periods
There was no correction of accounting errors in prior periods during the reporting period.
2. Significant Debt Restructuring
There was no significant debt restructuring during the reporting period.
3. Significant Asset Swap
There was no significant asset swap during the reporting period.
4. Transfer and Sales of significant assets
There was no such event during the reporting period.
5. Division report
According to the Group's internal organizational structure, management requirements and internal reporting
system, the Group's operating business is divided into five reporting divisions. These reporting divisions
are determined on the basis of financial information required by the Company's daily internal management.
The Group's management periodically evaluates the results of operations of these reporting divisions to
determine the allocation of resources to them and to evaluate their performance.
(1) The Group's reporting divisions include:
Feed division, producing and selling feed and related products;
Animal protection division, producting and selling of animal protection and related products;
Aquaculture Division, raising and selling agricultural products and related products;Trading division, selling raw materials related to feed and animal protection;Other divisions, headquarters of the Group and divisions that support the operations of the above divisions.Division reports information according to the accounting policies adopted in each division to report to management and measurement standard, the accounting policies andmeasurement basis and when preparing financial statements of the accounting policy and consistent measurement basis.
(2) Divisions profit or loss, assets and liabilities
| Current or end of period | Feed division | Animal protection division | Aquaculture division | Trading division | Other divisions | Eliminate | Total |
| Operating income | 98,684,957,926.61 | 1,110,204,229.82 | 19,079,812,184.45 | 14,294,905,960.40 | 567,220,886.88 | -19,136,044,525.87 | 114,601,056,662.29 |
| Including: income from third party | 91,202,471,546.02 | 845,785,008.00 | 18,826,479,018.92 | 3,435,411,501.16 | 290,909,588.19 | - | 114,601,056,662.29 |
| Income from inter-division | 7,482,486,380.59 | 264,419,221.82 | 253,333,165.53 | 10,859,494,459.24 | 276,311,298.69 | -19,136,044,525.87 | - |
| Operating Costs and expenses | 94,443,388,975.62 | 947,128,963.08 | 16,996,189,842.16 | 14,339,913,534.31 | 983,498,429.96 | -19,044,929,908.97 | 108,665,189,836.16 |
| Net profit | 3,644,022,612.00 | 137,586,963.00 | 1,788,351,825.52 | 8,606,620.40 | -74,993,680.31 | -827,478,742.34 | 4,676,095,598.27 |
| Total assets | 31,890,970,128.26 | 1,827,989,414.41 | 13,147,858,556.00 | 4,782,622,433.13 | 29,582,202,340.00 | -33,091,056,212.10 | 48,140,586,659.70 |
| Total liabilities | 16,993,832,963.82 | 939,861,345.99 | 8,252,628,078.71 | 3,075,114,654.75 | 15,687,926,997.03 | -21,905,211,050.53 | 23,044,152,989.77 |
| Prior period or end of prior period | Feed division | Animal protection division | Aquaculture Division | Trading division | Other divisions | Eliminate | Total |
| Operating income | 103,283,277,745.16 | 1,380,643,464.21 | 15,510,539,038.72 | 14,039,590,215.60 | 502,303,481.13 | -18,599,185,201.85 | 116,117,168,742.97 |
| Including: income from third party | 95,956,237,795.73 | 1,094,616,254.63 | 15,492,073,854.16 | 3,400,500,883.54 | 173,739,954.91 | - | 116,117,168,742.97 |
| Prior period or end of prior period | Feed division | Animal protection division | Aquaculture Division | Trading division | Other divisions | Eliminate | Total |
| Income from inter-division | 7,327,039,949.43 | 286,027,209.58 | 18,465,184.56 | 10,639,089,332.06 | 328,563,526.22 | -18,599,185,201.85 | - |
| Operating Costs and expenses | 98,878,111,978.39 | 1,072,959,904.28 | 15,693,878,048.60 | 13,862,530,380.85 | 860,388,930.27 | -17,913,981,812.83 | 112,453,887,429.56 |
| Net profit | 3,484,907,155.65 | 233,716,099.41 | -322,104,189.94 | 302,668,337.22 | -28,139,712.85 | -799,532,065.27 | 2,871,515,624.22 |
| Total assets | 29,992,987,319.00 | 1,726,224,483.99 | 12,347,600,237.72 | 3,361,717,469.63 | 29,210,810,508.49 | -31,892,604,243.22 | 44,746,735,775.61 |
| Total liabilities | 16,529,177,628.39 | 1,056,895,195.58 | 9,499,377,812.35 | 1,684,883,398.86 | 16,568,590,350.42 | -21,503,505,535.38 | 23,835,418,850.22 |
6. Others
There were no other significant events to be disclosed during the reporting period.
XVI. Notes to the Company’s financial statements
1. Other receivables
| Item | 2024.12.31 | 2023.12.31 |
| Interest receivables | - | - |
| Dividend receivables | 359,974,200.00 | - |
| Other receivables | 9,604,639,149.06 | 11,769,046,063.77 |
| Total | 9,964,613,349.06 | 11,769,046,063.77 |
(1) Dividend receivables
| Item | 2024.12.31 | 2023.12.31 |
| Guangdong Haid Pet Co., Ltd. | 24,240,000.00 | - |
| Liyang Jiu He Feed Co., Ltd. | 22,256,000.00 | - |
| Shandong Daxin Group Co., Ltd. | 214,637,700.00 | - |
| Haid International Group Limited | 98,840,500.00 | - |
| Subtotal | 359,974,200.00 | - |
| Less: Loss allowance | - | - |
| Total | 359,974,200.00 | - |
(2) Other receivables
① Other receivables by aging
| Aging | 2024.12.31 | 2023.12.31 |
| Within 1 year | 9,145,370,367.41 | 11,760,586,478.27 |
| 1 to 2 years | 454,146,513.35 | 3,071,617.00 |
| 2 to 3 years | 2,135,000.00 | 4,965,925.40 |
| 3 to 4 years | 2,943,510.00 | 774,640.00 |
| 4 to 5 years | 354,640.00 | - |
| Over 5 years | - | 60,809.00 |
| Subtotal | 9,604,950,030.76 | 11,769,459,469.67 |
| Less: Loss allowance | 310,881.70 | 413,405.90 |
| Total | 9,604,639,149.06 | 11,769,046,063.77 |
② Other receivables disclosed by nature
| Item | 2024.12.31 | 2023.12.31 |
| Guarantee deposit | 1,773,473.65 | 1,430,171.38 |
| Futures margin | - | 20,045,550.00 |
| Receivable due from related parties with the scope of consolidation | 9,585,943,939.28 | 11,726,869,013.02 |
| Petty cash | 100,739.66 | 339,079.55 |
| Others | 17,131,878.17 | 20,775,655.72 |
| Total | 9,604,950,030.76 | 11,769,459,469.67 |
③Additions, recoveries or reversals of provision during the current period
| Loss allowance | The first stage | The second stage | The third stage | Total |
| Expected credit losses over the next 12 months | Lifetime expected credit losses (no credit impairment occurred) | Lifetime expected credit losses (credit impairment has occurred) | ||
| Balance as of January 1, 2024 | 413,405.90 | - | - | 413,405.90 |
| Movement during the current period: | ||||
| - Transfer to the second stage | - | - | - | - |
| - Transfer to the third stage | - | - | - | - |
| - Reverse to the second stage | - | - | - | - |
| - Reverse to the first stage | - | - | - | - |
| Additions | -102,524.20 | - | - | -102,524.20 |
| Reversals | - | - | - | - |
| Write-offs | - | - | - | - |
| Balance as of December 31, 2024 | 310,881.70 | - | - | 310,881.70 |
There were no significant recoveries or reversals of loss allowance during the current period.
④ There were no written-off in other receivables during current period.
⑤ Top five closing balances of other receivables by debtor
| Debtor | Nature | Other receivables as of December 31, 2024 | Aging | Proportion of the total closing balance of other receivables (%) | Loss allowance as of December 31, 2024 |
| Company 6 | Receivable due from related parties with the scope of consolidation | 1,108,441,843.08 | Within one year | 11.54 | - |
| Company 7 | Receivable due from related parties with the scope of consolidation | 476,234,894.40 | Within one year | 4.96 | - |
| Company 8 | Receivable due from related parties with the scope of consolidation | 458,937,120.08 | Within one year | 4.78 | - |
| Company 9 | Receivable due from related parties with the scope of consolidation | 409,089,097.96 | Within one year | 4.26 | - |
| Company 10 | Receivable due from related parties with the scope of consolidation | 317,181,930.35 | Within one year | 3.30 | - |
| Total | 2,769,884,885.87 | 28.84 | - |
2. Long-term equity investments
| Item | 2024.12.31 | 2023.12.31 | ||||
| Book value | Provision for impairment | Carrying amount | Book value | Provision for impairment | Carrying amount | |
| Investment in subsidiaries | 11,192,202,066.55 | 78,999,515.19 | 11,113,202,551.36 | 10,975,910,004.18 | 8,112,320.66 | 10,967,797,683.52 |
| Investment in associates | 9,864,033.29 | - | 9,864,033.29 | 10,160,776.56 | - | 10,160,776.56 |
| Total | 11,202,066,099.84 | 78,999,515.19 | 11,123,066,584.65 | 10,986,070,780.74 | 8,112,320.66 | 10,977,958,460.08 |
(1) Investment in subsidiaries
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Guangzhou Runchuan Investment Co., Ltd. | 1,469,812,949.78 | - | - | - | - | - | 1,469,812,949.78 | - |
| Guangzhou Yitun Swine Industry Investment Co., Ltd. | 10,995,670.65 | - | 2,085,615.13 | - | - | - | 13,081,285.78 | - |
| Enping Fengwo Agriculture and Animal Husbandry Co., Ltd. | 893,004.94 | - | 69,300.72 | - | - | - | 962,305.66 | - |
| Yangxi Fengwo Ecological Agriculture Co., Ltd. | 1,605,155.24 | - | 131,804.49 | - | - | - | 1,736,959.73 | - |
| Yangjiang Yangdong Fengwo Agriculture and Animal Husbandry Co., Ltd. | 366,752.96 | - | 95,740.55 | - | - | - | 462,493.51 | - |
| Enping Yitun Ecological Agriculture Co., Ltd. | 606,448.02 | - | 190,709.24 | - | - | - | 797,157.26 | - |
| Gaozhou Sanhe Animal Husbandry Co., Ltd. | 628,943.64 | - | -41,635.54 | - | - | - | 587,308.10 | - |
| Yingde Yitun Ecological Agriculture Co., Ltd. | 293,990.35 | - | -20,982.91 | - | - | - | 273,007.44 | - |
| Hunan Yitun Ecological Agriculture Co., Ltd. | 1,626,000.54 | - | 82,546.09 | - | - | - | 1,708,546.63 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Yueyang Yitun Agriculture and Animal Husbandry Co., Ltd. | 698,005.20 | - | 30,590.51 | - | - | - | 728,595.71 | - |
| Guigang City Tantang District Yitun Ecological Agriculture Co., Ltd. | 12,282.92 | - | - | - | - | - | 12,282.92 | - |
| Pingnan Yitun Ecological Agriculture Co., Ltd. | 1,308,109.63 | - | -10,408.11 | - | - | - | 1,297,701.52 | - |
| Pingguo Yitun Ecological Agriculture Co., Ltd. | 236,594.94 | - | 34,252.20 | - | - | - | 270,847.14 | - |
| Hengshan Yitun Ecological Agriculture Co., Ltd. | 1,540,326.90 | - | 13,717.80 | - | - | - | 1,554,044.70 | - |
| Guigang City Gangbei District Yitun Ecological Agriculture Co., Ltd. | 998,719.03 | - | 55,194.90 | - | - | - | 1,053,913.93 | - |
| Duyun Yitun Ecological Agriculture Co., Ltd. | 842,567.53 | - | -24,403.90 | - | - | - | 818,163.63 | - |
| Rongjiang Yitun Ecological Agriculture Co., Ltd. | 112,820.48 | - | 11,771.34 | - | - | - | 124,591.82 | - |
| Binyang Yitun Ecological Agriculture Co., Ltd. | 1,168,210.89 | - | -42,014.21 | - | - | - | 1,126,196.68 | - |
| Yicheng Yitun Ecological Agriculture Co., Ltd. | 743,604.61 | - | 37,408.90 | - | - | - | 781,013.51 | - |
| Zixing Yitun Ecological Agriculture Co., Ltd. | 287,645.48 | - | 74,573.53 | - | - | - | 362,219.01 | - |
| Guigang Donghuang Breeding Co., Ltd. | 300,799.09 | - | 16,987.44 | - | - | - | 317,786.53 | - |
| Shaoguan Zhenjiang Yitun Ecological Agriculture Co., Ltd. | 1,337,614.63 | - | 209,181.76 | - | - | - | 1,546,796.39 | - |
| Laizhou Zhizhuren Animal Husbandry Co., Ltd. | 315,342.67 | - | 54,710.17 | - | - | - | 370,052.84 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Qinzhou Yitun Ecological Agriculture Co., Ltd. | 139,712.39 | - | 38,116.05 | - | - | - | 177,828.44 | - |
| Feicheng He Ruifeng Agricultural Science and Technology Co., Ltd. | 581,204.70 | - | 39,064.20 | - | - | - | 620,268.90 | - |
| Weifang Xuheng Agricultural Science and Technology Co., Ltd. | 210,357.62 | - | -45,831.12 | - | - | - | 164,526.50 | - |
| Gaotang Huayu Swine Co., Ltd. | 115,277.89 | - | -4,841.72 | - | - | - | 110,436.17 | - |
| Guizhou Aikexin Swine Breeding Co., Ltd. | 546,446.92 | - | 220,665.25 | - | - | - | 767,112.17 | - |
| Binyang County Hejiyitun Ecological Agriculture Co., Ltd. | 172,186.39 | - | 45,721.64 | - | - | - | 217,908.03 | - |
| Huayuan Yitun Ecological Agriculture Co., Ltd. | 158,219.35 | - | 155.75 | - | - | - | 158,375.10 | - |
| Yingde Yitun Pig Breeding Co., Ltd. | 39,119.14 | - | -6,922.27 | - | - | - | 32,196.87 | - |
| Hengnan Yitun Ecological Agriculture Co., Ltd. | 173,934.12 | - | 13,800.92 | - | - | - | 187,735.04 | - |
| Longan County Yitun Ecological Agriculture Co., Ltd. | 148,944.24 | - | 49,537.65 | - | - | - | 198,481.89 | - |
| Youxian Yitun Ecological Agriculture Co., Ltd. | 23,228.64 | - | 80,721.76 | - | - | - | 103,950.40 | - |
| Wengyuan County Yitun Pig Breeding Co., Ltd. | 9,353.47 | - | -5,138.59 | - | - | - | 4,214.88 | - |
| Fufeng County Yitun Ecological Agriculture Co., Ltd. | 583,916.37 | - | 103,382.56 | - | - | - | 687,298.93 | - |
| Linyou Yitun Ecological | 160,359.66 | - | 55,546.73 | - | - | - | 215,906.39 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Agriculture Co., Ltd. | ||||||||
| Yantai Yitun Ecological Agriculture Co., Ltd. | 358,538.60 | - | 17,442.92 | - | - | - | 375,981.52 | - |
| Yantai Zhizhuren Animal Husbandry Co., Ltd. | 169,925.36 | - | -3,101.87 | - | - | - | 166,823.49 | - |
| Hunan Yitun Technology Co., Ltd. | 180,487.95 | - | 99,184.30 | - | - | - | 279,672.25 | - |
| Pingnan Haid Feed Co., Ltd. | 35,415.24 | - | 177,938.30 | - | - | - | 213,353.54 | - |
| Heyuan Yitun Agricultural Development Co., Ltd. | 200,193.33 | - | 72,866.76 | - | - | - | 273,060.09 | - |
| Yangjiang Peiqi Breeding Service Co., Ltd. | - | - | 85,120.46 | - | - | - | 85,120.46 | - |
| Weifang Yidou Ecological Agriculture Co., Ltd. | - | - | 13,196.97 | - | - | - | 13,196.97 | - |
| Guilin Yibo Ecological Agriculture Co., Ltd. | - | - | 46,189.43 | - | - | - | 46,189.43 | - |
| Hengyang County Jisheng Agriculture and Animal Husbandry Development Co., Ltd. | 127,754.10 | - | 13,802.33 | - | - | - | 141,556.43 | - |
| Chuzhou Yigu Ecological Agriculture Co., Ltd. | - | - | 34,641.99 | - | - | - | 34,641.99 | - |
| Zhangzhou Yidu Ecological Agriculture Development Co., Ltd. | - | - | 23,754.56 | - | - | - | 23,754.56 | - |
| Ruyuan County Yipu Pig Breeding Co., Ltd. | 35,652.37 | - | 50,629.46 | - | - | - | 86,281.83 | - |
| Guangdong Yibuang Supply Chain Management Co., Ltd. | - | - | 2,453,990.93 | - | - | - | 2,453,990.93 | - |
| Luoding Yitun Ecological Agriculture Co., Ltd. | 368,530.00 | - | 69,622.44 | - | - | - | 438,152.44 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Gaozhou Haiyuan Agriculture Co., Ltd. | 291,172.15 | - | 9,852.24 | - | - | - | 301,024.39 | - |
| Sichuan Hailinger Biopharmaceutical Co., Ltd. | 2,126,011.74 | - | -173,359.59 | - | - | - | 1,952,652.15 | - |
| Guangzhou Haiwei Feed Co., Ltd. | 17,870,991.23 | - | 192,243.04 | - | - | - | 18,063,234.27 | - |
| Guangzhou Rongchuan Feed Co., Ltd. | 15,441,485.06 | - | 8,536.66 | - | - | - | 15,450,021.72 | - |
| Foshan Haihang Feed Co., Ltd. | 25,437,765.07 | - | 229,495.23 | - | - | - | 25,667,260.30 | - |
| Maoming Haihang Feed Co., Ltd. | 523,619.70 | - | 67,143.45 | - | - | - | 590,763.15 | - |
| Guangzhou Dachuan Feed Co., Ltd. | 20,495,501.77 | - | -750,879.02 | - | - | - | 19,744,622.75 | - |
| Hubei Haid Feed Co., Ltd. | 36,074,891.01 | - | 55,799.42 | - | - | - | 36,130,690.43 | - |
| Guangdong Hinter Biotechnology Group Co., Ltd. | 90,396,596.43 | - | -201,104.01 | - | - | - | 90,195,492.42 | - |
| Guangzhou Haishengyuan Biotechnology Co., Ltd. | 11,642.38 | - | - | - | - | - | 11,642.38 | - |
| Guangzhou Mutai Feed Technology Co., Ltd. | 1,123,624.73 | - | -11,978.48 | - | - | - | 1,111,646.25 | - |
| Zhuhai Haiyiyuan Supply Chain Management Co., Ltd. | 18,714.67 | - | 435,037.34 | - | - | - | 453,752.01 | - |
| Shaanxi Haid Agriculture and Animal Husbandry Co., Ltd. | 13,644,475.95 | - | -33,850.45 | - | - | - | 13,610,625.50 | - |
| Yangling Haid Feed Co., Ltd. | 277,119.25 | - | 38,908.69 | - | - | - | 316,027.94 | - |
| Gansu Haid Feed Co., Ltd. | 291,724.91 | - | 117,962.24 | - | - | - | 409,687.15 | - |
| Weinan Haid Feed Co., Ltd. | 244,971.12 | - | 106,626.85 | - | - | - | 351,597.97 | - |
| Wuwei Haid Feed Co., Ltd. | 23,651.50 | - | 14,448.59 | - | - | - | 38,100.09 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Baoji Haid Agriculture and Animal Husbandry Co., Ltd. | 62,926.58 | - | 77,621.69 | - | - | - | 140,548.27 | - |
| Hunan Haid Bio-Feed Co., Ltd. | 21,713,685.82 | - | -41,349.04 | - | - | - | 21,672,336.78 | - |
| Guangzhou Haihe Feed Co., Ltd. | 107,692,400.00 | - | - | - | - | - | 107,692,400.00 | - |
| Anyang Haiyue Feed Technology Co., Ltd. | 115,952.98 | - | -25,410.81 | - | - | - | 90,542.17 | - |
| Lanzhou Haid Feed Co., Ltd. | 25,785.02 | - | - | - | - | - | 25,785.02 | - |
| Yichang Haid Feed Co., Ltd. | 650,652.20 | - | 134,406.65 | - | - | - | 785,058.85 | - |
| Foshan Haipu Feed Co., Ltd. | 7,869,092.61 | - | -47,167.69 | - | - | - | 7,821,924.92 | - |
| Qingyuan Haibei Biotechnology Co., Ltd. | 22,164,321.07 | - | 1,095,375.24 | - | - | - | 23,259,696.31 | - |
| Zhanjiang Haid Feed Co., Ltd. | 26,108,596.79 | - | 58,636.21 | - | - | - | 26,167,233.00 | - |
| Jiangmen Haid Feed Co., Ltd. | 86,866,261.47 | - | 732,650.16 | - | - | - | 87,598,911.63 | - |
| Chengdu Haid Biotechnology Co., Ltd. | 20,183,418.21 | - | 87,837.80 | - | - | - | 20,271,256.01 | - |
| Taizhou Haid Bio-Feed Co., Ltd. | 24,672,557.54 | - | 263,854.63 | - | - | - | 24,936,412.17 | - |
| Jingzhou Haid Feed Co., Ltd. | 107,036,641.06 | - | 443,287.52 | -88,600,000.00 | - | - | 18,879,928.58 | - |
| Ezhou Haid Feed Co., Ltd. | 6,187,887.27 | - | 104,985.84 | - | - | - | 6,292,873.11 | - |
| Dongguan Haid Feed Co., Ltd. | 24,616,115.25 | - | 125,243.64 | - | - | - | 24,741,358.89 | - |
| Fujian Haid Feed Co., Ltd. | 104,392,932.20 | - | 280,199.68 | -88,500,000.00 | - | - | 16,173,131.88 | - |
| Zhejiang Haid Feed Co., Ltd. | 101,874,930.93 | - | 29,221.51 | -88,100,000.00 | - | - | 13,804,152.44 | - |
| Guangxi Haid Feed Co., Ltd. | 96,123,678.79 | - | -40,471.82 | -74,600,000.00 | - | - | 21,483,206.97 | - |
| KINGHILL HOLDINGS PTE.LTD. | 650,767,755.32 | - | 314,995,385.00 | - | - | - | 965,763,140.32 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Haid Egypt Co.,Ltd | 350,268.87 | - | - | - | - | - | 350,268.87 | - |
| PT.HAIDA AGRICULTURE INDONESIA | 989,324.94 | - | - | - | - | - | 989,324.94 | - |
| PT.HAIDA SURABAYA TRADING | 71,468.91 | - | - | - | - | - | 71,468.91 | - |
| PT HISENOR TECHNOLOGY INDONESIA | 135,306.68 | - | - | - | - | - | 135,306.68 | - |
| Jiangxi Haid Feed Co., Ltd. | 77,013,358.27 | - | -43,702.83 | - | - | - | 76,969,655.44 | - |
| Guangzhou Haid Feed Co., Ltd. | 14,177,508.29 | - | 41,546.68 | - | - | - | 14,219,054.97 | - |
| Guangdong Hisenor Group Co., Ltd. | 9,111,757.47 | - | 190,988.04 | - | - | - | 9,302,745.51 | - |
| Zhanjiang Hisenor Marine Biotechnology Co., Ltd. | 1,507,363.56 | - | -141,495.72 | - | - | - | 1,365,867.84 | - |
| Zhanjiang Haijingzhou Marine Biotechnology Co., Ltd. | 399,769.32 | - | -72,230.66 | - | - | - | 327,538.66 | - |
| Hainan Hisenor Marine Biotechnology Co., Ltd. | 3,736,729.34 | - | -358,099.09 | - | - | - | 3,378,630.25 | - |
| Zhangzhou Haijingzhou Marine Biotechnology Co., Ltd. | 712,010.05 | - | -47,607.02 | - | - | - | 664,403.03 | - |
| Nantong Haijingzhou Biological Technology Co., Ltd. | 198,532.22 | - | 10,825.07 | - | - | - | 209,357.29 | - |
| Shanwei Haijingzhou Marine Biological Technology Co., Ltd. | 617,132.63 | - | -32,587.77 | - | - | - | 584,544.86 | - |
| Guangzhou Hailingxian Food Co., Ltd. | 40,340.17 | - | 21,498.70 | - | - | - | 61,838.87 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Dongying Haijingzhou Biotechnology Co., Ltd. | 168,590.06 | - | -8,387.59 | - | - | - | 160,202.47 | - |
| Zhuhai Haixing Agricultural Aquatic Seed Technology Co., Ltd | 14,622,713.99 | - | 2,833,915.78 | - | - | - | 17,456,629.77 | - |
| Tangshan Haijingzhou Biotechnology Co., Ltd | 29,961.27 | - | 16,744.27 | - | - | - | 46,705.54 | - |
| Yancheng Haize Agricultural Seed Technology Co., Ltd. | - | - | 26,393.96 | - | - | - | 26,393.96 | - |
| Huizhou Haizenong Marine Biotechnology Co., Ltd. | - | - | 29,033.35 | - | - | - | 29,033.35 | - |
| Zhaqing Haizehui Fishery development Co., LTD | 48,706.57 | - | -2,637.80 | - | - | - | 46,068.77 | - |
| Qingyuan Haizehui Fishery Technology Co., Ltd. | 79,079.10 | - | -1,647.92 | - | - | - | 77,431.18 | - |
| Shanwei Haizenong Marine Biotechnology Co., Ltd. | 60,797.42 | - | -15,823.85 | - | - | - | 44,973.57 | - |
| Yongji Haijingzhou Fishery Science and Technology Co., Ltd. | 187,765.72 | - | -37,871.27 | - | - | - | 149,894.45 | - |
| Jingtai Haijingzhou Fishery Technology Co., Ltd. | 154,441.96 | - | -32,145.20 | - | - | - | 122,296.76 | - |
| Raoping Haizexin Marine Biotechnology Co., Ltd. | 10,835.05 | - | -2,568.14 | - | - | - | 8,266.91 | - |
| Zhuhai Haizexin Marine Biotechnology Co., Ltd. | - | - | 20,455.35 | - | - | - | 20,455.35 | - |
| Rongcheng Rongchuan Biological Technology Co., Ltd. | 308,646.15 | - | 165,478.45 | - | - | - | 474,124.60 | - |
| Rongcheng Yandunjiao Fish Meal Co., Ltd. | 13,886.34 | - | -3,236.99 | -10,649.35 | - | - | - | - |
| Zhenyuan Haisheng Protein | - | - | 23,094.76 | - | - | - | 23,094.76 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Feed Co., Ltd. | ||||||||
| Guangze Haisheng Biotechnology Co., Ltd. | - | - | 46,189.52 | - | - | - | 46,189.52 | - |
| Haid Supply Chain Management (Zhuhai) Co., Ltd | 24,100,000.00 | - | 2,912,492.52 | - | - | - | 27,012,492.52 | - |
| Sanya Fengmu Agricultural Development Co., Ltd. | 26,036.93 | - | 14,836.82 | - | - | - | 40,873.75 | - |
| Guangzhou Anan Logistics Co., Ltd. | 292,696.60 | - | 36,238.09 | - | - | - | 328,934.69 | - |
| Xiyu Haisheng (Guangzhou) Supply Chain Co., Ltd. | 81,338.49 | - | 65,624.65 | - | - | - | 146,963.14 | - |
| Sihui Haifeng Ecological Agriculture Co., Ltd. | 512,728.16 | - | 115,856.30 | - | - | - | 628,584.46 | - |
| Ezhou Haifeng Ecological Agriculture Co., Ltd. | 198,748.37 | - | 37,861.65 | - | - | - | 236,610.02 | - |
| Sichuan Haimufeng Agriculture Co., Ltd. | 94,157.93 | - | 33,840.98 | - | - | - | 127,998.91 | - |
| Maoming Hailong Feed Co., Ltd. | 95,238,806.22 | - | 313,131.46 | -82,100,000.00 | - | - | 13,451,937.68 | - |
| Nanchang Haid Biotechnology Co., Ltd. | 7,000,931.89 | - | 44,209.94 | - | - | - | 7,045,141.83 | - |
| Zhuhai Rongchuan Feed Co., Ltd. | 44,324,410.49 | - | -318,106.65 | - | - | - | 44,006,303.84 | - |
| Jieyang Haid Feed Co., Ltd. | 5,154,835.93 | - | -76,641.85 | - | - | - | 5,078,194.08 | - |
| Zhuhai Ronghai Breeding Technology Co., Ltd. | 199,324.38 | - | 863.47 | - | - | - | 200,187.85 | - |
| Foshan Sanshui Fanling Feed Co., Ltd. | 16,683,532.59 | - | 48,142.41 | - | - | - | 16,731,675.00 | - |
| Dalian Haid Rongchuan Trading Co., Ltd. | 50,545,107.41 | - | 46,533.98 | - | - | - | 50,591,641.39 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Haid International Group Limited | 244,693,262.24 | - | -19,487.92 | - | - | - | 244,673,774.32 | - |
| HAID FEED COMPANY LIMITED | 726,642.02 | - | - | - | - | - | 726,642.02 | - |
| DONG NAI HAID FARM COMPANY LIMITED | 58,310.36 | - | - | - | - | - | 58,310.36 | - |
| SHENG LONG INTERNATIONAL LTD. | 262,308.02 | - | - | - | - | - | 262,308.02 | - |
| SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD | 2,790,734.50 | - | 451,869.72 | - | - | - | 3,242,604.22 | - |
| SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., LTD | - | - | 50,808.40 | - | - | - | 50,808.40 | - |
| LONG SHENG INTERNATIONAL CO.,LTD | 211,766.74 | - | 2,207.21 | - | - | - | 213,973.95 | - |
| THANG LONG(VINH LONG)BIOTECH CO.,LTD | 168,801.00 | - | 36,502.66 | - | - | - | 205,303.66 | - |
| Changzhou Haid Bio-Feed Co., Ltd. | 31,101,105.98 | - | 378,264.37 | - | - | - | 31,479,370.35 | - |
| Tianjin Haid Feed Co., Ltd. | 152,245,826.27 | - | 99,046.09 | - | - | - | 152,344,872.36 | - |
| Jiangmen A&T Xinhui Feed Co., Ltd. | 26,339,925.69 | - | 8,493.34 | - | - | - | 26,348,419.03 | - |
| Tianmen Haid Feed Co., Ltd. | 10,152,102.74 | - | 153,734.58 | - | - | - | 10,305,837.32 | - |
| Zhuhai Hailong Biotechnology Co., Ltd. | 21,218,693.14 | - | -172,378.57 | - | - | - | 21,046,314.57 | - |
| Yangjiang Haid Feed Co., Ltd. | 10,187,778.70 | - | -80,422.02 | - | - | - | 10,107,356.68 | - |
| Hengyang Yunyi Biotechnology Co., Ltd. | - | - | 173,460.56 | - | - | - | 173,460.56 | - |
| Guigang Haid Feed Co., Ltd. | 8,862,461.12 | - | -95,626.18 | - | - | - | 8,766,834.94 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Yiyang Haid Feed Co., Ltd. | 53,392,712.05 | - | 343,253.91 | -39,600,000.00 | - | - | 14,135,965.96 | - |
| Yiyang Dachuan Feed Co., Ltd. | - | - | 74,811.45 | - | - | - | 74,811.45 | - |
| Nantong Haid Biotechnology Co., Ltd. | 107,375,077.27 | - | 415,524.74 | - | - | - | 107,790,602.01 | - |
| Yunnan Haid Biotechnology Co., Ltd. | 9,828,912.06 | - | -94,968.83 | - | - | - | 9,733,943.23 | - |
| Guangzhou Mutai Biotechnology Co., Ltd. | 13,031,479.05 | - | 957,702.89 | - | - | - | 13,989,181.94 | - |
| Zhaoqing Haid Feed Co., Ltd. | 5,894,366.56 | - | -16,896.41 | - | - | - | 5,877,470.15 | - |
| Wuhan Aquaera Biotechnology Co., Ltd. | 5,625,047.36 | - | -9,941.80 | - | - | - | 5,615,105.56 | - |
| Shenzhen Longreat Trading Co., Ltd. | 1,534,798.46 | - | 47,420.23 | - | - | - | 1,582,218.69 | - |
| LANKING PTE.LTD. | 713,386,848.14 | - | 12,811,241.00 | - | - | - | 726,198,089.14 | - |
| Haid Lanking International Trading Inc. | 170,936.08 | - | -36,708.04 | - | - | - | 134,228.04 | - |
| SHENGLONG BIO-TECH(INDIA)PRIVATE LIMITED | 901,707.97 | - | 4,044.97 | - | - | - | 905,752.94 | - |
| HAI DUONG HAID COMPANY LIMITED | 1,015,307.91 | - | - | - | - | - | 1,015,307.91 | - |
| HAI DAI COMPANY LIMITED | 30,280.95 | - | - | - | - | - | 30,280.95 | - |
| VINH LONG HAI DAI CO.,LTD | 399,268.33 | - | - | - | - | - | 399,268.33 | - |
| BINH DINH HAI LONG CO.,LTD | 37,368.15 | - | - | - | - | - | 37,368.15 | - |
| Hunan Dongting Haid Feed Co., Ltd. | 22,754,033.71 | - | -8,749.70 | - | - | - | 22,745,284.01 | - |
| Zhangzhou Haid Feed Co., | 18,758,844.55 | - | -32,424.94 | - | - | - | 18,726,419.61 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Ltd. | ||||||||
| Anhui Haid Feed Co., Ltd. | 12,668,342.27 | - | 161,280.95 | - | - | - | 12,829,623.22 | - |
| Xiangtan Haid Feed Co., Ltd. | 22,051,604.01 | - | 88,890.45 | - | - | - | 22,140,494.46 | - |
| Guangzhou Changsheng Logistics Co., Ltd. | 10,639,426.26 | - | 35,114.67 | - | - | - | 10,674,540.93 | - |
| Guangdong Haid Pet Co., Ltd. | 500,000.00 | - | - | - | - | - | 500,000.00 | - |
| Shandong Haiding Agriculture and Animal Husbandry Co., Ltd. | 10,187,456.67 | - | 49,871,953.52 | - | - | - | 60,059,410.19 | - |
| Suixian Yuliang Haiding Feed Co., Ltd. | 239,623.35 | - | 119,186.88 | - | - | - | 358,810.23 | - |
| Yuncheng Haiding Hongda Feed Co., Ltd. | 507,282.30 | - | 23,137.55 | - | - | - | 530,419.85 | - |
| Jinan Haiding Farming and Animal Husbandry Co., Ltd. | 75,506.97 | - | 6,800.84 | - | - | - | 82,307.81 | - |
| Liaocheng Haiding Feed Co., Ltd. | 517,438.22 | - | 53,807.99 | - | - | - | 571,246.21 | - |
| Shanxian Zhongyi Haiding Feed Co., Ltd. | 1,165,413.57 | - | 158,039.56 | - | - | - | 1,323,453.13 | - |
| Xinxiang Haiding Feed Co., Ltd. | 93,209.54 | - | 64,457.67 | - | - | - | 157,667.21 | - |
| Xinxiang Hairuida Feed Co., Ltd. | 116,446.68 | - | 21,613.77 | - | - | - | 138,060.45 | - |
| Heze Haiding Feed Technology Co., Ltd. | 1,156,843.25 | - | 229,012.34 | - | - | - | 1,385,855.59 | - |
| Jining Haiding Feed Co., Ltd. | 543,364.60 | - | 232,612.40 | - | - | - | 775,977.00 | - |
| Feixian Hairuida Feed Co., Ltd. | 725,437.16 | - | 158,214.00 | - | - | - | 883,651.16 | - |
| Yinan Haiding Feed Co., Ltd. | 556,243.83 | - | 155,050.22 | - | - | - | 711,294.05 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Tengzhou Fengcheng Feed Co., Ltd. | 308,275.92 | - | -27,544.40 | - | - | - | 280,731.52 | - |
| Binzhou Haiding Feed Co., Ltd. | 373,195.54 | - | 106,577.09 | - | - | - | 479,772.63 | - |
| Linyi Haiding Feed Technology Co., Ltd. | 389,372.23 | - | 62,949.32 | - | - | - | 452,321.55 | - |
| Linyi Hedong Haiding Agriculture and Animal Husbandry Development Co., Ltd. | 309,393.28 | - | 152,102.46 | - | - | - | 461,495.74 | - |
| Junan Haiding Feed Co., Ltd. | 250,770.52 | - | 10,134.03 | - | - | - | 260,904.55 | - |
| Sihong Haiding Feed Co., Ltd. | 152,749.79 | - | -2,667.45 | - | - | - | 150,082.34 | - |
| Linyi Dingxin Farming Co., Ltd. | 199,616.24 | - | -14,924.28 | - | - | - | 184,691.96 | - |
| Henan Haiding Feed Co., Ltd. | 235,608.14 | - | 102,384.18 | - | - | - | 337,992.32 | - |
| Qingzhou Haidinghe Xinsheng Feed Co., Ltd. | 375,075.05 | - | 104,593.86 | - | - | - | 479,668.91 | - |
| Linyi Haiding Lusheng Feed Co., Ltd. | 69,344.10 | - | 39,800.11 | - | - | - | 109,144.21 | - |
| Qinggang Fengcheng Baizun Feed Co., Ltd. | - | - | 26,393.96 | - | - | - | 26,393.96 | - |
| Chengwu Fengcheng Feed Co., Ltd. | - | - | 34,939.42 | - | - | - | 34,939.42 | - |
| Weifang Binhai Haiding Feed Co., Ltd. | 5,379.41 | - | -1,023.98 | - | - | - | 4,355.43 | - |
| Linyi Dinghao Breeding Co., Ltd. | 86,789.71 | - | -18,728.63 | - | - | - | 68,061.08 | - |
| Xuzhou Hairuida Feed Co., Ltd. | 19,709.54 | - | 21,938.21 | - | - | - | 41,647.75 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Xuzhou Zhongyi Haiding Agriculture and Animal Husbandry Co., Ltd. | 17,400.37 | - | 57,145.63 | - | - | - | 74,546.00 | - |
| Lanling Haiding Hekangyuan Agriculture and Animal Husbandry Co., Ltd. | 111,954.88 | - | 13,863.36 | - | - | - | 125,818.24 | - |
| Linyi Haiding Biological Feed Co., Ltd. | - | - | 76,927.13 | - | - | - | 76,927.13 | - |
| Gaotang Haiding Agriculture and Animal Husbandry Co., Ltd. | 98,421.11 | - | 67,292.65 | - | - | - | 165,713.76 | - |
| Qingdao Dinghao Fengying International Trade Co., Ltd. | - | - | 27,367.49 | - | - | - | 27,367.49 | - |
| Juxian Haiding Feed Co., Ltd. | - | - | 215,603.47 | - | - | - | 215,603.47 | - |
| Xishui Haid Feed Co., Ltd. | 5,524,491.57 | - | 214,985.43 | - | - | - | 5,739,477.00 | - |
| Yancheng Haid Bio-Feed Co., Ltd. | 31,685,299.33 | - | - | - | - | - | 31,685,299.33 | - |
| Honghu Haid Feed Co., Ltd. | 8,996,524.87 | - | 45,769.06 | - | - | - | 9,042,293.93 | - |
| Kaifeng Haid Feed Co., Ltd. | 31,633,817.21 | - | 188,551.18 | - | - | - | 31,822,368.39 | - |
| Guangzhou Heshengtang Biotechnology Co., Ltd. | 3,330,000.00 | - | - | - | - | - | 3,330,000.00 | - |
| Guangzhou Heshengtang Veterinary Pharmaceutical Co., Ltd. | 22,482,264.89 | - | -167,100.16 | - | - | - | 22,315,164.73 | - |
| Guangdong Haid Livestock Veterinary Research Institute Co., Ltd. | 84,286,384.23 | - | -324,161.60 | - | -5,809,578.76 | - | 78,152,643.87 | 5,809,578.76 |
| Henan Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 6,797,386.66 | - | 24,752.80 | - | - | - | 6,822,139.46 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Anyang Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 309,391.52 | - | 31,065.03 | - | - | - | 340,456.55 | - |
| Henan Mugaole Feed Co., Ltd. | 414,949.06 | - | 122,595.23 | - | - | - | 537,544.29 | - |
| Suqian Haid Feed Co., Ltd. | 22,662,645.75 | - | 106,618.86 | - | - | - | 22,769,264.61 | - |
| Huaihua Haid Feed Co., Ltd. | 15,393,039.95 | - | -51,612.35 | - | - | - | 15,341,427.60 | - |
| Guangzhou Meinong Investment Management Co., Ltd. | 7,878,629.33 | - | - | - | - | - | 7,878,629.33 | - |
| Guangdong Hairuite Pet Nitribution Technology Co., Ltd. | 22,114,467.50 | - | 2,031,454.25 | - | - | - | 24,145,921.75 | - |
| Guangzhou Haijian Investment Co., Ltd. | 121,500,000.00 | - | - | - | - | - | 121,500,000.00 | - |
| Guangdong Bairong Aquatic Farming Group Co., Ltd. | 2,758,681.70 | - | -188,420.33 | - | - | - | 2,570,261.37 | - |
| Yangxin Bairong Aquatic Farming Co., Ltd. | 854,547.71 | - | -37,863.91 | - | - | - | 816,683.80 | - |
| Jingzhou Bairong Aquatic Farming Co., Ltd. | 409,122.46 | - | -38,046.29 | - | - | - | 371,076.17 | - |
| Shandong Bairong Aquatic Farming Co., Ltd. | 724,687.64 | - | 24,916.45 | - | - | - | 749,604.09 | - |
| Hainan Bairong Aquatic Farming Co., Ltd. | 696,777.22 | - | -94,457.53 | - | - | - | 602,319.69 | - |
| Zhaoqing Baishengyuan Aquatic Farming Co., Ltd. | 180,716.38 | - | 40,457.79 | - | - | - | 221,174.17 | - |
| Guangdong Baishengyuan Aquatic Farming Co., Ltd. | 85,698.83 | - | 134,166.91 | - | - | - | 219,865.74 | - |
| Hunan Innovation Biotechnology Limited | 7,244,216.78 | - | 63,991,345.44 | - | - | - | 71,235,562.22 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Guangzhou Haishengke Investment Co., Ltd. | 261,270,000.00 | - | - | -261,270,000.00 | - | - | - | - |
| Sanming Haid Feed Co., Ltd. | 36,215,394.43 | - | 36,865.63 | - | - | - | 36,252,260.06 | - |
| Qingyuan Haid Biotechnology Co., Ltd. | 14,258,361.43 | - | -296,021.63 | - | - | - | 13,962,339.80 | - |
| Xuancheng Haid Biotechnology Co., Ltd. | 5,743,708.77 | - | 35,085.24 | - | - | - | 5,778,794.01 | - |
| Guangdong Shunde Haid Biotechnology Co., Ltd. | 5,817,758.50 | - | -141,607.26 | - | - | - | 5,676,151.24 | - |
| Jiaxing Haid Yongwang Bio-Feed Co., Ltd. | 15,286,044.39 | - | 28,532.44 | - | - | - | 15,314,576.83 | - |
| Shijiazhuang Weike Biotechnology Co., Ltd. | 51,153,484.83 | - | -75,021.84 | - | - | - | 51,078,462.99 | - |
| Chongqing Haid Feed Co., Ltd. | 26,933,937.31 | - | 72,119.11 | - | - | - | 27,006,056.42 | - |
| Shenyang Haid Feed Co., Ltd. | 3,319,774.72 | - | 18,498.39 | - | - | - | 3,338,273.11 | - |
| Jiangsu Haihe Agriculture and Animal Husbandry Co., Ltd. | 7,088,238.62 | - | 115,508.10 | - | - | - | 7,203,746.72 | - |
| Xuzhou Haihe Feed Co., Ltd. | 263,593.09 | - | -39,142.75 | - | - | - | 224,450.34 | - |
| Lianyungang Haihe Feed Co., Ltd. | 627,169.06 | - | 153,570.20 | - | - | - | 780,739.26 | - |
| Xuzhou Haid Hexin Feed Co., Ltd. | 367,015.52 | - | 37,427.88 | - | - | - | 404,443.40 | - |
| Anshan Dachuan Feed Technology Co., Ltd. | 3,113,130.03 | - | - | - | - | - | 3,113,130.03 | - |
| Guangzhou Haiyuan Factoring Co., Ltd. | 50,178,105.12 | - | 99,985,687.65 | - | - | - | 150,163,792.77 | - |
| Haid Pet Care Co., Ltd. | 10,938,833.71 | - | 170,011,583.85 | - | - | - | 180,950,417.56 | - |
| Haid Pet Care (Weihai) Co., | 247,814.59 | - | 11,906.50 | - | - | - | 259,721.09 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Ltd. | ||||||||
| Ganzhou Haid Biotechnology Co., Ltd. | 52,708,113.60 | - | 12,410.49 | - | - | - | 52,720,524.09 | - |
| Foshan Haid Beacon Feed Co., Ltd. | 4,857,660.17 | - | 36,168.00 | -4,893,828.17 | - | - | - | - |
| Guangzhou Punong Investment Management Co., Ltd. | 4,600,000.00 | - | - | - | - | - | 4,600,000.00 | - |
| Shandong Fengying Food Co., Ltd. | 435,548.67 | - | 83,285.79 | - | - | - | 518,834.46 | - |
| Jiaxiang Haiying Food Co., Ltd. | 96,658.91 | - | -4,086.82 | - | - | - | 92,572.09 | - |
| Linxi Haiying Food Co., Ltd. | 105,630.67 | - | 9,338.00 | - | - | - | 114,968.67 | - |
| Yiyuan Haiying Food Co., Ltd. | 134,407.55 | - | -10,209.89 | - | - | - | 124,197.66 | - |
| Zouping Haiying Food Co., Ltd. | 153,729.26 | - | 4,625.26 | - | - | - | 158,354.52 | - |
| Binzhou Haiying Food Co., Ltd. | 48,284.56 | - | - | -48,284.56 | - | - | - | - |
| Guangzhou Yannong Investment Management Co., Ltd. | 19,758,109.00 | - | - | - | - | - | 19,758,109.00 | - |
| Liyang Jiu He Feed Co., Ltd. | 66,448,226.33 | - | 150,107.98 | - | - | - | 66,598,334.31 | - |
| Shaoguan Haid Biotechnology Co., Ltd. | 16,044,308.09 | - | 149,819.61 | - | - | - | 16,194,127.70 | - |
| Shandong Daxin Group Co., Ltd. | 287,207,113.52 | - | 51,803,833.22 | - | -39,459,654.06 | - | 299,551,292.68 | 39,459,654.06 |
| Weifang Daxin Feed Co., Ltd. | 170,961.30 | - | 95,014.78 | - | - | - | 265,976.08 | - |
| Yantai Daxin Feed Co., Ltd. | 338,091.86 | - | 55,226.71 | - | - | - | 393,318.57 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Linyi Yihe Feed Co., Ltd. | 691,480.61 | - | 256,008.31 | - | - | - | 947,488.92 | - |
| Jiangsu Daxin Feed Co., Ltd. | 277,743.48 | - | 47,140.22 | - | - | - | 324,883.70 | - |
| Shandong Daxin Agriculture and Animal Husbandry Technology Co., Ltd. | 136,342.64 | - | 108,216.65 | - | - | - | 244,559.29 | - |
| Liaocheng Daxin Feed Co., Ltd. | 205,514.24 | - | 0.03 | -205,514.27 | - | - | - | - |
| Laiyang Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 115,993.42 | - | 94,306.65 | - | - | - | 210,300.07 | - |
| Qingdao Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 45,588.04 | - | 39,176.79 | - | - | - | 84,764.83 | - |
| Linyi Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 73,006.41 | - | -27,415.62 | - | - | - | 45,590.79 | - |
| Yantai Zhizhuren Feed Co., Ltd. | 38,534.25 | - | -19,358.37 | -19,175.88 | - | - | - | - |
| Gaomi Haihe Agriculture and Animal Husbandry Technology Co., Ltd. | 61,720.92 | - | 65,628.16 | - | - | - | 127,349.08 | - |
| Qingdao Huaxin Feed Co., Ltd. | 105,393.74 | - | 58,373.44 | - | - | - | 163,767.18 | - |
| Linyi Zhizhuxia Breeding Technology Service Co., Ltd. | 70,549.92 | - | -18,118.38 | - | - | - | 52,431.54 | - |
| Huai’an Hailong Feed Co., Ltd. | 51,838,310.78 | - | 122,727.55 | - | - | - | 51,961,038.33 | - |
| Hunan Jinhuilong Technology Co., Ltd. | 51,628,747.07 | - | 273,141.21 | - | - | - | 51,901,888.28 | - |
| Shijiazhuang Huilong Feed Co., Ltd. | 88,264.70 | - | -3,806.49 | - | - | - | 84,458.21 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Handan Huilong Feed Co., Ltd. | 224,985.78 | - | -18,194.18 | - | - | - | 206,791.60 | - |
| Huai’an Huilong Feed Co., Ltd. | 79,667.14 | - | 30,363.78 | - | - | - | 110,030.92 | - |
| Fuzhou Haid Feed Co., Ltd. | 86,247,567.38 | - | 98,154.26 | - | - | - | 86,345,721.64 | - |
| Zhaoqing Gaoyao Haid Biotechnology Co., Ltd. | 82,550,792.50 | - | 326,235.98 | - | - | - | 82,877,028.48 | - |
| Nanning Haid Biotechnology Co., Ltd. | 123,095,460.63 | - | 1,102,197.37 | - | - | - | 124,197,658.00 | - |
| Guangzhou Haiyuan Microfinance Co., Ltd. | 503,004,097.42 | - | -359,027.97 | -300,000,000.00 | - | - | 202,645,069.45 | - |
| Jiangmen Rongchuan Feed Co., Ltd. | 186,372,623.55 | - | 649,297.48 | - | - | - | 187,021,921.03 | - |
| Chongqing Kaizhou Haid Biotechnology Co., Ltd. | 35,241,891.07 | - | 128,992.55 | - | - | - | 35,370,883.62 | - |
| Meizhou Haid Biotechnology Co., Ltd. | 63,506,379.86 | - | 80,888.28 | - | - | - | 63,587,268.14 | - |
| Yicheng Haid Biological Technology Co., Ltd. | 45,571,110.42 | - | 147,986.32 | - | - | - | 45,719,096.74 | - |
| Zhuhai Dachuan Biotechnology Co., LTD | 48,694,936.85 | - | -125,533.07 | - | - | - | 48,569,403.78 | - |
| Hexian Haid Biotechnology Co., Ltd. | 90,947,396.21 | - | 70,293,176.71 | - | - | - | 161,240,572.92 | - |
| Guangzhou Nansha Haid Technology Co., Ltd | 50,000,000.00 | - | - | - | - | - | 50,000,000.00 | - |
| Guangzhou Shunkang Aquaculture Co., Ltd. | 3,201,127.71 | - | - | -3,201,127.71 | - | - | - | - |
| Tianjin Rongchuan Feed Co., Ltd. | 164,870,691.85 | - | -112,513.75 | - | - | - | 164,758,178.10 | - |
| Zhanjiang Rongda Feed Co., Ltd. | 41,281,331.56 | - | -46,036.84 | - | - | - | 41,235,294.72 | - |
| Huainan Haid Biological | 85,100,016.93 | - | 248,864.88 | - | - | - | 85,348,881.81 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Feed Co., Ltd. | ||||||||
| Maoming Haid Biological Technology Co., Ltd. | 61,511,976.26 | - | 152,213.71 | - | - | - | 61,664,189.97 | - |
| Guangzhou Ronghai Breeding Technology Co., Ltd. | 24,505,721.30 | - | -95,465.41 | - | - | - | 24,410,255.89 | - |
| Zhongshan Ronghai Aquaculture Co., Ltd. | 1,645,247.54 | - | 177,132.92 | - | - | - | 1,822,380.46 | - |
| Guangzhou Rongda Aquatic Products Technology Co., Ltd. | 665,047.45 | - | 92,983.02 | - | - | - | 758,030.47 | - |
| Jiangmen Ronghai Aquaculture Technology Co., Ltd. | 288,967.40 | - | 67,660.27 | - | - | - | 356,627.67 | - |
| Zhongshan Yugezi Food Co., Ltd. | 346,929.92 | - | -88,440.14 | - | - | - | 258,489.78 | - |
| Guangxi Ronghai Fishery Co., Ltd. | 360,353.68 | - | 138,302.81 | - | - | - | 498,656.49 | - |
| Foshan Rongda Aquatic Seed Co., Ltd. | - | - | 61,366.05 | - | - | - | 61,366.05 | - |
| Sichuan Rongchuan Feed Co., Ltd. | 91,261,720.70 | - | 57,114.95 | - | - | - | 91,318,835.65 | - |
| Yulin Haid Feed Co., Ltd. | 45,571,106.37 | - | 34,262.54 | - | - | - | 45,605,368.91 | - |
| Sichuan Haile Agriculture and Animal Husbandry Co., Ltd. | 16,502,976.53 | - | 62,306.81 | - | - | - | 16,565,283.34 | - |
| Yichang Zhihai Agriculture and Animal Husbandry Co., Ltd. | 65,023.61 | - | 12,471.02 | - | - | - | 77,494.63 | - |
| Mianyang Zhonggui Feed Co., Ltd. | 81,857.84 | - | 37,442.06 | - | - | - | 119,299.90 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Dali Haiwang Feed Co., Ltd. | 194,141.36 | - | 17,671.00 | - | - | - | 211,812.36 | - |
| Yunnan Zhonggui Feed Co., Ltd. | 250,873.13 | - | -15,625.33 | - | - | - | 235,247.80 | - |
| Chongqing Zhihai Feed Co., Ltd. | 118,610.27 | - | 11,334.00 | - | - | - | 129,944.27 | - |
| Guiyang Haid Zhihai Feed Co., Ltd. | 790,518.32 | - | 22,781.54 | - | - | - | 813,299.86 | - |
| Qujing Zhihai Feed Co., Ltd. | 205,123.11 | - | 26,955.46 | - | - | - | 232,078.57 | - |
| Yibin Zhihai Feed Co., Ltd. | 523,016.56 | - | 493.20 | - | - | - | 523,509.76 | - |
| Guangzhou Xingnong Ecological Agriculture and Animal Husbandry Development Co., Ltd. | 29,917,467.31 | - | -92,347.70 | - | - | - | 29,825,119.61 | - |
| Qingyuan Ronghai Food Technology Co., Ltd. | 70,469,747.61 | - | 299,238.49 | - | - | - | 70,768,986.10 | - |
| Guangzhou Haiyin Financing Guarantee Co., Ltd. | 251,375,441.86 | - | 858,821.65 | - | - | - | 252,234,263.51 | - |
| Qinzhou Hailong Feed Co., Ltd. | 40,398,134.58 | - | 103,058.76 | - | - | - | 40,501,193.34 | - |
| Hainan Haid Biotechnology Co., Ltd. | 60,177,148.44 | - | 190,929.15 | - | - | - | 60,368,077.59 | - |
| Jiangsu Haixin Biotechnology Co., Ltd. | 24,808,584.96 | - | 30,990.21 | - | - | - | 24,839,575.17 | - |
| Gaoan Haid Biotechnology Co., Ltd. | 42,225,924.21 | - | 159,144.38 | - | - | - | 42,385,068.59 | - |
| Shanggao Haid Biotechnology Co., Ltd. | 25,600,726.93 | - | 151,829.00 | - | - | - | 25,752,555.93 | - |
| Qingyuan Hailong Biological Technology Co., Ltd. | 132,458,725.56 | - | 137,200.85 | - | - | - | 132,595,926.41 | - |
| Guangdong Haid International Trade Co., Ltd. | 100,000,000.00 | - | - | - | - | - | 100,000,000.00 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Guangzhou Nansha Haid Biotechnology Co., Ltd. | 8,059,918.95 | - | 1,527,518.44 | - | - | - | 9,587,437.39 | - |
| Yancheng Haiwei Biological Technology Co., Ltd. | 60,528,984.10 | - | 324,988.36 | - | - | - | 60,853,972.46 | - |
| Hainan Haid Aquatic Seed Industry Development Co., Ltd. | 45,572,010.85 | - | -121,218.92 | - | - | - | 45,450,791.93 | - |
| Wuzhou Haid Biotechnology Co., Ltd. | 25,726,578.29 | - | -44,628.18 | - | - | - | 25,681,950.11 | - |
| Zhangzhou Haiheng Feed Co., Ltd | 2,650,230.73 | - | 35,984.54 | - | - | - | 2,686,215.27 | - |
| Deyang Dachuan Agriculture and Animal Husbandry Technology Co., Ltd. | 41,252,645.49 | - | 166,959.72 | - | - | - | 41,419,605.21 | - |
| Mianyang Hailong Feed Co., Ltd. | 4,076,954.39 | - | 10,648.29 | - | - | - | 4,087,602.68 | - |
| Guangzhou Nongzhidao Feed Co., Ltd. | 6,226,467.20 | - | 154,165.64 | - | - | - | 6,380,632.84 | - |
| Yingkou Dachuan Feed Technology Co., Ltd. | 12,893,039.00 | - | -67,103.12 | - | - | - | 12,825,935.88 | - |
| Jiesou Haid Feed Co., Ltd. | 16,050,995.43 | - | 201,215.32 | - | - | - | 16,252,210.75 | - |
| Anlu Haid Feed Co., Ltd. | 20,491,685.69 | - | 185,942.07 | - | - | - | 20,677,627.76 | - |
| Jingzhou Haihe Biological Technology Co., Ltd. | 40,869,059.94 | - | 132,697.99 | - | - | - | 41,001,757.93 | - |
| Hainan Zhuangmei Agriculture and Animal Husbandry Co., Ltd. | 42,122,144.62 | - | -97,547.03 | - | - | - | 42,024,597.59 | - |
| Yancheng Runchuan Agricultural Science And Technology Co., Ltd. | 171,402.70 | - | -7,862.00 | - | - | - | 163,540.70 | - |
| Zigong Hailong Biological Technology Co., Ltd. | 30,917,082.17 | - | 529,169.83 | - | - | - | 31,446,252.00 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Jiangxi Jiabo Biological Engineering Co., Ltd. | 32,889,132.32 | 3,112,320.66 | 4,772,835.47 | - | -14,714,432.83 | - | 22,947,534.96 | 17,826,753.49 |
| Guangxi Rongchuan Feed Co., Ltd. | 309,355.05 | - | -66,586.76 | - | - | - | 242,768.29 | - |
| Dali Haid Biotechnology Co., Ltd. | 40,076,060.49 | - | 138,257.10 | - | - | - | 40,214,317.59 | - |
| Guangzhou Haid Technology Development Co., Ltd. | 1,098,508.65 | - | 13,112,677.93 | - | - | - | 14,211,186.58 | - |
| Heshan Haiwei Feed Co., Ltd. | 56,761.43 | 5,000,000.00 | 7,037,949.25 | - | - | - | 7,094,710.68 | 5,000,000.00 |
| Ganzhou Lianduoli Feed Technology Co., Ltd. | 19,197,105.42 | - | 32,782.64 | - | - | - | 19,229,888.06 | - |
| Maoming Haiwei Feed Co., Ltd. | 7,911,384.86 | - | -23,302.72 | - | - | - | 7,888,082.14 | - |
| Sichuan Hailong Biotechnology Co., Ltd. | 237,590.45 | - | -28,904.93 | - | - | - | 208,685.52 | - |
| Qinzhou Haiwei Feed Co., Ltd. | 35,102,957.83 | - | 108,507.35 | - | - | - | 35,211,465.18 | - |
| Yancheng Rongchuan Biotechnology Co., Ltd. | 60,672,591.88 | - | 495,747.17 | - | - | - | 61,168,339.05 | - |
| Naning Dachuan Biotechnology Co., Ltd. | 9,135,096.57 | - | -8,720.39 | - | - | - | 9,126,376.18 | - |
| Yongzhou Haid Biotechnology Co., Ltd. | 5,000,000.00 | - | - | - | - | - | 5,000,000.00 | - |
| Guiyang Haid Biotechnology Co., Ltd. | 5,000,000.00 | - | 25,000,000.00 | - | - | - | 30,000,000.00 | - |
| Wuwei Haimu Biotechnology Co., Ltd. | 25,535,863.19 | - | 51,000.20 | - | - | - | 25,586,863.39 | - |
| Guilin Haid Biotechnology Co., Ltd. | - | - | 5,029,033.35 | - | - | - | 5,029,033.35 | - |
| Inner Mongolia Haid Feed Co., Ltd. | 25,577,386.46 | - | 248,646.75 | - | - | - | 25,826,033.21 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Guiyang Dachuan Biotechnology Co., Ltd. | 5,172,510.46 | - | 155,196.14 | - | - | - | 5,327,706.60 | - |
| Xingtai Haid Biotechnology Co., Ltd. | 30,141,946.85 | - | 64,614.18 | - | - | - | 30,206,561.03 | - |
| Guangdong Haifulai Biotechnology Co., Ltd. | 3,210,331.66 | - | 17,896,511.56 | - | - | - | 21,106,843.22 | - |
| Qingyuan Hailier Biotechnology Co., Ltd. | - | - | 258,725.91 | - | - | - | 258,725.91 | - |
| Liupanshui Haid Biotechnology Co., Ltd. | 20,000,000.00 | - | 20,207,441.19 | - | - | - | 40,207,441.19 | - |
| Guangdong Haiqi Investment Co., Ltd | 30,000,000.00 | - | - | - | - | - | 30,000,000.00 | - |
| Hubei Haiqi Technical Service Co., Ltd. | 498,859.86 | - | -108,849.76 | - | - | - | 390,010.10 | - |
| Guangzhou Haiqi Technology Co., Ltd. | 1,755,724.82 | - | 242,885.42 | - | - | - | 1,998,610.24 | - |
| Guangzhou Haifeng Breeding Service Co., Ltd. | 54,736.55 | - | -1,705.32 | - | - | - | 53,031.23 | - |
| Nanning Haililai Biotechnology Co., Ltd. | 7,407,565.58 | - | 99,996.54 | - | - | - | 7,507,562.12 | - |
| Shaoyang Haid Feed Co., Ltd. | 10,361,692.75 | - | 86,177.94 | - | - | - | 10,447,870.69 | - |
| Foshan Debao Biological Group Co., Ltd. | 124,638,979.87 | - | 378,261.04 | - | -10,903,528.88 | - | 114,113,712.03 | 10,903,528.88 |
| Guangzhou Denong Feed Co., Ltd. | 162,887.78 | - | 175,334.74 | - | - | - | 338,222.52 | - |
| Foshan Dazhi Biotechnology Co., Ltd. | 530,134.37 | - | 64,835.96 | - | - | - | 594,970.33 | - |
| Taishan Debao Feed Co., Ltd. | 191,915.08 | - | 95,815.07 | - | - | - | 287,730.15 | - |
| Maoming Debao Agriculture and Animal Husbandry Co., Ltd. | 115,064.12 | - | 63,755.33 | - | - | - | 178,819.45 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Shaoguan Dachuan Biotechnology Co., Ltd. | - | - | 5,000,000.00 | - | - | - | 5,000,000.00 | - |
| Liaoning Haid Biotechnology Co., Ltd. | 20,470,287.58 | - | 274,760.60 | - | - | - | 20,745,048.18 | - |
| Guizhou Hailongwang Biotechnology Co., Ltd. | 173,049.65 | - | 185,074.83 | - | - | - | 358,124.48 | - |
| Guangdong Huashite Testing Technology Co., Ltd. | 9,054.70 | - | 2,018,545.56 | - | - | - | 2,027,600.26 | - |
| Tianjin Haid Biotechnology Co., Ltd. | 652,047.17 | - | 102,815.21 | - | - | - | 754,862.38 | - |
| Dali Dachuan Biotechnology Co., Ltd. | 25,343,708.35 | - | 249,493.14 | - | - | - | 25,593,201.49 | - |
| Yunnan Hairui Biotechnology Co., Ltd. | 38,140,558.23 | - | 62,236.70 | - | - | - | 38,202,794.93 | - |
| Henan Haid Jiuzhou Biotechnology Co., Ltd. | 7,782,688.28 | - | 114,128.11 | - | - | - | 7,896,816.39 | - |
| Enshi Haid Biotechnology Co., Ltd. | 15,000,000.00 | - | 35,126,366.15 | - | - | - | 50,126,366.15 | - |
| Ningguo Haid Biotechnology Co., Ltd. | 15,723,035.61 | - | 85,066.83 | - | - | - | 15,808,102.44 | - |
| Chaozhou Haid Biotechnology Co., Ltd. | - | - | 10,000,000.00 | - | - | - | 10,000,000.00 | - |
| Haixin (Tianjin) Biotechnology Co., Ltd. | 8,283,132.46 | - | 22,207,421.64 | - | - | - | 30,490,554.10 | - |
| Haixin Biological (Beijing) Technology Co., Ltd. | 35,477.19 | - | 420,118.17 | - | - | - | 455,595.36 | - |
| Dalian Haixin Biotechnology Co., Ltd. | - | - | 495,654.61 | - | - | - | 495,654.61 | - |
| Shenzhen Xinlingke Biotechnology Co., Ltd. | - | - | 187,958.96 | - | - | - | 187,958.96 | - |
| Nanshan Haid Biotechnology (Jinhu) Co., Ltd. | 35,612,883.01 | - | 119,893.44 | - | - | - | 35,732,776.45 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Guangzhou Haihan Treasury Technology Co., Ltd | 500,000.00 | - | - | -500,000.00 | - | - | - | - |
| Guangdong Haizhihui Breeding Technology Service Co., Ltd. | 53,000,000.00 | - | 20,455.35 | - | - | - | 53,020,455.35 | - |
| Leizhou Yuexiu Haishengyuan Shrimp Technology Co., Ltd. | - | - | 82,979.35 | - | - | - | 82,979.35 | - |
| Dongying Haishengyuan Aquaculture Co., Ltd. | - | - | 61,366.05 | - | - | - | 61,366.05 | - |
| Wudi Haishengyuan Aquaculture Co., Ltd. | - | - | 20,455.35 | - | - | - | 20,455.35 | - |
| Changyi Haijingzhou Biological Technology Co., Ltd. | 742,883.35 | - | 161,598.73 | - | - | - | 904,482.08 | - |
| Yuncheng Haishengyuan Fishery Technology Co., Ltd. | 70,150.79 | - | 2,196.99 | - | - | - | 72,347.78 | - |
| Jiangsu Haiwei Feed Co., Ltd. | 25,024,721.73 | - | 178,531.04 | - | - | - | 25,203,252.77 | - |
| Hubei Haid Seed Technology Co., Ltd. | 5,027,196.40 | - | 20,014,167.50 | - | - | - | 25,041,363.90 | - |
| Qianjiang Hailong Biotechnology Co., Ltd. | 10,282,485.94 | - | 60,222,998.55 | - | - | - | 70,505,484.49 | - |
| Pingjiang Bairuilai Biotechnology Co., Ltd. | 15,149,004.09 | - | 131,276.64 | - | - | - | 15,280,280.73 | - |
| Zhuhai Chenzhe Private Equity Fund Management Co., Ltd. | 10,000,000.00 | - | - | -10,000,000.00 | - | - | - | - |
| Guiyang Haiyue Feed Co., Ltd. | 10,000,000.00 | - | 104,915.95 | - | - | - | 10,104,915.95 | - |
| Inner Mongolia Haishan Feed Co., Ltd. | 1,800,000.00 | - | - | - | - | - | 1,800,000.00 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Huizhou Haid Biotechnology Co., Ltd. | 32,174,027.59 | - | 107,194.62 | - | - | - | 32,281,222.21 | - |
| Guangzhou Hualaike Testing Technology Co., Ltd | 1,000,000.00 | - | 1,176,807.11 | - | - | - | 2,176,807.11 | - |
| Huaibei Haid Bio-Feed Co., Ltd. | 3,000,000.00 | - | 93,200.81 | - | - | - | 3,093,200.81 | - |
| Guigang Hailong Biological Technology Co., Ltd. | 26,533.45 | - | 46,126.62 | - | - | - | 72,660.07 | - |
| Guizhou Haid Feed Co., Ltd. | 5,000,000.00 | - | 153,571.29 | - | - | - | 5,153,571.29 | - |
| Pizhou Haid Feed Co., Ltd. | 5,000,000.00 | - | 113,494.16 | - | - | - | 5,113,494.16 | - |
| Nanping Haid Biotechnology Co., Ltd | 14,400,000.00 | - | 184,473.32 | - | - | - | 14,584,473.32 | - |
| Xishui Chenke Feed Technology Co., Ltd | 121,177,915.57 | - | 203,059.98 | - | - | - | 121,380,975.55 | - |
| Tuanfeng Source Feed Technology Co., Ltd. | - | - | 23,094.76 | - | - | - | 23,094.76 | - |
| Huangshi Chen Branch Feed Technology Co., Ltd. | - | - | 120,092.57 | - | - | - | 120,092.57 | - |
| Qichun Sifang Technology Feed Company.Ltd | - | - | 87,100.22 | - | - | - | 87,100.22 | - |
| Taikun Feed (Huangmei) Co., Ltd. | - | - | 83,141.04 | - | - | - | 83,141.04 | - |
| Quzhou Haid Huilong Biological Feed Co., Ltd. | - | - | 10,023,094.76 | - | - | - | 10,023,094.76 | - |
| HAID (ECUADOR) FEED CIA.LTDA. | 499,931,951.27 | - | - | - | - | - | 499,931,951.27 | - |
| Xinyu Haihe Biotechnology Co., Ltd. | - | - | 20,033,949.66 | - | - | - | 20,033,949.66 | - |
| Zhuhai Haiyue Agriculture and Animal Husbandry Co., Ltd. | - | - | 20,226,499.58 | - | - | - | 20,226,499.58 | - |
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the period | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||
| Increase in investment | Decrease in investment | Provision for impairment | Others | |||||
| Qingyuan Haifulai Biotechnology Co., Ltd. | - | - | 30,000,000.00 | - | - | - | 30,000,000.00 | - |
| Guangdong Kenong Culture Co., Ltd. | - | - | 32,992.44 | - | - | - | 32,992.44 | - |
| Fuzhou Hailong Biotechnology Co., Ltd. | - | - | 30,129,100.00 | - | - | - | 30,129,100.00 | - |
| Guangzhou Haiying Commercial Management Co., Ltd. | - | - | 1,500,000.00 | - | - | - | 1,500,000.00 | - |
| Lishui Haid Huatong Biotechnology Co., Ltd. | - | - | 18,000,000.00 | - | - | - | 18,000,000.00 | - |
| Ningdu Haid Biotechnology Co., Ltd. | - | - | 3,600,000.00 | - | - | - | 3,600,000.00 | - |
| Zhuhai Haibei Supply Chain Management Co., Ltd. | 14,240,000.00 | - | 2,445,896.20 | - | - | - | 16,685,896.20 | - |
| Total | 10,967,797,683.52 | 8,112,320.66 | 1,257,940,642.31 | -1,041,648,579.94 | -70,887,194.53 | - | 11,113,202,551.36 | 78,999,515.19 |
(2) Investment in Associate and joint ventures
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the year | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||||||
| Increase in investment | Decrease in investment | Investment gains or losses recognized under the equity method | Adjustment in other comprehensive incom | Changes in other equity | Cash dividends or rofits declared | Provision for impairment | Others Increase in the current period | |||||
| Associate | ||||||||||||
| Investee | 2023.12.31 | Opening balance of provision for impairment | Movements during the year | 2024.12.31 (Carrying amount) | Closing balance of provision for impairment | |||||||
| Increase in investment | Decrease in investment | Investment gains or losses recognized under the equity method | Adjustment in other comprehensive incom | Changes in other equity | Cash dividends or rofits declared | Provision for impairment | Others Increase in the current period | |||||
| Bangpu Seed Technology Co., Ltd | 10,160,776.56 | - | - | -296,743.27 | - | - | - | - - | 9,864,033.29 | - | ||
| Total | 10,160,776.56 | - | - | -296,743.27 | - | - | - | - - | 9,864,033.29 | - | ||
3. Operating income and operating cost
| Item | 2024 | 2023 | ||
| Income | Cost | Income | Cost | |
| Principal activities | 3,170,389,684.44 | 1,327,894,322.77 | 2,872,467,800.14 | 1,272,475,149.10 |
| Other operating activities | 44,806,888.79 | 2,598,724.48 | 67,014,949.21 | 3,832,681.69 |
| Total | 3,215,196,573.23 | 1,330,493,047.25 | 2,939,482,749.35 | 1,276,307,830.79 |
4. Investment income
| Item | 2024 | 2023 |
| Income from long-term equity investments under the cost method | 706,114,524.65 | 526,996,012.23 |
| Income from long-term equity investments under the equity method | -296,743.27 | -357,434.09 |
| Investment income from disposal of long-term equity investments | -245,676,680.43 | -8,114,691.19 |
| Investment income from held-for-trading financial assets during the holding period | 28,305,495.90 | - |
| Investment income from other non-current financial assets during the holding period | 83,574.61 | 1,503,844.94 |
| Investment income from disposal of held-for-trading financial assets | -368,422.81 | 2,289,298.75 |
| Investment income from disposal of non-current financial assets | -1,325,686.53 | - |
| Total | 486,836,062.12 | 522,317,030.64 |
XVII. Supplementary Information
1. Details of non-recurring gain or loss during the current period
| Item | 2024 | Note |
| Gain or loss on disposal of non-current assets | -59,464,676.78 | |
| Government grants recognized in current profit or loss (except for government subsidies that are closely related to the normal business operations of the company and that are in compliance with national policies and are subject to constant or fixed amount according to certain standards) | 88,405,109.35 | |
| Other than the effective hedging business related to the operation of the Company, fair value changes by holding held-for-trading financial assets, derivative financial assets, held-for-trading financial assets and derivative financial liabilities. Investment income from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial assets financial liabilities , derivative financial liabilities and other debt investments | -58,602,433.58 | |
| Reversal of provision for bad and doubtful debt where accounts receivable are individually tested for impairment | 34,087,704.91 | |
| Other non-operating incomes and expenses, except for the above | -3,065,353.75 | |
| Other gain or loss satisfied the definition of non-recurring gain or loss | - |
| Item | 2024 | Note |
| Total non-recurring gain or loss | 1,360,350.15 | |
| Less: impact of income tax | 19,665,499.65 | |
| Net amount of non-recurring gain or loss | -18,305,149.50 | |
| Less: impact of non-controlling interests after tax | 16,764,079.67 | |
| Non-recurring gain or loss attributable to the ordinary shareholders | -35,069,229.17 |
2. Return on equity (ROE) and earnings per share (EPS)
| Profit for the reporting Period | Weighted average ROE (%) | Earnings per share | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to ordinary shareholders of the Company | 20.88 | 2.71 | 2.70 |
| Net profit attributable to ordinary shareholders of the Company after deducting the non-recurring gain or loss | 21.05 | 2.73 | 2.72 |