Guangdong Haid Group Co., Limited
2023 Annual Report
April 2024
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Section I. Important Notes, Table of Contents and Definitions
The board of directors (the "Board"), the supervisory committee, the directors,
the supervisors and the senior management of Guangdong Haid Group Co.,
Limited (the "Company") hereby warrant the truthfulness, accuracy and
completeness of the information presented in this report, guarantee that there
are no misrepresentations, misleading statements or material omissions
contained in this annual report, and are individually and collectively responsible
for the authenticity, accuracy and completeness of the information contained in
this report.
Mr. Hua Xue, head of the Company, and Mr. Shaolin Yang, head in charge of
accounting work and head of the accounting department (Accounting Officer),
declare that they warrant the truthfulness, accuracy and completeness of the
financial statements in the annual report.
All directors were present in person at the Board meeting to consider and
approve this annual report.
1. Periodical fluctuation risks of feed industry due to abnormal weather changes
The feed industry is mainly served for the downstream animal industry. The
abnormal changes including extreme high or low temperature, storm, typhoons
et al during the breeding production, and even large-scale outbreaks of diseases
which may lead to fluctuations of the inventory of livestock or aquatic products.
For example, the continuous rainfall weather in this year caused the decrease of
dissolved oxygen saturation in the water, and the reduced intake of aquatic
animals and passively reduced feeding. Some aquatic products can not adapt to
the rise of temperature or even die, therefore affecting short-term feed demand
and there are adverse effects on the production and operation of feed enterprises.
Risk control methods include two aspects: (1) The company is currently fully
deploying manufacturers and local markets in major areas in Southern China,
Central China, Eastern China and Northern China and overseas markets in
Southeast Asia. The expansion of regional distribution can effectively decrease
the risk of weather anomalies and natural disasters in local areas. (2)
Continuously improving the supports to farmers through the joint
empowerment of feed, seedlings, and animal healthcare, providing scientific
breeding plans and individual services from company’s technical personnel to
enhance the risk resistance and competitiveness of farmers and reduce the
adverse effects of abnormal weather.
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2. Risks of company's production and operation due to the outbreak of epidemic
diseases
With the environmental changes and the development of large-scale breeding,
animal epidemic diseases also occur from time to time, for instance, African
swine fever had broken out across China since August 2018， and PRRSV-
mediated pig diseases, shrimp-relevant EMS epidemic diseases and poultry-
relevant “H7N9” diseases occurred cross country in recent years. The scale of
animal production shrinks because of the outbreak of animal epidemic diseases,
following the reduced demand for feed in the short term. The prevalence of
major animal diseases can also easily affect consumers’ purchase intention, and
then reduce the demand of end-consumers, leading to the downturn of the
aquaculture and feed industry, giving rise to adverse effects on the production
and operation of feed enterprises.
Risk control methods include two aspects: (1) The comprensive feed products
cover the feeds of pig, chicken, duck, goose, fish, shrimp and other livestock and
aquatic feeds. The variety of products and the well-balanced structure can
effectively mitigate the risk of single species disease with strong comprehensive
risk-relieve capability. (2) The company has established the strict epidemic
prevention and control system in the production of feed products, utilizing the
disease prevention and control from the source with technological advantages
and professional capabilities.
3. Risk of Drastic Price Fluctuations of major ingredient materials
The feed ingredients cover staple agricultural products including corn and
soybeans (soybean meal) et al. In recent years, the domestic and international
markets of agricultural product have been closely connected. There were great
fluctuations in prices of agricultural products due to the change of the size in the
planting area and the harvest amount in these major grain-producing countries,
the purchasing and storage and subsidy policies, the import and export policies,
the political conflicts between countries, the international trade relations, the
fluctuations in logistics capacity and conditions of shipping and the exchange
rates, bringing certain impact on the cost of feed and animal industry. With the
strengthening of the international trade of agricultural products, the factors
affecting the prices of agricultural products have become more complicated, and
the price fluctuations therefore increased. Without fully understanding the
changes in the trade of feed raw materials in time and promptly implement
strategic management, the company would face the risk of rising procurement
costs.
Risk control methods include three aspects: (1) The materials were divided into
different categories including centralized purchasing staple category and local
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procurement of regional varieties category. It not only guarantees the
advantages of large-scale raw material procurement, but also makes best use of
localization advantages from rapid response in respect of regional procurement.
(2) The raw material procurement research system was continuously invested
and constructed. The members of team are professional and familiar with raw
material information. It can effectively control the procurement risk through
real-time tracking, investigating, and judging the market trend in domestic and
foreign bulk raw material, and manage the position risk of bulk raw materials
through futures hedging, raw materials trade and other tools. (3) The company
has strong research and development (R&D) team with extensive experience in
research on animal nutrition and feed formulation. A large amount of fund was
invested on research and development each year, focusing on animal nutrition
requirements, feed formulation technology, animal farming and genetic
improvement, comprehensive investigation on healthy breeding strategies, and
other research areas. The formula can be quickly adjusted to guarantee feed
nutrient level and control the costs in copying with material price fluctuations
based on the profound understanding of animal nutritional requirements and
the expertise in making best use of raw materials.
4. Risk of Environmental Protection Laws and Policies on the Scale and
Structural Adjustment in Animal Industry
In recent years, our government has introduced a series of environmental
protection laws and policies such as the new Environmental Protection Law, the
Regulations on Prevention and Control of Pollution from Large-Scale Livestock
and Poultry Industry, the Plan for Prevention and Treatment of Contaminated
Water, the Guiding Opinions on Adjusting the Layout of Pig Production in the
Southern Water Network Region et al. These anti-pollution regulations stipulate
the pollution prevention in animal industry, and especially limit the production
scale in the regions of key water sources and their surrounding areas. According
to the regulations and policies of the central government, the banned areas and
restricted areas have been highlighted throughout the country, and pig farms in
prohibited areas are gradually relocated in the southern water-network area.
The implementation of environmental protection policies not only further speeds
up the withdrawal of individual pig farms to reduce the backward production
model with unqualified environmental protection, but also expand the
production capacity of large-scale farm with better breeding structure. In
addition, the establishment of banned areas and restricted areas will enforce the
adjustments of pig production capacity across the country. The adjustments of
the scale composition of pig production and the relocation of pig production area
will certainly have a profound impact on the existing capacity layout, market
share, pricing, and business model of feed industry. The impact of
environmental protection policies on the pig industry and feed industry induces
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existing competitive enterprises at the risk of reshuffling.
Risk control measures included four aspects: (1) The company continually
improves its service capability to farmers. In addition to feed products, the
company is also engaged in the industrial fields of animal healthcare, vaccines,
and finance, and connects closely with large-scale farmers. (2) The feed products
of the company cover the field of livestock, poultry, and aquatic animals with
abundant product lines. The producing lines for pig feed, chicken feed, duck
feed and pelleted fish feed can be shared and switched. The company can rapidly
shift the production layout according to the changes in the market through
adjusting the production capacity in the manufacturers. (3) The company adopts
multiple models to speed up the production layout in areas with abundant
resources and permitted environment, and to obtain more market share in new
animal farming areas. (4) The company continues to increase R&D investment,
and the key technologies on microbial fermented feed and antibiotic alternatives
have been effectively applied to foster the progress and development of the
industry.
5. Risk of Exchange Rate Fluctuations
The global procurement of feed raw materials has become the norm. The scale
of overseas investment and operations of the company is also rapidly expanded.
The scale of cross-border fund settlement and the stock of overseas assets have
grown substantially, involved in various currency types of different countries.
The currency exchange rate fluctuations are subject to different influence
factors. The exchange rate fluctuations in any currency put certain impact on
the settlement cost and asset value of the regions.
Risk control methods include two aspects: (1) the company strictly controls the
exchange rate risks, carefully selects settlement currencies to achieve relatively
balanced regional fund inflow and outflow through structural arrangements of
financing sources and financing types according to the scale, the model, and
settlement characteristics of business in different regions and countries. (2) The
expansion of two-way fluctuations in RMB exchange rate has become the new
norm. The company increases its awareness of foreign exchange risk and
arranges settlement models according to the procurement and sales strategies
and the cycle characteristics of import and export operations, and flexibly used
financial instruments such as forward foreign exchange settlement and sale,
swaps, foreign exchange options and others to lock in exchange rate, control
procurement and sales costs and the possible risks caused by exchange rate
fluctuations.
The statements involving the Company's future plans in this report do not
constitute substantial commitment of the Company to any investors or related
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
parties. Investors are kindly advised to aware investment risks.
The proposed profit distribution plan of the Company was considered and
passed by the Board: on the basis of the total number of shares on the date of
record minus the repurchased shares when the plan is implemented in the future,
the Company will distribute cash dividend of RMB 5.00 (tax inclusive) and 0
bonus share (tax inclusive) for every 10 existing shares held by all shareholders
without capitalization of capital reserve.
In this report, certain total numbers may not be exactly equal to the summation
of their sub-item numbers as a result of roundoff.
This report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail. The complete published Chinese 2023 Annual Report is
available at the media designated for information disclosure.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Table of Contents
Section I. Important Notes, Table of Contents and Definitions .............................. 1
Section II. Company Profile and Key Financial Indicators .................................... 9
Section III. Management Discussion and Analysis................................................. 15
Section IV. Corporate Governance .......................................................................... 52
Section V. Environmental and Social Responsibility ............................................. 88
Section VI. Material Matters .................................................................................... 94
Section VII. Share Changes and Shareholder Information ................................ 118
Section VIII. Preferred Shares ............................................................................... 127
Section IX. Bonds..................................................................................................... 128
Section X. Financial Statements ............................................................................ 129
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Documents Available for Reference
1. The financial statements signed and sealed by the head of the Company, the head in charge of
accounting work and the head of the accounting department (Accounting Officer).
2. The original copy of the Independent Auditor’s Report signed and sealed by the CPAs, as well as
sealed by the CPA firm.
3. The originals of all the Company’s announcements and documents which were disclosed during
the Reporting Period.
4. The annual report disclosed on other securities markets.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Definitions
Item Definition
Company, Group, Haid Group Guangdong Haid Group Co., Limited
Board the board of directors of Guangdong Haid Group Co., Limited
Supervisory Committee the supervisory committee of Guangdong Haid Group Co., Limited
General Meeting of Shareholders the general meeting of shareholders of Guangdong Haid Group Co., Limited
Company Law the Company Law of the People’s Republic of China
Securities Law the Securities Law of the People’s Republic of China
Articles of Association the Articles of Association of Guangdong Haid Group Co., Limited
RMB Renminbi
reporting period, the period, the year the period from 1 January 2023 to 31 December 2023
last year, the same period of last year the period from 1 January 2022 to 31 December 2022
the end of the period 31 December 2023
the beginning of the period or the year 1 January 2023
CSRC China Securities Regulatory Commission
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Section II. Company Profile and Key Financial Indicators
I. Company profile
Stock name Haid Group Stock code 002311
Previous stock name (if any) N/A
Stock exchanges on which the
Shenzhen Stock Exchange
shares are listed
Chinese name of the Company 广东海大集团股份有限公司
Chinese abbreviation of the
海大集团
Company
English name of the Company
Guangdong Haid Group Co., Limited
(if any)
English abbreviation of the
HAID GROUP
Company (If any)
Legal representative of the
Hua Xue
Company
Room 701, Building 2, Haid Mansion, No. 42, Road 4, Wangbo, Nancun Town, Panyu Dist,
Registered address
Guangzhou, China
Postal code of registered
511445
address
Past changes of registered
The registered address remained unchanged during the reporting period.
address
Room 701, Building 2, Haid Mansion, No. 42, Road 4, Wangbo, Nancun Town, Panyu Dist,
Office address
Guangzhou, China
Postal code of office address 511445
Website of the Company www.haid.com.cn
Email address zqbgs@haid.com.cn
II. Contact persons and contact methods
Board Secretary Securities Affairs Representative
Name Zhijian Huang Jiewen Lu and Huafang Yang
Room 701, Building 2, Haid Mansion, No. Room 701, Building 2, Haid Mansion, No.
Correspondence address 42, Road 4, Wangbo, Nancun Town, Panyu 42, Road 4, Wangbo, Nancun Town, Panyu
Dist, Guangzhou, China Dist, Guangzhou, China
Telephone 8620-39388960 8620-39388960
Facsimile 8620-39388958 8620-39388958
Email address zqbgs@haid.com.cn zqbgs@haid.com.cn
III. Information disclosure and places for inspection
Stock exchange website where the Annual Report is Securities Times, China Securities Journal, Securities Daily, Shanghai
disclosed Securities News
Media and website where the Annual Report is
www.cninfo.com.cn
disclosed
Places for inspection of the Company’s
Securities Department of the Company
Annual Report
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IV. Change in registration
Unified social credit code No change
Change of principal activities since its
No change
listing (if any)
Change of the controlling shareholder (if
No change
any)
V. Other relevant information
CPA firm engaged by the Company
Name of the CPA firm Grant Thornton China (Special General Partnership)
CPA firm’s address 5th Floor, Scitech Palace 22 Jianguomen Wai Avenue, Chaoyang District, Beijing
Name of the signing certified
Wenyuan Guan and Shuntong Qiu
public accountants
Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period
Applicable □ Not applicable
Name Office address Representative Period of supervision
GF Securities Tower, 26 The period of supervision for
GF Securities Co., Ltd. Machang Road, Tianhe District, Jian Liu and Yuqing Zhang the raised funds is from July
Guangzhou 2022 to December 2023.
Financial Advisors engaged by the Company to continuously perform its supervisory function during the reporting
period
□ Applicable Not applicable
VI. Major accounting data and financial indicators
Retrospective adjustment to or restatement of the accounting data for prior years by the Company
Yes □ No
Reasons for retrospective adjustment or restatement
Change of accounting policy
Increase/decrease
for the year as
2022 2021
2023 compared to the
prior year
Before Restated Restated Before Restated
Operating
income 116,117,168,742.97 104,715,417,485.92 104,715,417,485.92 10.89% 86,091,961,539.13 86,091,961,539.13
(RMB)
Net profit
for the year
attributable
to
2,741,256,374.98 2,954,142,403.34 2,957,330,734.56 -7.31% 1,636,237,735.85 1,640,681,925.34
shareholders
of the parent
company
(RMB)
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Increase/decrease
for the year as
2022 2021
2023 compared to the
prior year
Before Restated Restated Before Restated
Net profit
for the year
attributable
to
shareholders
of the parent
company 2,541,491,959.42 2,880,122,890.31 2,883,311,221.53 -11.86% 1,559,604,300.76 1,564,048,490.25
after
deducting
the non-
recurring
gain or loss
(RMB)
Net cash
flows from
operating 12,698,374,699.54 6,817,894,250.91 6,817,894,250.91 86.25% 3,137,948,250.69 3,137,948,250.69
activities
(RMB)
Basic
earnings per
1.66 1.79 1.79 -7.26% 0.98 0.99
share (RMB
per share)
Diluted
earnings per
1.66 1.79 1.79 -7.26% 0.98 0.98
share (RMB
per share)
Rate of
return on
equity on
14.53% 18.46% 18.47% -3.94% 11.74% 11.77%
weighted
average
basis
Increase/decrease
as at the end of
the year
As at the end of 2022 As at the end of 2021
As at the compared
end of 2023 to the end of
the prior year
Before Restated Restated Before Restated
Total assets
44,746,735,775.61 44,237,781,732.31 44,470,388,435.88 0.62% 35,695,097,401.96 35,901,363,324.60
(RMB)
Total equity
attributable
to
shareholders 19,647,107,064.19 17,824,906,815.87 17,832,539,336.58 10.18% 14,501,327,072.09 14,505,771,261.58
of the parent
company
(RMB)
Reasons for change of accounting policy and correction of accounting error
In November 2022, the Ministry of Finance issued the Interpretation No. 16 for the Accounting Standards for
Business Enterprises (《 企 业 会 计 准则 解 释第 16 号 》 ) (CK [2022] No. 31) (hereinafter referred to as
“Interpretation No. 16”). For a single transaction that is not a business combination and does not affect either
accounting profit or taxable income (or deductible losses) at the time the transaction occurs, and where the initial
recognition of assets and liabilities results in an equal amount of taxable temporary differences and deductible
temporary differences, deferred income tax liabilities and deferred income tax assets shall be recognised
respectively on the aforesaid taxable temporary differences and deductible temporary differences arising from the
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initial recognition of assets and liabilities at the time the transaction occurs in accordance with the applicable
regulations such as the Accounting Standard No. 18 for Business Enterprises -- Income Tax (《企业会计准则第
18 号--所得税》). For such transactions that occurred between the beginning of the earliest period in the
financial statement presentation where the above provisions were first applied and the date of application of the
said interpretation, enterprises should adjust the cumulative effect to the opening retained earnings and other
relevant financial statement items in the earliest period in the financial statement presentation in accordance with
the above provisions. The above accounting treatment is effective from 1 January 2023 onwards. The Company
has made adjustments in accordance with Interpretation No. 16 for taxable temporary differences and deductible
temporary differences arising from lease liabilities and right-of-use assets recognised in respect of leasing
operations. For details, see “III. 39. Changes in significant accounting policies and accounting estimates” in
“Section X. Financial Statements”.
Whether the lower of the net profit for the year attributable to shareholders of the parent company before and after
deducting the non-recurring gain or loss was negative for the last three accounting years, and the latest
independent auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a
going concern
□ Yes No
Whether the lower of the net profit for the year attributable to shareholders of the parent company before and after
deducting the non-recurring gain or loss was negative
□ Yes No
VII. Differences in accounting data under domestic and overseas accounting standards
1. Differences between the net profit and net assets disclosed in accordance with international accounting
standards and China accounting standards in the financial report
□ Applicable Not applicable
There was no difference between the net profit and net assets disclosed in accordance with international
accounting standards and China accounting standards in the financial report during the reporting period.
2. Differences between the net profit and net assets disclosed in accordance with overseas accounting
standards and China accounting standards in the financial report
□ Applicable Not applicable
There was no difference between the net profit and net assets disclosed in accordance with overseas accounting
standards and China accounting standards in the financial report during the reporting period.
VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 23,358,349,660.13 29,378,302,285.67 34,189,718,845.92 29,190,797,951.25
Net profit for the year
attributable to
407,909,413.30 692,271,146.93 1,151,392,636.93 489,683,177.82
shareholders of the
parent company
Net profit for the year
attributable to
shareholders of the
389,199,275.36 692,186,171.73 1,102,720,936.48 357,385,575.85
parent company after
deducting the non-
recurring gain or loss
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Net cash flows from
200,675,996.60 5,345,763,833.81 3,752,430,438.30 3,399,504,430.83
operating activities
Whether the above indicators or their aggregated amounts have any material difference with the respective
amounts as disclosed in the quarterly report or interim report
□ Yes No
IX. Items and Amounts of Non-recurring Gains or Losses
Applicable □ Not applicable
Unit: RMB
Item Amount for 2023 Amount for 2022 Amount for 2021 Explanation
Gain or loss on disposal of non-
9,004,677.06 -45,840,354.94 -21,381,178.37
current assets
Government grants recorded in
current profit or loss (excluding
government grants that are closely
related to the Company's ordinary
activities and given in accordance
59,119,428.77 125,600,697.83 91,417,497.06
with defined criteria and in
compliance with government
policies, and have a continuing
impact on the Company's profit or
loss)
Except for the effective hedging
activities related to the Company's
ordinary activities, profit or loss
arising from changes in fair value of
147,165,591.84 39,455,335.15 0.00
financial assets and liabilities held
by a non-financial enterprise, as
well as from disposal of financial
assets and liabilities
Profits or losses from external
326,833.38 530,942.74 0.00
entrusted loans
Reversal of provision for bad and
doubtful debt where accounts
14,802,077.94 6,167,665.26 11,769,732.86
receivable are individually tested for
impairment
Investment costs for acquisition of
subsidiaries, associates and joint
venture less than gains from the fair 812,610.97 40,510.51
value of identifiable net assets of the
investees
Other non-operating incomes and
-8,642,137.95 -34,643,762.69 12,478,800.92
expenses, except for the above
Other gain or loss satisfied the
definition of non-recurring gain or 5,936,636.84 3,713,581.31
loss
Less: impact of Income tax 9,966,547.74 17,625,340.80 15,798,527.34
Less: impact of non-controlling
12,045,507.74 6,374,917.33 5,606,981.86
interests (net of tax)
Total 199,764,415.56 74,019,513.03 76,633,435.09 --
Particulars about other gain or loss that satisfied the definition of non-recurring gain or loss
□ Applicable Not applicable
The Company had no other gain or loss that satisfied the definition of non-recurring gain or loss.
Notes for the Company’s non-recurring gain or loss items as illustrated in the Explanatory Announcement on
Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-recurring Gain or Loss
(《公开发行证券的公司信息披露解释性公告第 1 号——非经常性损益》) defined as its recurring gain or
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loss items
□ Applicable Not applicable
No non-recurring gain or loss items as illustrated in the Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to the Public No.1 - Non-recurring Gain or Loss (《公开发行证券的公司信
息披露解释性公告第 1 号——非经常性损益》) were defined by the Company as its recurring gain or loss
items during the reporting period.
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Section III Discussion and Analysis of Management
I. Industry Situation during the reporting period
1. Basic situation and the development stage of the industry
Animal husbandry, fishery and feed industries are all important industries related to the national economy and
people's livelihood, and play a key role in ensuring national food security and promoting farmers' income. The
high-quality development of animal husbandry and fishery has provided strong support for comprehensively
promoting rural revitalization and accelerating the modernization of agriculture and rural areas. As the core of
animal husbandry and fishery, the breeding industry is accelerated by the development trend of large-scale,
intensive and intelligent breeding, the agglomeration effect of technology, talents and other factor resources is
further highlighted. The development and quality of the industry conform to the accelerated upgrading of the
consumption structure of urban and rural residents, so as to meet the increasing demand of residents on high-
quality and safe food and beautiful ecological environment. The feed industry is an important link in the
production system of animal husbandry, fishery and aquaculture, as the basis for ensuring the efficient supply and
quality of livestock and poultry products and aquatic products. The feed industry has gradually transformed into
the stage of high-quality development from the one-dimensional competition of feed products itself to the multi-
dimensional competition of seedlings, animal healthcare, feed product quality and enterprises' breeding
technology service capabilities. The competitiveness of enterprises in the feed industry is seriously differentiated,
the integration of the industry continues to accelerate, and the development of the industry is gradually
concentrated in advanced enterprises which adhere to scientific and technological innovation and strengthen
technical services.
2.The situation of the industry in 2023
The consumption base has been consolidated, the demand of consumers has been stabilized, the breeding
inventory was a bit of high, and the feed industry continued to grow during 2023. The poultry breeding inventory
gradually increased to a normal level, driving the demand for poultry feed to continue to recover. The number of
pigs had been high throughout the year 2023, forming the strong demand for pig feed. In aquaculture, the annual
price of common fish had been below the cost line, farmers' confidence and feeding enthusiasm are greatly
affected, and the demand for regular feed products had been suppressed significantly, but the demand for shrimp
and special aquatic feed had been stable.
There are more details as followings,
1. Bulk agricultural products’ price shad showed from high level to gradual decline affected by the international
situation and supply and demand pattern, and the prices fluctuated violently throughout the year. During the year,
the price of corn fell and then rose from the beginning of the year, and then broke through 2,900 yuan/mt at the
high point, and then the price fell and gradually accelerated falling to 2,600 yuan/mt at the end of the year. The
price of soybean meal fell from 4,500 yuan/mt at the beginning of the year, and then fluctuated and rose in the
second and third quarters to the high point of 5,000 yuan/mt, it fell down to about 3,500 yuan/mt in the fourth
quarter. Fishmeal price was accelerated from 12,000 yuan/ton in the second and third quarters, breaking through
the record high of 18,000 yuan/ton because of the sharp reduction in Peruvian fishing volume and the decline in
fishmeal stocks, and then gradually fell back to the price of the beginning of the year at the fourth quarter.
2. In terms of breeding industry: (1) The operating cash flow of the poultry breeding industry continues to recover,
with the increase in poultry seedling production capacity at the beginning of the year, the increase in supply, and
the enhancement of demand and logistics certainty, the poultry breeding inventory had gradually risen to the
normal level. In addition, the consumption demand for egg products had been stable, the consumption scenarios
had been abundant, the egg price was basically above the cost line, and the breeding profit had been considerable.
(2) The number of live pigs is high throughout the year. According to the National Bureau of Statistics, in 2023,
726.62 million pigs had been slaughtered nationwide, an increase of 3.8%. Pork output was 57.94 million tons, an
increase of 4.6%. Pig prices had been low level for a long time, and the breeding had been comprehensive loss
under the structure of oversupply. (3) In aquaculture, due to the normalized operation of the catering industry ,
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most species such as shrimp and crabs, special fish et al highly dependent on catering consumption, are operating
normally, however, some species such as raw fish and California perch, due to the continuous substantial growth
of aquaculture in the past few years, short-term oversupply, slow inventory depletion, and low prices throughout
the year, the price of common fish were below the cost line throughout the year, and the confidence and
enthusiasm of farmers were greatly affected.
3. The feed industry as a whole kept continuously growing. Affected by the breeding industry, the feed industry
has continued to grow in livestock and poultry feed, and aquatic feed has declined. According to data disclosed by
the China Feed Industry Association, the total output of industrial feed in the country in 2023 will be 321.627
million tons, a year-on-year increase of 6.6%. In terms of varieties, the output of pig feed was 149.752 million
tons, an increase of 10.1%; the output of poultry feed was 127.852 million tons, an increase of 5.4%; the output of
aquatic feed was 23.444 million tons, a decreased by 4.9%; the output of ruminant feed was 16.715 million tons,
an increase of 3.4%.
II. Main businesses of the company during the reporting period
The company laid out the industrial chain with the aim of providing overall services to animal farming. It has
formed a relatively complete aquatic product industrial chain, and the livestock and poultry industrial chain has
also gradually been constructed. The main products include high-quality animal seedlings, feed, animal healthcare,
pig breeding and aquatic products. The business operation has covered all business links such as R & D, designing,
producing, sales and service of various products. Specifically, the company's products include feeds for chickens,
ducks, geese, pigs, fish, shrimps, crabs and ruminants, breeding varieties such as pigs, shrimps, fish fry and
chickens, fresh livestock and poultry products and aquatic pre-made products as well as biological products,
veterinary medicine, vaccines, and other healthcare products required for producing livestock, poultry, and
aquaculture.
1. Main business and products
（1）The business of feed, seedling and animal healthcare were interacted to form Gold Tringle
Feed, seedling and animal healthcare business are core parts of the company. After more than 20 years of
development, Feed business has accumulated a wide range of customer resources. Through providing customers
with high-quality valuable seedlings and cost-effective feed products in the market, relying on breeding services
to drive the development of vaccines, veterinary medicines, biological products and other animal healthcare
products, the company can better support customers to achieve breeding success through the full set of services,
and help customers realize that healthy farming at the same time, resulting in better controlling the breeding cost
and obtaining the competitive advantage in respect of end products.
(2) On the basis of specialization, the breeding industry realizes the asset-light and low-risk breeding model
Based on the healthy development of feed, seedling and animal healthcare business, the company has explored the
model of breedings. In terms of livestock and poultry, the company mainly focuses on pig breeding with
continuous improving professional breeding capabilities, continuously optimizating breeding costs and
controllable risks. In terms of aquaculture, the company has started industrial shrimp farming that the company
has overall advantages using its own high-quality seedlings, feed and animal protection products. In the breeding
business, the company controls the scale of breeding, builds team, reduces costs, improves the system, and builds
its core competitiveness.
2. Major business model
(1) Feeds, seedlings and animal healthcare products business
Feed business is core business of company, the business management is mainly carried out with the model of
centralized procurement of raw materials, distribution of production layout, sales of products accompanied with
technical services. 1) The adoption of the centralized procurement model composed of group plus regional center
is combined with hedging and other methods for agricultural products and other bulk raw materials to achieve
better procurement cost advantages and risk control; 2) Due to the production being closer to the market,
convenient in logistics and rich in resources, the company currently has feed factories distributed in 200 cities of
Asia, Africa and South America. 3) The distribution together with direct sales is the company's main sales model.
Focusing on localized marketing, the company has fully established distribution channels to efficiently solve
farmers' capital and transportation needs. Through service stations established in main production areas, the
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
technical service teams directly visit farmers to provide professional services for farming and have achieved
functional complementation and collaboration with sales organization and management teams in terms of sales
and service as well as channel and farmers. 4) High-quality animal seedlings, biological Products, veterinary
drugs and vaccines become indispensable and constitute a package of integrated products and tools to provide
services for farmers.
(2) Animal breeding business mode
The company's pig farming segment adopts both the "self-breeding plus farming community" model and
"company plus family farm" model. The "self-breeding plus farming community" model means that seedlings are
introduced and bred to create a farming system of grandparent - parent - commercial pig, under which
reproduction is separated from breeding to ensure that the farming process is safe and controllable. The "company
plus family farms" model means that the company provides family farmers with products for farming including
seedlings, feeds, and vaccines, and provides major technical supports for farming, in turn the farmers are
responsible for animal raising and transfer the end- products back to the company for sales.
The aquatic animal farming and processing business has just started, and the primary aquatic products are fishes,
prawns and other specialty products. With its strengths in high-quality seedlings, feeds, animal healthcare and
technical advantages, the company carries out standardized and industrialized aquaculture, supplying sustainable,
healthy, traceable aquatic products (processed products) to large catering enterprises and fresh food platforms.
III. Analysis of Core Competitiveness
The products and services are centered on the needs of the animal production industry. Its core competitiveness is
represented by the capability of creating values for customers while carrying out the mission of changing rural
China. The comprehensive performance includes the rich and complete product configuration and industrial chain
layout, outstanding single product power, leading R & D ability, comprehensive aquaculture technology service
ability, comprehensive product combination organizing ability and perfect talent training and incentive growth
system during the process of promoting rural revitalization.
1. Distinct and excellent product power is the most important competitive advantage of the company
All series of products of the company are committed to building product power significantly ahead of competitors
and put great efforts to strengthen the explicit expression of product power. High-quality products with high
pricing have obvious advantages of ultimately better animal survival rate, growth effect and growth efficiency,
and the brand effect is prominent. Based on then leading production efficiency, the pricing of mid-quality products
is close to the pricing of competitors' products, pursuing outstanding product cost performance. With the support
of farmers, the overall benefits of the company are significantly higher than those of similar products. In the case
of the declining aquaculture benefits， the whole industry is at a loss, however, our customers only loss less or
even no loss.
The embodiment of product power needs the support of professional abilities within the company including the R
& D ability of animal nutrition and raw material utilization, the formula technology ability of products, the value
procurement ability of raw materials, efficient internal operation ability and other professional abilities
indispensable, for example, the support of value purchasing capacity. The company's procurement team has
outstanding professional capacity. The team is young and specialized. The division of labor is carried out
according to the classification of raw materials. The industry perspective is broad, and the amount of information
collection and analysis is large. It can track, study and judge the market trend of large raw materials at home and
abroad in real- time, and use futures tools to hedge bulk raw materials, and effectively control the price risk and
financial risk of procurement. The team finds out many purchasing opportunities of raw materials with their
outstanding purchasing capacity, making the cost advantage of feed products and raw material trade possible. The
company is the first enterprise in the industry to successfully set up centralized procurement, with obvious
advantages in scale procurement. Due to its rich experience in the application of spot, futures, options and other
procurement tools, the application method is also relatively flexible. Long term value procurement and risk
position management are also conducive to the company's acquisition of procurement cost advantages and risk
control.
Another part is the company's efficient operation ability. By promoting the implementation of management
software such as SAP, EPS and business sharing system, the company has a strong information system, and its
internal operation is process oriented, standardized and data based. The function of digitization is to find out
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efficient and energy-saving operation methods by comparing the big data of each subsidiary company. The
function of process and standardization is to greatly improve the internal replicability. The middle office
management mechanism enables the production, R & D, procurement and manpower to respond to the market
quickly and match the needs of the market and customers in a more flexible, fast and efficient way. Efficient
operation capability has become an important support for effectively organizing the professional production of
various products.
2. Technology R & D is the professional support of product creation, the foundation and driving force of the
company's development, and the core advantage of the company
At the beginning of its establishment, the company established the research center to build an industry-leading R
& D system of the whole industry chain including breeding, nutrition, healthcare, farming and others. With the
increasing of investment in application technology, the company has focused on strengthening the technical
platform construction of each business module in the industrial chain, forming a three-level R & D system from
platform technology research to application technology development to systematic solution application. The
company promotes the rapid transformation and application demonstration of scientific and technological
achievements through the effective connection of the three-level R & D system and the operation mechanism of
"Research Institute plus subsidiary company". The company carries out research on basic, forward-looking and
general key problems in seven R & D directions: animal genetics and breeding, animal nutrition and feed, animal
medicine and biopharmaceutical, microbial engineering, biochemical industry, protein engineering and healthy
breeding, constantly improves the three-level R & D system, and comprehensively and effectively supports, drives
and serves the needs of the rapid development of the whole industrial chain of the group.The company has rich
technical research reserves, has the R & D team of more than 3500 people, and put huge investment in R & D
every year. The R & D personnel include talents from animal nutrition, veterinary, breeding, breeding mode,
bioengineering, biochemistry, machinery and other disciplines. The transformation speed of R & D results is fast,
the investment supporting strategy can be implemented clearly and quickly, and the product allocation ability of
the company is strong.
In terms of feed formula technology, through more than 20 years of continuous research and development, the
company has established a huge animal nutrition demand database and stored a variety of raw material formula
technology, thousands of groups of comparative experimental results are added to the animal core nutrition
demand and raw material utilization database every year, to transform the technology into productivity. Therefore,
the company has strong ability to organize and continuously optimize the product formula and strong adaptability.
It can quickly adjust the formula when the price of raw materials fluctuates, so as to obtain cost competitive
advantage. At the same time, through scientific and technological research and development to drive product
optimization and upgrading, it can not only comply with the changes in the breeding environment and the changes
in the breeding mode, but also lead the progress of breeding technology and the upgrading of the breeding model.
3. The breeding technology service system is an important tool for the company to create value for customers,
continuously obtain new customers and improve customer viscosity
In 2006, the company took the lead in providing comprehensive technical services to farmers in the industry and
established the company as a service-oriented enterprise and an enterprise providing overall breeding services to
farmers. The company provides farmers with products and technical service support in the whole breeding process,
such as seedling stocking mode - environmental control - epidemic prevention and control - feed - market
information - financial support, to ensure that farmers can use the most advanced breeding technology to
guarantee the success and profitability of farmers. The company has more than 10,000 experienced and passionate
technical service teams in the industry; And accumulate a variety of advanced breeding modes in combination
with local characteristics; There are hundreds of highly efficient service stations in intensive breeding areas across
the country, which can provide technical services for tens of thousands of farmers at the same time. The
company's relatively complete service system in the industry can give full play to the advantages of product power
and provide the whole process technical service of breeding, which can effectively enlarge the income of
customers and increase the loyalty of customers.
The company's farming technical service started from aquaculture service. After more than ten years of talent
team and platform construction, the process and concept of aquaculture technical service system have penetrated
into all links of products, technology, R & D, market and operation, driving the development of the company's
aquatic feed and animal protection business, highlighting the effect. And the process and protocols had been
gradually promoted to pig breeding and had achieved obvious results. The comprehensive breeding technology
service has become an important brand label of the company and an important starting point for the company to
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create value for customers, obtain and keep customers.
4. Resourseful and complete product portfolio configuration ability, and strong risk control ability
In the breeding chain, after years of technical investment, transformation of research and development
achievements, product accumulation and production layout, the company's product configuration has reached
relatively rich and complete state from feed, functional feed, seedlings, medicines, vaccines and biological
products, covering the whole process of breeding needs, and still under development. In terms of feed products,
the company is one of few domestic enterpries which can simultaneously produce and sale fish, shrimp, pigs, meat
and poultry, eggs and poultry, ruminant feed with complete product lines, and all categories of products have
strong competitiveness, and have a high market share in the key market. The company had rich and complete
product configuration and industrial chain layout gradually pushing to the international market, fully taking
advantages of the industrial chain and exploring overseas growth. The product configuration capabilities require
strong customer demand insight, R&D organization, achievement transformation, production base investment and
construction, processing organization, marketing promotion and technical service capabilities. The technical
requirements of various feed varieties are different, the gross profit margins are different, the market
characteristics and operational risks are also different, so the product structure portfolio enables the company to
obtain a gross profit margin higher than the general level of the industry, and better control the market operation
risk caused owing to animal disease and supply and demand imbalance, so that the company's feed product sales
revenue is stable and maintains rapid growth rate much higher than the industry growth rate.
5. The perfect talent training system and effective incentive mechanism have laid the foundation for the
sustainable and stable development of the company
The company continues to promote the establishment of an organizational atmosphere for talent training. Through
Haida college and the human resources center, the company has built a three-way training system covering the
whole career of employees, the whole business of the company and the whole post of business, built the learning
ecosystem combining universal education and elite training, matched with standardized skill training at all levels,
and realized a standardized rapid endogenous talent training and output mechanism. With the continuous
development of the company's business and the deep extension of the industrial layout, a number of young,
enthusiastic, energetic young cadres with new ideas and new era labels have become the mainstay of the
company's middle-level management and core technical backbone. Through the establishment of school enterprise
cooperation and the integration of industry and education, the company attracts a large number of excellent
college students to join the company every year, and establishes a reserve talent team to support the sustainable
development of the company. Through initiating the establishment of China Modern Fishery Vocational Education
Group and the establishment of Rural Revitalization college, a large number of new farmers are attracted to
participate in the construction of technical and industrial talents. The establishment of internal and external talent
system has realized the talent system pattern of internal talent training and external industry empowerment and
driven the overall progress of the industry.
Since its listing, the company has launched multi-stage equity incentive plan and employee stock ownership plan
for core managers and technical members at different levels, established a unified incentive mechanism of long-
term and short-term incentives and constraints consistent with the interests of all shareholders, and ensured the
implementation of the company's development strategy and business objectives by setting performance objectives
and incentives, ensuring the sustainable and stable development of the company.
IV. Main business analysis
1.Overview
During the reporting period, the company achieved income of 116.117 billion yuan, a year-on-year increase of
10.89%, and the net profit attributable to shareholders of listed companies was 2.741 billion yuan, a year-on-year
decrease of 7.31%, due to the loss of the breeding business (the breeding business achieved good profitability in
the same period of 2022). In the breeding business, the company's pig and raw fish breeding achieved a total
income of about 10.7 billion yuan, and a net profit loss attributable to shareholders of listed companies more than
400 million yuan, of which the loss of raw fish exceeded 300 million yuan.
I.Deeply cultivate the main business of feed, seedlings and animal healthcare, and achieve higher goals with
stable and sustainable growth
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1. Seize the opportunity, keep double-digit growth in feed sales and further improve the profitability
The company has completed the strategic layout of 40 million tons of feed production capacity, and the company's
core business objective during the reporting period made full use of the product competitiveness, research and
development capabilities, technical service system and many other competitive advantages to improve the
company's capacity utilization rate and market share. Because the production capacity layout has been completed,
as long as the sales scale continues to increase, the capacity utilization rate can further expand the company's scale
benefits, and strengthen the original professional advantages, so as to reduce the breeding cost of farmers and
improve the company's operating efficiency.
During the reporting period, the company achieved feed sales of 24.4 million tons (including 1.8 million tons of
internal aquaculture consumption), a year-on-year increase of 13%, and external feed sales of 22.6 million tons, an
increase of 2.36 million tons year-on-year, and further increased its market share: 1) the external sales of aquatic
feed were 5.24 million tons, a year-on-year increase of 2%, and the product structure was significantly optimized:
among them, the sales volume of special feed (high-grade puffed fish feed and shrimp and crab feed) increased by
13% year-on-year. In the second half of the year, the company quickly adjusted its sales strategy, invested
resources in key markets, and vigorously supported high-quality customers and farmers, and the sales of general
feed gradually improved, and it has turned into positive growth in the first quarter of 2024. Owing to the
optimization of the structure of aquatic feed products (the proportion of special feed has been greatly increased)
and the continuous transformation of technical advantages, the profitability of aquatic feed has been greatly
improved. 2) Poultry feed sales reached 11.3 million tons, up 13% year-on-year. The poultry industry chain as a
whole has steadily rebounded from the bottom of the loss for nearly three consecutive years, and the breeding
inventory has risen to a normal level, the company has fully taken the comprehensive advantages of technology,
procurement, and operation of various varieties, and established in-depth cooperation with large-scale breeding
plants and one-stop breeding companies through diversified forms of cooperation, so as to accelerate the
integration of upstream and downstream professional capabilities in the industrial chain, and effectively improve
the utilization rate, sales volume and profitability of poultry feed. 3) Pig feed sales reached 5.79 million tons, a
year-on-year increase of 17%. The company's pig feed relies on continuous investment in research and
development to show good competitiveness, and at the same time began to build a service team and system. The
sales and service cooperation model with family farms and large-scale farms with breeding advantages becomes
more and more mature, and the product power and brand power are gradually improving. 4) The company's
ruminant material has been steadily promoted in accordance with the strategic plan, and the production capacity
layout and market expansion have been implemented in an orderly manner, and the sales volume in 2023 had
increased by 70% year-on-year.
2. The seedling and animal healthcare business develop synchronously, and the product force of the feed is
superimposed
The company's seedling business and feed products are developed in tandem to form a superposition of product
strength. During the reporting period, the company's seedling business achieved income of about 1.3 billion yuan,
of which the income of shrimp seedlings increased by about 29%. The number of new national aquatic varieties
owned by the company has increased to 6, including "Haixingnong No. 2", "Haixingnong No. 3", "Huahai No. 1",
"Huahai No. 1", Changzhu hybrid mandarin fish and hybrid snakehead "Xiongyu No. 1". In terms of shrimp
breeding, the company has 14 generations of pedigree, more than 2,000 families are preserved every year,
constituting a germplasm resource bank with high genetic diversity, and has 8 specialized shrimp breeding centers,
multiplication and testing bases to ensure the strong competitiveness of the company's shrimp seedling products.
The company continues to invest in the fish fry industry, breaking through the traditional breeding mode and
introducing indoor factory breeding. The tilapia varieties have made great breakthroughs in breeding,
multiplication and farming, and it is expected that industrial advantages will be rapidly formed in the next few
years. In the grass carp, bream, crucian carp and other traditional varieties to bring forth the new varieties, in the
raw fish, yellow catfish and other varieties to take the lead in the realization of the scale of parthenogenesis. In
addition, the company has invested in the construction of aquatic seed farms in Vietnam, Indonesia and other
countries, initiating an international strategic layout.
In the field of animal healthcare, the company relies on strong R&D capabilities to achieve product innovation
and upgrading in line with market demand. At the same time, the company strengthens the integrated development
strategy of feed and animal healthcare, develops a variety of functional feeds with good quality and meets the
needs of breeding, solves the difficult parts of breeding, and better improves the breeding efficiency of farmers.
During the reporting period, the company's animal healthcare business achieved the income of 1.1 billion yuan, a
slight increase year-on-year.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
3. Haid's model is promoted to the international market and explore overseas sales and profit margins
During the reporting period, the company's overseas feed sales volume reached 1.71 million tons, a year-on-year
increase of 24%, and the profitability of products increased rapidly, and the profit growth was higher than the
sales growth. The company's overseas feed business, through the construction of local factories and sales, and
supporting high-quality seedlings, animal healthcare and professional technical service systems, copied the mature
domestic "feed + seedlings + animal healthcare" golden triangle model to overseas markets, forming a competitive
advantage in the industrial chain, and gradually explores the growth of overseas markets. In Southeast Asia, the
company takes Vietnam as the core and actively expands markets such as Indonesia, Bangladesh and Malaysia. In
Africa, with Egypt as a bridgehead, it gradually extends to the North African and East African markets. In South
America, the company has also established business layout in Ecuador and has set up team to develop neighboring
countries. After being familiar with the characteristics of breeding and consumption in overseas local markets, the
company relies on domestic R&D technology, combined with local raw material procurement and breeding
characteristics to improve product strength, and the domestic mature technology can be gradually transformed in
foreign markets, and there is a large space for improving the profitability of overseas business products.
Ⅱ. On the basis of specialization, the breeding business to achieve the asset-light, low-risk model of stable
development
In the pig breeding business, the company slaughtered about 4.6 million heads throughout the year, the
professional ability of the team continued to improve, the breeding cost decreased, and combined with the
effective business risk control system, the annual pig breeding business loss was controllable. The company
continues to focus on the construction of its own breeding pig system, the system is gradually taking shape, and
the R&D and scale advantages of the feed end are superimposed, and the comprehensive breeding cost has made
significant progress. The pig business implemented the consolidating foundation plan throughout the year, and
achieved good results at the breeding end and fattening end, with the annual seedling production at the breeding
end increasing by 26%, and the survival rate of the stock at the fattening end increasing to over 97.5%. In addition,
in the context of overcapacity in the industry, the company focuses on exploring and implementing the operation
model of "purchasing piglets, company plus family farm, locking in profits, and hedging risks". While the pig
breeding business operates efficiently, it can also build a service system for pig feed, provide breeding solutions
and service personnel with professional breeding experience, and improve the service capacity of pig feed
business.
In the aquaculture business, the company's main aquaculture species are raw fish and shrimp special aquatic
products, and the operating income during the reporting period was about 1.4 billion yuan. The raw fish farming
business was affected by the sluggish market sales price, and the annual loss exceeded 300 million yuan. The
company has formulated reasonable breeding plan, improved the breeding management model, has controlled the
scale of breeding, and strengthened the control of breeding risks. Through the scientific design of the factory, the
circulating water system, the biological bait technology and the strict biological prevention and control, the
factory shrimp farming has the advantages of safety and controllability and stable quality compared with the
traditional aquaculture mode, and form a dislocation competition with the traditional products in terms of the time
to market and product specifications. In the process of steady progress of factory shrimp farming, the professional
ability of the team has been continuously improved, and the business model has been gradually confirmed. In the
future, the company will further consolidate its business foundation, and the aquaculture business will develop
steadily under the premise of controllable risks and controlled investment scale.
Ⅲ. The trade business is mainly the trade of feed raw materials, and the company provides raw material
procurement for the industry through large-scale and professional procurement capabilities. During the reporting
period, due to the continuous loss of pig breeding, the industry is generally short of funds and the risk is large, so
the company controls the scale of trade, reduces the operating risk, and the raw material trade business was
decreased by 44.86% year-on-year.
China's feed industry is in a period of profound change, and the contradiction of overcapacity is prominent,
providing greater development opportunities for industry differentiation and integration. In the future, the
company will maintain its strategic focus, consolidate the foundation of its main feed business, optimize and
upgrade supporting products, services and solutions around the core business of feed, seedlings and animal
healthcare, adhere to the mission of rejuvenating agriculture with science and technology, strengthen its ability to
create value for customers, achieve the target of 40 million tons of feed sales, and continue to improve the
profitability of its products.
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2. Revenue and cost
(1) Components of operating income
Unit: RMB
2023 2022
Increase/decrease
% of operating % of operating
Amount Amount
income income
Total operating
116,117,168,742.97 100% 104,715,417,485.92 100% 10.89%
income
By industry
Feed industry 100,625,094,888.81 86.66% 92,259,788,044.27 88.11% 9.07%
Farming
15,492,073,854.16 13.34% 12,455,629,441.65 11.89% 24.38%
industry
By product
Feed 95,956,237,795.73 82.64% 84,892,419,774.07 81.07% 13.03%
Animal
healthcare 1,094,616,254.63 0.94% 1,044,659,775.65 1.00% 4.78%
products
Agricultural
15,492,073,854.16 13.34% 12,455,629,441.65 11.89% 24.38%
products
Trade business 3,400,500,883.54 2.93% 6,167,203,348.23 5.89% -44.86%
Other businesses 173,739,954.91 0.15% 155,505,146.32 0.15% 11.73%
By region
Southern China 69,265,386,101.27 59.65% 63,200,713,601.52 60.35% 9.60%
Eastern China 16,173,847,857.34 13.93% 14,161,170,693.21 13.52% 14.21%
Northern China 32,361,476,949.29 27.87% 32,620,746,322.29 31.15% -0.79%
Central China 32,394,634,731.85 27.90% 28,901,065,227.88 27.60% 12.09%
Overseas 10,935,313,584.80 9.42% 8,578,402,746.94 8.19% 27.47%
Combined offset -45,013,490,481.58 -38.77% -42,746,681,105.92 -40.82% 5.30%
(2) Industries, products, regions or sales models accounting for over 10% of operating income or operating
profit of the Company
Applicable □ Not applicable
Unit: RMB
Increase/d
ecrease of
gross
Increase/decreas
Increase/decrease profit
e of operating
of operating costs margin as
Gross income as
as compared to compared
Operating income Operating costs profit compared to the
the corresponding to the
margin corresponding
period of the prior correspon
period of the
year ding
prior year
period of
the prior
year
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
By industry
Feed
100,625,094,888.81 91,754,406,302.45 8.82% 9.07% 8.39% 0.57%
industry
Farming
15,492,073,854.16 14,526,212,163.23 6.23% 24.38% 40.28% -10.64%
industry
By product
Feed 95,956,237,795.73 87,775,522,325.73 8.53% 13.03% 12.45% 0.48%
Animal
healthcare 1,094,616,254.63 552,554,966.91 49.52% 4.78% 3.13% 0.81%
products
Agricultural
15,492,073,854.16 14,526,212,163.23 6.23% 24.38% 40.28% -10.64%
products
Trade
3,400,500,883.54 3,384,436,709.49 0.47% -44.86% -43.81% -1.86%
business
By region
Southern
69,265,386,101.27 64,940,181,106.91 6.24% 9.60% 13.23% -3.02%
China
Eastern
16,173,847,857.34 15,315,359,092.57 5.31% 14.21% 14.89% -0.55%
China
Northern
32,361,476,949.29 31,352,223,665.40 3.12% -0.79% -0.54% -0.24%
China
Central
32,394,634,731.85 31,359,923,988.17 3.19% 12.09% 14.86% -2.34%
China
Overseas 10,935,313,584.80 9,661,321,418.15 11.65% 27.47% 25.52% 1.38%
Under the circumstances that the statistics specification for the Company’s principal operations data experienced
adjustment in the reporting period, the principal operations data upon adjustment of the statistics specification at
the end of the reporting period in the latest year
□ Applicable Not applicable
(3) Whether revenue from sales in kind is higher than revenue from services
Yes □ No
Increase/
By industry Item Unit 2023 2022
decrease
Sales volume 10,000 tons 2,440.23 2,165.11 12.71%
Feed industry Production output 10,000 tons 2,427.65 2,179.47 11.39%
Inventories 10,000 tons 26.12 38.70 -32.51%
Explanation on why the related data varied by more than 30%
Applicable □ Not applicable
The Company’s inventories decreased 32.51% during the reporting period compared with last year, primarily
driven by the Company’s decreased stock of products.
(4) Performance of material sales contracts and material procurement contracts of the Company during the
reporting period
□ Applicable Not applicable
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(5) Composition of operating costs
Unit: RMB
2023 2022
Increase
By industry Item % of total % of total /decreas
Amount operating Amount operating e
costs costs
Feed industry Material costs 88,202,446,185.50 96.13% 81,348,581,533.59 96.10% 8.43%
Feed industry Labour costs 989,977,644.07 1.08% 901,705,904.44 1.07% 9.79%
Manufacturing
Feed industry 2,339,254,579.25 2.55% 2,205,869,130.50 2.61% 6.05%
expenses
Contract
Feed industry performance 180,835,593.31 0.20% 163,938,546.21 0.19% 10.31%
costs
Feed industry Others 41,892,300.32 0.04% 28,573,596.86 0.03% 46.61%
Total of feed industry 91,754,406,302.45 100.00% 84,648,668,711.60 100.00% 8.39%
Farming industry Material costs 12,396,546,681.62 85.34% 8,602,722,539.07 83.08% 44.10%
Farming industry Labour costs 1,366,507,811.60 9.41% 1,094,517,161.31 10.57% 24.85%
Manufacturing
Farming industry 732,405,482.14 5.04% 629,048,626.34 6.07% 16.43%
expenses
Contract
Farming industry performance 30,752,187.87 0.21% 28,623,061.91 0.28% 7.44%
costs
Total of farming industry 14,526,212,163.23 100.00% 10,354,911,388.63 100.00% 40.28%
Unit: RMB
2023 2022
Increase
By product Item % of total % of total /decreas
Amount operating Amount operating e
costs costs
Feed Material costs 84,349,916,329.38 96.10% 74,869,360,421.56 95.91% 12.66%
Feed Labour costs 961,282,644.51 1.10% 874,421,190.94 1.12% 9.93%
Manufacturing
Feed 2,303,531,792.17 2.62% 2,172,776,439.83 2.78% 6.02%
expenses
Contract
Feed performance 160,791,559.67 0.18% 144,200,929.62 0.18% 11.51%
costs
Total feed 87,775,522,325.73 100.00% 78,060,758,981.95 100.00% 12.45%
Animal healthcare
Material costs 468,093,146.63 84.71% 455,690,788.17 85.05% 2.72%
products
Animal healthcare
Labour costs 28,694,999.56 5.19% 27,284,713.51 5.09% 5.17%
products
Animal healthcare Manufacturing
35,722,787.08 6.47% 33,092,690.67 6.18% 7.95%
products expenses
Contract
Animal healthcare
performance 20,044,033.64 3.63% 19,737,616.59 3.68% 1.55%
products
costs
Total animal
healthcare 552,554,966.91 100.00% 535,805,808.94 100.00% 3.13%
products
Agricultural
Material costs 12,396,546,681.62 85.34% 8,602,722,539.07 83.08% 44.10%
products
24
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2023 2022
Increase
By product Item % of total % of total /decreas
Amount operating Amount operating e
costs costs
Agricultural
Labour costs 1,366,507,811.60 9.41% 1,094,517,161.31 10.57% 24.85%
products
Agricultural Manufacturing
732,405,482.14 5.04% 629,048,626.34 6.07% 16.43%
products expenses
Contract
Agricultural
performance 30,752,187.87 0.21% 28,623,061.91 0.28% 7.44%
products
costs
Total agricultural
14,526,212,163.23 100.00% 10,354,911,388.63 100.00% 40.28%
products
Trade business Sales costs 3,384,436,709.49 100.00% 6,023,530,323.85 100.00% -43.81%
Other businesses Sales costs 41,892,300.32 100.00% 28,573,596.86 100.00% 46.61%
Notes
None
(6) Change of scope of consolidation during the reporting period
Yes □ No
During the year, the scope of consolidation included 557 subsidiaries, increasing by 52 and reducing by 23 as
compared with the last year. For details, please refer to the Note "VII. Interests in Other Entities" in Section X
“Financial Statements".
(7) Significant change in or adjustment of the businesses, products or services of the Company during the
reporting period
□ Applicable Not applicable
(8) Sales to major customers and major suppliers
Sales to major customers of the Company
Total sales to top 5 customers (RMB) 2,051,068,748.94
Total sales to top 5 customers as a percentage of the total sales
1.77%
for the year
Sales to top 5 customers who are related parties as a percentage
0.00%
of the total sales for the year
Information on top 5 customers of the Company
As a percentage
No. Name of customer Sales (RMB) of the total sales
for the year (%)
1 No. 1 611,757,619.24 0.53%
2 No. 2 413,695,864.30 0.36%
3 No. 3 388,903,096.38 0.33%
4 No. 4 322,044,728.58 0.28%
5 No. 5 314,667,440.44 0.27%
Total -- 2,051,068,748.94 1.77%
25
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Other explanation of major customers
Applicable □ Not applicable
The top five customers of the Company are mainly customers of livestock and poultry feed. The top five
customers have no related relationship with the Company. The Company’s directors, supervisors, senior
management, core technical personnel, shareholders holding more than 5% of shares, actual controller and other
related parties do not have direct or indirect interest in the major customers. The top five customers accounted for
1.77% of total annual sales. The Company’s sales revenue does not depend on single or top five customers.
Major suppliers of the Company
Total purchases from top 5 suppliers (RMB) 15,399,513,275.63
Total purchases from top 5 suppliers as a percentage of the total
15.41%
purchases for the year
Total purchases from top 5 suppliers who are related parties as
0.00%
a percentage of the total purchases for the year
Information on top 5 suppliers of the Company
As a percentage of
No. Name of supplier Purchases (RMB) the total purchases
for the year (%)
1 No. 1 8,720,058,449.06 8.72%
2 No. 2 2,358,904,001.81 2.36%
3 No. 3 1,989,772,692.22 1.99%
4 No. 4 1,300,102,277.02 1.31%
5 No. 5 1,030,675,855.52 1.03%
Total -- 15,399,513,275.63 15.41%
Other explanation of major suppliers
Applicable □ Not applicable
The top five suppliers of the Company have no related relationship with the Company. The Company’s directors,
supervisors, senior management, core technical personnel, shareholders holding more than 5% of shares, actual
controller and other related parties do not have direct or indirect interest in the major suppliers. The top five
suppliers accounted for 15.41% of total annual purchases. The Company’s purchases do not depend on single or
top five suppliers.
3. Expenses
Unit: RMB
Increase/
2023 2022 Reasons for material changes
decrease
Mainly due to the expansion of the Company's
Selling and
sales, the increase in personnel and their
distribution 2,259,143,012.20 1,980,987,068.23 14.04%
expenses remunerations, and the higher business promotion
expenses
The insignificant change during the current period
General and
compared with the prior year was mainly due to the
administrative 2,616,739,147.40 2,583,815,226.76 1.27%
expenses year-on-year decrease in the Company's equity
incentive expenses
Financial Mainly due to the decreased financings and
512,506,390.25 596,764,082.61 -14.12%
expenses financing costs
Research and Mainly due to the increase in R&D personnel and
development 784,880,414.03 711,235,490.13 10.35% their remunerations, as well as in research and
expenses development investments
26
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
4. Research and development investments
Applicable □ Not applicable
Name of major R&D Expected impact on
Purpose Progress Specific objectives
project the Company
The costs of the
animal feeds can be
significantly reduced
To ensure more accurate and the animal
The accurate nutrition demand nutrition, save costs of husbandry costs for
The establishment and has been identified for a range of animal feeds, avoid wastes farmers can be
maintenance of the aquatic products in multiple of animal feeds, protect the magnificently
Targeted
targeted nutrition animal husbandry modes at environment, guarantee the decreased. The
nutrition more complete digestion and growth performance
database for a range of different phases and under
aquatic products different animal husbandry absorption of animal feeds, for the aquatic
and significantly improve products can be
environments.
the growth performance higher, thus driving
the green
development of the
farming industry.
In terms of the common
diseases for livestock and
Centering on the core
The poultry, the
concept of creating
development The immunopotentiator has been immunopotentiator can
The establishment of values for customers,
of functional developed to improve the effectively improve the
the disease-resistant the animal husbandry
animal feeds resistance to bacterial and viral disease resistance, thus
nutrition system for efficiency can be
and diseases in the swine and poultry providing a stronger
livestock and poultry raised and product
functional herds. guarantee for the healthy
strength can be
additives and effective production in
boosted.
the farming of livestock and
poultry.
Relying on the
complete industrial
chain of aquaculture,
the project can give
The quality To complete systematic play to the advantage
The establishment of an Six new national aquatic species
and stable work on seed selection, of an integrated
integrated breeding have been recognized, and
supply of conservation of germplasm system of “feed +
system for shrimp and genetic breeding research on the
shrimp and resources, establishment of seedlings + animal
fish fry remaining species continues.
fish fry germplasm families, etc. health products” and
promote the green and
high-quality
development of
aquaculture.
To choose raw materials that
are easier to digest and
absorb so that the
gastrointestinal tract of
piglets can better shred and
digest. As a result, the
The research on the nutrition
piglets can be healthier and The good quality of
value evaluation of different raw
The establishment of of higher survival rate due to creep feeds and
materials, nutrition demand,
the nutrition system of Targeted the all-around and balanced nursing feeds can be
feeding modes, and feed
the creep feeds and nutrition nutrition. In addition, the created, thus making
processing has been completed,
nursing feeds piglets can have better it the industrial
and the effects have been
intestinal development and benchmark.
verified at the breeding end.
less diarrhea. The animal
feeds can be better chewed
to make the nutrition
absorption better and more
balanced to make the piglets
grow faster.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Research and development personnel of the Company
2023 2022 Percentage change
Research and development
3,525 3,382 4.23%
headcount
Ratio of research and
9.08% 9.39% -0.31%
development personnel
Educational background of research and development personnel
Bachelor’s degree 885 827 7.01%
Master’s degree 800 763 4.85%
Doctoral degree 115 113 1.77%
Age structure of research and development personnel
Below 30 1,915 1,844 3.85%
30~40 1,099 1,026 7.12%
40~50 331 330 0.30%
Over 50 180 182 -1.10%
Research and development investments of the Company
2023 2022 Percentage change
Research and development
803,082,298.63 711,235,490.13 12.91%
investments (RMB)
Research and development
investments as % of operating 0.69% 0.68% 0.01%
income
Capitalized amount of
research and development 18,201,884.60 5,081,480.58 258.20%
investments (RMB)
Capitalized research and
development investments
2.27% 0.71% 1.56%
as % of total research and
development investments
Reasons for significant change in the composition of research and development personnel and the impact
□ Applicable Not applicable
Reasons for significant change in total research and development investments as % of operating income
□ Applicable Not applicable
Reasons for significant change in capitalization rate of research and development investments and explanations
thereon
□ Applicable Not applicable
5. Cash flows
Unit: RMB
Increase/
Item 2023 2022
decrease
Sub-total of cash inflows from
119,076,079,621.32 106,959,926,011.77 11.33%
operating activities
Sub-total of cash outflows for
106,377,704,921.78 100,142,031,760.86 6.23%
operating activities
Net cash flows from operating
12,698,374,699.54 6,817,894,250.91 86.25%
activities
Sub-total of cash inflows from
5,655,779,524.28 8,817,852,475.04 -35.86%
investing activities
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Sub-total of cash outflows for
9,475,754,280.35 14,263,337,049.36 -33.57%
investing activities
Net cash flows from investing
-3,819,974,756.07 -5,445,484,574.32 29.85%
activities
Sub-total of cash inflows from
10,363,673,588.82 14,012,643,640.87 -26.04%
financing activities
Sub-total of cash outflows for
16,016,845,242.92 14,942,687,770.42 7.19%
financing activities
Net cash flows from financing
-5,653,171,654.10 -930,044,129.55 -507.84%
activities
Net increase in cash and cash
3,245,099,423.10 441,039,279.27 635.78%
equivalents
Explanation on main effects of material changes
Applicable □ Not applicable
1. Net cash flows from operating activities increased by 86.25% as compared to the corresponding period of the
prior year mainly due to the increased cash received from sales of goods in the period.
2. Net cash flows from investing activities increased by 29.85% as compared to the corresponding period of the
prior year mainly because the Company’s production capacity of 40 million tons of feed has been put in place and
the payment for acquisition of fixed assets, intangible assets and other long-term assets decreased accordingly.
3. Net cash flows from financing activities decreased by 507.84% as compared to the corresponding period of the
prior year mainly due to the decreased loans.
Explanation on main reasons leading to the material difference between net cash flows from operating activities
during the reporting period and net profit for the year
□ Applicable Not applicable
V. Analysis of Non-Principal Operations
□ Applicable Not applicable
VI. Analysis of Assets and Liabilities
1. Material changes of asset items
Unit: RMB
As at the end of 2023 As at the beginning of 2023
Percentag
As % of As % of Description of major changes
e change
Amount total Amount total
assets assets
At the end of the period, the percentage
in total assets increased by 7.16
percentage points; and the balance
Cash at increased by 142.26% from the
bank and 5,476,452,778.79 12.24% 2,260,586,666.69 5.08% 7.16% beginning of the period, which was
on hand mainly due to the increased cash from
operating activities as a result of the
expansion of the Company's business
scale.
At the end of the period, the percentage
in total assets increased by 0.21
percentage point; and the balance
Accounts
2,056,713,658.36 4.60% 1,952,007,881.05 4.39% 0.21% increased by 5.36% from the beginning
receivable
of the period, which was almost flat
with the balance at the beginning of the
period.
29
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Percentag
As at the end of 2023 As at the beginning of 2023 Description of major changes
e change
Contract
0.00 0.00% 0.00 0.00% 0.00% N/A
assets
At the end of the period, the percentage
in total assets decreased by 6.19
percentage points; and the balance
Inventorie
9,935,863,743.13 22.20% 12,625,081,651.36 28.39% -6.19% decreased by 21.30% from the
s
beginning of the period, which was
mainly due to the decreased stock of
raw materials.
At the end of the period, the percentage
in total assets increased by 0.01
Investmen percentage point; and the balance
t 29,823,321.44 0.07% 26,856,587.98 0.06% 0.01% increased by RMB 2.97 million from
properties the beginning of the period, which was
almost flat with the balance at the
beginning of the period.
At the end of the period, the percentage
in total assets decreased by 0.23
Long-term
percentage point; and the balance
equity
216,673,525.00 0.48% 315,182,888.17 0.71% -0.23% decreased by 31.25% from the
investmen
beginning of the period, which was
ts
mainly due to the withdrawal of
investment from associates.
At the end of the period, the percentage
in total assets increased by 3.06
percentage points; and the balance
increased by 9.78% from the beginning
Fixed 16,393,917,170.2 of the period, which was mainly
36.64% 14,933,452,189.00 33.58% 3.06%
assets 8 because the Company’s projects under
construction were transferred to fixed
assets after completion and being put
into production, resulting in an increase
in fixed assets.
At the end of the period, the percentage
in total assets decreased by 1.56
percentage points; and the balance
Constructi decreased by 50.07% from the
on in 687,708,201.87 1.54% 1,377,352,318.21 3.10% -1.56% beginning of the period, which was
progress mainly because the Company’s projects
under construction were transferred to
fixed assets after completion and being
put into production.
At the end of the period, the percentage
in total assets decreased by 0.06
percentage point; and the balance
Right-of-
2,360,221,694.26 5.27% 2,371,772,104.05 5.33% -0.06% decreased by 0.49% from the beginning
use assets
of the period, which was almost flat
with the balance at the beginning of the
period.
At the end of the period, the percentage
in total assets decreased by 3.43
percentage points; and the balance
Short- decreased by 52.04% from the
1,396,136,213.00 3.12% 2,910,809,252.56 6.55% -3.43%
term loans beginning of the period, which was
mainly due to the decreased short-term
bank loans and the increased repayment
of loans.
At the end of the period, the percentage
in total assets increased by 0.43
percentage point; and the balance
Contract increased by 11.72% from the
1,922,213,731.37 4.30% 1,720,519,173.21 3.87% 0.43%
liabilities beginning of the period, which was
mainly due to the increased advances
from customers as a result of a larger
business size.
30
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Percentag
As at the end of 2023 As at the beginning of 2023 Description of major changes
e change
At the end of the period, the percentage
in total assets decreased by 4.62
percentage points; and the balance
Long-term
3,027,758,789.71 6.77% 5,066,407,199.42 11.39% -4.62% decreased by 40.24% from the
loans
beginning of the period, which was
mainly due to the early repayment of
part of the long-term loans.
At the end of the period, the percentage
in total assets was flat with the balance
at the beginning of the period; and the
Lease
1,619,548,546.37 3.62% 1,610,426,421.30 3.62% 0.00% balance increased by 0.57% from the
liabilities
beginning of the period, which was
almost flat with the balance at the
beginning of the period.
At the end of the period, the percentage
in total assets increased by 1.31
Held-for-
percentage points; and the balance
trading
1,286,752,498.95 2.88% 699,942,009.75 1.57% 1.31% increased by 83.84% from the
financial
beginning of the period, which was
assets
mainly due to the increased cash
management with idle funds.
At the end of the period, the percentage
in total assets decreased by 2.36
percentage points; and the balance
Prepayme decreased by 58.42% from the
743,154,926.15 1.66% 1,787,282,249.33 4.02% -2.36%
nts beginning of the period, which was
mainly due to the decreased stock of
raw materials, resulting in a
corresponding decrease in prepayments.
At the end of the period, the percentage
in total assets increased by 5.30
percentage points; and the balance
Notes increased by 68.40% from the
5,897,614,880.98 13.18% 3,502,208,518.33 7.88% 5.30%
payable beginning of the period, which was
mainly due to the increased settlements
with notes in the procurement of raw
materials.
At the end of the period, the percentage
in total assets increased by 0.83
percentage point; and the balance
Other increased by 79.03% from the
839,176,371.57 1.88% 468,736,318.76 1.05% 0.83%
payables beginning of the period, which was
mainly due to the increased payables to
holders under the 2023 employee stock
ownership plan.
Overseas assets account for a larger proportion in total assets
□ Applicable Not applicable
2. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Impair
Cumulative ment
Gain or loss Othe
fair value provid Purchases Disposal
Opening from changes in r
Item changes ed during the during Closing balance
balance fair value during chan
recognized during period the period
the period ges
in equity the
period
31
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Financial assets
1. Held-for-
trading
financial
assets 439,630,197 14,324,188.
-24,393,860.68 270,014,574.45
(exclusive .91 55
of derivative
financial
assets)
5. Other
non-current 266,944,754
-16,802,796.88 141,654.00 1,600,000.00 248,683,611.24
financial .12
assets
Sub-total of
706,574,952 14,324,188.
financial -41,196,657.56 141,654.00 1,600,000.00 518,698,185.69
assets .03 55
Others 260,311,811 1,010,000,000 261,169,386.6 1,016,737,924.5
6,426,112.66
(note) .84 .00 7 0
Total of the 966,886,763 14,324,188. 1,010,141,654 262,769,386.6 1,535,436,110.1
-34,770,544.90
above .87 55 .00 7 9
Financial 46,533,780.
19,611,136.00 22,203,844.99
liabilities 00
Note: Others are bank’s wealth management products.
Contents of other changes
None
Whether there were any material changes on the measurement attributes of major assets of the Company during
the reporting period
□ Yes No
3. Restriction on asset rights as at the end of the reporting period
As at the end of the reporting period, the Company still had restricted assets of RMB 115,204,438.33, which were
mainly land reclamation deposits, letter of credit deposits, guarantee deposits, deposits for bank guarantees, un-
derecognized notes receivable that are endorsed and outstanding, and properties preserved.
VII. Analysis of Investments
1. Overview
Applicable □ Not applicable
Investments during
Investments during the
the corresponding period of Change
reporting period (RMB)
prior year (RMB)
3,353,272,322.86 5,001,931,119.51 -32.96%
2. Material equity investments during the reporting period
□ Applicable Not applicable
3. Material non-equity investments during the reporting period
□ Applicable Not applicable
32
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
4. Financial investments
(1) Securities investments
□ Applicable Not applicable
The Company did not make any securities investment in the reporting period.
(2) Derivatives investments
Applicable □ Not applicable
1) Derivatives investments for hedging purposes in the reporting period
Applicable □ Not applicable
Unit: RMB’0,000
Closing
Gain or
investmen
Initial loss Cumulative
from fair value t amount
invest Opening Closing
Type of derivative changes in changes Purchased Sold in the as % of
ment investmen investmen
investment fair value recognized in the period period the
amoun t amount t amount
during in equity Company
t
the period ’s closing
net assets
Futures company 0 48,631.02 1,761.29 36,105.46 494,393.52 489,346.77 57,967.83 2.95%
Commercial bank 0 0 -2,176.11 -362.48 0 0 0 0.00%
Total 0 48,631.02 -414.82 35,742.98 494,393.52 489,346.77 57,967.83 2.95%
The Company conducted accounting processing of hedging business in accordance with the stipulations in
Explanation of significant
the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
changes in accounting
Instruments (《企业会计准则第 22 号——金融工具确认和计量》), the Accounting Standards for
policies and specific
Business Enterprises No. 23 - Transfer of Financial Assets (《企业会计准则第 23 号——金融资产转
accounting measurement
移》), the Accounting Standards for Business Enterprises No. 24 - Hedging Accounting (《企业会计准则
principles in respect of the
第 24 号——套期会计》) and the Accounting Standards for Business Enterprises No. 37 - Presentation of
hedges for the reporting
Financial Instruments (《企业会计准则第 37 号——金融工具列报》) as well as their guidelines. In
period as compared to the
2023, no significant changes occurred to the accounting policies and measurements in respect of the hedges
previous reporting period
for the reporting period as compared to the previous reporting period.
The Company conducts commodity futures hedges in order to hedge against fluctuations in the market
prices of raw materials such as corn and meal, as well as the risk of fluctuations in expected future cash
Explanation of the actual
flows arising from matters such as the expected sales of pigs; and foreign exchange hedges in order to hedge
gains and losses in the
against the operational risks posed to the Company by fluctuations in foreign exchange rates. During the
reporting period
reporting period, the actual net gain after offsetting the gains and losses on the Company's commodity and
foreign exchange hedging derivative contracts and spots was RMB 154 million.
The Company engaged in commodity futures hedges mainly for corn, meal and other raw materials related
to production and operation. The risk of changes in the value of the hedged items was effectively hedged
through changes in the value of the hedging instruments, with the expected risk management objectives
Explanation of the effect
basically achieved. The Company's foreign exchange hedges were carried out because the Company's
of hedges
overseas bank loans and procurement were exposed to the risk of exchange rate fluctuations. By carrying
out forward foreign exchange settlement and sale, currency swaps, etc., the Company was able to lock in the
exchange rate costs and effectively hedge the uncertainty risk arising from exchange rate fluctuations.
Funding source Self-funded
Risk analysis of positions 1. The hedging business was compatible with the production and operation of the Company. The Company
held in derivatives during strictly controlled the positions of futures and options, conducted foreign exchange hedging transactions in
33
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
the reporting period and strict accordance with its projected collection period, payment period and amount, and reasonably made use
explanation of control of futures, options, portfolios of the aforementioned products, foreign exchange hedging and other
instruments to have a lock on the Company's costs and expenses of raw materials of animal feeds and other
measures (Including but
related products.
not limited to market risk, 2. Relevant departments and personnel strictly controlled the scale of hedging funds, reasonably planned
liquidity risk, credit risk, and used the margin, and gave operation instructions in strict accordance with the Company's futures trading
operational risk, legal management policies. No operation could be carried out unless it had been approved in light of related
risk, etc.) regulations. The Company will reasonably allocate funds for its hedging business.
3. In accordance with the Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed
Companies—the Standard Operation of Main Board Listed Companies (《深圳证券交易所上市公司自律
监管指引第 1 号--主板上市公司规范运作》), the Management System for Futures Hedging Operations
(《期货套期保值业务管理制度》), the Measures for Futures Management (《期货管理办法》), and the
Management Measures for the Operation of Pig Futures (《生猪期货业务操作管理办法》) have been
formulated, which clearly stipulate the approval authority, internal review process and risk handling
procedures for hedging business. The Company has established a special team for commodity hedging
operation and a monitoring team for commodity hedging operation, and developed corresponding business
procedures. Relevant business and activities were controlled through the implementation of authorization,
position restraint, internal audit and other measures.
4. The Company has formulated the Management System for Foreign Exchange Hedging Operations (《外
汇套期保值业务管理制度》), which clearly stipulates the limit of foreign exchange hedging business, the
scope of varieties, approval authority, internal review procedures, responsible departments and persons,
information isolation measures, internal risk reporting policies and risk handling procedures. The Policy is
in conformity with the relevant requirements of regulatory authorities, meets the needs of actual operation,
and contains effective risk control measures.
5. The Securities Department of the Company conducted regular and irregular inspections of the hedging
transaction business, and supervised the implementation of risk management policies and risk management
procedures by the personnel taking charge of the hedging transaction business, to timely prevent operational
risks in the business.
Changes in market prices
or fair value of derivative
Since the Company's varieties of commodity hedging transactions were traded at futures exchanges, with
products during the
transparent markets and active transactions, the transaction price and the settlement unit price of the day
reporting period, specific
could fully reflect the fair value of the derivatives. The varieties of foreign exchange hedging transactions
methods used and
were measured at the fair value on the date of contract signing between the Company and commercial
relevant assumption and
banks, and their fair value was subsequently measured based on the valuation notices issued by each
parameter settings shall
commercial bank at the end of the period.
be disclosed for analysis
of fair value of derivatives
Legal matters involved (if
N/A
applicable )
Disclosure date of the
announcement about the
board’s consent for the 25 April 2023
derivative investment (if
any)
Disclosure date of the
announcement about the
shareholders’ general
16 May 2023
meeting’s consent for the
derivative investment (if
any)
1. The commodity hedging business of the Company was carried out in strict accordance with relevant
policies. Therefore, the Company effectively controlled the costs and prices of products involved in its
Special opinions production and trading activities, and effectively prevented and mitigated risks. The relevant approval
procedures for the Company to use its own funds to carry out hedging business in commodity futures and
expressed by independent
options markets were in compliance with relevant national laws and regulations as well as provisions in the
directors concerning the
Articles of Association (《公司章程》). The Company has established a sound organizational structure and
Company's derivatives
developed the Management System for Futures Hedging Operations (《期货套期保值业务管理制度》)
investment and risk for commodity hedging. There is no circumstance where the interest of the Company and its entire
control shareholders has been damaged.
2. The decision-making procedures of the Company for foreign exchange hedging business were in
compliance with relevant national laws and regulations as well as provisions in the Articles of Association.
34
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
The Company made use of foreign exchange hedging instruments to reduce exchange rate risks and
financial expenses and control operational risks on the basis of normal production and operation. There is no
circumstance where the interest of the Company, its entire shareholders and especially, its minority
shareholders has been damaged. At the same time, the Company has formulated the Management System
for Foreign Exchange Hedging Operations (《外汇套期保值业务管理制度》). By strengthening internal
control and implementing risk prevention measures, specific operation standards have been developed for
the Company's foreign exchange hedging business.
In summary, it is approved that the Company and its majority-owned subsidiaries carry out commodity
hedging business and foreign exchange hedging business within the limit approved by the Board of
Directors.
2) Derivatives investments for speculative purposes in the reporting period
□ Applicable Not applicable
The Company did not make any derivatives investment for speculative purposes in the reporting period.
5. Use of raised funds
Applicable □ Not applicable
(1) Overall use of raised funds
Applicable □ Not applicable
Unit: RMB’0,000
Total Proport
Total Raised
Total raised Total ion of Total
raised Use and funds
raised funds accumu total raised
funds owners that
funds with lative accumu funds
Year that hip have
Method of Total Net that altered raised lative that
for have change been
fund- raised proceed have purpose funds raised have
fund- been of left
raising funds s been s during with funds not
raising used in unused unused
used the altered with been
the raised for over
accumu reportin purpose altered used
current funds two
latively g s purpose yet
period years
period s
Public
offering of
convertibl 281,085. 47,386.0 282,912 6,079.2 79,823.
2020 283,000 28.21% 0 N/A 0
e 42 8 .17 8 52
corporate
bonds
281,085. 47,386.0 282,912 6,079.2 79,823.
Total -- 283,000 28.21% 0 -- 0
42 8 .17 8 52
Explanation of the overall use of raised funds
Upon the approval of the CSRC through the issuance of the Approval on the Public Offering of Convertible Corporate Bonds by
Guangdong Haid Group Co., Limited (《关于核准广东海大集团股份有限公司公开发行可转换公司债券的批复》) (Zheng Jian
Xu Ke [2020] No. 205), the Company was allowed to issue convertible corporate bonds with a total face value of RMB 2,830 million
to the public. Actually, the Company issued 28.30 million convertible corporate bonds with a face value of RMB 100 each to the
public, and raised RMB 2,830,000,000.00 of funds in total. After deducting the fees related to the issuance, the actual net raised funds
was RMB 2,810,854,230.16. The availability of the above-mentioned raised funds has been verified by Grant Thornton China
(Special General Partnership), which issued the Capital Verification Report (《验资报告》) (Grant Thornton Yan Zi [2020] No.
440ZC0065) on 26 March 2020.
As at 31 December 2023, the Company used RMB 2,829.1217 million of raised funds, and accrued RMB 18.2775 million of interest
income (with banks' handling fees, etc. deducted).
35
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(2) Committed projects of raised funds
Applicable □ Not applicable
Unit: RMB’0,000
Wheth
er
Whether The Investm Date
there
projects invest Accumula ent when Wheth
are
have Total ment tive progress the Benefits er the
Committed Adjusted materi
been committed amoun investmen as at the projec recorded estima
investment projects total al
altered investmen t t amount end of ts are during ted
and investment of investmen chang
(includi t with during as at the the ready the benefi
excessive raised t amount es in
ng raised the end of the reportin for reportin ts are
funds (1) the
partial funds reporti reporting g period their g period reache
projec
alternati ng period (2) (3)＝ intend d
t
on) period (2)/(1) ed use
feasibi
lity
Committed investment projects
1. Animal feed
project of Nantong
Haid with an annual 31
output of 240,000 100.78 Octob
No 7,144.21 7,144.21 0 7,200.25 114.79 No No
tons (hereinafter % er
referred to as the 2021
"Nantong Haid
project")
2. Animal feed
project of Qingyuan
Haid with an annual 30
output of 240,000 100.17 Septe
No 6,493.11 6,493.11 0 6,504.38 1,117.6 No No
tons (hereinafter % mber
referred to as the 2021
"Qingyuan Haid
project")
3. Animal feed
project of Huai'an
Hailong with an 31
annual output of 150.2 100.48 Dece
Yes 16,123.49 11,177.39 11,231.51 -8.64 No No
200,000 tons 9 % mber
(hereinafter referred 2022
to as the "Huai'an
Hailong project")
4. Animal feed
project of Nanning
Haid with an annual 31
output of 480,000 840.8 100.42 Octob
No 23,589.07 23,589.07 23,687.4 -525.07 No No
tons (hereinafter 5 % er
referred to as the 2022
"Nanning Haid
project")
5. Animal feed
project of Zhaoqing 30
100.00
Gaoyao with an No 4,679.43 4,679.43 0 4,679.43 April 805.28 No No
%
annual output of 2020
240,000 tons
36
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(hereinafter referred
to as the "Zhaoqing
Gaoyao project")
6. Animal feed
project of Fuzhou
Haid with an annual 31
output of 180,000 101.3 100.98 Dece
Yes 29,075.05 20,429.86 20,630.24 -541.35 No No
tons (hereinafter 7 % mber
referred to as the 2022
"Fuzhou Haid
project")
7. Animal feed
project of Qingyuan
Haibei with an 1
annual output of 100.00 Januar
Yes 15,053.58 2,176.01 0 2,176.01 0 N/A No
30,000 tons % y
(hereinafter referred 2024
to as the "Qingyuan
Haibei project")
8. Animal feed
project of Shaoguan
Haid with an annual 31
output of 400,000 100.52 Dece
No 13,964.32 13,964.32 0 14,036.65 1,028.49 Yes No
tons (hereinafter % mber
referred to as the 2021
"Shaoguan Haid
project")
9. Animal feed
project of Qingyuan
Hailong with an 31
annual output of 1,470. 100.54 Dece
No 36,955.3 36,955.3 37,153.79 -959.55 No No
720,000 tons 15 % mber
(hereinafter referred 2022
to as the "Qingyuan
Hailong project")
10. Animal feed
project of Yicheng
Haid with an annual 31
output of 380,000 350.8 101.29 Dece
Yes 16,509.88 10,389.94 10,524.28 198.66 No No
tons (hereinafter 4 % mber
referred to as the 2022
"Yicheng Haid
project")
11. Animal feed
project of Hexian
Haid with an annual
30
output of 300,000 1,314. 100.88
No 21,344.95 21,344.95 21,532.43 June -68.81 No No
tons (hereinafter 45 %
2022
referred to as the
"Hexian Haid
project")
12. Animal feed
project of Kaifeng 31
Haid with an annual 191.0 100.73 Dece
Yes 17,069.03 12,693.22 12,785.51 370.65 No No
output of 300,000 8 % mber
tons (hereinafter 2022
referred to as the
37
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
"Kaifeng Haid
project")
13. Animal feed
project of
Zhanjiang Haid
1
with an annual
Januar
output of 200,000 Yes 20,380.33 0 0 0 0.00% 0 N/A No
y
tons (hereinafter
2024
referred to as the
"Zhanjiang Haid
project")
14. Animal feed
project of Yulin
Haid with an annual 31
output of 450,000 203.3 101.61 Dece
Yes 31,186.61 17,483.66 17,765.52 -262.18 No No
tons (hereinafter 7 % mber
referred to as the 2022
"Yulin Haid
project")
15. Animal feed
project of Sichuan
Rongchuan with an
31
annual output of
462.5 101.07 Dece
200,000 tons Yes 23,431.64 18,954.64 19,156.57 -652.39 No No
4 % mber
(hereinafter referred
2022
to as the "Sichuan
Rongchuan
project")
16. Animal feed
project of Jiangmen
Rongchuan with an
31
annual output of
100.30 Dece -
270,000 tons No 0 22,000 0 22,066.47 No No
% mber 1,436.18
(hereinafter referred
2022
to as the "Jiangmen
Rongchuan
project")
17. Biological
compound feed
project of Huainan
Haid with an annual 31
100.04
output of 300,000 No 0 9,477.24 0 9,480.6 July -811.95 No No
%
tons (hereinafter 2021
referred to as the
"Huainan Haid
project")
18. Biological
compound feed
project of Pingnan
Haid Feed Co., Ltd. 31
with an annual 11,877 100.26 Dece
Yes 0 11,846.28 11,877.14 -60 No No
output of 300,000 .14 % mber
tons (hereinafter 2023
referred to as the
"Pingnan Haid
project")
19. Biological feed No 0 10,500 10,50 10,501.07 100.01 31 - No No
38
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
project of Yancheng 1.07 % Dece 3,096.28
Rongchuan mber
Biotechnology Co., 2023
Ltd. with an annual
output of 300,000
tons (hereinafter
referred to as the "
Yancheng
Rongchuan
project")
20. Biological
compound feed
project of Enshi
Haid Biotechnology 31
Co., Ltd. with an 6,314. 100.01 Dece
Yes 0 6,314.17 6,314.96 0 N/A No
annual output of 96 % mber
350,000 tons 2023
(hereinafter referred
to as the "Enshi
Haid project")
21. High-end
aquatic feed project
of Hexian Haid
Biotechnology Co.,
Ltd. with an annual 30
9,007. 100.01
output of 150,000 Yes 0 9,006.55 9,007.44 June 0 N/A No
44 %
tons (hereinafter 2024
referred to as the
"Hexian High-end
Aquatic Feed
project")
22. Feed mill
construction project
of Xingtai Haid 31
Biotechnology Co., 4,600. 100.01 Dece
No 0 4,600 4,600.52 -783.69 No No
Ltd. (hereinafter 52 % mber
referred to as the 2023
"Xingtai Haid
project")
Subtotal of
281,219.3 47,38 282,912.1 -
committed -- 283,000 -- -- -- --
5 6.08 7 5,570.63
investment projects
Investment of excessive raised funds
None
281,219.3 47,38 282,912.1 -
Total -- 283,000 -- -- -- --
5 6.08 7 5,570.63
Explain project by 1. Mainly due to the impact of market fluctuations of some breeding species and the impact of the Company's
project the reasons development of new markets based on its overall business layout and optimisation of its product and customer
for failing to reach structures, the Nantong Haid project, the Zhaoqing Gaoyao project, the Qingyuan Haid project, the Hexian Haid
the planned project, the Jiangmen Rongchuan project, the Huainan Haid project, the Nanning Haid project and the Qingyuan
progress or Hailong project failed to reach the predicted returns.
predicted returns 2. The Huai’an Hailong project, the Fuzhou Haid project, the Yicheng Haid project, the Yulin Haid project, the
(including the Sichuan Rongchuan project and the Kaifeng Haid project have been partly put into production but not yet
reasons for entirely completed. As such, these projects failed to reach the predicted returns. In view of the overall business
inputting “N/A” for and market layout priorities of the Company, the remaining raised funds have been reallocated to other projects.
“Whether the 3. The Pingnan Haid project, the Yancheng Rongchuan project and the Xingtai Haid project were put into
39
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
estimated benefits production in 2023. Due to a short-term of operation, these projects failed to meet the objectives with respect to
are reached”) output and sales volumes. As such, they failed to reach the predicted returns.
4. The Enshi Haid project has been completed, and it was put into production in January 2024.
5. The Hexian High-end Aquatic Feed project as a whole has not yet been completed and is not ready for
production.
Explanations of the
material changes in
N/A
the project
feasibility
Amount, use, and
use progress of
N/A
excessive raised
funds
Applicable
Occurred before the reporting period
1. As reviewed at the 14th Meeting of the Fifth Board of Directors and the First Extraordinary General Meeting
of Shareholders in 2021, it was approved to change the implementation entities and locations of the “Qingyuan
Haibei project” and the “Zhanjiang Haid project”. To be specific, the implementation entities of “Qingyuan
Haibei Biotechnology Co., Ltd.” and “Zhanjiang Haid Feed Co., Ltd.” were changed to “Jiangmen Rongchuan
Feed Co., Ltd.” and “Huainan Haid Biological Feed Co., Ltd.” respectively, and the implementation locations of
“Qingyuan City, Guangdong Province” and “Zhanjiang City, Guangdong Province” to “Duanfen Town, Taishan
City, Guangdong Province” and “Shouxian County, Huainan City, Anhui Province” respectively.
Changes of 2. As reviewed at the Fifth Meeting of the Sixth Board of Directors and the Fifth Extraordinary General Meeting
implementation of Shareholders in 2022, it was approved to change the implementation entities and locations of the “Huai’an
locations of the Hailong project”, the “Fuzhou Haid project”, the “Yicheng Haid project”, the “Kaifeng Haid project”, the “Yulin
investment projects Haid project”, and the “Sichuan Rongchuan project”. To be specific, the implementation entities of “Huai’an
with the raised Hailong Feed Co., Ltd.”, “Fuzhou Haid Feed Co., Ltd.”, “Yicheng Haid Biotechnology Co., Ltd.”, “Kaifeng
funds Haid Feed Co., Ltd.”, “Yulin Haid Feed Co., Ltd.”, and “Sichuan Rongchuan Feed Co., Ltd.” were changed to
“Yancheng Rongchuan Biotechnology Co., Ltd.”, “Pingnan Haid Feed Co., Ltd.”, “Hexian Haid Biotechnology
Co., Ltd.”, “Enshi Haid Biotechnology Co., Ltd.”, and “Xingtai Haid Biotechnology Co., Ltd.” respectively, and
the implementation locations of “Huai’an City, Jiangsu Province”, “Fuzhou City, Fujian Province”, “Yicheng
City, Hubei Province”, “Tongxu County, Kaifeng City, Henan Province”, “Yulin City, Guangxi Zhuang
Autonomous Region”, and “Meishan City, Sichuan Province” to “east of Zhubao and west of Hengyiming,
Sheyang Port, Yancheng City, Jiangsu Province”, “Linjiang Industrial Park, Pingnan County, Guangxi Zhuang
Autonomous Region”, “Taiwan Farmers' Entrepreneurship Park in Hexian County, Anhui Province”, “Tukan
Village, Changliang Town, Jianshi County, Hubei Province”, and “Nanhe District, Xingtai City, Hebei Province”
respectively.
Adjustments to the
implementation
methods of the
N/A
investment projects
with the raised
funds
Applicable
On 9 April 2020, Grant Thornton China issued the Verification Report on the Early Investment of Self-raised
Early investment Funds in the Investment Projects with Raised Funds by Guangdong Haid Group Co., Limited (《关于广东海大
and replacement 集团股份有限公司以自筹资金预先投入募集资金投资项目的鉴证报告》) (Grant Thornton Zhuan Zi (2020)
concerning the No. 440ZA4433). The Company invested RMB 393,920,200 of self-raised funds in the raised fund projects in
investment projects the preliminary stage. On 18 April 2020, the Proposal on Replacing Self-raised Funds That Has Been Invested in
with the raised Fund-raising Investment Projects with the Raised Funds (《关于以募集资金置换预先已投入募集资金投资项
funds 目的自筹资金的议案》) on the Ninth Meeting of the Fifth Board of Directors. The Company replaced the self-
raised funds that had been invested with the raised funds of RMB 393,920,200. The interval between this
replacement with raised funds and the arrival of raised funds is shorter than six months.
Temporary
N/A
replenishment of
40
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
working capital
with the idle raised
funds
Applicable
As of 31 December 2023, the raised funds deposited in the Company's raised funds account have been used up
in accordance with the prescribed purposes. As a standard management measure of the raised funds account, the
Surplus raised Company cancelled the raised funds account and transferred the surplus (including interest income) totalling
funds for project RMB 371,321.73 to other project accounts for the use of these raised funds and to the Company's own funds
implementation and account for the permanent replenishment of working capital. In accordance with the Guidelines No. 1 of the
reasons for the Shenzhen Stock Exchange for the Self-regulation of Listed Companies—the Standard Operation of Main Board
surplus Listed Companies (《深圳证券交易所上市公司自律监管指引第 1 号--主板上市公司规范运作》), where
the surplus (including interest income) is less than RMB 5 million or 1% of the net proceeds raised for the
project, its use is exempted from the review procedures of the Board of Directors and/or the general meeting of
shareholders.
Use and ownership
change of unused N/A
raised funds
Problems in the use
of raised funds and
N/A
disclosure, or other
cases
(3) Altered projects of raised funds
Applicable □ Not applicable
Unit: RMB’0,000
Whether
Investm
Date there are
Accumulati ent Wheth
Total when material
The ve progress Benefits er the
investment the changes
Project investment investment as at the recorded estima
amount for projects in the
after amount amount as at end of during ted
Previous project the project are feasibilit
alteratio during the the end of the the benefi
after ready y of the
n reporting the reportin reportin ts are
alteration for their project
period reporting g period g period reache
(1) intended after
period (2) (3)＝ d
use alteratio
(2)/(1)
n
Jiangme
Qingyuan Haibei
n 31
project and 100.30 -
Rongch 22,000 0 22,066.47 Decemb No No
Zhanjang Haid % 1,436.18
uan er 2022
project
project
Qingyuan Haibei
Huainan
project and 100.04 31 July
Haid 9,477.24 0 9,480.6 -811.95 No No
Zhanjang Haid % 2021
project
project
Huai’an Hailong
project, Fuzhou
Haid project,
Pingnan 31
Yicheng Haid 100.26
Haid 11,846.28 11,877.14 11,877.14 Decemb -60 No No
project, Kaifeng %
project er 2023
Haid project, Yulin
Haid project,
Sichuan Rongchuan
41
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
project, Enshi Haid
project and Hexian
High-end Aquatic
Feed project
Huai’an Hailong
project, Fuzhou
Yanchen Haid project,
g Yicheng Haid 1
100.01 -
Rongch project, Kaifeng 10,500 10,501.07 10,501.07 January No No
% 3,096.28
uan Haid project, Yulin 2024
project Haid project and
Sichuan Rongchuan
project
Huai’an Hailong
project, Fuzhou
Haid project,
Enshi Yicheng Haid 31
100.01
Haid project, Kaifeng 6,314.17 6,314.96 6,314.96 Decemb 0 N/A No
%
project Haid project, Yulin er 2023
Haid project and
Sichuan Rongchuan
project
Huai’an Hailong
Hexian project, Fuzhou
Haid Haid project,
High- Yicheng Haid
100.01 30 June
end project, Kaifeng 9,006.55 9,007.44 9,007.44 0 N/A No
% 2024
Aquatic Haid project, Yulin
Feed Haid project and
project Sichuan Rongchuan
project
Huai’an Hailong
project, Fuzhou
Haid project,
Xingtai Yicheng Haid 31
100.01
Haid project, Kaifeng 4,600 4,600.52 4,600.52 Decemb -783.69 No No
%
project Haid project, Yulin er 2023
Haid project and
Sichuan Rongchuan
project
-
Total -- 73,744.24 42,301.15 73,848.21 -- -- -- --
6,188.11
1. The Jiangmen Rongchuan project and the Huainan Haid project:
(1) Decision-making procedure executed for the changes:
According to the Proposal on the Changes to Certain Raised Funds Investment
Projects (《关于变更部分募集资金投资项目的议案》) approved at the First
Extraordinary General Meeting of Shareholders in 2021 on 3 February 2021, it has
been agreed to transfer the raised funds for the Qingyuan Haibei project and the
Zhanjiang Haid project and the cash management income with the Guangzhou
Reasons for the changes, decision-making branch of HSBC Bank (China) Company Limited to the Jiangmen Rongchuan
procedure executed and information disclosed project and the Huainan Haid project.
(by specific projects) (2) Reasons for the changes:
A. Previously, the Qingyuan Haibei project intended to build an annual capacity of
30,000 tons of aquatic premix with an investment of RMB 216.0009 million. Due to
reasons such as the adjustments to the industry’s farming scale and structure and
production areas as well as the Company’s constant refinement of its product
portfolio, the Company changed the Qingyuan Haibei project to other feed projects
so as to better meet market needs and further refine the existing production capacity
structure.
42
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
B. Previously, the Zhanjiang Haid project intended to build an annual capacity of
200,000 tons of aquatic compound feed with an investment of RMB 220.9288
million to increase its supply to West Guangdong Province and East Guangxi
Province. However, the feed factory of Wuzhou Haid in East Guangxi Province has
been completed, and construction accelerated for the raised funds investment project
of Nanning Haid with an annual output of 480,000 tons of feed, which will help ease
the supply pressure in the region to some degree. In view of the priority levels of the
projects and the Company’s capacity portfolio needs, the Company changed the
Zhanjiang Haid project to other feed projects.
To sum up, in view of market needs and the Company’s capacity portfolio needs, and
in order for better use of the raised funds, the Company has changed the construction
arrangements for the Qingyuan Haibei project and the Zhanjiang Haid project and
has decided to use the remaining raised funds for advance investment in the
construction of the Jiangmen Rongchuan project and the Huainan Haid project.
(3) Information disclosure:
For details, see the Announcement on the Changes to Certain Raised Funds
Investment Projects (《关于变更部分募集资金投资项目的公告》)
(Announcement No. 2021-008), which has been disclosed on the media designated
for information disclosure, namely, the Securities Times (《证券时报》), China
Securities Journal (《中国证券报》), Shanghai Securities News (《上海证券报》),
Securities Daily (《证券日报》), and http://www.cninfo.com.cn.
2. The Yancheng Rongchuan project, the Pingnan Haid project, the Hexian Haid
High-end Aquatic Feed project, the Enshi Haid project, and the Xingtai Haid project:
(1) Decision-making procedure executed for the changes: According to the Proposal
on the Changes to Certain Raised Funds Investment Projects (《关于变更部分募集
资金投资项目的议案》) approved at the Fifth Extraordinary General Meeting of
Shareholders in 2022 on 28 December 2022, it has been agreed to transfer part of the
raised funds for the Huai’an Hailong project, the Fuzhou Haid project, the Yicheng
Haid project, the Kaifeng Haid project, the Yulin Haid project and the Sichuan
Rongchuan project to the Yancheng Rongchuan project, the Pingnan Haid project,
the Hexian Haid High-end Aquatic Feed project, the Enshi Haid project, and the
Xingtai Haid project.
(2) Reasons for the changes: A. Previously, the Huai’an Hailong project intended to
build an annual capacity of 200,000 tons of aquatic compound feed with an
investment of RMB 271.0012 million. In order to quickly relieve the supply pressure
around Huai'an City, the Company has purchased and immediately put into
production an aquatic feed production base with an annual capacity of 200,000 tons
through its majority-owned subsidiary, Jiangsu Haiwei Feed Co., Ltd. In view of its
capacity portfolio needs, the Company reallocated the remaining raised funds of the
Huai’an Hailong project to other feed projects. B. Previously, the Fuzhou Haid
project intended to build an annual capacity of 180,000 tons of aquatic compound
feed with an investment of RMB 345.4454 million. In the construction of the project,
Fuzhou Haid adjusted the production capacity allocation standard to enhance the
capacity utilization rate; at the same time, based on the Company's market strategy
adjustments, the central Fujian market previously covered by Fuzhou Haid was
shifted to Sanming Haid Feed Co., Ltd., making Fuzhou Haid basically able to meet
the demand of the market with its existing production capacity. In view of the
priority levels of the projects and the Company’s capacity portfolio needs, the
Company reallocated the remaining raised funds of the Fuzhou Haid project to other
feed projects. C. Previously, the Yicheng Haid project intended to build an annual
capacity of 380,000 tons of pig feed with an investment of RMB 170.0014 million.
The Yicheng Haid project mainly serves the Company's local farming business and
the export market within its radius. In recent years, the Company has improved the
overall capacity utilization rate through regional capacity integration, special line
technical reform of specialization and standardization and other measures; and the
new construction and technical reform project of Anlu Haid in the peripheral market
of the region has been put into operation, which has eased the supply pressure of the
peripheral pig feed market. In view of the priority levels of the projects and the
purpose to increase the utilization efficiency of raised funds, the Company
reallocated the remaining raised funds of the Yicheng Haid project to other feed
projects. D. Previously, the Kaifeng Haid project intended to build an annual capacity
of 300,000 tons of animal, poultry and aquatic compound feed with an investment of
RMB 180.0025 million. In order to quickly relieve the supply pressure, the
Company's subsidiaries, Henan Haiding and Henan Mugaole, have added
approximately 300,000 tons of feed production capacity in Kaifeng City and the
43
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
surrounding areas through leasing and renovation and expansion of their own feed
production lines respectively. In view of its capacity portfolio needs, the Company
reallocated the remaining raised funds of the Kaifeng Haid project to other feed
projects. E. Previously, the Yulin Haid project intended to build an annual capacity of
450,000 tons of animal, poultry and aquatic compound feed with an investment of
RMB 311.8661 million, which fills the gap in the market from western Guangdong
to eastern Guangxi, southern Guangxi and western Guangdong and can effectively
relieve the Company's tight supply in the region. Given that the Company's feed
mills built or acquired in the areas adjacent to Yulin, such as Nanning and Qinzhou,
have been gradually put into operation, the tight supply in the target project area has
been alleviated. In view of its capacity portfolio needs and the purpose to increase
the utilization efficiency of raised funds, the Company reallocated the remaining
raised funds of the Yulin Haid project to other feed projects. F. With the
implementation location being in Meishan City, Sichuan Province, the Sichuan
Rongchuan project previously intended to build an annual capacity of 200,000 tons
of aquatic compound feed with an investment of RMB 234.3164 million to increase
the aquatic feed supply capacity in the southwest region. Given that the Company’s
expanded and new feed projects have been gradually put into operation in the areas
around Meishan such as Chongqing, Chengdu and Deyang, effectively
supplementing the supply capacity in the southwest region and the central Sichuan
region. In view of its capacity portfolio needs and the purpose to increase the
utilization efficiency of raised funds, the Company reallocated the remaining raised
funds of the Sichuan Rongchuan project to other feed projects. To sum up, in view of
market needs and the Company’s capacity portfolio needs, and in order for better use
of the raised funds, the Company has changed the construction arrangements for the
Huai’an Hailong project, the Fuzhou Haid project, the Yicheng Haid project, the
Kaifeng Haid project, the Yulin Haid project and the Sichuan Rongchuan project, and
has decided to use the remaining raised funds for advance investment in the
construction of the Yancheng Rongchuan project, the Pingnan Haid project, the
Hexian Haid High-end Aquatic Feed project, the Enshi Haid project, and the Xingtai
Haid project.
(3) Information disclosure:
For details, see the Announcement on the Changes to Certain Raised Funds
Investment Projects (《关于变更部分募集资金投资项目的公告》)
(Announcement No. 2022-099), which has been disclosed on the media designated
for information disclosure, namely, the Securities Times (《证券时报》), China
Securities Journal (《中国证券报》), Shanghai Securities News (《上海证券报》),
Securities Daily (《证券日报》), and http://www.cninfo.com.cn.
3. The Pingnan Haid project, the Hexian Haid High-end Aquatic Feed project, and
the Enshi Haid project:
(1) Decision-making procedure executed for the changes: According to the Proposal
on the Changes to Certain Raised Funds Investment Projects (《关于变更部分募集
资金投资项目的议案》) approved at the Fourth Extraordinary General Meeting of
Shareholders in 2023 on 9 October 2023, it has been agreed to transfer part of the
raised funds for the Hexian Haid High-end Aquatic Feed project and the Enshi Haid
project to the Pingnan Haid project.
(2) Reasons for the changes: A. The Hexian Haid High-end Aquatic Feed project is to
build six high-end aquatic feed production lines with a designed capacity of 150,000
tons/year. The planned construction period of the project is approximately 24 months
and is scheduled to be completed in June 2024. As of the date of disclosure of the
Announcement on the Changes to Certain Raised Funds Investment Projects (《关于
变更部分募集资金投资项目的公告》) (hereinafter referred to as the “Date of
Disclosure of the Relevant Announcement”), the project is still under construction.
B. The Enshi Haid project is to build six feed production lines with a designed
capacity of 350,000 tons/year. The planned construction period of the project is
approximately 24 months and is scheduled to be completed in December 2023. As of
the Date of Disclosure of the Relevant Announcement, the project is still under
construction. C. In order to support the rapid realisation of the production capacity of
the Pingnan Haid project, alleviate the supply pressure of the Company in the
Guangxi market, especially around Guigang City, meet the Company's needs for
production capacity layout and further increase the efficiency of the use of the raised
funds, the Company transferred part of the raised funds for the Hexian Haid High-
44
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
end Aquatic Feed project and the Enshi Haid project to the Pingnan Haid project to
prioritise the investment in the construction of the Pingnan Haid project. After this
change, the total investment amount of the Pingnan Haid project is still RMB 138.62
million, including an intended amount of raised funds of RMB 118.4628 million.
1. Mainly due to the impact of market fluctuations of some breeding species and the
impact of the Company's development of new markets based on its overall business
layout and optimisation of its product and customer structures, the Jiangmen
Rongchuan project and the Huainan Haid project failed to reach the predicted
returns.
Cases and reasons for failing to reach the 2. The Pingnan Haid project, the Yancheng Rongchuan project and the Xingtai Haid
planned progress or predicted returns (by project were put into production in 2023. Due to a short-term of operation, these
specific projects) projects failed to meet the objectives with respect to output and sales volumes. As
such, they failed to reach the predicted returns.
3. The Enshi Haid project has been completed, and it was put into production in
January 2024.
4. The Hexian High-end Aquatic Feed project as a whole has not yet been completed
and is not ready for production.
Explanation of material changes in the
N/A
feasibility of projects after alteration
VIII. Disposal of Material Assets and Equity Interest
1. Disposal of material assets
□ Applicable Not applicable
The Company did not dispose of any material asset in the reporting period.
2. Disposal of material equity investments
□ Applicable Not applicable
IX. Analysis of major subsidiaries and investees
Applicable □ Not applicable
Major subsidiaries and investees accounting for over 10% of the net income of the Company
Unit: RMB’0,000
Name of Type of Principal Registered Operating Operating
Total assets Net assets Net profit
company company activities capital income profit
Production and
Qingyuan sales of feed
Haibei premix,
Subsidiary 10,000.00 139,646.39 101,245.99 103,350.26 29,268.17 25,264.73
Biotechnology additives and
Co., Ltd. veterinary
medicines
Acquisition and disposal of subsidiaries during the reporting period
Applicable □ Not applicable
Methods to acquire and
Impact on overall production and
Name of companies dispose of subsidiaries
operation and results
during the reporting period
45
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Guilin Yitun Ecological Agriculture Co., No material effects on the results of the
Newly established
Ltd. period
Chuzhou Yitun Ecological Agriculture No material effects on the results of the
Newly established
Co., Ltd. period
Zhangzhou Yitun Ecological Agricultural No material effects on the results of the
Newly established
Development Co., Ltd. period
Raoping Haizenong Marine No material effects on the results of the
Newly established
Biotechnology Co., Ltd. period
Yancheng Haizenong Seed Technology No material effects on the results of the
Newly established
Co., Ltd. period
Huizhou Haizenong Marine No material effects on the results of the
Newly established
Biotechnology Co., Ltd. period
Guangzhou Haizehui Fishery No material effects on the results of the
Newly established
Development Co., Ltd. period
Guangzhou Haizexin Marine No material effects on the results of the
Newly established
Biotechnology Co., Ltd. period
Yangxi Haizexin Marine Biotechnology No material effects on the results of the
Newly established
Co., Ltd. period
Shanwei Haizexin Marine Biotechnology No material effects on the results of the
Newly established
Co., Ltd. period
Shandong Haizenong Marine No material effects on the results of the
Newly established
Biotechnology Co., Ltd. period
Zhejiang Hisenor Marine Biotechnology No material effects on the results of the
Newly established
Co., Ltd. period
Jiangmen Haizenong Marine No material effects on the results of the
Newly established
Biotechnology Co., Ltd. period
Chaoyang Haihong Agricultural No material effects on the results of the
Newly established
Development Co., Ltd. period
Dandong Haiyufeng Agricultural No material effects on the results of the
Newly established
Development Co., Ltd. period
Linyi Haiding Ruminant Bio-Feed Co., No material effects on the results of the
Newly established
Ltd. period
No material effects on the results of the
Juxian Haiding Feed Co., Ltd. Newly established
period
No material effects on the results of the
Liaocheng Fengcheng Feed Co., Ltd. Newly established
period
No material effects on the results of the
Yinan Haiding Biotechnology Co., Ltd. Newly established
period
Zhuhai Haibei Supply Chain Management No material effects on the results of the
Newly established
Co., Ltd. period
Qingyuan Haikun Biotechnology Co., No material effects on the results of the
Newly established
Ltd. period
No material effects on the results of the
Qingyuan Hailier Biotechnology Co., Ltd. Newly established
period
No material effects on the results of the
Jiangmen Haiqi Technology Co., Ltd. Newly established
period
No material effects on the results of the
Guigang Hailong Biotechnology Co., Ltd. Newly established
period
No material effects on the results of the
Xinyi Fengmu Trading Co., Ltd. Newly established
period
No material effects on the results of the
Guizhou Haid Feed Co., Ltd. Newly established
period
No material effects on the results of the
Pizhou Haid Ruminant Feed Co., Ltd. Newly established
period
No material effects on the results of the
Nanping Haid Biotechnology Co., Ltd. Newly established
period
46
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
No material effects on the results of the
Quzhou Haid Huilong Bio-Feed Co., Ltd. Newly established
period
No material effects on the results of the
Xinyu Haihe Biotechnology Co., Ltd. Newly established
period
Zhuhai Haiyue Agriculture and Animal No material effects on the results of the
Newly established
Husbandry Co., Ltd. period
Qingyuan Haifulai Biotechnology Co., No material effects on the results of the
Newly established
Ltd. period
No material effects on the results of the
Guangdong Kenong Culture Co., Ltd. Newly established
period
No material effects on the results of the
Fuzhou Hailong Biotechnology Co., Ltd. Newly established
period
Yantai Haixin Animal Husbandry Co., No material effects on the results of the
Newly established
Ltd. period
Hisenor Aquatic Seed Industry No material effects on the results of the
Newly established
Technology Pte.Ltd. period
No material effects on the results of the
Kinghill Investment (Singapore) Pte.Ltd. Newly established
period
Kinghill International (Singapore) No material effects on the results of the
Newly established
Pte.Ltd. period
No material effects on the results of the
Haid International (Singapore) Pte. Ltd. Newly established
period
Haid Biotechnology Industry (Singapore) No material effects on the results of the
Newly established
Pte. Ltd. period
Histar Vietnam Aquatic Breeding No material effects on the results of the
Newly established
Company Limited period
No material effects on the results of the
Binh Phuoc Hai Long Company Limited Newly established
period
Haid Group Haiding Agriculture and No material effects on the results of the
Newly established
Animal Husbandry Kazakhstan Co., Ltd. period
Guizhou Delian Zhiyun Network No material effects on the results of the
Obtained in other ways
Technology Co., Ltd. period
Guiyang Aizhu Livestock and Poultry No material effects on the results of the
Obtained in other ways
Technical Service Co., Ltd. period
Guangzhou Jiutian Qingtan Livestock and No material effects on the results of the
Obtained in other ways
Poultry Farm Co., Ltd. period
Xishui ChenKe Feed Technology Co., Business combination not under common No material effects on the results of the
Ltd. control period
TuanFeng Source Feed Technology Co., Business combination not under common No material effects on the results of the
Ltd. control period
Huangshi ChenKe Feed Technology Co., Business combination not under common No material effects on the results of the
Ltd. control period
QiChun SiFang Feed Technology Business combination not under common No material effects on the results of the
Company Ltd. control period
Business combination not under common No material effects on the results of the
Taikun Feed (Huangmei) Co., Ltd.
control period
Business combination not under common No material effects on the results of the
Taikun Feed (Tuanfeng) Co., Ltd.
control period
Hengyang County Yitun Ecological No material effects on the results of the
De-registered
Agriculture Co., Ltd. period
Jianong (Lianyungang) Animal No material effects on the results of the
De-registered
Husbandry Technology Co., Ltd. period
Wugang Yitun Ecological Agriculture Co., No material effects on the results of the
De-registered
Ltd. period
No material effects on the results of the
Meizhou Yitun Pig Breeding Co., Ltd. De-registered
period
47
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
No material effects on the results of the
Guangzhou Haiyi Investment Co., Ltd. De-registered
period
Yingkou Fengmu Agricultural No material effects on the results of the
De-registered
Development Co., Ltd. period
Tacheng Xiyu Haisheng Agricultural No material effects on the results of the
De-registered
Development Co., Ltd. period
Guangzhou Haifengchang Enterprise No material effects on the results of the
De-registered
Management Co., Ltd. period
No material effects on the results of the
Jining Fengcheng Feed Co., Ltd. De-registered
period
No material effects on the results of the
Xuchang Haihe Feed Co., Ltd. De-registered
period
Guangzhou Zecan Investment No material effects on the results of the
De-registered
Management Co., Ltd. period
Guangdong Haid Poverty Alleviation No material effects on the results of the
De-registered
Investment Development Co., Ltd. period
Shouguang Haihe Agriculture and Animal No material effects on the results of the
De-registered
Husbandry Technology Co., Ltd. period
No material effects on the results of the
Guangdong Haid Biotechnology Co., Ltd. De-registered
period
No material effects on the results of the
Yibin Yucan Veterinary Service Co., Ltd. De-registered
period
Zhaoqing Ronghai Aquaculture No material effects on the results of the
De-registered
Technology Co., Ltd. period
Guangzhou Chenzhao Investment Co., No material effects on the results of the
De-registered
Ltd. period
No material effects on the results of the
Baotou Haicheng Feed Co., Ltd. De-registered
period
Guangdong Hairuike Biotechnology Co., No material effects on the results of the
De-registered
Ltd. period
No material effects on the results of the
Nano South Limited De-registered
period
No material effects on the results of the
Oceanic Forward Ventures Limited De-registered
period
No material effects on the results of the
Power Spring Investments Limited De-registered
period
No material effects on the results of the
Link Tide Limited De-registered
period
Description of major subsidiaries and investees
Qingyuan Haibei Biotechnology Co., Ltd. is mainly engaged in feed premix, feed additives and veterinary
medicines, and its products are mainly sold to internal companies, farmers and dealers. The gross margin level of
Qingyuan Haibei's products is higher than that of the Company's compound feed products, and it achieved a net
profit of RMB 253 million (including internal and external sales) during the reporting period. No significant year-
on-year changes occurred to either the operating results or the scale or composition of assets or other key financial
indicators of Qingyuan Haibei.
X. Structured Entities Controlled by the Company
□ Applicable Not applicable
XI. Prospects for the development of the company
I. Industry landscape and trends
The 14th Five Year Plan (2021-2025) is clearly proposed to adhere to the prior development of agriculture and
48
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
rural areas, comprehensively promote rural revitalization, and accelerate the modernization of agriculture and
rural areas. The differentiation and integration trend of the breeding industry and the feed industry continues to
accelerate, and the advantages of industry leaders in the market driven by scientific and technological innovation
are becoming more and more obvious.
1. Structural development of the feed industry
The total of China's feed industry is expected to maintain low-speed growth, and the structure of feed varieties
will continue to adjust. With the younger consumers and the change of consumption habits and concepts, the
demand structure of meat products will continue to be adjusted and optimized in the future. The consumption of
special aquatic products and egg products will continue to grow, while the consumption of meat and poultry will
remain stable, the consumption of pork will decline, and the feed varieties will show structural adjustments.
2. Industry differentiation and integration have been furtherly intensified, and international competion has been
increasingly enhanced
Affected by many factors such as overcapacity, meager profits, and large fluctuations in raw material prices in
feed industry, the requirements for the high-quality development of feed enterprises are getting higher and higher,
and the industry differentiation is obvious. At the same time, regional expansion and extension become an
important development strategy, and leading enterprises explore overseas market with scale and technological
advantages, and the international competitiveness becomes increasingly enhanced.
3. Technology-driven industry progress is more obvious
The role of technology in the competition of the industry is becoming more and more important. With the
continuous improvement of farmers' professional ability, the ability to identify feed will become clearer and
clearer, the various marketing methods that have been effective in the past do not work anymore. Providing
farmers with high-quality products and services becomes the only way to develop, so the investment in
technology research and development, as well as the industry's technology-driven trend is becoming more and
more important and obvious.
Ⅱ. Future development prospects of the company
1. The company's development strategy is to become the leading and sustainable high-tech agricultural and animal
husbandry company in China. The foundation of company development is based on "creating value for
customers". The company focuses on the upstream and downstream of aquaculture, seedling, animal healthcare,
feed, aquaculture, slaughtering, food processing and other links, building the leading industry to provide
comprehensive solutions for farmers including feed, seedling, animal healthcare, and aquaculture technology
services, as well as other needs of farmers and distributors, effectively improving the profitability of the
company's farmers and distributors, and realizing the win-win development mode between the company and
customers.
2. The basic strategy for the development of the company's industrial chain is to scale up based on specialization
and extend the industrial chain based on core competitiveness. The company will focus on feed products as its
core business, while actively developing businesses such as seedling, animal healthcare, breedings, circulation,
and food processing to cultivate the company's professional capabilities throughout the entire industrial chain and
build a comprehensive core competitiveness in the industrial chain.
3. The company's business development plan. The future development of the company will still be revolved with
the needs of the aquaculture sector, providing overall solutions for farmers, and further expanding the sales scale
and profitability of the company's feed, seedlings, and animal healthcare products. At the same time, under the
premise of controllable risk and investment, the company maintains an appropriate breeding scale of pigs and
aquatic products, and explore and build stable and controllable breeding model with light assets and low risk.
49
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
XII. Reception of research investigations, communications and interviews during the
reporting period
Applicable □ Not applicable
Main
Type of
discussions
Reception commun Communication Index to basic information on
Date Place and
method ication party communication
information
party
provided
For details, please refer to the
Harvest Fund,
The Table of Investor Relations
Maxwealth
Company Company’s Activity Records (2023-001)
23 February Field Instituti Fund, Zhongtai
Conference operations and (《投资者关系活动记录表
2023 research on Asset
Room development （2023-001）》) published on the
Management,
strategy website of www.cninfo.com.cn
etc.
on 27 February 2023
For details, please refer to the
CITIC The Table of Investor Relations
Company Securities, GF Company’s Activity Records (2023-002)
Instituti
25 April 2023 Conference By phone Securities, annual and Q1 (《投资者关系活动记录表
on
Room Kaiyuan operating （2023-002）》) published on the
Securities, etc. results website of www.cninfo.com.cn
on 27 April 2023
Investors
For details, please refer to the
communicating
The Table of Investor Relations
Communica with the
Company’s Activity Records (2023-003)
www.p5w.n tion through Company
10 May 2023 Other operations and (《投资者关系活动记录表
et an online through
development （2023-003）》) published on the
platform “Panorama
strategy website of www.cninfo.com.cn
Roadshow
on 11 May 2023
Global”
For details, please refer to the
E Fund, GTS The Table of Investor Relations
Company Fund, CMB Company’s Activity Records (2023-004)
Field
15 May 2023 Conference Other Wealth operations and (《投资者关系活动记录表
research
Room Management, development （2023-004）》) published on the
etc. strategy website of www.cninfo.com.cn
on 17 May 2023
For details, please refer to the
The Table of Investor Relations
Harvest Fund,
Company Company’s Activity Records (2023-005)
29 August Instituti Bosera Funds,
Conference By phone interim (《投资者关系活动记录表
2023 on Guosen
Room operating （2023-005）》) published on the
Securities, etc.
results website of www.cninfo.com.cn
on 31 August 2023
Investors
participating in
the 2023 For details, please refer to the
Investor The Table of Investor Relations
Communica
Relations Company’s Activity Records (2023-006)
19 September www.p5w.n tion through
Other Management operations and (《投资者关系活动记录表
2023 et an online
Month for development （2023-006）》) published on the
platform
Listed strategy website of www.cninfo.com.cn
Companies in on 19 September 2023
Guangdong
organized by
50
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
www.p5w.net
For details, please refer to the
The Table of Investor Relations
Shenzhen Company’s Activity Records (2023-007)
19 October
Stock Other Other Public investors operations and (《投资者关系活动记录表
2023
Exchange development （2023-007）》) published on the
strategy website of www.cninfo.com.cn
on 19 October 2023
For details, please refer to the
GF Securities, Table of Investor Relations
The
Company Guosen Activity Records (2023-008)
20 October Instituti Company’s
Conference By phone Securities, Hua (《投资者关系活动记录表
2023 on Q3 operating
Room Chuang （2023-008）》) published on the
results
Securities, etc. website of www.cninfo.com.cn
on 23 October 2023
XIII. Implementation of the “Development Quality and Shareholder Return Dual
Enhancement” Action Plan
Indicate whether the Company disclosed its “Development Quality and Shareholder Return Dual Enhancement”
Action Plan.
Yes □ No
In order to implement the important guidance and spirit of the meeting of the Political Bureau of the Central
Committee of the Communist Party of China that “the capital market should be enlivened and investor confidence
should be boosted” and the executive meeting of the State Council that “the quality and investment value of listed
companies should be vigorously improved, and more active and effective measures should be taken to stabilise the
capital market and investor confidence”, the Company has adhered to the philosophy of high quality and
sustainable development in its relentless pursuit of agricultural development. It continuously improved the quality
of its operation and development, investment value and the level of sustainability. To safeguard the interests of all
shareholders of the Company, enhance investor confidence and promote the stable development of the capital
market, the Company formulated its “Development Quality and Shareholder Return Dual Enhancement” Action
Plan on 7 March 2024. For details, see the Announcement on the Promotion of the “Development Quality and
Shareholder Return Dual Enhancement” Action Plan (《关于推动“质量回报双提升”行动方案的公告》)
(Announcement No.: 2024-017), which has been disclosed on the media that have been designated by the
Company for information disclosure. For information on the implementation and progress of the action plan, see
the Announcement on the Progress of the “Development Quality and Shareholder Return Dual Enhancement”
Action Plan (《关于“质量回报双提升”行动方案的进展公告》) (Announcement No.: 2024-042), which has
been disclosed on 23 April 2024 on the media that have been designated by the Company for information
disclosure.
51
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Section IV. Corporate Governance
I Overview
1. The Establishment of the Company System
From the listing of the Company to the end of the Reporting Period, the Company strictly complied with the
Company Law (《公司法》), the Securities Law (《证券法》), the Stock Listing Rules of Shenzhen Stock
Exchange (《深圳证券交易所股票上市规则》), the Guidelines No. 1 of the Shenzhen Stock Exchange for the
Self-regulation of Listed Companies—the Standard Operation of Main Board Listed Companies (《深圳证券交
易所上市公司自律监管指引第 1 号--主板上市公司规范运作》), and the laws and regulations and normative
documents and the Articles of Association, continued to improve the Company's internal corporate governance
structure, refine internal control environment, improve internal management policies, standardize corporate
operation, and strive to improve the Company's capability of governance. The actual situation of the corporate
governance conformed to the requirements of relevant normative documents issued by the China Securities
Regulatory Commission (CSRC) and Shenzhen Stock Exchange on the governance of listed companies.
During the reporting period, in accordance with the requirements of the newly amended laws and regulations of
the China Securities Regulatory Commission and the Shenzhen Stock Exchange, and taking into account the
actual situation of the Company, the Company amended the Articles of Association (《公司章程》), the Work
System for the Special Committees under the Board of Directors (《董事会专门委员会工作制度》), the Rules
of Procedure of the Supervisory Committee (《监事会议事规则》), the Independent Director System (《独立董
事制度》), the Specific Work Rules for General Manager (《总经理工作细则》), the Code of Conduct for
Directors, Supervisors and Senior Management (《董事、监事和高级管理人员行为守则》), the Work System
for Board Secretary (《董事会秘书工作制度》), the Management Measures for Shares Held by Directors,
Supervisors and Senior Management in the Company and Changes therein (《董事、监事和高级管理人员所持
本公司股份及其变动管理办法》), the Management Measures for the Provision of Financial Support for
External Parties ( 《 对 外 提 供 财 务 资 助 管 理 办 法 》 ), the Management System for Information Insider
Registration (《内幕信息知情人登记管理制度》), the Management System for Futures Hedging Operations
(《期货套期保值业务管理制度》), the Management System for Investment Decision-Making (《投资决策管
理制度》), the Investor Relations Management System (《投资者关系管理制度》), the Information Disclosure
System (《信息披露制度》), the Management System for Foreign Exchange Hedging Operations (《外汇套期
保值业务管理制度》), the Management System for Securities Investment and Futures and Derivatives Trading
(《证券投资、期货和衍生品交易管理制度》), and the Management System for the Provision of Guarantees
for External Parties (《对外担保管理制度》), in addition to newly formulating the System for the Appointment
of CPA Firm (《会计师事务所选聘制度》).
2. Shareholders and General Meeting of Shareholders
During the reporting period, the Company strictly adhered to applicable laws and regulations such as the
Company Law (《公司法》), the Articles of Association (《公司章程》), and the Rules of Procedure of the
General Meeting of Shareholders (《股东大会议事规则》), as well as the Company’s internal control rules, and
standardized the convening, holding and voting procedures of the General Meeting of Shareholders to ensure that
all shareholders could be equal, and fully exercise their rights. In addition, as witnessed by the hired lawyers, the
legitimacy of the meeting’s convening, holding and voting procedures could be guaranteed, and relevant
legitimate rights and interests of the Company and its shareholders could be secured as well. In 2023, six general
meetings of shareholders were convened and held by the Board in total; the convening, holding and voting
procedures of such meetings were witnessed by the lawyers and all were legal and valid.
3. Directors and the Board of Directors
Strictly in accordance with the Company Law (《公司法》), the Articles of Association (《公司章程》), the
Rules of Procedure of the Board of Directors (《董事会议事规则》) and the Independent Director System (《独
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
立董事制度》), the Company has elected and appointed various directors, and such election and appointment
procedures are open, fair and just. Besides, the composition and number of directors meet relevant legal and
regulatory requirements. The members for the Company’s Sixth Board of Directors are all nominated, approved
and elected by the Board of Directors by means of the cumulative voting system. Currently, there are 7 directors,
including 3 independent directors. Independent directors occupy more than one third of all directors and their
qualifications are in accordance with the Management Measures for Independent Directors of Listed Companies
(《上市公司独立董事管理办法》).
All directors of the Company have performed their duties in strict compliance with relevant laws, regulations, and
regulatory documents, attended all board meetings and carried out related works in a serious and responsible
manner, and firmly conformed to any statement and commitment made by directors. However, independent
directors have full right to know about the Company’s major issues and can issue independent opinions on major
issues without being influenced.
The Board of Directors has established the Audit Committee, the Remuneration and Appraisal committee, the
Strategy Committee and the Nomination Committee. Each committee can exercise its functions in accordance
with its work rules and make due contributions to the standardization of corporate governance. In the meantime,
the Board of Directors is able to carry out its work in strict accordance with relevant laws and regulations. All
directors of the Company are honest and trustworthy, diligent and responsible, attend corresponding board
meetings and shareholders’ general meetings with a serious attitude, actively participate in relevant training, and
are familiar with relevant laws and regulations.
4. Supervisors and the Supervisory Committee
The Company has strictly observed the Company Law (《公司法》), the Articles of Association (《公司章程》),
and other relevant regulations to appoint supervisors. The Sixth Supervisory Committee consists of three
supervisors, including two shareholder supervisors and one employee supervisor. The number and composition of
the Supervisory Committee meet relevant requirements stipulated in applicable laws and regulations. However,
the shareholder representative supervisors are elected by adopting the cumulative voting system, and the
employee supervisors are elected and appointed by means of the employees’ assembly in the form of secret ballot.
The Company’s supervisors can earnestly fulfil their responsibilities in accordance with the Rules of Procedure of
the Supervisory Committee (《监事会议事规则》), effectively supervise and inspect the Company’s major
issues, related party transactions, the legality and compliance of duties performed by the Company’s directors and
senior management, and maintain legitimate rights and interests of the Company and its shareholders.
5. Internal Audit System
The Company has established the complete internal audit system and set up the internal audit department in
charge of the effective internal supervision of the Company’s daily operations.
6. Stakeholders
The Company fully respects and safeguards legitimate rights and interests of relevant stakeholders, realizes the
coordinated balance of interests of the society, shareholders, the Company, and employees etc., sincerely treats
suppliers and customers, earnestly cultivates every employee, develops the mutual benefit and win-win
cooperation with relevant stakeholders, and jointly promotes the Company’s sustained, healthy and rapid
development.
7. Information Disclosure and Transparency
Pursuant to relevant laws and regulations, as well as the Company’s Information Disclosure System (《信息披露
制度》) and Investor Relations Management System (《投资者关系管理制度》), the Company has disclosed
corresponding information in a true, accurate, complete and timely manner to ensure that all shareholders have
equal access to such information.
The Chairman of the Board accepts primary responsibility for the management of information disclosure affairs.
The Company has designated the Board Secretary in charge of the Company’s information disclosure and investor
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
relations management, and the Securities Department serves as the executive department for information
disclosure and investor relations management. The Company pays special attention to communicate with investors
and will strengthen communication with investors by various means such as telephone, e-mail, and investor
relations interactive platform etc.
The Company's information disclosure work has been assessed by the Shenzhen Stock Exchange at the highest
level of A (Excellent) for 13 consecutive years from 2010 to 2022.
8. Investor Relations Management
The Company has always attached great importance to the management of investor relations, carried out related
works in accordance with the Investor Relations Management System (《投资者关系管理制度》) and other
systems, implemented the investor relations management by various means such as Shenzhen Stock Exchange
investor relations interactive platform, investor hot-lines, and reception of investors etc., strengthened the
communication with investors, and fully guaranteed the investors’ right to know.
The corporate governance is a systematic and long-term project that requires continuous improvement. After the
Company is successfully listed, it is willing to accept supervisions from all parties, adhere to the scientific outlook
on development, constantly improve the corporate governance system, and strengthen the implementation of
various laws and regulations to promote the healthy development of the Company and enhance the overall
competitiveness.
9. Insider Information Management
According to the Company Law (《公司法》), the Securities Law (《证券法》), the Stock Listing Rules of
Shenzhen Stock Exchange (《深圳证券交易所股票上市规则》), the Guidelines No. 5 of the Shenzhen Stock
Exchange for the Self-regulation of Listed Companies—Management of Information Disclosure Affairs (《深圳
证券交易所上市公司自律监管指引第 5 号——信息披露事务管理》), the Guidelines No. 1 of the Shenzhen
Stock Exchange for the Self-regulation of Listed Companies—the Standard Operation of Main Board Listed
Companies (《深圳证券交易所上市公司自律监管指引第 1 号--主板上市公司规范运作》), the Guidelines No.
5 for the Regulation of Listed Companies—Establishment of Insiders Registration and Management System by
Listed Companies (《上市公司监管指引第 5 号——上市公司内幕信息知情人登记管理制度》) and other
relevant laws, regulations, and the Articles of Association (《公司章程》), the Company has established the
Management System for Information Insider Registration (《内幕信息知情人登记管理制度》). The Company
properly carried out corresponding information insider registration and reporting works strictly according to
relevant requirements and systems, and recorded and disclosed the list of all information insiders and material
matter progress memorandums in all the links of reporting, transmitting, preparation, resolution-making and
disclosure before any information was disclosed. During the Reporting Period, the Company notified all directors,
supervisors, senior management and relevant information insiders that they were not allowed to buy and sell the
Company’s shares within the window period by means of SMS and e-mail 30 days before the disclosure of annual
and interim reports and 10 days before the disclosure of quarterly reports, earnings forecast announcements and
preliminary earnings estimate announcements, and conducted an internal audit on the buying and selling of the
Company’s shares by directors, supervisors, senior management and relevant information insiders. During the
reporting period, no information insider was ever involved in the illegal buying and selling of the Company’s
shares, and no relevant personnel was suspected of being involved in insider trading and was imposed some
supervision measures and administrative penalties by competent regulatory departments.
Indicate whether there is any material incompliance with the applicable laws, administrative regulations and
regulations issued by the CSRC governing the governance of listed companies
□ Yes No
No such incompliance.
54
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
II. The Company’s Independence from the Controlling Shareholder and the Actual
Controller in Asset, Personnel, Financial Affairs, Organizational Structure and Business
The Company has independent and complete businesses and independent management capabilities. It is
completely independent from the controlling shareholder in terms of asset, personnel, financial affairs,
organizational structure and business.
1. Asset: The property rights relationship between the Company and the controlling shareholder is clear. The
Company has independent land use rights and housing property. The Company's assets are independently
registered, set up in accounting, accounted for, and managed so as to avoid the controlling shareholder's
occupation for non-operating purposes and allocation of the Company's assets or the intervention of the operation
and management of such assets.
2. Personnel: The Company has established an independent human resources system. The controlling shareholder
exercises its rights and assumes corresponding obligations in accordance with the law, and does not affect the
personnel appointment or dismissal of the listed Company, nor restricted the duty fulfilment of the directors,
supervisors, senior management or other personnel of the listed Company by means other than exercising
shareholder's rights specified in laws and regulations.
3. Financial affairs: The Company has set up a complete and independent financial institution with sufficient full-
time personnel, established an independent accounting system and financial management system, set up
independent bank accounts, independently paid taxes, allocated funds, and made financial decisions. As a result,
the controlling shareholder cannot intervene in the Company's financial management;
4. Organizational structure: The Company's Board of Directors, Supervisory Committee, and internal functional
departments can independently operate. There is no leader-member relation between the controlling shareholder
and internal institutions. The controlling shareholder did not directly or indirectly intervene in the Company's
decision-making and business activities without the General Meeting of Shareholders.
5. Business: The business structure of the Company is independent and complete, which is of the business
capability of independent market orientation and management. There is no competition in terms of the Company's
business cope, business nature, customer objects, and product replaceability. In addition, the controlling
shareholder cannot harness its controlling position to the Company to try to gain the Company's business
opportunities. Moreover, the controlling shareholder cannot substitute the General Meeting of Shareholders and
the Board of Directors to directly make major decisions for the listed company and intervene in the normal
decision-making process of the listed company.
III. Horizontal Competition
□ Applicable Not applicable
IV. Annual and Extraordinary General Meetings of Shareholders Convened during the
Reporting Period
1. General Meetings of Shareholders Convened during the Reporting Period
Investor
Date of the
Meeting Type participati Disclosure date Resolutions
meeting
on ratio
For details, see the Announcement on
First Extraordinary Resolutions of First Extraordinary
General Meeting Extraordi General Meeting of Shareholders of
15.78% 8 March 2023 9 March 2023
of Shareholders of nary 2023 (《2023 年第一次临时股东大
2023 会决议公告》) (No. 2023-018)
disclosed on Securities Times, China
55
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Securities Journal, Shanghai
Securities News, Securities Daily and
www.cninfo.com.cn
For details, see the Announcement on
Resolutions of Second Extraordinary
Second General Meeting of Shareholders of
Extraordinary 2023 (《2023 年第二次临时股东大
Extraordi
General Meeting 68.26% 21 April 2023 22 April 2023 会决议公告》) (No. 2023-026)
nary
of Shareholders of disclosed on Securities Times, China
2023 Securities Journal, Shanghai
Securities News, Securities Daily and
www.cninfo.com.cn
For details, see the Announcement on
Resolutions of 2022 Annual General
Meeting of Shareholders (《2022 年
2022 Annual
年度股东大会决议公告》) (No.
General Meeting Annual 65.38% 15 May 2023 16 May 2023
2023-042) disclosed on Securities
of Shareholders
Times, China Securities Journal,
Shanghai Securities News, Securities
Daily and www.cninfo.com.cn
For details, see the Announcement on
Resolutions of Third Extraordinary
Third General Meeting of Shareholders of
Extraordinary 2023 (《2023 年第三次临时股东大
Extraordi
General Meeting 64.73% 17 July 2023 18 July 2023 会决议公告》) (No. 2023-053)
nary
of Shareholders of disclosed on Securities Times, China
2023 Securities Journal, Shanghai
Securities News, Securities Daily and
www.cninfo.com.cn
For details, see the Announcement on
Resolutions of Fourth Extraordinary
Fourth General Meeting of Shareholders of
Extraordinary 2023 (《2023 年第四次临时股东大
Extraordi
General Meeting 66.70% 9 October 2023 10 October 2023 会决议公告》) (No. 2023-084)
nary
of Shareholders of disclosed on Securities Times, China
2023 Securities Journal, Shanghai
Securities News, Securities Daily and
www.cninfo.com.cn
For details, see the Announcement on
Resolutions of Fifth Extraordinary
Fifth General Meeting of Shareholders of
Extraordinary 2023 (《2023 年第五次临时股东大
Extraordi
General Meeting 64.11% 6 November 2023 7 November 2023 会决议公告》) (No. 2023-099)
nary
of Shareholders of disclosed on Securities Times, China
2023 Securities Journal, Shanghai
Securities News, Securities Daily and
www.cninfo.com.cn
2. Extraordinary General Meetings of Shareholders Convened at Request of Preferred
Shareholders with Resumed Voting Rights
□ Applicable Not applicable
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
V. Directors, Supervisors and Senior Management
1. General Information
Increas Decrea Reas
Other
e in se in Closing ons
Incum Starting Ending Opening increas
Gen Office Reporti Reporti sharehold for
Name Age bent/F date of date of shareholdi e/decre
der title ng ng ing share
ormer tenure tenure ng (share) ase
Period Period (share) chan
(share)
(share) (share) ges
Chair
man Incum 6 June 18 August
Hua Mal of the bent 2007 2025
54
Xue e Board
Presid Incum 25 May 18 August
ent bent 2010 2025
Vice
Chair
Yingzhu Mal Incum 6 June 18 August
56 man
o Xu e bent 2007 2025
of the
Board
Direct Incum 16 July 18 August
or bent 2019 2025
Execu
Qi Mal
44 tive 52,500 52,500
Cheng e Incum 16 July 18 August
Vice
bent 2019 2025
Presid
ent
3
Direct Incum 18 August
February
or bent 2025
2021
Vice
Xueqiao Mal Incum 16 July 18 August
57 Presid 255,700 255,700
Qian e bent 2019 2025
ent
Chief 22
Incum 18 August
Engin January
bent 2025
eer 2008
Indep
enden
Jianfang Mal Incum 16 July 18 August
68 t
Gui e bent 2019 2025
Direct
or
Indep
enden
Jianguo Mal Incum 16 July 18 August
62 t
He e bent 2019 2025
Direct
or
Indep
enden
Yunguo Mal Incum 16 July 18 August
58 t
Liu e bent 2019 2025
Direct
or
Dong 14
Mal Super Incum 18 August
Shen 46 Septemb
e visor bent 2025
(note 2) er 2023
Zhenxio Mal 54 Super Forme 6 June 14
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Increas Decrea Reas
Other
e in se in Closing ons
Incum Starting Ending Opening increas
Gen Office Reporti Reporti sharehold for
Name Age bent/F date of date of shareholdi e/decre
der title ng ng ing share
ormer tenure tenure ng (share) ase
Period Period (share) chan
(share)
(share) (share) ges
ng Qi e visor r 2007 September
(note 1) 2023
16
Hua Mal Super Incum 18 August
37 Novemb
Wang e visor bent 2025
er 2020
16
Yongfan Fem Super Incum 18 August
35 Novemb
g Mu ale visor bent 2025
er 2020
Vice
Guoxian Mal Incum 16 July 18 August
55 Presid 152,070 152,070
g Liu e bent 2019 2025
ent
Vice
Incum 16 July 18 August
Presid
bent 2019 2025
ent
Shaolin Mal Chief
50 330,900 330,900
Yang e Finan 22
Incum 18 August
cial October
bent 2025
Office 2012
r
Vice
Xiewu Mal Incum 16 July 18 August
56 Presid 50,180 50,180
Jiang e bent 2019 2025
ent
Vice
Guoche Mal Incum 16 July 18 August
52 Presid 182,100 182,100
ng Mi e bent 2019 2025
ent
Vice
Zhongz Mal Incum 16 July 18 August
54 Presid 141,570 141,570
hu Chen e bent 2019 2025
ent
Mingzh Vice
Mal Incum 6 June 18 August
ong 59 Presid
e bent 2007 2025
Chen ent
Vice 19
Jiantao Mal Incum 18 August
55 Presid August
Yang e bent 2025
ent 2022
Vice 19
Jing Fem Incum 18 August
45 Presid August 8,700 8,700
Wang ale bent 2025
ent 2022
Vice
Incum 26 July 18 August
Presid
bent 2012 2025
Zhijian Mal ent
46 412,244 412,244
Huang e Board
Incum 26 July 18 August
Secret
bent 2012 2025
ary
Total -- -- -- -- -- -- 1,585,964 0 0 0 1,585,964 --
Notes:
1. Dr. Zhenxiong Qi has left his office before the expiry of his tenure on 14 September 2023 and Mr. Dong Shen
has been elected as an Employee Supervisor of the Company.
2. The opening shareholdings of Supervisor Mr. Dong Shen refer to his shareholdings on 14 September 2023
when he was elected as a Supervisor of the Company.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Indicate whether any director, supervisor or senior management resigned before the expiry of their tenures during
the reporting period
Yes □ No
The Supervisory Committee of the Company received on 13 September 2023 a written resignation report
submitted by Dr. Zhenxiong Qi, Employee Supervisor and Chairman of the Supervisory Committee. Dr.
Zhenxiong Qi has resigned from the positions of Employee Supervisor and Chairman of the Sixth Supervisory
Committee of the Company for personal reasons. And Dr. Zhenxiong Qi continued to serve in the Company after
his resignation from the aforesaid positions.
Change in directors, supervisors and senior management
Applicable □ Not applicable
Name Office title Type of change Date Reason
Resignation for
Zhenxiong Qi Supervisor Resignation 14 September 2023
personal reasons
Being elected by the
Dong Shen Supervisor Being elected 14 September 2023
Workers' Congress
2. Brief Biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the incumbent
directors, supervisors and senior management:
(1) Directors
Mr. Hua Xue, born in 1970, holds a master’s degree and is an engineer. He graduated from College of Fisheries of
Huazhong Agricultural University in 1992 with a major in special aquaculture; in 1995, he obtained the master’s
degree in zoology from School of Life Sciences of Sun Yat-Sen University. He was/is the Chairman of China
Vocational Education Group of Modern Fishery, Vice President of Guangdong Feed Industry Association, Vice
Chairman of Guangdong Antibiotic-Free Feed Industry Alliance, Vice President of Guangdong Agriculture
Industrialization Association, the NPC Member of the 16th National Congress of the Communist Party of
Guangzhou, Vice Chairman of the 16th Executive Committee of Guangzhou Federation of Industry and
Commerce, Vice President of Guangzhou Charity Federation, Vice President of Guangzhou Society for
Promotion of Guangcai Programme, and Honorary Chairman of Guangzhou Feed Profession Association
(GZFPA). Meanwhile, he is recognized as “Leading Entrepreneur in China’s Feed Industry”, “Top 30 Excellent
Entrepreneurs in China”, and “Guangdong Top 10 Economic Figures”, among others. As one of the founders of
the Company, he now serves as the Chairman of the Board and President (General Manager) of the Company, as
well as an Executive Director of the Company’s controlling shareholder Guangzhou Haihao Investment Co., Ltd.
Mr. Hua Xue holds 39.75% equity interests in the Company's controlling shareholder Guangzhou Haihao
Investment Co., Ltd. and is the actual controller of the Company.
Mr. Yingzhuo Xu, born in 1968, is a livestock specialist. He graduated from South China Agricultural University
in 1991 with a bachelor's degree in animal husbandry, and then received a master’s degree in business
administration from HEC Paris. As one of the founders of the Company, he now serves as the Company’s Vice
Chairman of the Board, as well as the General Manager of the Company’s controlling shareholder Guangzhou
Haihao Investment Co., Ltd.
Mr. Qi Cheng, born in 1980, holds a master’s degree. He graduated from the major of Automation of Huazhong
University of Science and Technology in 2002; studied the major of World Economy in Sun Yat-sen University
from 2005 to 2008 and obtained the Master’s degree; studied EMBA in CEIBS from 2013 to 2015 and obtained
MBA. From 2002 to 2010, he served as Process Engineer, Operation Manager, Supply Chain Manager and
Director of Technology in Guangzhou Procter & Gamble Co., Ltd.; from 2010 to 2017, he served as Operation
Director of East Asia-Pacific Region and Global Supply Chain Director in Essel Propack Co., Ltd. Joining the
Company in March 2017, he currently serves as a Director, an Executive Vice President (Deputy General
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Manager) (assisting the President/General Manager in the overall operations of the Company), as well as the
General Manager of the South China Region of the Company.
Dr. Xueqiao Qian, born in 1967, holds a doctorate degree. He successively presided over or participated in the
Hubei Provincial Natural Science Fund Project -- Development and Utilization of Feather Proteins in Fishery
Feeds, the development projects of the State Key Laboratory of Freshwater Ecology and Biotechnology -- Effects
of Nutrition Levels and Nutritional History on Fish’s Growth and Activities, Research on the Feeding Behaviour
and Chemical Sensation of Allogynogenetic Crucian Carp, and Studies on the Utilization of Plant Protein by Main
Cultured Freshwater Fish, the NSFC Project -- Studies on the Comparative Nutritional Energetics of Feed Protein
Requirements of Carnivorous Fish and Omnivorous Fish, and the MOA’s 948 project -- Artificial Propagation and
Large-scale Aquaculture of Paddlefish etc.. Further, he has published more than 20 papers, of which, three papers
were published in international publications and included in SCI. He joined the Company in 2004 and is mainly
engaged in the aquatic animal nutrition and feed research and the development of new feed additives. Now, he is a
Director, Deputy General Manager (Vice President) (responsible for technology research and development and the
animal healthcare business), as well as the Chief Engineer of the Company. He is also a Supervisor in the
Company’s controlling shareholder Guangzhou Haihao Investment Co., Ltd.
Dr. Jianfang Gui, born in 1956, holds a doctorate degree. He is a doctoral supervisor as well as an academician of
the Chinese Academy of Sciences and of The World Academy of Sciences. He graduated from the major of
Cytobiology of Wuhan University and obtained the Bachelor’s degree in January 1982; obtained the Master’s
degree in Genetics from Wuhan University in December 1984 and joined in Institute of Hydrobiology, Chinese
Academy of Sciences in the same year and has since worked there. In 1995, he obtained the Doctor’s degree of
science from Institute of Hydrobiology, Chinese Academy of Sciences. From 1991 to 1994, he paid work visits
and conducted postdoctoral research in Medical College of Ohio and US San Diego. From 1995, he served as
Researcher and Doctoral Supervisor in Institute of Hydrobiology, Chinese Academy of Sciences. He served as
Executive Deputy Director and Director of Hydrobiology from 1999 to 2007, Director of
State Key Laboratory of Freshwater Ecology and Biotechnology from 2001 to 2011, and Independent Director of
the First and Second Board of Directors of the Company from 2007 to 2013. Currently he serves as a research
fellow of the Institute of Hydrabiology, Chinese Academy of Sciences, and a Vice President of China Society of
Fisheries. He is an Independent Director of the Company.
Dr. Jianguo He, born in 1962, holds a doctorate degree. He is a professor, winner of “The National Science Fund
for Distinguished Young Scholars” and Chief Scientist of the State Shrimp and Crab Industry Technology System.
He graduated from the major of Zoology of Sun Yat-sen University and obtained the Doctor’s degree of science in
1990. He has been working in Sun Yat-sen University since 1991. He served as Deputy Director of College of
Life Sciences, Sun Yat-sen University from 2000 to 2008, and Director of College of Marine Science, Sun Yat-
sen University from 2008 to 2018. His current positions include Professor of Sun Yat-sen University, Director of
State Key Laboratory of Aquatic Animal Disease Prevention and Control and Healthy Farming, Director of
China-ASEAN Mariculture Technology “Belt and Road” Joint Laboratory, Deputy Director of Aquacultural
Disease Control Expert Commission of MARA, and Vice President of the Crustacean Branch of China Zoological
Society. He is an Independent Director of the Company.
Dr. Yunguo Liu, born in 1966, holds a doctorate degree in accounting from Xiamen University. He is a visiting
scholar at the University of Houston in the U.S., a National Baosteel Outstanding Teacher and a Guangdong
Province (Undergraduate) Teaching Master. His current positions and titles include Professor of Accounting and
Doctoral Supervisor in Sun Yat-sen Business School (SYSBS), Director of School of Accountancy in Guangzhou
Xinhua University (a private university), Senior Research Fellow of China Enterprise Reform and Development
Society, Member of Management Accounting Professional Committee of Chinese Accounting Society, Executive
Director of Cost Research Society of China, a management, accounting and consultancy expert of the Ministry of
Finance, Member of CGMA North Asian 100 Think Tank Leaders, Member of IMA Academic Consultation
Commission, Vice Chairman of the Advisory Branch of the China Association of Chief Financial Officers, Vice
Chairman of Guangdong Association of Management Accountants, Editorial Board Member of China
Management Accounting Studies, and Editorial Board Member of China Management Accounting Review. He
has been selected for the Accounting Masters Development Program (2019) of the Ministry of Finance, the Third
Batch for the Special Support Program of the Ministry of Finance, and the Leading Accounting Talent Program
(Phase I) of the Ministry of Finance. He is also an Independent Director of Guangzhou Haige Communications
Group Incorporated Company and Guangzhou Shiyuan Electronic Technology Company Limited. He is an
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Independent Director of the Company.
(2) Supervisors
Mr. Dong Shen, born in 1978, holds a master’s degree in law from Sun Yat-sen University. He joined the
Company in 2021, and currently serves as an Assistant Vice President of the Company, responsible for legal
affairs, brand promotion, government affairs and administrative logistics, and is the Employee Supervisor of the
Company.
Mr. Hua Wang, born in 1987, holds a master’s degree and is an economist. He majored in politics and
administration and graduated from Southwest Jiaotong University in 2009. He obtained a professional master's
degree in political theory from Wuhan University in 2011. Hua Wang worked for China Tunnel Construction Co.
Ltd. Guangdong from July 2011 to March 2017, and worked for Guangdong Cinda Real Estate Co., Ltd. from
June 2017 to March 2019. He joined the Company in April 2019, and currently serves as the Assistant to the Head
of the Group's Secretary Office, as well as a Supervisor of the Company.
Ms. Yongfang Mu, born in 1989, holds a bachelor’s degree and is an intermediate accountant. Yongfang Mu
graduated from Henan University of Economics and Law in June 2012, majoring in accounting. Joining the
Company in July 2012, she used to hold positions related to cost accounting, budget management and financial
management for the Company. She currently serves as the Financial Manager and a Supervisor of the Company.
(3) Senior Management
Mr. Guoxiang Liu, born in 1969, holds a bachelor’s degree. He graduated from the Aquaculture Department of
Huazhong Agricultural University in 1992, majoring in special aquaculture professionalism. Joining the Company
in 2004, he is now a Vice President (Deputy General Manager) (responsible for the investment, construction and
operation of the Company’s investment projects), as well as the Central China General Manager of the Company.
Mr. Shaolin Yang, born in 1974, holds a master’s degree and EMBAs and is a senior accountant, certified public
accountant, and certified tax accountant. He graduated from Sun Yat-sen University and China Europe
International Business School (CEIBS) both with a major in Business Administration. From 2008 to 2012, he
served as Executive Director, CFO and Joint Secretary of KEE Holdings Company Limited (HK.02011). He has
been selected for the high-tech enterprise review expert pool of the Department of Science and Technology of
Guangdong Province, and is a Vice Chairman of Guangdong Association of Management Accountants. Since
June 2016, he has acted as an extramural tutor for master’s degree students in accounting of Sun Yat-sen Business
School. Since 2021, he has been a tutor for master’s degree students in accounting of Guangdong University of
Foreign Studies. In 2012, he joined the Company and is currently the Company’s Vice President (Deputy General
Manager) (responsible for the Company’s finance, business finance and risk control) and CFO.
Mr. Xiewu Jiang, born in 1968, holds a bachelor’s degree and is an aquacultural engineer. He graduated from the
major of Special Aquaculture of College of Fisheries, Huazhong Agricultural University in 1992. He is Vice
Chairman of China Fisheries Association, Executive Chairman of the First Board of Directors of the Aquatic Seed
Branch of China Fisheries Association, Vice Chairman of Guangdong Ocean Association, Vice Chairman of the
Marine Animal Branch of Guangdong Ocean Association, and Honorary Chairman of Weifang Fisheries
Association. Currently, he serves as a Vice President (Deputy General Manager) (responsible for the aquatic seed
and aquaculture business) and General Manager of the Premix Division of the Company.
Mr. Guocheng Mi, born in 1972, holds a bachelor’s degree. He graduated from the major of Freshwater Fishery of
Southwest Agricultural University. He joined the Company in 2010 and currently serves as a Vice President
(Deputy General Manager) (responsible for the pig farming business) and the General Manager of the Pig
Farming Division of the Company.
Mr. Zhongzhu Chen, born in 1970, holds a master’s degree. He joined the Company in 2004 and currently serves
as a Vice President (Deputy General Manager) (responsible for the aquaculture business) and the General
Manager of the Shrimp Feed Division of the Company.
Mr. Mingzhong Chen, born in 1965, holds a master’s degree. His current social titles include Vice President of
61
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Guangzhou Municipal Agricultural Leading Enterprises Association, Vice President of the Standing Committee of
Panyu District Federation of Industry and Commerce of Guangzhou, Vice President of the three federations of
Guangzhou (including Guangzhou Industrial Economy Federation) and Executive Vice President of Nancun
General Chamber of Commerce of Panyu District, Guangzhou. He has won a number of honours and titles, such
as “Excellent Entrepreneur for Caring for Employees in Panyu District, Guangzhou”. He joined the Company in
2004 and currently serves as a Vice President (Deputy General Manager) of the Company, who is responsible for
public relations, brand image and promotion.
Mr. Jiantao Yang, born in 1969, holds an MBA degree from Hong Kong Baptist University. He joined the
Company in 2004 and currently serves as a Vice President (Deputy General Manager) of the Company, who is
responsible for raw material processing, sourcing & trading and supply chain management.
Ms. Jing Wang, born in 1979, graduated from the University of Science and Technology of China in 2001 with a
degree in Management Science and studied for an MBA at Cheung Kong Graduate School of Business from 2006
to 2008. From 2001 to 2006, she worked at Iflytek Co., Ltd., Shenzhen Bohua Consulting Co., Ltd., and Tencent
Technology Co., Ltd. From early 2008 to 2010, she worked as a consultant for IBM China. She joined the
Company in February 2012 and currently serves as a Vice President (Deputy General Manager) of the Company,
who is responsible for human resource management.
Mr. Zhijian Huang, born in 1978, is an accountant and holds a bachelor’s degree. He joined the Company in 2004
and is now a Vice President (Deputy General Manager) (responsible for securities affairs, investment and
financing and M&As), as well as the Board Secretary of the Company.
Posts concurrently held in shareholding entities
Applicable □ Not applicable
Remuneration
or allowance
Shareholding Post held in Starting date of
Name Ending date of tenure from
entity shareholding entity tenure
shareholding
entity
Guangzhou
Hua Xue Haihao Investment Executive director 27 September 2006 No
Co., Ltd.
Guangzhou
Yingzhuo Xu Haihao Investment General Manager 1 December 2021 Yes
Co., Ltd.
Guangzhou
Xueqiao Qian Haihao Investment Supervisor 1 December 2021 No
Co., Ltd.
Note N/A
Posts held concurrently in other entities
Applicable □ Not applicable
Remuneration or
Post held in Ending date of
Name Other entity Starting date of tenure allowance from
other entity tenure
the entity
Guangdong Aerocity
Hua Xue Director 21 January 2015 No
Holding Co., Ltd.
Guangzhou Huading
Hua Xue Investment Holding Supervisor 19 May 2022 No
Co., Ltd.
Guangzhou Huayu Executive
Hua Xue 14 December 2021 No
Investment Co., Ltd. Director
Yingzhuo Zhuhai Haihao Chairman of the
22 July 2020 No
Xu Industrial Investment Board
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Co., Ltd.
Yingzhuo Guangdong Haihaowan Chairman of the
22 April 2020 No
Xu Development Co., Ltd. Board
Yingzhuo Guangzhou Haihao Executive
29 April 2020 No
Xu Biotechnology Co., Ltd. Director
Guangzhou Haoyue
Yingzhuo Executive
Biotechnology 29 May 2020 No
Xu Director
Development Co., Ltd.
Guangzhou Zhuoling Executive
Yingzhuo
Investment Director and 2 June 2021 No
Xu
Development Co., Ltd. Manager
Guangzhou Zhuoyi
Yingzhuo
Investment Supervisor 4 June 2021 No
Xu
Development Co., Ltd.
Guangzhou Zhuosheng Executive
Yingzhuo
Investment Holding Director and 8 June 2021 No
Xu
Co., Ltd. Manager
Yingzhuo Guangzhou Huayu
Manager 14 December 2021 No
Xu Investment Co., Ltd.
Guangzhou Haihaowan
Yingzhuo Executive
Business Management 27 July 2022 No
Xu Director
Co., Ltd.
Xueqiao Guangzhou Huayu
Supervisor 14 December 2021 No
Qian Investment Co., Ltd.
Xueqiao Guangzhou Qingyuan Executive
25 February 2022 No
Qian Investment Co., Ltd. Director
Institute of
Jianfang
Hydrobiology, Chinese Research fellow 1 August 1995 Yes
Gui
Academy of Sciences
Jianguo
Sun Yat-Sen University Professor 1 December 1994 Yes
He
Bainong Guochuang
Jianguo
(Beijing) Technology Director 23 July 2019 No
He
Co., Ltd.
Yunguo
Sun Yat-Sen University Professor 1 December 1999 Yes
Liu
Guangzhou Haige
Yunguo Independent
Communications Group 1 December 2022 Yes
Liu Director
Incorporated Company
Guangzhou Shiyuan
Yunguo Independent
Electronic Technology 19 January 2024 Yes
Liu Director
Company Limited
Guoxiang Guangzhou Qingyuan
Supervisor 25 February 2022 No
Liu Investment Co., Ltd.
Extramural
Shaolin Tutor for
Sun Yat-Sen University 5 June 2016 5 June 2028 Yes
Yang master’s degree
students
Tutor for
Shaolin Guangdong University
master’s degree 1 January 2021 1 January 2025 Yes
Yang of Foreign Studies
students
Guangdong Association
Shaolin
of Management Vice Chairman 1 October 2021 1 October 2027 No
Yang
Accountants
Guangzhou
Xiewu Executive
Haishengyuan 27 January 2022 No
Jiang Director
Investment Co., Ltd.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Jiantao Wujiaqu Tycoon Plant
Director 19 October 2020 No
Yang Protein Co., Ltd.
Alaer Ruiliheng
Jiantao
Biological Protein Co., Director 26 October 2016 No
Yang
Ltd.
Note N/A
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors
and senior management as well as those who left in the Reporting Period
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors
and senior management
The Company has formulated the Remuneration Management System for Directors, Supervisors and Senior
Management (《董事、监事和高级管理人员薪酬管理制度》) in accordance with national laws and regulations
and taking into account its actual situation. The general meeting of shareholders, as the highest authority of the
Company, is responsible for considering and approving the implementation, changes and termination of the
remuneration system.
The Company has formulated the Remuneration Plan for Directors and Senior Management (《董事及高级管理
人员薪酬方案》) and the Allowance Plan for Supervisors (《监事津贴方案》): non-independent directors do
not receive director's allowance in the Company; independent directors adopt an annual allowance system with an
allowance of RMB 180,000/year; senior management remuneration consists of basic remuneration, floating
annual performance bonuses and other incentives, and senior management who also serve as directors are
remunerated in accordance with the senior management remuneration standards; supervisor’s allowance is RMB
60,000/year, and supervisors who also serve in other positions in the Company are remunerated by a combination
of post remuneration and supervisor’s allowance.
Remuneration of directors, supervisors and senior management in the Reporting Period
Unit: RMB’0,000
Total before-tax
Remuneration
Incumbent/For remuneration
Name Gender Age Office title from related
mer from the
party
Company
Chairman of the Board and
Hua Xue Male 54 President (Deputy General Incumbent 243.81 No
Manager)
Yingzhuo
Male 56 Vice Chairman of the Board Incumbent 0 Yes
Xu
Director and Executive Vice
Qi Cheng Male 44 President (Deputy General Incumbent 213.34 No
Manager)
Director, Vice President
Xueqiao
Male 57 (Deputy General Manager) and Incumbent 209.62 No
Qian
Chief Engineer
Jianfang
Male 68 Independent Director Incumbent 18 No
Gui
Jianguo He Male 62 Independent Director Incumbent 18 No
Yunguo Liu Male 58 Independent Director Incumbent 18 No
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Total before-tax
Remuneration
Incumbent/For remuneration
Name Gender Age Office title from related
mer from the
party
Company
Dong Shen Male 46 Supervisor Incumbent 66.47 No
Zhenxiong
Male 54 Supervisor Former 58.54 No
Qi
Hua Wang Male 37 Supervisor Incumbent 42.12 No
Yongfang
Female 35 Supervisor Incumbent 30.68 No
Mu
Guoxiang Vice President (Deputy
Male 55 Incumbent 191.4 No
Liu General Manager)
Vice President (Deputy
Shaolin
Male 50 General Manager) and Chief Incumbent 198.42 No
Yang
Financial Officer
Vice President (Deputy
Xiewu Jiang Male 56 Incumbent 191.13 No
General Manager)
Guocheng Vice President (Deputy
Male 52 Incumbent 181.25 No
Mi General Manager)
Zhongzhu Vice President (Deputy
Male 54 Incumbent 161.41 No
Chen General Manager)
Mingzhong Vice President (Deputy
Male 59 Incumbent 70.62 No
Chen General Manager)
Jiantao Vice President (Deputy
Male 55 Incumbent 89.85 No
Yang General Manager)
Vice President (Deputy
Jing Wang Male 45 Incumbent 208.12 No
General Manager)
Vice President (Deputy
Zhijian
Male 46 General Manager) and Board Incumbent 149.28 No
Huang
Secretary
Total -- -- -- -- 2,360.06 --
Note: The table above is exclusive of a total of RMB 46.0871 million of share of the operating profit of the last
three years that was granted in 2023 to the Company’s directors, supervisors and senior management (excluding
independent directors and directors who are not remunerated by the Company). The aforesaid amount has been
given to their personal accounts after deducting the individual income tax as required.
Other information
□ Applicable Not applicable
VI. Performance of Duties by Directors in the Reporting Period
1. Board Meetings Convened in the Reporting Period
Date of the Disclosure
Meeting Resolutions
meeting date
The Sixth For details, see the Announcement on Resolutions of Sixth Meeting of the
Meeting of the 31 January 1 February Sixth Board of Directors (《第六届董事会第六次会议决议公告》) (No.
Sixth Board of 2023 2023 2023-003) disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and www.cninfo.com.cn
The Seventh 20 February 21 February For details, see the Announcement on Resolutions of Seventh Meeting of
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Meeting of the 2023 2023 the Sixth Board of Directors (《第六届董事会第七次会议决议公告》)
Sixth Board of (No. 2023-009) disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and www.cninfo.com.cn
The Eighth For details, see the Announcement on Resolutions of Eighth Meeting of the
Meeting of the 27 February 1 March Sixth Board of Directors (《第六届董事会第八次会议决议公告》) (No.
Sixth Board of 2023 2023 2023-013) disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and www.cninfo.com.cn
The Ninth For details, see the Announcement on Resolutions of Ninth Meeting of the
Meeting of the Sixth Board of Directors (《第六届董事会第九次会议决议公告》) (No.
4 April 2023 6 April 2023
Sixth Board of 2023-019) disclosed on Securities Times, China Securities Journal,
Directors Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 10th Meeting of the
The 10th Meeting
25 April Sixth Board of Directors (《第六届董事会第十次会议决议公告》) (No.
of the Sixth Board 21 April 2023
2023 2023-027) disclosed on Securities Times, China Securities Journal,
of Directors
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 11th Meeting of the
The11th Meeting
29 June Sixth Board of Directors (《第六届董事会第十一次会议决议公告》)
of the Sixth Board 28 June 2023
2023 (No. 2023-044) disclosed on Securities Times, China Securities Journal,
of Directors
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 12th Meeting of the
The 12th Meeting
25 August 29 August Sixth Board of Directors (《第六届董事会第十二次会议决议公告》)
of the Sixth Board
2023 2023 (No. 2023-060) disclosed on Securities Times, China Securities Journal,
of Directors
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 13th Meeting of the
The 13th Meeting 20
19 September Sixth Board of Directors (《第六届董事会第十三次会议决议公告》)
of the Sixth Board September
2023 (No. 2023-070) disclosed on Securities Times, China Securities Journal,
of Directors 2023
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 14th Meeting of the
The 14th Meeting 28
27 September Sixth Board of Directors (《第六届董事会第十四次会议决议公告》)
of the Sixth Board September
2023 (No. 2023-080) disclosed on Securities Times, China Securities Journal,
of Directors 2023
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 15th Meeting of the
The 15th Meeting
18 October 20 October Sixth Board of Directors (《第六届董事会第十五次会议决议公告》)
of the Sixth Board
2023 2023 (No. 2023-085) disclosed on Securities Times, China Securities Journal,
of Directors
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
For details, see the Announcement on Resolutions of 16th Meeting of the
The 16th Meeting
31 October 1 November Sixth Board of Directors (《第六届董事会第十六次会议决议公告》)
of the Sixth Board
2023 2023 (No. 2023-095) disclosed on Securities Times, China Securities Journal,
of Directors
Shanghai Securities News, Securities Daily and www.cninfo.com.cn
2. Attendances of Directors at Board Meetings and General Meetings of Shareholders
Attendances of directors at board meetings and general meetings of shareholders
Due Not attending
Attendances Attendances
attendances Attendances board Attendances
at board at board Absences at
at board at board meetings in at general
Director meetings by meetings board
meetings in meetings on person for meetings of
telecommuni through a meetings
Reporting site twice in a shareholders
cation proxy
Period row
Hua Xue 11 11 0 0 0 No 6
Yingzhuo Xu 11 8 3 0 0 No 3
Qi Cheng 11 8 3 0 0 No 2
Xueqiao
11 10 1 0 0 No 3
Qian
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Jianfang Gui 11 2 9 0 0 No 2
Jianguo He 11 3 8 0 0 No 2
Yunguo Liu 11 4 7 0 0 No 3
Explanation for any independent director not attending board meetings in person for twice in a row
None of the directors failed to attend board meetings in person for twice in a row in the reporting period.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any director raised any objection on any matter of the Company
□ Yes No
No such cases in the reporting period.
4. Other Information about Performance of Duties by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company
Yes □ No
Suggestions of directors adopted or not adopted by the Company
During the reporting period, all the directors of the Company carried out their work diligently and conscientiously
in strict accordance with the Company Law (《公司法》), the Stock Listing Rules of the Shenzhen Stock
Exchange (《深圳证券交易所股票上市规则》), the Articles of Association (《公司章程》), the Rules of
Procedure for General Meetings of Shareholders (《股东大会议事规则》), and the Rules of Procedure of the
Board of Directors (《董事会议事规则》). Based on the Company's reality, they put forward relevant opinions
on the Company's major governance and operation decisions and reached consensuses through full
communication and discussion. They resolutely supervised and promoted the implementation of the resolutions of
the Board of Directors to ensure scientific, timely, and efficient decision-making and safeguard the legitimate
rights and interests of the Company and all of its shareholders.
VII. Performance of Duties by Specialized Committees under the Board of Directors in the
Reporting Period
Meeting Substantial
Details of
s Date of the Topics of the opinion and Other
Committee Members objections
convene meeting meeting recommendations activities
(if any)
d put forward
Discussed the
2022 annual audit
Communication
12 January plan and the key
meeting before the None None
2023 audit matters to
2022 annual audit
carry out review
procedures on
Yunguo Liu,
The 2023 internal
The Audit Jianguo He
9 12 January audit plan and the
Committee and Jianfang None None None
2023 2022 internal audit
Gui
summary
Communication
Discussed audit
meeting on the
21 April results of the
first draft of the None None
2023 2022 key audit
2022 Independent
matters, etc.
Auditor’s Report
67
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Discussed the
reasonableness
and compliance
of the changes to
Changes to
accounting
accounting
policies as per the
policies, and the
21 April Interpretation No.
financial None None
2023 16 for the
statements and the
Accounting
internal audit
Standards for
report for Q1 2023
Business
Enterprises (《企
业会计准则解释
第 16 号》)
The financial
25 August statements and the
None None None
2023 internal audit
report for Q2 2023
Discussed the
practice
qualifications,
personnel
information,
Appointed
16 October independence,
Independent None None
2023 and quality of
Auditor for 2023
practice of the
independent
auditor to be
reappointed for
2023
The financial
17 October statements and the
None None None
2023 internal audit
report for Q3 2023
Discussed the
2023 annual audit
29 Communication
plan and the key
December meeting before the None None
audit matters to
2023 2023 annual audit
carry out review
procedures on
The 2024 internal Discussed
29
audit plan and the internal audit
December None None
2023 internal audit priorities for
2023
summary 2024
Proposal to
Jianguo He,
The establish a human
Yunguo Liu 21 April
Nomination 1 resources None None None
and Qi 2023
Committee committee for the
Cheng
feed division
The post system
and the
The Yunguo Liu, remuneration
Remuneration Jianguo He 20 January system and plans;
6 None None None
and Appraisal and Xueqiao 2023 the satisfaction of
Committee Qian exercise
conditions for the
first exercise
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
period of the first
grant of the 2021
Share Option
Incentive Plan, etc.
Failure to satisfy
the exercise
conditions of the
2021 Share Option Discussed the
Incentive Plan and reasonableness of
retirement of the the remuneration
11 April corresponding system for
None None
2023 share options, and directors,
the remuneration supervisors and
system for senior
directors, management
supervisors and
senior
management
The 2023
Employee Stock
Ownership Plan,
23 June and retirement of
None None None
2023 certain share
options of the
2021 Share Option
Incentive Plan
The determination
of grant of the
24 July
2023 Employee None None None
2023
Stock Ownership
Plan
Adjustments to the
appraisal
26
indicators of the
September None None None
2023 Employee
2023
Stock Ownership
Plan
Confirmed the
third vesting under
29
the Fourth
December None None None
Employee Stock
2023
Ownership Plan
for Core Team
Hua Xue, The plan for Discussed the
The Strategy Yingzhuo Xu 11 April hedges in 2023, feasibility and
1 None None
Committee and Jianfang 2023 and overseas risks of the
Gui strategies hedges plan
VIII. Performance of Duties by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in
the reporting period
□ Yes No
The Supervisory Committee raised no objections in the reporting period.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
IX Employees
1. Numbers, Functions and Educational Backgrounds of Employees
Number of in-service employees of Parent Company (Haid
2,408
Group exclusive of subsidiaries) at the end of the period
Number of in-service employees of major subsidiaries at the end
36,396
of the period
Total number of in-service employees at the end of the period 38,804
Total number of paid employees in Reporting Period 38,804
Number of retirees to whom Parent Company or its major
0
subsidiaries need to pay retirement pension
Functions
Function Employees
Production 18,180
Sales 10,626
Technical 3,525
Financial 1,854
Administrative 3,700
Procurement 919
Total 38,804
Educational backgrounds
Educational background Employees
Doctoral degree 141
Master’s degree 1,787
Bachelor’s degree 8,302
Junior college 7,771
Senior high school, technical secondary school and below 20,803
Total 38,804
2. Employee Remuneration Policy
While strictly abiding by the Labour Law of the People’s Republic of China (《中华人民共和国劳动法》), the
Labour Contract Law of the People’s Republic of China (《中华人民共和国劳动合同法》) and other national
and local related laws, regulations, department rules and regulatory documents, the Company implements the
following principles according to the characteristics of the industry and the Company’s operations: persist in the
principle of labour-based distribution combining duties, power and interests; implement the principle of linking
income levels with the Company’s performance and work goals; implement the principle of integrating individual
remuneration with the Company’s long-term interests to ensure sustained and sound growth in main business,
prevent short-term behaviours and promote the Company’s sustained operations and development; stick to the
principle of linking remuneration with performance appraisal with equal emphasis on incentive and restraint; give
comprehensive consideration to market changes and market remuneration levels. The Company has established a
reasonable post and remuneration system to provide employees with competitive salaries in the industry, link
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
performance with remuneration, align employees’ and the Company’s interests, enhance staff awareness for team
work and give full play to every employee’s enthusiasm and creativity.
3. Employee Training Plans
The Company has always attached importance to talent development, knowing that the growth and development
of employees is the key driving force and core resources to promote the Company's continued prosperity. Haid
College, the Company’s functional department for talent development, has always closely adhered to Haid
Group's strategies and its business needs. Upholding the core values of "All for your growth" and adopting a
principle of elite training and inclusive education, it remains committed to solving key problems for the
development of the organization. Through an integrated online and offline training model, it has kept exploring
and optimising new models for talent development.
In 2023, Haid College was dedicated to creating a learning organization centering on creating value for customers.
It continued to carry out key programs such as the EDP Future Pilot Program, the IDP Core Executive
Development Program, and the CFO Class. By doing so, it has developed a team of managerial staff with cultural
strategic visions, business operation skills, and leadership. Moreover, it has continuously strengthened and
standardized cultural education for recruits from universities and society. In terms of overseas talent development,
through elaborate talent development programs, it has successfully cultivated a number of localized, professional
key personnel and executives, effectively promoting cross-cultural exchanges and integration.
In addition, with increasing resources, "Haiwei", the Company's platform for online learning, provides strong
support for accelerating the formation of the learning ecosystem across the Company. It has more than 8,000
online courses of nearly 7,000 hours in total, with over 30,000 online learners and a total of over 1,000,000
learning hours in the year. The Company sees a lively atmosphere of talent development. It has put in place a
sound resource system for talent development, and gradually improved the learning roadmaps of professional
centres. The training systems of all business divisions have become increasingly sophisticated, which have
become the performance highlights of HR and business managers. These have laid a solid foundation for
increasing learning resources and creating a sound ecosystem of learning in Haid Group.
4. Labour Outsourcing
□ Applicable Not applicable
X. Profit Distribution and Capitalization of Capital Reserve
Formulation, implementation or adjustment of profit distribution policy, especially the cash dividend during the
reporting period
Applicable □ Not applicable
According to the Proposal on the Preliminary Plan for the 2022 Profit Distribution (《关于2022年度利润分配预
案的议案》) as approved at the Annual General Meeting of Shareholders convened on 15 May 2023, the
distribution plan is as follows: The Company proposed to distribute RMB 4.50 (tax inclusive) per 10 shares based
on "the total number of shares exclusive of the repurchased shares (the number of shares eligible for profit
distribution) on the date of record when the plan is implemented in the future". The proposed total amount of
dividend shall not exceed the profit of the company (parent company) available for distribution to shareholders as
at 31 December 2022. The retained earnings will be carried forward to the following year. On 7 July 2023, the
equity distribution was completed.
During the reporting period, the Company has formulated the Dividend Distribution Plan of the Company for the
Next Three Years (2022-2024) ( 《 未 来 三 年 （ 2022-2024 年 ） 分 红 回 报 规 划 》 ) in accordance with the
Guidelines No. 3 for the Regulation of Listed Companies—Cash Dividend of Listed Companies (《上市公司监
管指引3号—上市公司现金分红》) and the Articles of Association (《公司章程》), among others.
The Company’s profit distribution policy, dividend distribution policy, dividend standards, and dividend ratios are
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
well-defined and clear. Independent directors have duly performed their duties and functions. Minority
shareholders have the opportunity to fully express their views and concern, which is in line with the Articles of
Association (《公司章程》) and the requirements of the consideration procedures. The conditions and procedures
for the adjustment or change of the profit distribution policy are compliant and transparent, and the legal rights
and interests of small and medium investors are fully protected.
Particulars of Cash Dividend Policy
Whether the policy is in compliance with the requirements of the
Articles of Association or the resolutions passed at the general Yes
meeting:
Whether the basis and ratio of the distribution of dividends are
Yes
well-defined and clear:
Whether the relevant decision making procedure and system are
Yes
sound:
Whether the independent directors have duly performed their
Yes
duties and functions:
If the Company has no cash dividend plan, it should disclose the
specific reasons and the next steps it intends to take to enhance N/A
investor returns
Whether there are enough opportunities for minority
shareholders to express their views and concerns, and whether Yes
their legal interests are sufficiently protected, etc:
Whether the conditions and procedures are legal and transparent
N/A
in respect of cash dividend policy with adjustments and changes:
The Company made a profit and had positive retained profit available for ordinary shareholders of parent
company during the reporting period without cash dividend being proposed
□ Applicable Not applicable
Proposals on profit distribution and capitalization of capital reserve during the reporting period
Applicable □ Not applicable
Number of bonus share per 10 shares (share(s)) 0
Dividend distribution per 10 shares (RMB) (tax inclusive) 5.00
Total number of shares exclusive of the repurchased shares on the date
Share base of the distribution proposal (shares)
of record when the plan is implemented in the future
Amount of cash dividend (RMB) (tax inclusive) 828,485,154.50
Amount of cash dividend distribution through other means
300,057,977.88
(such as share repurchase) (RMB)
Total amount of cash dividends (including other means)
1,128,543,132.38
(RMB)
Distributable profits (RMB ) 4,758,596,084.81
Total amount of cash dividends (including other means)
100%
as % of total profit distribution
Cash dividend policy
For profit distribution of companies which are in the growth period with significant capital expenditure arrangement, the percentage
for cash dividend shall represent at least 20% of the profits distribution for the current year
Particulars of profit distribution and capitalization of capital reserves
According to the audit report issued by Grant Thornton China (Special General Partnership), the net profit attributable to
shareholders of the parent company in the 2023 consolidated financial statements amounted to RMB 2,741,256,374.98, and the net
72
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
profit of the parent company amounted to RMB 1,495,187,291.11.
The Company made statutory surplus reserves of RMB 1,294,454.50 as required by the Company Law (《公司法》) and the
Articles of Association (《公司章程》), without allocation to discretionary revenue reserve. As at 31 December 2023, the profit
available for distribution to shareholders in the consolidated financial statements amounted to RMB 12,526,305,153.20, and the net
profit of the parent company available for distribution to shareholders amounted to RMB 4,758,596,084.81.
According to the Stock Listing Rules of the Shenzhen Stock Exchange (《深圳证券交易所股票上市规则》), profit distribution of
a listed company shall be based on the profit available for distribution in the financial statements of the parent company. 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 and the parent company's financial statements. Therefore, the
Company's 2023 profit distribution plan is based on the net profit of the parent company available for distribution to shareholders as
at 31 December 2023 of RMB 4,758,596,084.81.
Based on the operating results of the Company in 2023, as well as the Company's business scale and future growth, the legitimate
demands of investors and continuous return to shareholders, the Company formulated the 2023 annual profit distribution plan
(hereinafter referred to as the “Profit Distribution Plan”) as follows: The Company proposed to distribute RMB 5.00 (tax inclusive)
per 10 shares based on "the total number of shares exclusive of the repurchased shares (the number of shares eligible for profit
distribution) on the date of record when the plan is implemented in the future". The proposed total amount of dividend shall not
exceed the profit of the parent company available for distribution to shareholders as at 31 December 2023. The retained earnings will
be carried forward to the following year.
Based on the total number of shares exclusive of the repurchased shares on the disclosure date of the Profit Distribution Plan, the
estimated cash dividend amount to be distributed accounts for 30.22% of the net profit attributable to shareholders of the parent
company in the 2023 consolidated financial statements. The final distributed amount shall be subject to actual results based on "the
total number of shares exclusive of the repurchased shares (the number of shares eligible for profit distribution) on the date of record
when the plan is implemented in the future".
Meanwhile, the Company repurchased, on the open market, shares of RMB 300,057,977.88 in total (exclusive of transaction costs)
during 2023. The estimated cash dividend amount to be distributed and the total share repurchase amount in 2023 combined account
for 41.17% of the net profit attributable to shareholders of the parent company in the 2023 consolidated financial statements.
Where any change occurs to the Company’s total share capital during the period from the disclosure of the Profit Distribution Plan to
its implementation due to reasons such as share repurchases and exercise of equity incentives, the dividend per 10 shares shall remain
the same while the total amount of dividend shall be adjusted accordingly.
XI. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or Other
Employee Incentive Measures of the Company
Applicable □ Not applicable
1. Equity Incentives
(1) Implementation during the reporting period
On 31 January 2023, the Company convened the Sixth Meeting of the Sixth Board of Directors and the Fifth
Meeting of the Sixth Supervisory Committee to consider and approve the Proposal on the Adjustment to the
Exercise Price for the 2021 Share Option Incentive Plan (《关于调整公司2021年股票期权激励计划行权价格
的议案》), the Proposal on the Retirement of Certain Share Options of the 2021 Share Option Incentive Plan
(《关于注销公司2021年股票期权激励计划部分股票期权的议案》), and the Proposal on the Satisfaction of
the Exercise Conditions for the First Exercise Period of the First Grant of the 2021 Share Option Incentive Plan
(《关于公司2021年股票期权激励计划首次授予第一个行权期行权条件成就的议案》). As such, due to the
implementation of the 2021 annual equity distribution, the exercise price for the first grant and the reserve grant
under the 2021 Share Option Incentive Plan was adjusted from RMB 59.36/share to RMB 59.21/share; it was
agreed to retire 3,426,488 share options in the first grant and 319,500 share options in the reserve grant, totalling
3,745,988 share options, that had been granted but failed to satisfy the exercise conditions; and as the exercise
conditions were satisfied for the first exercise period of the first grant of the 2021 Share Option Incentive Plan,
3,586 awardees eligible for exercise were agreed to exercise 8,860,712 share options in total at their own
discretion in the first exercise period. The independent directors of the Company have expressed their independent
opinions on the above matters and the Supervisory Committee of the Company has expressed its supervisory
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
opinions.
On 21 April 2023, the Company convened the 10th Meeting of the Sixth Board of Directors and the Ninth Meeting
of the Sixth Supervisory Committee to consider and approve the Proposal on Failure to Satisfy the Exercise
Conditions for the Second Exercise Period of the First Grant and the First Exercise Period of the Reserve Grant of
the 2021 Share Option Incentive Plan and Retirement of the Corresponding Share Options (《关于公司2021年股
票期权激励计划首次授予第二个行权期及预留授予第一个行权期不符合行权条件并注销相应股票期权的
议案》). As such, it was agreed to retire 8,888,000 share options in the first grant and 1,295,780 share options in
the reserve grant, totalling 10,183,780 share options, that had been granted to certain awardees but failed to satisfy
the exercise conditions. The independent directors of the Company have expressed their independent opinions on
the above matters and the Supervisory Committee of the Company has expressed its supervisory opinions.
On 28 June 2023, the Company convened the 11th Meeting of the Sixth Board of Directors and the 10th Meeting of
the Sixth Supervisory Committee to consider and approve the Proposal on the Retirement of Due but Unexercised
Share Options in the First Exercise Period of the 2021 Share Option Incentive Plan (《关于注销2021年股票期权
激励计划第一个行权期到期未行权股票期权的议案》), and the Proposal on the Retirement of Share Options
of the 2021 Share Option Incentive Plan that Had Been Granted to Certain Awardees but Failed to Satisfy the
Exercise Conditions (《关于注销2021年股票期权激励计划部分激励对象已获授且未达行权条件的股票期权
的议案》). As the first exercise period for the first grant of the 2021 Share Option Incentive Plan had expired, it
was agreed to retire the 6,271,803 due but unexercised share options of 2,951 awardees in the first exercise period;
due to the resignation or termination of labour relations, violation of professional ethics or damage to the
Company's interests of 247 awardees in the first grant, it was agreed to retire the 1,316,040 share options that had
been granted to these awardees but failed to satisfy the exercise conditions; due to the resignation or termination
of labour relations, violation of professional ethics or damage to the Company's interests of 53 awardees in the
reserve grant, it was agreed to retire the 350,400 share options that had been granted to these awardees but failed
to satisfy the exercise conditions, with the total number of retired share options that had been granted but failed to
satisfy the exercise conditions being 1,666,440. The independent directors of the Company have expressed their
independent opinions on the above matters and the Supervisory Committee of the Company has expressed its
supervisory opinions.
During the reporting period, the awardees of the first grant of the 2021 Share Option Incentive Plan exercised
2,588,909 share options in total at their own discretion in the first exercise period, which means that the total
shares of the Company increased by 2,588,909 shares from 1,661,161,061 shares to 1,663,749,970 shares.
(2) Accounting treatments for share option incentives and impact on the operating results of the Company
According to relevant provisions under the Accounting Standards for Business Enterprises No. 11 - Share-based
Payments (《企业会计准则第11号——股份支付》), the Company will, on each balance sheet date in the
vesting period, amend the number of share options that are expected to be exercisable according to the latest
available information of changes in the number of awardees allowed to exercise share options, completion of
performance indicators and other follow-up information and include the services obtained in the current period in
the relevant costs or expenses and capital reserve at fair value of the share options on the grant date.
The implementation of the above equity incentive plan will not have a significant impact on the Company's
financial position and operating results during the reporting period and in the future.
Equity incentives for directors and senior management
Applicable □ Not applicable
Unit: share
Share Share Exerci Exerci Exerci Share Marke Restri Share Restri Grant Restri
option option sable sed se option t price cted s cted price cted
Name Office title s held s share share price s held at the shares unloc shares of the shares
at the grante option option for at the end of held ked in grante restric held
begin d in s for s in exerci end of the at the the d in ted at the
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
ning the the the sed the report begin report the shares end of
of the report report report share report ing ning ing report (RMB the
report ing ing ing option ing period of the period ing /share report
ing period period period s in period (RMB report period ) ing
period the / ing period
report share) period
ing
period
(RMB
/
share)
Director
and
Qi 100,0 20,00 60,00
Executive 44.91
Cheng 00.00 0.00 0.00
Vice
President
Director,
Vice
Xueqiao 90,00 18,00 54,00
President 44.91
Qian 0.00 0.00 0.00
and Chief
Engineer
Guoxian Vice 80,00 16,00 48,00
44.91
g Liu President 0.00 0.00 0.00
Vice
Shaolin 90,00 18,00 54,00
President 44.91
Yang 0.00 0.00 0.00
and CFO
Xiewu Vice 80,00 16,00 48,00
44.91
Jiang President 0.00 0.00 0.00
Guoche Vice 80,00 16,00 48,00
44.91
ng Mi President 0.00 0.00 0.00
Zhongz Vice 100,0 20,00 60,00
44.91
hu Chen President 00.00 0.00 0.00
Jing Vice 70,00 14,00 42,00
44.91
Wang President 0.00 0.00 0.00
Vice
Zhijian President 90,00 18,00 54,00
44.91
Huang and Board 0.00 0.00 0.00
Secretary
780,0 156,0 468,0
Total -- 0 0 -- -- 0 0 0 -- 0
00.00 00.00 00.00
1. During the reporting period, the Company convened the 10th Meeting of the Sixth Board of Directors and
the Ninth Meeting of the Sixth Supervisory Committee to consider and approve the Proposal on Failure to
Satisfy the Exercise Conditions for the Second Exercise Period of the First Grant and the First Exercise Period
of the Reserve Grant of the 2021 Share Option Incentive Plan and Retirement of the Corresponding Share
Options (《关于公司 2021 年股票期权激励计划首次授予第二个行权期及预留授予第一个行权期不符合
行权条件并注销相应股票期权的议案》). As such, it was agreed to retire the share options in the first grant
and the reserve grant that had been granted to certain awardees but failed to satisfy the exercise conditions,
including a total of 156,000.00 share options of directors and senior management.
Notes (if any)
2. During the reporting period, the Company convened the 11th Meeting of the Sixth Board of Directors and the
10th Meeting of the Sixth Supervisory Committee to consider and approve the Proposal on the Retirement of
Due but Unexercised Share Options in the First Exercise Period of the 2021 Share Option Incentive Plan (《关
于注销 2021 年股票期权激励计划第一个行权期到期未行权股票期权的议案》). As the first exercise
period for the first grant of the 2021 Share Option Incentive Plan had expired, it was agreed to retire the due
but unexercised share options of awardees in the first exercise period, including a total of 156,000.00 share
options of directors and senior management.
Appraisal mechanism and incentives for senior management
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
The Company has put in place a senior management selection, appraisal, incentive and restrictive system. All
appointed by and being responsible to the Board of Directors, senior management shoulders the operating
indicators set by the Board of Directors. The Remuneration and Appraisal Committee under the Board is
responsible for a year-end appraisal of senior management’s service ability, performance of duties and fulfilment
of objectives, among others. And then the committee formulates a remuneration plan for the Board’s review.
During the reporting period, the Company duly restricted its senior management as per the applicable laws and
regulations by strengthening the connection between performance appraisal and remuneration and incentives,
aligning remuneration with appraisal results, and achieving differentiation in remuneration and incentives.
2. Employee stock ownership plans
Applicable □ Not applicable
Outstanding employee stock ownership plans during the reporting period
Implementation during the reporting period
(1) Employee stock ownership plans for core team
On 9 February 2023, the Company convened a meeting of the holders under the Third Employee Stock Ownership
Plan, at which the Proposal on the Liquidation Report for the Third Employee Stock Ownership Plan for Core
Team (《关于〈核心团队员工持股计划三期计划清算报告〉的议案》), and the Proposal on the Termination
of the Third Employee Stock Ownership Plan (《关于终止三期持股计划的议案》) were approved. As such, the
early termination of the Third Employee Stock Ownership Plan was approved upon the completion of the
implementation of the plan.
On 29 December 2023, the Management Committee for Employee Stock Ownership Plans for Core Team
approved the proposal on equity vesting in the third vesting period of the equities of the special fund of the Fourth
Employee Stock Ownership Plan and the expiry of the lockup period. As such, the shares for the third vesting
period for holders of the equities of the special fund of the Fourth Employee Stock Ownership Plan, i.e. 30% of
the 1,194,582 shares in the Company purchased with the aforesaid special fund (358,375 shares), were vested in
all the holders through internal registration on 31 December 2023. To be specific, a total of 240,000 shares were
vested in the then directors and senior management including Mr. Qi Cheng, Mr. Xueqiao Qian, Mr. Guoxiang
Liu, Mr. Shaolin Yang, Mr. Xiewu Jiang, Mr. Guocheng Mi, Mr. Zhongzhu Chen, Mr. Zhijian Huang, and Ms.
Jing Wang), and a total of 118,375 shares were vested in other core personnel. On 31 December 2023, as the
lockup period for the Fourth Employee Stock Ownership Plan expired and the unlocking conditions had been
satisfied, all the 1,194,582 shares (or 0.0718% of the Company’s total share capital) under the Fourth Employee
Stock Ownership Plan have been allowed for trading.
(2) The 2023 Employee Stock Ownership Plan
On 28 June 2023, the Company convened the 11th Meeting of the Sixth Board of Directors and the 10th Meeting of
the Sixth Supervisory Committee to consider and approve the Proposal on the 2023 Employee Stock Ownership
Plan (Draft) of Guangdong Haid Group Co., Limited and Its Summary (《关于〈广东海大集团股份有限公司
2023 年员工持股计划（草案）〉及其摘要的议案》), the Proposal on the Management Methods for the 2023
Employee Stock Ownership Plan of Guangdong Haid Group Co., Limited (《关于〈广东海大集团股份有限公
司 2023 年员工持股计划管理办法〉的议案》), and the Proposal on Authorisation of the Board of Directors at
the General Meeting of Shareholders to Handle Matters Related to the 2023 Employee Stock Ownership Plan
(《关于提请股东大会授权董事会办理 2023 年员工持股计划有关事项的议案》). As such, the Company was
agreed to implement the 2023 Employee Stock Ownership Plan. The independent directors of the Company have
expressed their independent opinions on the above matters and the Supervisory Committee of the Company has
expressed its supervisory opinions.
On 17 July 2023, the Company convened the Third Extraordinary General Meeting of Shareholders of 2023 to
consider and approve the Proposal on the 2023 Employee Stock Ownership Plan (Draft) of Guangdong Haid
Group Co., Limited and Its Summary (《关于〈广东海大集团股份有限公司 2023 年员工持股计划（草案）〉
76
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
及其摘要的议案》), the Proposal on the Management Methods for the 2023 Employee Stock Ownership Plan of
Guangdong Haid Group Co., Limited (《关于〈广东海大集团股份有限公司 2023 年员工持股计划管理办法〉
的议案》), and the Proposal on Authorisation of the Board of Directors at the General Meeting of Shareholders to
Handle Matters Related to the 2023 Employee Stock Ownership Plan (《关于提请股东大会授权董事会办理
2023 年员工持股计划有关事项的议案》). As such, the Company was agreed to implement the 2023 Employee
Stock Ownership Plan. Meanwhile, the General Meeting of Shareholders authorised the Board of Directors to
handle matters related to the 2023 Employee Stock Ownership Plan.
On 25 August 2023, the Company convened the 12th Meeting of the Sixth Board of Directors to consider and
approve the Proposal on the Adjustment to the Transfer Price for the 2023 Employee Stock Ownership Plan (《关
于调整公司 2023 年员工持股计划受让价格的议案》). As such, due to the implementation of the 2022 annual
profit distribution, in accordance with the authorisation of the General Meeting of Shareholders and the relevant
provisions of the 2023 Employee Stock Ownership Plan, the Board of Directors adjusted the transfer price for the
2023 Employee Stock Ownership Plan from RMB 23.90/share to RMB 23.45/share. The independent directors of
the Company have expressed their independent opinions on the above matters.
On 11 September 2023, the Company received the Confirmation of Registration of Transfer of Securities (《证券
过户登记确认书》) issued by the Shenzhen branch of China Securities Depository and Clearing Corporation
Limited. As such, on 8 September 2023, the 10,272,108 shares in the Company’s securities account for
repurchased shares were transferred through a non-transaction transfer to the Company’s securities account—"
Guangdong Haid Group Co., Limited-The 2023 Employee Stock Ownership Plan”.
On 27 September 2023, the Company convened the 14th Meeting of the Sixth Board of Directors to consider and
approve the Proposal on the Adjustment to the Performance Appraisal Indicators for the 2023 Employee Stock
Ownership Plan (《关于调整公司 2023 年员工持股计划业绩考核指标的议案》). As such, it was agreed to
adjust the company performance appraisal indicators, etc. for the year 2023 for the 2023 Employee Stock
Ownership Plan, together with the provisions related to the company performance appraisal indicators for the year
2023 in the 2023 Employee Stock Ownership Plan and its Summary, as well as in the Management Methods for
the 2023 Employee Stock Ownership Plan. The independent directors of the Company have expressed their
independent opinions on the above matters.
As a
percentage
Number of Total shares of the
Scope of employees Change Funding source
employees held Company’s
total share
capital
The awardees for the Fourth
Employee Stock Ownership Plan The special fund
(《核心团队员工持股计划之四期 established by the
计划》) are key personnel that play No more than 30 1,194,582 None 0.07% Company for the
a significant role in the Company’s employee stock
operating performance and mid- ownership plan
and long-term development.
The awardees for the 2023 Employees’ lawful
Employee Stock Ownership Plan income, self-pooled
(《2023 年员工持股计划》) are No more than funds or funds
10,272,108 None 0.62%
directors, supervisors, senior 3,700 obtained through
management and other core other means permitted
personnel. by applicable law
Shares held by directors, supervisors and senior management under employee stock ownership plans during the
reporting period
77
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Shares held at the Shares held at the As a percentage of
Name Office title beginning of the end of the reporting the Company’s total
reporting period period share capital
Director and Executive Vice President
Qi Cheng
(Deputy General Manager)
Director, Vice President (Deputy General
Xueqiao Qian
Manager) and Chief Engineer
Dong Shen Supervisor
Hua Wang Supervisor
Yongfang Mu Supervisor
Guoxiang Liu Vice President (Deputy General Manager)
Vice President (Deputy General Manager)
Shaolin Yang 800,000 1,613,324 0.09%
and CFO
Xiewu Jiang Vice President (Deputy General Manager)
Guocheng Mi Vice President (Deputy General Manager)
Zhongzhu
Vice President (Deputy General Manager)
Chen
Jing Wang Vice President (Deputy General Manager)
Jiantao Yang Vice President (Deputy General Manager)
Vice President (Deputy General Manager)
Zhijian Huang
and Board Secretary
Change of asset management organizations during the reporting period
□ Applicable Not applicable
Equity changes incurred by disposal of shares by holders, etc. during the reporting period
□ Applicable Not applicable
Exercise of shareholder rights during the reporting period
Not applicable.
Other information about employee stock ownership plans during the reporting period
Applicable □ Not applicable
During the reporting period, there were circumstances where holders of the 2023 Employee Stock Ownership Plan
became no longer eligible for the Plan due to their resignation, etc., which should be handled according to the
relevant provisions in the 2023 Employee Stock Ownership Plan (Revised) (《2023 年员工持股计划（修订
稿）》).
Changes in members of the management committees for employee stock ownership plans
□ Applicable Not applicable
Financial impact of employee stock ownership plans on the Company during the reporting period and the relevant
accounting treatments
Applicable □ Not applicable
78
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
According to relevant provisions under the Accounting Standards for Business Enterprises No. 11 - Share-based
Payments (《企业会计准则第 11 号——股份支付》), for equity-settled share-based payments in exchange for
employee services that are exercisable upon completion of the service within the vesting period or upon
achievement of prescribed performance conditions, the services acquired during the period should be charged to
the relevant cost or expense and capital reserve at each balance sheet date within the vesting period, based on the
best estimate of the number of exercisable equity instruments and at the fair value of the equity instruments at the
date of grant. The amortisation of expenses for the employee stock ownership plan implemented by the Company
in 2023 stood at RMB 10.9746 million and was charged to the relevant expense account and capital reserve.
Termination of employee stock ownership plans during the reporting period
□ Applicable Not applicable
Other information
None.
3. Other Employee Incentive Measures
□ Applicable Not applicable
XII. Establishment and Implementation of the Internal Control System during the Reporting
Period
1. Establishment and Implementation of the Internal Control System
(I) Control environment
The Company has set up a favorable governance structure and organization structure and relevant control systems.
It attaches great importance to the favorable corporate culture and has formed a relatively complete internal
control system in terms of business management, capital management, accounting information system
management, human resources and compensation management, information communication, and disclosure
management.
(1) Governance structure
According to the requirements of relevant laws, regulations, and the Articles of Association (《公司章程》), the
Company has set up the General Meeting of Shareholders, the Board of Directors, the Supervisory Committee
(hereinafter referred to as the "Three Meetings") and the Senior Management. Furthermore, it has specified their
rights and obligations in the Articles of Association and formulated the rules of procedure to ensure the explicit
division of labor and the fulfillment of their duties and responsibilities.
The General Meeting of Shareholders is the high authority of the Company, which enjoys the legal rights
stipulated by laws and regulations and the Articles of Association. It shall, strictly by the law, exercise its right to
vote for major events such as the management principle of the Company, fund-raising, investment, and profit
appropriation.
During the reporting period, the Company held "Three Meetings" on schedule according to the provisions of
relevant laws, regulations, and the Articles of Association. The documents for "Three Meetings" are complete and
filed. The decision-making process for major investment and financing has fulfilled the rules of procedure of the
Articles of Association and relevant rules. All the directors have attended the meetings with a diligent and
responsible attitude and practically fulfilled their obligations. The Supervisory Committee has played its role by
adopting certain ways of supervision. The Strategy Committee, the Audit Committee, the Remuneration and
Appraisal Committee and the Nomination Committee of the Board of Directors have driven the Board of
79
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Directors to make scientific and efficient decisions. Moreover, the resolutions of "Three Meetings" are well
implemented. The General Manager regularly organized and held manager meetings, conducted production and
business operations, instructed, coordinated, managed, and supervised the Company's functional departments and
holding subsidiaries, ensuring the normal business operation of the Company.
(2) Organizational structure
Based on the demand of principal business and management, the Company set up the President's Room,
Procurement Center, Haid College, Haid Research Institute, Marketing Center, Human Resource Center, Financial
Center, Operation and Development Center, Process and Information Management Center, Securities Department,
the President's Office, Party Working Committee Office, Project Management Office, Audit Center and other
functional departments. Each functional department has its specific division of labor. They fulfill their duties and
responsibilities while they mutually counterbalance and supervise. Based on the Company's business progress, the
Company continues to fully research and improve the core and key work tasks of each functional department so as
to improve the efficiency of the organization and refine the management and control mechanism.
(3) Development strategy
The Strategy Committee of the Board of Directors is responsible for the formulation of the Company's
development strategies to instruct the Company's long-term and robust development. The Strategy Committee
held meetings regularly or irregularly to deliberate major strategic plans for the Company's development and
adjust the Company's development objectives properly. The Company's business management team will formulate
corresponding objectives according to the strategic plans determined by the Strategy Committee and the divisions,
branches, and subsidiaries will formulate their development objectives accordingly.
(4) Corporate culture
The Company attaches great importance to the development of corporate culture. It fosters positive values and a
sense of social responsibility, advocates honesty, trustworthiness, dedication, and innovation, highlights customer
value, and focuses on employee growth and the spirit of teamwork. It adopts many approaches, such as regular
internal meetings, internal newspapers and publications, the Company's website, forum, the campaign of
rationalization proposal, and employee training, to penetrate the Company's values into the Company. In addition,
it has proactively arranged various themed activities to enhance employees' cohesion and team spirit, thus
promoting the development of corporate culture. Corporate culture has gradually become the value guidance for
the Company's operating and management activities.
(5) Procedures and systems
The Company formulates tailored systematic systems and procedures for the professional work of specialized
departments, implements them throughout the Company, and improves the Company's duplicating and controlling
capability of management. For instance, the Company has developed and continued to improve policies, such as
talent recruitment, talent development, talent promotion, appraisal, remuneration, and incentive. In terms of
internal control, it has set up and refined the capital plan management system, comprehensive budget management
system, accounts receivable management system, fixed asset management system, expense management system,
contract management system, future foreign exchange settlement management system, and internal audit system,
etc. The management systems are annually reviewed, discussed, and upgraded by the Company so as to make
them more adaptable to the Company's business and play the role in guiding and restraining the Company's
business.
(6) Internal supervision
Under the leadership of the Board of Directors and the Audit Committee, the Company sets up the Audit Center,
which is independent of other departments of the Company. The Audit Center conducts internal audits of the
internal control and financial situation of the Company and its holding subsidiaries through a combination of
continuous and special supervision and inspections. The internal audits can inspect and supervise the
establishment and implementation of the Company's internal control systems, the authenticity and integrity of
financial information, and the efficiency and effectiveness of operating activities.
80
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(7) Information communication
The Company has set up an information and communication system to clarify the procedures for collecting,
processing, and transmitting relevant information of internal control so as to ensure the timely communication of
such information, thus promoting the effective operation of internal control.
A. The unblocked information collection channels. Internal information can be accessed by the Company through
many channels, including financial and accounting data, operation management data, investigation reports, special
information, internal publications, EPS, ERP/SAP, and financial sharing system. In addition, the Company can
access external information through trade associations and organizations, social intermediary organizations,
customers and suppliers, market surveys, letters and visits, network media, and relevant regulatory authorities.
B. The timely information transmission procedures. The Company can communicate and feedback relevant
information on internal control among internal management hierarchies, responsible departments, business links,
internal and external investors, creditors, customers, suppliers, intermediary agencies, and regulatory authorities
promptly. In case of any problems identified from the course of information communication, the Company can
timely report and solve such problems. Important information can be reported timely to the Board of Directors,
the Supervisory Committee, and the Management.
C. The safe operation of information systems. The Company has set up control systems related to the development
and maintenance, access and change, data input and output, document storage, and cyber security of information
systems so as to ensure the safe and stable operation of such systems. The Company also monitors and reviews the
logistics and capital flow of branches and subsidiaries through the information system. All data of branches and
subsidiaries are dually duplicated. The Process and Information Management Center will cross-examine the data
of the Group, branches, and subsidiaries regularly and irregularly. In addition, the Financial Center has assigned
dedicated personnel to conduct random inspections for data of information systems of branches and subsidiaries in
real-time.
(8) Human resources management
In accordance with the provisions of the Labor Law (《劳动法》) and relevant laws and regulations, the
Company has established complete management systems in terms of the recruitment, allocation, compensation,
training, performance management, and promotion of human resources. The Company adheres to the people-
oriented principle and signs labor contracts with all employees. The employees' sense of belonging and sense of
mission has been enhanced through the implementation of the performance appraisal system, motivating their
enthusiasm for work. The stable growth of the Company's operating results and employees' income has been
achieved, laying a foundation for the Company's sustainable development.
(II) Risk assessment
(1) Risk identification and analysis
The Company has a strong sense of risk prevention. It attaches great importance to the identification of risks in
advance. It solicits extensive opinions of relevant parties on all major business decisions. Furthermore, the
Company conducts comprehensive assessments of operating, financial, industrial, and market risks through legal
assessment and contract review, and joint signature. It also develops corresponding risk management measures,
thus forming a relatively refined risk management mechanism.
Meanwhile, the Company continues to collect information related to risk change based on the market situation and
business expansion for risk identification and analysis so as to adjust risk response strategies in time.
(2) Risk control
The Company has developed relatively complete provisions of risk control management to carry out the pre-event
assessment, in-event supervision, and post-event appraisal for the determination of the Company's financial
structure, the arrangement of financing structure, the estimation of financing cost, and the repayment plan for
financing. Feasible research must be conducted for all kinds of investments and the approval authority is
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
determined according to the project size and the amount required. Contingency plans are formulated to cope with
any negative factors that might occur in the course of investment. The early warning system of financial risks and
management system of business contracts have been established to enhance the assessment and control over credit
risks and contract risks.
(III) Control activities
In order to reasonably guarantee the realization of all objectives, the Company has set up relevant control policies
and procedures, which mainly include: The approval control of transaction authorization, separate control of
incompatible duties, voucher and record control, property preservation control, independent inspection control,
electronic information system control, complete budgetary control, external guarantee control, information
disclosure control, and the monitoring of control.
(1) The approval control of transaction authorization
It has specified the scope, authority, procedures, responsibilities, and other relevant contents of the authorized
approval. All internal Management levels of the Company must exercise their functional authorities within their
authorized scope and the handling personnel must handle businesses with their authorities as well.
Based on the amount and nature of transactions, the Company has categorized the transaction authorization into
two levels, which are, general authorization and special authorization. In terms of general transactions, such as
purchase and sale and the reimbursement of routine expenses, the Company adopts the hierarchical approval
system involving the responsible accountant, department head, financial manager, and general manager so as to
ensure that all businesses are approved according to procedures. In terms of non-conventional transactions, such
as related party transactions, major acquisitions, significant capital expenditure, stock issuance, bond issuance,
and other major transactions, must be approved by the Board of Directors or the General Meeting of Shareholders.
The hierarchal authorization has been conducted for transactions in different natures, thus effectively controlling
risks.
(2) The separate control of incompatible duties
It has set up the system of assigning responsibility by position and internal check system and formulated the
position responsibilities of each constituent department and its personnel through the division of authorities and
responsibilities, thus avoiding mistakes and corrupt practices. Based on reasonable labor of division and scientific
division of responsibilities and authorities, the incompatible duties can be separated and each person can
automatically check the work of the other person or multiple persons, thus taking shape of the mechanism of
mutual check and balance. The incompatible duties mainly include: Authorized approval, business handling,
accounting record, property preservation, supervision, and inspections.
(3) Voucher and record control
The Company strictly reviews original vouchers and reasonably formulates the transfer procedures of vouchers.
Vouchers of transactions must be formulated and submitted to the accounting department for recording in time.
The registered vouchers must be filed orderly.
(4) Property preservation control
Unauthorized personnel is strictly restrained from direct access to properties. Measures, such as periodic inventory,
property record, reconciliation of book balance and actual amount, and property insurance, are adopted to ensure
the security and integrity of various properties.
(5) Independent inspection control
A dedicated internal audit institution has been set up. The responsibilities and authorities of the internal
supervision for the internal audit institution and other internal institutions have been clarified. Meanwhile, the
procedures, methods, and requirements of internal supervision and the scope and frequency of daily supervision
and special supervision have been specified. The nature and cause of deficiencies in internal control identified
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
from supervision can be analyzed in time. Furthermore, remediation plans can be put forward in time. Such
deficiencies and corresponding remediation plans can be promptly reported to the Board of Directors, the
Supervisory Committee, or the Management in proper form.
(6) Electronic information system control
The Company has developed stricter policies for electronic information system control. Greater efforts have been
made in terms of the development and maintenance of electronic information systems, data input and output, and
document storage.
(7) Complete budgetary control
The Company has carried out the complete budgetary management to strictly control the off-budget capital
expenditure. The financial sharing system and dedicated personnel will supervise, analyze, and appraise the
implementation of the budget. All divisions/branches and subsidiaries/business departments will formulate
budgetary plans annually, which will be regularly analyzed by the financial department so as to restrain such
budget.
(8) External guarantee control
The Company controls the external guarantee in accordance with the law-based, prudent, mutually beneficial, and
safe principle so as to strictly prevent risks caused by the guarantee. The Company has formulated relevant
management systems to reasonably ensure the authenticity and integrity of guarantee business and the legitimacy
and compliance of review procedures.
(9) Information disclosure control
The Company has developed the Information Disclosure System (《信息披露制度》), the Internal Reporting
System of Material Information (《重大信息内部报告制度》), and the Accountability Policy for Material Errors
in Information Disclosure of the Annual Report (《年报信息披露重大差错责任追究制度》). The systems have
specified the responsible person, principle, and main contents of information disclosure, the disclosure, working
procedure, management, and accountability mechanism of major events, and the measures to deal with employees
violating rules.
The Company has strictly fulfilled the information disclosure obligations according to relevant laws, regulations,
and rules to disclose information truthfully, accurately, completely, and timely, thus ensuring that all shareholders
have an equal opportunity to obtain information.
(10) The monitoring of control
The Company checks the implementation of internal control systems regularly and irregularly, which mainly
includes: The inspection of the Board of Directors of the Company, the inspection of the Audit Committee, and
the inspection of internal audit departments. All these inspections can ensure the effective operation of internal
control activities.
Through the inspection and supervision activities of internal control and the effective measures for the problems
identified from the inspection of regulatory authorities, the Company continues to supervise and inspect business
activities and the implementation of main internal control systems and continuously puts forward opinions and
suggestions on improvement. All these efforts have effectively prevented the risks of internal control and
safeguarded the normal operation of business management activities. It has played important roles in guiding and
driving the enhancement of standardized operation, refinement of corporate governance, and improvement of
management level.
2. Material Internal Control Deficiencies Identified for the Reporting Period
□ Yes No
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
XIII. The Company’s Management and Control of Subsidiaries during the Reporting Period
Soluti
on
Problems imple Subseque
Consolidati Solutions
Company name Consolidation plan arising in mentat nt
on progress taken
consolidation ion solutions
progre
ss
As per the applicable regulations of the
CSRC and the Shenzhen Stock
Exchange, as well as the Company’s
Articles of Association, the Company
Xishui ChenKe
provided compliance guidance for the
Feed
target company in organizational Completed N/A N/A N/A N/A
Technology
structure, personnel adjustment, internal
Co., Ltd.
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
As per the applicable regulations of the
CSRC and the Shenzhen Stock
Exchange, as well as the Company’s
Articles of Association, the Company
TuanFeng
provided compliance guidance for the
Source Feed
target company in organizational Completed N/A N/A N/A N/A
Technology
structure, personnel adjustment, internal
Co., Ltd.
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
As per the applicable regulations of the
CSRC and the Shenzhen Stock
Exchange, as well as the Company’s
Articles of Association, the Company
Huangshi
provided compliance guidance for the
ChenKe Feed
target company in organizational Completed N/A N/A N/A N/A
Technology
structure, personnel adjustment, internal
Co., Ltd.
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
As per the applicable regulations of the
CSRC and the Shenzhen Stock
Exchange, as well as the Company’s
Articles of Association, the Company
QiChun SiFang
provided compliance guidance for the
Feed
target company in organizational Completed N/A N/A N/A N/A
Technology
structure, personnel adjustment, internal
Company Ltd.
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
As per the applicable regulations of the
Taikun Feed
CSRC and the Shenzhen Stock
(Huangmei) Completed N/A N/A N/A N/A
Exchange, as well as the Company’s
Co., Ltd.
Articles of Association, the Company
84
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
provided compliance guidance for the
target company in organizational
structure, personnel adjustment, internal
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
As per the applicable regulations of the
CSRC and the Shenzhen Stock
Exchange, as well as the Company’s
Articles of Association, the Company
Taikun Feed provided compliance guidance for the
(Tuanfeng) Co., target company in organizational Completed N/A N/A N/A N/A
Ltd. structure, personnel adjustment, internal
controls, financial system, etc., and has
included the target company in the
Company’s system for unified
management.
XIV. Assessment Report or Independent Auditor’s Report on Internal Control
1. Internal Control Assessment Report
Disclosure date of internal control self-
23 April 2024
assessment report
Index to disclosed internal control self-
www.cninfo.com.cn
assessment report
Assessed entities’ combined assets as a
100.00%
percentage of consolidated total assets
Assessed entities’ combined operating
income as a percentage of consolidated 100.00%
operating income
Internal control deficiency identification standards
Type Financial-reporting related Non-financial-reporting related
A material deficiency refers to a deficiency Material deficiencies: (1) The internal
or a deficiency group that consists of control environment is invalid; (2) Any
multiple deficiencies that may cause a great leak of insider information about any
deviation from the control objective. It is investment in external parties, asset
considered a material financial-reporting restructuring, etc. against regulations
internal control deficiency if any of the causes any severe fluctuations in the
following cases occurs: (1) Any of the Company’s stock price or any materially
Company’s directors, supervisors or senior adverse impact on the Company’s image;
management is involved in a serious fraud; (3) The violation of the Company’s
(2) The Company corrects its disclosed decision-making procedure in any
financial statements for multiple times; (3) significant event causes a significant
certified public accountants identifies a economic loss to the Company; or (4)
material misstatement in the current financial The independent auditor identifies any
Nature standard
statements which the Company has failed to other material deficiencies in the
identify during its internal control process; Company.
or (4) The Company’s Audit Committee and Serious deficiencies: (1) The Company
internal audit organ maintain invalid provides any guarantee or conducts any
supervision over internal control. derivative financial instrument
A serious deficiency refers to a single transaction without due authorization or
deficiency or a deficiency group including performance of the corresponding
other deficiencies that is less serious than a information disclosure duty; (2) A severe
material deficiency but may still cause a loss of key talent occurs; (3) The
deviation from the control objective. It is Company is punished or a materially
considered a serious financial-reporting adverse impact is made to its image due
internal control deficiency if any of the to deviation from governing policies,
following cases occurs: (1) The Company measurement errors, etc.; (4) The
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
does not select and adopt its accounting independent auditor identifies any other
policies as per the generally accepted serious deficiencies in the Company.
accounting standards; (2) The Company does An ordinary deficiency refers to any
not formulate anti-fraud procedures or deficiency that is neither a material
control measures; (3) The Company has no deficiency nor a serious deficiency.
control systems for the accounting treatment
of non-conventional or special transactions;
or (4) There are one or multiple deficiencies
in controls over the financial reporting
process and there is no reasonable assurance
that the financial statements prepared are
truthful and accurate.
An ordinary deficiency refers to any
deficiency that is neither a material
deficiency nor a serious deficiency.
Material deficiency: Direct loss caused to
Material deficiency: misstated amount > 3%
the Company (hereinafter referred to as
of profit before income tax, misstated
“loss amount”) > 3% of profit before
amount ＞3% of net asset value.
income tax, loss amount ＞ 3% of net
Serious deficiency: 1% of profit before asset value.
income tax ＜ misstated amount ≤ 3% of Serious deficiency: 1% of profit before
Quantitative standard profit before income tax, 1% of net asset
income tax＜loss amount≤3% of profit
value < misstated amount ≤ 3% of net asset before income tax, 1% of net asset value
value.
< loss amount ≤ 3% of net asset value.
Ordinary deficiency: misstated amount ≤
Ordinary deficiency: loss amount ≤1%
1% of profit before income tax, misstated
of profit before income tax, loss amount
amount ≤1% of net asset value.
≤1% of net asset value.
Number of material financial-reporting
0
internal control deficiencies
Number of material non-financial-
0
reporting internal control deficiencies
Number of serious financial-reporting
0
internal control deficiencies
Number of serious non-financial-reporting
0
internal control deficiencies
2. Independent Auditor’s Report on Internal Control
Applicable □ Not applicable
Opinion paragraph
The Company maintained, in all material respects, effective internal control over financial reporting as of 31 December 2023,
based on the Basic Rules on Enterprise Internal Control (《企业内部控制基本规范》) and other applicable regulations.
Report disclosed or not Disclosed
Disclosure date 23 April 2024
Index to the disclosed report http://www.cninfo.com.cn
Type of opinion Unmodified unqualified opinion
Material defects in internal control not related to financial
No
reporting
Indicate whether any modified opinion is expressed in the Independent Auditor’s Report on Internal Control
□ Yes No
Indicate whether the Independent Auditor’s Report on Internal Control is consistent with the internal control self-
assessment report issued by the Company’s Board of Directors
Yes □ No
86
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
XV. Remediation of Problems Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
Not applicable.
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Section V. Environmental and Social Responsibility
I. Material Environmental Issues
Whether the Company and its subsidiaries are key pollutant discharging units as published by the environmental
protection authority
Yes □ No
Policies and industry standards on environmental protection
The Company has been in strict compliance with the applicable laws, regulations, policies and industry standards,
including the Law of the People's Republic of China on Environmental Protection (《中华人民共和国环境保护
法》), the Law of the People's Republic of China on Prevention and Control of Water Pollution (《中华人民共和
国水污染防治法》), the Law of the People's Republic of China on Prevention and Control of Air Pollution (《中
华人民共和国大气污染防治法》), the Law of the People's Republic of China on Prevention and Control of
Noise Pollution (《中华人民共和国噪声污染防治法》), the Law of the People's Republic of China on
Prevention and Control of Environmental Pollution by Solid Waste (《中华人民共和国固体废物污染环境防治
法》), the Emission Standard of Air Pollutants for Boilers (《锅炉大气污染物排放标准》), the Integrated
Emission Standard of Air Pollutants ( 《大 气污染 物综 合排放 标准》 ), the Emission Standards for Odor
Pollutants (《恶臭污染物排放标准》), the Standard for Fugitive Emission of Volatile Organic Compounds (挥
发性有机物无组织排放控制标准》), and the Discharge Standard of Water Pollutants for Meat Packing Industry
(《肉类加工工业水污染物排放标准》).
Administrative licenses of environmental protection
The Company and its subsidiaries prepared environmental impact reports before project implementation and
submitted to the environmental authority for review and approval in accordance with the requirements of
environmental laws and regulations. They commenced project construction after obtaining the approval and
carried out construction works strictly in accordance with the requirements of environmental impact assessment.
Furthermore, they went through the procedures for the acceptance of project completion for environmental impact
assessment in accordance with laws and obtained the pollutant discharge permit.
Industry discharge standards and discharge of pollutants in production and operation
Names of
Types of
major The
Name of major The
pollutant number Distributio
the pollutants concentrat Pollutant Total
s and Discharge of n of Total Excess
company and ion/intensi discharge discharge
character method dischar discharge discharge discharge
or characteris ty of the standards approved
istic ge outlets
subsidiary tic discharge
pollutant outlets
pollutants
s
Waste gas Particulate Emission
from boilers matter: Standard
Boiler
discharged 30mg/m of Air
chimney;
after being SO2: Pollutants
Waste gas
treated with a 264mg/m for Boilers Ammonia Ammonia
treatment
Waste bagged pulse ; (《锅炉大 nitrogen: nitrogen:
plant
gas: dust collector, NOx: 气污染物 0.06t/a; 0.1t/a;
Fujian outlet in
particulat and production 288mg/m SO2: 46.3 SO2:
Haisheng Waste Workshop 排放标
Waste gas e matter, waste gas ; t/a; 135.6 t/a; None
Feed Co.,
SO2, discharged
gas: 3 1; Waste
Mercury 准》) Soot: 18.1 Soot:
Ltd. gas (GB13271
NOx, after reaching and its t/a; 21.12 t/a;
treatment -2014);
flue gas the relevant compound NOx: 26.4 NOx:
plant Emission
standard s: 0.05 t/a; 36.92 t/a;
outlet in Limits of
through two mg/m
Workshop Air
odour Flue gas
3 Pollutants
treatment blackness:
systems (acid 1 (《大气污
88
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
+ alkali spray 染物排放
scrubbing + 值》)
ozone (GB14554
reaction) —1993)
Emission
Standard
Waste gas: of Air
boiler waste Pollutants
gas discharged for Boilers
after low- of
nitrogen Shandong
combustion Province
treatment; (《山东省
Waste gas:
canteen fume 锅炉大气
boiler
Waste
discharged
chimney; 污染物排
after treatment 放标准》)
gas: canteen
with an oil (DB37/23
hydrogen chimney; Nitrogen
purification 74-2018);
sulphide; 2 waste oxide:
device; Integrated
ozone; gas outlets 18mg/m
workshop and Emission
ammonia in the Particulate COD: COD:
sewage Standard
; cooking workshop; matter: 2.74t/a; 50.495t/a;
treatment Waste of Air
Jiaxiang fume 1 waste 1.4mg/m Ammonia Ammonia
Waste gas; waste gas gas: 5; Pollutants
Haiying Waste gas outlet Flue gas nitrogen: nitrogen:
Waste discharged Waste (《大气污 None
Food Co., water: of the blackness: 0.596t/a; 4.385t/a;
water after treatment water:
Ltd. COD; waste <1 ; 染物综合 Total Total
with an 1
ammonia
activated
water Suspended 排放标 nitrogen: nitrogen:
nitrogen; treatment matter: 准》) (GB 3.82t/a 56.7t/a
carbon waste
total system 4mg/L; 16297-
gas treatment
nitrogen; Waste BOD: 1996);
facility
total water: 5.2mg/L Discharge
Waste water:
phosphor general Standard
discharged into
us. waste of Water
the municipal
water Pollutants
network upon
outlet for Meat
meeting the
standard Packing
through Industry
treatment with (《肉类加
a waste water 工工业水
treatment 污染排放
system 标准》)
(GB13457
-92)
Emission
Standard
of Air
Pollutants
for Boilers
of
Shandong
Waste gas: Particulate Province
outlet of matter: (《山东省
Waste
Waste gas: the 20mg/m 锅炉大气
gas:
particulat
discharged workshop SO2: 污染物排
after spraying waste gas 35mg/m 放标准》)
e matter;
+ secondary treatment NOx: (DB37/23
SO2; COD: COD:
activated equipment 150mg/m 74-2018);
NOx; 73.62t/a; 73.62t/a;
carbon ; boiler ; Emission
flue gas Ammonia Ammonia
adsorption chimney; Flue gas Standards
blacknes Waste nitrogen: nitrogen:
Yiyuan Waste water: outlet of blackness: for Odor
Waste gas; s. gas: 3; 7.98t/a; 7.98t/a;
Haiying discharged to waste gas 1; Pollutants
Waste Waste Waste SO2: SO2: None
Food Co., the municipal equipment COD: (《恶臭污
water water: water: 0.4096t/a; 0.4096t/a;
Ltd. waste water of the 500mg/L;
COD; 1 染物排放 NOx: NOx:
plant after waste Ammonia
total
meeting the water nitrogen: 标准》) 0.538t/a; 0.538t/a;
phosphor (GB Soot: Soot:
discharge plant 45mg/L;
us; 14554- 0.1248t/a 0.1248t/a
standard Waste Total
ammonia 93);
through water: phosphoru
nitrogen; Discharge
secondary outlet of s: 8mg/L;
total Standard
treatment the waste Total
nitrogen. of Water
water nitrogen:
plant 70mg/L Pollutants
for Meat
Packing
Industry
(《肉类加
工工业水
污染物排
放标准》)
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(GB
13457-
92);
Wastewate
r Quality
Standards
for
Discharge
to
Municipal
Sewers
(《污水排
入城镇下
水道水质
标准》)
(GB/T
31962-
2015)
Discharge
Limits of
Water
Pollutants
of
Maoming
Waste City (《茂 COD:
名市水污 COD:
water: 3.14t/a;
染物排放 3.14t/a ;
BOD; Waste Solid
COD: Suspended
COD; water: 限值》) suspended
Waste water is 87mg/L; matter:
ammonia waste (DB44/56- matter:
treated by Ammonia 1.82t/a ;
Gaozhou nitrogen; water 2003); 1.82t/a;
solid-liquid nitrogen: Ammonia
Sanhe total Waste treatment Pollutant Ammonia
Waste separation and 9.04mg/L; nitrogen:
Animal phosphor water: outlet of Discharge nitrogen: None
water the energy Suspended 0.2t/a;
Husbandry us; 1 the Standards 0.2t/a;
eco-model matter: Total
Co., Ltd. suspende environme for Total
before 54mg/L; nitrogen:
d matter; ntal Livestock nitrogen:
discharge pH: 2.52t/a ;
animal protection and 2.52t/a;
6.29~6.35 Total
and station Poultry Total
phosphoru
vegetable Farming phosphoru
s: 0.11t/a
oils. Industry s: 0.11t/a
(《畜禽养
殖业污染
物排放标
准》)
(GB18596
-2001);
Waste Waste water: Particulate Emission
gas: The domestic matter: Standards
SO2; waste water is 2.6mg/m for Odor
NOx; treated by SO2: Pollutants
CO; septic tank and 2mg/m (《恶臭污
particulat mixed with the CO: 染物排放
e matter; production 2mg/m 标准》)
flue gas waste water NOx: (GB
blacknes into the waste 28mg/m 14554-
s; odor; water flue gas 93);
ammonia treatment blackness Emission
Boiler
gas; station, and ＜Grade Standard
chimney;
hydrogen then enters the 1; of Air
canteen COD: COD:
sulphide; municipal BOD: Pollutants
chimney; 2.1t/a; 2.1t/a;
Waste sewage 23.8mg/L; for Boilers
Sichuan Waste outlets of Ammonia Ammonia
water: pipeline Ammonia for
Hailinger Waste gas; gas: 9; the animal nitrogen: nitrogen:
COD; through the nitrogen: Chengdu
Biopharm Waste Waste room; 0.26t/a; 0.26t/a; None
ammonia industrial 5.63; (《成都市
aceutical water water: general SO2: SO2:
nitrogen; park’s sewage pH: 7.5-
Co., Ltd. 2 outlet of 锅炉大气 0.035t/a; 0.035t/a;
pH; total pipeline after 7.6;
nitrogen; being treated
sewage 污染物排 NOx: NOx:
COD:
treatment 放标准》) 2.16t/a 2.16t/a
total up to the 63mg/L;
of the (DB51/26
phosphor standard. suspended
plant 72-2020);
us; Waste gas: The matter:
chromati waste gas 4mg/L; Standard
city; generated from formaldeh for
suspende the waste yde: Fugitive
d matter; water station is 0.09mg/L; Emission
animal treated by Total of Volatile
and washing tower phosphoru Organic
vegetable and activated s: 0.36; Compoun
oils; carbon Total ds (《挥
formalde adsorption nitrogen: 发性有机
hyde; tower, and 8.77mg/L; 物无组织
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
acetonitri finally 排放控制
le; total discharged at 标准》)
residual high altitude (GB
chlorine through the 37822-
(as Cl); exhaust pipe; 2019);
total the exhaust of Discharge
organic air Standards
carbon; conditioning of Water
acute system of the Pollutants
toxicity; animal room is for
faecal discharged Pharmace
coliform through the utical
count/(M exhaust pipe Industry-
PN/L); after being Bio-
volatile treated by pharmaceu
phenols) “Grade 1 high- tical
efficiency Category
filter+activated (《生物工
carbon
程类制药
adsorption”;
the boiler 工业水污
exhaust is 染物排放
discharged at 标准》)
high altitude (GB
by adopting 21907-
the low- 2008)
nitrogen
combustion
device.
Emission
Standards
for Odor
Pollutants
(《恶臭污
染物排放
标准》)
(GB
14554-
93);
Discharge
Waste gas: Standard
boiler waste of Water
gas is Pollutants
discharged for Meat
Particulate
directly Packing
matter:
through the Industry
20mg/m
exhaust pipe (《肉类加
Waste SO2:
after low- Waste gas: 工工业水
gas: 35mg/m
nitrogen 2
ammonia NOx: 污染物排
burner; workshop
gas,
production waste gas
150mg/m 放标准》) SO2: SO2:
particulat ; (GB
odour is outlets, 1 0.288t/a; 0.288t/a;
e matter, BOD: 13457-
discharged Waste boiler NOx: NOx:
Linxi SO2, 40mg/L; 92);
Waste gas; after alkali gas: 4; chimney, 1 1.464t/a; 1.464t/a;
Haiying NOx, COD: Emission
Waste washing and Waste sewage COD: COD: None
Food Co., odor 100mg/L; Standard
water two times of water: plant 36.24t/a; 36.24t/a;
Ltd. concentr Ammonia for
activated 1 chimney Ammonia Ammonia
ation; nitrogen: Industrial
carbon Waste nitrogen: nitrogen:
Waste 20mg/L; Enterprise
adsorption water: 1 7.248t/a 7.248t/a
water, pH: 6- s Noise
Waste water: waste
COD, 8.5mg/L; Boundary
treated by self- water
ammonia Animal (《工业企
built sewage outlet
nitrogen and 业厂界环
treatment
vegetable
station before 境噪声排
oils:
entering the 放标准》)
20mg/L
town sewage (GB12348
plant for -2008);
further Standard
treatment for
Pollution
Control on
the
Storage
and
Disposal
Site for
General
Industrial
Solid
Wastes
91
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(《一般工
业固体废
物贮存,
处理场污
染控制标
准》)
(GB18599
-2001)
Treatments of pollutants
During the reporting period, all key pollutant discharging subsidiaries of the Company have been equipped with
pollution control facilities, which are maintained regularly to ensure their effective operation. Specifically: (1)
waste gas: It is discharged after being reduced the concentration and content of particulate matter, soot, SO2, NOx,
ammonia, hydrogen sulfide, and odour through processes including limestone desulphurisation, SNCR
denitrification, bag de-dusting, deodorant spraying, activated carbon, or deodorization of spray tower; (2) sewage
(waste water): It is discharged after being treated to reach the standard through solid-liquid separation, A/O
process, AAO process or other processes; (3) solid wastes: Relevant facilities and equipment are equipped to
realize harmless and resource-based treatment.
Self-monitoring program for environment
The aforesaid subsidiaries have formulated environmental self-monitoring plans in accordance with the
requirements of local environmental protection authorities and contacted qualified monitoring units to conduct
self-monitoring on a regular basis. Besides, they disclosed relevant information or filed with local environmental
protection authorities as required. The monitoring programmes were all in line with the requirements of the
environmental impact assessment and emission standards.
Emergency plan for emergent environmental incidents
During the Reporting Period, in order to implement the Emergency Response Law of the People's Republic of
China (《中华人民共和国突发事件应对法》), other relevant laws, regulations and documents, and to prevent,
prepare for and respond to environmental emergencies, as well as to protect the lives and reduce property losses,
all branches and subsidiaries have formulated contingency plans for environmental protection in accordance with
the requirements of local environmental protection authorities and have carried out drills under the contingency
plans. Meanwhile, in accordance with the requirements in the Management Measures of Haid Group for Safety
and Environmental Protection Emergency Preparation and Response (《海大集团安全环保应急准备和响应管
理办法》), the above-mentioned subsidiaries have established a top-down organizational structure for emergency
response and allocated personnel and resources, in addition to the formulation of a contingency plan for pollution
incidents, to enhance the response to risks and events of different degrees, and strengthen the collaboration
between various departments.
Spending on environmental protection and payment of environmental protection tax
During the reporting period, the Company spent nearly RMB 30 million in environmental management and
protection and paid environmental protection tax in full in accordance with the law.
Measures taken to reduce carbon emissions during the reporting period and the results
Applicable □ Not applicable
The Company has proactively explored energy conservation technologies and processes to reduce energy
consumption and the relevant emissions leading to climate change. Meanwhile, in recent years, the Company has
continued to push forward the energy transformation plans. Clean energies have been utilized in operating sites to
reduce the dependence on conventional fossil fuels. For current projects, the Company has widely carried out the
phaseout program of coal-fired boilers; the Company monitors and manages the use of gas and electricity,
arranges production in a rational manner, and ensures timely maintenance to reduce the waste of energy; and the
fermented biogas from farm manure is reused as fuel. For newly-built projects, the Company has allocated natural
92
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
gas boilers, biomass boilers, or other environmental protection equipment during the construction phase of these
projects. And photovoltaic power generation equipments have been installed as a pilot program to increase the use
of clean energy.
Administrative penalties imposed for environmental issues during the reporting period
Name of the
Impact on the
company or Reason for penalty Regulation violated Penalty Remediation measures
Company
subsidiary
It violated the
provisions of Article 72 A large amount of Pay fines in full and on
of the Law of the sand and soil is It was time, take effective covering
People's Republic of piled up in the instructed to measures, and strengthen
China on the No
Linxi Haiying open on the site correct the personnel education,
Prevention and Control significantly
Food Co., Ltd. without limited unlawful act training and supervision;
of Atmospheric adverse impact
covering measures and fined RMB conduct occasional
Pollution (《中华人民 to prevent dust 50,000 monitoring and inspection
共和国大气污染防治 pollution. of dust
法》)
Other environmental information that should be disclosed
None
Other information on environmental protection
None
II. Fulfillment of Social Responsibility
Please refer to the “Haid Group: Social Responsibility Report 2023” (《海大集团：2023年度社会责任报告》)
disclosed by the Company on the media designated for information disclosure.
III. Efforts in Poverty Alleviation and Rural Revitalization
As a responsible privately-held company that is rooted in agriculture, rural areas, and farmers and serves
agriculture and animal husbandry, the Company has always adhered to the purpose of “prospering agriculture with
science and technology, and facilitating agricultural development with industrial support”, and is playing an active
role in rural revitalization. The Company gives full play to the resource advantages across its industrial chain,
aims at the three major goals of the modernization of agriculture, the professionalization of farmers and the
popularization of agricultural technology, and contributes to rural revitalization with its technologies as a leading
feed producer.
For more than 20 years, Haid people have been dedicating themselves to agricultural technology popularization,
shuttling through the ponds and pens in the countryside. Leveraging the advantages of a complete industrial chain
covering seedlings, feed, biopharmaceuticals, animal farming, etc., as well as the strong R&D and innovation
capabilities, Haid Group uses advanced farming concepts, technologies and products to effectively help millions
of farmers in a scientific way and increase their income. Through providing agricultural science and technology
services for the "last mile", as well as promoting the industrialization of agriculture, the professionalization of
farmers and the popularization of agricultural technology, Haid plays its part for rural revitalization.
For further information, please refer to the “Haid Group: Social Responsibility Report 2023” (《海大集团：2023
年度社会责任报告》) disclosed by the Company on the media designated for information disclosure.
93
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Section VI. Material Matters
I. Performance of Undertakings
1. Undertakings made by parties involved in undertakings including the Company’s actual controller,
shareholders, related parties, acquirers and the Company during the reporting period or prior periods but
subsisting to the end of the reporting period
Applicable □ Not applicable
Term Complian
Types of Underta
Party involved of ce with
Undertaking undertakin Details of undertaking king
in undertaking undert undertakin
g date
aking g
1. Mr. Hua Xue guarantees no prejudice to the
interests of Haid Group and its other shareholders
by virtue of his capacity as the actual controller. 2.
Undertaki
Mr. Hua Xue guarantees that, as long as he serves
ng on
as the actual controller of Haid Group, he and his
horizontal
wholly-owned subsidiaries, controlled subsidiaries
competitio
and actually controlled companies (except Haid
n, related 27 In strict
Group) will not engage in business activities that, Long
Hua Xue party Novemb complianc
directly or indirectly, compete with or constitute term
transactio er 2009 e
competitive threat to the principal businesses or
n and
major products of Haid Group in any form,
capital
including investment, acquisition or merger of
occupatio
companies, enterprises or other economic
n
organizations the principal businesses or major
Undertaking
products of which are the same with or similar to
made on
those of Haid Group.
initial public
1. It guarantees no prejudice to the interests of Haid
offering or
Group and other shareholders of Haid Group by
refinancing
virtue of its capacity as the controlling controller. 2.
Undertaki
Guangzhou Haihao guarantees that, as long as it is
ng on
the controlling shareholder of Haid Group, it and its
horizontal
wholly-owned subsidiaries, controlled subsidiaries
competitio
Guangzhou (except Haid Group) and actually controlled
n, related 27 In strict
Haihao companies will not engage in business activities Long
party Novemb complianc
Investment that, directly or indirectly, compete with or term
transactio er 2009 e
Co., Ltd. constitute competitive threat to the principal
n and
businesses or major products of Haid Group in any
capital
form, including investment, acquisition or merger
occupatio
of companies, enterprises or other economic
n
organizations the principal businesses or major
products of which are the same with or similar to
those of Haid Group.
The Company guarantees no provision of loans, From
loan guarantees, or financial assistance in other 20
Undertakings forms to the awardees for acquisition of relevant
Guangdong Other May In strict
related to interests under the 2021 Share Option Incentive 20 May
Haid Group undertakin 2021 complianc
equity Plan of Guangdong Haid Group Co., Limited (《广 2021
Co., Limited gs to 27 e
incentives
东海大集团股份有限公司 2021 年股票期权激励 June
计划》). 2027
The following conditions must be met when the From
Undertakings
Company implements cash dividends: 9
made to
Guangdong Dividend (1) The Company achieves a profit for the year or May In strict
minority 9 May
Haid Group undertakin half-year and the accumulated distributable profit 2022 complianc
shareholders 2022
Co., Limited g (i.e. the after-tax profit after making up for losses to 8 e
of the
and setting aside reserve) is positive, the cash flow May
Company
is sufficient, and the implementation of the cash 2025
94
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
dividend will not affect the Company’s going-
concern ability;
(2) The auditor issues a report with an unmodified
unqualified audit opinion on the Company's
financial statements for the year (if the Company
implements an interim dividend, the auditor shall
have issued a report with an unmodified
unqualified audit opinion on the Company's
financial statements for the prior year);
(3) The Company has no significant external
investment plan or significant cash expenditure
within the next 12 months (except for fund-raising
projects). A significant investment plan or
significant cash expenditure means that the
cumulative expenditure on the Company's intended
external investment, acquisition of assets or
purchase of equipment within the next 12 months
reaches or exceeds 30% of the Company's latest
audited equity; and
(4) There are no other circumstances that the Board
of Directors considers inappropriate for cash
dividends.
Hua Xue,
Yingzhuo Xu,
Qi Cheng,
Jianfang Gui,
Jianguo He,
Yunguo Liu,
Dong Shen,
Other
Hua Wang,
undertakin
Yongfang Mu,
gs made
Guoxiang Liu, In compliance with the laws and regulations 27 In strict
to Long
Xueqiao Qian, governing shareholding reductions by directors, Novemb complianc
minority term
Shaolin Yang, supervisors and senior management er 2009 e
sharehold
Xiewu Jiang,
ers of the
Guocheng Mi,
Company
Zhongzhu
Chen,
Mingzhong
Chen, Jiantao
Yang, Jing
Wang, and
Zhijian Huang
From
Other Other
27
undertakings undertakin
Nove
gs made
27 mber
to
Li Tian Undertaking on reduction of shareholding Novemb 2009 Expired
minority
er 2009 to 16
sharehold
Janua
ers of the
ry
Company
2023
From
Other
21
undertakin
Augu
gs made
21 st
to
Jia Chen Undertaking on reduction of shareholding August 2013 Expired
minority
2013 to 16
sharehold
Janua
ers of the
ry
Company
2023
Other From
undertakin 27
27 In strict
gs made Nove
Zhenxiong Qi Undertaking on reduction of shareholding Novemb complianc
to mber
er 2009 e
minority 2009
sharehold to 8
95
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
ers of the Febru
Company ary
2026
Whether
undertakings
Yes
performed on
time
Specific
reasons why
undertakings
were not N/A
performed on
time and next
steps
2. Description on the Company’s assets and items in meeting original profit forecast and its
explanation as there is profit forecast for assets and items of the Company and the reporting
period is still within the profit forecast period
□ Applicable Not applicable
II. Appropriation of Funds of the Company by the Controlling Shareholder and Its Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
There was no appropriation of funds of the Company by the controlling shareholder and its related parties for non-
operating purposes during the reporting period.
III. External Guarantees against the Rules and Regulations
□ Applicable Not applicable
There was no external guarantee provided by the Company which was against the rules and regulations during the
reporting period.
IV. Opinions of the Board Regarding the Latest "Modified Audit Report"
□ Applicable Not applicable
V. Opinions of the Board, the Supervisory Committee and Independent Directors (If Any)
Regarding the "Modified Audit Report" for the Reporting Period Issued by the Accountants
□ Applicable Not applicable
VI. Reason for Changes in Accounting Policies and Accounting Estimates as well as
Correction of Major Accounting Errors as Compared to the Financial Report for the Prior
Year
Applicable □ Not applicable
For the changes in accounting policies and accounting estimates as compared to the financial report for the prior
year, please refer to Note V, 38 in Section X. “Financial Statements”.
96
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Report for the Prior Year
Applicable □ Not applicable
During the year, the scope of consolidation included 557 subsidiaries, increasing by 52 and reducing by 23 as
compared with the last year. For details, please refer to the Note "VII. Interests in Other Entities" in Section X
“Financial Statements".
VIII. Engagement or Dismissal of Accounting Firm
Current accounting firm engaged
Name of the domestic accounting firm Grant Thornton China (Special General Partnership)
Remuneration of the domestic accounting firm (RMB’0,000) 480
Continued term of service of the domestic accounting firm 5 years
Name of certified public accountants of the domestic
Wenyuan Guan, Shuntong Qiu
accounting firm
Continued term of service of certified public accountants of the Wenyuan Guan: 5 years
domestic accounting firm Shuntong Qiu: 1 year
Name of the overseas accounting firm (if any) N/A
Remuneration of the overseas accounting firm (RMB’0,000)
0
(if any)
Continued term of service of the overseas accounting firm (if
N/A
any)
Name of certified public accountants of the overseas
N/A
accounting firm (if any)
Continued term of service of certified public accountants of the
N/A
overseas accounting firm (if any)
Whether to appoint another accounting firm during the current period
□ Yes No
Particulars on recruitment of accounting firms, financial consultants or sponsors for internal control and auditing
purposes
Applicable □ Not applicable
During the reporting period, the Company engaged Grant Thornton China (Special General Partnership) as the
internal control auditor and paid a total of RMB 1.2 million for the internal control audit.
IX. Delisting Upon Publication of Annual Report
□ Applicable Not applicable
X. Matters Related to Bankruptcy and Reorganisation
□ Applicable Not applicable
There was no matter related to bankruptcy and reorganisation during the reporting period.
XI. Material Litigation and Arbitration
□ Applicable Not applicable
During the reporting period, the Company was not involved in any material litigation and arbitration.
97
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
XII. Punishment and Rectification
□ Applicable Not applicable
There was no punishment and rectification of the Company during the reporting period.
XIII. Credibility of the Company, Its Controlling Shareholder and Actual Controller
□ Applicable Not applicable
98
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
XIV. Significant Related Party Transactions
1. Related party transactions associated with day-to-day operation
Applicable □ Not applicable
Subject Pricing Percentag Amount Market
Types of Amount of Settlement
matter of basis Price of e of Whether price
Related the related of
the of the related as the transactio exceedi of Disclo
Related party related party related
related related party amount ns ng availabl sure Disclosure index
party relationshi party transactions party
party party transactio of similar approved approve e similar date
p transaction (RMB’0,00 transactio
transaction transactio ns transactio (RMB’0, d cap transacti
s 0) ns
s ns ns 000) on
The price
of each
transactio
Announcement on
n shall be
Foshan determine Day-to-day
Haihang d by both Related Party
Xingfa parties On normal Transactions in
Agriculture through commerci 2023 (《关于
and Animal Sales of negotiatio al terms or 2023 年日常关联
Sales of 25
Husbandry commoditi n based on in
feed and Market 交易的公告》)
Developme Associate es to the the 8,798.41 0.08% 8,000 Yes accordanc N/A April
other price (Announcement
nt Co., Ltd. related uniform e with 2023
products No. 2023-032)
and its party market relevant
branch price as agreement published on 25
companies quoted s April 2023 on the
and externally media designated
subsidiaries by the
for information
seller at
the time of disclosure
transactio
n.
Foshan Purchase of The price On normal Announcement on
Haihang agricultural Purchase of each commerci Day-to-day
Xingfa transactio al terms or 25
products of Market Related Party
Agriculture Associate n shall be 40.57 0.00% 0 Yes in N/A April
from the agricultura price Transactions in
and Animal determine accordanc 2023
Husbandry related l products d by both e with 2023 (《关于
Developme party parties relevant 2023 年日常关联
99
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
nt Co., Ltd. through agreement 交易的公告》)
and its negotiatio s (Announcement
branch n based on
No. 2023-032)
companies the
and uniform published on 25
subsidiaries market April 2023 on the
price as media designated
quoted for information
externally disclosure
by the
seller at
the time of
transactio
n.
The price
of each
transactio
Announcement on
n shall be
determine Day-to-day
d by both Related Party
Purchase of parties On normal Transactions in
raw through commerci 2023 (《关于
Purchase
Wujiaqu materials negotiatio al terms or 2023 年日常关联
of raw 25
Tycoon from or n based on in
materials Market 交易的公告》)
Plant Associate rendering the 21,433.45 0.20% 21,000 Yes accordanc N/A April
or price (Announcement
Protein Co., of services uniform e with 2023
rendering No. 2023-032)
Ltd. to the market relevant
of services
related price as agreement published on 25
party quoted s April 2023 on the
externally media designated
by the
for information
seller at
the time of disclosure
transactio
n.
The price
Purchase of On normal Announcement on
of each
raw commerci Day-to-day
Purchase transactio
Alaer materials al terms or Related Party
of raw n shall be 25
Ruiliheng from or in
materials Market determine Transactions in
Biological Associate rendering 23,708.03 0.22% 22,000 Yes accordanc N/A April
or price d by both 2023 (《关于
Protein Co., of services e with 2023
rendering parties 2023 年日常关联
Ltd. to the relevant
of services through
related agreement 交易的公告》)
negotiatio
party s (Announcement
n based on
100
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
the No. 2023-032)
uniform published on 25
market
April 2023 on the
price as
quoted media designated
externally for information
by the disclosure
seller at
the time of
transactio
n.
The price
of each
transactio
Announcement on
n shall be
determine Day-to-day
d by both Related Party
Vietnam parties On normal Transactions in
Haid through commerci 2023 (《关于
Yingtaogu Sales of negotiatio al terms or 2023 年日常关联
Sales of 25
Farm Co., commoditi n based on in
feed and Market 交易的公告》)
Ltd. and its Associate es to the the 8,086.9 0.07% 9,000 No accordanc N/A April
other price (Announcement
branch related uniform e with 2023
products No. 2023-032)
companies party market relevant
and price as agreement published on 25
subsidiaries quoted s April 2023 on the
externally media designated
by the
for information
seller at
the time of disclosure
transactio
n.
The price Announcement on
of each Day-to-day
Vietnam transactio On normal
Haid n shall be commerci Related Party
Purchase of Transactions in
Yingtaogu determine al terms or
raw 25 2023 (《关于
Farm Co., Purchase d by both in
materials Market
Ltd. and its Associate of raw parties 707.41 0.01% 700 Yes accordanc N/A April 2023 年日常关联
from the price
branch materials through e with 2023 交易的公告》)
related
companies negotiatio relevant (Announcement
party
and n based on agreement
No. 2023-032)
subsidiaries the s
uniform published on 25
market April 2023 on the
101
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
price as media designated
quoted for information
externally
disclosure
by the
seller at
the time of
transactio
n.
Total -- -- 62,774.77 -- 60,700 -- -- -- -- --
Particulars on refund of bulk sale N/A
Actual performance of day-to-day transactions to be
conducted in the period for which the total transaction
N/A
amount is estimated by categories during the reporting
period (if any)
Reasons for large differences between transaction
N/A
prices and market reference prices (if applicable)
2. Related party transactions in connection with purchase or sale of assets or equity interest
Applicable □ Not applicable
Carrying Gain or
Valuation Settlement
value of loss on
Subject Pricing basis of the Transfer of
Types of the the the
Related Related party matter of the of the related transferre price related Disclosu
related party transferred transacti Disclosure index
party relationship related party party d assets (RMB’0,0 party re date
transactions assets on
transactions transactions (RMB’0,0 00) transactio
(RMB’0,0 ns (RMB’0
00)
00) ,000)
Guangz Guangzhou Juchang Acquisition of Announcement
hou Investment Co., Ltd., a a 49% interest on the
Hengjuc majority-owned subsidiary of in Guangdong Determined Acquisition of
hang the Company's actual Yiheng through Minority
Venture controller, is one of the Equity Investment negotiation 1 March Interests in a
35,291.64 37,560.35 37,560.35 In cash 0
Capital general partners and the acquisition Co., Ltd. based on the 2023 Majority-owned
Partners managing partner of the (hereinafter valuation Subsidiary,
hip Partnership Fund, holding referred to as report Withdrawal and
(Limited 0.05% of the Partnership “Yiheng Dissolution of
Partners Fund and exerting a material Investment”) Partnership Fund
102
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
hip) impact on the Partnership & Related Party
(hereina Fund. Meanwhile, the Transaction
fter Company holds 33.47% of (《关于收购控
referred the Partnership Fund and 股子公司少数
to as the accounts for two of the five 股权、退出并
“Partner members of the Partnership 解散合伙基金
ship Fund's Investment Decision- 暨关联交易的
Fund”) making Committee, which 公告》)
exerts a material impact on (Announcement
the Partnership Fund. No. 2023-015)
published on 1
March 2023 on
the media
designated for
information
disclosure
Reasons (if any) for any big difference between the transfer price and the
N/A
carrying value or valuation
1. The Company's acquisition of 49% equity interests in Yiheng Investment is paid with the Company's own
funds, and at present the Company's financial condition is relatively sound. The transaction will not affect the
Company's normal operating activities, and will not have a material adverse effect on the Company's current and
future financial condition and operating results.
Impact on the Company’s operating results and financial condition
2. The Company’s absorption of the pig husbandry business of the Partnership Fund through the equity
acquisition is in line with the Company's business development strategy. It can help optimise the allocation of
resources, reduce management costs, improve the efficiency of management and operation, and drive the long-
term development of the Company, which is in line with the interests of the Company and all its shareholders.
Fulfilment of performance undertakings during the reporting period if any
N/A
such undertaking is involved in the transaction above
103
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
3. Related party transactions connected to joint external investment
□ Applicable Not applicable
There was no related party transaction of the Company connected to joint external investment during the reporting
period.
4. Related creditors’ rights and debts transactions
□ Applicable Not applicable
There were no related creditors’ rights and debts of the Company during the reporting period.
5. Transactions with related finance companies
□ Applicable Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any other finance
business with any related finance company or any of its related parties.
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable Not applicable
No related parties made deposits in, received loans or credit from or was involved in any other finance business
with any finance company controlled by the Company.
7. Other significant related party transactions
□ Applicable Not applicable
There were no other significant related party transactions of the Company during the reporting period.
XV. Material Contracts and Implementation
1. Custody, contracting and leasing
(1) Custody
□ Applicable Not applicable
There was no custody of the Company during the reporting period.
(2) Contracting
□ Applicable Not applicable
There was no contracting of the Company during the reporting period.
(3) Leasing
□ Applicable Not applicable
There was no leasing of the Company during the reporting period.
104
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2. Significant guarantees
Applicable □ Not applicable
Unit: RMB’0,000
External guarantees of the Company and its subsidiaries (excluding guarantees to subsidiaries)
Date of the
Guarantee
related
Amount of Guarantee Guarantee Type of Collateral Fulfilled to related
Name of obligee announcement Counter-guarantee (if any) Term
guarantee date provided guarantee (if any) or not parties
disclosing the
or not
guarantee amount
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
30 March Company has the right to withhold 1-3
2,000 763.86 liability No No
2021 the relevant funds (including but not years
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
Customers (such as his/her spouse, and/or any third party
13 December
farmers and dealers) of provide counter-guarantees; and the
subsidiary 2022 Joint
14 May Company has the right to withhold 1-3
1,500 983.70 liability No No
2020 the relevant funds (including but not years
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
Joint his/her spouse, and/or any third party
1-3
1,100 6 May 2022 613.10 liability provide counter-guarantees; and the No No
years
guarantee Company has the right to withhold
the relevant funds (including but not
limited to remaining payments for
105
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
2 January Company has the right to withhold 1
20,000 1,244.14 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
4 March Company has the right to withhold 1
600 45.00 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
13 January Company has the right to withhold 1
20,000 23,430.70 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
Joint the adult children of the borrower and
4 January 1
20,000 35,045.68 liability his/her spouse, and/or any third party No No
2023 year
guarantee provide counter-guarantees; and the
Company has the right to withhold
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the relevant funds (including but not
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
12 January Company has the right to withhold 1
100,000 105,725.82 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
3 January Company has the right to withhold 1
30,000 50,080.53 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
27 March Company has the right to withhold 1
40,000 46,960.33 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
Joint The spouse of the borrower, any of
1
5,000 9 May 2023 4,122.16 liability the adult children of the borrower and No No
year
guarantee his/her spouse, and/or any third party
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provide counter-guarantees; and the
Company has the right to withhold
the relevant funds (including but not
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
1 December Company has the right to withhold 1
2,000 726.00 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
18 April Company has the right to withhold 1
500 145.42 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
1 January Company has the right to withhold 1
1,100 979.57 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
14 March
500 545.06 Joint The spouse of the borrower, any of 1 No No
2023
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liability the adult children of the borrower and year
guarantee his/her spouse, and/or any third party
provide counter-guarantees; and the
Company has the right to withhold
the relevant funds (including but not
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
7 April Company has the right to withhold 1
500 39.56 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
The spouse of the borrower, any of
the adult children of the borrower and
his/her spouse, and/or any third party
provide counter-guarantees; and the
Joint
1 January Company has the right to withhold 1
1,000 324.94 liability No No
2023 the relevant funds (including but not year
guarantee
limited to remaining payments for
goods and discounts) of the customer
for repaying the principal and interest
of the customer’s overdue loan.
13 December
Unutilised amount 27,700
2022
Total actual external
Total external guarantees approved during the
273,500 guarantees during the 271,775.57
reporting period (A1)
reporting period (A2)
Total balance of actual
Total external guarantees approved at the end external guarantees at
273,500 150,749.85
of the reporting period (A3) the end of the reporting
period (A4)
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Guarantees between the Company and its subsidiaries
Date of the
Guarantee
related
Amount of Guarantee Guarantee Type of Collateral Fulfilled to related
Name of obligee announcement Counter-guarantee (if any) Term
guarantee date provided guarantee (if any) or not parties
disclosing the
or not
guarantee amount
Guangdong Haid Joint
13 June 7
International Trade Co., 27 October 2017 35,518 12,040.59 liability N/A No No
2018 years
Ltd. guarantee
Guangzhou Yitun Pig 28 Joint
10
Industry Investment Co., 29 June 2019 55,700 November 46,252.75 liability N/A No No
2019 years
Ltd. guarantee
Guangzhou Yitun Pig 10 Joint
10
Industry Investment Co., 28 July 2020 80,000 September 64,589.20 liability N/A No No
2020 years
Ltd. guarantee
Shaoguan Zhenjiang Joint
8 January 8
Yitun Ecological 20 April 2021 17,400 15,086.01 liability N/A No No
2022 years
Agriculture Co., Ltd. guarantee
Shaoguan Zhenjiang Joint
16 March 8
Yitun Ecological 20 April 2021 19,200 11,949.60 liability N/A No No
2022 years
Agriculture Co., Ltd. guarantee
Joint
Qingyuan Haibei 29 June 10
12 April 2022 18,000 13,733.43 liability N/A No No
Biotechnology Co., Ltd. 2022 years
guarantee
Guangzhou Yitun Pig Joint
26 October 10
Industry Investment Co., 12 April 2022 23,000 13,858.90 liability N/A No No
2022 years
Ltd. guarantee
28 Joint
Qingyuan Haid 13 December 3
70 December 70.00 liability N/A No No
Biotechnology Co., Ltd. 2022 years
2022 guarantee
Guangzhou Yitun Pig Joint
13 December 9 January 2
Industry Investment Co., 30,000 17,007.40 liability N/A No No
2022 2023 years
Ltd. guarantee
Guangzhou Nansha Minority shareholders provide
Joint
Haishengyuan 13 December 3 April counter-guarantees for the 2
200 200.00 liability No No
Aquaculture Technology 2022 2023 Company in proportion to their years
guarantee shareholding percentages.
Co., Ltd.
13 December
Qingyuan Haibei 150 6 June 2023 150.00 Joint N/A 1 No No
2022
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Biotechnology Co., Ltd. liability year
guarantee
Joint
Qingyuan Hailong 13 December 14 June 1
373 373.00 liability N/A No No
Biotechnology Co., Ltd. 2022 2023 year
guarantee
Joint
Sihui Haifeng Biological 13 December 22 July 1
50 50.00 liability N/A No No
Agriculture Co., Ltd. 2022 2023 year
guarantee
20 Joint
China Haida Feed Group 13 December 1
15,627.92 November 3,136.79 liability N/A No No
(HK) Limited 2022 year
2023 guarantee
20 Joint
Pt Haida Biotechnology 13 December 2
3,098.25 November 619.65 liability N/A No No
Indonesia 2022 years
2023 guarantee
Joint
Wholly- and majority- 13 December 1 January 1
350,000 139,122.83 liability N/A No No
owned subsidiaries 2022 2023 year
guarantee
13 December
Unutilised amount 370,430.83
2022
Total amount of guarantee
Total amount of guarantee provided for
provided for subsidiaries
subsidiaries approved during the reporting 770,000.00 338,240.15
during the reporting period
period (B1)
(B2)
Total balance of guarantee
Total amount of guarantee provided for
provided for subsidiaries as
subsidiaries approved as at the end of the 1,018,818.00 211,402.38
at the end of the reporting
reporting period (B3)
period (B4)
Guarantees between subsidiaries
Date of the
Guarantee
related
Amount of Guarantee Guarantee Type of Collateral Fulfilled to related
Name of obligee announcement Counter-guarantee (if any) Term
guarantee date provided guarantee (if any) or not parties
disclosing the
or not
guarantee amount
Minority shareholders provide
Joint
Sheng Long Bio-Tech 28 August counter-guarantees for the 3
10 April 2022 14,420.65 1,007.58 liability No No
International Co., Ltd 2023 Company in proportion to their years
guarantee
shareholding percentages.
Shenglong Bio-Tech 13 December 13 January Joint Minority shareholders provide 1
1,544.98 974.92 No No
(India) Private Limited 2022 2023 liability counter-guarantees for the year
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guarantee Company in proportion to their
shareholding percentages.
Joint
China Haida Feed Group 13 December 14 April 1
16,338.28 13,876.49 liability N/A Yes No
(HK) Limited 2022 2023 year
guarantee
Minority shareholders provide
7 Joint
Sheng Long Bio-Tech 13 December counter-guarantees for the 1
8,524.32 September 1,270.50 liability No No
International Co., Ltd 2022 Company in proportion to their year
2023 guarantee
shareholding percentages.
Minority shareholders provide
2 Joint
Shenglong Bio-Tech 13 December counter-guarantees for the 1
5,682.88 September 1,319.83 liability No No
(India) Private Limited 2022 Company in proportion to their year
2023 guarantee
shareholding percentages.
Minority shareholders provide
Joint
Sheng Long Bio-Tech 13 December 28 July counter-guarantees for the 1
10,655.40 1,056.36 liability No No
International Co., Ltd 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Minority shareholders provide
17 Joint
Thang Long (Vinh 13 December counter-guarantees for the 2
10,094.46 November 854.61 liability No No
Long) Biotech Co., Ltd 2022 Company in proportion to their years
2023 guarantee
shareholding percentages.
Joint
Pt.Haida Agriculture 13 December 26 October 1
10,195.78 3,212.67 liability N/A No No
Indonesia 2022 2023 year
guarantee
Minority shareholders provide
Joint
Thang Long (Vinh 13 December 30 August counter-guarantees for the 1
7,103.60 4,334.32 liability No No
Long) Biotech Co., Ltd 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Hai Duong Haid
Company Limited, Binh
8 Joint
Dinh Hai Long Co., Ltd, 13 December 1
7,103.60 September 2,588.93 liability N/A No No
Haid Feed Company 2022 year
2023 guarantee
Limited, Vinh Long Hai
Dai Co., Ltd
Minority shareholders provide
Joint
Thang Long (Vinh 13 December 28 August counter-guarantees for the 1
14,207.20 210.69 liability No No
Long) Biotech Co., Ltd 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
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Minority shareholders provide
Joint
Shenglong Bio-Tech 13 December 4 October counter-guarantees for the 1
2,628.33 613.63 liability No No
(India) Private Limited 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Joint
Binh Dinh Hai Long 13 December 1
5,682.88 6 July 2023 3,002.79 liability N/A No No
Co., Ltd 2022 year
guarantee
Minority shareholders provide
12 Joint
Shenglong Bio-Tech 13 December counter-guarantees for the 1
3,906.98 December 1,277.25 liability No No
(India) Private Limited 2022 Company in proportion to their year
2023 guarantee
shareholding percentages.
Joint
Pt.Haida Agriculture 13 December 6 November 1
5,682.88 2,764.57 liability N/A No No
Indonesia 2022 2023 year
guarantee
Minority shareholders provide
Joint
Sheng Long Bio-Tech 13 December 2 August counter-guarantees for the 1
19,890.08 5,761.36 liability No No
International Co., Ltd 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Joint
Vinh Long Hai Dai Co., 13 December 13 July 1
5,682.88 3,159.78 liability N/A No No
Ltd 2022 2023 year
guarantee
Minority shareholders provide
Joint
Shenglong Bio-Tech 13 December 18 July counter-guarantees for the 1
3,551.80 1,022 liability No No
(India) Private Limited 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Minority shareholders provide
Joint
Shenglong Bio-Tech 13 December 16 October counter-guarantees for the 1
1,285.20 425.75 liability No No
(India) Private Limited 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Minority shareholders provide
Joint
Sheng Long Bio-Tech 13 December 3 August counter-guarantees for the 1
6,345.09 1,060.45 liability No No
International Co., Ltd 2022 2023 Company in proportion to their year
guarantee
shareholding percentages.
Joint
Nantong Haid 12 April 3
12 April 2022 1,800.00 1,771.44 liability N/A No No
Biotechnology Co., Ltd. 2022 years
guarantee
13 December
Unutilised amount 163,893.39
2022
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Total amount of guarantee
Total amount of guarantee between
between subsidiaries
subsidiaries approved during the reporting 310,000.00 51,565.92
during the reporting period
period (C1)
(C2)
Total balance of guarantee
Total amount of guarantee between
between subsidiaries as at
subsidiaries approved as at the end of the 326,220.65 35,360.60
the end of the reporting
reporting period (C3)
period (C4)
Total amount of guarantee provided (i.e. sum of the above three guarantee amounts)
Total amount of guarantee
Total amount of guarantee approved during approved during the
1,353,500.00 661,581.64
the reporting period (A1+B1+C1) reporting period
(A1+B1+C1)
Total amount of guarantee
Total amount of guarantee approved as at the approved as at the end of
1,618,538.65 397,512.83
end of the reporting period (A3+B3+C3) the reporting period
(A3+B3+C3)
Total amount of guarantee provided (i.e. A4+B4+C4) as % of the equity of
20.23%
the Company
Of which:
Balance of guarantee provided for shareholders, beneficial controllers and
0
its related parties (D)
Balance of guarantee directly or indirectly provided for obligors with
60,037.86
gearing ratio over 70% (E)
Total amount of guarantee provided in excess of 50% of the equity (F) 0
Total amount of the three kinds of guarantees above (D+E+F) 60,037.86
Explanations on liability to guarantee occurred during the reporting period
During the reporting period, the Company paid a total of RMB 49.1055 million for overdue loans with its
or possible joint liability for satisfaction for undue guarantee contracts (if
any) guarantee, of which RMB 13.3093 million was collected while it is trying to collect the rest.
Explanations on provision of guarantee in violation of established
N/A
procedures
Notes: 1. Where the “guarantee date” of a guarantee is earlier than the “date of the related announcement disclosing the guarantee amount”, it is a guarantee that had
already been approved at the time of the first occurrence and was extended or renewed in the reporting period.
2. The “guarantee provided” refers to the cumulative guarantee amount in the reporting period, including amounts relating to guarantees provided and then released
during the reporting period, and excluding amounts relating to guarantees incurred prior to the reporting period and released during the reporting period.
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3. The guarantee amounts provided by subsidiaries for external parties are calculated according to the equity-holding percentages of the Company in those
subsidiaries.
4. The foreign-currency guarantees are converted at the middle rate of exchange at the end of the reporting period.
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3. Entrusted cash and asset management
(1) Entrusted wealth management
Applicable □ Not applicable
Entrusted wealth management during the reporting period
Unit: RMB’0,000
Impairment
Fund source for Amount of Overdue allowances for the
Type entrusted wealth entrusted wealth Undue balance outstanding overdue
management management amount outstanding
amount
Wealth
management Own funds 101,000 101,000 0 0
products of banks
Total 101,000 101,000 0 0
Particulars of high risk wealth management products with individual significant amount or low security or poor
liquidity
□ Applicable Not applicable
Unable to recover the principal of entrusted wealth management or other circumstances that may result in
impairment
□ Applicable Not applicable
(2) Entrusted loans
Applicable □ Not applicable
Overview of entrusted loans during the reporting period
Unit: RMB’0,000
Total entrusted loans Source Undue balance Overdue outstanding amount
2,250 Own funds 750 0
Particulars of high risk wealth entrusted loans with individual significant amount or low security or poor liquidity
□ Applicable Not applicable
Unable to recover the principal of entrusted loans or other circumstances that may result in impairment
□ Applicable Not applicable
4. Other material contracts
□ Applicable Not applicable
The Company did not have any other material contract during the reporting period.
XVI. Other Matters of Significance
□ Applicable Not applicable
The Company did not have any other matters of significance to be explained during the reporting period.
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XVII. Matters of Significance of Subsidiaries of the Company
□ Applicable Not applicable
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Section VII. Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the reporting period (+/-) After
Shares as Shares as
dividend dividend
Percen
New converted converte Percent
Shares tage Other Subtotal Shares
issue from d from age (%)
(%)
retained capital
earnings reserves
1. Restricted
2,666,841 0.16% -1,477,369 -1,477,369 1,189,472 0.07%
shares
1.1 Shares
held by the
state
1.2 Shares
held by state-
owned
juridical
persons
1.3 Shares
held by other
2,666,841 0.16% -1,477,369 -1,477,369 1,189,472 0.07%
domestic
investors
Of
which: shares
held by
domestic
juridical
persons
Shares
held by
domestic 2,666,841 0.16% -1,477,369 -1,477,369 1,189,472 0.07%
natural
persons
1.4 Shares
held by
foreign
investors
Of
which: shares
held by
foreign
juridical
persons
Shares
held by
foreign
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natural
persons
2. Non-
99.84
restricted 1,658,494,220 4,066,278 4,066,278 1,662,560,498 99.93%
%
shares
2.1 RMB
99.84
ordinary 1,658,494,220 4,066,278 4,066,278 1,662,560,498 99.93%
%
shares
2.2
Domestically
listed foreign
shares
2.3
Overseas
listed foreign
shares
2.4 Other
3. Total 100.0 100.00
1,661,161,061 2,588,909 2,588,909 1,663,749,970
shares 0% %
Reasons for share changes
Applicable □ Not applicable
1. Based on the shareholdings of the Company’s directors, supervisors and senior management in the Company at
the end of last year, their tradable shares were recalculated at the beginning of the current year, resulting in
changes in their shares in lockup.
2. The locked up shares of directors and supervisors that had resigned before the expiry of their tenures were
unlocked during the reporting period, decreasing the restricted shares by 1,477,369 shares and increasing the non-
restricted shares by 1,477,369 shares, which had no impact on the total shares of the Company.
3. During the reporting period, the Company convened the Sixth Meeting of the Sixth Board of Directors and the
Fifth Meeting of the Sixth Supervisory Committee to consider and approve the Proposal on the Satisfaction of the
Exercise Conditions for the First Exercise Period of the First Grant of the 2021 Share Option Incentive Plan (《关
于公司2021年股票期权激励计划首次授予第一个行权期行权条件成就的议案》). As such, the awardees of
the first grant of the 2021 Share Option Incentive Plan exercised 2,588,909 share options at their own discretion in
the first exercise period. Upon this change, the total shares of the Company increased by 2,588,909 shares.
Upon the changes above, the total shares of the Company increased from 1,661,161,061 shares to 1,663,749,970
shares.
Approval of share changes
Applicable □ Not applicable
1. On 31 January 2023, the Company convened the Sixth Meeting of the Sixth Board of Directors and the Fifth
Meeting of the Sixth Supervisory Committee to consider and approve the Proposal on the Satisfaction of the
Exercise Conditions for the First Exercise Period of the First Grant of the 2021 Share Option Incentive Plan (《关
于公司2021年股票期权激励计划首次授予第一个行权期行权条件成就的议案》). As the exercise conditions
were satisfied for the first exercise period of the first grant of the 2021 Share Option Incentive Plan, 3,586
awardees eligible for exercise were agreed to exercise 8,860,712 share options in total at their own discretion in
the first exercise period. The independent directors of the Company have expressed their independent opinions on
the above matters and the Supervisory Committee of the Company has expressed its supervisory opinions.
2. On 28 June 2023, the Company convened the 11th Meeting of the Sixth Board of Directors and the 10th Meeting
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of the Sixth Supervisory Committee to consider and approve the Proposal on the Retirement of Due but
Unexercised Share Options in the First Exercise Period of the 2021 Share Option Incentive Plan (《关于注销
2021年股票期权激励计划第一个行权期到期未行权股票期权的议案》). As the first exercise period for the
first grant of the 2021 Share Option Incentive Plan had expired and the awardees exercised a total of 2,588,909
share options at their own discretion, the Company intended to retire the 6,271,803 due but unexercised share
options in the first exercise period of the first grant.
Transfer of share ownership
□ Applicable Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to
the ordinary shareholders of the parent company and other financial indicators of the prior year and the prior
period, respectively
Applicable □ Not applicable
For the effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the ordinary shareholders of the parent company and other financial indicators of the prior year and
the prior period, respectively, see “VI. Major accounting data and financial indicators” in “Section II”.
Other information that the Company considers necessary or is required by the securities regulator to be disclosed
□ Applicable Not applicable
2. Change in Restricted Shares
Applicable □ Not applicable
Unit: share
Increased in Unlocked in
Opening Closing Reason for Date of
Shareholder Reporting Reporting
restricted shares restricted shares lockup unlocking
Period Period
Certain
Shares of senior
directors and
management
senior 1,189,472 0 0 1,189,472 N/A
that were in
management of
lockup
the Company
Former
directors and 17 January
1,477,369 0 1,477,369 0 N/A
supervisors of 2023
the Company
Total 2,666,841 0 1,477,369 1,189,472 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) issued in the reporting period
□ Applicable Not applicable
2. Change in Total Shares, Shareholder Structure and Asset and Liability Structures
Applicable □ Not applicable
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Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
As the exercise conditions were satisfied for the first exercise period of the first grant of the 2021 Share Option
Incentive Plan (Revised) (《2021年股票期权激励计划（修订稿）》), during the reporting period, the awardees
of the first grant of the 2021 Share Option Incentive Plan exercised 2,588,909 share options at their own discretion
in the first exercise period. Upon this change, the total shares of the Company increased by 2,588,909 shares.
The above change in the total shares of the Company did not give rise to a change in the actual control of the
Company.
3. Existing Staff-Held Shares
□ Applicable Not applicable
III. Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Preferred
Ordinary Preferred shareholders
shareholders
shareholders with resumed voting
Ordinary with resumed
at the month- rights at the month-end
shareholders at 23,617 23,076 voting rights 0 0
end prior to prior to the disclosure
the period-end at the period-
the disclosure of this Report (if any)
end (if any)
of this Report (see note 8)
(see note 8)
5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing)
Shareholding Change Pledged, marked or
Non-
Name of Nature of percentage at during Restricted frozen shares
Shares restricted
shareholder shareholder period-end Reporting shares
shares Status Shares
(%) Period
Domestic
Guangzhou
non-state-
Haihao
owned 54.73% 910,589,359 0 0 910,589,359 Pledged 51,663,000
Investment
juridical
Co., Ltd.
person
Hong Kong
Foreign
Securities
juridical 7.15% 118,918,787 36,017,633 0 118,918,787 N/A 0
Clearing
person
Company Ltd.
Industrial and
Commercial
Bank of China
－Invesco
Great Wall
Other 2.58% 42,999,933 0 0 42,999,933 N/A 0
Newly Growth
Mixed
Securities
Investment
Fund
Abu Dhabi Foreign
Investment juridical 0.96% 16,019,780 4,956,711 0 16,019,780 N/A 0
Authority person
Bank of China
－Invesco Other 0.96% 15,999,899 0 0 15,999,899 N/A 0
Great Wall
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Dingyi Mixed
Securities
Investment
Fund (LOF)
National
Social Security
Other 0.65% 10,734,559 -785,739 0 10,734,559 N/A 0
Fund Portfolio
104
China
Zheshang
Bank Co., Ltd.
－Guotai
China
Securities
Animal Other 0.63% 10,443,513 4,437,376 0 10,443,513 N/A 0
Husbandry
Traded Open-
ended Index
Securities
Investment
Fund
Guangdong
Haid Group
Co., Limited－
The 2023
Other 0.62% 10,272,108 10,272,108 0 10,272,108 N/A 0
Employee
Stock
Ownership
Plan
National
Social Security
Other 0.48% 8,054,832 383,500 0 8,054,832 N/A 0
Fund Portfolio
106
Penghua Fund
－China Life
Insurance
Company
Limited－
Dividend
Insurance－
Penghua Fund Other 0.39% 6,506,817 1,549,400 0 6,506,817 N/A 0
China Life
Growth Stock
Portfolio
Single Asset
Management
Plan (available
for sale)
Strategic investor or general
juridical person becoming top-
10 shareholder due to placing N/A
of new shares (if any) (see
note 3)
Among the top 10 shareholders above, the first shareholder is the controlling shareholder of the
Related or acting-in-concert
Company, which is neither a related party nor an acting-in-concert party to the other shareholders. It
parties among shareholders
is unknown whether there is, among the other shareholders, any acting-in-concert party as defined in
above
the Administrative Measures On Acquisition Of Listed Companies (《上市公司收购管理办法》) or
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any related party.
Explain if any of the
shareholders above was
involved in entrusting/being N/A
entrusted with voting rights or
waiving voting rights
Special securities account for
At the end of the reporting period, the balance of the special securities account for repurchased shares
repurchased shares among the
of Guangdong Haid Group Co., Limited was 6,779,700 shares, which was not among the top 10
top 10 shareholders (see note
shareholders.
10) (if any)
Top 10 non-restricted shareholders
Non-restricted shares held at Type of shares
Name of shareholder
period-end Type Shares
Guangzhou Haihao Investment Co., Ltd. 910,589,359 RMB ordinary stock 910,589,359
Hong Kong Securities Clearing Company Ltd. 118,918,787 RMB ordinary stock 118,918,787
Industrial and Commercial Bank of China－Invesco
Great Wall Newly Growth Mixed Securities Investment 42,999,933 RMB ordinary stock 42,999,933
Fund
Abu Dhabi Investment Authority 16,019,780 RMB ordinary stock 16,019,780
Bank of China－Invesco Great Wall Dingyi Mixed
15,999,899 RMB ordinary stock 15,999,899
Securities Investment Fund (LOF)
National Social Security Fund Portfolio 104 10,734,559 RMB ordinary stock 10,734,559
China Zheshang Bank Co., Ltd.－Guotai China
Securities Animal Husbandry Traded Open-ended Index 10,443,513 RMB ordinary stock 10,443,513
Securities Investment Fund
Guangdong Haid Group Co., Limited－The 2023
10,272,108 RMB ordinary stock 10,272,108
Employee Stock Ownership Plan
National Social Security Fund Portfolio 106 8,054,832 RMB ordinary stock 8,054,832
Penghua Fund－China Life Insurance Company Limited
－Dividend Insurance－Penghua Fund China Life
6,506,817 RMB ordinary stock 6,506,817
Growth Stock Portfolio Single Asset Management Plan
(available for sale)
Among the top 10 shareholders above, the first shareholder is the
Related or acting-in-concert parties among top 10 non- controlling shareholder of the Company, which is neither a related party
restricted ordinary shareholders, as well as between top nor an acting-in-concert party to the other shareholders. It is unknown
10 non-restricted ordinary shareholders and top 10 whether there is, among the other shareholders, any acting-in-concert party
ordinary shareholders as defined in the Measures for Administration of Takeover of Listed
Companies (《上市公司收购管理办法》) or any related party.
Top 10 ordinary shareholders conducting securities
N/A
margin trading (see note 4) (if any)
Top 10 shareholders involved in refinancing shares lending:
Applicable □ Not applicable
Unit: share
Top 10 shareholders involved in refinancing shares lending
Shares lent in
Shares in the ordinary Shares in the ordinary Shares lent in refinancing
refinancing and not yet
account and credit account account and credit and not yet returned at
Full name of returned at the period-
at the period-beginning account at the period-end the period-end
shareholder beginning
As % of Total As % of As % of Total As % of
Total shares Total shares
total shares total total share shares total share
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share share capital capital
capital capital
China Zheshang
Bank Co., Ltd.
－Guotai China
Securities
Animal
6,006,137 0.36% 11,000 0.00066% 10,443,513 0.63% 42,100 0.0025%
Husbandry
Traded Open-
ended Index
Securities
Investment Fund
Changes in top 10 shareholders compared with the prior period
□ Applicable Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the
Company conducted any promissory repo during the reporting period
□ Yes No
No such cases in the reporting period.
2. Controlling Shareholder
Nature of controlling shareholder: Controlled by a natural person
Type of controlling shareholder: Juridical person
Legal
Name of controlling representativ Date of Unified social credit
Main business scope
shareholder e/person in establishment code
charge
Investment with self-owned capital;
wholesale of commodities (excluding
commodities that require a permit or
approval document to trade); retail sales
Guangzhou Haihao 27 September of commodities (excluding commodities
Hua Xue 91440113793877530G
Investment Co., Ltd. 2006 that require a permit or approval
document to trade); import and export of
commodities (excluding commodities
restricted to specific parties); and import
and export of technologies
Shareholdings of the
controlling shareholder
in other controlled or
non-controlled listed N/A
companies at home or
abroad during the
Reporting Period
Change of the controlling shareholder during the reporting period
□ Applicable Not applicable
No such cases in the reporting period.
3. Actual Controller
Nature of actual controller: Domestic natural person
Type of actual controller: Natural person
Name of actual controller Relationship with actual Nationality Right of residence in other
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controller countries or regions
Hua Xue Himself Chinese None
Main office titles Chairman of the Board, and President (General Manager)
Used-to-be-holding listed
companies at home and abroad N/A
in past 10 years
Change of the actual controller during the reporting period
□ Applicable Not applicable
No such cases in the reporting period.
Ownership and control relations between the actual controller and the Company
Hua Xue
39.75%
Guangzhou Haihao Investment Co., Ltd.
54.73%
Guangdong Haid Group Co., Limited
Indicate whether the actual controller controls the Company via trust or other ways of asset management
□ Applicable Not applicable
4. Indicate whether the cumulative shares of the controlling shareholder or the largest shareholder and
their acting-in-concert parties that are in pledge account for 80% or greater of their shareholdings in the
Company
□ Applicable Not applicable
5. Other 10% or Greater Juridical-Person Shareholders
□ Applicable Not applicable
6. Holdings of the Company’s Controlling Shareholder, Actual Controller, Reorganizer and Other
Commitment Makers under Restricted Sales Condition
□ Applicable Not applicable
IV. Share Repurchases during the Reporting Period
Implementation progress of any share repurchase
Applicable □ Not applicable
Disclosure Number of As a Amount to Number of Shares
Repurchase period Purpose
date of the shares to be percentage be used shares repurchased as
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plan repurchased of the total (RMB’0,000) repurchased a percentage of
(share) share (share) the total
capital underlying
shares of the
equity incentive
plan (if any)
Equity
No more than three
incentive
months of the date
1 plan and/or
5,454,545 to 0.33% to 30,000 to of the approval of
November employee 6,779,661
9,090,909 0.55% 50,000 the share repurchase
2023 stock
plan by the Board of
ownership
Directors
plan
Note: As of 31 January 2024, the share repurchase plan expired. The Company cumulatively repurchased
6,779,661 shares (or 0.41% of the Company’s total share capital) on the open market, which are deposited in its
special account for repurchased shares. The total transaction amount was RMB 300,057,977.88 (exclusive of
transaction costs), which is between the lower limit and the upper limit of the total amount stated in the repurchase
plan. As such, the implementation of the repurchase plan has been completed.
Implementation progress of any reduction of the repurchased shares on the open market
□ Applicable Not applicable
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Section VIII. Preferred Shares
□ Applicable Not applicable
No preferred shares in the reporting period.
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Section IX. Bonds
□ Applicable Not applicable
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Section X. Financial Statements
Independent Auditors Report
Audit Opinion Unmodified unqualified audit opinion
Audit Report Sign-off Date April 19th, 2024
Audit Institution Name Grant Thornton China (Special General Partnership)
Audit Report Number GTCNSZ (2024) NO. 440A012712
Name of Certified Public Accountant Wenyuan Guan, Shuntong Qiu
To the Shareholders of Guangdong Haid Group Co., Limited,
I. Opinion
We have audited the financial statements of Guangdong Haid Group Co., Limited (the “Company”), which
comprise the consolidated balance sheet as at December 31, 2023, and the consolidated income statement,
consolidated statement of changes in shareholders’ equity and consolidated statement of cash flows for the year
then ended, and the notes to the consolidated financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and
the Company’s financial position as at December 31, 2023, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting Standards for Business
Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statement section of
our report. We are independent of the Company in accordance with the Code of Ethics for Chinese Certified
Public Accountant (the “Ethics Code”) together with the ethical requirements that are relevant to our audit of the
financial statements, and we fulfilled our other ethical responsibilities in accordance with these requirements and
the Ethics Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
III. Key audit matters
The key audit matters are those matters that, in our professional judgment, are of most significance in our audit of
the financial statements of the current period. These matters are addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
(I) Revenue Recognition
Please refer to Note III. 29 and Note V. 53 in the Notes to the Financial Statements for the disclosure of revenue
recognition.
1. Description
The Company is mainly engaged in feed production and sales. In 2023, the Company’s operating revenue was
RMB116,117.17 million. We identified revenue recognition as a key audit matter because operating revenue is one
of the Company’s key performance indicators, and there is an inherent risk that management may manipulate the
timing of revenue recognition to achieve specific goals or expectations.
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 operation effectiveness of key internal controls.
(2) We carried out a spot check on significant sales contracts to analyze whether the identification of performance
obligations, the allocation of transaction prices and the determination on when the transfer of control of the related
goods or services were in line with the business model of the Company and complied with the accounting
standards for business enterprises;
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(3) We performed analytical procedures to access the reasonableness of changes in revenue and gross margin;
examined the monthly average sales price of the Company’s major products, and compared it with the data in the
prior period;
(4) We obtained the archival information of the new significant customers, searched their relevant information
through public channels and conducted assessment on whether they were related parties of the Company.
(5) To test the authenticity and completeness of revenue, we inspected the supporting documents related to
revenue recognition, including extracting sales statements to review the related sales contracts, delivery notes,
bills of lading, weighing notes, bank receipts, and monthly customer sales statements. We verified and analyzed
the sales data in the Company’s logistics system and financial system.
(6) To evaluate the accuracy and completeness of revenue, we performed confirmation procedures on revenue.
(7) We performed revenue cut-off testing as of the balance sheet date in conjunction with inventory observation
procedures to evaluate whether revenue was recognized in the appropriate period.
(II) Expected Credit Losses on Accounts Receivable
Please refer to Note III. 11 (6) and Note V. 4 in the Notes to the Financial Statements for the disclosure of
expected credit losses on accounts receivable.
1. Description
As of December 31, 2023, the balance of the Company’s accounts receivable was RMB2,056.71 million,
including provision of bad and doubtful debts of RMB370.55 million. The Company’s management assessed the
expected credit losses on accounts receivable individually and collectively based on the consideration of past
events, current situations and predictions of future economic conditions. Except for accounts receivable with
provision of bad and doubtful debts made individually, the management classified the accounts receivable into
corresponding portfolios based on similar credit risk characteristics. For accounts receivable classified into
portfolios, the management prepared comparison table of the accounts receivable aging and expected credit loss
rate based on the historical credit losses in conjunction with the current situation and predictions of future
economic conditions, and calculated the expected credit losses.
We identified expected credit losses on accounts receivable as a key audit matter because the Company involved
significant accounting estimate and judgment in making the expected credit losses on accounts receivable, and the
impact was significant.
2. How Our Audit Addressed the Key Audit Matter
(1) We understood and evaluated the design effectiveness of internal controls related to expected credit losses on
accounts receivable. We tested the operation effectiveness of key internal controls.
(2) For accounts receivable that were measured expected credit losses based on portfolio of credit risk
characteristics, we evaluated the appropriateness of portfolio classification, reviewed the appropriateness of the
historical losses rate and prospective adjustment calculated based on the migration rate model, reviewed if the
expected credit losses were adequate.
(3) We selected samples based on the distribution of accounts receivable as at balance sheet date and the revenue
in the current year to perform confirmation procedure on accounts receivable. We compared the confirmation
result against the Company’s book records.
(4) For accounts receivables with significant balance as at balance sheet date or with long aging, we selected
samples to examine customers’ operation situation, historical payment records and subsequent payments after the
balance sheet date.
(III) Inventory Provision
Please refer to Note III. 13 and Note V.7 in the Notes to the Financial Statements for disclosure of inventory
provision.
1. Description
As of December 31, 2023, the balance of the Company’s inventory was RMB9,935.86 million, which accounted
for 22.20% of the total assets, with an inventory provision of RMB66.92 million. The Company measured its
inventories at the lower of cost and net realizable value. Net realizable value is the estimated selling price less the
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estimated costs to completion, estimated selling expenses and relevant tax expenses. The Company used the
conclusive evidence obtained as the basis, in conjunction with the consideration of the purpose of holding the
inventories and the impact of subsequent events after the balance sheet date to determine the net realizable value.
We identified inventory provision as a key audit matter because the inventory balance was significant as at
December 31, 2023 and it involved management’s significant judgment in determining the net realizable value.
2. How Our Audit Addressed the Key Audit Matter
(1) We understood, evaluated and tested the design and operation effectiveness of internal controls related to
inventory.
(2) We performed inventory observation procedures to inspect the inventory quantity and condition.
(3) We obtained the inventory provision calculation schedule, tested for inventory provision and analyzed if the
inventory provision was adequate.
(4) We obtained the inventory list as at December 31, 2023. We performed analytical review on inventories with
long aging in conjunction with the inventory 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 and
compared the open market price with the Company’s estimated sales price. For products without available open
market price, we compared the Company’s estimated sales price against their latest actual sales price or actual
sales price in the subsequent period or actual sales price of similar products, to evaluate if the inventory provision
was adequate.
IV. Other Information
The Company’s management is responsible for the other information. The other information comprises all of the
information included in the Company’s 2023 Annual Report other than the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements 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 other
information, 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 Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in
accordance with the Accounting Standards for Business Enterprises, and for designing, implementing and
maintaining such internal control as the management determines is necessary to enable the preparation of financial
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 to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the management either intends to liquidate the Company or to cease operations,
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 Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
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 these financial statements.
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As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement 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 that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
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 conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we concluded that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, further events 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 the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicated with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identified during our audit.
We also provided those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicated with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that are of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
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Consolidated and Company Balance Sheet
As at December 31, 2023
Prepared by: Guangdong Haid Expressed in RMB
Group Co., Limited
Item N As at 31/12/2023 As at 31/12/2022
ot
e Consolidated Company Consolidated Company
V
Current assets:
Cash at bank and on 1
hand 5,476,452,778.79 3,234,318,586.60 2,260,586,666.69 940,680,982.06
Held-for-trading 2
financial assets 1,286,752,498.95 505,326,164.35 699,942,009.75 140,046,696.58
Notes receivable 3 - -
12,321,522.00 6,901,604.04
Accounts receivable 4
2,056,713,658.36 23,452.94 1,952,007,881.05 11,689.37
Accounts receivable - - - -
financing
Prepayments 5
743,154,926.15 396,515.66 1,787,282,249.33 579,408.35
Other receivables 6
957,972,560.29 11,769,046,063.77 1,322,999,051.80 13,125,884,408.71
Including: Interest - - - -
receivables
Dividend - - - -
receivables
Inventories 7
9,935,863,743.13 63,607,408.77 12,625,081,651.36 73,105,356.19
Contract assets - - - -
Assets held-for-sale 8 - -
596,427.47 596,427.47
Non-current assets due 9 - -
within one year 8,971,921.24 14,925,889.24
Other current assets 10
426,725,263.07 13,385,024.08 547,868,773.12 17,978,079.59
Total current assets
20,905,525,299.45 15,586,699,643.64 21,217,595,776.38 14,298,286,620.85
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Non-current assets:
Debt investments 11 - - -
1,137.46
Loans and advances to 12 - -
customers 689,500.00 1,866,871.63
Other debt investments - - - -
Long-term receivables 13
177,005,523.56 18,238,885.23 122,919,270.52 4,057,623.02
Net asset of defined - - -
benefit plans
Long-term equity 14
investments 216,673,525.00 10,977,958,460.08 315,182,888.17 9,503,410,059.09
Investments in other - - - -
equity instruments
Other non-current 15
financial assets 248,683,611.24 233,809,624.13 266,944,754.12 234,323,404.12
Investment properties 16
29,823,321.44 22,171,626.54 26,856,587.98 16,451,045.11
Fixed assets 17
16,393,917,170.28 343,886,373.06 14,933,452,189.00 349,536,896.34
Construction in progress 18
687,708,201.87 10,544,336.34 1,377,352,318.21 10,974,762.07
Productive biological 19 - -
assets 446,629,879.99 508,797,577.91
Right-of-use assets 20
2,360,221,694.26 65,331,506.40 2,371,772,104.05 78,994,932.58
Intangible assets 21
1,766,150,810.90 116,227,002.84 1,619,499,215.41 108,467,858.26
Development costs 22
30,107,986.40 20,264,774.70 18,906,101.80 11,249,408.77
Goodwill 23 - -
344,823,501.92 334,221,712.90
Long-term deferred 24
expenses 191,164,152.91 46,541,076.86 183,399,413.62 56,545,699.61
Deferred tax assets 25
673,449,861.92 4,362,774.63 978,549,995.90 175,491,870.17
Other non-current assets 26
274,161,734.47 3,219,336.96 193,070,520.82 2,305,492.36
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Total non-current
assets 23,841,210,476.16 11,862,555,777.77 23,252,792,659.50 10,551,809,051.50
Total assets
44,746,735,775.61 27,449,255,421.41 44,470,388,435.88 24,850,095,672.35
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Consolidated and Company Balance Sheet (continued)
As at December 31, 2023
Prepared by: Guangdong Haid Expressed in
Group Co., Limited RMB
Item Not As at 31/12/2023 As at 31/12/2022
eV
Consolidated Company Consolidated Company
Current liabilities:
Short-term loans 28
1,396,136,213.00 846,961,821.29 2,910,809,252.56 1,980,915,497.76
Held-for-trading financial 29 -
liabilities 22,203,844.99 3,461,597.27 46,533,780.00
Notes payable 30
5,897,614,880.98 5,897,614,880.98 3,502,208,518.33 3,483,994,854.13
Accounts payable 31
4,743,294,500.05 48,268,851.32 5,341,179,436.25 82,730,889.60
Advances from customers 32 -
5,483,153.55 499,559.00 3,922,795.42
Contract liabilities 33
1,922,213,731.37 8,197.00 1,720,519,173.21 2,502.68
Employee benefits payable 34
1,682,599,689.54 262,545,916.61 1,409,612,399.69 237,317,153.86
Taxes payable 35
259,879,934.08 17,574,898.64 210,828,446.34 1,727,986.15
Other payables 36
839,176,371.57 6,278,036,424.91 468,736,318.76 5,550,345,198.70
Including: Interest - - - -
payables
Dividend - -
payables 3,886,356.36 3,279,944.00
Liabilities held-for-sale - - - -
Non-current liabilities due 37
within one year 1,055,201,514.58 446,022,586.19 1,258,497,814.94 408,932,927.51
Other current liabilities 38
610,875,764.75 42,865,048.54 559,698,472.24 44,795,850.36
Total current liabilities
18,434,679,598.4 13,843,859,781.7 17,432,546,407.7 11,790,762,860.7
136
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
6 5 4 5
Non-current liabilities:
Long-term loans 39
3,027,758,789.71 1,528,463,333.25 5,066,407,199.42 1,686,643,333.29
Debentures payable - - - -
Lease liability 40
1,619,548,546.37 43,379,402.68 1,610,426,421.30 53,395,046.47
Long-term payables 41 - -
65,410,255.77 53,910,873.61
Long-term employee 42
benefits payable 113,458,359.73 18,148,364.39 192,958,628.79 25,570,358.38
Provisions - - - -
Deferred income 43
334,812,148.89 27,601,511.96 299,528,716.40 13,692,868.54
Deferred tax liabilities 25 -
185,756,499.56 454,591,103.02 57,101,913.92
Other non-current 44 -
liabilities 53,994,651.73 26,000,000.00 145,885.76
Total non-current
liabilities 5,400,739,251.76 1,643,592,612.28 7,677,968,828.30 1,836,403,520.60
Total liabilities
23,835,418,850.2 15,487,452,394.0 25,110,515,236.0 13,627,166,381.3
2 3 4 5
Share capital 45
1,663,749,970.00 1,663,749,970.00 1,661,161,061.00 1,661,161,061.00
Other equity instruments - - - -
Capital reserve 46
5,415,541,083.59 5,799,984,845.21 5,300,061,077.97 5,514,740,565.56
Less: Treasury stock 47
1,092,402,857.64 1,092,402,857.64 792,321,152.16 792,321,152.16
Other comprehensive 48 - -
income 299,040,374.31 300,049,768.45
Specific reserve 49 - - -
398,575.53
Surplus reserve 50
831,874,985.00 831,874,985.00 830,580,530.50 830,580,530.50
137
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
General risk provision 51 - -
2,599,780.20 4,834,904.00
Retained earnings 52
12,526,305,153.2 4,758,596,084.81 10,528,173,146.8 4,008,768,286.10
0 2
Total equity attributable to
shareholders of the parent 19,647,107,064.1 11,961,803,027.3 17,832,539,336.5 11,222,929,291.0
company 9 8 8 0
Non-controlling interests - -
1,264,209,861.20 1,527,333,863.26
Total shareholders'
equity 20,911,316,925.3 11,961,803,027.3 19,359,873,199.8 11,222,929,291.0
9 8 4 0
Total liabilities and
shareholders' equity 44,746,735,775.6 27,449,255,421.4 44,470,388,435.8 24,850,095,672.3
1 1 8 5
Legal representative: Xue Person in charge of Yang Shaolin Person in charge Yang Shaolin
Hua accounting function: of accounting
department:
138
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Consolidated and Company Income Statement
For the year ended December 31, 2023
Prepared by: Guangdong Expressed in
Haid Group Co., Limited RMB
Item Not 2023 2022
eV
Consolidated Company Consolidated Company
I. Operating income 53
116,117,168,742.9 2,939,482,749.3 104,715,417,485.9 2,753,351,923.9
7 5 2 4
Less: Operating costs 53
106,280,618,465.6 1,276,307,830.7 95,003,580,100.23 1,294,200,413.9
8 9 0
Taxes and 54
surcharges 138,554,646.26 4,375,510.48 123,268,230.68 3,189,607.60
Selling and 55
distribution expenses 2,259,143,012.20 - 1,980,987,068.23 -
General and 56
administrative expenses 2,616,739,147.40 464,769,331.78 2,583,815,226.76 575,656,719.91
Research and 57
development expenses 784,880,414.03 241,409,129.02 711,235,490.13 255,946,726.08
Financial expenses 58 -
512,506,390.25 155,125,953.65 596,764,082.61 146,949,767.09
Including:
Interest expenses 434,808,591.01 276,928,794.58 493,321,918.85 305,062,363.63
Interest income 64,284,395.34 438,752,390.96 47,519,969.08 169,978,618.36
Add: Other income 59
112,638,285.79 11,701,376.58 143,078,404.03 12,420,501.60
Investment income 60
("-" for losses) 245,645,976.16 522,317,030.64 267,121,175.54 999,748,728.07
Including: -
Income from investment in 49,850,706.07 357,434.09 47,855,406.41 1,276,430.90
associates and joint
ventures
- -
Income from derecognition 521,219.60 - 1,262,095.66 -
of financial assets measured
at amortized cost ("-" for
losses)
139
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Net exposure hedge - -
income ("-" for losses) - -
Gains from changes 61 - - -
in fair value ("-" for losses) 15,159,408.90 2,146,686.33 25,949,112.55 18,020,717.76
Credit impairment 62 - - -
losses ("-" for losses) 197,850,781.23 1,258,597.80 151,825,135.93 602,942.23
Impairment losses 63 - - - -
("-" for losses) 121,219,210.22 8,112,320.66 51,868,678.48 633,989.93
Gains from assets 64 -
disposal ("-" for losses) 3,014,883.68 2,938,420.39 6,722,883.81 131,366.61
II. Operating profit ("-"
for losses) 3,551,796,412.43 1,634,119,851.2 3,903,046,823.70 1,470,451,635.7
3 2
Add: Non-operating 65
income 65,367,813.81 21,754.90 43,855,867.05 338,059.83
Less: Non-operating 66
expenses 99,011,582.34 2,652,944.26 124,178,162.07 28,775,531.93
III. Profit before income
tax ("-" for losses) 3,518,152,643.90 1,631,488,661.8 3,822,724,528.68 1,442,014,163.6
7 2
Less: Income tax expenses 67
646,637,019.68 136,301,370.76 654,057,118.40 96,887,716.69
IV. Net profit for the year
("-" for losses) 2,871,515,624.22 1,495,187,291.1 3,168,667,410.28 1,345,126,446.9
1 3
(I) Classification
according to operation
continuity
Including: Net profit
from continuing operations 2,871,515,624.22 1,495,187,291.1 3,168,667,410.28 1,345,126,446.9
("-" for net 1 3
loss)
Net profit - -
from discontinued - -
operations
("-" for net
loss)
(II) Attributable to:
Including: Shareholders
of the parent company 2,741,256,374.98 1,495,187,291.1 2,957,330,734.56 1,345,126,446.9
("-" for net 1 3
loss)
140
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Non-
controlling interests ("-" for 130,259,249.24 - 211,336,675.72 -
net loss)
V. Other comprehensive -
income, net of tax 8,102,486.23 - 435,781,170.46 -
Other comprehensive -
income (net of tax) 1,009,394.14 - 444,747,944.05 -
attributable to shareholders
of the parent company
(I) Items that will not be - -
reclassified to profit or loss - -
(II) Items that may be -
reclassified to profit or loss 1,009,394.14 - 444,747,944.05 -
1. Cash flow
hedging reserves 14,324,188.55 - 343,105,696.10 -
2. Translation -
differences arising from 15,333,582.69 - 101,642,247.95 -
translation of foreign
currency financial
statements
Other comprehensive - -
income (net of tax) 7,093,092.09 - 8,966,773.59 -
attributable to non-
controlling interests
VI. Total comprehensive
income for the year 2,863,413,137.99 1,495,187,291.1 3,604,448,580.74 1,345,126,446.9
1 3
Attributable to
shareholders of the parent 2,740,246,980.84 1,495,187,291.1 3,402,078,678.61 1,345,126,446.9
company 1 3
Attributable to non-
controlling interests 123,166,157.15 - 202,369,902.13 -
VII. Earnings per share
1. Basic earnings per
share 1.66 1.79
2. Diluted earnings per
share 1.66 1.79
Legal representative: Xue Person in charge of Yang Shaolin Person in charge Yang Shaolin
Hua accounting function: of accounting
department:
141
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Consolidated and Company Cash Flow Statement
For the year ended December 31, 2023
Prepared by: Expressed in RMB
Guangdong Haid
Group Co., Limited
Item Not 2023 2022
eV
Consolidated Company Consolidated Company
I. Cash flows from
operating activities
Cash received from
sales of goods and 117,485,829,661.5 3,016,767,869.58 105,515,366,873.9 1,611,001,116.36
rendering of services 3 2
Cash received from
interest, handling fee 66,569,305.40 - 52,471,775.44 -
and commission
Refund of taxes
29,563,190.49 620,671.66 46,778,969.55 27,784.87
Net decrease in loans
and advances to 128,871,293.50 - 273,826,418.39 -
customers
Cash received from 68
other operating 1,365,246,170.40 142,888,112,079.3 1,071,481,974.47 129,205,998,725.3
activities 5 4
Sub-total of cash
inflows from operating 119,076,079,621.3 145,905,500,620.5 106,959,926,011.7 130,817,027,626.5
activities 2 9 7 7
Cash paid for goods
and services 97,219,238,071.90 703,342,161.19 91,539,931,901.86 532,862,166.40
Net increase in loans
and advances to - - - -
customers
Cash paid to and on
behalf of employees 5,650,761,173.21 584,376,460.25 5,028,206,028.20 577,404,969.85
Taxes payments
974,104,444.25 33,761,063.13 951,951,549.79 4,884,596.67
Cash paid for other 68
operating activities 2,533,601,232.42 138,778,643,177.4 2,621,942,281.01 127,287,775,456.6
0 9
Sub-total of cash
outflows for operating 106,377,704,921.7 140,100,122,861.9 100,142,031,760.8 128,402,927,189.6
142
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
activities 8 7 6 1
Net cash flows from
operating activities 12,698,374,699.54 5,805,377,758.62 6,817,894,250.91 2,414,100,436.96
II. Cash flows from
investing activities
Cash received from
disposal of investments 5,344,558,061.06 204,556,476.72 8,533,382,387.16 1,345,367,699.62
Cash received from
investment gains 245,375,459.48 514,172,039.85 252,221,284.89 1,002,634,156.19
Cash received from
disposal of fixed assets, 15,826,538.51 774,532.70 21,674,298.08 120,297.04
intangible assets and
other long-term assets
Net proceeds from
disposal of subsidiaries - - - -
and other business units
Cash received from 68
other investing 50,019,465.23 - 10,574,504.91 -
activities
Sub-total of cash
inflows from investing 5,655,779,524.28 719,503,049.27 8,817,852,475.04 2,348,122,152.85
activities
Payment for acquisition
of fixed assets, 3,353,272,322.86 81,704,729.62 5,001,931,119.51 146,524,106.56
intangible assets and
other long-term assets
Payment for acquisition
of investments 6,049,784,835.23 1,967,484,032.67 9,199,535,576.31 4,357,429,815.40
Net payments for
acquisition of 49,243,279.60 - 4,936,376.84 -
subsidiaries and other
business units
Cash paid for other 68
investing activities 23,453,842.66 - 56,933,976.70 6,000.00
Sub-total of cash
outflows for investing 9,475,754,280.35 2,049,188,762.29 14,263,337,049.36 4,503,959,921.96
activities
Net cash flows from - - - -
investing activities 3,819,974,756.07 1,329,685,713.02 5,445,484,574.32 2,155,837,769.11
III. Cash flows from
financing activities
143
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Cash received from
investors 200,497,037.71 153,147,037.71 69,933,021.63 -
Including: Proceeds
from non-controlling 47,350,000.00 - 69,933,021.63 -
shareholders of
subsidiaries
Cash received from
borrowings 9,804,523,690.84 6,417,302,695.67 13,925,695,034.50 11,211,276,748.16
Cash received from 68
other financing 358,652,860.27 314,882,047.10 17,015,584.74 2,869,914.56
activities
Sub-total of cash
inflows from financing 10,363,673,588.82 6,885,331,780.48 14,012,643,640.87 11,214,146,662.72
activities
Repayments of
borrowings 13,572,759,670.89 7,681,893,795.71 13,494,122,760.15 10,503,170,726.06
Payment for dividends,
profit distributions or 1,282,542,853.15 1,028,099,989.14 951,057,561.84 616,834,697.75
interests
Including:
Dividends and profits 98,854,783.20 - 205,146,501.52 -
paid to non-controlling
shareholders of
subsidiaries
Cash paid for other 68
financing activities 1,161,542,718.88 358,856,353.50 497,507,448.43 19,580,462.79
Sub-total of cash
outflows for financing 16,016,845,242.92 9,068,850,138.35 14,942,687,770.42 11,139,585,886.60
activities
Net cash flows from - - -
financing activities 5,653,171,654.10 2,183,518,357.87 930,044,129.55 74,560,776.12
IV. Effect of foreign - -
exchange rate changes 19,871,133.73 435,653.23 1,326,267.77 4,046,174.03
on cash and cash
equivalents
V. Net increase in
cash and cash 3,245,099,423.10 2,291,738,034.50 441,039,279.27 336,869,618.00
equivalents
Add: Cash and cash
equivalents at the 2,122,149,250.34 940,680,967.57 1,681,109,971.07 603,811,349.57
beginning of the period
VI. Cash and cash
equivalent at the end 5,367,248,673.44 3,232,419,002.07 2,122,149,250.34 940,680,967.57
of the period
144
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Legal representative: Person in charge of Yang Shaolin Person in charge Yang Shaolin
Xue Hua accounting function: of accounting
department:
145
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Consolidated Statement of Changes in Shareholders' Equity
For the year ended December 31, 2023
Prepared Expressed
by: in RMB
Guangdon
g Haid
Group
Co.,
Limited
Item Year ended 31/12/2023
Attributable to shareholders' equity of the parent company Non- Total
controlling shareholde
Share Other equity Capital Less: Other Specifi Surplus General Retained interests rs' equity
capital instruments reserve Treasury comprehe c reserve risk earnings
stock nsive reserv provisio
Prefer Perpe Oth income e n
ence tual ers
share debt
I.
Balance 1,661,161, - - - 5,300,061, 792,321,15 300,049,7 - 830,580,5 4,834,90 10,528,173, 1,527,333, 19,359,873,
at the end 061.00 077.97 2.16 68.45 30.50 4.00 146.82 863.26 199.84
of last
year
Add:
Changes - - - - - - - - - - - - -
in
accountin
g policies
Correctio - - - - - - - - - - - - -
n of prior
146
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
period
errors
Adjustme - - - - - - - - - - - - -
nts for
business
combinati
ons
involving
enterprise
s under
common
control
Others - - - - - - - - - - - - -
II.
Balance 1,661,161, - - - 5,300,061, 792,321,15 300,049,7 - 830,580,5 4,834,90 10,528,173, 1,527,333, 19,359,873,
at the 061.00 077.97 2.16 68.45 30.50 4.00 146.82 863.26 199.84
beginning
of the
year
III. - - -
Changes 2,588,909. - - - 115,480,00 300,081,70 1,009,394. 398,57 1,294,454 2,235,12 1,998,132,0 263,124,00 1,551,443,7
in equity 00 5.62 5.48 14 5.53 .50 3.80 06.38 2.06 25.55
during
the year
( "- " for
decrease)
(I) Total -
comprehe - - - - - - 1,009,394. - - - 2,741,256,3 123,166,15 2,863,413,1
nsive 14 74.98 7.15 37.99
income
(II) - -
147
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Sharehold 2,588,909. - - - 115,480,00 300,081,70 - - - - - 286,828,96 468,841,754
ers' 00 5.62 5.48 3.65 .51
contributi
ons and
decrease
of capital
1.
Contributi 2,588,909. - - - 150,558,12 - - - - - - 47,350,000 200,497,037
on by 00 8.71 .00 .71
ordinary
sharehold
ers
2.
Contributi - - - - - - - - - - - - -
on by
holders of
other
equity
instrumen
ts
3. Share
based - - - - 12,331,583 - - - - - - 2,183,419. 14,515,002.
payment .33 47 80
included
in
sharehold
ers' equity
4. Others - - -
- - - - 47,409,706 300,081,70 - - - - - 336,362,38 683,853,795
.42 5.48 3.12 .02
(III) - - - -
Appropria - - - - - - - - 1,294,454 2,235,12 743,124,368 99,461,195 843,526,233
tion of .50 3.80 .60 .56 .46
profits
148
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
1. -
Appropria - - - - - - - - 1,294,454 - 1,294,454.5 - -
tion for .50 0
surplus
reserves
2. -
Appropria - - - - - - - - - 2,235,12 2,235,123.8 - -
tion for 3.80 0
general
risk
provision
3. - - -
Distributi - - - - - - - - - - 744,065,037 99,461,195 843,526,233
ons to .90 .56 .46
sharehold
ers
4. Others
- - - - - - - - - - - - -
(IV)
Transfer - - - - - - - - - - - - -
within
equity
1.
Transfer - - - - - - - - - - - - -
of capital
reserve to
share
capital
2.
Transfer - - - - - - - - - - - - -
of surplus
reserve to
share
149
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
capital
3.
Surplus - - - - - - - - - - - - -
reserve
for
making
up losses
4.
Transfer - - - - - - - - - - - - -
the
changes
in defined
benefit
plan into
retained
earnings
5.
Transfer - - - - - - - - - - - - -
of other
comprehe
nsive
income to
retained
earning
6. Others
- - - - - - - - - - - - -
(V)
Specific - - - - - - - 398,57 - - - - 398,575.53
reserve 5.53
1.
Appropria - - - - - - - 398,57 - - - - 398,575.53
tion 5.53
during the
150
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
year
2.
Utilizatio - - - - - - - - - - - - -
n during
the year
(VI)
Others - - - - - - - - - - - - -
IV.
Balance 1,663,749, - - - 5,415,541, 1,092,402, 299,040,3 398,57 831,874,9 2,599,78 12,526,305, 1,264,209, 20,911,316,
at the end 970.00 083.59 857.64 74.31 5.53 85.00 0.20 153.20 861.20 925.39
of the
year
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting department:
Yang Shaolin
151
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Consolidated Consolidated Statement of Changes in Shareholders' Equity (continued)
Statement of
Changes in
Shareholders'
Equity
For the year For the year ended December 31, 2023
ended December
31, 2023
Prepared by: Expressed
Guangdong in RMB
Haid Group Co.,
Limited
Item Year ended 31/12/2022
Attributable to shareholders' equity of the parent company Non- Total
controlling shareholde
Share Other equity Capital Less: Other Specific Surplus General Retained interests rs' equity
capital instruments reserve Treasury compre reserve reserve risk earnings
stock hensive provisio
Prefe Perpe Other income n
rence tual s
share debt
I. Balance at -
the end of last 1,661,161 - - - 5,127,738 792,321,1 144,698, - 746,430, 9,005,02 7,894,011 1,472,249,2 15,973,576,
year ,061.00 ,338.63 52.16 175.60 806.85 8.55 ,164.82 27.12 299.21
Add: Changes in
accounting - - - - - - - - 25,250.4 - 4,418,939 1,091,904.6 5,536,094.1
policies 6 .03 8 7
Correction
of prior period - - - - - - - - - - - - -
errors
Adjustments for - - - - - - - - - - - - -
business
combinations
involving
enterprises
under common
control
152
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Others
- - - - - - - - - - - - -
II. Balance at -
the beginning 1,661,161 - - - 5,127,738 792,321,1 144,698, - 746,456, 9,005,02 7,898,430 1,473,341,1 15,979,112,
of the year ,061.00 ,338.63 52.16 175.60 057.31 8.55 ,103.85 31.80 393.38
III. Changes in -
equity during - - - - 172,322,7 - 444,747, - 84,124,4 4,170,12 2,629,743 53,992,731. 3,380,760,8
the year ( "- " 39.34 944.05 73.19 4.55 ,042.97 46 06.46
for decrease)
(I) Total
comprehensive - - - - - - 444,747, - - - 2,957,330 202,369,90 3,604,448,5
income 944.05 ,734.56 2.13 80.74
(II)
Shareholders' - - - - 181,968,1 - - - - - - 38,221,700. 220,189,87
contributions 75.69 51 6.20
and decrease of
capital
1. Contribution
by ordinary - - - - - - - - - - - 69,933,021. 69,933,021.
shareholders 63 63
2. Contribution
by holders of - - - - - - - - - - - - -
other equity
instruments
3. Share based
payment - - - - 211,328,6 - - - - - - 9,519,865.8 220,848,52
included in 60.37 9 6.26
shareholders'
equity
4. Others - - -
- - - - 29,360,48 - - - - - - 41,231,187. 70,591,671.
4.68 01 69
(III) - - - -
Appropriation of - - - - - - - - 84,124,4 4,170,12 327,587,6 186,598,87 434,232,21
profits 73.19 4.55 91.59 1.18 4.13
1. Appropriation -
for surplus - - - - - - - - 84,124,4 - 84,124,47 - -
reserves 73.19 3.19
153
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2. Appropriation -
for general risk - - - - - - - - - 4,170,12 4,170,124 - -
provision 4.55 .55
3. Distributions - - -
to shareholders - - - - - - - - - - 247,633,3 186,598,87 434,232,21
42.95 1.18 4.13
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 - - - - - - - - - - - - -
154
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2. Utilization
during the year - - - - - - - - - - - - -
(VI) Others - -
- - - - 9,645,436 - - - - - - - 9,645,436.3
.35 5
IV. Balance at
the end of the 1,661,161 - - - 5,300,061 792,321,1 300,049, - 830,580, 4,834,90 10,528,17 1,527,333,8 19,359,873,
year ,061.00 ,077.97 52.16 768.45 530.50 4.00 3,146.82 63.26 199.84
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting
department: Yang Shaolin
155
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Company Statement of Changes in Shareholders' Equity
For the year ended December 31, 2023
Prepared Expressed in
by: RMB
Guangdong
Haid Group
Co.,
Limited
Item Year ended 31/12/2023
Share Other Capital reserve Less: Other Specif Surplus Retained earnings Total
capital equity Treasury comprehen ic reserve shareholders'
instrume stock sive income reser equity
nts ve
Preferen Perpet Othe
ce share ual rs
debt
I. Balance
at the end 1,661,161,06 - - - 5,514,740,56 792,321,152. - - 830,580,53 4,008,768,286.10 11,222,929,29
of last year 1.00 5.56 16 0.50 1.00
Add:
Changes in - - - - - - - - - - -
accounting
policies
Correction - - - - - - - - - - -
of prior
period
errors
Others - - - - - - - - - - -
II. Balance
at the 1,661,161,06 - - - 5,514,740,56 792,321,152. - - 830,580,53 4,008,768,286.10 11,222,929,29
beginning 1.00 5.56 16 0.50 1.00
of the year
156
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
III.
Changes in 2,588,909.00 - - - 285,244,279. 300,081,705. - - 1,294,454.5 749,827,798.71 738,873,736.3
equity 65 48 0 8
during the
year ( "- "
for
decrease)
(I) Total
comprehen - - - - - - - - - 1,495,187,291.11 1,495,187,291
sive .11
income
(II) -
Shareholde 2,588,909.00 - - - 165,100,192. 300,081,705. - - - - 132,392,604.2
rs' 21 48 7
contributio
ns and
decrease of
capital
1.
Contributio 2,588,909.00 - - - 150,558,128. - - - - - 153,147,037.7
n by 71 1
ordinary
shareholder
s
2.
Contributio - - - - - - - - - - -
n by
holders of
other
equity
instruments
3. Share
based - - - - 14,542,063.5 - - - - - 14,542,063.50
payment 0
included in
shareholder
s' equity
4. Others -
- - - - - 300,081,705. - - - - 300,081,705.4
48 8
157
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(III) - -
Appropriati - - - - - - - - 1,294,454.5 745,359,492.40 744,065,037.9
on of 0 0
profits
1. -
Appropriati - - - - - - - - 1,294,454.5 1,294,454.50 -
on for 0
surplus
reserves
2.
Appropriati - - - - - - - - - - -
on for
general risk
provision
3. - -
Distributio - - - - - - - - - 744,065,037.90 744,065,037.9
ns to 0
shareholder
s
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
158
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
4. Transfer
the changes - - - - - - - - - - -
in defined
benefit plan
into
retained
earnings
5. Transfer
of other - - - - - - - - - - -
comprehen
sive
income to
retained
earning
6. Others
- - - - - - - - - - -
(V)
Specific - - - - - - - - - - -
reserve
1.
Appropriati - - - - - - - - - - -
on during
the year
2.
Utilization - - - - - - - - - - -
during the
year
(VI) Others
- - - - 120,144,087. - - - - - 120,144,087.4
44 4
IV.
Balance at 1,663,749,97 - - - 5,799,984,84 1,092,402,85 - - 831,874,98 4,758,596,084.81 11,961,803,02
the end of 0.00 5.21 7.64 5.00 7.38
the year
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting department: Yang Shaolin
159
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Company Company Statement of Changes in Shareholders' Equity (continued)
Statement
of Changes
in
Shareholde
rs' Equity
For the year For the year ended December 31, 2023
ended
December
31, 2023
Prepared Expressed in
by: RMB
Guangdong
Haid Group
Co.,
Limited
Item Year ended 31/12/2022
Share capital Other equity instruments Capital Less: Other Specif Surplus Retained Total
reserve Treasury comprehen ic reserve earnings shareholders'
stock sive income reserv equity
Prefere Perpet Others e
nce ual
share debt
I. Balance
at the end 1,661,161,06 - - - 5,307,476,32 792,321,152 - - 746,430,806.8 2,995,172,40 9,917,919,444.
of last year 1.00 7.94 .16 5 1.18 81
Add:
Changes in - - - - - - - - 25,250.46 227,254.13 252,504.59
accounting
policies
Correction - - - - - - - - - - -
of prior
period
errors
Others - - - - - - - - - - -
160
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
II. Balance
at the 1,661,161,06 - - - 5,307,476,32 792,321,152 - - 746,456,057.3 2,995,399,65 9,918,171,949.
beginning 1.00 7.94 .16 1 5.31 40
of the year
III.
Changes in - - - - 207,264,237. - - - 84,124,473.19 1,013,368,63 1,304,757,341.
equity 62 0.79 60
during the
year ( "- "
for
decrease)
(I) Total
comprehens - - - - - - - - - 1,345,126,44 1,345,126,446.
ive income 6.93 93
(II)
Shareholder - - - - 220,848,526. - - - - - 220,848,526.2
s' 28 8
contributio
ns and
decrease of
capital
1.
Contributio - - - - - - - - - - -
n by
ordinary
shareholder
s
2.
Contributio - - - - - - - - - - -
n by
holders of
other equity
instruments
3. Share
based - - - - 220,848,526. - - - - - 220,848,526.2
payment 28 8
included in
shareholder
s' equity
161
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
4. Others
- - - - - - - - - - -
(III) - -
Appropriati - - - - - - - - 84,124,473.19 331,757,816. 247,633,342.9
on of 14 5
profits
1. -
Appropriati - - - - - - - - 84,124,473.19 84,124,473.1 -
on for 9
surplus
reserves
2.
Appropriati - - - - - - - - - - -
on for
general risk
provision
3. - -
Distribution - - - - - - - - - 247,633,342. 247,633,342.9
s to 95 5
shareholder
s
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 - - - - - - - - - - -
162
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
making up
losses
4. Transfer
the changes - - - - - - - - - - -
in defined
benefit plan
into
retained
earnings
5. Transfer
of other - - - - - - - - - - -
comprehens
ive income
to retained
earning
6. Others
- - - - - - - - - - -
(V)
Specific - - - - - - - - - - -
reserve
1.
Appropriati - - - - - - - - - - -
on during
the year
2.
Utilization - - - - - - - - - - -
during the
year
(VI) Others - -
- - - - 13,584,288.6 - - - - - 13,584,288.66
6
IV.
Balance at 1,661,161,06 - - - 5,514,740,56 792,321,152 - - 830,580,530.5 4,008,768,28 11,222,929,29
the end of 1.00 5.56 .16 0 6.10 1.00
the year
Legal representative: Xue Hua Person in charge of accounting function: Yang Shaolin Person in charge of accounting department: Yang
Shaolin
163
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Notes to the Financial Statements
I. Company Profile
Guangdong 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 limited
company registered in Guangdong Province, listed on the Shenzhen Stock Exchange in November 2009
with business license registration No.914400007578948436. The Company is headquartered in Block
2#701, Wanbo Fourth Road No. 42, Nancun Town, Panyu District, Guangzhou, Guangdong.
The Company and its subsidiaries (hereinafter referred to as the “Group”) operate in the feed industry, and
the main products include aquatic and livestock feed, high-quality aquatic animal seedlings, animal health
products, biological products, pig breeding and so on, covering all business chain such as research and
development, design, production, sales and service of various products.
The financial statements and notes have been approved by the 19th meeting of the sixth Board of Directors
of the Company on April 19, 2024.
II. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business
Enterprises and corresponding application guidance, interpretations and other related provisions issued by
the Ministry of Finance (collectively, "Accounting Standards for Business Enterprises"). In addition, the
Group also disclosed the relevant financial information in accordance with the Explanatory Announcement
No. 15 on Information Disclosure for Companies Offering Their Securities to the Public—General
Requirements for Financial Reporting (2023 version) issued by the China Securities Regulatory
Commission.
The financial statements have been prepared on a going concern basis.
The Group adopts the accrual basis of accounting. The financial statements are prepared under the
historical cost except for certain financial instruments. Non-current assets held-for-sale are measured at the
lower of the amount of the fair value less estimated costs and the book value when it is recognized as held-
for-sale. If the assets were impaired, a provision for impairment shall be provided in accordance with the
relevant regulations.
III. Significant accounting policies and accounting estimates
The Group determines fixed assets appreciation and revenue recognition policy according to the
characteristics of its production and operation and relevant requirements in Accounting Standards for
Business Enterprises. For more information on the accounting policies, please refer to Note III. 17 and
Note III. 29.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of Accounting Standards
for Business Enterprises. These financial statements have truly and completely presented the consolidated
financial position and financial position of the Company as at December 31, 2023 and their operating
results and cash flows for the year ended December 31, 2023.
2. Accounting Period
The accounting period of the Group is from 1 January to 31 December.
3. Operating Cycle
The operating cycle of the Group is 12 months.
4. Functional currency
The Company and its domestic subsidiaries use Rimini (“RMB”) as their functional currency. The overseas
subsidiaries of the Company determine their functional currency according to the primary economic
environment where they 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 primary
economic 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 forIndividual provision value over 5% of total bad debt
impairment individually provision for the corresponding category
Significant provision for bad and doubtful debtsIndividual recoveries or reversals over 5% of total original
recovered or reversed in current period value of the corresponding accounts receivable category
Significant accounts receivable write- off inIndividual write-offs over 5% of total original value of the
current period corresponding accounts receivable category
164
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Items Significant criteria
Significant prepayments, accounts payable,
advances from customers, contract liabilities,Individual transaction account aged over 1 year over 5% of
dividends receivable, other payables aged over 1the total original value of the corresponding category
year
Individual project value over 5% of the Company's total
Significant construction in progress
construction in progress
Net assets of the non-wholly owned subsidiary over 4% of
Significant non-wholly-owned subsidiaries
the Group's net assets
Individual long-term equity investment in the entity over 5%
of the Group's net assets, or investment gains or losses under
Significant joint ventures and associates
the equity method of long-term equity investment over 5% of
the Group's consolidated net profit
Significant capitalized research and developmentThe value to be capitalised for the individual R&D project
projects over 5% of the Group's total intangible assets
Individual investment activities cash flows over 10% of total
Significant investment activities
cash inflows or outflows from investing 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 liabilities
assumed are measured based on their carrying amounts in the consolidated financial statements of the
ultimate controlling party at the combination date. The difference between the carrying amount of the net
assets acquired and the consideration paid for the combination is adjusted against share premium in the
capital reserve, with any excess adjusted against retained earnings.
For a business combination involving entities under common control achieved in stages that involves
multiple exchange transactions
In the consolidated financial statements, the assets acquired and liabilities assumed are measured based on
their carrying amounts in the consolidated financial statements of the ultimate controlling party at the
combination date; the difference between the sum of the carrying amount of the investment before
combination and the carrying amount of new consideration paid at the combination date, and the carrying
amount of the net asset acquired in the combination, is adjusted against capital reserve, with any excess
adjusted against retained earnings. The long-term equity investment of the combining party before
acquiring the control, the profit or loss, other comprehensive income and other changes in the owner’s
equity recognized from the later of the initial acquisition date of the equity and the date when the
combining party and the combined party under common ultimate control party to the combination date,
shall be offset against the opening retained 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 the
fair values of the assets paid, the liabilities incurred or assumed and the equity instruments issued by the
acquirer in exchange for control over the acquiree on the acquisition date. At the acquisition date, the
acquired 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
net assets, the difference is recognized as goodwill, and subsequently measured based on its cost less
accumulated impairment provisions. Where the combination cost is less than the acquirer’s interest in the
fair value of the acquiree’s identifiable net assets, the difference is recognized in profit or loss for the
current period after reassessment.
The contingent consideration involved is included in the combination cost at fair value at the date of
purchase, and if new or further evidence of circumstances existing at the purchase date emerges within 12
months, the contingent consideration and goodwill are adjusted accordingly.
For a business combination involving enterprises not under common control and achieved in stages that
involves multiple exchange transactions
In the consolidated financial statements, the cost of business combination is the total of the consideration
paid at the acquisition date and the fair value of equity investment of the acquiree held prior to the
acquisition date. The cost of equity investment of the acquiree held prior to the acquisition date shall be re-
165
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
measured at the fair value at the acquisition date, the difference between the fair value and par value shall
be recognized as profit or loss for the current period. Other comprehensive income and changes of other
owners’ equity from the equity interest held in the acquiree prior to the acquisition date shall be transferred
to profit or loss for the current period, except for other comprehensive income arising from the movement
of net liabilities or assets in the investee’s re-measurement of defined benefit plan.
(3) Transaction costs for business combination
The overhead for the business combination, including the expenses for audit, legal services, valuation
advisory, and other administrative expenses, are recorded in profit or loss for the current period when
incurred. The transaction costs of equity or debt securities issued as the considerations of business
combination are included in the initial recognition amount of the equity or debt securities.
7. The criterial of Control and the method of preparation of the consolidated financial statements
(1) The criterial of control
The scope of consolidated financial statements is based on control. Control exists when the Company has
power over the investee; exposure, or rights to variable returns from its involvement with the investee and
has the ability to affect its returns through its power over the investee. A subsidiary is an entity that is
controlled by the Company (including enterprise, a portion of an investee as a deemed separate component,
and structured entity controlled by the enterprise).
In determining whether to include a structured entity in the scope of consolidation, the Company assesses
whether 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, the
identification of the types of variable returns, and whether it assumes some or all of the variability of the
returns 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 of
the Company and its subsidiaries and other relevant information. When preparing consolidated financial
statements, the accounting policies and accounting periods of the subsidiaries should be consistent with the
Company, 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 combination
involving enterprises under common control, the financial statements of the subsidiary or business are
included in the consolidated financial statements as if the combination had occurred at the date that the
ultimate controlling party first obtained control.
Where a subsidiary or business was acquired during the reporting period, through a business combination
involving enterprises not under common control, the identifiable assets and liabilities of the acquired
subsidiaries 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-controlling
interests and presented separately in the consolidated balance sheet within shareholders’ equity. The portion
of net profit or loss of subsidiaries for the period attributable to non-controlling interests is presented
separately in the consolidated income statement below the “net profit” line item. When the amount of loss
for the 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, the excess is still allocated
against 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 purchase
date or merger date according to the newly increased shareholding ratio, and the difference between the
disposal price obtained as a result of partial disposal of the equity investment in the subsidiary without loss
of control and the share of net assets continuously calculated since the purchase date or the merger date
corresponding to the disposal of the long-term equity investment of the subsidiary, should be adjusted to
the 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 other
reasons, the remaining part of the equity investment is re-measured at fair value at the date when the
control is lost. A gain or loss is recognised in the current period and is calculated by the aggregate of
consideration received in disposal and the fair value of remaining part of the equity investment deducting
the share of net assets in proportion to previous shareholding percentage in the former subsidiary since
acquisition date and the goodwill.
166
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Other comprehensive income related to the equity investment of the former subsidiary shall be accounted
for on the same basis as the direct disposal of the relevant assets or liabilities of the former subsidiary at the
time of loss of control, and other changes in owner's equity related to the former subsidiary under the
equity method of accounting shall be transferred to current profit or loss 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 stages
until the control is lost as a single transaction when the terms, conditions and economic impact of each
transaction 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 justified when considered on its own, but it is economically justified
when considered together with other transactions.
In the consolidated financial statements, please refer to the above “disposal of subsidiaries” for the
measurement of remaining equity and accounting treatment for profit or loss of disposing equity investment
by stages until the control is lost. The difference between each consideration received and the share of the
subsidiary’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 until the control is
lost.
② is recognized in capital reserve (share premium) as an equity transaction if the arrangements are not
regarded as a single transaction. Capital reserve is not transferred to profit or loss for the 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 Group
classifies 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, and
obligations for the liabilities, relating to the arrangement.
The Group recognizes the following items relating to its interest in a joint operation, and account for them
in 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; and
E. 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 the
arrangement.
The Group adopts equity method under long-term equity investment in accounting for its investment in
joint venture.
9. Cash and cash equivalents
Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents
include short-term, highly liquid investments that are readily convertible to known amounts of cash and are
subject to an insignificant risk of change in value.
10. Foreign currency transactions and translation of foreign currency financial statements
(1) Foreign currency transactions
Foreign currency transactions are translated to the functional currency of the Group at the spot exchange
rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at
the balance sheet date. The resulting exchange differences between the spot exchange rate on balance sheet
date and the spot exchange rate on initial recognition or on the previous balance sheet date are recognised
in profit or loss. Non-monetary items that are measured at historical cost in foreign currencies are translated
to Renminbi using the exchange rate at the transaction date. Non-monetary items that are measured at fair
value in foreign currencies are translated using the exchange rate at the date the fair value is determined.
The resulting exchange differences are recognised in profit or loss or other comprehensive income
according to the nature of non-monetary items.
167
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(2) Translation of foreign currency financial statements
When translating the foreign currency financial statements of overseas subsidiaries, assets and liabilities of
foreign operation are translated to Renminbi at the spot exchange rate at the balance sheet date. Equity
items, excluding “retained earnings”, are translated to Renminbi at the spot exchange rates at the
transaction dates.
Income and expenses of foreign operation are translated to Renminbi at the rates determined under a
systematic and rational method that approximate the spot exchange rates at the transaction dates.
Cash flow statement of foreign operation is translated to Renminbi at the rates determined under a
systematic and rational method that approximate the spot exchange rates at the cash flow occurrence dates.
Effect of foreign exchange rate changes on cash and cash equivalents is presented separately as “Effect of
foreign exchange rate changes on cash and cash equivalents” in the cash flow statement.
The resulting translation differences are recognised in other comprehensive income in shareholders’ equity
of balance sheet.
The translation differences accumulated in shareholders’ equity with respect to a foreign operation are
transferred to profit or loss in the period when the foreign operation is disposed.
11. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial
liability 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 contractual
provisions 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 with
criteria set out below in “Transfer of financial assets”.
A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is
discharged or cancelled or expires. If the Group (as a debtor) makes an agreement with the creditor to
replace the current financial liability with assuming a new financial liability, and contractual provisions are
different in substance, 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 the
transaction date.
(2) Classification and measurement of financial assets
The Group classifies financial assets as measured at amortized cost, fair value through other comprehensive
income or fair value through profit or loss at initial recognition on the basis of both the entity’s business
model 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 value
through profit or loss, the related transaction costs are directly recorded in current profit or loss; for other
types of financial assets, related transaction costs are included in the initial recognition amount. For
receivables arising from the sale of products or the provision of services that do not contain or take into
account significant financing components, the amount of consideration that the Company is expected to be
entitled to collect shall be the initial recognition amount.
Financial assets measured at amortized cost
The Group classifies the financial assets that meet the following conditions and are not designated as
measured 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 solely
payments 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 of
such financial assets. Gains or losses arising from financial assets that are measured at amortized cost and
are not part of any hedging relationship shall be recorded in the current profit or loss when the financial
assets are derecognized, amortized according to the effective interest method or impaired.
Financial assets measured at fair value through other comprehensive income
The Group classifies the financial assets that simultaneously meet the following conditions and are not
specified as measured at fair value through profit or loss as financial assets measured at fair value through
other comprehensive income:
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The Group's business model of managing the financial asset aims at both collecting contractual cash
flows and selling the financial assets.
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After the initial recognition, this type of financial assets is subsequently measured at fair value. The interest,
loss allowance or gain and exchange loss or gain calculated using the effective interest rate method are
included in the current profit or loss, while other gains or losses are included in other comprehensive
income. When derecognized, the accumulated gains or losses previously recorded in other comprehensive
income 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 loss
In addition to the above financial assets measured at amortized cost and measured at fair value through
other comprehensive income, the Group classifies all other financial assets as financial assets measured at
fair 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 have
been measured at amortized cost or measured at fair value through other comprehensive income as
financial 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 the
gains or losses (including interest and dividend income) generated are recorded into the current profit or
loss, unless the financial asset is part of the hedging relationship.
However, for non-trading equity instrument investment, the Group irrevocably designates it as a financial
asset measured at fair value through other comprehensive income at initial recognition. The designation is
made on a single investment basis and the relevant investments meet the definition of an equity instrument
from issuer's perspective.
After the initial recognition, this kind of financial assets are subsequently measured at fair value. Qualified
dividend income is included in the profit or loss, other gains or losses and changes in fair value are
included in other comprehensive income. When derecognized, the accumulated gains or losses previously
recorded 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 to
generate cash flows. The business model determines whether the cash flow from the financial assets under
management of the Group is derived from the receipt of contractual cash flows, the sale of financial assets
or a combination of both. The Group determines its business model for managing financial assets on the
basis of objective facts and the specific business objectives for the management of financial assets
determined by key management personnel.
The Group assesses the contractual cash flow characteristics of financial assets to determine whether the
contractual cash flows generated by the relevant financial assets on specified dates are solely payments of
principal and interest on the principal amount outstanding. Principal refers to the fair value of financial
assets at initial recognition. Interest includes consideration for the time value of money, the credit risk
associated with the amount of principal outstanding over a given period, and other basic lending risks and
costs, as well as a profit margin. In addition, the Group assesses contractual terms that may cause a change
in the time distribution or amount of the contractual cash flows of financial assets to determine whether
they meet the requirements of the above contractual cash flow characteristics.
Only when the Group changes the business model of managing financial assets, all affected related
financial assets shall be reclassified on the first day of the first reporting period after the change of the
business 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 liabilities
measured at fair value through profit or loss, and financial liabilities measured at amortized cost. For
financial liabilities that are not classified as measured at fair value through profit or loss, relevant
transaction costs are included in their initial recognized amounts.
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading
and financial liabilities designated at the time of initial recognition as measured at fair value through profit
or 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 expenses
related to such financial liabilities shall be recorded into current profit or loss.
Financial liabilities measured at amortized cost
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For other financial liabilities, the effective interest rate method shall be adopted, the subsequent
measurement shall be made at the amortized cost, and the gains or losses arising from derecognition or
amortization shall be recorded into current profit or loss.
Financial guarantee contract
Financial guarantee contracts do not belong to financial liabilities measured at fair value through profit or
loss. They are measured at fair value at initial recognition and are subsequently measured at the higher of
the amount of the loss allowance determined in accordance with the expected credit loss model and the
amount initially recognized less the cumulative amortisation.
The distinction between financial liabilities and equity instruments
Financial 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 under
potentially adverse conditions.
③ A non-derivative contract that has to be settled with or can be settled with the firm's own equity
instruments 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 instruments
in the future, except for a derivative contract in which a fixed number of its own equity instruments are to
be 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 assets
after all liabilities have been deducted.
If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other
financial 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 in
the future, consideration needs to be given to whether the Group's own equity instruments used to settle the
instrument is to be used as a substitute for cash or other financial assets, or to give the holder of the
instrument the remaining interest in the issuer's assets after deduction of all liabilities. If it is the former, the
instrument is a financial liability of the Group; if it is the latter, the instrument is an equity instrument of the
Group.
(4) Derivative financial instruments and embedded derivative instruments
The Group's derivative financial instruments include forward foreign exchange contracts, currency
exchange rate swap contracts, interest rate swap contracts and foreign exchange options contracts, etc. .The
initial measurement is based on the fair value of the date of signing the derivative transaction contract, and
the subsequent measurement is based on its fair value. A derivative with a positive fair value is recognised
as an asset; a negative fair value is recognized as a liability. Any gains or losses resulting from changes in
fair value that do not conform to the provisions of hedge accounting shall be directly recorded into the
current profit or loss.
For a hybrid instrument containing an embedded derivative instrument, if the host is a financial asset, the
hybrid instrument as a whole shall be subject to the relevant provisions on the classification of financial
assets. If the host is not a financial asset, the embedded derivative instrument shall be separated from the
hybrid instrument and accounted for as a separate derivative instrument if all of the following conditions
are met: the hybrid instrument is not measured at fair value through profit or loss; the economic
characteristics and risks of the embedded derivative are not closely related to the economic characteristics
and risks of the host; a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative. If it is not possible to measure the embedded derivative separately at the time of
acquisition or on the subsequent balance sheet date, the hybrid instrument as a whole is designated as a
financial 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.0。
(6) Impairment of financial assets
On the basis of expected credit losses, the Group conducts impairment accounting treatment for the
following items and recognises the allowance:
Financial assets measured at amortized cost;
Receivables and debt investments measured at fair value and accounted for in other comprehensive
income;
Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;
Lease receivables;
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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 by
continuing involvement in transferred financial assets).
Measurement of expected credit losses
The term "expected credit loss" refers to the weighted average of the credit loss of a financial instrument
weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows that
are due to the Group in accordance with the contract and all the cash flows that the Group expects to
receive, discounted at 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 the
cash flows receivable under the contract and the cash flows expected to be received and recognizes the
expected 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 default
occurring as the weights.
The Group separately measures the expected credit losses of financial instruments at different stages. If the
credit risk of the financial instrument has not increased significantly since the initial recognition, the
financial instrument is in the first stage and the Group shall measure the loss allowance at an amount equal
to 12month expected credit losses; if the credit risk of the financial instrument has increased significantly
since the initial recognition but no credit losses have occurred, the financial instrument is in the second
stage 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 and
the 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 credit
risk has not increased significantly since the initial recognition, and measures the loss allowance at an
amount equal to 12month expected credit losses.
The term "lifetime expected credit losses" refers to the expected credit losses resulting from all possible
events of default during the entire expected life of a financial instrument. The expected credit losses within
the next 12 months refer to the expected credit loss caused by the default event of the financial instrument
that may occur within 12 months after the balance sheet date (or the expected duration of the financial
instrument if the expected duration of the financial instrument is less than 12 months) and is part of lifetime
expected credit 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. For
financial instruments in the third stage, the interest income is calculated on the basis of the amortized cost
of the Book value less the impairment provision and the effective interest rate.
For bills receivable, accounts receivable, financing receivables, other receivables, contract assets, etc., if
the credit risk characteristics of a customer are significantly different from those of other customers in the
group, or the credit risk characteristics of such customer are significantly changed, the Group shall assessed
for impairment individually for such receivables. In addition to the receivables assessed for impairment
individually, the Group divides the receivables into groups according to the credit risk characteristics and
calculates the loss allowance on the basis of the group.
Bills receivable, accounts receivable and contract assets
For bills receivable, accounts receivable and contract assets, regardless of whether there is a material
financing component, the Group always measures its loss allowance at an amount equal to lifetime
expected credit losses.
When an individual financial asset or contract asset cannot assess the information of expected credit loss at
a reasonable cost, the Company divides the bills receivable, accounts receivable and contract assets into
groups according to the credit risk characteristics, calculates the expected credit losses based on the groups
which 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 credit
B. Accounts receivable
Group 1 of accounts receivable: Accounts receivable due from feed related customers
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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 customers
For the bills receivable divided into groups, the Group calculates the expected credit loss through default
risk exposure and the lifetime expected credit loss rate by referring to the historical credit 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 and
combines the current situation with the forecast of the future economic situation to compile a comparison
table between the age of receivables/overdue days and the lifetime expected credit loss rate and to calculate
the expected credit loss. The age of accounts receivable is calculated from the date of recognition/days
overdue is calculated from the expiration date of credit period.
Other receivables
The Group divides other receivables into several groups according to the credit risk characteristics, and
calculates 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 security and provident 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: Others
For other receivables divided into groups, the Group calculates the expected credit losses by default risk
exposure and the expected credit losses rate over the next 12 months or the entire duration. For other
receivables grouped according to age, the age is calculated from the date of recognition.
Loans and advances to customers
For loans and advances to customer, the Group calculates the expected credit loss through the exposure at
default and the expected credit loss rate within the next 12 months or the entire duration.
Long-term receivables
The 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 deposit
receivables into several groups. The expected credit loss is calculated on the basis of the groups which are
determined 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 customers
B. Other long-term receivables
Group 1 of long-term receivables: Security deposit receivables
Group 2 of long-term receivables: Other receivables
For security deposit receivables, the Group refers to historic credit losses experience, combined with the
current situation and forecast for the future economic situation, to calculate the expected credit losses by
default risk exposure and the lifetime expected credit loss rate.
For other receivables and long-term receivables in addition to security deposit receivables, the expected
credit losses are calculated by default risk exposure and the expected credit loss rate within the next 12
months or the entire duration.
Debt investment and other debt investment
For debt investment and other debt investment, the Group calculates the expected credit loss based on the
default risk exposure and the expected credit loss rate within the next 12 months or the entire duration
according to the nature of the investment and the various types of counterparties and risk exposures.
Assessment of a significant increase in credit risk
By comparing the risk of default of financial instruments on the balance sheet date with the risk of default
on the initial recognition date, the Group determines the relative change of default risk within the expected
duration of financial instruments, so as to evaluate whether the credit risk of financial instruments has
significantly increased since the initial recognition.
In determining whether credit risk has increased significantly since the initial recognition, the Group
considers reasonable and supportable information, including forward-looking information that can be
obtained without unnecessary additional cost or effort. Information considered by the Group includes:
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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 increases
significantly on the basis of individual financial instruments or a group of financial instruments. When
assessing on the basis of a group of financial instruments, the Group may classify financial instruments
based on common credit risk characteristics, such as overdue information and credit risk rating.
Credit-impaired financial assets
On the balance sheet date, the Group evaluates whether credit impairment has occurred in financial assets
measured at amortized cost and debt investments measured at fair value through other comprehensive
income. When one or more events which have an adverse effect on the expected future cash flows of a
financial asset occur, the financial asset becomes a credit-impaired financial asset. Evidence of credit
impairment 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, for economic or contractual considerations relating to the debtor's financial difficulties,
gives concessions that the debtor would not have made under any other circumstances;
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 losses
In order to reflect the change of the credit risk of financial instruments since the initial recognition, the
Group re-measures the expected credit losses on each balance sheet date, and the increase or recovered
amount of the loss allowance thus formed shall be recorded into the current profit or loss as an loss
allowance or gain. For a financial asset measured at amortized cost, the loss allowance shall offset the
carrying amount of the financial asset as stated in the balance sheet; for the debt investment measured at
fair value through other comprehensive income, the Group recognizes its loss allowance in other
comprehensive income and does not offset the carrying amount of the financial asset.
Write-off
If the Group no longer reasonably expects that the contractual cash flows of a financial asset can be
recovered in its entirety or a portion thereof, the carrying amount of the financial asset shall be directly
written-off. Such a write-off constitutes derecognition of the relevant financial asset. This usually occurs
when the Group determines that the debtor does not have assets or sources of income that generate
sufficient cash flows to repay the amount to be written-off. However, in accordance with the Group's
procedures for recovering amounts due, the financial assets that have been written-off may still be affected
by the execution activities.
If a financial asset that has been written-off is recovered later, a reversal of loss allowance shall be recorded
in 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 ownership
of the financial asset to the transferee. A financial asset is not derecognized if the Group retains
substantially 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 financial
asset, the accounting treatments are as following: if control over the financial assets is surrendered, the
Group derecognizes the financial assets and recognize any assets and liabilities arose; if the Group retains
the control of the financial assets, financial assets to the extent of the continuing involvement in the
transferred 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 the
legal rights is enforceable, and the Group plans to settle by net amount or realize the financial assets and
pay off the financial liabilities, the amount after being offset is presented in the balance sheet. Otherwise,
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financial assets and financial liabilities are presented separately in the balance Sheet and not allowed to
offset 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 orderly
transaction between market participants at the measurement date.
The Group measures related assets or liabilities at fair value assuming the assets or liabilities are exchanged
in an orderly transaction in the principal market; in the absence of a principal market, assuming the assets
or liabilities are exchanged in an orderly transaction in the most advantageous market. Principal market (or
the most advantageous market) is the market that the Group can normally enter into a transaction on
measurement date. The Group adopts the presumptions that would be used by market participants in
achieving 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 active
markets 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 generate
economic benefits using the asset in its best way or by selling it to another market participant that would
best use the asset.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs, and using
unobservable 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 are
determined according to the significant lowest level input to the entire measurement: Level 1 inputs are
quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at
the measurement date; Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the assets or liabilities, either directly or indirectly; Level 3 inputs are unobservable inputs
for the assets or liabilities.
At the balance sheet date, the Group revalues assets and liabilities being measured at fair value
continuously in the financial statements to determine whether to change the levels of fair value
measurement.
13. Inventories
(1) Classification
Inventories include raw materials, finished goods, work in progress, consumptive biological assets and
consigned processing material, 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 and
delivery, these inventories shall be carried forward at batch cost. Otherwise, inventories are calculated by
using weighted average method.
(3) Basis for determining the net realisable value and method for provision for obsolete inventories
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs
of completion and the estimated costs necessary to make the sale and relevant taxes. The net realisable
value is measured based on the verified evidences and considerations for the purpose of holding inventories
and the effect of post balance sheet events.
The Group generally makes inventory provision on the basis of individual inventory items. For inventories
of 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, inventory
provision 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 sale
The Group classifies a non-current asset or disposal group as held for sale when the carrying amount of the
non-current asset or disposal group will be recovered through a sale transaction (including an exchange
transaction 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 the
fair value model, biological assets measured at fair value less costs to sell, assets arising from employee
benefits, financial assets, deferred tax assets and contractual rights under insurance contracts.
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The disposal group is a group of assets to be disposed of, by sale or otherwise, together as a whole in a
single transaction, and liabilities directly associated with those assets that will be transferred in the
transaction. 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 highly
probable to occur, that is, the Group has made a resolution on a sale plan and entered into a legally binding
purchase agreement with other parties. The sale is expected to be completed within one year. The Group
that is committed to a sale plan involving loss of control of a subsidiary classifies all the investment in that
subsidiary as held for sale in its separate financial statements, and classifies all the assets and liabilities of
that subsidiary as held for sale in its consolidated financial statements, when the classification criteria for
held for sale are met, regardless of whether the Group retains a non-controlling interest in its former
subsidiary after the sale.
Non-current assets or disposal groups held for sale are initially and subsequently measured at the lower of
carrying 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 a
disposal group firstly reduces the carrying amount of goodwill allocated to the disposal group, and then
reduces the carrying amount of other non-current assets pro rata on the basis of the carrying amount of each
non-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 not
in excess of the cumulative loss allowance that has been recognised after classified as held for sale. The
reduced 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 or
while it is part of a disposal group classified as held for sale. Interest and other expenses attributable to the
liabilities of a disposal group classified as held for sale continue to be recognised. If an investment or a part
of investment in an associate or a joint venture is classified as held for sale, equity method is not used for
the part classified as held for sale, while equity method is used for the rest part (the part not classified as
held for sale) continually. When the Group does not have material impact on an associate or a joint venture
due 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
adjusted for 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 or
when the operation meets the criteria to be classified as held for sale if it is separately identifiable and
satisfies 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 separate
geographical 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 group
classified as held for sale as “Assets held for sale” in balance sheet. The liabilities of a disposal group
classified as held for sale is presented as “Liabilities held for sale” in balance sheet.
The Group presents profit or loss from discontinued operations separately from profit or loss from
continuing operations in income statement. Loss allowance and reversal amount and any disposal gain or
loss of a non-current asset or disposal group classified as held for sale that does not meet the definition of a
discontinued operation is included in profit or loss from continuing operations. Any gain or loss from
continuing operation of discontinued operations, including loss allowance and reversal amount, and
disposal 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 of
discontinued 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 continuing
operations and profit or loss from discontinued operations are separately presented in the income statement
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for the current period. If the Group ceases to classify a discontinued operation as held for sale, the
information previously presented in discontinued operations is reclassified and included in income from
continuing operations for all periods presented.
15. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries and equity investments in joint
ventures 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 involving
enterprises under common control is the Group’s share of the carrying amount of the subsidiary’s equity in
the 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 common
control, the initial cost is the combination cost.
A long-term equity investment acquired other than through a business combination: A long-term equity
investment acquired other than through a business combination is initially recognised at the amount of cash
paid if the Group acquires the investment by cash, or at the fair value of the equity securities issued if an
investment 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 a
joint 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 dividends
or profit distributions declared but not yet distributed that have been included in the price or consideration
paid in obtaining the investments, the Group recognises its share of the cash dividends or profit
distributions 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 of
a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable net
assets at the date of acquisition, the investment is initially recognised at cost. Where the initial investment
cost is less than the Group’s interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at the investor’s share of the fair value of the investee’s
identifiable 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 other
comprehensive income as investment income or losses and other comprehensive income respectively, and
adjusts the carrying amount of the investment accordingly. Once the investee declares any cash dividends
or profit distributions, the carrying amount of the investment is reduced by the amount attributable to the
Group. Changes in the Group’s share of the investee’s owners’ equity, other than those arising from the
investee’s net profit or loss, other comprehensive income or profit distribution (referred to as “other
changes in owners’ equity”), is recognised directly in the Group’s equity, and the carrying amount of the
investment is adjusted accordingly. In calculating its share of the investee’s net profits or losses, other
comprehensive income and other changes in owners’ equity, the Group recognises investment income and
other comprehensive income after making appropriate adjustments to align the accounting policies or
accounting periods with those of the Group based on the fair value of the investee’s identifiable net assets
at the date of acquisition.
When the Group becomes capable of exercising joint control or significant influence (but not control) over
an 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 the
equity method. If the original equity is classified as non-trading equity instrument investment measured at
fair value and its changes are included in other comprehensive income, the relevant accumulative changes
in fair value originally included in other comprehensive income will be transferred to retained earnings
when changed to equity method accounting.
When the Group can no longer exercise joint control of or significant influence over an investee due to
partial 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 Measurement
of Financial Instruments, and the difference between the fair value and the carrying amount of the
remaining equity investment shall be charged to profit or loss for the current period at the date of the loss of
joint control or significant influence. Any other comprehensive income previously recognised under the
equity method shall be accounted for on the same basis as would have been required if the Group had
directly disposed of the related assets or liabilities for the current period upon discontinuation of the equity
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method. Other movement of owner’s equity related to original equity investment is transferred to profit or
loss for the current period.
When the Group can no longer exercise control over an investee due to partial disposal of the equity
investment or other reasons, and the remaining equity after disposal can exercise joint control of or
significant influence over an investee, the remaining equity is adjusted as using equity method from
acquisition. When the remaining equity can no longer exercise joint control of or significant influence over
an investee, the remaining equity investment shall be accounted for using Accounting Standard for
Business Enterprises No. 22-Recognition and Measurement of Financial Instruments, and the difference
between the fair value and the carrying amount of the remaining equity investment shall be charged to
profit 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 other
investors, and the Group can exercise joint control of or significant influence over an investee, the Group
recognizes its share of the investee’s new added net assets using new shareholding percentage. The
difference between its new share of the investee’s new added net assets and its decreased shareholding
percentage of the original investment is recognized in profit or loss. And the Group adjusts to the equity
method using the new shareholding percentage as if it uses the equity method since it obtains the
investment.
Unrealised profits and losses resulting from transactions between the Group and its associates or joint
ventures are eliminated to the extent of the Group’s interest in the associates or joint ventures. Unrealised
losses resulting from transactions between the Group and its associates or joint ventures are eliminated in
the same way 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 investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. When
assessing whether the Group can exercise joint control over an investee, the Group first considers whether
no single participant party is in a position to control the investee’s related activities unilaterally, and then
considers whether strategic decisions relating to the investee’s related activities require the unanimous
consent of all participant parties that sharing of control. All the parties, or a group of the parties, control the
arrangement collectively when they must act together to direct the relevant activities. When more than one
combination of the parties can control an arrangement collectively, joint control does not exist. A party that
holds 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 an
investee but does not have control or joint control over those policies. When determining whether the
Group 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 currently
exercisable or convertible shall be considered.
When the Group, directly or indirectly through subsidiaries, owns 20% of the investee (including 20%) or
more but less than 50% of the voting shares, it has significant influence over the investee unless there is
clear evidence to show that in this case the Group cannot participate in the production and business
decisions of the investee, and cannot form a significant influence. When the Group owns less than 20% of
the voting shares, generally it does not have significant influence over the investee, unless there is clear
evidence to show that in this case the Group can participate in the production and business decisions of the
investee 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 venture
that 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 using
the equity method.
When an equity investment in an associate or a joint venture previously classified as held for sale no longer
meets the criteria to be so classified, it is accounted for using the equity method retrospectively as from the
date 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 method
of asset impairment.
16. Investment property
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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 and provided for to
transfer after appreciation and leased building and construction.
Investment properties are initially measured at acquisition cost, and depreciated or amortized using the
same 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 are
determined as the difference among the net disposal proceeds, the carrying amount of the item, related
taxes 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 of
services, 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 its
cost 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 economic
benefits related to them are likely to flow into the Group and their costs can be measured reliably; the daily
repair expenses of fixed assets that do not meet the criteria for subsequent expenditure of fixed assets
capitalization shall be included in the current profit or loss or the cost of relevant assets according to the
beneficiary 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, unless
the fixed asset is classified as held for sale. Not considering impairment provision, the estimated useful
lives, residual value rates and depreciation rates of each class of fixed assets are as follows:
Estimated useful life
Category Residual value rate % Depreciation rate %
(years)
Plant and buildings 5-40 (Note) 5.00 19.00-2.38
Machinery and
3-12 5.00 31.67-7.92
equipment
Motor vehicles 5.00 5.00 19.00
Electronic equipment 3-5 5.00 31.67-19.00
Others 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 and Egypt. No depreciation is
recognizes for these lands because their estimated useful lives is uncertain. The Group tests for
impairment on these lands every year.
For impaired fixed assets, depreciation rate is calculated based on the carrying amounts after deducting the
provision 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 at least at each year-end.
The Group adjusts the useful lives of fixed assets if their expected useful lives are different with the
original estimates and adjusts the estimated net residual values if they are different from the original
estimates.
(5) Disposal of fixed assets
When the fixed assets are disposed, or no economic benefit is expected to be generated through the use or
disposal, 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 into
the current profit or loss.
18. Construction in progress
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Construction in progress is recognized based on the actual construction cost, including all expenditures
incurred for construction Items, capitalised borrowing costs and any other costs directly attributable to
bringing 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 qualifying
asset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit or
loss as incurred. The capitalisation of borrowing costs shall commence only when the following criteria are
met:
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 becomes
ready for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss for the
current period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a
fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition
or construction is resumed.
(3) Capitalisation rate of borrowing costs and calculation basis of capitalised amount
For interest expense actually incurred on specific borrowings, the eligible capitalised amount is the net
amount of the borrowing costs after deducting any investment income earned before some or all of the
funds are used for expenditures on the qualifying asset. To the extent that the Group borrows funds
generally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine the
amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures on
that asset, the capitalisation rate shall be the weighted average of the borrowing costs applicable to the
borrowings of the Group that are outstanding during the period, other than borrowings specifically for the
purpose of obtaining a qualifying asset.
In the capitalisation period, exchange differences of specific borrowings in foreign currency shall be
capitalised; exchange differences of general borrowings in foreign currency is recognised in profit or loss
for 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 be
recognized 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 the
entity;
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 in
the 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 expenditure
incurred that can directly attributable to the asset before the asset is sold or shipped, including capitalized
borrowing costs. Subsequent expenditures after harvest such as management, protection and feeding
expenses 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 on
the carrying amount using the weighted average method.
② Productive biological assets
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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 initially
measured at cost. The cost of productive biological asset by self-growing or propagating is the necessary
expenditure directly attributable to the asset incurred before the asset reaches its intended production and
operation purpose, including capitalized borrowing costs.
The subsequent expenditures for managing, protecting and feeding the productive biological assets incurred
after crown closure or reaching its intended objective of production and operation is recognized in profit or
loss for the current period.
Productive biological assets are depreciated by straight-line method. Depreciation for each period is
calculated and recognized based on the estimated useful lives less residual value of each type of biological
assets.
At the end of each year, the Group reviews the useful lives, estimated net residual values and depreciation
methods of productive biological assets. If there is any change, it is treated as a change in accounting
estimates.
The proceeds on disposal of productive biological asset for the sales, inventory loss, dead or damage less
the 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, the
difference is recognized as the impairment provision and the corresponding impairment loss is recognized
in profit or loss for the current period. If the previous factors caused the decline in value of consumptive
biological asset have disappeared at the balance sheet date, the previously recognized provision for decline
in value of consumptive biological assets is reversed, to the extent of provision recognized in the past, the
reversal 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. An
intangible asset with a finite useful life is amortized by a method which can reflect the expected realization
of economic benefits related to the asset since the intangible asset is available for use. When the expected
realization 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 with
finite useful life. If there is any change, adjustment made to original estimates and it shall be treated as the
change of accounting estimate.
On the balance sheet date, an intangible asset shall be derecognized in profit or loss for the current period
when 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
Expenditure on an internal research and development project is classified into expenditure incurred during
the 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 and
commercially feasible; the Group intends to to complete the development; the intangible asset can generate
economic benefits, including there is evidence that the products produced using the intangible asset has a
market or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidence
that there is usage for the intangible asset; there is sufficient support in terms of technology, financial
resources and other resources in order to complete the development and use or sell the intangible asset; and
development costs can be measured reliably. Other development expenditure is recognised as an expense in
the period in which it is incurred.
Research and development projects of the Group will enter into the development phase when they meet the
above conditions, technical and economic feasibility research is finished and necessary approval of the
project 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
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The impairment of long-term equity investments in subsidiaries, associates and joint ventures, investment
properties measured by the cost model, fixed assets, construction in progress, productive biological assets
measured by the cost model, intangible assets, goodwill, etc. (excluding inventories, investment properties
measured by the fair value model, deferred tax assets and financial assets) are determined as follows:
At the balance sheet date, the Group assesses whether there is any indication of impairment. If any
indication exists, the Group will estimate the recoverable amount and test for impairment. For goodwill
arising from a business combination, intangible assets with indefinite useful life and intangible assets that
are not ready for use are tested for impairment annually, regardless of whether there is any indication of
impairment.
The recoverable amount of an asset is the higher of its fair value less disposal costs and the present value of
expected future cash flows. The Group estimates the recoverable amount based on each individual asset. If
it is impossible to estimate the recoverable amount of each individual asset, the Group determines the
recoverable amount for the asset group to which the asset belongs. An asset group is determined based on
whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets
or asset groups.
An impairment loss is recognized in profit or loss when the recoverable amount of an asset is less than its
carrying 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 combination
shall be allocated to the relevant asset groups by using a reasonable method from the date of acquisition. If
the carrying amount of goodwill is unable to be allocated to the asset group, it shall be allocated to the
relevant set of asset groups. Relevant asset group or set of asset groups is the asset group or group of asset
groups, that is expected to benefit from the synergies of the combination and not greater than the reportable
segment of the Group.
If any impairment indication exists in asset group or set of asset groups related to goodwill, the Group shall
perform 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 by
comparing its carrying amount and recoverable amount. If the recoverable amount is less than the carrying
amount, 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 method
within the benefit period. For long-term deferred expense that cannot bring benefit in future period, the
Group 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 for
service rendered by employees or for the termination of employment relationship. Employee benefits
include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits. Benefits provided to the Group’s spouse, children, dependents, family members of
deceased employees or other beneficiaries are also part of the employee benefits.
According to liquidity, employee benefits are presented as “employee benefits payable” and “long-term
employee 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 for
employees based on standard rate, work injury insurance and maternity insurance and other social
insurance and housing fund incurred and these are recognised as liabilities and corresponding costs in the
profit or loss.
(3) Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined
contribution plans are post-employment benefit plans which an entity pays a fixed amount of fee to an
independent fund and has no further payment obligation. Defined benefit plans are post-employment
benefit plans other than defined contribution plans.
Defined contribution plans
Defined contribution plans include basic pension insurance, unemployment insurance, etc.
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The contribution amount calculated according to the define contribution plan is recognized as a liability as
the employee provides services, with a corresponding charge to profit or loss or included in the cost of
assets where appropriate.
Defined benefit plans
For defined benefit plans, independent actuaries estimate the actuarial value at the balance sheet date to
determine the cost of welfare by using the projected unit credit method. The Group recognizes the
following 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 from
employee service in the current period. Past service cost is the increase or decrease in the present value of
the 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.
Item①and item②above should be recognized in profit or loss for the current period unless another
accounting standard requires or permits the inclusion of the employee benefit costs in the cost of assets.
Item③shall be recognized in other comprehensive income and shall not reclassified to profit or loss in a
subsequent period. On termination of defined benefit plans, other comprehensive income previously
recognized is transferred to retained earnings.
(4) Termination benefits
The Group provides for termination benefits to the employees and shall recognise an employee benefits
liability for termination benefits, with a corresponding charge to the profit or loss for the current period, at
the earlier of the following dates: When the Group cannot unilaterally withdraw the offer of the termination
benefits because of an employment termination plan or a redundancy proposal; or when the Group
recognises the costs or expenses relating to a restructuring that involves the payment of the termination
benefits.
When the Group implements an internal retirement plan, the economic compensation before the formal
retirement date is attributable to the termination benefits. The salaries and social insurance payment to be
paid for the early-retired employee are recognized as one-off expense in profit or loss for the current period
between the date when the employee stops rendering service and formal retirement. Economic
compensation 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 for
classifying as a defined contribution plan; those benefits shall be accounted for in accordance with the
above 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 the
movement of net liabilities or assets in re-measurement of defined defined benefit plan shall be recorded in
profit 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 are
satisfied:
(1) The Group has a present obligation;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation; and
(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 present
obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are
taken into account as a whole in reaching the best estimate. Where the effect of the time value of money is
material, provisions are determined by discounting the expected future cash flows. The Group reviews the
carrying amount of a provision at the balance sheet date and adjusts the carrying amount to the current best
estimate.
If all or part of the expenditure necessary for settling the provision is expected to be compensated by a third
party, the amount of compensation is separately recognized as an asset when it is basically certain to be
received. The recognized compensation amount shall not exceed the carrying amount of the provision.
27. Share-based Payment and Equity Instruments
(1) Types of share-based payment
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The Group's share-based payment is classified into equity-settled share-based payment and cash-settled
share-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 fair
value of the equity instrument shall be determined according to the quoted price in the active market. If an
active market does not exist, the fair value of the equity instrument shall be determined by using the option
pricing model. The Group considers the following factors when selecting the model: A) the exercise price
of the option; B) the validity period of the option; C) current price of underlying stock; D) expected
volatility of the stock price; E) expected dividend of the stock; F) risk-free interest rate within the validity
period 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 that
will ultimately vest based on the best estimate of the latest number of eligible employees and other
subsequent information. On vesting date, the number of expected vested equity instruments should be
agreed with the actual number vested.
(4) Accounting treatments for the implementation, modification and termination of share-based payment
plans
Equity-settled share-based payment is measured by the fair value of the equities instruments granted to
employees. As to an equity-settled share-based payment that the right may be exercised immediately after
the grant, the fair value of the equity instruments shall, on the date of the grant, be charged to the relevant
cost or expense and the capital reserves shall be adjusted accordingly. As to an equity-settled share-based
payment that the right cannot be exercised until the vesting period comes to an end or until the prescribed
performance conditions are met, then on each balance sheet date within the vesting period, the services
obtained 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 the
grant, and the capital reserves shall be adjusted accordingly. After the vesting date, the confirmed related
costs 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 the
mean of share or other equity instruments. As to a cash-settled share-based payment instruments that the
right may be exercised immediately after the grant, the fair value of the liability undertaken by the Group
shall, on the date of the grant, be charged to the relevant costs or expenses, and the liabilities shall be
increased accordingly. As to a cash-settled share-based payment that the right may not be exercised until
the vesting period comes to an end or until the specified performance conditions are met, on each balance
sheet date with in the vesting period, the services obtained in the current period shall, based on the best
estimate of the information about the vesting conditions, be charged to the relevant costs or expenses and
the corresponding liabilities at the fair value of the liability undertaken by the Group. On each balance
sheet 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 equity
instrument 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, the
increment of obtained services shall be recognized accordingly. The increase in the fair value of equity
instruments refers to the difference between the fair value of equity instruments before and after
modification on the modification date. If the modification decreases the fair value of equity instruments
granted or adopt other terms and conditions unfavorable to the employees, the accounting treatment for the
services obtained will continue, and be deemed that the change has never occurred unless the Group
cancelled some or all of the granted equity instruments.
If the granted equity instruments are canceled or settled within the vesting period (except that canceled due
to failure to meet the vesting conditions), the Group shall regard the canceling or settlement as acceleration
of the vest, and immediately recognize the amount supposed to be recognized within the residual vesting
period in the current profit and loss and capital reserves. If employees or other parties can choose to meet
the conditions of unfeasible rights but fail to meet them within the waiting period, the Group will take it as
the cancellation of the instrument for granting rights and interests.
28. Other Financial Instruments such as Preference Shares, Perpetual Bonds
(1) Distinction between financial liabilities and equity instruments
The Group classifies the financial instrument or its components as a financial asset, financial liabilities or
equity instruments at initial recognition, according to the contract terms of the financial instrument issued
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and its economic substance, not only in legal form, and in conjunction with the definition of financial assets,
financial liabilities and equity instruments.
(2) Accounting treatment for preference shares, perpetual bonds
The Group initially recognizes and measures financial instrument in accordance with the standards of
financial instrument. On the basis of the category of financial instrument issued, interest is accrued or
dividends are paid at each balance sheet date according to the relevant accounting standards. For the
financial instrument classified as equity instrument, the interest or dividend paid is treated as profit
distribution of the Group, and the repurchase and cancellation of the financial instrument is treated as the
movement in equity. For the financial instrument classified as financial liability, the interest or dividend
paid is treated as borrowing cost, and gains or losses arising from the repurchase or redemption of financial
instrument is recognized in profit or loss for the current period.
When the Group issues financial instrument, the relevant transaction costs such as handling charges and
commission are recognized the initial amount of issued instrument if it is classified as debt instrument
measured at amortized cost. The transaction costs are deducted against equity if it is classified as equity
instrument.
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 to
each performance obligation based on the proportion of sales price for the goods or service committed by
each performance obligation at the commencement date of the contract. Revenue is recognized the
allocated 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's
performance 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
an enforceable right to payment for performance completed to date.
For performance obligation satisfied over time, the Group shall recognize the revenue over time by
measuring the progress toward complete satisfaction of that performance obligation. If the progress cannot
be 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 be
reasonably measured.
For performance obligation satisfied at a point in time, the Group recognizes revenue at the time when the
control of good or service is transferred to the customer. The Group considers the following indications
when 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 payment
obligation 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 goods
The 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 been
delivered to the designated location, and the customers accept the goods and obtain the control of goods.
The credit periods granted by the Group to customers are consistent with the practice in each industry and
have no significant financing components.
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The Group's cooperation model with franchiser is buyout sales, and sales revenue recognition is consistent
with the direct sales model.
Some contracts with customers have sales rebate arrangements, resulting in variable consideration. The
Group determines the best estimate of variable consideration on the basis of expectation or the most likely
value to occur. The transaction price that includes variable consideration does not exceed the value by
which it is highly unlikely that a material reversal of the cumulative recognised revenue will occur when
the related uncertainty is removed.
For the sale of goods with sales return clauses, revenue recognition is limited to extent of cumulative
recognized revenue that is unlikely to be materially reversed. The Group recognizes a liability according to
the expected refund. The carrying amount of the returned goods less than the estimated cost to recover the
goods (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 of
obtaining a contract. Other expenditures of obtaining a contract except for the incremental costs expected to
be 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 the
performance obligation of the contract, do not fall within the scope of other accounting standards, such as
inventory, and meet the following criteria:
① The costs directly related to a contract or an anticipated contract that can specifically identify,
including direct labor, direct materials, manufacturing overheads (or similar expenses), costs explicitly
chargeable to the 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 performance
obligations in the future.
③ The cost is expected to be recovered.
Assets recognized from costs of obtaining a contact and costs to fulfill a contract (hereinafter referred to as
"assets related to contract cost") shall be amortized in the profit or loss for the current period on the same
basis as revenue recognition of goods or services related to such assets. If the amortization period does not
exceed 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 between
the following two items. The Group shall make provision for impairment of the excess amount and
recognize as impairment loss:
① The remaining consideration that the Group is expected to be received as a result of the transfer of the
goods 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 and
that 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 received
or receivable. If a government grant is in the form of a transfer of a non-monetary asset, it is measured at
fair 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 for
them should purchase, construct or otherwise acquire long-term assets. Government grants related to
income 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 is
regarded as government grants related to an asset, the remaining amount of grants is regarded as
government grants related to income. If it is not possible to distinguish, the amount of grants is treated as
government grants related to income.
A government grant related to an asset is offset against the carrying amount of the related asset, or
recognized as deferred income and amortized to profit or loss over the useful life of the related asset on a
reasonable and systematic manner. A grant that compensates the Group for expenses or losses already
incurred is recognized in profit or loss or offset against related expenses directly. A grant that compensates
the Group for expenses or losses to be incurred in the future is recognized as deferred income, and included
in profit or loss or offset against related expenses in the periods in which the expenses or losses are
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recognized. Government grants measured at nominal amounts are directly recognized in the profit or loss
for 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 based
on 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 the
related asset at the time of recognition, the carrying amount of the related asset shall be adjusted. If there is
related deferred income, the repayment is offset against the carrying amount of the deferred income, and
any excess is recognized in profit or loss for the current period. Otherwise, the repayment is recognized
immediately in profit or loss for the current period.
If the government directly appropriates the interest subsidy to the lending bank, the Group recognized the
loan as the amount received, and interest expense is calculated using the loan principal and policy-related
preferential interest rate. If the government directly appropriates the interest subsidy to the Group, the
interest 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 profit
or loss except to the extent that they relate to transactions or items recognised directly in equity and
goodwill arising from a business combination.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences
respectively, 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 in
the 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 individual
transactions in which the initial recognition of assets and liabilities results in equal amounts of taxable
temporary 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 is
probable 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 and
tax credits carried forward to subsequent periods, to the extent that it is probable that future taxable profits
will be available against which deductible temporary differences, deductible losses and tax credits can be
utilized, except for those incurred in the following transactions:
(1) a transaction that is not a business combination and that affects neither accounting profit nor taxable
profit (or deductible loss) (except for individual transactions in which the initial recognition of assets
and liabilities results in equal amounts of taxable temporary differences and deductible temporary
differences);
(2) deductible temporary differences associated with investments in the Group, associates and joint
ventures, the corresponding deferred tax asset is recognized when both of the following conditions are
satisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it is
probable that taxable profits will be available in the future against which the temporary difference can
be utilized.
At the balance sheet date, the Group measures the deferred tax assets and deferred tax liabilities according
to the applicable tax rate during the period when the assets are expected to be recovered or the liabilities are
settled, and reflect the income tax impact of the expected asset recovery or liability settlement method on
the balance sheet date.
At the balance sheet date, the Group reviews the carrying amount of any deferred tax asset. If it is probable
that sufficient taxable profits will not be available in future periods to allow the benefit of the deferred tax
asset to be utilized, the carrying amount of the deferred tax asset is reduced. Any such reduction in amount
is 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 after
offsetting 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 tax
liabilities;
(2) Deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax
collection authority on the same taxpayer within the Company.
33. Leases
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(1) Identification of leases
At inception of a contract, the Group, as a lessee or a lessor, shall assess whether the customer under the
contract has the right to obtain substantially all of the economic benefits from use of the identified asset
during 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 contract
conveys the right to control the use of one or more identified assets for a certain period of time in exchange
for 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 the
simplified 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 the
commencement date of the lease using the interest rate implicit in the lease. If the interest rate implicit in
the lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The lease
payments include: fixed payments and in-substance fixed payments; if there are lease incentives, the
relevant amount of lease incentives shall be deducted; variable lease payments depending on an index or a
rate; the exercise price of the option provided that the lessee is reasonably certain that the option will be
exercised; the amount to be paid to exercise the option to terminate the lease if the lease term reflects that
the lessee will exercise the option to terminate the lease; and the amount expected to be payable based on
the residual value of the security provided by the lessee. The interest expense of the lease liability in each
period of the lease term shall be calculated in accordance with the fixed periodic interest rate and recorded
into the profit or loss of the current period. The variable lease payment not included in the measurement of
lease liabilities shall be recorded into the current profit or loss when actually incurred.
Short-term leases
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, except
for 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 current
profit or loss in each period of the lease term according to the straight-line method
Leases of Low-value assets
Leases of low value assets refer to lease of a single leased asset whose value is less than RMB40,000 when
it is a brand-new asset.
The Group includes the lease payment of the low-value asset lease into the cost of the relevant asset or
current profit or loss in each period of the lease term according to the straight-line method
For low-value asset leases, the Group chooses to apply the above simplified treatment depending on the
specific circumstances of each lease.
Lease modifications
A lessee shall account for a lease modification as a separate lease if both: (i) the lease modifies the scope of
the lease by adding the right to use one or more underlying assets; and (ii) the increase in consideration
must be commensurate with the stand-alone price for the increase in scope and any appropriate adjustments
to 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 lease
modification, 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 revised
discount rate.
If a lease modification results in a reduction in the scope of the lease or a shortening of the lease term, the
Group reduces the carrying amount of the right-of-use asset accordingly and recognizes the gain or loss
related 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 a
corresponding 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 to
the ownership of the assets are recognized as finance leases, and other leases other than finance leases are
recognized as operating leases.
Finance leases
In the case of finance leases, the Group takes the net investments in the lease as the carrying amounts of
finance lease receivables at the commencement date, and the net lease investments are the sum of the
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unguaranteed residual value and the present value of the lease payments receivable at the commencement
date discounted at the implicit interest rate. The Group, as the lessor, calculates and recognizes interest
income for each period of the lease term at a fixed periodic rate. The variable lease payments obtained by
the Group as the lessor and not included in the measurement of the net lease investments shall be recorded
into the current profit or loss when actually incurred.
The derecognition and impairment of finance lease receivable shall be accounted for in accordance with the
provisions of Accounting Standards for Business Enterprises No. 22 - "Recognition and Measurement of
Financial Instruments" and Accounting Standards for Business Enterprises No. 23 - "Transfer of Financial
Assets".
Operating lease
For the rent in the operating lease, the Group shall recognize the profit or loss of the current period in
accordance with the straight-line method during each period of the lease term. The initial direct costs
incurred in connection with the operating lease shall be capitalized, allocated on the same basis as the
recognition of rental income during the lease term and recorded into the current profit or loss in
installments. The variable lease payments obtained in connection with the operating lease and not included
in the lease payments shall be recorded into the current profit or loss when actually incurred.
Lease modifications
The Group treats it as a new lease for accounting treatment from the effective date of the modification, and
the amount of lease payments received in advance or receivable related to the lease before the modification
will 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: ①
the modification increases the scope of the lease by adding the right to use one or more underlying assets;
and ② the consideration for the lease increases by an amount commensurate with the stand-alone price for
the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances
of the contract.
If the finance lease modification is not accounted for as a separate lease, the Group will deal with the
modified lease under the following circumstances: ① If the modification takes effect on the
commencement date of the lease, the lease will be classified as an operating lease, and the Group will treat
it as a new lease from the effective date of the lease modification, and take the net investment in lease
before the effective date of the lease modification as the carrying amount of the leased asset; ② If the
modification takes effect on the commencement date of the lease, the lease will be classified as a finance
lease, and the Group will conduct accounting treatment in accordance with the provisions of the
“Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments” 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 assets
generated from the original lease. If the original lease is a short-term lease and the Group uses the
simplified 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 the
duration 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 the
commencement date of the lease term, if there is a lease incentive, the relevant amount of lease incentive
already enjoyed will be deducted; initial direct costs incurred by the Group as the lessee; the costs which
the Group, as the lessee, expects to incur in dismantling and removing the leased assets, restoring the
premises on which the leased assets are located or restoring the leased assets to the state agreed in the lease
terms. The Group, as the lessee, shall recognize and measure the costs of demolition and restoration in
accordance with the Accounting Standards for Business Enterprises No. 13 - “Contingencies”. Subsequent
adjustments 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 reasonably
determine that it obtains the ownership of the leased assets upon expiration of the lease term, depreciation
shall be accrued over the remaining useful life of the leased assets. Where it is impossible to reasonably
determine that the ownership of the leased asset can be acquired at the expiration of the lease term,
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depreciation shall be accrued in the shorter period between the lease term and the remaining useful life of
the leased asset.
(3) See Note III. 23 for the impairment test method of the right-of-use assets and the loss allowance.
35. Production safety fund
In accordance with the relevant regulations, the Group extracts production safety fund at the rate of 1% 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 is
also included in the "special reserve" account.
When the safety production fund is used in accordance to regulations, it is directly deducted from special
reserve if it is charged to current profit or loss; if it forms a fixed asset, the expense is firstly summarised
through 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, and
the same amount of accumulated depreciation will be recognised. At the same time, the cost of fixed assets
is deducted from the special reserve and accumulated depreciation of the same amount is recognised. No
depreciation 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 are
cancelled or transferred. All the expenditures relating to the repurchased shares are recorded as the cost of
treasury 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 carrying
amount of treasury stock is recognized in capital reserve. Any excess is recognized in surplus reserve and
retained earnings. When the treasury stock is cancelled, the share capital should be reduced to the extent of
the total par value and the number of shares cancelled. The difference between the carrying amount and par
value of the treasure stock cancelled is recognized in capital reserve. Any excess is recognized in surplus
reserve and retained earnings.
37. Hedge Accounting
At the inception of a hedge relationship, the Group formally designates and documents the hedge
relationship to which the Group wishes to apply hedge accounting, the risk management objective and its
strategy 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 the
effectiveness of the hedging instrument.
The Group assesses an ongoing basis to determine that the hedging instrument actually have been highly
effective throughout the financial reporting periods for which they were designated. The hedge relationship
is ceased if it is unsatisfactory. Hedging accounting should meet the following requirements for the
effectiveness 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 relationship
between hedged items and hedging instruments.
③ The hedging ratio of the hedging relationship should be equal to the ratio of the number of hedged items
actually hedged by the enterprise to the actual number of corresponding hedging instruments. It should not
reflect the imbalance of the relative weight of the hedged item and the hedging instrument. This imbalance
will cause the hedge to be invalid and may give accounting results that are inconsistent with objectives of
the 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 risk
management 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, or
the impact of credit risk does not dominate in the change of value caused by the economic relationship
between hedged items and hedging instruments.
④ The hedging relationship is no longer satisfied other conditions for using hedging accounting.
Fair value hedge
Fair value hedge refers to a hedge of the exposure to changes in fair value of a recognized asset or liability
or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular
risk. This change in fair value would affect the Group’s profit or loss, or other comprehensive income.
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Any gain or loss arising from fair value hedge is recognized in profit or loss for the current period. Gain or
loss 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 adjustment
to the carrying amount of the hedged item is amortized to profit or loss. The amortization is based on a
recalculated effective interest rate at the date that amortization begins.
When unrecognized firm commitment is designated as a hedged item, the cumulative change in the fair
value of the hedged item subsequent to its designation is recognized as an asset or a liability with a
corresponding gain or loss recognized in profit or loss for the current period. When an asset is obtained or a
liability is committed through the fulfillment of confirmed commitment, the initial amount of such asset or
liability is adjusted according to the cumulative change in the fair value of recognized hedged item.
Cash flow hedging
Cash flow hedge refers to a hedge of exposure from cash flow changes. This variability in cash flows is
attributable to a particular risk associated with a recognized asset or liability or a highly probably forecast
transaction 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 is
recognized as cash flow hedging reserve in other comprehensive income. Any remaining gain or loss on the
hedging 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 a
commitment arising the expected transaction of non-financial assets or non-financial liability, the Group
transfers the cash flow hedging reserve previously recognized in the other comprehensive income to the
initial recognition amount of such asset or liability.
For cash flow hedges that do not fall into the above situations, the Group transfers cash flow hedging
reserve previously recognized in the other comprehensive income to profit or loss for the period when the
profit 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 part
of the loss is not expect to be recovered in the future accounting period, the Group transfers the
unrecovered 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 flow
hedging reserve recognized in the other comprehensive income is retained if the hedged cash flow is
expected to occur in the future. The cash flow hedging reserve is treated in accordance with the accounting
policies of cash flow hedging mentioned above when the expected transaction has occurred. The
cumulative cash flow hedging reserve recognized in the other comprehensive income is transferred to profit
or loss for the current period if the hedged cash flow is not expected to be occurred in the future. If the
hedged cash flow is no longer probable to be occurred in the future but it may still be expected to be
occurred, the cumulative cash flow hedging reserve recognized in the other comprehensive income is
retained until the expected transaction has occurred, it is then treated in accordance with the accounting
policies 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, based
on the historical experience and other factors, including reasonable expectation of future events.
It is probable that the significant adjustment risk to the carrying amount of assets and liability in the next
accounting 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 of
accounts receivable and the expected credit loss rate of accounts receivable. The Group determines the
expected credit loss rate based on the probability and loss rate of default. When determining the expected
credit loss rate, the Group uses internal historical credit loss experience and other data, and adjusts the
historical data in conjunction with current conditions and forward-looking information. When considering
forward-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 Group
regularly monitors and reviews assumptions related to the calculation of expected credit losses.
Impairment of goodwill
The Group assesses the impairment of goodwill at least once a year. The Group shall evaluate the value in
use for the cash-generating units to which goodwill has been allocated. When assessing the value in use, the
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Group requires to estimate the expected future cash flows from the cash-generating unit and select an
appropriate discount rate to calculate the present value.
Deferred tax asset
To the extent that there is likely that there will be sufficient profits to offset losses, deferred tax assets
should be recognized for all unutilized tax losses. The management requires using many judgments to
estimate the time and amount of future taxable profits, in conjunction with tax planning strategies, to
determine the amount of deferred tax assets that should be recognized.
39. Changes in significant accounting policies, accounting estimates and correction of errors in prior periods
(1) Significant changes in accounting policies
Interpretation of Accounting Standards for Business Enterprises No. 16
The Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No. 16
(Cai Kuai [2022] No. 31) (hereinafter referred to as "Interpretation No. 16") in November 2022.
Interpretation No. 16 stipulates that for an individual transaction that is not a business combination, that
affects neither accounting profit nor taxable income (or a deductible loss) at the time of the transaction, and
that the initial recognition of assets and liabilities results in an equal amount of taxable temporary
differences and deductible temporary differences, for taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities, the corresponding
deferred tax liabilities and deferred tax assets shall be recognized respectively at the time of transaction in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 18 - Income
Tax. For the above transactions that occurred between the beginning of the earliest period for which the
above provisions are first applied to the presentation of the financial statements and the implementation
date of this Interpretation, the enterprise shall adjust the cumulative impact to the opening retained earnings
and other relevant financial statement items of the earliest period for financial statements presentation in
accordance with the above provisions. The above accounting treatment provisions shall come into effect on
January 1, 2023.
If the lease liabilities and right-of-use assets recognized by the Group for leasing business result in taxable
temporary differences and deductible temporary differences, adjustments shall be made in accordance with
the provisions of Interpretation No. 16.
The effect of the implementation of the above accounting policies on the consolidated balance sheet as at
December 31, 2023 and the consolidated income statement for the year 2023 is as follows:
Consolidated balance sheet items(December 31, 2023) Amounts affected
Deferred tax assets 11,777,845.55
Deferred tax liabilities -1,703,869.36
Retained earnings 10,711,077.58
Non-controlling interests 2,770,637.33
Consolidated income statement items(2023) Amounts affected
Income tax expenses -3,724,049.38
The effect of the implementation of the above accounting policies on the consolidated balance sheet as at
December 31, 2022 and the consolidated income statement for the year 2022 is as follows:
Consolidated balance sheet
Amounts before Adjustment Amounts after
items
adjustments amounts adjustments
(December 31, 2022)
Deferred tax assets 745,943,292.33 232,606,703.57 978,549,995.90
Deferred tax liabilities 231,742,064.98 222,849,038.04 454,591,103.02
Retained earnings 10,520,540,626.11 7,632,520.71 10,528,173,146.82
Non-controlling interests 1,525,208,718.44 2,125,144.82 1,527,333,863.26
Consolidated income statement
Amounts before Adjustment Amounts after
items
adjustments amounts adjustments
(2022)
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Consolidated income statement
Amounts before Adjustment Amounts after
items
adjustments amounts adjustments
(2022)
Income tax expenses 658,278,689.76 -4,221,571.36 654,057,118.40
The effect of the implementation of the above accounting policies on the consolidated balance sheet as at
January 1, 2022 is as follows:
Consolidated balance sheet
Amounts before Adjustment Amounts after
items
adjustments amounts adjustments
(January 1, 2022)
Deferred tax assets 734,134,076.01 206,265,922.64 940,399,998.65
Deferred tax liabilities 184,588,950.76 200,729,828.47 385,318,779.23
Surplus reserve 746,430,806.85 25,250.46 746,456,057.31
Retained earnings 7,894,011,164.82 4,418,939.03 7,898,430,103.85
Non-controlling interests 1,472,249,227.12 1,091,904.68 1,473,341,131.80
(2) Changes in significant accounting estimates
The Group 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
Taxable value-added amount (the taxable amount is Tax exemption、3%、
Value-added tax calculated based on the balance of taxable sales
5%、6%、9%、10%、
(VAT) multiplied by the applicable tax rate after deducting
the allowable input tax for the current period) 13%
City maintenance
and construction Turnover tax paid 1%、5%、7%
tax
For ad valorem basis, 1.2% of residual value of the
property tax property after deduction of 30% of original 1.2%、12%
value;For rental basis, 12% of rental income.
Corporate income Please refer to Note IV. 1
Taxable income
tax Note
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., Limited 15
Enping Fengwo Agriculture and Animal Husbandry Co., Ltd. 25, Tax exemption
Yangxi Fengwo Ecological Agriculture Co., Ltd. Tax exemption
Yangjiang Yangdong Fengwo Agriculture and Animal Husbandry Co., Ltd. Tax exemption
Enping Yitun Ecological Agriculture Co., Ltd. Tax exemption
Gaozhou Sanhe animal husbandry co., ltd. Tax exemption
Yingde Yitun Ecological Agriculture Co., Ltd. Tax exemption
Hunan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Yueyang Yitun Agriculture and Animal Husbandry Co., Ltd. Tax exemption
Yueyang Fengtun Ecological Agriculture Co., Ltd. Tax exemption
Guigang City Tantang district Yitun Ecological Agriculture Co., Ltd. Tax exemption
Pingnan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Pingguo Yitun Ecological Agriculture Co., Ltd. Tax exemption
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Taxpayer Income tax rate (%)
Guiping Yitun Ecological Agriculture Co., Ltd. Tax exemption
Hengyang Yitun Ecological Agriculture Co., Ltd. Tax exemption
Guigang City Gangbei District Yitun Ecological Agriculture Co., Ltd. Tax exemption
Duyun Yitun Ecological Agriculture Co., Ltd. Tax exemption
Rongjiang Yitun Ecological Agriculture Co., Ltd. Tax exemption
Binyang Yitun Ecological Agriculture Co., Ltd. Tax exemption
Yicheng Yitun Ecological Agriculture Co., Ltd. 25, Tax exemption
Zixing Yitun Ecological Agriculture Co., Ltd. Tax exemption
Changning Yitun Ecological Agriculture Co., Ltd. Tax exemption
Guigang Dongqiang Breeding Co., Ltd. Tax exemption
Shaoguan City Zhenjiang District Yitun Ecological Agriculture Co., Ltd. Tax exemption
Shandong Yitun Ecological Agriculture Co., Ltd. 20
Laizhou Zhizhuren Animal Husbandry Co., Ltd. Tax exemption
Qinzhou Yitun Ecological Agriculture Co., Ltd. Tax exemption
Feicheng Heruifeng Agricultural Technology Co., Ltd. Tax exemption
Weifang Xuheng Agricultural Technology Co., Ltd. Tax exemption
Gaotang Huayu Pig Raising Co., Ltd. Tax exemption
Guizhou Aikexin Pig Breeding Co., Ltd. 25, Tax exemption
Binyang Heji Yitun Ecological Agriculture Co., Ltd. Tax exemption
Qinzhou Qinnan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Huayuan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Baojing Yitun Ecological Agriculture Co., Ltd. Tax exemption
Yingde Yitun Pig Breeding Co., Ltd. Tax exemption
Hengnan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Longan Yitun Ecological Agriculture Co., Ltd. Tax exemption
Youxian Yitun Ecological Agriculture Co., Ltd. Tax exemption
Wengyuan Yitun Pig Breeding Co., Ltd. Tax exemption
Fufeng Yitun Ecological Agriculture Co., Ltd. 25, Tax exemption
Linyou Yitun Ecological Agriculture Co., Ltd. Tax exemption
Laibin Yitun Ecological Agriculture Co., Ltd. Tax exemption
Yantai Yitun Ecological Agriculture Co., Ltd. Tax exemption
Yantai Zhizhuren Animal Husbandry Co., Ltd. Tax exemption
Guiyang Yitun Ecological Agriculture Co., Ltd. Tax exemption
Gaozhou Haiyuan Agriculture Co., Ltd. Tax exemption
Ruyuan Yitun Pig Breeding Co., Ltd. Tax exemption
Luoding Yitun Ecological Agriculture Co., Ltd. Tax exemption
Hunan Yitun Technology Co., Ltd. Tax exemption
Heyuan Yitun Agriculture Development Co., Ltd. Tax exemption
Yangjiang Peilin Breeding Service Co., Ltd. Tax exemption
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Taxpayer Income tax rate (%)
Weifang Yitun Ecological Agriculture Co., Ltd. Tax exemption
Guilin Yitun Ecological Agriculture Co., Ltd. Tax exemption
Hengyang Jisheng Agriculture and Animal Husbandry Development Co., Ltd. Tax exemption
Chuzhou Yitun Ecological Agriculture Co., Ltd. Tax exemption
Zhangzhou Yidu Ecological Agriculture Development Co., Ltd. Tax exemption
Guangdong Heyinte Biotechnology Group Co., Ltd. 15
Guangzhou Haishengyuan Biotechnology Co., Ltd. 20
Guangzhou Motai Feed Technology Co., Ltd. 20
Guangzhou Haiyiyuan Biotechnology Co., Ltd. 20
Shanxi Haid Agriculture and Animal Husbandry Co., Ltd. Tax exemption
Yangling Haid Feed Co., Ltd. 15
Gansu Haid Feed Co., Ltd. 15, Tax exemption
Weinan Haid Feed Co., Ltd 20
Wuwei Haid Feed Co., Ltd. 20
Liaocheng Haixin 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
KINGHILL HOLDINGS PTE.LTD. 17
KINGHILL PTE.LTD. 17
Haid Egypt Co.,Ltd 22.5
Haid Egypt Aquatic Co.,Ltd 22.5
KINGHILL RESOURCES PTE.LTD. 17
VINH LONG HAILIANKE BIOTECHNOLOGY CO., LTD Tax exemption
KINGHILL AGRI PTE.LTD. 17
PT.HAIDA AGRICULTURE INDONESIA 22
PT.HAIDA SURABAYA TRADING 22
PT HISENOR TECHNOLOGY INDONESIA 22
HAID FEED BANGLADESH LIMITED 3, 10, 15
PT HAIDA 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
Guangdong Haixingnong Group Co., Ltd. 12.5
Zhanjiang Haixingnong Marine Biotechnology Co., Ltd. 12.5
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Taxpayer Income tax rate (%)
Zhanjiang Haijingzhou Marine Biotechnology Co., Ltd. 12.5
Hainan Haixingnong Marine Biotechnology Co., Ltd. 12.5
Zhangzhou Haijingzhou Marine Biotechnology Co., Ltd. 12.5
Nantong Haijingzhou Biotechnology Co., Ltd. 12.5
Shanwei Haijingzhou Marine Biotechnology Co., Ltd. 12.5
Guangzhou Hailingxian Food Co., Ltd. 20
Dongying Haijingzhou Biotechnology Co., Ltd. 12.5
Zhuhai Haixingnong Agricultural and Aquatic Seed Industry Technology Co.,
12.5
Ltd.
Tangshan Haijingzhou Biotechnology Co., Ltd. 12.5
Raoping Haizenong Marine Biotechnology Co., Ltd. 12.5
Yancheng Haizenong Agricultural Seed Technology Co., Ltd. 12.5
Huizhou Haizenong Marine Biotechnology Co., Ltd. 12.5
Guangzhou Haizehui Fishery Development Co., Ltd. 12.5
Zhaoqin Haizehui Fishery Development Co., Ltd. 12.5
Guangzhou Haizexin Marine Biotechnology Co., Ltd. 12.5
Yangxi Haizexin Marine Biotechnology Co., Ltd. 12.5
Guangzhou Nansha Haishengyuan Aquaculture Technology Co., Ltd. 12.5
Shanwei Haizenong Marine Biotechnology Co., Ltd. 12.5
Yongji Haijingzhou Fishery Technology Co., Ltd. 12.5
Jingtai Haijingzhou Fishery Technology Co., Ltd. 12.5
Shanwei Haijingzhou Marine Biotechnology Co., Ltd. 12.5
Shandong Haizenong Marine Biotechnology Co., Ltd. 12.5
Zhejiang Haixingnong Marine Biotechnology Co., Ltd. 12.5
Jiangmen Haizenong Marine Biotechnology Co., Ltd. 12.5
Zhenyuan Haisheng Protein Feed Co., Ltd. 20
Guangze Haisheng Biotechnology Co., Ltd. 20
Xinjiang Xiyu Haihua Products Co., Ltd. 20
Haida 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
Sihui Haifeng Ecological Agriculture Co., Ltd. Tax exemption
Chaoyang Haihong Agricultural Development Co., Ltd. 20
Dandong Haiyufeng Agricultural Development Co., Ltd. 20
Zhuhai Rongchuan Feed Co., Ltd. 15
Zhuhai Ronghai Aquaculture Technology Co., Ltd. 12.5
Haid International Group Limited 8.25, 16.5
China Haida Feed Group(HK)Limited 16.5, Tax exemption
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Taxpayer Income tax rate (%)
Rickworth Investments Limited Tax exemption
Hong Kong Longreat Trading Co.,Limited 16.5
HAID FEED COMPANY LIMITED 15
DONG NAI HAID FARM COMPANY LIMITED 15
PANASIA TRADING RESOURCES LIMITED Tax exemption
SHENG LONG INTERNATIONAL LTD. Tax exemption
10, 15, 17, 20, Tax
SHENG LONG BIO-TECH INTERNATIONAL CO.,LTD
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
PRIME WORLD CO., LTD. 24
SHENG LONG AQUA TECHNOLOGY (M) SDN. BHD. 24
THANG LONG(VINH LONG)BIOTECH CO.,LTD Tax exemption
Zhuhai Hailong Biotechnology Co., Ltd. 15
Yunnan Haid Biotechnology Co., Ltd. 15
Guangdong Mutai Biotechnology Co., Ltd. 20
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
HAIDMARINO CIA.LTDA. Tax exemption
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
Guangzhou Changsheng Logistics Co., Ltd. 20
Guangzhou Cangyouliang Trading Co., Ltd. 20
Guangzhou Danong Enterprise Management Co., Ltd. 20
Hengyang Yunyi Biotechnology Co., Ltd. 20
Suixian Haiding Veterinary Service Co., Ltd. 20
Yuncheng Haiding Veterinary Service Co., Ltd. 20
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Taxpayer Income tax rate (%)
Liaocheng Haiding Veterinary Service Co., Ltd. 20
Shan County Haiding Veterinary Service Co., Ltd. 20
Xinxiang Haiding Feed Co., Ltd. 20
Xinxiang Hairuida Feed Co., Ltd. 20
Heze Haiding Feed Technology Co., Ltd. 15
Heze Dingxin Veterinary Service Co., Ltd. 20
Jining Haiding Veterinary Service Co., Ltd. 20
Jining Sishui Dingxin Veterinary Service Co., Ltd. 20
Feixian Hairuida Veterinary Service Co., Ltd. 20
Yinan Dingxin Veterinary Services Limited 20
Tengzhou Fengcheng Feed Co., Ltd. 20
Binzhou Haiding Veterinary Service Co., Ltd. 20
Donge Dingxin Aquaculture Service Co., Ltd. 20
Heze Haiding Ecological Breeding Co., Ltd. Tax exemption
Junan Haiding Veterinary Service Co., Ltd. 20
Sihong Haiding Feed Co., Ltd. 20
Linyi Dingxin Culture Co., Ltd. Tax exemption
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 Haiding Feed Co., Ltd. 20
Linyi Dinghao Culture Co., Ltd. Tax exemption
Dongying Dinghao Culture Co., Ltd. Tax exemption
Xuzhou Hairuida Feed Co., Ltd. 20
Linyi Haiding Ruminant Biological Feed Co., Ltd. 20
Gansu Fengying Technology Co., Ltd. 20
Qingdao Dinghao Fengying International Trade Co., Ltd. 20
Juxian Haiding Feed Co., Ltd. 20
Liaocheng Fengcheng Feed Co., Ltd. 20
Yinan Haiding Biotechnology Co., Ltd. 20
HAID GROUP HAIDING AGRICULTURE AND ANIMAL HUSBANDRY
20
KAZAKHSTAN CO., Ltd.
Yancheng Haida Biological Stall Food Co., Ltd. 20
Guangzhou Heshengtang Biotechnology Co., Ltd. 20
Henan Haihe Agriculture and Animal Husbandry Technology Co., Ltd. 20
Anyang Haihe Agriculture and Animal Husbandry Technology Co., Ltd. 20
Guangdong Hairuite Supply Chain Management Co., Ltd. 20
Guangdong Bairong Aquatic Breeding Group Co., Ltd. 12.5
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Taxpayer Income tax rate (%)
Yangxin Bairong Aquatic Breeding Co., Ltd. 12.5
Jingzhou Bairong Aquatic Breeding Co., Ltd. 12.5
Shandong Bairong Aquatic Breeding Co., Ltd. 12.5
Hainan Bairong Aquatic Breeding Co., Ltd. 12.5
Zhaoqing Baishengyuan Aquatic Breeding Co., Ltd. 12.5
Guangdong Baishengyuan Aquatic Breeding Co., Ltd. 12.5
Qingyuan Baishengyuan Aquatic Breeding Co., Ltd. 12.5
Hunan Innovation Biotechnology Co., Ltd. 15
Zhuhai Haibei Supply Chain Management 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
Xuzhou Haihe Feed Co., Ltd. 20
Lianyungang Haihe Feed Co., Ltd. 20
Xuzhou Haidahe New Feed Co., Ltd. 20
Anshan Dachuan Feed Technology Co., Ltd. 20
Haid Pet Food Co., Ltd. 20
Haid Pet Food (Weihai) Co., Ltd. 20
Wuhan Zeyi Investment Co., Ltd. 20
Guangzhou Punong Investment Management Co., Ltd. 20
Jiaxiang Haiying Food Co., Ltd. Tax exemption
Linxi Haiying Food Co., Ltd. Tax exemption
Yiyuan Haiying Food Co., Ltd. Tax exemption
Zouping Haiying Food Co., Ltd. Tax exemption
Binzhou Haiying Food Co., Ltd. Tax exemption
Dezhou Haiying Food Co., Ltd. Tax exemption
Guangzhou Yuannong Investment Management Co., Ltd. 20
Qingdao Huaxin Feed Co., Ltd. 20
Qingdao Zhizhuxia Experimental Technology Co., Ltd. Tax exemption
Linyi Zhizhuxia Breeding Technology Service Co., Ltd. 20
Yantai Haixin Animal Husbandry 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
Huaian Huilong Feed Co., Ltd. 20
Ganzhou Hailong Feed Co., Ltd. 20
Zhuhai Dachuan Biotechnology Co., Ltd. 20
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Taxpayer Income tax rate (%)
Guangzhou Mingersi Biotechnology Co., Ltd. 20
Guangzhou Shunkang Aquaculture Co., Ltd. 20
Zhanjiang Rongda Feed Co., Ltd. 20
Guangzhou Ronghai Aquaculture Technology Co., Ltd. 20
Zhongshan Ronghai Aquaculture Co., Ltd. 12.5
Guangzhou Rongda Aquaculture Technology Co., Ltd. 12.5
Jiangmen Ronghai Aquaculture Technology Co., Ltd. 12.5
Zhongshan Yugezi Food Co., Ltd. Tax exemption
Guangxi Ronghai Fishery Co., Ltd. 12.5
Zhongshan Rongda Aquatic Fingerlings Co., Ltd 12.5
Foshan Rongda Aquatic Fingerlings Co., Ltd 12.5
Guangzhou Ronghai Seedling Technology Co., Ltd. 12.5
Mianyang Zhonggui Feed Co., Ltd. 20
Dali Haiwang Feed Co., Ltd. 20
Dali Haizhi Trading Co., Ltd. 20
Yunnan Zhonggui Feed Co., Ltd. 20
Chongqing Hainong Veterinary Service Co., Ltd. 20
Guiyang Haida Zhihai Feed Co., Ltd. 20
Qujing Zhihai Feed Co., Ltd. 20
Haile (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
20
Development Co., Ltd
Ezhou Haifeng Ecological Agriculture Co., Ltd. Tax exemption
Qingyuan Ronghai Food Technology Co., Ltd. 15
Liuzhou Haid Feed Co., Ltd. 20
Guangdong Qingyuan Guanghong Feed Co., Ltd. 20
Hainan Haid Aquatic Seed Industry Development Co., Ltd. 12.5
Dongguan Haiqi Feed Co., Ltd. 20
Mianyang Hailong Feed Co., Ltd. 20
Meishan Haid Biotechnology Co., Ltd. 20
Guangzhou Nongzhidao Feed Co., Ltd. 20
Yingkou Dachuan Feed Technology Co., Ltd. 20
Yancheng Runchuan Agricultural Technology Co., Ltd. 20
Jiangxi Gunan Bencao Technology Collaborative Innovation Co., Ltd. 20
Jiangxi Renxintang Biotechnology Co., Ltd. 20
Guangxi Rongchuan Feed Co., Ltd. 20
Heshan Haiwei Feed Co., Ltd. 20
Leizhou Hailong Biotechnology Co., Ltd. 20
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Taxpayer Income tax rate (%)
Sichuan Hailong Biotechnology Co., Ltd. 20
Nanning Dachuan Biotechnology Co., Ltd. 20
Yongzhou Haid Biotechnology Co., Ltd. 20
Jiangsu Haid Biotechnology Co., Ltd. 20
Guiyang Haida Biotechnology Co., Ltd. 20
Guilin Haid Biotechnology Co., Ltd. 20
Guiyang Dachuan Biotechnology Co., Ltd. 20
Foshan Lianduoli Feed Co., Ltd. 20
Guangdong Haifulai Biotechnology Co., Ltd. 20
Qingyuan Haikun Biotechnology Co., Ltd. 20
Qingyuan Hailier Biotechnology Co., Ltd. 20
Guangdong Haiqi Investment Co., Ltd 20
Heze Haibo Youmei Technology Service Co., Ltd. 20
Hubei Haiqi Technology Service Co., Ltd. 20
Kaifeng Haiqi Technology Service Co., Ltd. 20
Sichuan Haiqi Technology Service Co., Ltd. 20
Xishui Haiqi Technical Service Co., Ltd. 20
Kunming Haiqi Technology Service Co., Ltd. 20
Mianyang Haiqi Culture Technology Co., Ltd. 20
Ya an Haiqi Culture Technology Co., Ltd. 20
Nanchang Haiqi Veterinary Medicine Co., Ltd. 20
Hengyang Haiqi Technology Service Co., Ltd. 20
Jingzhou Haiqi Technology Service Co., Ltd. 20
Jingshan Haiqi Technology Service Co., Ltd. 20
Huaihua Haiqi Technology Service Co., Ltd. 20
Jieshou Haiqi Technology Service Co., Ltd. 20
Changde Haide Veterinary Drug Operation Co., Ltd. 20
Guiyang Aizhu Livestock and Poultry Technical Service 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 Haide Biotechnology Co., Ltd. 20
Yulin Haiqi Biotechnology Co., Ltd. 20
Qinzhou City Pubei County Haiqi Biotechnology Co., Ltd. 20
Xingtai Haiqi Aquaculture Technology Service Co., Ltd. 20
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Taxpayer Income tax rate (%)
Suixi Haihe Veterinary Drug 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
Bobai Haihe Veterinary Drug Co., Ltd. 20
Jiangmen Haiqi Technology Co., Ltd. 20
Guangzhou Haifeng Aquaculture Service Co., Ltd. Tax exemption
Shaoyang Haid 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
Guangdong Huashite Testing Technology Co., Ltd. 20
Tianjin Haida Biotechnology Co., Ltd. 20
Yunnan Hairui Biotechnology Co., Ltd. 20
Henan Haid Jiuzhou Biotechnology Co., Ltd. 20
Chaozhou Haid Biotechnology Co., Ltd 20
Haixin (Tianjin) Biotechnology Co., Ltd. 20
Haixin Biological (Beijing) Technology Co., Ltd. 20
Dalian Haixin Biotechnology Co., Ltd. 20
Shenzhen Haixin Biotechnology Co., Ltd. 20
Tongliao Haida Biotechnology Co., Ltd. 20
Guangzhou Haihan Financial Technology Co., Ltd. 20
Nantong Fengmu Trading Co., Ltd. 20
Sichuan Haimufeng Agriculture Co., Ltd. 20
Leizhou Yuexiu Haishengyuan Shrimp Culturing Technology Co., Ltd. 12.5
Dongying Haishengyuan Aquaculture Co., Ltd. 12.5
Weifang Haixin Biotechnology Co., Ltd. 20
Wudi Haishengyuan Aquaculture Co., Ltd. 12.5
Changyi Haijingzhou Biotechnology Co., Ltd. 12.5
Yuncheng Haishengyuan Fishery Technology Co., Ltd. 12.5
Hubei Haid Breeding Technology Co., Ltd. 20
Qianjiang Hailong Biotechnology Co., Ltd. 20
Zhuhai Chenzhe Private Equity Fund Management Co., Ltd. 20
Guiyang Haiyue Feed Technology Co., Ltd. 20
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Taxpayer Income tax rate (%)
Inner Mongolia Haishan Feed Co., Ltd. 20
Huizhou Haid Biotechnology Co., Ltd. 20
Guangzhou Wallace Testing Technology Co., Ltd. 20
Huaibei Haid Biological Feed Co., Ltd 20
Guigang Hailong Biotechnology Co., Ltd. 20
Xinyi Fengmu Trading Co., Ltd. 20
Guizhou Haid Feed Co., Ltd. 20
Pizhou Hai Ruminant Feed Co., Ltd. 20
Nanping Haid Biotechnology Co., Ltd. 20
Xishui ChenKe Feed Technology Co., Ltd. 15
Taikun Feed (Tuanfeng) Co., Ltd. 20
HAID (ECUADOR) FEED CIA.LTDA. Tax exemption
Xinyu Haihe Biotechnology Co., Ltd. 20
Zhuhai Haiyue Agriculture and Animal Husbandry Co., Ltd. 20
Qingyuan Haifulai Biotechnology Co., Ltd. 20
Guangdong Kenong Culture Co., Ltd. 20
Fuzhou Hailong Biotechnology Co., Ltd. 20
Guangzhou Rongchuan Feed Co., Ltd. 12.5, 25
Zhanjiang Haid Feed Co., Ltd. 12.5, 25
Taizhou Haid Biological Feed Co., Ltd. 12.5, 25
Changzhou Haid Biological Feed Co., Ltd. 12.5, 25
Guangzhou Nansha Haid Biotechnology Co., Ltd. 12.5, 25
Note 1: The subsidiary Haid Lanking International Trading Inc applies multiple tax rates under the U.S.
federal tax. The subsidiary had a loss at the year and was not subject to federal tax. The California tax was
payable as income tax at 8.84% and the subsidiary Haid Lanking International Trading Inc was payable
only at the minimum tax of USD800 for the current year.
2. Tax preferential treatments and approval documents
(1) Value-added tax (VAT)
In accordance with document Caishui [2001] No. 121 jointly issued by the Ministry of Finance and the
State Administration of Taxation, the Company and its subsidiaries are exempted from VAT on their feed
products, which has been filed with the competent tax authorities.
According to Interim Regulation of People’s Republic of China on Value-Added Tax Article 15,
agricultural producers are exempted from value-added tax when selling self-produced agricultural products.
The Company and its subsidiaries are eligible for valued-added tax exemption when selling self-produced
products.
According to Application of the Low VAT Rate and the Simple VAT Collection Policy on Some Goods
Caishui [2009] No. 9, and Notice on the Degenerate VAT Collection Rate Policy Caishui [2014] No. 57,
both issued by the Ministry of Finance and State Taxation Administration, sales of self-produced biological
products made of microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues
are subject to VAT at a simple rate of 3%.
According to Announcement on Clarifying the VAT Exemption Policy for Small-scale VAT Taxpayers
Caishui [2023] No.1, and Announcement on VAT Exemption Policy for Small-scale VAT Taxpayers Caishui
[2023] No.19 both issued by the Ministry of Finance and State Taxation Administration, from 1 January
2023 to 31 December 2027, small-scale value-added tax taxpayers with sales less than RMB100,000 are
exempt from value-added tax; tax rate for small-scale value-added tax taxpayers reduces from 3% to 1% on
taxable sales income; tax rate for prepaid VAT items reduces from 3% to 1%.
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According to Announcement on the Renewal of the Implementation of the VAT Policy on Financing
Guarantees for Farmers, Small-scale VAT Taxpayers and Private Firms Caishui [2023] No.18 issued by the
Ministry of Finance and State Taxation Administration, from 1 August 2023 to 31 December 2027,
guarantee fee income for VAT taxpayers from providing financial guarantees on borrowings and bonds to
farmers, small-scale VAT taxpayers and private firms, and re-guarantee fee income for the above business
are exempt from value-added tax.
According to Announcement on Tax Policies to Further Support Entrepreneurship and Employment of Key
Groups Caishui [2023] No.15 issued by the Ministry of Finance, State Taxation Administration, Ministry of
Human Resources and Social Security and Ministry of Agriculture and Rural Development, from 1 January
2023 to 31 December 2027, VAT taxpayers which recruit people from poverty, or sign labor contract with
over one year's duration and social insurance in law, with persons who have been registered as unemployed
for more than half a year at the public employment service organisations of Ministry of Human Resources
and Social Security, and who hold an Employment and Entrepreneurship Certificate or an Employment and
Unemployment Registration Certificate, can enjoy deduction of VAT, urban maintenance and construction
tax, education surcharge and local education surcharge and corporate income tax in order within three years
according to the number of people actually recruited. The fixed deduction amount is RMB 6,000 per person
per year with a maximum increase of 30%, and the people's governments of provinces, autonomous regions
and municipalities may determine the specific fixed deduction amount within this range according to the
actual situation in the region. The tax basis for urban maintenance and construction tax, education
surcharge and local education surcharge is the amount of VAT payable before enjoying the above tax
policies.
According to the relevant regulations on value-added tax in the Socialist Republic of Vietnam, the feed and
feed related industries will be exempted from value-added tax from 2016, and the rental income of the
Company's cold storage in Vietnam will be subject to value-added tax at 5%.
(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-profit
enterprises; The enterprise income tax will be levied at the reduced rate of 15% for high-tech enterprises
that 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 for
Small and Micro Enterprises, Caishui [2023] No.12 issued by the Ministry of Finance, State Taxation
Administration, the portion of the annual taxable income of small and micro-profit enterprises is included
in the taxable income at a reduced rate of 25%, and the enterprise income tax is paid at a rate of 20%. The
Announcement extends to 31 December 2027.
In accordance with Article 27 of the Corporate Income Tax Law of the People’s Republic of China and
Article 86 of the Regulation on the Implementation of the Corporate Income Tax Law of the People’s
Republic of China, Enterprise income from livestock and poultry raising shall be exempted from enterprise
income tax; Enterprise income tax will be levied on the income of enterprises engaged in mariculture and
inland aquaculture by half. The above income earned by the Company and its subsidiaries is subject to
corporate income tax under preferential policies.
In accordance with Notice of the Ministry of Finance and State Administration of Taxation on Announcing
the Scope of Primary Processing of Agricultural Products Covered by Preferential Policies on Corporate
Income Tax (for Trial Implementation) (Caishui [2008] No. 149) and Supplementary notice on the scope of
primary processing of agricultural products enjoying preferential enterprise income tax (Caishui [2011] No.
26), if the primary processed products produced by enterprises fall within the scope of primary processing
of agricultural products that enjoy the preferential policies of enterprise income tax, enterprises shall be
exempted from enterprise income tax. The above income earned by the Company and its subsidiaries is
subject to corporate income tax under preferential policies.
According to the Announcement on the Renewal of the Enterprise Income Tax Policy for the Western
Development (Ministry of Finance Announcement 2020 No. 23), from January 1, 2021 to December 31,
2030, the enterprise income tax will be levied at a reduced rate of 15% on enterprises with encouraged
industries located in the western region. Subsidiaries of the Group established in the western region to
which the announcement belongs are subject to corporate income tax at the rate of 15%.
According to the Announcement on Strengthening Pre-tax Deduction in Support of Science and
Technology Innovation, Caishui [2023] No.7 issued by Ministry of Finance and the State Administration of
203
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Taxation, enterprises enjoy 100% pre-tax deductions for research and development expenses and 200%
amortisation on the cost of intangible assets since January 1, 2023,
In accordance with Notice of the Ministry of Finance on Enterprise Income Tax Preferential Policies of
Hainan Free Trade Port. (Caishui [2020] No. 31), from January 1, 2020 to December 31, 2024, the
enterprise income tax is levied at a reduced rate of 15% on the encouraged industrial enterprises registered
in Hainan Free Trade Port and operating substantially. Subsidiaries of the Group established within the
territory covered by the above policy are subject to corporate income tax at the rate of 15%.
According to the Announcement on Renewal of the Implementation of Preferential Tax Policies for
Microfinance Companies, Caishui [2023] No. 54 issued by Ministry of Finance and the State
Administration of Taxation, for microfinance companies within the Group with establishment approved by
the local financial supervision and administration authorities at the provincial level, 1% loan loss reserve of
the year-end loan balances is deductible before tax.
In accordance with Notice on Preferential Policies on Corporate Income Tax in Hengqin Guangdong-
Macao Cooperation-in-depth zone, Caishui [2022] No.19 issued by the Ministry of Finance and the State
Administration of Taxation, subsidiaries of the Group established within Hengqin Guangdong-Macao
Cooperation-in-depth zone covered by the above policy are subject to corporate income tax at the rate of
15%.
Subsidiary of the Group registered in the British Virgin Islands, is exempted from corporate income tax
according to the local tax law.
Under the Hong Kong Tax Ordinance, the Group's locally incorporated subsidiaries are subject to profits
tax at 16.50%. Plus, the offshore income of HKIH is declared exempt from profits tax. Non-locally
registered subsidiaries which have their actual operations and management offices located in Hong Kong
and are engaged in qualified finance business, are Hong Kong tax resident enterprises, enjoying the
preferential policy of halving the profits tax of treasury center business (8.25%).
Subsidiaries of the Company registered in Malaysia subject to a corporate income tax rate of 24% in
accordance with the Malaysian tax law.
Subsidiaries of the Company registered in Singapore subject to a corporate income tax rate of 17% in
accordance with the Singaporean tax law.
According to the local tax laws of Ecuador, enterprises enjoy a tax exemption period of 12 years from the
issuance of the first invoice, and the tax rate after the tax exemption period is 25%. Subsidiaries of the
Company registered in Ecuador is still within tax exempt period as of the end of 2023.
Subsidiaries of the Company registered in Indonesia subject to a corporate income tax rate of 22% in
accordance with the Indonesian tax law.
Subsidiary of the Company registered in Egypt subject to a corporate income tax rate of 22.5% in
accordance with the Egyptian tax law.
Subsidiary of the Company registered in Bangladesh subject to multi-level tax rate according to the local
tax laws of Bangladesh. As of the end of 2023, Bangladesh Haid is at a deficit and is not subject to income
tax.
Subsidiary of the Company registered in Vietnam subject to a corporate income tax rate following the
beneath income tax policy:
① Corporate income tax exempts for the first two years from the year in which the profit was generated
for the first time by the company, then half for the subsequent four years in according to the
preferential tax policy. SHENG LONG BIOTECH (HAI DUONG) INTERNATIONAL CO., LTD,
VINH LONG HAILIANKE BIOTECHNOLOGY CO., LTD, BINH PHUOC HAI LONG COMPANY
LIMITED have not begun to profit and the above enterprises are exempted from income tax.
② In accordance with the preferential policies of the Vietnamese government on new investment and
industries in difficult areas, Sheng Long Bio-Tech enjoyed a preferential corporate income tax rate at
10% and 15% for different factories in different areas, rental income for cold storage and sales of raw
materials were subject to tax rate at 10%. Sales of raw material is taxed at 20%. Animal insurance is
taxed at 17%. Other income was subject to a tax rate at 20%.
③ In accordance with the Vietnam's Local Income Tax Policy, Sales of self-produced feed for LONG
SHENG INTERNATIONAL LTD.and HAID FEED COMPANY LIMITED is taxed at 15%, income
from farming for HAI DAI COMPANY LIMITED and DONG NAI HAID FARM COMPANY
LIMITED is taxed at 15%, income from agricultural processing for HAI DUONG HAID COMPANY
LIMITED is taxed at 15%, and all trading income is taxed at 20%.
204
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
④ In accordance with the Vietnam's Local Income Tax Policy, NAMDUONG VIETNAM AQUATIC
HATCHERY CO.,LTD. is exempted from income tax from saling cultured shrimps.
⑤ Corporate income tax exempts for the first four years from the year in which the profit was generated
for the first time by the company, then half for the subsequent nine years in according to the
preferential tax policy. VINH LONG HAI DAI CO.,LTD profited in 2021; THANG LONG(VINH
LONG)BIOTECH CO.,LTD profited in 2022; BINH DINH HAI LONG CO.,LTD profited in 2023.
(3) Other taxes
According to the Announcement on Tax Policies for Further Supporting the Development of Small and
Micro Enterprises and Individual Entrepreneurs, Caishui [2023] No.12 issued by the Ministry of Finance
and the State Administration of Taxation, from 1 January 2023 to 31 December 2027, VAT small-scale
taxpayers and individual business are subject to 50% reduction on resource tax (excluding water resource
tax), urban maintenance and construction tax, property tax, urban land-use tax, stamp duty (excluding
stamp duty on securities transactions), cultivated land occupancy tax, and surcharges on education fees and
local education surcharges.
V. Notes to Key Items in Consolidated Financial Statements
1. Cash at bank and on hand
Item 2023.12.31 2022.12.31
Cash on hand 178,407.26 456,386.59
Cash at bank 5,128,158,706.62 1,882,056,187.18
Other monetary funds 347,859,314.27 370,241,371.30
Accrued interest on deposits 256,350.64 7,832,721.62
Total 5,476,452,778.79 2,260,586,666.69
Including: Total overseas deposits 1,515,348,609.91 468,657,117.65
Note: For cash with restriction as at December 31,2023, please refer to Note V. 27. Assets with restricted
ownership or right-of-use assets.
2. Held-for-trading financial assets
Item 2023.12.31 2022.12.31
Held-for-trading financial assets 1,286,752,498.95 699,942,009.75
Including: Derivative financial assets 270,014,574.45 439,630,197.91
Bank financial products 1,016,737,924.50 260,311,811.84
Total 1,286,752,498.95 699,942,009.75
3. Notes receivable
2023.12.31 2022.12.31
Type Loss
Loss Carrying Carrying
Book value Book value allow
allowance amount amount
-ance
Bank
5,649,969.8
acceptance 4,833,343.60 - 4,833,343.60 5,649,969.84 -
4
bills
Commercial
1,000,000.00 21,940.62 978,059.38 - - -
acceptance bill
Usance letters 1,251,634.2
6,510,119.02 - 6,510,119.02 1,251,634.20 -
of credit 0
12,321,522.0 6,901,604.0
Total 12,343,462.62 21,940.62 6,901,604.04 -
0 4
(1) The Group had no pledged notes receivable at the end of the year.
(2) Outstanding endorsed or discounted bills that have not matured at the end of the year.
Amount derecognized Amount recognized
Type
at year end at year end
205
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Amount derecognized Amount recognized
Type
at year end at year end
Bank acceptance bill 71,701,923.00 -
Commercial acceptance bill - 67,245.20
Total 71,701,923.00 67,245.20
(3) As of the end of the reporting period, the Group had no bills transferred to accounts receivable due to
the failure of the drawer to perform the contract.
(4) Classification by loss allowance method
2023.12.31
Type Book value Loss allowance
Percentage Expected credit Book value
Amount Amount
(%) 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:
Banker acceptance bill 4,833,343.60 39.16 - - 4,833,343.60
Commercial acceptance
1,000,000.00 8.10 21,940.62 2.19 978,059.38
bill
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
Continued:
2022.12.31
Type Book value Loss allowance
Percentage Expected credit loss Book value
Amount Amount
(%) rate (%)
Loss allowance on an
- - - - -
individual basis
Loss allowance by group 6,901,604.04 100.00 - - 6,901,604.04
Including:
Banker acceptance bill 5,649,969.84 81.86 - - 5,649,969.84
Commercial acceptance
- - - - -
bill
Usance letter of credit 1,251,634.20 18.14 - - 1,251,634.20
Total 6,901,604.04 100.00 - - 6,901,604.04
(5) Additions, recoveries or reversals of provision for the current period
Loss allowance
Amount as at 2023.01.01 -
Additions 21,940.62
Recoveries or reversals -
Write-offs -
Amount as at 2023.12.31 21,940.62
(6) As of the end of the reporting period, there is no notes receivable write- off in this group.
4. Accounts receivable
(1) Disclosure by aging
Aging 2023.12.31 2022.12.31
206
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Aging 2023.12.31 2022.12.31
Within 1 year 1,966,303,199.85 1,865,803,147.34
1 to 2 years 282,115,922.02 174,116,530.78
2 to 3 years 86,424,377.99 111,174,788.59
3 to 4 years 58,450,212.31 27,320,410.68
4 to 5 years 15,071,942.69 16,405,157.01
More than 5 years 18,898,758.21 22,028,650.67
Subtotal 2,427,264,413.07 2,216,848,685.07
Less: Loss allowance 370,550,754.71 264,840,804.02
Total 2,056,713,658.36 1,952,007,881.05
(2) Classified by loss allowance method
2023.12.31
Book value Loss allowance
Type Expected
Percentage Book value
Amount Amount credit loss
(%)
rate (%)
Loss allowance on an 306,545,670. 237,383,558. 69,162,111.9
12.63 77.44
individual basis 75 85 0
2,120,718,74 133,167,195. 1,987,551,54
Loss allowance by group 87.37 6.28
2.32 86 6.46
Including:
Accounts receivable from
2,112,580,20 132,996,949. 1,979,583,26
feed and relevant 87.04 6.30
9.85 62 0.23
customers
Accounts receivable from
8,138,532.47 0.33 170,246.24 2.09 7,968,286.23
materials trade customers
2,427,264,41 370,550,754. 2,056,713,65
Total 100.00 15.27
3.07 71 8.36
Continued:
2022.12.31
Book value Loss allowance
Type Expected
Percentage Book value
Amount Amount credit loss
(%)
rate (%)
Loss allowance on an 144,096,100.
215,697,249.53 9.73 66.80 71,601,149.10
individual basis 43
2,001,151,435. 120,744,703. 1,880,406,731.
Loss allowance by group 90.27 6.03
54 59 95
Including:
Accounts receivable
1,987,173,385. 120,497,292. 1,866,676,093.
from feed and relevant 89.64 6.06
93 12 81
customers
Accounts receivable
from materials trade 13,978,049.61 0.63 247,411.47 1.77 13,730,638.14
customers
2,216,848,685. 264,840,804. 1,952,007,881.
Total 100.00 11.95
07 02 05
Accounts receivable assessed for impairment individually
Name 2023.12.31
207
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Loss allowance Expected
Book value credit loss Reasons for accrual
rate (%)
Estimated some of
Customer 1 47,380,367.74 23,690,183.87 50.00 portion to be
unrecoverable
Estimated some of
Customer 2 23,747,505.01 20,035,515.81 84.37 portion to be
unrecoverable
Remaining Estimated some of
individual 235,417,798.00 193,657,859.17 82.26 portion to be
customers unrecoverable
Total 306,545,670.75 237,383,558.85 77.44 /
Continued:
2022.12.31
Name Loss allowance Expected
Book value credit loss Reasons for accrual
rate (%)
Estimated some of
Customer 2 24,450,871.01 16,139,836.11 66.01 portion to be
unrecoverable
Estimated to be
Customer 3 9,003,105.88 9,003,105.88 100.00
unrecoverable
Remaining Estimated some of
individual 182,243,272.64 118,953,158.44 65.27 portion to be
customers unrecoverable
Total 215,697,249.53 144,096,100.43 66.80 /
Note: The expected credit loss rate of the remaining individual provision customers is the average
proportion of the total individual provision for bad debts to the book balance of that portion of customers.
Accounts receivable assessed for impairment by group
Grouped items: Accounts receivable from feed and relevant customers
2023.12.31 2022.12.31
Expecte
Expected
Loss Loss d credit
Book value credit loss Book value
allowance allowance loss rate
rate (%)
(%)
Within 1 1,899,445,833. 48,952,065.0 1,835,063,093. 49,699,500.5
2.58 2.71
year 59 6 03 9
1 to 2 49,465,153.4 33,533,330.9
168,603,778.10 29.34 104,577,590.23 32.07
years 6 4
2 to 3 15,801,892.2 17,431,334.8
24,902,716.41 63.45 24,727,060.47 70.49
years 1 1
3 to 4 11,292,915.2
6,580,410.20 5,730,367.34 87.08 14,251,554.78 79.24
years 4
4 to 5
7,829,682.12 7,829,682.12 100.00 3,083,043.01 3,069,166.13 99.55
years
More
than 5 5,217,789.43 5,217,789.43 100.00 5,471,044.41 5,471,044.41 100.00
years
2,112,580,209. 132,996,949. 1,987,173,385. 120,497,292.
Total 6.30 6.06
85 62 93 12
Grouped items: Accounts receivable from materials trade customers
2023.12.31 2022.12.31
208
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Expected Expected
Loss Loss
Book value credit loss Book value credit loss
allowance allowance
rate (%) rate (%)
Within 1 247,411.4
8,138,532.47 170,246.24 2.09 13,978,049.61 1.77
year 7
(3) Additions, recoveries or reversals of provision for the current period
Loss allowance
Amount as at 2023.01.01 264,840,804.02
Additions 183,802,482.43
Recoveries or reversals 14,944,949.82
Write-offs 63,442,007.05
Addition due to Merger in current period 294,425.13
Amount as at 2023.12.31 370,550,754.71
There are no material loss allowances recovered or reversed in current period.
Accounts receivable actually written off in current period
Item Amount
Accounts receivable written off 63,442,007.05
There are no significant accounts receivable write-off in current period.
(4) The receivables by debtor with top five closing balance
The total accounts receivable from the top five debtors with the largest closing balance amounted to RMB
179,863,170.88, accounting for 7.41% of the total closing balance of accounts receivable, with the total
corresponding closing balance of the provision for bad and doubtful debts being RMB 54,637,465.42.
5. Prepayments
(1) Prepayments disclosed by aging
2023.12.31 2022.12.31
Aging
Amount Percentage % Amount Percentage %
1,783,514,951.
Within 1 year 740,685,052.88 99.67 99.79
53
1 to 2 years 2,193,766.32 0.30 3,577,093.13 0.20
2 to 3 years 224,104.43 0.03 82,764.36 0.00
More than 3 years 52,002.52 0.00 107,440.31 0.01
1,787,282,249.
Total 743,154,926.15 100.00 100.00
33
(2) There are no significant prepayments with aging for more than 1 year
(3) The prepayments by debtors with top five closing balance
The total amount of prepayments by debtors with top five closing balance was RMB 312,991,693.81,
accounting for 42.12% of the closing balance of total prepayments.
6. Other receivables
Item 2023.12.31 2022.12.31
Interests receivable - -
Dividends receivable - -
Other receivables 957,972,560.29 1,322,999,051.80
Total 957,972,560.29 1,322,999,051.80
(1) Other receivable by aging
Aging 2023.12.31 2022.12.31
Within 1 year 939,309,075.66 1,272,712,082.84
1 to 2 years 22,822,637.83 51,430,153.93
209
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Aging 2023.12.31 2022.12.31
2 to 3 years 9,671,533.81 10,278,760.31
3 to 4 years 3,933,348.89 4,397,277.57
4 to 5 years 1,596,269.24 4,387,762.13
5 years above 11,601,172.40 5,944,492.41
Subtotal 988,934,037.83 1,349,150,529.19
Less: Provision for bad and doubtful debts 30,961,477.54 26,151,477.39
Total 957,972,560.29 1,322,999,051.80
(2) Other receivable by nature
Aging 2023.12.31 2022.12.31
Futures margin 579,678,347.70 486,310,151.38
Security deposit 302,885,410.22 735,163,674.92
Accounts with external parties 48,282,506.34 53,599,036.22
Disbursement of social insurance and housing fund 15,521,594.18 13,091,720.42
Petty cash 8,641,549.33 7,505,369.08
Insurance compensation 1,232,895.58 23,793,192.43
Others 32,691,734.48 29,687,384.74
Total 988,934,037.83 1,349,150,529.19
(3) Provision for bad and doubtful debts
The first stage The second stage The third stage
Lifetime Lifetime
Loss allowance Expected credit expected credit expected credit Total
losses over the losses (no credit losses (credit
next 12 months impairment impairment has
occurred) occurred)
Balance as at January
16,819,192.69 - 9,332,284.70 26,151,477.39
1, 2023
Balance as at January
1, 2023 in the current
period
- Transfer to the
- - - -
second stage
- Transfer to the third
-1,145,936.31 - 1,145,936.31 -
stage
- Transfer out to the
- - - -
second stage
- Transfer out to the
- - - -
first stage
Additions -4,935,431.27 - 10,335,765.97 5,400,334.70
Reversals - - 319,798.76 319,798.76
Write-offs 859,144.10 - 2,214,305.60 3,073,449.70
Other changes 161,330.01 - 2,641,583.90 2,802,913.91
Balance as at
10,040,011.02 - 20,921,466.52 30,961,477.54
December 31, 2023
(4) Recognitions or recoveries or reversals of provision for bad and doubtful debts in current period
Category 2022.12.31 Category 2023.12.31
210
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Recoveries
Recognition
or Write-off Other
s
reversals
Other 26,151,477. 2,802,913.9
5,400,334.70 319,798.76 3,073,449.70 30,961,477.54
receivables 39 1
There are no significant recoveries or reversals of provision for bad and doubtful debts in current period.
(5) Other receivables written off in the current period
Item Amount written off
Other receivables written off 3,073,449.70
There are no significant other receivables written off in the current period.
(6) Other receivables with top five closing balance
Percentage of
Provision
other
Name of Payment for bad and
Book balance Aging receivables
debtor nature doubtful
ending
debts
balance (%)
Within 1
Customer A Future margins 104,445,373.80 10.56 -
year
Security Within 1
Customer B 67,477,150.80 6.82 674,771.51
deposit year
Within 1
Customer C Future margins 44,490,997.20 4.50 -
year
Security Within 1
Customer D 44,121,997.00 4.46 443,739.89
deposit year
Within 1
Customer E Future margins 42,854,155.20 4.33 -
year
Total 303,389,674.00 30.67 1,118,511.40
7. Inventories
(1) Inventory by type
2023.12.31 2022.12.31
Loss
Loss
allowance
allowance
of
Type of
Carrying inventorie Carrying
Book value inventories/ Book value
amount s/ amount
costs to
costs to
fulfil a
fulfil a
contract
contract
Raw
5,233,403,630 5,233,212,599.6 7,525,170,842 7,525,170,842
materia 191,030.90 -
.52 2 .94 .94
l
Work
in
12,740,693.97 - 12,740,693.97 8,410,183.05 - 8,410,183.05
progres
s
Finishe 1,915,625,832 14,966,824.7 1,900,659,007.4 1,912,007,519 9,488,061. 1,902,519,458
d goods .20 2 8 .52 05 .47
Consu
mable
2,836,463,342 51,759,769.5 2,784,703,573.4 3,191,348,654 7,005,245. 3,184,343,408
biologi
.99 8 1 .19 27 .92
cal
assets
211
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2023.12.31 2022.12.31
Loss
Loss
allowance
allowance
of
Type of
Carrying inventorie Carrying
Book value inventories/ Book value
amount s/ amount
costs to
costs to
fulfil a
fulfil a
contract
contract
Costs
to fulfil
a 4,547,868.65 - 4,547,868.65 4,637,757.98 - 4,637,757.98
contrac
t
10,002,781,36 66,917,625.2 9,935,863,743.1 12,641,574,95 16,493,306 12,625,081,65
Total
8.33 0 3 7.68 .32 1.36
(2) Loss allowance of inventories/costs to fulfil a contract
Additions during the year Decreases during the year
Item 2023.01.01 Reversed or 2023.12.31
Provision Others Others
written-off
Raw
- 191,030.90 255,237.32 255,237.32 - 191,030.90
material
Finished 18,381,839.4 14,316,153.0 14,966,824.7
9,488,061.05 1,413,077.30 -
goods 3 6 2
Consumabl
57,738,341.3 12,983,817.0 51,759,769.5
e biological 7,005,245.27 - -
8 7 8
assets
16,493,306.3 76,311,211.7 27,555,207.4 66,917,625.2
Total 1,668,314.62 -
2 1 5 0
Provision for impairment of inventories (continued)
Evidence of net realizable Reasons for reversals or write-
Item value/remaining consideration and off of provision for impairment
upcoming cost of inventories
The estimated selling price of related
finished products minus the estimated
Used to produce products and
Raw material costs to be incurred until completion,
achieve sales
estimated sales expenses, and relevant
taxes and fees.
The estimated selling price of related
Finished goods finished products minus the estimated Goods have been sold
selling expenses and related taxes.
The estimated selling price of related
assets minus the estimated cost to be
Consumable biological Cultivate to a saleable state to
incurred until reaching the sellable state,
assets achieve sales
estimated sales expenses, and relevant
taxes and fees.
8. Assets held for sale and liabilities held for sale
2023.12.31 2022.12.31
Item Loss Carrying Loss Carrying
Book value Book value
allowance amount allowance amount
(1)Non-current
596,427.47 - 596,427.47 - - -
assets held for sale
Including: Fixed
596,427.47 - 596,427.47 - - -
assets
212
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2023.12.31 2022.12.31
Item Loss Carrying Loss Carrying
Book value Book value
allowance amount allowance amount
(2)Assets included in
disposal groups held - - - - - -
for sale
Total 596,427.47 - 596,427.47 - - -
Note: In December 2023, the management of the Group decided to sell a certain office building to a third-
party company and signed a sales contract. The proposed office building for sale was reported as Assets
held-for-sale.
9. Non-current assets due within one year
Item 2023.12.31 2022.12.31
Long-term receivables due within 1 year 1,471,921.24 925,889.24
Debt investments due within 1 year 7,500,000.00 14,000,000.00
Total 8,971,921.24 14,925,889.24
10. Other current assets
Item 2023.12.31 2022.12.31
Rental expense 7,434,630.90 6,951,880.57
Insurance expense 20,054,852.55 15,839,380.46
Miscellaneous prepaid expense 33,982,814.38 28,004,564.33
Input VAT to be deducted and approved 121,686,137.98 80,005,440.16
Overpaid taxes and charges 66,553,291.91 81,268,203.97
Loans and advances to customers 9,383,151.54 229,252,757.17
Factoring receivables 142,245,827.06 87,325,714.86
Others 25,384,556.75 19,220,831.60
Total 426,725,263.07 547,868,773.12
(1) Loans and advances to customers
① Category by method of guarantee
Item 2023.12.31 2022.12.31
Secured loans 12,719,200.00 226,127,117.07
Loan on credit - 190,000.00
Mortgage loan - 2,450,000.00
Secured / mortgage loans 2,000,000.00 5,000,000.00
Add: Interests receivable 120,709.74 588,643.80
Subtotal 14,839,909.74 234,355,760.87
Less: Provision for impairment 5,456,758.20 5,103,003.70
Total 9,383,151.54 229,252,757.17
② Category by overdue
Item 2023.12.31 2022.12.31
Not overdue 7,306,960.81 224,977,086.44
Overdue 7,412,239.19 8,790,030.63
Add: Interests receivable 120,709.74 588,643.80
Subtotal 14,839,909.74 234,355,760.87
213
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Item 2023.12.31 2022.12.31
Less: Provision for impairment 5,456,758.20 5,103,003.70
Total 9,383,151.54 229,252,757.17
(2) Factoring receivables by overdue
Item 2023.12.31 2022.12.31
Not overdue 132,820,379.09 68,769,101.24
Overdue 28,682,202.21 35,938,644.59
Add: Interests receivable 631,710.76 581,988.60
Subtotal 162,134,292.06 105,289,734.43
Less: Provision for impairment 19,888,465.00 17,964,019.57
Total 142,245,827.06 87,325,714.86
11. Debt investments
2023.12.31 2022.12.31
Item Provision Provision
Book
for Book value Book balance for Book value
balance
impairment impairment
Entrust loans 7,500,000.00 - 7,500,000.00 14,000,000.00 - 14,000,000.00
Other - - - 1,137.46 - 1,137.46
Subtotal 7,500,000.00 - 7,500,000.00 14,001,137.46 - 14,001,137.46
Less: debt
investment
7,500,000.00 - 7,500,000.00 14,000,000.00 - 14,000,000.00
due within one
year
Total - - - 1,137.46 - 1,137.46
(1) Additions, recoveries or reversals of loss allowance for the current period
The first stage The second stage The third stage
Lifetime Lifetime
Expected
Loss allowance expected credit expected credit Total
credit losses
losses (no credit losses (credit
over the next
impairment impairment has
12 months
occurred) occurred)
Balance as at January 1, 2023 - - - -
Balance as at January 1, 2023 in
the current period
- Transfer to the second stage - - - -
- Transfer to the third stage - - - -
- Transfer out to the second
- - - -
stage
- Transfer out to the first stage - - - -
Additions - - - -
Reversals - - - -
Charge-offs - - - -
Write-offs - - - -
Other changes - - - -
Balance as at December 31,
- - - -
2023
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(2) There are no actual debt investments written off in this period.
12. Loans and advances to customers
(1) Loans and advances to customers by method of guarantee
2023.12.31 2022.12.31
Provision Provision
Item for Carrying for Carrying
Book value Book value
impairme amount impairme amount
nt nt
12,719,200. 5,338,748. 7,380,451.5 226,527,117. 4,974,816. 221,552,300.
Secured loans
00 48 2 07 85 22
Loan on
700,000.00 10,500.00 689,500.00 1,690,000.00 30,187.93 1,659,812.07
credit
Mortgage
- - - 2,450,000.00 36,115.11 2,413,884.89
loan
Secured /
2,000,000.0 1,970,000.0
mortgage 30,000.00 5,000,000.00 74,126.83 4,925,873.17
0 0
loans
Add:
Interests 120,709.74 88,009.72 32,700.02 588,643.80 20,885.35 567,758.45
receivable
15,539,909. 5,467,258. 10,072,651. 236,255,760. 5,136,132. 231,119,628.
Subtotal
74 20 54 87 07 80
Less: Due
14,839,909. 5,456,758. 9,383,151.5 234,355,760. 5,103,003. 229,252,757.
within one
74 20 4 87 70 17
year
Total 700,000.00 10,500.00 689,500.00 1,900,000.00 33,128.37 1,866,871.63
(2) Loans and advances to customers by overdue：
2023.12.31 2022.12.31
Provision
Item Provision
Carrying for Carrying
Book value for Book value
amount impairme amount
impairment
nt
Not 226,877,08 3,836,326. 223,040,76
8,006,960.81 120,104.40 7,886,856.41
overdue 6.44 43 0.01
8,790,030.6 1,278,920. 7,511,110.3
Overdue 7,412,239.19 5,259,144.08 2,153,095.11
3 29 4
Add:
Interests 120,709.74 88,009.72 32,700.02 588,643.80 20,885.35 567,758.45
receivable
236,255,76 5,136,132. 231,119,62
Subtotal 15,539,909.74 5,467,258.20 10,072,651.54
0.87 07 8.80
Less: Due
234,355,76 5,103,003. 229,252,75
within 14,839,909.74 5,456,758.20 9,383,151.54
0.87 70 7.17
one year
1,900,000.0 1,866,871.6
Total 700,000.00 10,500.00 689,500.00 33,128.37
0 3
(3) Provision for impairment of loans
Stage 1 Stage 2 Stage 3
Lifetime
Lifetime
Provision for impairment of Expected credit
12-month Expected credit Total
loans losses
expected losses
(not occurred
credit losses (occurred credit
credit
impairment)
impairment)
215
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Stage 1 Stage 2 Stage 3
Lifetime
Lifetime
Provision for impairment of Expected credit
12-month Expected credit Total
loans losses
expected losses
(not occurred
credit losses (occurred credit
credit
impairment)
impairment)
Balance at 1/1/2023 3,844,345.30 3,398.67 1,288,388.10 5,136,132.07
In the current period
-Transfer into stage 2 - - - -
-Transfer into stage 3 - - - -
-Reversal back to stage 2 - - - -
-Reversal back to stage 1 - - - -
Accrual in the current period -3,724,015.59 -848.79 4,055,990.51 331,126.13
Reversal in the current period - - - -
Sold off in the current period - - - -
Write off in the current period - - - -
Due within one year and
reclassify into other current 109,829.71 2,549.88 5,344,378.61 5,456,758.20
assets
Balance at 12/31/2023 10,500.00 - - 10,500.00
13. Long-term receivables
(1) Long-term receivables by nature
2023.12.31 2022.12.31
Discounted
Item Provision Provision rate
Carrying Carrying
Book value for Book value for scope
amount amount
impairment impairment
Security
158,868,425.18 - 158,868,425.18 104,994,720.67 - 104,994,720.67
deposits
Amounts
receivable by
installments 20,232,025.89 - 20,232,025.89 21,157,915.14 - 21,157,915.14 3.43%~5.75%
for
subcontracting
Other 1,056,000.00 - 1,056,000.00 - - -
Less:
Unrealized
1,679,006.27 - 1,679,006.27 2,307,476.05 - 2,307,476.05
financing
income
Subtotal 178,477,444.80 - 178,477,444.80 123,845,159.76 - 123,845,159.76
Less: Long-
term
receivables 1,471,921.24 - 1,471,921.24 925,889.24 - 925,889.24
due within
one year
Total 177,005,523.56 - 177,005,523.56 122,919,270.52 - 122,919,270.52
216
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Note: The closing long-term receivables primarily consisted of security deposits for rental and consumption of electricity.
(2) There were no long-term receivables overdue in the Group.
(3) There were no long-term receivables derecognized in the Group in the current period.
(4) There were no such cases in the current period where the Group had transferred a long-term receivable and continued to be involved in the assets or liabilities
associated with that long-term receivable.
14. Long-term equity investments
Movements during the year Balance of
Impairment
Balance as at Balance as at provision for
Investee provision at Investment income Other Declared
12/31/2022 Increase in Decrease in Other equity Provisi-on for 12/31/2023 impairment as at
12/31/2022 recognized by comprehensive distribution of cash Other
capital capital movements impairment 31/12/2023
equity method income dividends or profits
Associates：
Foshan Haihang Xingfa
Agriculture and Animal
8,644,042.80 - - - -269,711.06 - - - - - 8,374,331.74 -
Husbandry Development
Co., Ltd.
Bangpu Seed Technology
10,518,210.65 - - - -357,434.09 - - - - - 10,160,776.56 -
Co., Ltd.
Qingdao Nongken
Beidahuang Trade - 10,910,542.10 - - - - - - - - - 10,910,542.10
Development Co., Ltd.
Vietnam Haid Yingtaogu
44,337,684.18 - 13,797,400.00 - 10,826,390.51 -788,212.16 - - - - 68,173,262.53 -
Co., Ltd.
Wujiaqu Taikun Plant
59,593,198.20 - - -21,043,107.35 17,383,096.24 - - - - - 55,933,187.09 -
Protein Co., Ltd.
Alar Ruiliheng Biological
65,816,050.69 - - -19,900,586.51 18,057,288.35 - - -13,654,194.15 - - 50,318,558.38 -
Protein Co., Ltd.
Hutubi Tiankang Plant
- - 21,700,000.00 - -351,194.04 - - - - - 21,348,805.96 -
Protein Co., Ltd.
Guangzhou Hengjuchang
Venture Capital Partnership 120,087,297.25 - - -114,301,102.20 5,769,492.25 - - -11,555,687.30 - - - -
(Limited Partnership)
Sichuan Zhihui Fishing
Machine Technology Co., 3,372,602.74 - - - -1,008,000.00 - - - - - 2,364,602.74 -
Ltd.
Guangdong Zhongyu Duck
2,813,801.66 - - -2,470,880.33 -342,921.33 - - - - - - -
Industry Co., Ltd.
Total 315,182,888.17 10,910,542.10 35,497,400.00 -157,715,676.39 49,707,006.83 -788,212.16 - -25,209,881.45 - - 216,673,525.00 10,910,542.10
217
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15. Other non-current financial assets
Category 2023.12.31 2022.12.31
Equity instrument investments 248,683,611.24 266,944,754.12
16. Investment properties
Item Buildings Land use rights Total
I. Total original book value
1. As at 12/31/2022 30,542,251.76 3,227,973.73 33,770,225.49
2. Additions during the year 4,484,917.16 39,109.72 4,524,026.88
(1) Translation of foreign currency financial
- 39,109.72 39,109.72
statements
(2) Other transfers in 4,484,917.16 - 4,484,917.16
3. Decrease during the year - - -
(1) Disposals - - -
(2) Other transfers out - - -
4. As at 12/31/2023 35,027,168.92 3,267,083.45 38,294,252.37
II. Total accumulated depreciation or amortization
1. As at 12/31/2022 6,913,637.51 - 6,913,637.51
2. Additions during the year 1,557,293.42 - 1,557,293.42
(1) Depreciation or amortization 831,400.98 - 831,400.98
(2) Others 725,892.44 - 725,892.44
3. Reductions during the year
(1) Disposals - - -
(2) Other transfers out - - -
4. As at 12/31/2023 8,470,930.93 - 8,470,930.93
III. Provision for impairment
1. As at 12/31/2022 - - -
2. Additions during the year - - -
(1) Provision - - -
(2) Others - - -
3. Decrease during the year - - -
(1) Disposals - - -
(2) Other transfers out - - -
4. As at 12/31/2023 - - -
IV. Carrying amount
1. As at 12/31/2023 26,556,237.99 3,267,083.45 29,823,321.44
2. As at 12/31/2022 23,628,614.25 3,227,973.73 26,856,587.98
218
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17. Fixed assets
Item 2023.12.31 2022.12.31
Fixed assets 16,393,897,552.33 14,933,452,189.00
Fixed assets to be disposed of 19,617.95 -
Total 16,393,917,170.28 14,933,452,189.00
(1) Fixed assets
① Fixed assets
Plant and Machinery and Electronic
Item Motor vehicles Other Total
buildings equipment equipment
I.Cost：
20,356,599,752.5
1.2023.01.01 9,951,697,761.75 8,903,048,293.84 402,083,389.42 554,041,755.58 545,728,551.94
3
2.Additions during the year 1,544,232,404.03 1,287,789,340.16 40,177,602.19 67,985,007.13 116,940,335.60 3,057,124,689.11
(1) Purchases 57,627,125.46 94,505,429.24 36,865,227.81 39,025,053.54 60,825,010.34 288,847,846.39
(2) Transfers from construction in progress 1,342,238,532.88 1,073,993,739.94 2,894,292.95 25,659,533.78 52,315,092.53 2,497,101,192.08
(3) Additions due to business combinations 143,136,587.27 123,249,722.31 982,500.00 3,246,622.39 3,928,581.28 274,544,013.25
(4) Translation differences in foreign currency
1,230,158.42 -3,959,551.33 -564,418.57 53,797.42 -128,348.55 -3,368,362.61
statements
3. Decrease during the year 24,893,393.06 81,998,290.17 18,888,012.91 11,551,309.02 18,919,111.85 156,250,117.01
(1) Disposals or write-offs 20,180,445.90 81,998,290.17 18,888,012.91 11,551,309.02 18,919,111.85 151,537,169.85
(2) Other 4,712,947.16 - - - - 4,712,947.16
11,471,036,772.7 10,108,839,343.8 23,257,474,324.6
4. As at 12/31/2023 423,372,978.70 610,475,453.69 643,749,775.69
2 3 3
II. Accumulated depreciation:
1. As at 12/31/2022 1,563,735,512.50 3,080,597,767.60 210,934,093.48 340,534,612.32 226,500,099.10 5,422,302,085.00
2. Additions during the year 452,841,026.24 848,494,502.51 56,397,106.98 97,916,479.87 99,037,673.29 1,554,686,788.89
(1) Provision 417,024,076.57 793,740,135.53 56,152,912.46 96,140,976.49 97,173,514.61 1,460,231,615.66
(2) Increase in corporation mergers 36,328,845.42 56,414,457.47 642,674.93 1,776,126.23 1,928,102.77 97,090,206.82
219
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Plant and Machinery and Electronic
Item Motor vehicles Other Total
buildings equipment equipment
(3) Translation differences in foreign currency
-511,895.75 -1,660,090.49 -398,480.41 -622.85 -63,944.09 -2,635,033.59
statements
3. Decrease during the year 9,269,773.69 65,209,755.22 16,461,109.06 10,174,693.81 13,123,689.14 114,239,020.92
(1) Disposals or write-offs 8,399,122.33 65,209,755.22 16,461,109.06 10,174,693.81 13,123,689.14 113,368,369.56
(2) Other 870,651.36 - - - - 870,651.36
4. As at 12/31/2023 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
III. Provision for impairment:
1.As at 12/31/2022 767,870.28 15,541.33 280.00 18,464.82 43,322.10 845,478.53
2. Additions during the year - - - - - -
(1) Provision - - - - - -
(2) Other - - - - - -
3. Decrease during the year 947.42 6,845.33 - 4,104.64 6,661.81 18,559.20
(1) Disposals or write-offs 947.42 6,845.33 - 4,104.64 6,661.81 18,559.20
(2) Other - - - - - -
4. As at 12/31/2023 766,922.86 8,696.00 280.00 14,360.18 36,660.29 826,919.33
IV. Carrying amount:
16,393,897,552.3
1. As at 12/31/2023 9,462,963,084.81 6,244,948,132.94 172,502,607.30 182,184,695.13 331,299,032.15
3
14,933,452,189.0
2. As at 12/31/2022 8,387,194,378.97 5,822,434,984.91 191,149,015.94 213,488,678.44 319,185,130.74
0
② There were no temporarily idle fixed asset in the current period.
③ There were no fixed assets leased out under operating leases in the current period.
220
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④ Fixed assets without ownership certificates
Reason why
Item Carrying amount certificates of
ownership are pending
House and building 771,811,590.54 In progress
⑤ The group have no offsetting of government subsidies against the book value of fixed assets in this
period.
(2) Fixed assets to be disposed of
Item 2023.12.31 2022.12.31 Reason for disposal
No longer meets the needs
Mechanical equipment 19,617.95 - of production and
operation
18. Construction in progress
Item 2023.12.31 2022.12.31
Construction in progress 687,708,201.87 1,377,352,318.21
Construction materials - -
Total 687,708,201.87 1,377,352,318.21
(1) Construction in progress
① Details of construction in progress
2023.12.31 2022.12.31
Provi Provi
sion sion
Project for Carrying for
Book value Book value Book value
impai amount impai
rmen rmen
t t
Supporting
construction
for animal 46,491,365.97 - 46,491,365.97 67,939,417.13 - 67,939,417.13
health
projects
Supporting
construction 368,677,361.3
368,677,361.38 - 995,263,895.73 - 995,263,895.73
for feed 8
projects
Supporting
construction 247,584,588.3
247,584,588.38 - 179,262,339.43 - 179,262,339.43
for farming 8
projects
Supporting
construction
1,026,265.94 - 1,026,265.94 108,859,359.30 - 108,859,359.30
for butcher
projects
Supporting
construction
23,928,620.20 - 23,928,620.20 26,027,306.62 - 26,027,306.62
for other
projects
687,708,201.8 1,377,352,318.2
Total 687,708,201.87 - 1,377,352,318.21 -
7 1
221
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② Movements of major construction in progress
Interest
Transfers Including:
Accumulated rate for
Transfers to to other Other interest Sources of
Project 2022.12.31 Additions capitalized capitaliz- 2023.12.31
fixed assets long-term decreases capitalized funding
interest ation in
assets in 2023
2023(%)
Supporting
construction
for animal 61,160,935.98 51,256,720.25 66,571,817.65 - - 2,227,020.47 583,881.02 4.05 45,845,838.58 Self-raised
health
projects
Supporting
construction Fundraising,
854,141,897.36 737,078,578.49 1,367,325,002.67 - - - - - 223,895,473.18
for feedstuff self-raised
projects
Supporting
construction
99,875,202.46 232,098,421.71 169,256,204.38 - - - - - 162,717,419.79 Self-raised
for farming
projects
Supporting
construction
107,650,546.46 32,289,542.85 139,866,649.31 - - - - - 73,440.00 Self-raised
for butcher
projects
Total 1,122,828,582.26 1,052,723,263.30 1,743,019,674.01 - - 2,227,020.47 583,881.02 4.05 432,532,171.55 -
③ There was no provision for impairment of construction in progress in the current period.
222
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19. Productive biological assets
(1) Measured by cost
Animal
Aquaculture
husbandry
Item Other Total
Seed
Breeding Pig Fingerling
shrimp
I. Original book value
660,756,727. 22,164,395. 14,481,714. 14,139,924. 711,542,761.5
1. As at 12/31/2022
25 21 87 21 4
2. Additions during the 566,714,711.4 90,152,559. 11,971,821. 22,596,392. 691,435,484.
year 4 84 64 04 96
30,482,710.6 26,080,146. 3,266,856.7 7,735,679.9 67,565,393.4
(1) Purchase
8 05 7 4 4
536,253,386. 63,979,793. 8,704,964.8 14,860,712. 623,798,856.
(2) Self-cultivated
25 68 7 10 90
(3) Additions due to
translation
-21,385.49 92,620.11 - - 71,234.62
differences in foreign
currency statements
(4) Other - - - - -
3. Decrease during the 684,099,059. 84,430,285. 19,935,440. 18,659,264. 807,124,050.
year 51 83 21 52 07
684,099,059. 84,426,414. 17,342,279. 7,235,495.1 793,103,248.
(1) Disposals
51 51 41 8 61
2,593,160.8 11,423,769. 14,020,801.4
(2) Other - 3,871.32
0 34 6
543,372,379. 27,886,669. 6,518,096.3 18,077,051. 595,854,196.
4. As at 12/31/2023
18 22 0 73 43
II. Accumulated
depreciation
184,806,214. 8,341,070.9 2,155,244.8 7,442,653.4 202,745,183.
1. As at 12/31/2022
42 8 0 3 63
2.Additions during the 149,943,792. 82,532,858. 4,241,749.9 5,608,325.4 242,326,726.
year 88 37 6 5 66
149,954,530. 82,491,090. 4,241,749.9 5,608,325.4 242,295,696.
(1) Provision
53 12 6 5 06
(2) Additions due to
translation
differences in -10,737.65 41,768.25 - - 31,030.60
foreign currency
statements
(3) Other - - - - -
3. Decrease during the 198,607,086. 79,114,077. 5,152,398.9 12,974,031. 295,847,593.
year 03 40 2 50 85
198,607,086. 79,114,077. 4,240,739.7 1,550,262.1 283,512,165.
(1) Disposal
03 40 7 6 36
11,423,769. 12,335,428.4
(2) Other - - 911,659.15
34 9
136,142,921. 11,759,851. 1,244,595.8 149,224,316.
4. As at 12/31/2023 76,947.38
27 95 4 44
III. Provision for
impairment
1. As at 12/31/2022 - - - - -
2.Additions during the
- - - - -
year
223
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Animal
Aquaculture
husbandry
Item Other Total
Seed
Breeding Pig Fingerling
shrimp
(1) Provision - - - - -
(2) Other increase - - - - -
3. Decrease during the
- - - - -
year
(1) Disposals - - - - -
(2) Other - - - - -
4. As at 12/31/2023 - - - - -
IV Carrying amount
407,229,457. 16,126,817. 5,273,500.4 18,000,104. 446,629,879.
As at 12/31/2023
91 27 6 35 99
475,950,512. 13,823,324. 12,326,470. 6,697,270.7 508,797,577.
As at 12/31/2022
83 23 07 8 91
224
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(2) There were no productive biological assets measured at fair value in the current period.
20. Right-of-use assets
House and Machinery Transportatio Electronic
Item Land use rights Others Total
building equipment n equipment equipment
I. Original book value
356,949,284.2 2,901,679,693.5
1.As at 12/31/2022 1,604,864,310.01 884,789,570.87 17,812,699.78 2,377,474.59 34,886,354.04
6 5
2.Additions during the year 216,252,924.42 185,046,161.16 49,862,614.14 5,897,234.85 2,638,094.94 1,517,629.92 461,214,659.43
(1) (1) Rent in 207,544,645.91 189,077,741.32 50,144,054.98 5,842,088.59 2,671,580.33 1,700,055.88 456,980,167.01
(2) (2) Lease liability adjustment 8,737,105.26 -4,223,848.13 270,571.14 55,146.26 -33,485.39 -182,425.96 4,623,063.18
(3) (3) Translation differences in
-28,826.75 -163,654.38 -552,011.98 - - - -744,493.11
foreign currency statements
(4) (4) Increase from business
- 355,922.35 - - - - 355,922.35
combination
(5) (5) Other - - - - - - -
3.Decrease during the year 58,410,212.56 144,309,547.15 27,847,813.72 1,479,714.41 131,332.70 7,263,378.39 239,441,998.93
(6) (1) Lease termination 58,410,212.56 144,309,547.15 27,847,813.72 1,479,714.41 131,332.70 7,263,378.39 239,441,998.93
(2) Other - - - - - - -
378,964,084.6 3,123,452,354.0
4. As at 12/31/2023 1,762,707,021.87 925,526,184.88 22,230,220.22 4,884,236.83 29,140,605.57
8 5
II. Accumulated depreciation
1. As at 12/31/2022 214,344,939.61 206,398,813.35 89,878,432.17 5,981,071.44 1,303,998.69 12,000,334.24 529,907,589.50
2. Additions during the year 136,928,129.86 134,664,990.64 49,188,571.02 5,231,837.66 887,756.13 6,524,702.49 333,425,987.80
(1) Provision 136,945,522.67 134,490,670.16 49,464,577.01 5,231,837.66 887,756.13 6,524,702.49 333,545,066.12
(2) Translation differences in
-17,392.81 -33,300.92 -276,005.99 - - - -326,699.72
foreign currency statements
(3) Increase from business
- 207,621.40 - - - - 207,621.40
combination
(4) Other - - - - - - -
3.Decrease during the year 15,921,512.74 63,370,195.69 13,199,555.79 834,947.16 92,075.71 6,684,630.42 100,102,917.51
225
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
House and Machinery Transportatio Electronic
Item Land use rights Others Total
building equipment n equipment equipment
(1) Lease termination 15,921,512.74 63,370,195.69 13,199,555.79 834,947.16 92,075.71 6,684,630.42 100,102,917.51
(2) Other decrease - - - - - - -
125,867,447.4
4.As at 12/31/2023 335,351,556.73 277,693,608.30 10,377,961.94 2,099,679.11 11,840,406.31 763,230,659.79
0
III. Provision for impairment
1.As at 12/31/2022 - - - - - - -
2.Additions during the year - - - - - - -
(1) Provision - - - - - - -
(2) Other increase - - - - - - -
3.Decrease during the year - - - - - - -
(1) Lease termination - - - - - - -
(2) Other decrease - - - - - - -
4.As at 12/31/2023 - - - - - - -
IV Carrying amount
253,096,637.2 2,360,221,694.2
1.As at 12/31/2023 1,427,355,465.14 647,832,576.58 11,852,258.28 2,784,557.72 17,300,199.26
8 6
267,070,852.0 2,371,772,104.0
2.As at 12/31/2022 1,390,519,370.40 678,390,757.52 11,831,628.34 1,073,475.90 22,886,019.80
9 5
As of the end of the period, the Company recognized lease expenses related to the short-term leases and leases of low-value assets, see Note XI.71 Lease.
21. Intangible assets
（1）Details of intangible assets
Marketing network、
Patented or Unpatented Software use rights
Item Land use rights Total
technologies and trademark rights sea use right and
others
I. Original book value
1. As at 12/31/2022 1,510,567,190.55 241,403,431.20 315,495,974.30 99,805,244.86 2,167,271,840.91
2. Additions during the year 207,005,325.02 8,911,886.79 35,664,851.35 - 251,582,063.16
226
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Marketing network、
Patented or Unpatented Software use rights
Item Land use rights sea use right and Total
technologies and trademark rights
others
(1) Purchase 150,735,252.62 1,860,000.00 3,835,358.14 - 156,430,610.76
(2) Transfers from Internal R&D - 7,000,000.00 - - 7,000,000.00
(3) Transfers from constructions in progress 28,000.00 51,886.79 31,292,980.72 - 31,372,867.51
(4) Transfers from business combination 56,242,072.40 - 536,512.49 - 56,778,584.89
(5) Other - - - - -
3. Decrease during the year 7,481,992.44 - 402,542.57 - 7,884,535.01
(1) Disposals 4,913,692.96 - 377,204.87 - 5,290,897.83
(2) Translation differences in foreign currency
2,568,299.48 - 25,337.70 - 2,593,637.18
statement
(3) Other - - - - -
4. As at 12/31/2023 1,710,090,523.13 250,315,317.99 350,758,283.08 99,805,244.86 2,410,969,369.06
II. Accumulated depreciation
1. As at 12/31/2022 186,540,619.26 147,597,436.73 157,533,257.36 45,793,467.44 537,464,780.79
2. Additions during the year 38,486,193.82 22,097,003.24 34,001,859.88 3,160,929.30 97,745,986.24
(1) Provision 36,819,397.17 22,097,003.24 33,956,330.48 3,160,929.30 96,033,660.19
(2) Transfers from business combination 1,666,796.65 - 45,529.40 - 1,712,326.05
(3) Other - - - - -
3. Decrease during the year 459,310.23 - 240,743.35 - 700,053.58
(1) Disposals 194,131.03 - 232,427.81 - 426,558.84
(2) Translation differences in foreign currency
265,179.20 - 8,315.54 - 273,494.74
statement
(3) Other - - - - -
4. As at 12/31/2023 224,567,502.85 169,694,439.97 191,294,373.89 48,954,396.74 634,510,713.45
III. Provision for impairment
227
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Marketing network、
Patented or Unpatented Software use rights
Item Land use rights sea use right and Total
technologies and trademark rights
others
1. As at 12/31/2022 - 10,307,844.71 - - 10,307,844.71
2. Additions during the year - - - - -
(1) Provision - - - - -
(2) Other - - - - -
3. Decrease during the year - - - - -
(1) Disposals - - - - -
(2) Other - - - - -
4. As at 12/31/2023 - 10,307,844.71 - - 10,307,844.71
IV. Carrying amount
1. As at 12/31/2023 1,485,523,020.28 70,313,033.31 159,463,909.19 50,850,848.12 1,766,150,810.90
2. As at 12/31/2022 1,324,026,571.29 83,498,149.76 157,962,716.94 54,011,777.42 1,619,499,215.41
The carrying amount of intangible assets arising from internal research and development is 7.34% of the total carrying amount of intangible assets at the period end.
Land use rights without ownership certificates
Item Carrying amount Reason why certificates of ownership are pending
Land use rights 43,425,691.71 In progress
22. Development costs
Project 2022.12.31 Additions duringthe year Decrease duringthe year 2023.12.31
Development costs 18,906,101.80 18,201,884.60 7,000,000.00 30,107,986.40
For details, refers to Note VI. Research and development expenses.
228
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
23. Goodwill
（1）Book value of goodwill
Additions
Decrease during
during the
the year
year
The name of the
Effect of
invested entity or the
2022.12.31 translatio 2023.12.31
matter of forming
Business n of
goodwill Disposals
Combination foreign
currency
statement
Guangzhou Runchua 50,000.00 - - - 50,000.00
Taizhou Haid 578,247.88 - - - 578,247.88
Guangzhou Haihe 76,663.70 - - - 76,663.70
Dongguan Haid 2,831,241.61 - - - 2,831,241.61
Sanshuifanling 4,841,934.68 - - - 4,841,934.68
Dalian Haid Rongchuan 32,178.11 - - - 32,178.11
Qingyuan ronghai 1,218,130.86 - - - 1,218,130.86
Zhanjiang Hiseno 4,100,845.79 - - - 4,100,845.79
PANASIA TRADING
-
RESOURCES 43,758,509.65 - - 44,500,530.73
742,021.08
LIMITED
SHENG LONG BIO-
TECH
5,641,648.04 - - -95,666.46 5,737,314.50
INTERNATIONAL
CO.,LTD
Kaifeng Haid 8,838,854.56 - - - 8,838,854.56
Guangzhou
Heshengtang 127,116.22 - - - 127,116.22
Pharmaceutical
Haid Livestock
Veterinary Research 5,809,578.76 - - - 5,809,578.76
Institute
Hunan Innovation 19,210,769.76 - - - 19,210,769.76
Sichuan Hailinger 76,410,471.64 - - - 76,410,471.64
Jiaxing Haid 8,312,415.28 - - - 8,312,415.28
Rongcheng Yandunjiao 33,087.10 - - - 33,087.10
115,902,036.2
Shandong Daxin 115,902,036.20 - - -
0
Hunan Jinhuilong 2,400,475.64 - - - 2,400,475.64
Feicheng & Ruifeng 57,092,523.20 - - - 57,092,523.20
Weifang Xuheng 30,507,361.78 - - - 30,507,361.78
Jianong Lianyungang 587,209.55 - 587,209.55 - -
KEMBANG SUBUR
INTERNATIONAL 348,096.84 - - -5,902.74 353,999.58
LTD.
Gaotang Huayu 1,455,358.51 - - - 1,455,358.51
Zhongshan Yugezhi 9,620,427.34 - - - 9,620,427.34
Gaozhou Haiyuan 2,799,980.27 - - - 2,799,980.27
229
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Additions
Decrease during
during the
the year
year
The name of the
Effect of
invested entity or the
2022.12.31 translatio 2023.12.31
matter of forming
Business n of
goodwill Disposals
Combination foreign
currency
statement
Yunnan Zhonggui 3,088,765.62 - - - 3,088,765.62
Qingdao Haihe 220,674.27 - - - 220,674.27
Hainan Zhuangmei 1,999,796.32 - - - 1,999,796.32
Jiangxi Jiabo 17,826,753.49 - - - 17,826,753.49
Jiangmen Debao 24,182,145.13 - - - 24,182,145.13
Ganzhou Lianduol 4,228,394.10 - - - 4,228,394.10
Xishui Chenke - 55,850,881.86 - - 55,850,881.86
- 510,238,954.4
Total 454,131,691.90 55,850,881.86 587,209.55
843,590.28 9
Note: When acquiring the non-controlling interests of a subsidiary, the Company records goodwill at the
amount by which the paid combination cost exceeds the Company’s share of the fair value of the acquiree’s
identifiable net assets obtained in the combination, and changes in the current period include the effect of
translation of foreign currency statement after the investment of goodwill generated by the acquisition of
overseas subsidiaries
（2）Provision for impairment of goodwill
Additions
Decreases during the
during the
year
year
Name of investee or Effect of
events from which 2022.12.31 translatio 2023.12.31
goodwill arose n of
Provision Disposal
foreign
currency
statement
Guangzhou Runchuan 50,000.00 - - - 50,000.00
Guangzhou Haihe 76,663.70 - - - 76,663.70
SHENG LONG BIO-
TECH
5,641,648.04 - - -95,666.46 5,737,314.50
INTERNATIONAL
CO.,LTD
Hunan Innovation 4,038,440.41 - - - 4,038,440.41
76,410,471.6
Sichuan Hailinger 76,410,471.64 - - -
4
Shandong Daxin 3,328,423.01 - - - 3,328,423.01
47,023,388.1
Feicheng & Runfeng 15,128,355.67 31,895,032.48 - -
5
25,284,430.9
Weifang Xuheng 14,300,670.14 10,983,760.78 - -
2
KEMBANG SUBUR
INTERNATIONAL 348,096.84 - - -5,902.74 353,999.58
LTD.
Jianong Lianyungang 587,209.55 - 587,209.55 - -
230
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Additions
Decreases during the
during the
year
year
Name of investee or Effect of
events from which 2022.12.31 translatio 2023.12.31
goodwill arose n of
Provision Disposal
foreign
currency
statement
Jiangxi Jiabo - 3,112,320.66 - - 3,112,320.66
-
165,415,452.
Total 119,909,979.00 45,991,113.92 587,209.55 101,569.2
57
0
Note: The Group calculated the recoverable amounts by discounting the expected future cash flows, which
was prepared by the management based on the past performance and expectation for future market
development within the next 5 year, and the cash flow growth rate adopted for subsequent years was
expected to be 0.00% (previous period: 0.00%). As of December 31, 2023, according to the impairment
test results, the Group recognized provision for impairment of goodwill of RMB 165,415,452.57 (At the
end of previous period: 119,909,979.00).
24. Long-term deferred expenses
Decreases during the
Additions year
Item 2022.12.31 2023.12.31
during the year Amortization Other
for the year decreases
Rental expense 1,414,552.02 185,451.04 165,979.40 - 1,434,023.66
Transfer fee for
contracted 4,892,986.22 49,763.75 1,625,664.52 - 3,317,085.45
management rights
Improvement and
164,207,685.69 63,954,321.19 56,205,610.37 - 171,956,396.51
decoration expense
Other 12,884,189.69 5,310,339.13 3,737,881.53 - 14,456,647.29
Total 183,399,413.62 69,499,875.11 61,735,135.82 - 191,164,152.91
25. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets and deferred tax liabilities not offsetting
2023.12.31 2022.12.31
Deductible or Deductible or Deductible or
Item Deferred tax
taxable taxable taxable
assets/ deferred
temporary temporary temporary
tax liabilities
differences differences differences
Deferred tax assets:
Loss of credit impairment 339,706,460.38 80,759,541.27 275,968,248.03 66,087,983.52
Provisions for impairment
77,807,321.23 13,354,884.63 36,072,813.20 8,579,536.09
of assets
Organization cost 21,267,938.38 4,255,174.46 29,904,713.68 6,224,304.01
FA Depreciation 6,823,237.93 933,580.74 6,968,133.18 910,957.48
Intangible assets
- - 81,296.08 20,324.04
amortization
2,379,004,825.0 2,184,320,203.4
Deductible losses 485,092,998.76 447,651,553.99
7 3
Accrued expense 162,730,663.14 18,084,583.38 125,381,614.75 15,060,568.78
Unrealized profits of intra-
255,702,951.70 47,732,629.19 280,407,870.37 59,912,897.43
group transactions
231
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2023.12.31 2022.12.31
Deductible or Deductible or Deductible or
Item Deferred tax
taxable taxable taxable
assets/ deferred
temporary temporary temporary
tax liabilities
differences differences differences
Gain/Loss on movements in
27,551,786.89 6,637,512.72 50,051,128.80 12,161,047.32
fair value
Deferred income 196,031,730.43 40,147,181.86 155,094,076.50 32,600,844.20
Employee compensation 190,725,246.59 33,927,157.33 230,255,789.29 40,274,956.33
Equity incentive amount - - 47,481,976.07 7,122,296.41
Advertising expense 115,892.93 19,635.06 12,099,316.27 3,016,187.56
Accrued tax deduction 308,798,901.13 46,319,835.17 308,798,901.13 46,319,835.17
1,380,844,985.3 1,282,984,742.2
Lease liabilities 250,593,173.69 232,606,703.57
5 3
5,347,111,941.1 1,027,857,888.2 5,025,870,823.0
Subtotal 978,549,995.90
5 6 1
Deferred tax liabilities：
Value-added assessment
from business combination 266,360,151.32 63,211,621.82 256,262,353.19 55,830,552.45
not under common control
Valuation of financial
instruments held for trading
220,717,586.50 54,282,438.80 29,084,922.12 3,135,037.28
and derivative financial
instruments
FA Depreciation 588,445,866.29 121,433,436.20 526,050,437.97 113,203,197.77
Intangible asset
9,301,919.58 1,608,530.89 13,296,678.41 2,175,831.68
amortization
Expected profits to be
distributed by overseas 308,798,901.13 46,319,835.17 308,798,901.13 46,319,835.17
subsidiaries
1,314,563,113.0 1,233,910,263.0
Right of use assets 237,111,458.78 222,849,038.04
6 8
Other 107,689,115.32 16,197,204.24 73,850,737.53 11,077,610.63
2,815,876,653.2 2,441,254,293.4
Subtotal 540,164,525.90 454,591,103.02
0 3
(2) Deferred tax assets or liabilities presented on a net offset basis
Offset amount Deferred tax Offset mount Deferred tax
of deferred tax assets or of deferred tax assets or
assets and liabilities after assets and liabilitie after
Item
liabilities at offset at the liabilities at offset at the
the end of the end of the the end of last end of last
period period year year
Deferred tax assets 354,408,026.34 673,449,861.92 - 978,549,995.90
Deferred tax liabilities 354,408,026.34 185,756,499.56 - 454,591,103.02
(3) Details of unrecognized deferred tax assets from deductible temporary differences and deductible losses
Item 2023.12.31 2022.12.31
Deductible temporary differences 31,676,614.20 38,788,327.82
Deductible losses 145,368,419.81 398,842,118.67
Total 177,045,034.01 437,630,446.49
(4) Expiration of deductible tax losses for unrecognised deferred tax assets
232
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Year 2023.12.31 2022.12.31 Note
2023 —— 17,139,807.43
2024 34,435,436.48 15,356,172.30
2025 30,857,785.68 75,300,644.47
2026 23,988,649.48 106,565,960.38
2027 37,975,287.88 184,479,534.09
2028 18,111,260.29 ——
Total 145,368,419.81 398,842,118.67
26. Other non-current assets
2023.12.31 2022.12.31
Imp
air-
Item Impairme men
Book balance nt Book value Book balance t Book value
provision prov
is-
ion
Prepayments for
169,583,168.2 131,068,641.8 131,068,641.
equipment and - 169,583,168.25 -
5 9 89
constructions
Prepayments for
acquisition of 62,001,878.9
70,103,566.22 - 70,103,566.22 62,001,878.93 -
other long-term 3
assets
Factoring
accounts 35,000,000.00 525,000.00 34,475,000.00 - - -
receivable
274,686,734.4 193,070,520.8 193,070,520.
Total 525,000.00 274,161,734.47 -
7 2 82
27. Assets with limited ownership or use rights
2023.12.31
Item Ending carrying
Reason for restriction
amount
Cash at bank and Land reclamation deposit, letter of credit deposit, guarantee
108,947,754.71
on hand deposit, bank guarantee, etc.
Endorsed but unexpired notes receivable that have not been
Bills receivable 67,245.20
terminated for confirmation
Fixed assets 6,189,438.42 Property preservation
Total 115,204,438.33
Note: Jiangxi Jiabo Biotechnology Co., Ltd., a subsidiary of the company, was applied for property
preservation due to litigation, involving an amount of RMB 2.3617 million in current period.
28. Short-term loans
(1) Classification of short-term loans
Item 2023.12.31 2022.12.31
Credit loan 1,378,714,852.59 2,662,948,081.55
Guaranteed loan 11,000,000.00 233,314,100.00
Bill discounted - 3,311,269.56
Accrued interest 6,421,360.41 11,235,801.45
Total 1,396,136,213.00 2,910,809,252.56
233
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Note: Unsecured loans included guaranteed loans provided by inter-group members.
(2)There were no overdue short-term loans as of the end of current period.
29. Held-for-trading financial liabilities
Item 2023.12.31 2022.12.31
Held-for-trading financial liabilities 22,203,844.99 46,533,780.00
Including: Derivative financial liabilities 22,203,844.99 46,533,780.00
Total 22,203,844.99 46,533,780.00
30. Notes payable
Item 2023.12.31 2022.12.31
Banker acceptance bills 5,155,754,992.46 2,122,850,987.41
Domestic Letter of Credit 741,859,888.52 1,379,357,530.92
Total 5,897,614,880.98 3,502,208,518.33
Note: There were no notes payable due and unpaid at the end of this period.
31. Accounts payable
Item 2023.12.31 2022.12.31
Accounts payable with aging within one year 4,444,284,967.32 5,165,514,814.36
Accounts payable with aging over one year 299,009,532.73 175,664,621.89
Total 4,743,294,500.05 5,341,179,436.25
Note: There were no significant accounts payable with aging over one year.
32. Advances from customers
Item 2023.12.31 2022.12.31
Rental fee 4,983,594.55 3,922,795.42
Other 499,559.00 -
Total 5,483,153.55 3,922,795.42
Note: There were no significant advances from customers with aging over one year.
33. Contract liabilities
Item 2023.12.31 2022.12.31
Advances from customers 1,937,760,139.45 1,720,519,173.21
Less: Contract liabilities included in other non-current liabilities 15,546,408.08 -
Total 1,922,213,731.37 1,720,519,173.21
Note: There were no significant contract liabilities with aging over one year.
34. Employee benefits payable
Accrued Decreased
Item 2022.12.31 during the during the 2023.12.31
year year
1,407,074,253. 5,643,626,759. 5,372,361,492. 1,678,339,521.
Short-term employee benefits
38 91 02 27
Post-employment benefits -
1,655,707.51 257,361,094.82 257,893,919.00 1,122,883.33
defined contribution plans
Termination benefits 882,438.80 11,788,087.77 9,533,241.63 3,137,284.94
Other benefits due within one
- - - -
year
1,409,612,399. 5,912,775,942. 5,639,788,652. 1,682,599,689.
Total
69 50 65 54
⑴ Short-term employee benefits
234
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Accrued Decreased
Item 2022.12.31 during during 2023.12.31
the year the year
4,872,510,272.2 1,288,064,031.
Salaries, bonus, allowances 1,091,136,263.08 4,675,582,504.13
5 20
Staff welfare 12,045,774.49 195,435,591.35 190,895,486.64 16,585,879.20
Social insurances 185,405.07 130,964,998.81 130,688,272.15 462,131.73
Including: 1. Medical
91,805.73 113,788,598.41 113,462,837.13 417,567.01
insurance
2. Work-related injury
58,243.36 9,017,742.04 9,067,229.53 8,755.87
insurance
3. Maternity insurance 11,482.16 2,229,788.33 2,241,270.49 -
4. Serious disease subsidies 23,873.82 5,928,870.03 5,916,935.00 35,808.85
Housing Fund 139,421.69 50,319,790.09 50,268,335.43 190,876.35
Labor union fees 1,236,350.32 10,074,909.48 9,964,401.15 1,346,858.65
Staff and workers’
503,033.31 17,231,252.69 16,237,364.14 1,496,921.86
education fee
Short-term profit - sharing
301,828,005.42 367,089,945.24 298,725,128.38 370,192,822.28
plan
5,643,626,759.9 1,678,339,521.
Total 1,407,074,253.38 5,372,361,492.02
1 27
⑵ Defined contribution plans
Accrued Decreased
Item 2022 during the during the 2023
year year
Post-employment benefits 1,655,707.51 257,361,094.82 257,893,919.00 1,122,883.33
Including: 1. Basic pension
1,612,206.73 248,091,702.82 248,594,447.82 1,109,461.73
insurance
2. Unemployment insurance 43,500.78 9,269,392.00 9,299,471.18 13,421.60
3. Annuity - - - -
Total 1,655,707.51 257,361,094.82 257,893,919.00 1,122,883.33
35. Taxes payable
Item 2023.12.31 2022.12.31
VAT 13,034,800.22 12,462,506.29
City construction tax 491,059.96 477,641.20
Corporate income tax 203,794,032.48 150,747,448.70
Individual income tax 11,063,298.47 22,035,819.03
Property tax 10,706,235.94 6,836,833.30
Stamp tax 14,493,966.10 12,543,670.05
Educational surcharges 380,644.79 429,867.18
Land use tax 3,438,211.96 3,038,500.74
Environmental protection tax 423,429.96 423,954.50
Water resource tax 160,136.74 247,227.30
Tax withheld 1,078,656.78 1,168,090.73
Others 815,460.68 416,887.32
235
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023.12.31 2022.12.31
Total 259,879,934.08 210,828,446.34
36. Other payables
Item 2023.12.31 2022.12.31
Interests payable - -
Dividends payable 3,886,356.36 3,279,944.00
Other payables 835,290,015.21 465,456,374.76
Total 839,176,371.57 468,736,318.76
(1) Dividends payable
Item 2023.12.31 2022.12.31
Projects of minority shareholder 3,886,356.36 3,279,944.00
(2) Note: There were no significant dividends payable with aging over one year.
(3) Other payables (listed by nature)
Item 2023.12.31 2022.12.31
Security deposits 422,451,414.31 324,136,553.24
Expense reimbursement 15,885,044.34 9,226,075.12
Rents 30,080,800.22 29,046,714.16
Employee stock ownership plan payments 240,880,932.60 -
Payables to external parties 112,510,967.06 89,973,758.84
Payables for equity transfer 6,081,935.84 7,638,716.74
Other 7,398,920.84 5,434,556.66
Total 835,290,015.21 465,456,374.76
Note: There were no significant other payables with aging over one year.
37. Non-current liabilities due within one year
Item 2023.12.31 2022.12.31
Long-term loan due within one year 717,771,010.44 935,157,182.09
Long-term payables due within one year 39,348,128.58 12,700,230.98
Lease liability due within one year 298,082,375.56 310,640,401.87
Total 1,055,201,514.58 1,258,497,814.94
⑴ Long-term loan due within one year
Item 2023.12.31 2022.12.31
Guaranteed loans 3,000,000.00 -
Unsecured loans 709,740,701.22 920,547,864.04
Accrued interest 5,030,309.22 14,609,318.05
Total 717,771,010.44 935,157,182.09
⑵ Long-term payables due within one year
Item 2023.12.31 2022.12.31
Security deposits 100,000.00 100,000.00
Sea area usage fee 3,374,282.08 3,374,282.08
Other 35,873,846.50 9,225,948.90
Total 39,348,128.58 12,700,230.98
38. Other current liabilities
236
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023.12.31 2022.12.31
Water and electricity 80,392,840.14 76,485,710.23
Steam or other fuel or power charges 37,256,272.50 38,682,228.89
Transportation and warehousing charges 24,347,868.09 25,391,165.59
Office and meeting service charges 25,589,547.39 22,719,072.82
Travel charges 21,151,616.09 16,970,098.73
Rents 2,914,969.89 1,863,857.40
Vehicle costs 17,327,056.83 16,546,669.62
Research and development expenses 3,740,190.07 3,255,888.85
Business promotion expenses 13,210,036.60 10,461,949.12
Repair costs 4,325,870.38 3,645,503.08
Entrusted cultivation charges 282,756,366.38 245,383,230.15
Output VAT to be transferred 35,816,108.60 22,738,049.75
Guarantee compensation reserve 18,585,055.12 18,385,511.11
Hedged items - procurement commitments and foreign exchange
- 18,733,646.90
forwards
Other 43,461,966.67 38,435,890.00
Total 610,875,764.75 559,698,472.24
39. Long-term loans
Interest
Item 2023.12.31 Interest rate 2022.12.31
rate
2.8%-3.6%
3,712,999,490. 5YLPR- 5,986,955,063.4 1.59%~4.61
Credit loans
93 5BP~20BP 6 %
6M LIBOR+1.7%
4.00%
Guaranteed loans 27,500,000.00 - -
1YLPR+50BP
Accrued interest 5,030,309.22 - 14,609,318.05 -
3,745,529,800. 6,001,564,381.5
Subtotal - -
15 1
Less: long-term loans due within
717,771,010.44 935,157,182.09
one year
3,027,758,789. 5,066,407,199.4
Total - -
71 2
40. Lease liability
Item 2023.12.31 2022.12.31
Lease liability 2,414,446,543.18 2,432,879,154.33
Less: unrecognized financing costs 496,815,621.25 511,812,331.16
Subtotal 1,917,630,921.93 1,921,066,823.17
Less: lease liability due within one year 298,082,375.56 310,640,401.87
Total 1,619,548,546.37 1,610,426,421.30
Note: During 2023 the interest expense of lease liabilities was RMB 77.4672 million, which is included in
the financial expense - unrecognized financing costs.
41. Long-term payables
Item 2023.12.31 2022.12.31
Long-term payables 65,410,255.77 53,910,873.61
237
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023.12.31 2022.12.31
Special payables - -
Total 65,410,255.77 53,910,873.61
Long-term payables (listed by nature of payment)
Item 2023.12.31 2022.12.31
Guarantee deposit 19,038,898.28 7,555,433.97
Obligations under equity transfers 5,000,000.00 5,000,000.00
Sea use right fee 33,018,248.52 36,446,248.53
Other payables 55,462,090.99 28,430,116.95
Less: Unrecognized financing costs 7,760,853.44 10,820,694.86
Subtotal 104,758,384.35 66,611,104.59
Less: long-term payables due within one year 39,348,128.58 12,700,230.98
Total 65,410,255.77 53,910,873.61
42. Long-term employee benefits payable
Item 2023.12.31 2022.12.31
Post-employment benefits-net liabilities of defined benefit plans - -
Dismissal benefits - -
Long-term profit sharing plans 483,651,182.01 494,786,634.21
Subtotal 483,651,182.01 494,786,634.21
Less: Long-term employee benefits payable due within one year 370,192,822.28 301,828,005.42
Total 113,458,359.73 192,958,628.79
43. Deferred income
Additions Reductions
Reason for
Item 2022.12.31 during the during the 2023.12.31
deferral
year year
Receipt of
Government
299,528,716.40 82,995,715.14 47,712,282.65 334,812,148.89 government
grant
grant
For the government grant which was recognized as deferred income, refer to Note VIII.Government grant.
44. Other non-current liabilities
Item 2023.12.31 2022.12.31
Contingent consideration 26,000,000.00 -
Advance discount payment 15,546,408.08 -
Unearned rent 12,448,243.65 145,885.76
Total 53,994,651.73 145,885.76
45. Share capital (Unit: share)
Movements during the year (+, -)
Shares
Item 2022.12.31 Stock converte 2023.12.31
New
dividen d from Other Subtotal
issuance
ds capital
reserve
Total 1,661,161,061. 2,588,909.0 2,588,909.0 1,663,749,970.
- - -
shares 00 0 0 00
238
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Note: The increase in share capital during this reporting period is the number of shares increased due to the
exercise of equity incentive objects.
46. Capital reserve
Additions during Reductions
Item 2022.12.31 2023.12.31
the year during the year
Share premium 4,475,375,823.14 317,815,985.60 50,212,748.59 4,742,979,060.15
Other capital
824,685,254.83 12,331,583.33 164,454,814.72 672,562,023.44
reserves
Total 5,300,061,077.97 330,147,568.93 214,667,563.31 5,415,541,083.59
Note:
(1) The current increase or decrease in capital stock premium is the difference between the amount
received or paid by the minority shareholder equity exchange and the share of net assets of the
subsidiary enjoyed at the time of transfer.
(2) The increase in other capital reserves in the current period is the portion of the equity settled share-
based payment amount implemented in the equity incentive plan that belongs to the parent company
(see Note XII for details). The decrease in this period is mainly due to the adjustment of other capital
reserve funds where the deductible amount before tax for equity incentives exceeds the recognized cost.
47. Treasury stock
Reductions
Additions during
Item 2022.12.31 during 2023.12.31
the year
the year
Repurchase stock 792,321,152.16 300,081,705.48 - 1,092,402,857.64
Note：The increase in this period is the amount paid by the Company for repurchasing the Company's
stock for equity incentive plans or employee stock ownership plans.
48. Other comprehensive income
Other comprehensive income attributable to the parent company in the balance sheet：
Movements during the year
Less: previously
Item 2022.12.31 recognized in 2023.12.31
After-tax
OCI amount
amount
transferred to
profit or loss
I.Items that will not be
reclassified to profit or - - - -
loss
II.Items that may be
300,049,768.4 299,040,374.3
reclassified to profit or -1,009,394.14 -
5 1
loss
1. Cash flow hedging 343,105,696.1 357,429,884.6
14,324,188.55 -
reserves 0 5
2. Translation differences
- -
in foreign currency -15,333,582.69 -
43,055,927.65 58,389,510.34
financial statement
Other comprehensive 300,049,768.4 299,040,374.3
-1,009,394.14 -
income total 5 1
Other comprehensive income attributable to the parent company in the income statement:
Item Movements during the year
239
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Less:
previously
recorded in Less: After
After tax
other Less: tax
attributabl
Before-tax comprehensive Income attributable
e to the
amount income and tax to minority
parent
transferred to expenses shareholder
company
profit or loss in s
the current
period
I.Items that will not be
reclassified to profit or - - - - -
loss
II.Items that may be - -
53,774,179
reclassified to profit or 388,777,389.36 343,105,696.10 7,093,092.0 1,009,394.1
.49
loss 9 4
1. Cash flow hedging 53,774,179 14,324,188.
411,204,064.14 343,105,696.10 -
reserves .49 55
2. Translation differences - -
in foreign currency -22,426,674.78 - - 7,093,092.0 15,333,582.
financial statement 9 69
- -
Other comprehensive 53,774,179
388,777,389.36 343,105,696.10 7,093,092.0 1,009,394.1
income total .49
9 4
Note: The net amount of other comprehensive income after tax incurred in the current period is RMB -
8,102,486.23. Among them, the net amount of other comprehensive income attributable to the shareholders
of the parent company after tax incurred in the current period is RMB-1,009,394.14; the net amount after
tax of other comprehensive income attributable to minority shareholders in the current period is RMB-
7,093,092.09
49. Special reserve
Additions during the Reductions during the
Item 2022.12.31 2023.12.31
year year
Safety production
- 398,575.53 - 398,575.53
cost
Note：The special reserve increased in this period is the safety production cost extracted by the Company
based on 1.00% of the actual operating income of the previous year's ordinary freight business in
accordance with relevant regulations.
50. Surplus reserve
Additions Reductions
Item 2022.12.31 2023.12.31
during the year during the year
Statutory surplus reserve 830,580,530.50 1,294,454.50 - 831,874,985.00
Note：According to the Company's articles of association, if the cumulative amount of the statutory
reserve fund is more than 50% of the registered capital of the company, the surplus reserve may not be
withdrawn. In this period, statutory surplus reserves will be withdrawn according to the limit.
51. General risk preparation
Additions Reductions
Item 2022.12.31 2023.12.31
during the year during the year
General risk allowance 4,834,904.00 1,556,581.55 3,791,705.35 2,599,780.20
52. Retained earnings
Amount in Amount in Appropriation
Item current period previous period or distribution
percentage
Retained earnings as at 12/31/2022 (before 10,528,173,146. 7,894,011,164.8
--
adjustment) 82 2
240
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Amount in Amount in Appropriation
Item current period previous period or distribution
percentage
Total adjustments for opening retained
- 4,418,939.03 --
earnings(“+” for increase; “–” for decrease)
Retained earnings as at 01/01/2023 (after 10,528,173,146. 7,898,430,103.8
adjustment) 82 5
Add: Net profits for the year attributable to 2,741,256,374.9 2,957,330,734.5
--
shareholders of the Company 8 6
Less: Appropriation for statutory surplus
1,294,454.50 84,124,473.19
reserve
Appropriation for general risk preparation -2,235,123.80 -4,170,124.55
Common Stock dividends payable 744,065,037.90 247,633,342.95
12,526,305,153. 10,528,173,146.
Retained earnings as at 12/31/2023
20 82
Note: Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and related
new regulations, the retained earnings at the beginning of the period was affected by RMB 4,418,939.03.
The impact of changes in accounting policies on retained earnings at the beginning of the period can be
found in Note III. 39. Significant changes in accounting policies & accounting estimates.
241
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
53. Operating income and operating cost
(1) Operating income and operating cost
2023 2022
Item
Income Cost Income Cost
Principal activities 115,961,051,970.83 106,239,082,310.98 104,609,239,672.05 94,975,445,630.46
Other operating activities 156,116,772.14 41,536,154.70 106,177,813.87 28,134,469.77
Total 116,117,168,742.97 106,280,618,465.68 104,715,417,485.92 95,003,580,100.23
(2) Operating income and operating cost by products
2023 2022
Main product category
Income Cost Income Cost
Feed sales 95,956,237,795.73 87,775,522,325.73 84,892,419,774.07 78,060,758,981.95
Animal protection products sales 1,094,616,254.63 552,554,966.91 1,044,659,775.65 535,805,808.94
Agricultural sales 15,492,073,854.16 14,526,212,163.23 12,455,629,441.65 10,354,911,388.63
Trade business 3,400,500,883.54 3,384,436,709.49 6,167,203,348.23 6,023,530,323.85
Others 173,739,954.91 41,892,300.32 155,505,146.32 28,573,596.86
Total 116,117,168,742.97 106,280,618,465.68 104,715,417,485.92 95,003,580,100.23
(3) Operating income and operating costs are divided according to the time of commodity transfer
2023
Item Sales of goods Other Total
Income Cost Income Cost Income Cost
115,943,428,788.0 106,238,726,165.3 115,961,051,970.8 106,239,082,310.9
Operating income from principal activities 17,623,182.77 356,145.62
6 6 3 8
115,943,428,788.0 106,238,726,165.3 115,943,428,788.0 106,238,726,165.3
Including: Satisfied at a point in time - -
6 6 6 6
Satisfied over time - - 17,623,182.77 356,145.62 17,623,182.77 356,145.62
Operating income from other operating 41,536,154.7
- - 156,116,772.14 156,116,772.14 41,536,154.70
activities 0
128,420,806.0 21,838,194.1
Including: Satisfied at a point in time - - 128,420,806.03 21,838,194.14
3 4
242
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
2023
Item Sales of goods Other Total
Income Cost Income Cost Income Cost
Satisfied over time - - - - - -
19,697,960.5
Operating income from leases - - 27,695,966.11 27,695,966.11 19,697,960.56
6
115,943,428,788.0 106,238,726,165.3 173,739,954.9 41,892,300.3 106,280,618,465.6
Total 116,117,168,742.97
6 6 1 2 8
54. Taxes and surcharges
Item 2023 2022
Urban maintenance and construction tax 5,041,886.30 5,093,481.64
Educational surcharge and Local educational surcharge 3,972,223.23 4,006,079.50
Stamp duty 61,678,078.11 56,295,735.80
Property tax 44,872,674.00 36,145,169.11
Land usage tax 17,787,104.55 15,625,234.11
Environmental protection tax 1,760,264.94 1,604,112.87
Embankment protection cost 1,166,422.99 1,890,724.63
Others 2,275,992.14 2,607,693.02
Total 138,554,646.26 123,268,230.68
243
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
55. Selling and distribution expenses
Item 2023 2022
Employee compensation 1,699,956,672.18 1,482,738,666.62
Travel expense 283,108,064.00 252,806,732.56
Business promotion expense 197,466,970.50 139,825,359.25
Equity incentive expense -72,397.59 42,154,913.32
Others 78,683,703.11 63,461,396.48
Total 2,259,143,012.20 1,980,987,068.23
56. General and administrative expenses
Item 2023 2022
Employee compensation 1,623,742,542.38 1,589,278,406.89
Travel expense 124,644,915.87 92,657,962.86
Office expense 546,650,566.56 511,922,443.74
Training and consulting service charges 127,770,405.44 81,058,612.74
Equity incentive expense 14,074,525.92 139,024,865.82
Others 179,856,191.23 169,872,934.71
Total 2,616,739,147.40 2,583,815,226.76
57. Research and development expenses
Item 2023 2022
Employee compensation 467,907,240.17 433,776,962.76
Materials 116,282,096.49 94,505,156.07
Travel expense 44,886,389.38 33,307,843.10
Office expense 121,125,274.27 100,994,669.97
Training and consulting service charges 17,734,028.97 10,130,093.83
Expense on R&D entrusted to external parties 12,873,488.50 6,258,201.21
Equity incentive expense 569,143.97 30,003,920.43
Others 3,502,752.28 2,258,642.76
Total 784,880,414.03 711,235,490.13
58. Financial expenses
Item 2023 2022
Total interest expenses 434,808,591.01 493,321,918.85
Less: Interest income 64,284,395.34 47,519,969.08
Add: Net exchange losses/gains -1,087,065.87 11,010,010.53
Add: Unrecognized financing
77,467,207.57 81,621,735.49
costs
Add: Bank charges 65,602,052.88 58,330,386.82
Total 512,506,390.25 596,764,082.61
59. Other income
Item 2023 2022
Government grant 91,934,088.91 134,749,089.80
Other items arising in the daily operating activities that should be
20,704,196.88 8,329,314.23
charged directly to other income
244
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023 2022
Total 112,638,285.79 143,078,404.03
Note: For the details of government grant, refer to Note VIII Government grant.
60. Investment income
Item 2023 2022
Income from long-term equity investments accounted for using the
49,850,706.07 47,855,406.41
equity method
Investment income from disposal of long-term equity investments 30,991,423.96 -5,963,295.45
Investment income from holding held-for-trading financial assets 1,169,386.67 7,465,210.66
Interest income from debt investments 326,833.38 530,942.74
Investment income from holding other non-current financial assets 1,503,844.94 16,905,664.74
Investment income from disposal of held-for-trading financial assets 162,325,000.74 201,589,342.10
Financial assets measured at amortized cost cease to recognize earnings -521,219.60 -1,262,095.66
Total 245,645,976.16 267,121,175.54
61. Gains/ (losses) from changes in fair value
Source of the changes in fair value 2023 2022
Held-for-trading financial assets -19,067,696.33 11,233,447.63
Held-for-trading financial liabilities 19,611,136.00 -32,445,293.88
Other non-current financial assets -16,802,796.88 -4,737,266.30
Other 1,099,948.31 -
Total -15,159,408.90 -25,949,112.55
62. Credit impairment losses ("-" for losses)
Item 2023 2022
Loss allowance on accounts receivable -169,804,518.53 -133,025,192.76
Loss allowance on loans, factoring and financial
-28,046,262.70 -18,799,943.17
guarantees
Total -197,850,781.23 -151,825,135.93
63. Impairment losses ("-" for losses)
Item 2023 2022
Impairment losses on inventories -75,228,096.30 -16,984,381.62
Impairment losses on long-term equity investments - -5,455,271.05
Impairment losses on goodwill -45,991,113.92 -29,429,025.81
Total -121,219,210.22 -51,868,678.48
64. Gains from assets disposal ( "-" for losses)
Item 2023 2022
Gains from disposals of fixed assets -5,577,057.30 1,142,121.34
Gains from disposals of intangible assets 197,180.00 -
Gains from disposals of right-of-use assets 8,394,760.98 5,580,762.47
Total 3,014,883.68 6,722,883.81
65. Non-operating income
Amount included in
non-recurring gains
Item 2023 2022
or losses for the
current year
245
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Amount included in
non-recurring gains
Item 2023 2022
or losses for the
current year
Gain on disposal of non-current
assets resulted from damage or 7,682.89 310,096.64 7,682.89
obsolescence
Insurance compensation 28,058,404.73 12,676,185.71 28,058,404.73
Debt repayment income 8,093,105.72 7,506,366.68 8,093,105.72
Negative goodwill - 812,610.97 -
Default income 8,239,912.17 9,639,820.99 8,239,912.17
Compensation 11,066,339.57 4,515,082.73 11,066,339.57
Others 9,902,368.73 8,395,703.33 9,902,368.73
Total 65,367,813.81 43,855,867.05 65,367,813.81
66. Non-operating expenses
Amount included in non-
Item 2023 2022 recurring gains or losses
for the current year
Loss on disposal of non-current
assets resulted from damage or 25,009,313.47 46,910,039.94 25,009,313.47
obsolescence
Donation expenditure 17,918,740.52 23,201,324.51 17,918,740.52
Loss in damage and scrap of
2,946,296.82 5,935,884.98 2,946,296.82
inventory
Default expenditure 12,955,120.28 23,996,599.29 12,955,120.28
Fines forfeits and penalty
4,228,645.49 4,856,843.82 4,228,645.49
expenditure
Others 35,953,465.76 19,277,469.53 35,953,465.76
Total 99,011,582.34 124,178,162.07 99,011,582.34
67. Income tax expenses
(1) Details of income tax expenses
Item 2023 2022
Current tax expense for the year based on tax law and
659,721,751.81 632,068,644.45
regulations
Changes in deferred tax assets/liabilities -13,084,732.13 21,988,473.95
Total 646,637,019.68 654,057,118.40
(2) Reconciliation between income tax expenses and profits/losses before tax:
Item 2023 2022
Profits/losses before tax 3,518,152,643.90 3,822,724,528.68
Expected income tax expenses at applicable tax rate 527,722,896.59 573,408,679.30
Effect of different tax rates applied by subsidiaries 507,543,812.39 421,981,563.79
Adjustment to income tax of previous years -7,511,208.89 12,539,019.95
Effect of non-taxable income -287,357,033.54 -389,281,309.65
Effect of non-deductible costs, expenses and losses 28,452,091.81 108,492,193.49
Effect on opening balance of deferred tax due to changes
2,126,544.94 -28,748,149.82
in tax rate
246
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023 2022
Effect of using the deductible temporary differences or
deductible losses for which no deferred tax asset was -100,672,357.86 -628,337.35
recognized in previous
Effect of deductible temporary differences or deductible
losses for which no deferred tax asset was recognized this 38,124,517.42 7,151,970.41
year
Effect of research and development expenses over-
-61,792,243.18 -50,858,511.72
deduction
Income tax expenses 646,637,019.68 654,057,118.40
68. Notes to Cash flow statement
(1) Cash received from other operating activities
Item 2023 2022
Operating receivables 1,102,004,570.92 829,193,429.43
Fiscal subsidies 129,565,336.22 151,493,300.61
Interest income of deposit 71,860,766.32 47,519,969.08
Others 61,815,496.94 43,275,275.35
Total 1,365,246,170.40 1,071,481,974.47
(2) Cash paid for other operating activities
Item 2023 2022
Operating payables 956,025,271.35 1,360,321,003.99
Other expenses 1,577,575,961.07 1,261,621,277.02
Total 2,533,601,232.42 2,621,942,281.01
(3) Cash received from other investing activities
Item 2023 2022
Collection of deposit of long-term assets 50,019,465.23 10,514,283.98
Obtaining net cash received by subsidiaries - 60,220.93
Total 50,019,465.23 10,574,504.91
(4) Cash paid for other investing activities
Item 2023 2022
Deposit of acquisitions of long-term assets、bills、letters of credit etc. 23,453,842.66 56,933,976.70
(5) Cash received for other financing activities
Item 2023 2022
Bills, loans, deposit of letters of credit 43,770,813.17 17,015,584.74
Bank swap settlement funds 74,001,114.50 -
Stock ownership plan subscription funds 240,880,932.60 -
Total 358,652,860.27 17,015,584.74
(6) Cash paid for other financing activities
Item 2023 2022
Bills, loans, deposit of letters of credit 36,447,899.07 70,355,377.55
Restricted stock repurchase 300,070,255.47 -
Payment for loans and interests of external
- 1,562,500.00
correspondents
Payment for financial leasing 356,284,774.41 363,189,867.67
247
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023 2022
Expense of bonds issuing - 3,470,198.72
Bank swap settlement funds 48,176,128.00 -
Payment for acquisition of non-controlling interest in
420,563,661.93 58,929,504.49
current and previous year
Total 1,161,542,718.88 497,507,448.43
(7) Movements in liabilities arising from financing activities
2023
Item 2022
Cash inflow Cash outflow
Short-term loan 2,910,809,252.56 8,713,098,007.27 10,445,436,272.96
Long-term loan 6,001,564,381.51 1,091,425,683.57 3,512,934,610.99
Lease liability 1,921,066,823.17 - 356,284,774.41
Total 10,833,440,457.24 9,804,523,690.84 14,314,655,658.36
（Continued）
Non-cash movement
Item 2023
Interest accrued Fair value changes Other
Short-term
162,912,256.68 - 54,752,969.45 1,396,136,213.00
loan
Long-term
208,305,506.51 - -42,831,160.45 3,745,529,800.15
loan
Lease liability 77,467,207.57 - 275,381,665.60 1,917,630,921.93
Total 448,684,970.76 - 287,303,474.60 7,059,296,935.08
Note: The other of Short-term loan and long-term loan are mainly the opening balance amount of non-same
controlled consolidated enterprises and the exchange rate changes of foreign currency loan during the
period. The other of the lease liability is mainly new leases in the current period.
69. Supplementary information on cash flow statement
(1) Supplement to cash flow statement
Item 2023 2022
1. Reconciliation of net profit/loss to cash flows from
operating activities：
Net profit/loss 2,871,515,624.22 3,168,667,410.28
Add: Provisions for impairment losses 121,219,210.22 51,868,678.48
Provisions for credit losses 197,850,781.23 151,825,135.93
Depreciation of fixed assets, depreciation of
investment properties, and depreciation of productive 1,703,358,712.70 1,462,444,685.72
biological assets
Depreciation of right-of-use assets 333,545,066.12 329,235,542.65
Amortization of intangible assets 96,033,660.19 89,628,217.92
Amortization of long-term deferred expenses 61,735,135.82 56,807,419.96
Losses from disposal of fixed assets, intangible assets,
-3,014,883.68 -6,722,883.81
and other long-term assets ("-" for gains)
Losses on retirement of fixed assets ("-" for gains) 25,001,630.58 46,599,943.30
Losses from changes in fair value ("-" for gains) 15,159,408.90 25,949,112.55
Financial expenses ("-" for income) 520,191,951.07 574,943,654.34
Losses arising from investment ("-" for gains) -245,645,976.16 -267,121,175.54
248
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023 2022
Decrease in deferred tax assets ("-" for increase) 306,745,783.71 -47,283,849.84
Increase in deferred tax liabilities ("-" for decrease) -282,612,682.31 69,272,323.79
Decrease in gross inventories ("-" for increase) 3,219,695,285.97 -3,678,052,574.02
Decrease in operating receivables ("-" for increase) 403,337,820.29 -611,296,935.98
Increase in operating payables ("-" for decrease) 3,301,925,234.56 5,167,163,903.56
Expense of equity incentive 14,515,002.80 220,848,526.26
Others 37,817,933.31 13,117,115.36
Net cash flows from operating activities 12,698,374,699.54 6,817,894,250.91
2. 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 as at 12/31/2023 5,367,248,673.44 2,122,149,250.34
Less: cash as at 12/31/2022 2,122,149,250.34 1,681,109,971.07
Add: cash equivalents as at 12/31/2023 - -
Less: cash equivalents as at 12/31/2022 - -
Net increase/decrease in cash and cash equivalents 3,245,099,423.10 441,039,279.27
(2) Net cash flows from acquisition of subsidiaries during the year
Item 2023
Cash or cash equivalents paid in the current period for business
95,177,915.57
combinations incurred during the year
including：Xishui Chenke Feed Technology Co., LTD 95,177,915.57
Less: Cash and cash equivalents held by subsidiaries at acquisition date 45,934,635.97
including：Xishui Chenke Feed Technology Co., LTD 45,934,635.97
Net cash outflows for acquisition of subsidiaries 49,243,279.60
(3) No net cash from disposal of subsidiaries by the Company during the period
(4) Details of cash and cash equivalents
Item 12/31/2023 12/31/2022
1.Cash 5,367,248,673.44 2,122,149,250.34
Including: Cash on hand 178,407.26 456,386.59
Digital currency - -
Bank deposits available on demand 5,114,839,576.53 1,871,133,546.65
Other monetary funds available on demand 252,230,689.65 250,559,317.10
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 as at 12/31/2023 5,367,248,673.44 2,122,149,250.34
249
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 12/31/2023 12/31/2022
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
Balance in foreign
Balance translated to
Item currency as at Exchange rate
RMB as at 12/31/2023
12/31/2023
Cash at bank and on hand —— —— 806,088,075.57
Including:USD 39,246,058.74 7.082700 277,968,060.24
VND 1,359,936,083,824.00 0.000290 394,912,791.31
MYR 27,572,956.31 1.541550 42,505,081.29
INR 136,044,339.77 0.085146 11,583,631.81
EGP 226,554,406.27 0.229055 51,893,310.33
IDR 55,649,087,978.44 0.000460 25,619,476.71
BDT 24,945,221.13 0.064370 1,605,723.88
Bills receivable —— —— 6,510,119.00
Including:INR 76,458,303.90 0.085146 6,510,119.00
Accounts receivable —— —— 1,086,533,002.28
Including:USD 55,229,834.70 7.082700 391,176,350.23
VND 1,830,626,540,701.00 0.000290 531,596,922.59
MYR 12,175,596.98 1.541550 18,769,287.32
INR 113,562,243.32 0.085146 9,669,371.15
EGP 59,806,202.93 0.229055 13,698,880.99
IDR 264,180,413,587.49 0.000460 121,622,190.00
Other receivables —— —— 5,910,185.40
Including:USD 88,845.57 7.082700 629,266.52
VND 10,747,181,931.00 0.000290 3,120,881.71
MYR 69,978.98 1.541550 107,876.07
INR 2,601,314.22 0.085146 221,491.51
EGP 5,570,667.06 0.229055 1,275,986.46
IDR 1,087,471,716.28 0.000460 500,645.35
BDT 839,487.00 0.064370 54,037.78
Long-term receivables —— —— 7,708,127.53
Including:USD 26,240.19 7.082700 185,851.39
VND 9,533,544,600.00 0.000290 2,768,452.68
INR 23,653,156.00 0.085146 2,013,971.70
IDR 5,951,341,380.00 0.000460 2,739,851.76
Short-term loans —— —— 399,897,728.12
Including:USD 3,177,143.37 7.082700 22,502,753.35
VND 934,702,950,774.00 0.000290 271,429,044.17
INR 537,759,686.85 0.085146 45,788,088.12
250
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Balance in foreign
Balance translated to
Item currency as at Exchange rate
RMB as at 12/31/2023
12/31/2023
IDR 130,714,693,723.15 0.000460 60,177,842.48
Accounts payable —— —— 588,919,604.67
Including:USD 35,369,069.95 7.082700 250,508,511.74
VND 851,100,071,151.00 0.000290 247,151,545.45
MYR 238,693.95 1.541550 367,958.58
INR 156,588,298.60 0.085146 13,332,867.80
EGP 82,690,138.57 0.229055 18,940,549.83
IDR 127,326,869,628.78 0.000460 58,618,171.27
Employee compensation
—— —— 89,059,949.23
payable
Including:USD 1,692,768.79 7.082700 11,989,373.51
VND 230,100,433,980.00 0.000290 66,819,026.09
MYR 425,523.33 1.541550 655,965.34
INR 43,516,908.13 0.085146 3,705,290.81
EGP 3,048,903.60 0.229055 698,365.14
IDR 10,553,051,514.41 0.000460 4,858,366.37
BDT 5,181,947.58 0.064370 333,561.97
Taxes payable —— —— 24,081,870.19
Including:USD 858.82 7.082700 6,082.76
VND 60,579,805,975.50 0.000290 17,591,812.26
MYR 361,918.08 1.541550 557,914.69
INR 1,074,815.55 0.085146 91,516.25
EGP 8,538,891.64 0.229055 1,955,871.71
IDR 6,886,337,954.08 0.000460 3,170,301.28
BDT 11,004,679.87 0.064370 708,371.24
Other payables —— —— 8,874,365.37
Including:USD 115,684.82 7.082700 819,360.87
VND 21,361,345,228.00 0.000290 6,203,136.00
MYR 86,512.18 1.541550 133,362.82
INR 9,862,082.90 0.085146 839,716.94
EGP 189,700.90 0.229055 43,451.85
IDR 1,801,539,395.80 0.000460 829,384.60
BDT 92,470.00 0.064370 5,952.29
Non-current liabilities due
—— —— 83,079,580.95
within one year
Including:USD 11,247,801.57 7.082700 79,664,804.18
VND 9,245,529,607.86 0.000290 2,684,815.81
EGP 2,401,787.35 0.229055 550,140.24
IDR 390,595,758.95 0.000460 179,820.72
251
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Balance in foreign
Balance translated to
Item currency as at Exchange rate
RMB as at 12/31/2023
12/31/2023
Long-term loans —— —— 48,687,510.12
Including:USD 6,000,000.00 7.082700 42,496,200.00
IDR 13,448,391,845.76 0.000460 6,191,310.12
(2) Overseas business entities
Basis for
Recording Principal place
Name of business entity determination
currency of business
ofrecording currency
KINGHILL HOLDINGS PTE.LTD. USD Singapore Major local currency
KINGHILL PTE.LTD. USD Singapore Major local currency
Haid Egypt Co.,Ltd EGP Egypt Major local currency
Haid Egypt Aquatic Co.,Ltd EGP Egypt Major local currency
KINGHILL RESOURCES PTE.LTD. USD Singapore Major local currency
VINH LONG HAILIANKE
VND Vietnam Major local currency
BIOTECHNOLOGY CO., LTD
KINGHILL AGRI PTE.LTD. USD Singapore Major local currency
PT.HAIDA AGRICULTURE INDONESIA IDR Indonesia Major local currency
PT.HAIDA SURABAYA TRADING IDR Indonesia Major local currency
PT HISENOR TECHNOLOGY
IDR Indonesia Major local currency
INDONESIA
HAID FEED BANGLADESH LIMITED BDT Bengali Major local currency
PT HAIDA BIOTECHNOLOGY
IDR Indonesia Major local currency
INDONESIA
Dachuan Biotechnology Co., Ltd. BDT Bengali Major local currency
PT HISENOR GENETICS INDONESIA IDR Indonesia Major local currency
Hisenor Aquatic Seed Industry Technology
USD Singapore Major local currency
Pte.Ltd.
KINGHILL INVESTMENT (SINGAPORE)
USD Singapore Major local currency
PTE.LTD.
KINGHILL INTERNATIONAL
USD Singapore Major local currency
(SINGAPORE) PTE.LTD.
HAID INTERNATIONAL (SINGAPORE)
USD Singapore Major local currency
PTE. LTD.
HAID BIOTECHNOLOGY INDUSTRY
USD Singapore Major local currency
(SINGAPORE) PTE. LTD.
Haid International Group Limited USD Hong Kong Major local currency
China Haida Feed Group(HK)Limited USD Hong Kong Major local currency
Rickworth Investments Limited USD Hong Kong Major local currency
Hong Kong Longreat Trading Co.,Limited USD Hong Kong Major local currency
HAID FEED COMPANY LIMITED VND Vietnam Major local currency
DONG NAI HAID FARM COMPANY
VND Vietnam Major local currency
LIMITED
PANASIA TRADING RESOURCES
USD Hong Kong Major local currency
LIMITED
SHENG LONG INTERNATIONAL LTD. USD Hong Kong Major local currency
252
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Basis for
Recording Principal place
Name of business entity determination
currency of business
ofrecording currency
SHENG LONG BIO-TECH
VND Vietnam Major local currency
INTERNATIONAL CO.,LTD
SHENG LONG BIO - TECH
INTERNATIONAL CO., LTD - NINH VND Vietnam Major local currency
THUAN BRANCH
SHENG LONG BIOTECH (HAI DUONG)
VND Vietnam Major local currency
INTERNATIONAL CO., LTD
LONG SHENG INTERNATIONAL
VND Vietnam Major local currency
CO.,LTD
Hisenor International Limited USD Hong Kong Major local currency
KEMBANG SUBUR INTERNATIONAL
MYR Malaysia Major local currency
LTD.
NAMDUONG VIETNAM AQUATIC
VND Vietnam Major local currency
HATCHERY CO.,LTD.
SHENG LONG BIO TECH(M)SDN.BHD. MYR Malaysia Major local currency
PRIME WORLD CO., LTD. USD Malaysia Major local currency
SHENG LONG AQUA TECHNOLOGY
MYR Malaysia Major local currency
(M) SDN. BHD.
THANG LONG(VINH LONG)BIOTECH
VND Vietnam Major local currency
CO.,LTD
LANKING PTE.LTD. USD Singapore Major local currency
The United
Haid Lanking International Trading Inc. USD States of Major local currency
America
LANKING NEMO(SG) PTE.LTD. USD Singapore Major local currency
SHENGLONG BIO-
INR India Major local currency
TECH(INDIA)PRIVATE LIMITED
LANKING RICKWORTH PTE.LTD. USD Singapore Major local currency
HAIDMARINO CIA.LTDA. USD Ecuador Major local currency
Lanking Nano PTE.LTD. USD Singapore Major local currency
HAI DUONG HAID COMPANY LIMITED VND Vietnam Major local currency
HAI DAI COMPANY LIMITED VND Vietnam Major local currency
VINH LONG HAI DAI CO.,LTD VND Vietnam Major local currency
BINH DINH HAI LONG CO.,LTD VND Vietnam Major local currency
HISTAR VIETNAM AQUATIC
VND Vietnam Major local currency
BREEDING COMPANY LIMITED
BINH PHUOC HAI LONG COMPANY
VND Vietnam Major local currency
LIMITED
HAID GROUP HAIDING AGRICULTURE
AND ANIMAL HUSBANDRY USD Kazakhstan Major local currency
KAZAKHSTAN CO., Ltd.
HAID (ECUADOR) FEED CIA.LTDA. USD Ecuador Major local currency
71. Lease
(1) Lessee
Item 2023
Short-term lease charges 75,788,187.51
Low value lease charges 165,979.40
253
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item 2023
Total 75,954,166.91
(2) Leaser
Operating lease
① Rental income
Item 2023
Rental income 27,695,966.11
Including：Income related to variable lease payments not included in lease collections -
VI Research and development expenditure
(1) Research and development expenditure
2023 2022
Item Expensed Capitalized Expensed Capitalized
amount amount amount amount
Employee compensation 467,907,240.17 8,406,666.67 433,776,962.76 9,614,244.13
Materials expenses 116,282,096.49 638,431.79 94,505,156.07 5,120,774.30
Travel expenses 44,886,389.38 162,018.07 33,307,843.10 161,838.44
Office expenses 121,125,274.27 2,678,624.89 100,994,669.97 2,529,911.62
Training and consulting service
17,734,028.97 138,917.93 10,130,093.83 107,562.33
fee
Expense on R&D entrusted to
12,873,488.50 - 6,258,201.21 -
external parties
Equity incentive expense 569,143.97 158,709.25 30,003,920.43 496,022.89
Other expenses 3,502,752.28 6,018,516.00 2,258,642.76 3,466.67
Total 784,880,414.03 18,201,884.60 711,235,490.13 18,033,820.38
(2) Development expenditure
Increase Decrease
Recorded
Recognize
Item Internal in P/L in
12/31/2022 Other d as 12/31/2023
development the
additions Intangible
expenditure current
assets
period;
Development of
animal protection
2,521,350.1 7,000,000.0
products and 6,295,535.23 - - 1,816,885.35
2 0
healthy breeding
model
Development of
breeding 5,038,255.5
2,890,983.44 - - - 7,929,238.97
techniques for 3
families
Application and
11,346,496.1 20,361,862.0
development of 9,015,365.93 - - -
5 8
feed additives
18,906,101. 18,201,884.6 7,000,000.0 30,107,986.4
Total - -
80 0 0 0
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
254
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
In addition to the below subsidiaries, the Company still has 354 indirectly controlled subsidiaries, which
business scopes include feed production and breeding, etc, mainly distributed in 26 provinces and cities in
China, as well as Southeast Asia, Egypt and other countries.
Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Business
Guangzhou Guangzho combination
Runchuan Guangzhou, u, involving
147,000 Investment 100
Investment Co., Guangdong Guangdon entities under
Ltd. g common
control
Business
Guangzho combination
Guangzhou
Guangzhou, u, Production involving
Haiwei Feed 1,170 100
Guangdong Guangdon and Sales entities under
Co., Ltd.
g common
control
Business
Guangzho combination
Guangzhou
Guangzhou, u, involving
Rongchuan 1,310 Sales 100
Guangdong Guangdon entities under
Feed Co., Ltd.
g common
control
Business
combination
Foshan,
Foshan Haihang Foshan, Production involving
1,000 Guangdon 87.5
Feed Co., Ltd. Guangdong and Sales entities under
g
common
control
Business
Guangzho combination
Guangzhou
Guangzhou, u, Production involving
Dachuan Feed 1,000 100
Guangdong Guangdon and Sales entities under
Co., Ltd.
g common
control
Business
combination
Hubei Haid Wuhan,Hub Wuhan,Hu Production involving
2,000 100
Feed Co., Ltd. ei bei and Sales entities under
common
control
Guangdong Guangzho
Hinter Guangzhou, u,
8,000 Production 97 3
Biotechnology Guangdong Guangdon Establishment
and Sales
Group Co., Ltd. g
Shanxi Haid
Agriculture and
Yangling, Yangling, Production
Animal 2,000 67 Establishment
Shanxi Shanxi and Sales
Husbandry Co.,
Ltd.
255
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Hunan Haid
Changde, Changde, Production
Bio-Feed Co., 1,500 100 Establishment
Hunan Hunan and Sales
Ltd.
Guangzho
Guangzhou
10,764.2 Guangzhou, u,
Haihe Feed Co., Sales 100 Establishment
4 Guangdong Guangdon
Ltd.
g
Foshan,
Foshan Haipu Foshan,
300 Guangdon Sales 87.5 Establishment
Feed Co., Ltd. Guangdong
g
Qingyuan
Qingyuan,
Haibei Qingyuan, Production
10,000 Guangdon 100 Establishment
Biotechnology Guangdong and Sales
g
Co., Ltd.
Zhanjiang,
Zhanjiang Haid Zhanjiang, Production
1,300 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
Jiangmen,
Jiangmen Haid Jiangmen, Production
8,000 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
Chengdu Haid
Xinjin,Sich Xinjin,Sic Production
Biotechnology 1,300 100 Establishment
uan huan and Sales
Co., Ltd.
Taizhou Haid
Xinghua, Xinghua, Production
Bio-Feed Co., 1,660 100 Establishment
Jiangsu Jiangsu and Sales
Ltd.
Jingzhou Haid Jingzhou, Jingzhou, Production
9,860 100 Establishment
Feed Co., Ltd. Hubei Hubei and Sales
Business
combination
Dongguan,
Dongguan Haid Dongguan, Production involving
1,000 Guangdon 100
Feed Co., Ltd. Guangdong and Sales entities not
g
under common
control
Fujian Haid Changtai, Changtai, Production
9,850 100 Establishment
Feed Co., Ltd. Fujian Fujian and Sales
Zhejiang Haid Shaoxing, Shaoxing, Production
9,810 100 Establishment
Feed Co., Ltd. Zhejiang Zhejiang and Sales
Guangxi Haid Qinzhou, Qinzhou, Production
9,460 100 Establishment
Feed Co., Ltd. Guangxi Guangxi and Sales
Kinghill
5,234.01
Holdings Singapore Singapore Investment 100 Establishment
(USD)
Pte.Ltd.
Jiangxi Haid Nanchang, Nanchang, Production
7,370 100 Establishment
Feed Co., Ltd. Jiangxi Jiangxi and Sales
256
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Business
Guangzho combination
Guangzhou
Guangzhou, u, involving
Haid Feed Co., 1,000 Trading 100
Guangdong Guangdon entities not
Ltd.
g under common
control
Maoming Maoming,
Maoming, Production
Hailong Feed 9,210 Guangdon 100 Establishment
Guangdong and Sales
Co., Ltd. g
Nanchang Haid
Nanchang, Nanchang, Production
Biotechnology 300 100 Establishment
Jiangxi Jiangxi and Sales
Co., Ltd.
Zhuhai Zhuhai,
Zhuhai, Production
Rongchuan 3,000 Guangdon 100 Establishment
Guangdong and Sales
Feed Co., Ltd. g
Business
combination
Foshan Foshan,
Foshan, Production involving
Sanshuifanling 200 Guangdon 100
Guangdong and Sales entities not
Feed Co., Ltd. g
under common
control
Business
Dalian Haid combination
Rongchuan Dalian, Dalian, involving
5,000 Trading 100
Trading Co., Liaoning Liaoning entities not
Ltd. under common
control
Haid British
3,837
International Hong Kong Virgin Trading 100 Establishment
(USD)
Group Limited Islands
Changzhou
Liyang, Liyang, Production
Haid Bio-Feed 2,000 100 Establishment
Jiangsu Jiangsu and Sales
Co., Ltd.
Tianjin Haid Production
15,000 Tianjin Tianjin 97 3 Establishment
Feed Co., Ltd. and Sales
Business
combination
Jiangmen A&T Jiangmen,
Jiangmen, Production involving
Xinhui Feed 250 Guangdon 80
Guangdong and Sales entities not
Co., Ltd. g
under common
control
Tianmen Haid Tianmen, Tianmen, Production
500 100 Establishment
Feed Co., Ltd. Hubei Hubei and Sales
Zhuhai Hailong Zhuhai,
Zhuhai, Production
Biotechnology 1,000 Guangdon 100 Establishment
Guangdong and Sales
Co., Ltd. g
Yangjiang,
Yangjiang Haid Yangjiang, Production
500 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
257
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Guigang Haid Guigang, Guigang, Production
500 100 Establishment
Feed Co., Ltd. Guangxi Guangxi and Sales
Yiyang Haid Yiyang, Yiyang, Production
5,000 99 1 Establishment
Feed Co., Ltd. Hunan Hunan and Sales
Nantong Haid
Nantong, Nantong, Production
Biotechnology 10,000 100 Establishment
Jiangsu Jiangsu and Sales
Co., Ltd.
Yunnan Haid
Kunming, Kunming, Production
Biotechnology 500 100 Establishment
Yunnan Yunnan and Sales
Co., Ltd.
Guangdong
Mutai Zhuhai,
Zhuhai, Production
Biotechnology 500 Guangdon 100 Establishment
Guangdong and Sales
Co., Ltd. (Note g
1)
Gaoyao,
Zhaoqing Haid Gaoyao, Production
500 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
Wuhan Aquaera
Ezhou, Ezhou, Production
Biotechnology 500 100 Establishment
Hubei Hubei and Sales
Co., Ltd.
Shenzhen
Shenzhen,
Longreat Shenzhen,
200 Guangdon Trading 70 Establishment
Trading Co., Guangdong
g
Ltd.
Lanking 9,232.16
Singapore Singapore Trading 100 Establishment
Pte.Ltd. (dollar)
Hunan Dongting
Dongting, Dongting, Production
Haid Feed Co., 2,000 100 Establishment
Hunan Hunan and Sales
Ltd.
Zhangzhou Haid Zhangzhou, Zhangzho Production
2,000 85 Establishment
Feed Co., Ltd. Fujian u, Fujian and Sales
Anhui Haid Chizhou, Chizhou, Production
1,000 100 Establishment
Feed Co., Ltd. Anhui Anhui and Sales
Xiangtan Haid Xiangtan, Xiangtan, Production
2,000 100 Establishment
Feed Co., Ltd. Hunan Hunan and Sales
Guangzhou Guangzho
Changsheng Guangzhou, u, Transportati
1,000 100 Establishment
Logistics Co., Guangdong Guangdon on Service
Ltd. g
Guangzhou
Guangzho
Danong
Guangzhou, u,
Enterprise 50 Investment 100 Establishment
Guangdong Guangdon
Management
g
Co., Ltd.
258
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Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Shandong
Haiding
Agriculture and Heze, Heze,
10,000 Sales 55 Establishment
Animal Shandong Shandong
Husbandry Co.,
Ltd.
Xishui Haid Huanggang, Huanggan Production
300 100 Establishment
Feed Co., Ltd. Hubei g, Hubei and Sales
Yancheng Haid
Yancheng, Yancheng, Production
Bio-Feed Co., 3,000 100 Establishment
Jiangsu Jiangsu and Sales
Ltd.
Honghu Haid Honghu, Honghu, Production
700 100 Establishment
Feed Co., Ltd. Hubei Hubei and Sales
Business
combination
Kaifeng Haid Kaifeng, Kaifeng, Production involving
2,000 100
Feed Co., Ltd. Henan Henan and Sales entities not
under common
control
Business
Guangzhou Guangzho combination
Heshengtang Guangzhou, u, Production involving
1,000 100
Biotechnology Guangdong Guangdon and Sales entities not
Co., Ltd. g under common
control
Business
Guangzhou
Guangzho combination
Heshengtang
Guangzhou, u, Production involving
Veterinary 6,000 100
Guangdong Guangdon and Sales entities not
Pharmaceutical
g under common
Co., Ltd.
control
Guangdong Business
Haid Livestock Guangzho combination
Veterinary Guangzhou, u, Research involving
3,000 100
Research Guangdong Guangdon and Trading entities not
Institute Co., g under common
Ltd. control
Henan Haihe
Agriculture and
Animal Luoyang, Luoyang, Production
1,000 67 Establishment
Husbandry Henan Henan and Sales
Technology Co.,
Ltd.
Suqian Haid Siyang, Siyang, Production
2,000 100 Establishment
Feed Co., Ltd. Jiangsu Jiangsu and Sales
Huaihua Haid Huaihua, Huaihua, Production
1,300 100 Establishment
Feed Co., Ltd. Hunan Hunan and Sales
259
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Guangzhou
Guangzho
Meinong
Guangzhou, u,
Investment 787.86 Investment 100 Establishment
Guangdong Guangdon
Management
g
Co., Ltd.
Guangdong
Hairuite Supply
Zhuhai,
Chain Zhuhai,
1,000 Guangdon Sales 100 Establishment
Management Guangdong
g
Co., Ltd. (Note
2)
Guangzhou Guangzho
Haijian Guangzhou, u,
12,150 Investment 100 Establishment
Investment Co., Guangdong Guangdon
Ltd. g
Business
Hunan combination
Innovation Hengyang, Hengyang, Production involving
1,688 100
Biotechnology Hunan Hunan and Sales entities not
Limited under common
control
Guangzhou Guangzho
Haishengke Guangzhou, u,
26,127 Investment 100 Establishment
Investment Co., Guangdong Guangdon
Ltd. g
Sanming Haid Sanming, Sanming, Production
3,500 100 Establishment
Feed Co., Ltd. Fujian Fujian and Sales
Qingyuan Haid Qingyuan,
Qingyuan, Production
Biotechnology 1,000 Guangdon 100 Establishment
Guangdong and Sales
Co., Ltd. g
Xuancheng
Haid Xuancheng, Xuanchen Production
500 100 Establishment
Biotechnology Anhui g, Anhui and Sales
Co., Ltd.
Guangdong
Shunde,
Shunde Haid Shunde,
500 Guangdon Sales 100 Establishment
Biotechnology Guangdong
g
Co., Ltd.
Business
combination
Jiaxing Haid
Jiaxing, Jiaxing, Production involving
Yongwang Bio- 2,388 80
Zhejiang Zhejiang and Sales entities not
Feed Co., Ltd.
under common
control
Business
Shijiazhuang combination
Weike Jinzhou, Jinzhou, Production involving
1,000 70
Biotechnology Hebei Hebei and Sales entities not
Co., Ltd. under common
control
260
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Chongqing Haid Production
2,500 Chongqing Chongqing 100 Establishment
Feed Co., Ltd. and Sales
Shenyang Haid Shenyang, Shenyang, Production
300 85 Establishment
Feed Co., Ltd. Liaoning Liaoning and Sales
Jiangsu Haihe
Agriculture and
Xuzhou, Xuzhou,
Animal 1,000 Sales 67 Establishment
Jiangsu Jiangsu
Husbandry Co.,
Ltd.
Anshan
Dachuan Feed Anshan, Anshan,
300 Sales 100 Establishment
Technology Co., Liaoning Liaoning
Ltd.
Guangzhou Guangzho
Haiyuan Guangzhou, u, Commercial
15,000 100 Establishment
Factoring Co., Guangdong Guangdon factoring
Ltd. g
Haid Pet Care Weihai, Weihai,
5,000 Sales 100 Establishment
Co., Ltd. Shandong Shandong
Ganzhou Haid
Ganzhou, Ganzhou, Production
Biotechnology 5,000 100 Establishment
Jiangxi Jiangxi and Sales
Co., Ltd.
Foshan Haid Foshan,
Foshan, Production
Beacon Feed 500 Guangdon 60 Establishment
Guangdong and Sales
Co., Ltd. g
Guangzhou
Guangzho
Punong
Guangzhou, u,
Investment 460 Investment 100 Establishment
Guangdong Guangdon
Management
g
Co., Ltd.
Guangzhou
Guangzho
Yannong
Guangzhou, u,
Investment 1,975.81 Investment 100 Establishment
Guangdong Guangdon
Management
g
Co., Ltd.
Business
combination
Liyang Jiu He Liyang, Liyang, Production involving
880 80
Feed Co., Ltd. Jiangsu Jiangsu and Sales entities not
under common
control
Business
Shaoguang combination
Shaoguan Haid
Shaoguang, , Production involving
Biotechnology 1,500 100
Guangdong Guangdon and Sales entities not
Co., Ltd.
g under common
control
261
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Business
combination
Shandong Daxin Qingdao, Qingdao, Research involving
5,204 60
Group Co., Ltd. Shandong Shandong and Trading entities not
under common
control
Business
combination
Huaian Hailong Huai’an, Huai’an, Production involving
5,000 100
Feed Co., Ltd. Jiangsu Jiangsu and Sales entities not
under common
control
Business
Hunan combination
Jinhuilong Yueyang, Yueyang, involving
10,000 Investment 51
Technology Co., Hunan Hunan entities not
Ltd. under common
control
Fuzhou Haid Fuzhou, Fuzhou, Production
8,500 100 Establishment
Feed Co., Ltd. Fujian Fujian and Sales
Zhaoqing
Gaoyao Haid Zhaoqing,
Zhaoqing, Production
Biological 8,000 Guangdon 100 Establishment
Guangdong and Sales
Technology Co., g
Ltd.
Nanning Haid
Nanning, Nanning, Production
Biotechnology 12,000 100 Establishment
Guangxi Guangxi and Sales
Co., Ltd.
Ganzhou
Ganzhou, Ganzhou, Production
Hailong Feed 500 100 Establishment
Jiangxi Jiangxi and Sales
Co., Ltd.
Guangzhou Guangzho
Haiyuan Guangzhou, u, Micro-credit
50,000 100 Establishment
Microfinance Guangdong Guangdon service
Co., Ltd. g
Jiangmen Jiangmen,
Jiangmen, Production
Rongchuan 18,500 Guangdon 100 Establishment
Guangdong and Sales
Feed Co., Ltd. g
Chongqing
Kaizhou Haid
Biotechnology 3,500 Chongqing Chongqing Sales 100 Establishment
Co., Ltd. (Note
1)
Meizhou Haid Meizhou,
Meizhou, Production
Biotechnology 9,000 Guangdon 70 Establishment
Guangdong and Sales
Co., Ltd. g
Yicheng Haid
Biological Xiangyang, Xiangyang Production
4,500 100 Establishment
Technology Co., Hubei , Hubei and Sales
Ltd.
262
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Zhuhai Dachuan
Zhuhai,
Biotechnology Zhuhai, Production
4,800 Guangdon 100 Establishment
Co., Ltd. (Note Guangdong and Sales
g
3)
Hexian Haid
Ma’anshan, Ma’anshan Research
Biotechnology 9,000 100 Establishment
Anhui , Anhui and Trading
Co., Ltd.
Guangzhou Guangzho
Nansha Haid Guangzhou, u, Production
10,000 100 Establishment
Technology Co., Guangdong Guangdon and Sales
Ltd. g
Guangzhou Guangzho
Shunkang Guangzhou, u,
310 Sales 100 Establishment
Aquaculture Guangdong Guangdon
Co., Ltd. g
Tianjin
Production
Rongchuan 23,170 Tianjin Tianjin 70 Establishment
and Sales
Feed Co., Ltd.
Zhanjiang Zhanjiang,
Zhanjiang,
Rongda Feed 4,000 Guangdon Sales 100 Establishment
Guangdong
Co., Ltd. g
Huainan Haid
Huainan, Huainan, Production
Biological Feed 8,400 100 Establishment
Anhui Anhui and Sales
Co., Ltd.
Maoming Haid
Maoming,
Biological Maoming,
6,000 Guangdon Sales 100 Establishment
Technology Co., Guangdong
g
Ltd.
Guangzhou
Guangzho
Ronghai
Guangzhou, u,
Breeding 2,400 Investment 100 Establishment
Guangdong Guangdon
Technology Co.,
g
Ltd.
Sichuan
Meishan, Meishan, Production
Rongchuan 9,000 100 Establishment
Sichuan Sichuan and Sales
Feed Co., Ltd.
Yulin Haid Feed Yulin, Yulin, Production
4,500 100 Establishment
Co., Ltd. Guangxi Guangxi and Sales
Sichuan Haile
Agriculture and
Chengdu, Chengdu, Investment
Animal 3,000 55 Establishment
Sichuan Sichuan and Sales
Husbandry Co.,
Ltd.
263
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Guangzhou
Xingnong
Ecological Guangzho
Agriculture and Guangzhou, u,
2,900 Investment 100 Establishment
Animal Guangdong Guangdon
Husbandry g
Development
Co., Ltd.
Business
Qingyuan combination
Qingyuan,
Ronghai Food Qingyuan, Production involving
7,100 Guangdon 96.67 3.33
Technology Co., Guangdong and Sales entities not
g
Ltd. (Note 4) under common
control
Guangzhou
Guangzho
Haiyin
Guangzhou, u, Financing
Financing 25,000 100 Establishment
Guangdong Guangdon guarantee
Guarantee Co.,
g
Ltd.
Qinzhou
Qinzhou, Qinzhou, Production
Hailong Feed 4,000 100 Establishment
Guangxi Guangxi and Sales
Co., Ltd.
Hainan Haid
Wenchang, Wenchang, Production
Biotechnology 2,500 100 Establishment
Hainan Hainan and Sales
Co., Ltd.
Liuzhou Haid Liuzhou, Liuzhou, Production
500 100 Establishment
Feed Co., Ltd. Guangxi Guangxi and Sales
Business
Jiangsu Haixin combination
Biotechnology Huai’an, Huai’an, Production involving
3,000 100
Co., Ltd. (Note Jiangsu Jiangsu and Sales entities not
5) under common
control
Gaoan Haid
Yichun, Yichun, Production
Biotechnology 4,000 100 Establishment
Jiangxi Jiangxi and Sales
Co., Ltd.
Shanghai
Gaohaid Shanggao, Shanggao, Production
2,500 100 Establishment
Biotechnology Jiangxi Jiangxi and Sales
Co., Ltd.
Qingyuan
Hailong Qingyuan,
Qingyuan, Production
Biological 13,000 Guangdon 100 Establishment
Guangdong and Sales
Technology Co., g
Ltd.
Guangdong Guangzho
Haid Guangzhou, u,
10,000 Trading 100 Establishment
International Guangdong Guangdon
Trade Co., Ltd. g
264
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Guangzhou Guangzho
Nansha Haid Guangzhou, u, Production
700 100 Establishment
Biotechnology Guangdong Guangdon and Sales
Co., Ltd. g
Yancheng
Haiwei
Yancheng, Yancheng, Production
Biological 6,000 100 Establishment
Jiangsu Jiangsu and Sales
Technology Co.,
Ltd.
Hainan Haid
Aquatic Seed
Wenchang, Wenchang, Production
Industry 1,500 100 Establishment
Hainan Hainan and Sales
Development
Co., Ltd.
Wuzhou Haid
Wuzhou, Wuzhou, Production
Biotechnology 2,500 100 Establishment
Guangxi Guangxi and Sales
Co., Ltd.
Dongguan,
Dongguan Haiqi Dongguan, Production
500 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
Zhangzhou
Zhangzhou, Zhangzho Production
Haiheng Feed 500 100 Establishment
Fujian u, Fujian and Sales
Co., Ltd.
Deyang
Dachuan
Agriculture and
Deyang, Deyang, Production
Animal 4,000 100 Establishment
Sichuan Sichuan and Sales
Husbandry
Technology Co.,
Ltd.
Mianyang
Mianyang, Mianyang, Production
Hailong Feed 500 70 13.53 Establishment
Sichuan Sichuan and Sales
Co., Ltd.
Meishan Haid
Meishan, Meishan, Production
Biotechnology 500 100 Establishment
Sichuan Sichuan and Sales
Co., Ltd.
Guangzho
Guangzhou
Guangzhou, u, Production
Nongzhidao 1,000 60 Establishment
Guangdong Guangdon and Sales
Feed Co., Ltd.
g
Yingkou
Dachuan Feed Yingkou, Yingkou, Production
1,200 100 Establishment
Technology Co., Liaoning Liaoning and Sales
Ltd.
Jiesou Haid Fuyang, Fuyang, Production
1,500 100 Establishment
Feed Co., Ltd. Anhui Anhui and Sales
Anlu Haid Feed Xiaogan, Xiaogan, Production
2,000 100 Establishment
Co., Ltd. Hubei Hubei and Sales
265
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Jingzhou Haihe
Biological Jingzhou, Jingzhou, Production
4,000 100 Establishment
Technology Co., Hubei Hubei and Sales
Ltd.
Hainan Business
Zhuangmei combination
Agriculture and Danzhou, Danzhou, Production involving
4,000 100
Animal Hainan Hainan and Sales entities not
Husbandry Co., under common
Ltd. control
Yancheng
Runchuan
Agricultural Yancheng, Yancheng, Production
100 100 Establishment
Science And Jiangsu Jiangsu and Sales
Technology Co.,
Ltd.
Zigong Hailong
Biological Zigong, Zigong, Production
3,000 100 Establishment
Technology Co., Sichuan Sichuan and Sales
Ltd.
Business
Jiangxi Jiabo combination
Biological Jiujiang, Jiujiang, Production involving
8,000 60
Engineering Jiangxi Jiangxi and Sales entities not
Co., Ltd. under common
control
Guangxi
Nanning, Nanning, Production
Rongchuan 500 100 Establishment
Guangxi Guangxi and Sales
Feed Co., Ltd.
Dali Haid
Dali, Production
Biotechnology 4,000 Dali, Yunan 100 Establishment
Yunan and Sales
Co., Ltd.
Guangzhou
Guangzho
Haid
Guangzhou, u, Production
Technology 1,310 100 Establishment
Guangdong Guangdon and Sales
Development
g
Co., Ltd.
Jiangmen,
Heshan Haiwei Jiangmen, Production
500 Guangdon 100 Establishment
Feed Co., Ltd. Guangdong and Sales
g
Business
Ganzhou combination
Lianduoli Feed Ganzhou, Ganzhou, Production involving
2,000 70
Technology Co., Jiangxi Jiangxi and Sales entities not
Ltd. under common
control
Maoming Maoming,
Maoming, Production
Haiwei Feed 1,000 Guangdon 70 Establishment
Guangdong and Sales
Co., Ltd. g
266
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Leizhou
Zhanjiang,
Hailong Zhanjiang, Production
500 Guangdon 100 Establishment
Biotechnology Guangdong and Sales
g
Co., Ltd.
Sichuan Hailong
Meishan, Meishan, Production
Biotechnology 500 100 Establishment
Sichuan Sichuan and Sales
Co., Ltd.
Qinzhou Haiwei Qinzhou, Qinzhou, Production
3,500 100 Establishment
Feed Co., Ltd. Guangxi Guangxi and Sales
Yancheng
Rongchuan Yancheng, Yancheng, Production
6,000 100 Establishment
Biotechnology Jiangsu Jiangsu and Sales
Co., Ltd.
Naning
Dachuan Nanning, Nanning, Production
900 100 Establishment
Biotechnology Guangxi Guangxi and Sales
Co., Ltd.
Yongzhou Haid
Yongzhou, Yongzhou, Production
Biotechnology 500 100 Establishment
Hunan Hunan and Sales
Co., Ltd.
Jiangsu Haid
Yancheng, Yancheng, Production
Biotechnology 1,000 100 Establishment
Jiangsu Jiangsu and Sales
Co., Ltd.
Guiyang Haid
Guiyang, Guiyang, Production
Biotechnology 500 100 Establishment
Guizhou Guizhou and Sales
Co., Ltd.
Wuwei Haimu
Wuwei, Wuwei, Production
Biotechnology 2,500 100 Establishment
Gansu Gansu and Sales
Co., Ltd.
Guilin Haid
Guilin, Guilin, Production
Biotechnology 500 100 Establishment
Guangxi Guangxi and Sales
Co., Ltd.
Inner Mongolia Bayannur, Bayannur,
Production
Haid Feed Co., 2,500 Inner Inner 100 Establishment
and Sales
Ltd. Mongolia Mongolia
Guiyang
Dachuan Guiyang, Guiyang, Production
500 100 Establishment
Biotechnology Guizhou Guizhou and Sales
Co., Ltd.
Xingtai Haid
Xingtai, Xingtai, Production
Biotechnology 3,000 100 Establishment
Hebei Hebei and Sales
Co., Ltd.
Foshan Foshan,
Foshan,
Lianduoli Feed 50 Guangdon Sales 100 Establishment
Guangdong
Co., Ltd. g
Guangdong Guangzho
Haifulai Guangzhou, u, Research
5,000 100 Establishment
Biotechnology Guangdong Guangdon and Sales
Co., Ltd. g
267
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Liupanshui Haid
Liupanshui, Liupanshu Production
Biotechnology 2,000 100 Establishment
Guizhou i, Guizhou and Sales
Co., Ltd.
Guangdong Guangzho
Haiqi Guangzhou, u,
3,000 Investment 100 Establishment
Investment Co., Guangdong Guangdon
Ltd. g
Nanning Haililai
Nanning, Nanning, Production
Biotechnology 1,000 70 Establishment
Guangxi Guangxi and Sales
Co., Ltd.
Shaoyang Haid Shaoyang, Shaoyang, Production
1,000 100 Establishment
Feed Co., Ltd. Hunan Hunan and Sales
Business
combination
Jiangmen,
Jiangmen Debao Jiangmen, Production involving
8,362.52 Guangdon 100
Group Co., Ltd. Guangdong and Sales entities not
g
under common
control
Shaoguan
Shaoguan,
Dachuan Shaoguan, Production
500 Guangdon 100 Establishment
Biotechnology Guangdong and Sales
g
Co., Ltd.
Liaoning Haid
Liaoning, Liaoning, Production
Biotechnology 2,000 100 Establishment
Shenyang Shenyang and Sales
Co., Ltd.
Guizhou
Hailongwang Qiannan, Qiannan,
50 Sales 100 Establishment
Biotechnology Guizhou Guizhou
Co., Ltd.
Guangdong
Guangzho
Huashite
Guangzhou, u, Research
Testing 1,200 100 Establishment
Guangdong Guangdon and Sales
Technology Co.,
g
Ltd.
Tianjin Haid
Biotechnology Production
1,000 Tianjin Tianjin 100 Establishment
Co., Ltd. (Note and Sales
6)
Dali Dachuan
Dali, Production
Biotechnology 2,500 Dali, Yunan 100 Establishment
Yunan and Sales
Co., Ltd.
Yunnan Hairui
Qujing, Qujing, Production
Biotechnology 3,500 100 Establishment
Yunnan Yunnan and Sales
Co., Ltd.
Henan
Haidajiuzhou Zhumadian, Zhumadia Production
1,000 75 Establishment
Biotechnology Henan n, Henan and Sales
Co., Ltd.
268
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ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Enshi Haida
Enshi, Enshi, Production
Biotechnology 1,500 100 Establishment
Hubei Hubei and Sales
Co., Ltd.
Ningguo Haid
Xuancheng, Xuanchen Production
Biotechnology 3,000 65 Establishment
Anhui g, Anhui and Sales
Co., Ltd.
Chaozhou Haid Chaozhou,
Chaozhou,
Biotechnology 1,000 Guangdon Sales 100 Establishment
Guangdong
Co., Ltd. g
Tianjin Haixin
Production
Biotechnology 1,000 Tianjin Tianjin 100 Establishment
and Sales
Co., Ltd.
Nanshan Haid
Huai’an, Huai’an, Production
Biotechnology 5,000 70 Establishment
Jiangsu Jiangsu and Sales
(Jinhu) Co., Ltd.
Tongliao Haid Tongliao, Tongliao,
Production
Biotechnology 1,000 Inner Inner 100 Establishment
and Sales
Co., Ltd. Mongolia Mongolia
Guangzhou Guangzho
Haihan Finance Guangzhou, u, Commercial
200 100 Establishment
Technology Co., Guangdong Guangdon service
Ltd. g
Guangdong
Haizhihui Guangzho
Breeding Guangzhou, u, Research
10,000 53 15 Establishment
Technology Guangdong Guangdon and Sales
Service Co., g
Ltd.
Jiangsu Haiwei Huai’an, Huai’an, Production
2,500 100 Establishment
Feed Co., Ltd. Jiangsu Jiangsu and Sales
Hubei Haid
Seed Ezhou, Ezhou, Research
1,000 100 Establishment
Technology Co., Hubei Hubei and Sales
Ltd.
Qianjiang
Hailong Qianjiang, Qianjiang, Production
1,000 100 Establishment
Biotechnology Hubei Hubei and Sales
Co., Ltd.
Zhuhai Chenzhe
Private Equity
Zhuhai,
Fund Zhuhai,
1,000 Guangdon Investment 100 Establishment
Management Guangdong
g
Co., Ltd.(Note
5)
Pingjiang
Bairuilai Yueyang, Yueyang, Production
1,500 100 Establishment
Biotechnology Hunan Hunan and Sales
Co., Ltd.
269
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capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Guiyang Haiyue
Feed Guiyang, Guiyang, Production
1,000 100 Establishment
Technology Co., Guizhou Guizhou and Sales
Ltd.
Inner Mongolia Hohhot, Hohhot,
Production
Haishan Feed 300 Inner Inner 60 Establishment
and Sales
Co., Ltd. Mongolia Mongolia
Huizhou Haid Huizhou,
Huizhou, Production
Biotechnology 880 Guangdon 100 Other method
Guangdong and Sales
Co., Ltd. g
Guangzhou
Guangzho
Hualaike
Guangzhou, u, Production
Testing 200 100 Establishment
Guangdong Guangdon and Sales
Technology Co.,
g
Ltd.
Huaibei Haid
Huaibei, Huaibei, Production
Bio-Feed Co., 1,000 100 Establishment
Anhui Anhui and Sales
Ltd.
Guigang
Hailong Guigang, Guigang, Production
500 100 Establishment
Biotechnology Guangxi Guangxi and Sales
Co., Ltd.
Xinyi Fengmu Xuzhou, Xuzhou,
500 Trading 100 Establishment
Trading Co., Ltd Jiangsu Jiangsu
Guizhou Haid Zunyi, Zunyi, Production
500 100 Establishment
Feed Co., Ltd. Guizhou Guizhou and Sales
Pizhou Haid
Xuzhou, Xuzhou, Production
Ruminant Feed 500 100 Establishment
Jiangsu Jiangsu and Sales
Co., Ltd
Nanping Haid
Nanping, Nanping, Production
Biotechnology 1,800 80 Establishment
Fujian Fujian and Sales
Co., Ltd.
Business
Xishui Chenke combination
Feed Xishui, Xishui, Production involving
5,200 65
Technology Co., Hubei Hubei and Sales entities not
Ltd under common
control
Quzhou Haid
Quzhou, Quzhou, Production
Huilong Bio- 1,000 100 Establishment
Zhejiang Zhejiang and Sales
Feed Co., Ltd
HAID
(ECUADOR) 10 Production
Ecuador Ecuador 95 5 Establishment
FEED (dollar) and Sales
CIA.LTDA.
Xinyu Haihe
Xinyu, Xinyu, Production
Biotechnology 200 100 Establishment
Jiangxi Jiangxi and Sales
Co., Ltd
270
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Register Shareholding
ed %
capital Principal Place of
Business Acquisition
Subsidiary (RMB place of registratio
nature Direc Indire method
ten business n
t ct
thousan
d)
Zhuhai Haiyue
Agriculture and Zhuhai,
Zhuhai, Production
Animal 2,000 Guangdon 100 Establishment
Guangdong and Sales
Husbandry Co., g
Ltd.
Qingyuan
Qingyuan,
Haifulai Qingyuan, Production
1,000 Guangdon 100 Establishment
Biotechnology Guangdong and Sales
g
Co., Ltd
Guangzho
Guangdong
Guangzhou, u,
Konong Culture 500 Others 100 Establishment
Guangdong Guangdon
Co., Ltd
g
Fuzhou Hailong
Fuzhou, Fuzhou, Production
Biotechnology 3,000 100 Establishment
Fujian Fujian and Sales
Co., Ltd.
Note:
Note 1: Guangzhou Hailong Feed Co., Ltd., a subsidiary of the Company, is renamed as Guangdong Mutai
Biotechnology Co., Ltd. in March 2023.
Note 2: Guangdong Hairuite Pet Nitribution Technology Co., Ltd., a subsidiary of the Company, is
renamed as Guangdong Hairuite Supply Chain Management Co., Ltd. in March 2023.
Note 3: Heshan Ronghai Feed Co., Ltd., a subsidiary of the Company, is renamed as Zhuhai Dachuan
Biotechnology Co., Ltd. in August 2023.
Note 4: Qingyuan Ronghai Breeding Technology Co., Ltd., a subsidiary of the Company, is renamed as
Qingyuan Ronghai Food Technology Co., Ltd. in August 2023.
Note 5: Jiangsu Dachuan Biotechnology Co., Ltd., a subsidiary of the Company, is renamed as Jiangsu
Haixin Biotechnology Co., Ltd. in February 2023.
Note 6: Hebei Haimu Biotechnology Co., Ltd., a subsidiary of the Company, is renamed as Tianjin Haid
Biotechnology Co., Ltd. in May 2023.
(2).Significant Non-Wholly-Owned Subsidiaries
Profit/Loss of Dividends
Closing balance
Non- Current Period declared for non-
of non-
Subsidiary controlling attributable to controlling
controlling
interests (%) non-controlling interests for
interests
interests Current Period
PANASIA
TRADING
20.00 50,663,287.31 7,293,595.17 172,966,400.02
RESOURCES
LIMITED
(3).Key Financial Information of Significant Non-Wholly-Owned Subsidiaries
(RMB ten thousand)
2023.12.31
Subsidiary Non- Non-
Current Current Total
current Total assets current
assets liabilities liabilities
assets liabilities
PANASIA
TRADING 157,584.3
59,359.94 216,944.27 123,938.05 1,596.43 125,534.48
RESOURCES 3
LIMITED
271
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Continued (1):
(RMB ten thousand)
2022.12.31
Subsidiary Non- Non-
Current Current Total
current Total assets current
assets liabilities liabilities
assets liabilities
PANASIA
TRADING 120,175.5
49,638.98 169,814.53 97,761.87 62.66 97,824.53
RESOURCES 5
LIMITED
Continued (2):
(RMB ten thousand)
2023
Subsidiary Total
Operating Net cash flows from
Net profit comprehensive
Income operating activities
income
PANASIA TRADING
458,465.05 25,331.64 25,331.64 49,778.91
RESOURCES LIMITED
Continued (3):
(RMB ten thousand)
2022
Subsidiary Total
Operating Net cash flows from
Net profit comprehensive
Income operating activities
income
PANASIA TRADING
296,814.42 11,494.13 11,494.13 2,415.68
RESOURCES LIMITED
(4).Transactions caused the change in Share of Owner’s Equity of Subsidiaries but control the Subsidiaries
① Changes in Share of Owner’s Equity of Subsidiaries
Shareholding
Shareholding
percentage
Timing of percentage after
before changes
Subsidiary equity changes (%)
(%)
Chang
Indirec Indirec
Direct Direct
t t
Guangdong Yiheng Investment Co., Ltd. 2023-3 51.00 100.00
Mianyang Zhonggui Feed Co., Ltd 2023-2 72.00 82.00
Laiyang Haihe Agriculture and Animal
2023-3 85.00 100.00
Husbandry Technology Co., Ltd.
Yunnan Hairui Biotechnology Co., Ltd. 2023-4 64.00 100.00
Jiangmen Debao Group Co., Ltd. 2023-7 80.00 100.00
Zhongshan Yugezi Food Co., Ltd 2023-7 60.00 100.00
Yunnan Zhonggui Feed Co., Ltd 2023-9 80.00 83.00
HAID BIOTECHNOLOGY INDUSTRY
2023-9 100.00 88.00
(SINGAPORE) PTE. LTD.
HAID INTERNATIONAL (SINGAPORE)
2023-9 88.00 100.00
PTE. LTD.
Yichang Zhihai Agriculture and Animal
2023-9 72.00 84.00
Husbandry Co., Ltd
② Impact of Transactions on Non-Controlling Interests and Owner’s equity Attributable to the parent
company
272
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Laiyang Haihe
Guangdong Agriculture
Mianyang Yunnan Hairui
Yiheng and Animal
Item Zhonggui Feed Biotechnology
Investment Husbandry
Co., Ltd Co., Ltd.
Co., Ltd. Technology
Co., Ltd.
Acquisition cost /
consideration of disposal
375,603,500.0
--Cash 8,219.80 1,500,000.00 15,600,000.00
0
--Fair value of non-cash assets
Total acquisition cost / 375,603,500.0
8,219.80 1,500,000.00 15,600,000.00
consideration of disposal 0
Less: Share of subsidiary’s net
assets at the percentage of 352,500,504.8
260,417.69 1,208,018.31 11,060,999.67
shareholding acquired or 5
disposed
Difference: Adjustment to -
252,197.89 -291,981.69 -4,539,000.33
capital reserve 23,102,995.15
Continued:
Yichang
Zhihai
Jiangmen Zhongshan Yunnan
Agriculture
Item Debao Group Yugezi Food Zhonggui
and Animal
Co., Ltd. Co., Ltd Feed Co., Ltd
Husbandry
Co., Ltd
Acquisition cost /
consideration of disposal
--Cash 26,812,500.00 400,000.00 150,000.00 150,000.00
--Fair value of non-cash assets
Total acquisition cost / 150,000.00
26,812,500.00 400,000.00 150,000.00
consideration of disposal
Less: Share of subsidiary’s net
assets at the percentage of
15,659,147.41 -4,232,197.80 29,466.70 694,757.90
shareholding acquired or
disposed
Difference: Adjustment to
-11,153,352.59 -4,632,197.80 -120,533.30 544,757.90
capital reserve
273
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Business Combinations Involving Entities Not under Common Control
(1). Business Combinations Involving Entities Not under Common Control Incurred in the current period
Acquiree’s net
Basis for Acquiree’s revenue
Investment Investment Investment Acquisition profit from
Acquiree Investment % determination of from acquisition
date cost method date acquisition date to
acquisition date date to period-end
period-end
Xishui Chenke When control over
Feed Technology 2023-9-13 121,177,915.57 65.00 Acquisition 2023-9-13 acquiree was 479,465,801.94 3,221,978.26
Co., Ltd obtained
(2). Combination Costs and Goodwill
Xishui Chenke Feed
Item
Technology Co., Ltd
Combination costs
Cash 95,177,915.57
Fair value of non-cash assets -
Fair value of debt issued or undertaken -
Fair value of equity securities issued -
Fair value of contingent consideration 26,000,000.00
Fair value of previously-held equity investment on the acquisition date -
Total combination cost 121,177,915.57
Less: Share of fair value of identifiable net assets obtained 65,327,033.71
Goodwill/ combination cost less than the fair value of the identifiable net assets 55,850,881.86
274
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
(3). Identifiable Assets and Liabilities of Acquirees at Acquisition Date
Xishui Chenke Feed Technology Co., Ltd
Item Fair value at Carrying amount at
acquisition date acquisition date
Assets:
Current assets 153,389,903.76 153,389,903.76
Non-current assets 233,103,292.06 174,802,038.97
Liabilities:
Current liabilities 246,899,279.77 246,899,279.77
Non-current liabilities 39,090,787.27 33,889,002.62
Net assets 100,503,128.78 47,403,660.34
Less: Non-controlling interests - -
Net assets acquired 100,503,128.78 47,403,660.34
Note: The fair value of identifiable assets and liabilities was determined by the audited or appraised value
which were approved by both the acquirer and the acquiree.
Reverse acquisition
No reverse acquisition occurred in the current period.
Business Combinations Involving Entities under Common Control
No business combinations involving entities under common control occurred in the current period.
Disposal of Subsidiaries
No external disposal of subsidiaries occurred in the current period.
Changes in the Scope of Consolidation Due to Other Reasons
(1) New Subsidiaries established in the Current Period
Principal
Time of Place of
Subsidiary Registered capital place of
incorporation registration
business
Hisenor Aquatic Seed Industry
2023-1 USD 10.00 Singapore Singapore
Technology Pte.Ltd.
Guilin Yipu Ecological Agriculture RMB Guilin, Guilin,
2023-2
Co., Ltd 10,000,000.00 Guangxi Guangxi
Jiangmen Haiqi Technology Co., Jiangmen, Jiangmen,
2023-2 RMB 100,000.00
Ltd Guangdong Guangdong
Guangdong Konong Culture Co., Guangzhou, Guangzhou,
2023-2 RMB 5,000,000.00
Ltd Guangdong Guangdong
Zhuhai Haibei Supply Chain Zhuhai, Zhuhai,
2023-3 RMB 5,000,000.00
Management Co., Ltd. Guangdong Guangdong
RMB Rizhao, Rizhao,
Juxian Haiding Feed Co., Ltd 2023-3
10,000,000.00 Shandong Shandong
Guigang Hailong Biotechnology Guigang, Guigang,
2023-3 RMB 5,000,000.00
Co., Ltd. Guangxi Guangxi
Raoping Haizenong Marine RMB Chaozhou, Chaozhou,
2023-3
Biotechnology Co., Ltd 50,000,000.00 Guangdong Guangdong
Yancheng Haize Agricultural Seed RMB Yancheng, Yancheng,
2023-4
Technology Co., Ltd 10,000,000.00 Jiangsu Jiangsu
HISTAR VIETNAM AQUATIC
VND
BREEDING COMPANY 2023-4 Vietnam Vietnam
100,000,000.00
LIMITED
Yantai Haixin Animal Husbandry RMB Yantai, Yantai,
2023-5
Co., Ltd 10,000,000.00 Shandong Shandong
Huizhou Haizenong Marine RMB Huizhou, Huizhou,
2023-6
Biotechnology Co., Ltd 20,000,000.00 Guangdong Guangdong
Guangzhou Haizexin Marine 2023-6 RMB Guangzhou, Guangzhou,
275
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Principal
Time of Place of
Subsidiary Registered capital place of
incorporation registration
business
Biotechnology Co., Ltd 20,000,000.00 Guangdong Guangdong
Guangzhou Haizehui Fisheries RMB Guangzhou, Guangzhou,
2023-6
Development Co., Ltd 10,000,000.00 Guangdong Guangdong
BINH PHUOC HAI LONG
2023-6 USD 3,600.00 Vietnam Vietnam
COMPANY LIMITED
Xuzhou, Xuzhou,
Xinyi Fengmu Trading Co., Ltd 2023-6 RMB 5,000,000.00
Jiangsu Jiangsu
Shandong Haizenong Marine RMB Shandong Shandong
2023-6
Biotechnology Co., Ltd 20,000,000.00 Dongying Dongying
Zunyi, Zunyi,
Guizhou Haid Feed Co., Ltd. 2023-7 RMB 5,000,000.00
Guizhou Guizhou
Qingyuan Hailier Biotechnology Qingyuan, Qingyuan,
2023-7 RMB 5,000,000.00
Co., Ltd Guangdong Guangdong
Qingyuan Haikun Biotechnology Qingyuan, Qingyuan,
2023-8 RMB 5,000,000.00
Co., Ltd Guangdong Guangdong
Pizhou Haid Ruminant Feed Co., Xuzhou, Xuzhou,
2023-8 RMB 5,000,000.00
Ltd Jiangsu Jiangsu
HAID INTERNATIONAL USD
2023-8 Singapore Singapore
(SINGAPORE) PTE. LTD. 15,000,000.00
HAID BIOTECHNOLOGY
INDUSTRY (SINGAPORE) PTE. 2023-8 USD 1,000.00 Singapore Singapore
LTD.
Liaocheng Fengcheng Feed Co., Liaocheng, Liaocheng,
2023-9 RMB 2,000,000.00
Ltd Shandong Shandong
Yangxi Haizexin Marine RMB Yangjiang, Yangjiang,
2023-9
Biotechnology Co., Ltd 20,000,000.00 Guangdong Guangdong
KINGHILL INVESTMENT
2023-9 USD 1.00 Singapore Singapore
(SINGAPORE) PTE.LTD.
Nanping Haid Biotechnology Co., RMB Nanping, Nanping,
2023-9
Ltd. 18,000,000.00 Fujian Fujian
KINGHILL INTERNATIONAL
2023-9 USD 1.00 Singapore Singapore
(SINGAPORE) PTE.LTD.
Yinan Haiding Biotechnology Co., Linyi, Linyi,
2023-9 RMB 5,000,000.00
Ltd Shandong Shandong
Linyi Haiding Ruminant RMB Linyi, Linyi,
2023-9
Biological Feed Co., Ltd 10,000,000.00 Shandong Shandong
Quzhou Haid Huilong Bio-Feed RMB Quzhou, Quzhou,
2023-10
Co., Ltd 10,000,000.00 Zhejiang Zhejiang
Zhejiang Haixingnong Marine RMB Taizhou, Taizhou,
2023-10
Biotechnology Co., Ltd 20,000,000.00 Zhejiang Zhejiang
Chaoyang Haihong Agricultural Chaoyang, Chaoyang,
2023-10 RMB 5,000,000.00
Development Co., Ltd Liaoning Liaoning
Xinyu Haihe Biotechnology Co., Xinyu, Xinyu,
2023-11 RMB 2,000,000.00
Ltd Jiangxi Jiangxi
Jiangmen Haizenong Marine Jiangmen, Jiangmen,
2023-11 RMB 1,000,000.00
Biotechnology Co., Ltd Guangdong Guangdong
Chuzhou Yidu Ecological Chuzhou, Chuzhou,
2023-11 RMB 1,000,000.00
Agriculture Co., Ltd Anhui Anhui
Zhuhai Haiyue Agriculture and RMB Zhuhai, Zhuhai,
2023-11
Animal Husbandry Co., Ltd. 20,000,000.00 Guangdong Guangdong
Qingyuan Haifulai Biotechnology RMB Qingyuan, Qingyuan,
2023-11
Co., Ltd 10,000,000.00 Guangdong Guangdong
HAID GROUP HAIDING 2023-11 USD 100,000.00 Kazakhstan Kazakhstan
276
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Principal
Time of Place of
Subsidiary Registered capital place of
incorporation registration
business
AGRICULTURE AND ANIMAL
HUSBANDRY KAZAKHSTAN
CO., Ltd.
Fuzhou Hailong Biotechnology RMB Fuzhou, Fuzhou,
2023-12
Co., Ltd. 30,000,000.00 Fujian Fujian
Zhangzhou Yidu Ecological Zhangpu, Zhangpu,
2023-12 RMB 1,000,000.00
Agriculture Development Co., Ltd Fujian Fujian
Dandong Haiyufeng Agricultural Liaoning Liaoning
2023-12 RMB 5,000,000.00
Development Co., Ltd Dandong Dandong
Shanwei Haizexin Marine RMB Shanwei, Shanwei,
2023-12
Biotechnology Co., Ltd 20,000,000.00 Guangdong Guangdong
(2) Subsidiaries deregistered in the current period
Net assets
Method Net profit on
The date of equity at
Subsidiary of equity the date of
disposal disposal
disposal disposal
date
Baotou Haicheng Feed Co., Ltd. Dissolved 2023/1/6 - -
Zhaoqing Ronghai Aquaculture
Dissolved 2023/2/2 - 2,385.00
Technology Co., Ltd.
Tacheng Xiyu Haisheng
Dissolved 2023/3/2 - -
Agricultural Development Co., Ltd.
Xuchang Haihe Feed Co., Ltd. Dissolved 2023/4/17 - 1,164.50
Jining Fengcheng Feed Co., Ltd. Dissolved 2023/7/13 - -9,511.75
Wugang Yitun Ecological
Dissolved 2023/8/10 - 5,887.27
Agriculture Co., Ltd.
Guangdong Haid Biotechnology
Dissolved 2023/8/14 - 374.39
Co., Ltd.
Hengyang Yitun Ecological
Dissolved 2023/8/18 - 415,122.67
Agriculture Co., Ltd.
Guangzhou Haiyi Investment Co.,
Dissolved 2023/9/20 - -
Ltd.
Shouguang Haihe Agriculture and
Animal Husbandry Technology Co., Dissolved 2023/9/27 - -2,538,266.57
Ltd.
Nano South Limited Dissolved 2023/10/26 - 91,173.77
Oceanic Forward Ventures Limited Dissolved 2023/10/26 - 41,961.02
Power Spring Investments Limited Dissolved 2023/10/26 - 41,630.57
Link Tide Limited Dissolved 2023/10/26 - 41,679.70
Ganong (Lianyungang) Animal
Dissolved 2023/11/30 - 227,501.73
Husbandry Technology Co., Ltd.
Meizhou Yitun Pig Breeding Co.,
Dissolved 2023/12/5 - -344,126.74
Ltd.
Guangzhou Zecan Investment
Dissolved 2023/12/5 - 60
Management Co., Ltd.
Guangdong Haid Poverty
Alleviation Investment Dissolved 2023/12/5 - 1,621.68
Development Co., Ltd.
Guangdong Hairuike
Dissolved 2023/12/14 - -5,776,944.51
Biotechnology Co., Ltd.
Guangzhou Chenzhao Investment
Dissolved 2023/12/19 - 2,880,579.69
Co., Ltd.
277
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Net assets
Method Net profit on
The date of equity at
Subsidiary of equity the date of
disposal disposal
disposal disposal
date
Guangzhou Haifengchang
Dissolved 2023/12/20 - -
Enterprise Management Co., Ltd.
Yingkou Fengmu Agricultural
Dissolved 2023/12/22 - -8,436,354.62
Development Co., Ltd.
Yibin Yucan Veterinary Service Co.,
Dissolved 2023/12/28 - 182,731.01
Ltd.
(3) New Subsidiaries acquired by other methods
Subsidiary Acquisition date Cost of acquisition
Guangzhou Jiutian Qingtan Livestock and Poultry
2023-01-03 -
Farm Co., Ltd
Guiyang Aizhu Livestock Technology Service Co.,
2023-03-28 -
Ltd
Guizhou Delian Zhiyun Network Technology Co.,
2023-08-25 650,000.00
Ltd
Note: The subsidiaries mentioned above did not constitute a business on the acquisition date.
7. Interests in Associates
① The Group had no significant joint ventures or associates during the period
② Summary of Financial Information of Insignificant joint ventures or associates
2023.12.31/ 2022.12.31/
Item
2023 2022
Associates:
Total carrying amount of investments 216,673,525.00 315,182,888.17
Totals calculated as shareholding percentage
--Net profit 49,717,167.08 46,505,412.37
--Other comprehensive income -788,212.16 -
--Total comprehensive income 48,928,954.92 46,505,412.37
VIII. Government grants
1. There were no government grants recognized in other receivables at the period end.
2. Government grants recognized in deferred income
(1) Government grants recognized in deferred income, and subsequently measured using the gross
presentation method
Presentatio
Additions Recognitio Other n item Related to
As at As at
Item during the n in profit chang recognized asset/inco
12/31/2022 12/31/2023
year and loss es in profit me
and loss
Developm
ent 21,150,984.2 2,217,146.3 27,834,937. Other Related to
8,901,100.00 -
Support 4 0 94 income asset
Fund
Developm
ent 10,767,721. Other Related to
1,085,073.94 9,850,000.00 167,352.12 -
Support 82 income income
Fund
Research 15,173,300.0 1,529,083.1 22,514,921. Other Related to
8,870,705.05 -
grants 0 3 92 income asset
Research 7,633,424.3 3,874,267.1 Other Related to
6,132,591.44 5,375,100.00 -
grants 0 4 income income
278
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Presentatio
Additions Recognitio Other n item Related to
As at As at
Item during the n in profit chang recognized asset/inco
12/31/2022 12/31/2023
year and loss es in profit me
and loss
Grants for
214,304,931. 40,478,948.9 27,092,818. 227,691,06 Other Related to
production -
29 4 83 1.40 income asset
activities
Grants for
14,281,219.0 1,863,975.8 12,417,243. Other Related to
production - -
5 7 18 income income
activities
Governme
nt 6,115,797.7 Other Related to
5,733,405.87 917,788.20 535,396.28 -
incentive 9 income asset
grants
Governme
nt Other Related to
9,900.00 500,000.00 500,000.00 - 9,900.00
incentive income income
grants
25,385,323.3 3,800,350.9 23,384,450. Other Related to
Others 1,799,478.00 -
6 6 40 income asset
Other Related to
Others 85,143.27 - 24,920.04 - 60,223.23
income income
297,039,277. 82,995,715.1 45,364,467. 334,670,52
Total -
51 4 83 4.82
(2) Government grants recognized in deferred income, and subsequently measured using the net amount
method
Presentatio
Addition Recognition n item Related to
As at Other As at
Item s during in profit recognized asset/incom
12/31/2022 changes 12/31/2023
the year and loss in profit e
and loss
-
Financial Financial Related to
2,489,438.89 - 211,889.53 2,135,925. 141,624.07
discount expenses asset
29
3. Government grants recognized in profit and loss, and subsequently measured using the gross
presentation method
Presentation
Recognized in profit Recognized in profit
item recognized Related to
Item and loss for the and loss for the
in profit and asset/income
previous year current year
loss
Development Related to
24,515,314.91 2,217,146.30 Other income
Support Fund asset
Development Related to
45,451,277.35 10,314,067.74 Other income
Support Fund income
Related to
Research grants 451,048.52 1,529,083.13 Other income
asset
Related to
Research grants 8,145,639.56 11,918,652.30 Other income
income
Grants for
Related to
production 20,736,806.34 27,092,818.83 Other income
asset
activities
Grants for
Related to
production 4,455,514.72 11,692,119.39 Other income
income
activities
279
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Presentation
Recognized in profit Recognized in profit
item recognized Related to
Item and loss for the and loss for the
in profit and asset/income
previous year current year
loss
Government Related to
204,372.37 535,396.28 Other income
incentive grants asset
Government Related to
8,633,919.00 13,554,402.58 Other income
incentive grants income
Related to
Other grants 5,599,928.09 3,800,350.96 Other income
asset
Related to
Other grants 16,555,268.94 9,280,051.40 Other income
income
Total 134,749,089.80 91,934,088.91
4. Government grants used net amount method to write-down related costs
Related cost Related cost Presentation
Related to
Item write-down for write-down for item recognized
asset/income
the previous year the current year in related costs
Financial
Financial discount 1,135,475.02 2,572,024.89 Related to income
expenses
5. No government grants refunded in the current year.
IX. Risks Management of Financial Instruments
The main financial instruments of the Group include cash at bank and on hand, notes receivable, accounts
receivable, other receivables, non-current assets due within one year, other current assets, entrusted loan
issued and advances to customer, held-for-trading financial assets, debt investments, other non-current
financial 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 liability and
long-term payables. Details of various financial instruments have been disclosed in the relevant notes. The
risks associated with these financial instruments and the risk management policies adopted by the Group to
reduce these risks are described below. The management of the Group manages and monitors these
exposures 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 risk
management, the basic strategy of the Group's risk management is to identify and analyze various kind of
risks faced by the Group, set up an appropriate risk tolerance bottom line and design the internal control
process to monitor the risk level. The Group reviews the risk management policy and relevant internal
control system to adapt to the changes of market or operations regularly. The Group’s internal audit
department also reviews regularly or randomly whether the performance of internal control system is
complied 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 the
implementation of risk management measures. The Group has formulated risk management policies to
identify and analyze the risks faced by the Group. These risk management policies specify specific risks
and cover many aspects such as management of market risk, credit risk and liquidity risk. The Group
regularly assesses changes in the market environment and the Group’s operating activities to decide
whether to update the risk management policies and systems. Risk management of the Group is carried out
by the relevant departments in accordance with the policies approved by the Board of Directors, and these
departments identify, evaluate and hedge relevant risks through close cooperation with other business units
of the Group.
The Group diversifies the risks of financial instruments through appropriate diversified investments and
business portfolios, and reduces the risk of concentration in a single industry, specific region, or specific
counterparty by formulating appropriate risk management policies.
(1) Credit Risk
280
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Credit risk refers to the risk that the counterparty fails to fulfill its contractual obligations, resulting in
financial losses to the Group.
The Group manages credit risk on the basis of portfolio. Credit risk mainly arises from bank deposits, notes
receivable, accounts receivable, other receivables, Long-term receivables, entrusted loan issued and
advances to customer etc.
The Group's bank deposits are mainly deposited in financial institutions with reputation and high credit
ratings. The Group expects that the credit risk of bank deposits is low.
With regard to notes receivable, accounts receivable, other receivables, loans and advances to customers,
the Group establishes relevant policies to control credit risk exposure. The Group assesses 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 credit records of
customers on a regular basis. For customers with poor credit records, the Group will issue reminders in
writing, shorten the credit period or cancel the credit period, so as to ensure that the overall credit risk of
the Group is within the controllable range.
The debtors of the Group are spread in different industry and geographic region. The Group continuously
performs 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 the
balance 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 7.41% of total accounts
receivable (2022: 10.35%). Other receivables due from the top five companies with outstanding debts of
the Group account for 30.67% of total accounts receivable (2022: 42.64%).
(2) Liquidity Risk
Liquidity risk is the risk that the Group is short of funds to deliver cash or other financial assets or meet
other settlement obligations.
Each subsidiary of the Group is responsible for cash flow forecast. The financial companies of the Group
monitors the long-term and short-term capital requirements at the group level based on the cash flow
forecasts of each subsidiary. The Group coordinates the surplus funds within the group through the funding
pool plan setup in the large financial institutions, and ensure that each member has sufficient cash reserves
to meet the payment obligations due for settlement. In addition, the Group entered into financing credit
agreements with main business banks to support the Group in meeting its obligations related to commercial
bills.
The Group raises working capital through funds generated from operating business, bank and other
borrowings. As of December 31, 2023, the Group's unused bank loan amount was RMB 25.967 billion
(December 31, 2022: RMB 20.554 billion).
(3) Market Risk
Market risk of financial instrument is the risk of fluctuation in the fair value or future cash flow due to
changes of market price, including interest rate risk, foreign exchange rate risk and other price risk.
Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market interest rates. Interest rate risk can arise from confirmed interest-bearing
financial 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 and
Financial liabilities with fixed interest rates causes interest rate risks in fair value to the Group. The Group
determines the proportion of fixed and floating interest rate contracts according to current market situation
and maintain the appropriate mixture of the instruments with fixed and floating interest rate by regular
review and monitoring.
The Group closely monitors the impact of changes in interest rates on the Group's interest rate risk. The
Group does not currently have an interest rate hedging policy. However, management is responsible for
monitoring interest rate risk and will consider hedging significant interest rate exposures as and when
required. An increase in interest rates could increase the cost of new interest-bearing debt and interest
expense on the Group's outstanding interest-bearing debt with floating interest rates and have a material
adverse effect on the Group's financial results. Management will make timely adjustments based on the
latest market conditions.
Foreign Exchange rate risk
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Foreign exchange rate risk is the risk of fluctuation of fair value or future cash flow of financial instrument
due to the changes of foreign exchange rate. Foreign exchange rate risk can arise from financial instrument
measured at foreign currency instead of reporting currency.
The Group’s principal business is operated in China and settled in RMB. The raw materials purchased and
imported by the Group have achieved a certain scale, and there is an increase in the transactions amount of
overseas subsidiaries of the Group overseas uses with other currencies other than RMB as their functional
currency. Therefore, fluctuations in RMB exchange rate have exerted certain impact on the Group’s
business operations.
As of December 31, 2023, the Group’s major monetary items in foreign currencies are financial assets and
financial liabilities denominated in US dollar, Vietnamese dong, Rupiah (refer to Note V. 70 (1) Monetary
items in foreign currencies for more details). Since other currencies are used less frequently and the amount
is relatively small, changes in their exchange rates has no significant impact on the business activities of the
Group.
The Group closely monitors the impact of exchange rate movements on the Group's exchange rate risk and
continuously monitors the size of the Group's foreign currency transactions and foreign currency assets and
liabilities in order to minimize its exposure to foreign exchange risk. To this end, the Group seeks to hedge
its foreign exchange risk by entering into forward exchange contracts or currency swap contracts as
appropriate.
Other price risk
Other price risk is the fluctuation risk due to the changes of market prices besides foreign exchange risk
and interest rate risk due to whether individual financial instrument or its issuer or all similar financial
instruments traded in the market. It may be affected by the changes of the price of goods or equity
instrument. Other price risk can arise from changes in commodity prices, stock market indices, equity
instrument prices, and other risk variables.
The Company upholds the basic principle of serving spot goods -- the spot procurement program, and
regards risk control as the core principle. Meanwhile, it will adopt one or more than one arbitrage tool for
hedging to avoid the commodity price risk and credit risk etc., and changes in the fair value or cash flow of
the arbitrage tool are expected to offset all or part of the changes in the fair value or cash flow of the
hedged item, in which way, the impact of price fluctuations in raw materials and commodities on
production 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 a
going concern, thereby providing returns to shareholders and benefiting other stakeholders, while
maintaining 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 the
amount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equity
instruments or sell assets to reduce debt.
The Group monitors its capital structure on the basis of gearing ratio (i.e. total liabilities divided by total
assets). As of December 31, 2023, the Group's gearing ratio was 53.27% (December 31, 2022: 56.47%).
3. Hedging
(1) Risk management of hedging business
Corresponding Qualitative Economic Achievement Effect of
risk and relationships of expected corresponding
management quantitative between hedged risk hedging
Item
strategies and information items and related management activities on
objectives on hedged hedging instruments objectives on risk exposure
risk effectiveness
Exchange rate There is an economic
Locking in the fluctuations relationship between
Purchasing
exchange rate result in the hedged item and The expected
hedging
risk of foreign corresponding the hedging risk
instruments to
Exchange currency assets exchange instrument, which management
reduce the
rate risk and foreign gains and causes the hedging objectives
impact of
currency losses on the instruments and the can be
exchange rate
liabilities held foreign value of hedged items achieved.
risk exposure.
by the group. currency to change in opposite
assets and directions due to
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Corresponding Qualitative Economic Achievement Effect of
risk and relationships of expected corresponding
management quantitative between hedged risk hedging
Item
strategies and information items and related management activities on
objectives on hedged hedging instruments objectives on risk exposure
risk effectiveness
liabilities held encountering the
by the group. same hedged risk.
The There is an economic
fluctuation of relationship between
Purchase
raw material the hedged item and
hedging
and finished the hedging The expected
instruments to
Locking in the goods leads to instrument, which risk
reduce the
Commodity commodity the causes the hedging management
impact of
price risk price risk of the fluctuations in instruments and the objectives
commodity
group. the group's value of hedged items can be
price risk
operating to change in opposite achieved.
exposure.
income and directions due to
operating encountering the
costs. same hedged risk.
(2) Conducting eligible hedging businesses and applying hedge accounting
② Type of hedging risk
Item Carrying Cumulative fair Hedge Relevant effects of hedge
amount related value hedge effectiveness accounting on the
to hedged items adjustments of and sources of Company’s financial
and hedging hedged items ineffective statements
instruments included in the portion
carrying amount of
recognized hedged
items
Except for hedging costs,
There was no
the changes in fair value of
ineffective
hedging instruments are
portion
offset against exchange
resulting from
Exchange gains and losses arising
4,452,295.16 Note 1 exchange rate
rate risk from foreign currency
risk during the
assets/liabilities, and the
period of the
difference after offsetting is
financial
recognized in other
statement.
comprehensive income.
Refer to the
Commodity categories of Refer to the categories of
256,386,080.00 Note 2
price risk hedges for hedges for details.
details.
③ Categories of hedges
Item Carrying amount Cumulative fair Hedge Relevant effects of hedge
related to hedged value hedge effectiveness accounting on the
items and adjustments of and sources of Company’s financial
hedging hedged items ineffective statements
instruments included in the portion
carrying amount
of recognized
hedged items
Commodity The effective portion of the
price risk— 256,386,080.00 Note 2 Note 2 changes in fair value of
Cash flow hedging instruments is
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hedge 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 such
as foreign currency monetary funds, foreign currency bank borrowings, foreign currency accounts payable,
etc. through forward exchange contracts, foreign exchange option contracts, foreign exchange swap
contracts, and currency swap contracts. The forward exchange contracts and foreign exchange option
contracts signed by the Group meet the application conditions of hedging accounting.
On December 31, 2023, the Group held the forward exchange contract with a nominal amount of USD
64,380,878.39. According to the above agreement, the Group may or has the right to sell dollars at a fixed
exchange rate on the lock in maturity date, with the aim of hedging foreign currency risks arising from
internal transactions within the Group that cannot be offset in the consolidated financial statements.
On December 31, 2023, the Group held the forward foreign exchange contract with a nominal amount of
IDR 154,000,000 0.00. According to the above agreement, the Group may or has the right to sell rupiahs at
a fixed exchange rate on the lock in maturity date, with the aim of hedging foreign currency risks arising
from 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 the
intrinsic value of options as hedging instruments; The Group separates the forward and spot elements of
forward contracts and only designates changes in the value of spot elements as hedging instruments; The
Group separates the foreign exchange basis of financial instruments and only designates financial
instruments 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. The
Group designates foreign currency forwards and commodity futures contracts as hedging instrument for the
expected procurement and sales, so as to avoid the risk of cash flow changes caused by the prospective
commodity prices and exchange rate fluctuations.
At the end of the reporting period, the balance of cash flow reserves is as follows:
Notional Carrying amount of hedging Items presented
Changes in
quantity of instrument for assets and
Cash flow fair value of
hedging liabilities that
hedge the invalid
instrument Assets Liabilities include hedging
part of hedge
(tons) instruments
Commodity
Held-for-trading
price risk - 259,568.00 256,386,080.00 - -
financial assets
Expected sales
Continued:
The amount of
closing positions of
hedging instruments
Cash flow hedging
Cash flow hedge but not yet carried Impact of Income tax
reserves
forward to profit or
loss at the end of the
period
Commodity price risk -
158,442,735.13 53,774,179.49 361,054,635.64
Expected sales
(3) Conducting hedges for risk management with expectation to achieve risk management objectives but
not applying hedge accounting
Reasons for not applying
Item Effect on the financial statements
hedge accounting
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The profit or loss of Held-for-
The Group has not officially trading financial assets or liabilities
Commodity price risk designated hedging are directly recognized in the profit
instruments and hedged items or loss arising from changes in fair
value and investment income.
4. Transfer of financial assets
(1) Classification of transfer methods
Nature of Amount of
Status of
financial financial Basis for determining
Item derecognitio
assets assets derecognition
n
transferred transferred
Bank acceptance notes discounted
are accepted by banks with higher
Bank
credit ratings, with minimal credit
acceptance
Discount of and deferred payment risks. Almost
notes 71,701,923.00 Derecognized
notes all risks and rewards have already
discounted but
been transferred during discounting,
unexpired
thereby the recognition is
terminated.
Due to the relatively high credit risk
and deferred payment risk of
Commercial commercial acceptance notes
Endorsemen acceptance Not receivable, the risks and rewards
67,245.20
t of notes notes endorsed derecognized related to the notes during
but unexpired endorsement have not been
transferred, thereby recognition has
not been terminated.
Total 71,769,168.20
(2) Financial assets derecognised due to transfer
Modalities for Gain or loss
Amount of financial
Item the transfer of relating to
assets derecognized
financial assets derecognition
Bank acceptance notes discounted but
Bill discounted 71,701,923.00 -404,249.41
unexpired
(3) Continued Involvement in the Transfer of Assets Financial Assets
Amount of assets Amount of liabilities
Method of assets
Item resulting from resulting from
transfer
continued involvement continued involvement
Commercial acceptance notes Endorsement of
67,245.20 67,245.20
endorsed but unexpired notes
X. Disclosures of Fair Value
The level in which fair value measurement is categorized is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement. The levels are
defined 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 indirectly
observable for the assets or liabilities.
Level 3 inputs: inputs that are unobservable for assets or liabilities. (unobservable input)
Items and Amount Measured at Fair Value
As at December 31, 2023, assets and liabilities measured at fair value based on the three levels above are
shown as follows:
Item Level 1 Level 2 Level 3 Total
I. Recurring fair value
measurement
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Item Level 1 Level 2 Level 3 Total
261,116,260.0 1,025,636,238.9 1,286,752,498.9
1. Held-for-trading financial assets -
1 4 5
261,116,260.0
(1) Derivative financial assets - 8,898,314.44 270,014,574.45
1
1,016,737,924.5 1,016,737,924.5
(2) Financial Products - -
0 0
2. Other non-current financial assets - - 248,683,611.24 248,683,611.24
Total assets measured at fair value 261,116,260.0 1,274,319,850.1 1,535,436,110.1
-
on a recurring basis 1 8 9
3. Held-for-trading financial
20,449,620.00 - 1,754,224.99 22,203,844.99
liabilities
Total liabilities measured at fair
20,449,620.00 - 1,754,224.99 22,203,844.99
value on a recurring basis
The Group uses the date of occurrence of the event that results in the transition between levels as the point
at which the transition between levels is recognized. During the year, there was no transition between Level
1 and Level 2, nor was there any transfer to or from Level 3 in the fair value measurement of the Group's
financial assets and financial liabilities.
For financial instruments traded in an active market, the Group determines their fair values using their
quoted prices in an active market; for financial instruments not traded in an active market, the Group uses
valuation techniques to determine their fair values. The valuation models used are mainly discounted cash
flow models and market comparable company models, etc. The inputs to the valuation techniques mainly
include risk-free interest rates, benchmark interest rates, exchange rates, credit spreads, liquidity premiums,
and illiquidity discounts.
XI. Related Parties and Related-Party Transactions
1. Parent company
Registered Shareholding Percentage of
Place of capital Percentage in voting rights
Name Business nature
registration (RMB ten the Company in the
thousand) (%) Company (%)
Guangzhou
Haihao Investment,
Investment Co., trading, import
Guangzhou,
Ltd. (hereinafter and export of 3,000.00 54.73 54.73
Guangdong
referred to as commodities
“Guangzhou and technologies
Haihao”)
Information on the Company's parent company:
Guangzhou Haihao is the ultimate controlling party 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, change of the registered capital of the parent company is as follows:
(RMB ten thousand)
As at 31/12/2022 Addition Reduction As at 31/12/2023
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 important 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 this
year or previous year are as follows:
Names of joint ventures or associates Relationship with the Group
Alaer Ruili Heng Sheng Protein Co., Ltd. Associate, the Group holds 35% of equity
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Names of joint ventures or associates Relationship with the Group
Wujiaqu Taikun Plant Protein Co., Ltd. Associate, the Group holds 35% of equity
Bangpu Seed Technology Co., Ltd. Associate, the Group holds 16% of equity
Foshan Haihang Xingfa Agriculture and Animal
Associate, the Group holds 49% of equity
Husbandry Development Co., Ltd.
Sichuan Zhihui Fishing Machine Technology Co.,
Associate, the Group holds 40% of equity
Ltd.
Former associate, the Group held 49% and sold all
Guangdong Zhongyu Duck Industry Co., Ltd.
the share during the period
Guangzhou Hengjuchang Venture Capital Former associate, the Group held 33.46653%, and
Partnership (Limited partnership) it was cancelled during the period
4. Information on other related parties
Name Relationship with the Group
Subsidiary of holding shareholder Guangzhou
Guangdong Haihaowan Development Co., Ltd.
Haihao
Guangzhou Haoyue Biotechnology Development Subsidiary of holding shareholder Guangzhou
Co., Ltd. Haihao
Subsidiary of the associate Foshan Haihang Xingfa
Luoding Xingfa Xingji Agriculture and Animal
Agriculture and Animal Husbandry Development
Husbandry Development Co., Ltd.
Co., Ltd.
A wholly-owned subsidiary of the associate,
Ping’ anfa Agriculture Co., Ltd.
Vietnam Haid Yingtaogu Farm Co., Ltd.
Key management, resigned from the position of
employee representative supervisor and chairman
of the Supervisory Committee of the Sixth
Zhenxiong Qi
Supervisory Committee of the Company in
September 2023, and continued to serve in the
Company after resigning from the above positions.
Mingzhong Chen Key management
Zhijian Huang Key management
5. Transactions with related parties
(1) Purchases/sales
① Purchase of goods/receiving of services
Nature of
Related party 2023 2022
transaction
Alaer Ruili Heng Sheng Protein Co.,
Raw material 236,780,332.08 160,656,964.48
Ltd.
Wujiaqu Taikun Plant Protein Co., Ltd. Raw material 214,034,525.36 169,559,403.43
Raw material,
Ping’anfa Agriculture Co., Ltd. Agricultural 7,074,065.22 2,788,201.68
products
Sichuan Zhihui Fishing Machine Engineering
4,187,521.00 -
Technology Co., Ltd. equipment
Raw material,
Bangpu Seed Technology Co., Ltd Agricultural 3,172,800.00 3,331,880.00
products
Foshan Haihang Xingfa Agriculture and
Agricultural
Animal Husbandry Development Co., 405,699.82 312,464.00
products
Ltd.
② Sales of goods/rendering of services
Nature of
Related party 2023 2022
transaction
287
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Nature of
Related party 2023 2022
transaction
Foshan Haihang Xingfa Agriculture and
Feed and animal
Animal Husbandry Development Co., 87,974,883.19 85,733,206.56
healthcare products
Ltd.
Feed and animal
Ping’anfa Agriculture Co., Ltd. 80,869,024.67 64,577,209.07
healthcare products
Guangdong Zhongyu Duck Industry Feed and animal
6,426,761.89 13,855,118.42
Co.Ltd. healthcare products
Alaer Ruili Heng Sheng Protein Co.,
Services 300,000.00 406,785.71
Ltd.
Wujiaqu Taikun Plant Protein Co., Ltd. Services 300,000.00 450,000.00
Luoding Xingfa Xingji Agriculture and
Feed and animal
Animal Husbandry Development Co., 9,240.00 7,289,347.50
healthcare products
Ltd.
Feed and animal
Bangpu Seed Technology Co., Ltd 5,500.00 1,100.00
healthcare products
Agricultural
Guangdong Haihaowan Development products, Feed and
5,411.50 116,536.51
Co., Ltd. animal healthcare
products
Guangzhou Haoyue Biotechnology
Services - 11,490.00
Development Co., Ltd.
Agricultural
Sichuan Zhihui Fishing Machine products, Feed and
- 7,482.50
Technology Co., Ltd. animal healthcare
products
(2) Trust/contracting arrangement
No such transactions during the reporting period.
(3) Lease
① As the lessor
Lease income Lease income
Lessee Type of assets leased
recognized in 2023 recognized in 2022
Guangzhou Haihao
House building 54,000.00 54,000.00
Investment Co., Ltd.
② As the lessee
Lease expense Lease expense
Lessor Type of assets leased
paid in 2023 paid in 2022
Mingzhong Chen House building 1,438,880.00 1,420,742.90
Note: The price in the above lease with the related parties was determined based on market prices upon
negotiation.
The Company did not acquire any new right-of-use assets during the year as the lessee.
Interest expense on lease liabilities recognized by the Company as lessee during the year:
Interest expense Interest expense
Lessor Type of assets leased
recognized in 2023 recognized in 2022
Mingzhong Chen House building 42,327.49 92,332.43
(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 2023 2022
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Related party Nature of transaction 2023 2022
Guangzhou Hengjuchang
49% equity interest in Guangdong
Venture Capital Partnership 375,603,500.00 -
Yiheng Investment Co., LTD
(Limited partnership)
(7) Remuneration of key management personnel
Information about remuneration is as follows:
(RMB ten thousand)
Item 2023 2022
Remuneration of key
6,968.77 5,624.34
management personnel
(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
2023.12.31 2022.12.31
Provision
Provision
Item Related party for bad
for bad and
Book value and Book value
doubtful
doubtful
debts
debts
Guangzhou Haoyue
Long-term Biotechnology 15,210,000.0
Development Co., Ltd. - - -
receivables 0
（Note 1）
Other
Mingzhong Chen 999,810.00 - - -
receivables
Alaer Ruili Heng Sheng
Prepayment 789,390.60 - 961,821.15 -
Protein Co., Ltd
Wujiaqu Taikun Plant
Prepayment 502,489.01 - 240,071.72 -
Protein Co., Ltd
Other non- Sichuan Zhihui Fishing
current Machine Technology Co., 33,441.00 - 597,000.00 -
assets Ltd.
Foshan Haihang Xingfa
Accounts Agriculture and Animal
19,074.00 418.50 21,600.00 490.32
receivable Husbandry Development
Co., Ltd.
Luoding Xingfa Xingji
Accounts Agriculture and Animal
6,600.00 144.81 - -
receivable Husbandry Development
Co., Ltd.
Accounts Guangdong Haihaowan
2,867.50 62.91 - -
receivable Development Co., Ltd.
Accounts Guangdong Zhongyu
- - 6,791,454.22 1,482,169.01
receivable Duck Industry Co.Ltd.
Other Guangdong Zhongyu
- - 5,977,747.20 3,432,594.77
receivables Duck Industry Co.Ltd.
Foshan Haihang Xingfa
Other Agriculture and Animal
- - 12,544.17 420.23
receivables Husbandry Development
Co., Ltd.
Long-term
Mingzhong Chen - - 999,810.00 -
receivables
Bangpu Seed Technology
Prepayment - - 360,000.00 -
Co., Ltd
289
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Note 1: The Company has signed the "House Lease Contract" with Guangzhou Haoyue Biotechnology
Development Co., LTD. The company intended to rent the building of Haoyue Biology located in the
Science Park west of HL18G-06 Hualong Avenue, Hualong Town, Panyu District, Guangzhou, and paid a
deposit of RMB 15,210,000.00 according to the contract.
290
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(2) Payables to related parties
Item Related party 2023.12.31 2022.12.31
Notes payable Alaer Ruili Heng Sheng Protein Co., Ltd 71,900,000.00 35,175,000.00
Notes payable Wujiaqu Taikun Plant Protein Co., Ltd 13,275,000.00 40,425,000.00
Contract Liabilities Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. 561,196.37 538,769.56
Non-current liabilities within 1 year Mingzhong Chen 461,241.06 1,346,355.78
Account payables Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. 54,339.50 -
Other payables Foshan Haihang Xingfa Agriculture and Animal Husbandry Development Co., Ltd. - 1,849.00
Other payables Zhijian Huang - 16,106.82
Other payables Zhenxiong Qi - 3,396.70
Lease liabilities Mingzhong Chen - 442,919.72
XII. Share-based Payments
1. The summary of share-based payments
Granted in the Current Exercised in the Vested in the Current Expired in the Current
Type of grantee Period Current Period Period Period
Number Amount Number Amount Number Amount Number Amount
First grant of stock option
incentive plan in 2021 (Note - - 2,588,909.00 48,050,151.04 - - 16,037,163.00 361,086,256.88
1)
Stock option incentive plan
reserved awarded in 2021 - - - - - - 1,558,580.00 17,268,095.20
(Note 2)
Four phases of the core team
employee stock ownership - - - - 1,194,582.00 94,503,382.02 - -
Plan(Note 3)
Employee stock ownership
10,272,108.00 240,880,932.60 - - - - 10,272,108.00 240,880,932.60
plan in 2023(Note 4)
Total 10,272,108.00 240,880,932.60 2,588,909.00 48,050,151.04 1,194,582.00 94,503,382.02 27,867,851.00 619,235,284.68
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Note 1: A total of 2,588,909.00 stock options in the first exercise period of the first grant of the 2021 Stock
Option Incentive Plan were exercised in the current period, and a total of 6,271,803.00 stock options which
had been unlocked and had not yet been exercised expired in the current period; a total of 8,449,320.00
stock options in the third exercise period of the first grant of the 2021 Stock Option Incentive Plan lapsed
in the current period due to the failure to meet the conditions for exercise; some of the stock option
incentive recipients of the first grant left their jobs or were released from labor relations, violated
professional ethics or damaged the interests of the Company, and the stock options granted to them which
had not yet met the conditions for exercise were 1,316,000 stock options.
Note 2: A total of 1,208,180.00 stock options reserved for the second exercise period under the 2021 Stock
Option Incentive Plan lapsed during the current period due to the failure to meet the exercise conditions;
350,400.00 stock options granted to some of the incentive recipients of the reserved stock options that had
not yet met the exercise conditions were cancelled and lapsed due to the recipients' departure from the
Company or termination of the labor relationship, violation of professional ethics, or detriment to the
Company's interests.
Note 3: As of December 31, 2023, the four phases of the core team Employee Stock Ownership Plan will
expire and the unlocking conditions will be achieved.
Note 4: On July 17, 2023, the Company's Third Extraordinary General Meeting of 2023 considered and
passed the resolution related to the 2023 Employee Stock Ownership Plan, and a total of 10,272,108.00
resolutions were granted, which lapsed during the current period due to inability to meet the conditions for
exercising the rights.
Stock options or other equity instruments issued and outstanding at the end of 12/31/2023
Stock options issued and Other equity instruments
outstanding at the end of issued and outstanding at the
12/31/2023 end of 12/31/2023
Type of grantee
Range of Remaining Range of Remaining
exercise term of the exercise term of the
prices contract prices contract
2021 Stock Option Incentive Plan 5.33-41.33
RMB 59.21 - -
Initial Grant months
2021 Stock Option Incentive Plan 4.50-40.50
RMB 59.21 - -
Reserved for grant months
2. Information on equity-settled share-based payments
Using Black-Scholes option pricing model
Method to determine the fair value of equity instruments at
to calculate fair value of the Company’s
grant dates
share options
Significant parameters of grant date fair value of equity Risk-free rate, historical stock price
instruments volatility, dividend yield
When the equity instruments granted for
Basis for determining the number of equity instruments for each period satisfy the performance
which options are exercisable conditions set by the Company for the
corresponding judgment period.
Reasons for significant differences between current and
None.
prior period estimates
Accumulated amount in capital reserve for equity-settled 675,644,122.30
3. Information on cash-settled share-based payments
No such events occurred during the reporting period.
4. Current share payment expenses
Payment of expenses in
Type of granting object
equity - settled shares
First grant of stock option incentive plan in 2021 -8,837,010.92
Stock option incentive plan reserved awarded in 2021 12,377,427.40
Four phases of the core team employee stock ownership Plan 10,974,586.32
Total 14,515,002.80
5. Information on modification and termination of share-based payments
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No such event during the reporting period.
XIII. Commitments and Contingencies
1. Significant Commitments
As at December 31, 2023, 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, 2023, the Group provided guarantees for the following loans:
Amount
Company Name Guarantee (RMB ten Period Note
thousand)
1.Subsidiaries
Wholly-owned subsidiaries
Bank loan financing
and holding subsidiaries
and payable for raw 246,762.98 1-10 years
within the scope of
material purchased
consolidation
2. Other companies
Guarantees for
Farmers and distributors of financings to
151,208.71 1-3 years
holding subsidiaries purchase the Group’s
products
Total 397,971.69
As at December 31, 2023, the Group had no other contingencies to be disclosed.
XIV. Post balance sheet events
1. Explanation of important non-adjustment events after the balance sheet date
As at April 19, 2024, the Group had no material post-balance sheet non-adjusting events to be disclosed.
2. Profit appropriations after balance sheet date
According to the profit distribution plan approved by the Board of Directors on
April 19, 2024, it is planned to issue a cash dividend of RMB 5 (including tax)
per 10 shares based on the total capital stock of the repurchased shares
Profit distributions or deducted from the share registration date when the future distribution plan is
dividends proposed 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 of the general meeting of shareholders.
3. Significant sales returns
As at April 19, 2024, the Group has no material sales returns to be disclosed.
4. Other events after the balance sheet date
As at April 19, 2024, 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;
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Animal protection division, production and sales 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 welfare;
Other divisions, Group headquarters and divisions that support the operations of the above related divisions.
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Division reports information according to the accounting policies adopted in each division to report to management and measurement standard, the accounting policies and
measurement basis and when preparing financial statements of the accounting policy and consistent measurement basis.
(2) Divisions profit or loss, assets and liabilities
Animal
Aquaculture
Current or end of period Feed division protection Trading division Other divisions Offset Total
Division
division
-
Operating income 103,283,277,745.16 1,380,643,464.21 15,510,539,038.72 14,039,590,215.60 502,303,481.13 116,117,168,742.97
18,599,185,201.85
Including: transaction
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
income from third party
Revenue from inter- -
7,327,039,949.43 286,027,209.58 18,465,184.56 10,639,089,332.06 328,563,526.22 -
divisional transactions 18,599,185,201.85
Operating Costs and -
98,878,111,978.39 1,072,959,904.28 15,693,878,048.60 13,862,530,380.85 860,388,930.27 112,453,887,429.56
expenses 17,913,981,812.83
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 44,746,735,775.61
31,892,604,243.22
-
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 23,835,418,850.22
21,503,505,535.38
6. Others
There were no other significant events to be disclosed during the reporting period.
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XVI. Notes to the Company’s financial statements
1. Other Receivables
Item As at 12/31/2023 As at 12/31/2022
Interest receivables - -
Dividend receivables - -
Other receivables 11,769,046,063.77 13,125,884,408.71
Total 11,769,046,063.77 13,125,884,408.71
(1) Other receivables
① Other receivables by aging
Aging As at 12/31/2023 As at 12/31/2022
Within 1 year 11,760,586,478.27 13,118,142,082.44
1 to 2 years 3,071,617.00 8,578,062.40
2 to 3 years 4,965,925.40 774,640.00
3 to 4 years 774,640.00 -
4 to 5 years - 59,809.00
Over 5 years 60,809.00 2,050.00
Sub-total 11,769,459,469.67 13,127,556,643.84
Less: Provision for bad and doubtful debts 413,405.90 1,672,235.13
Total 11,769,046,063.77 13,125,884,408.71
② Other receivables disclosed by nature
Item As at 12/31/2023 As at 12/31/2022
Guarantee deposit 1,430,171.38 129,779,191.38
Futures margin 20,045,550.00 -
Receivable due from related parties with the scope of
11,726,869,013.02 12,978,097,436.52
consolidation
Petty cash 339,079.55 1,034,700.00
Others 20,775,655.72 18,645,315.94
Total 11,769,459,469.67 13,127,556,643.84
③ Recoveries or reversals of provision for bad and doubtful debts in the current period
Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Provision for bad and expected credit expected credit
12-month Total
doubtful debts losses losses
expected credit
(credit (credit
losses
impairment has impairment has
not yet occur) occurred)
Balance at 31/12/2022 1,672,235.13 - - 1,672,235.13
In the current period
-Transfer into stage 2 - - - -
-Transfer into stage 3 - - - -
-Reversal back to stage 2 - - - -
-Reversal back to stage 1 - - - -
Accrual in the current period -1,258,829.23 - - -1,258,829.23
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Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Provision for bad and expected credit expected credit
12-month Total
doubtful debts losses losses
expected credit
(credit (credit
losses
impairment has impairment has
not yet occur) occurred)
Reversal in the current period - - - -
Write-off in the current
- - - -
period
Balance at 31/12/2023 413,405.90 - - 413,405.90
There was no significant allowance for bad debts to be turned back or recovered during current period.
④ There were no written-off in other receivables during current period.
⑤ Other receivables with top five debtors
Proportion in Provision for
total other bad and
Debtor Payment nature Book balance Aging
receivables doubtful
(%) debts
Receivable due from
related parties with 1,703,410,653. Within one
Unit 7 14.47 -
the scope of 01 year
consolidation
Receivable due from
related parties with 1,089,620,653. Within one
Unit 8 9.26 -
the scope of 73 year
consolidation
Receivable due from
related parties with Within one
Unit 9 375,737,482.80 3.19 -
the scope of year
consolidation
Receivable due from
related parties with Within one
Unit 10 284,895,915.79 2.42 -
the scope of year
consolidation
Receivable due from
related parties with Within one
Unit 11 283,519,338.14 2.41 -
the scope of year
consolidation
3,737,184,043.
Total 31.75
47
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2. Long-Term Equity Investments
2023.12.31 2022.12.31
Item
Book value Provision for impairment Carrying amount Book value Provision for impairment Carrying amount
Investment in Subsidiary 10,975,910,004.18 8,112,320.66 10,967,797,683.52 9,492,891,848.44 - 9,492,891,848.44
Investment in Associate 10,160,776.56 - 10,160,776.56 10,518,210.65 - 10,518,210.65
Total 10,986,070,780.74 8,112,320.66 10,977,958,460.08 9,503,410,059.09 - 9,503,410,059.09
(1) Investment in Subsidiary
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Guangzhou Haiwei Feed Co.,
17,958,890.83 - -87,899.60 - - - 17,870,991.23 -
Ltd.
Guangzhou Rongda Aquatic
Products Technology Co., 667,256.91 - -2,209.46 - - - 665,047.45 -
Ltd.
Guangzhou Dachuan Feed
21,483,739.09 - -988,237.32 - - - 20,495,501.77 -
Co., Ltd.
Qinzhou Hailong Feed Co.,
5,358,533.71 - 35,039,600.87 - - - 40,398,134.58 -
Ltd.
Guangzhou Haihe Feed Co.,
107,692,400.00 - - - - - 107,692,400.00 -
Ltd.
Dongguan Haid Feed Co.,
24,513,006.45 - 103,108.80 - - - 24,616,115.25 -
Ltd.
Huilong Feed Co., Ltd. 68,683.08 - 10,984.06 - - - 79,667.14 -
Jiangmen Haid Feed Co., Ltd. 86,282,616.55 - 583,644.92 - - - 86,866,261.47 -
Hainan Haid Biotechnology
220,865.32 - 59,956,283.12 - - - 60,177,148.44 -
Co., Ltd.
Haid Egypt Co.,Ltd 626,139.68 - -275,870.81 - - - 350,268.87 -
Maoming Hailong Feed Co.,
95,277,626.69 - -38,820.47 - - - 95,238,806.22 -
Ltd.
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Sihong Haiding Feed Co.,
155,549.52 - -2,799.73 - - - 152,749.79 -
Ltd.
Junan Haiding Feed Co., Ltd. 263,387.99 - -12,617.47 - - - 250,770.52 -
Yichang Zhihai Agriculture
and Animal Husbandry Co., 67,184.98 - -2,161.37 - - - 65,023.61 -
Ltd.
Jiangmen A&T Xinhui Feed
26,334,092.54 - 5,833.15 - - - 26,339,925.69 -
Co., Ltd.
Henan Haiding Feed Co., Ltd. 228,388.57 - 7,219.57 - - - 235,608.14 -
Zhuhai Hailong
21,402,662.74 - -183,969.60 - - - 21,218,693.14 -
Biotechnology Co., Ltd.
Gaoan Haid Biotechnology
42,283,772.21 - -57,848.00 - - - 42,225,924.21 -
Co., Ltd.
Yangjiang Haid Feed Co.,
10,043,084.28 - 144,694.42 - - - 10,187,778.70 -
Ltd.
Laiyang Haihe Agriculture
132,511.14 - -16,517.72 - - - 115,993.42 -
and Animal Husbandry
Hunan Haid Bio-Feed Co.,
21,746,185.59 - -32,499.77 - - - 21,713,685.82 -
Ltd.
Qingzhou Haidinghe
376,588.29 - -1,513.24 - - - 375,075.05 -
Xinsheng Feed Co., Ltd.
Linyi Haiding Lusheng Feed
70,554.63 - -1,210.53 - - - 69,344.10 -
Co., Ltd.
Jingzhou Haid Feed Co., Ltd. 106,955,990.18 - 80,650.88 - - - 107,036,641.06 -
Guangzhou Nansha Haid
7,880,426.92 - 179,492.03 - - - 8,059,918.95 -
Biotechnology Co., Ltd.
Ezhou Haid Feed Co., Ltd. 6,278,703.61 - -90,816.34 - - - 6,187,887.27 -
Hubei Haid Feed Co., Ltd. 36,269,728.95 - -194,837.94 - - - 36,074,891.01 -
Jiangxi Haid Feed Co., Ltd. 77,075,552.87 - -62,194.60 - - - 77,013,358.27 -
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Yancheng Haiwei Biological
40,265,862.14 - 20,263,121.96 - - - 60,528,984.10 -
Technology Co., Ltd.
Wuzhou Haid Biotechnology
25,677,292.44 - 49,285.85 - - - 25,726,578.29 -
Co., Ltd.
Nanchang Haid
7,015,094.34 - -14,162.45 - - - 7,000,931.89 -
Biotechnology Co., Ltd.
Tianmen Haid Feed Co., Ltd. 10,208,574.98 - -56,472.24 - - - 10,152,102.74 -
Dongguan Haiqi Feed Co.,
415,886.52 - -197,925.29 217,961.23 - - - -
Ltd.
Zhangzhou Haiheng Feed
702,757.29 - 1,947,473.44 - - - 2,650,230.73 -
Co., Ltd
Yiyang Haid Feed Co., Ltd. 53,315,953.49 - 76,758.56 - - - 53,392,712.05 -
Deyang Dachuan Agriculture
and Animal Husbandry 41,164,783.54 - 87,861.95 - - - 41,252,645.49 -
Technology Co., Ltd.
Hunan Dongting Haid Feed
22,765,887.44 - -11,853.73 - - - 22,754,033.71 -
Co., Ltd.
Mianyang Zhonggui Feed
79,542.37 - 2,315.47 - - - 81,857.84 -
Co., Ltd.
Anhui Haid Feed Co., Ltd. 12,699,259.40 - -30,917.13 - - - 12,668,342.27 -
Xiangtan Haid Feed Co., Ltd. 22,064,085.49 - -12,481.48 - - - 22,051,604.01 -
Xishui Haid Feed Co., Ltd. 5,564,296.32 - -39,804.75 - - - 5,524,491.57 -
Guangzhou Nongzhidao Feed
6,223,751.90 - 2,715.30 - - - 6,226,467.20 -
Co., Ltd.
Guangzhou Rongchuan Feed
15,407,118.47 - 34,366.59 - - - 15,441,485.06 -
Co., Ltd.
Mianyang Hailong Feed Co.,
4,108,943.85 - -31,989.46 - - - 4,076,954.39 -
Ltd.
Zhanjiang Haid Feed Co., 26,242,870.21 - -134,273.42 - - - 26,108,596.79 -
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Ltd.
Yingkou Dachuan Feed
12,898,721.89 - -5,682.89 - - - 12,893,039.00 -
Technology Co., Ltd.
Jiesou Haid Feed Co., Ltd. 15,993,638.24 - 57,357.19 - - - 16,050,995.43 -
Zhuhai Rongchuan Feed Co.,
44,537,778.54 - -213,368.05 - - - 44,324,410.49 -
Ltd.
Weifang Binhai Haiding Feed
6,699.28 - -1,319.87 - - - 5,379.41 -
Co., Ltd.
Zhejiang Haid Feed Co., Ltd. 101,872,358.05 - 2,572.88 - - - 101,874,930.93 -
Anlu Haid Feed Co., Ltd. 20,373,354.65 - 118,331.04 - - - 20,491,685.69 -
Tianjin Haid Feed Co., Ltd. 152,339,192.85 - -93,366.58 - - - 152,245,826.27 -
Fujian Haid Feed Co., Ltd. 104,493,124.96 - -100,192.76 - - - 104,392,932.20 -
Yunnan Zhonggui Feed Co.,
252,191.39 - -1,318.26 - - - 250,873.13 -
Ltd.
Nantong Haid Biotechnology
107,476,010.99 - -100,933.72 - - - 107,375,077.27 -
Co., Ltd.
Jingzhou Haihe Biological
40,851,897.11 - 17,162.83 - - - 40,869,059.94 -
Technology Co., Ltd.
Qingdao Haihe Agriculture
and Animal Husbandry 40,839.92 - 4,748.12 - - - 45,588.04 -
Technology Co., Ltd.
Chongqing Haizhi Feed Co.,
134,994.84 - -16,384.57 - - - 118,610.27 -
Ltd.
Guangxi Haid Feed Co., Ltd. 96,172,367.69 - -48,688.90 - - - 96,123,678.79 -
Hainan Zhuangmei
Agriculture and Animal 42,017,637.16 - 104,507.46 - - - 42,122,144.62 -
Husbandry Co., Ltd.
Foshan Sanshuifanling Feed 16,750,418.65 - -66,886.06 - - - 16,683,532.59 -
301
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Co., Ltd.
Guigang Haid Feed Co., Ltd. 8,801,570.82 - 60,890.30 - - - 8,862,461.12 -
Zigong Hailong Biological
10,753,385.53 - 20,163,696.64 - - - 30,917,082.17 -
Technology Co., Ltd.
Guangzhou Hailong Feed
5,121,479.05 - 7,910,000.00 - - - 13,031,479.05 -
Co., Ltd.
Zhaoqing Haid Feed Co., Ltd. 5,901,262.58 - -6,896.02 - - - 5,894,366.56 -
Guangxi Rongchuan Feed
316,484.29 - -7,129.24 - - - 309,355.05 -
Co., Ltd.
Dali Haid Biotechnology Co.,
15,021,795.37 - 25,054,265.12 - - - 40,076,060.49 -
Ltd.
Zhangzhou Haid Feed Co.,
18,770,569.33 - -11,724.78 - - - 18,758,844.55 -
Ltd.
Guangzhou Haid Technology
1,117,514.53 - -19,005.88 - - - 1,098,508.65 -
Development Co., Ltd.
Foshan Haihang Feed Co.,
25,507,893.35 - -70,128.28 - - - 25,437,765.07 -
Ltd.
Heshan Haiwei Feed Co.,
72,294.28 - 4,984,467.15 - 5,000,000.00 - 56,761.43 5,000,000.00
Ltd.
Foshan Haipu Feed Co., Ltd. 7,881,459.13 - -12,366.52 - - - 7,869,092.61 -
Qinzhou Haiwei Feed Co.,
35,079,947.46 - 23,010.37 - - - 35,102,957.83 -
Ltd.
Taizhou Haid Bio-Feed Co.,
24,695,819.44 - -23,261.90 - - - 24,672,557.54 -
Ltd.
Ganzhou Lianduoli Feed
19,186,276.07 - 10,829.35 - - - 19,197,105.42 -
Technology Co., Ltd.
Changzhou Haid Bio-Feed
31,200,971.81 - -99,865.83 - - - 31,101,105.98 -
Co., Ltd.
Maoming Haiwei Feed Co., 7,916,307.15 - -4,922.29 - - - 7,911,384.86 -
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Ltd.
Chengdu Haid Biotechnology
20,268,948.97 - -85,530.76 - - - 20,183,418.21 -
Co., Ltd.
Yunnan Haid Biotechnology
9,828,177.95 - 734.11 - - - 9,828,912.06 -
Co., Ltd.
Sichuan Hailong
209,945.69 - 27,644.76 - - - 237,590.45 -
Biotechnology Co., Ltd.
Shandong Haiding
Agriculture and Animal 10,223,015.22 - -35,558.55 - - - 10,187,456.67 -
Husbandry Co., Ltd.
Guangdong Hinter
Biotechnology Group Co., 90,497,106.52 - -100,510.09 - - - 90,396,596.43 -
Ltd.
Linyi Haihe Agriculture and
Animal Husbandry 66,733.21 - 6,273.20 - - - 73,006.41 -
Technology Co., Ltd.
Yancheng Rongchuan
10,495,071.14 - 50,177,520.74 - - - 60,672,591.88 -
Biotechnology Co., Ltd.
Xuzhou Hairuida Feed Co.,
11,182.03 - 8,527.51 - - - 19,709.54 -
Ltd.
Jiangmen Debao Group Co.,
97,761,207.10 - 26,877,772.77 - - - 124,638,979.87 -
Ltd.
Guangzhou Denong Feed
94,877.34 - 68,010.44 - - - 162,887.78 -
Co., Ltd.
Rongcheng Rongchuan
324,261.44 - -15,615.29 - - - 308,646.15 -
Biotechnology Co., Ltd.
Foshan Dazhi Biotechnology
332,504.15 - 197,630.22 - - - 530,134.37 -
Co., Ltd.
Yuncheng Haiding Hongda
501,488.29 - 5,794.01 - - - 507,282.30 -
Feed Co., Ltd.
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Taishan Debao Feed Co., Ltd. 122,189.28 - 69,725.80 - - - 191,915.08 -
Suixian Yuliang Haiding Feed
248,591.17 - -8,967.82 - - - 239,623.35 -
Co., Ltd.
Maoming Debao Agriculture
and Animal Husbandry Co., 66,597.63 - 48,466.49 - - - 115,064.12 -
Ltd.
Liaocheng Haiding Feed Co.,
567,347.67 - -49,909.45 - - - 517,438.22 -
Ltd.
Wuwei Haid Feed Co., Ltd. 13,418.44 - 10,233.06 - - - 23,651.50 -
Jinan Haiding Farming And
76,890.95 - -1,383.98 - - - 75,506.97 -
Animal Husbandry Co., Ltd.
Naning Dachuan
9,092,848.48 - 42,248.09 - - - 9,135,096.57 -
Biotechnology Co., Ltd.
Yongzhou Haid
- - 5,000,000.00 - - - 5,000,000.00 -
Biotechnology Co., Ltd.
Honghu Haid Feed Co., Ltd. 9,017,864.43 - -21,339.56 - - - 8,996,524.87 -
Yancheng Haid Bio-Feed Co.,
31,932,647.84 - -247,348.51 - - - 31,685,299.33 -
Ltd.
Guiyang Haid Biotechnology
- - 5,000,000.00 - - - 5,000,000.00 -
Co., Ltd.
Wuwei Haimu Biotechnology
10,441,022.63 - 15,094,840.56 - - - 25,535,863.19 -
Co., Ltd.
Shanxian Zhongyi Haiding
1,184,297.51 - -18,883.94 - - - 1,165,413.57 -
Feed Co., Ltd.
Inner Mongolia Haid Feed
10,557,535.37 - 15,019,851.09 - - - 25,577,386.46 -
Co., Ltd.
Kaifeng Haid Feed Co., Ltd. 31,403,020.35 - 230,796.86 - - - 31,633,817.21 -
Guiyang Dachuan
5,111,157.17 - 61,353.29 - - - 5,172,510.46 -
Biotechnology Co., Ltd.
304
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Guangzhou Haishengyuan
11,642.38 - - - - - 11,642.38 -
Biotechnology Co., Ltd.
Xingtai Haid Biotechnology
10,078,311.01 - 20,063,635.84 - - - 30,141,946.85 -
Co., Ltd.
Xinxiang Haiding Feed Co.,
112,954.88 - -19,745.34 - - - 93,209.54 -
Ltd.
Foshan Lianduoli Feed Co.,
74,920.41 - -14,760.53 60,159.88 - - - -
Ltd.
Heze Haiding Feed
1,127,995.25 - 28,848.00 - - - 1,156,843.25 -
Technology Co., Ltd.
Jining Haiding Feed Co., Ltd. 526,215.35 - 17,149.25 - - - 543,364.60 -
Liupanshui Haid
5,000,000.00 - 15,000,000.00 - - - 20,000,000.00 -
Biotechnology Co., Ltd.
Suqian Haid Feed Co., Ltd. 22,632,398.72 - 30,247.03 - - - 22,662,645.75 -
Nanning Haililai
7,409,035.06 - -1,469.48 - - - 7,407,565.58 -
Biotechnology Co., Ltd.
Feixian Hairuida Feed Co.,
743,403.22 - -17,966.06 - - - 725,437.16 -
Ltd.
Shaoyang Haid Feed Co.,
5,305,861.39 - 5,055,831.36 - - - 10,361,692.75 -
Ltd.
Guangzhou Mutai Feed
607,145.91 - 516,478.82 - - - 1,123,624.73 -
Technology Co., Ltd.
Huaihua Haid Feed Co., Ltd. 15,470,797.87 - -77,757.92 - - - 15,393,039.95 -
Yantai Zhizhuren Feed Co.,
27,268.18 - 11,266.07 - - - 38,534.25 -
Ltd.
Yinan Haiding Feed Co., Ltd. 569,199.88 - -12,956.05 - - - 556,243.83 -
Henan Mugaole Feed Co.,
391,914.41 - 23,034.65 - - - 414,949.06 -
Ltd.
Xinxiang Hairuida Feed Co., 117,066.22 - -619.54 - - - 116,446.68 -
305
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Ltd.
Liaoning Haid Biotechnology
5,268,462.93 - 15,201,824.65 - - - 20,470,287.58 -
Co., Ltd.
Guangdong Hairuite Pet
Nitribution Technology Co., 10,279,627.13 - 11,834,840.37 - - - 22,114,467.50 -
Ltd.
Hunan Innovation
7,230,931.13 - 13,285.65 - - - 7,244,216.78 -
Biotechnology Limited
Guizhou Hailongwang
98,178.23 - 74,871.42 - - - 173,049.65 -
Biotechnology Co., Ltd.
Sanming Haid Feed Co., Ltd. 36,263,399.88 - -48,005.45 - - - 36,215,394.43 -
Hebei Haimu Biotechnology
592,584.63 - 59,462.54 - - - 652,047.17 -
Co., Ltd.
Qingyuan Haid
14,181,868.37 - 76,493.06 - - - 14,258,361.43 -
Biotechnology Co., Ltd.
Dali Dachuan Biotechnology
10,311,641.55 - 15,032,066.80 - - - 25,343,708.35 -
Co., Ltd.
Guangdong Shunde Haid
6,000,023.86 - -182,265.36 - - - 5,817,758.50 -
Biotechnology Co., Ltd.
Xuancheng Haid
5,745,305.18 - -1,596.41 - - - 5,743,708.77 -
Biotechnology Co., Ltd.
Yunnan Hairui Biotechnology
22,487,925.99 - 15,652,632.24 - - - 38,140,558.23 -
Co., Ltd.
Jiaxing Haid Yongwang Bio-
15,330,699.99 - -44,655.60 - - - 15,286,044.39 -
Feed Co., Ltd.
Gaomi Haihe Agriculture and
Animal Husbandry 44,193.85 - 17,527.07 - - - 61,720.92 -
Technology Co., Ltd.
Henan Haidajiuzhou
7,718,041.00 - 64,647.28 - - - 7,782,688.28 -
Biotechnology Co., Ltd.
306
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Guangzhou Haiyiyuan
18,714.67 - - - - - 18,714.67 -
Biotechnology Co., Ltd.
Enshi Haida Biotechnology
5,000,000.00 - 10,000,000.00 - - - 15,000,000.00 -
Co., Ltd.
Ningguo Haid Biotechnology
15,705,047.09 - 17,988.52 - - - 15,723,035.61 -
Co., Ltd.
Xuzhou Zhongyi Haiding
Agriculture and Animal 7,487.10 - 9,913.27 - - - 17,400.37 -
Husbandry Co., Ltd.
Chongqing Haid Feed Co.,
26,957,385.66 - -23,448.35 - - - 26,933,937.31 -
Ltd.
Tianjin Haixin Biotechnology
172,761.03 - 8,110,371.43 - - - 8,283,132.46 -
Co., Ltd.
Shenyang Haid Feed Co.,
3,337,708.12 - -17,933.40 - - - 3,319,774.72 -
Ltd.
Nanshan Haid Biotechnology
21,502,343.05 - 14,110,539.96 - - - 35,612,883.01 -
(Jinhu) Co., Ltd.
Jieyang Haid Feed Co., Ltd. 5,259,441.81 - -104,605.88 - - - 5,154,835.93 -
Lanling Haiding Hekangyuan
Agriculture and Animal 100,449.04 - 11,505.84 - - - 111,954.88 -
Husbandry Co., Ltd.
Jiangsu Haihe Agriculture
and Animal Husbandry Co., 7,091,929.11 - -3,690.49 - - - 7,088,238.62 -
Ltd.
Baoji Haid Agriculture and
50,576.15 - 12,350.43 - - - 62,926.58 -
Animal Husbandry Co., Ltd.
Lianyungang Haihe Feed Co.,
583,974.69 - 43,194.37 - - - 627,169.06 -
Ltd.
Xuzhou Haihe Feed Co., Ltd. 266,917.74 - -3,324.65 - - - 263,593.09 -
Shanghai Gaohaid 25,590,807.21 - 9,919.72 - - - 25,600,726.93 -
307
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Biotechnology Co., Ltd.
Gaotang Haiding Agriculture
and Animal Husbandry Co., 54,457.93 - 43,963.18 - - - 98,421.11 -
Ltd.
Anshan Dachuan Feed
3,113,130.03 - - - - - 3,113,130.03 -
Technology Co., Ltd.
Jiangsu Haiwei Feed Co.,
25,026,442.62 - -1,720.89 - - - 25,024,721.73 -
Ltd.
Qujing Zhihai Feed Co., Ltd. 209,971.63 - -4,848.52 - - - 205,123.11 -
Yibin Zhihai Feed Co., Ltd. 527,466.63 - -4,450.07 - - - 523,016.56 -
Xuzhou Haid Hexin Feed
371,930.88 - -4,915.36 - - - 367,015.52 -
Co., Ltd.
Guangdong Hairui
Biotechnology Co., Ltd. - - 9,000,000.00 9,000,000.00 - - - -
Shaoguan Haid
16,055,236.64 - -10,928.55 - - - 16,044,308.09 -
Biotechnology Co., Ltd.
Qianjiang Hailong
176,996.74 - 10,105,489.20 - - - 10,282,485.94 -
Biotechnology Co., Ltd.
Ganzhou Haid Biotechnology
52,688,729.15 - 19,384.45 - - - 52,708,113.60 -
Co., Ltd.
Pingjiang Bairuilai
1,084,536.16 - 14,064,467.93 - - - 15,149,004.09 -
Biotechnology Co., Ltd.
Henan Haihe Agriculture and
Animal Husbandry 6,812,259.67 - -14,873.01 - - - 6,797,386.66 -
Technology Co., Ltd.
Fuzhou Haid Feed Co., Ltd. 86,203,057.33 - 44,510.05 - - - 86,247,567.38 -
Guiyang Haiyue Feed Co.,
- - 10,000,000.00 - - - 10,000,000.00 -
Ltd.
308
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Liyang Jiu He Feed Co., Ltd. 66,469,334.33 - -21,108.00 - - - 66,448,226.33 -
Haixin Biological (Beijing)
20,127.66 - 15,349.53 - - - 35,477.19 -
Technology Co., Ltd.
Shaanxi Haid Agriculture and
13,688,107.54 - -43,631.59 - - - 13,644,475.95 -
Animal Husbandry Co., Ltd.
Haid Pet Care Co., Ltd. 10,945,138.07 - -6,304.36 - - - 10,938,833.71 -
Foshan Haid Beacon Feed
4,912,208.10 - -54,547.93 - - - 4,857,660.17 -
Co., Ltd.
Yangling Haid Feed Co., Ltd. 266,480.35 - 10,638.90 - - - 277,119.25 -
Haid Pet Care (Weihai) Co.,
240,619.59 - 7,195.00 - - - 247,814.59 -
Ltd.
Inner Mongolia Haishan Feed
1,800,000.00 - - - - - 1,800,000.00 -
Co., Ltd.
Lanzhou Haid Feed Co., Ltd. 25,785.02 - - - - - 25,785.02 -
Anyang Haihe Agriculture
and Animal Husbandry 322,926.17 - -13,534.65 - - - 309,391.52 -
Technology Co., Ltd.
Huaibei Haid Bio-Feed Co.,
- - 3,000,000.00 - - - 3,000,000.00 -
Ltd.
Xuchang Haihe Feed Co.,
20,975.04 - - 20,975.04 - - - -
Ltd.
Huizhou Haid Biotechnology
32,000,000.00 - 174,027.59 - - - 32,174,027.59 -
Co., Ltd.
HAID (ECUADOR) FEED
1,517,765.26 - 498,414,186.01 - - - 499,931,951.27 -
CIA.LTDA.
Anyang Haiyue Feed
101,011.87 - 14,941.11 - - - 115,952.98 -
Technology Co., Ltd.
PT.HAIDA AGRICULTURE
1,710,431.88 - -721,106.94 - - - 989,324.94 -
INDONESIA
309
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Qingyuan Hailong Biological
132,337,574.91 - 121,150.65 - - - 132,458,725.56 -
Technology Co., Ltd.
Tengzhou Fengcheng Feed
312,857.25 - -4,581.33 - - - 308,275.92 -
Co., Ltd.
Guigang Hailong Biological
- - 26,533.45 - - - 26,533.45 -
Technology Co., Ltd.
Guiyang Haid Zhihai Feed
776,600.73 - 13,917.59 - - - 790,518.32 -
Co., Ltd.
Guizhou Haid Feed Co., Ltd. - - 5,000,000.00 - - - 5,000,000.00 -
Shandong Daxin Group Co.,
287,231,561.09 - -24,447.57 - - - 287,207,113.52 -
Ltd.
Pizhou Haid Feed Co., Ltd. - - 5,000,000.00 - - - 5,000,000.00 -
Qingdao Huaxin Feed Co.,
119,451.66 - -14,057.92 - - - 105,393.74 -
Ltd.
Weifang Daxin Feed Co., Ltd. 175,470.77 - -4,509.47 - - - 170,961.30 -
Xishui Chenke Feed
- - 121,177,915.57 - - - 121,177,915.57 -
Technology Co., Ltd
Yantai Daxin Feed Co., Ltd. 342,710.46 - -4,618.60 - - - 338,091.86 -
Linyi Yihe Feed Co., Ltd. 691,022.09 - 458.52 - - - 691,480.61 -
Jiangsu Daxin Feed Co., Ltd.
284,378.34 - -6,634.86 - - - 277,743.48 -
司
Shandong Daxin Agriculture
and Animal Husbandry 95,187.55 - 41,155.09 - - - 136,342.64 -
Technology Co., Ltd.
Nanping Haid Biotechnology
- - 14,400,000.00 - - - 14,400,000.00 -
Co., Ltd
Yantai Zhizhuren Animal
174,062.33 - -4,136.97 - - - 169,925.36 -
Husbandry Co., Ltd.
310
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Laizhou Zhizhu Animal
270,460.71 - 44,881.96 - - - 315,342.67 -
Husbandry Co., Ltd.
Huaian Hailong Feed Co.,
51,842,031.45 - -3,720.67 - - - 51,838,310.78 -
Ltd.
Guigang Donghuang
Breeding And Breeding Co., 287,648.08 - 13,151.01 - - - 300,799.09 -
Ltd.
Binzhou Haiding Feed Co.,
380,035.75 - -6,840.21 - - - 373,195.54 -
Ltd.
Zhaoqing Gaoyao Haid
Biological Technology Co., 82,555,843.39 - -5,050.89 - - - 82,550,792.50 -
Ltd.
Dali Haiwang Feed Co., Ltd. 212,471.72 - -18,330.36 - - - 194,141.36 -
Hunan Jinhuilong Technology
51,594,726.19 - 34,020.88 - - - 51,628,747.07 -
Co., Ltd.
Jiangsu Dachuan
24,860,696.55 - -52,111.59 - - - 24,808,584.96 -
Biotechnology Co., Ltd.
Shijiazhuang Huilong Feed
84,797.28 - 3,467.42 - - - 88,264.70 -
Co., Ltd.
Handan Huilong Feed Co.,
243,286.67 - -18,300.89 - - - 224,985.78 -
Ltd.
Nanning Haid Biotechnology
123,004,503.85 - 90,956.78 - - - 123,095,460.63 -
Co., Ltd.
Yichang Haid Feed Co., Ltd. 653,592.43 - -2,940.23 - - - 650,652.20 -
Liaocheng Daxin Feed Co.,
226,467.86 - -20,953.62 - - - 205,514.24 -
Ltd.
Ganzhou Hailong Feed Co.,
5,271,510.93 - -32,120.91 5,239,390.02 - - - -
Ltd.
Maoming Haihang Feed Co.,
514,427.66 - 9,192.04 - - - 523,619.70 -
Ltd.
311
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Jiangmen Rongchuan Feed
86,208,135.63 - 100,164,487.92 - - - 186,372,623.55 -
Co., Ltd.
Gansu Haid Feed Co., Ltd. 279,790.27 - 11,934.64 - - - 291,724.91 -
Weinan Haid Feed Co., Ltd. 229,103.32 - 15,867.80 - - - 244,971.12 -
Chongqing Kaizhou Haid
25,607,435.88 - 9,634,455.19 - - - 35,241,891.07 -
Biotechnology Co., Ltd.
Yicheng Haid Biological
45,507,729.08 - 63,381.34 - - - 45,571,110.42 -
Technology Co., Ltd.
Meizhou Haid Biotechnology
63,471,926.55 - 34,453.31 - - - 63,506,379.86 -
Co., Ltd.
Pingnanhai Da Feed Co., Ltd. 12,790.26 - 22,624.98 - - - 35,415.24 -
Zhuhai Dachuan
813,447.74 - 47,881,489.11 - - - 48,694,936.85 -
Biotechnology Co., LTD
Hexian Haid Biotechnology
90,903,159.22 - 44,236.99 - - - 90,947,396.21 -
Co., Ltd.
Linyi Hedong Haiding
Agriculture and Animal
304,370.26 - 5,023.02 - - - 309,393.28 -
Husbandry Development Co.,
Ltd.
Linyi Haiding Feed
396,240.70 - -6,868.47 - - - 389,372.23 -
Technology Co., Ltd.
Tianjin Rongchuan Feed Co.,
164,959,770.17 - -89,078.32 - - - 164,870,691.85 -
Ltd.
Zhanjiang Rongda Feed Co.,
6,218,712.46 - 35,062,619.10 - - - 41,281,331.56 -
Ltd.
Maoming Haid Biological
61,472,214.03 - 39,762.23 - - - 61,511,976.26 -
Technology Co., Ltd.
Huainan Haid Biological
85,062,283.85 - 37,733.08 - - - 85,100,016.93 -
Feed Co., Ltd.
312
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Sichuan Rongchuan Feed
91,237,849.89 - 23,870.81 - - - 91,261,720.70 -
Co., Ltd.
Yulin Haid Feed Co., Ltd. 45,524,411.51 - 46,694.86 - - - 45,571,106.37 -
Zhongshan City Seawater
Production And Aquaculture 1,668,299.28 - -23,051.74 - - - 1,645,247.54 -
Co., Ltd.
Qingyuan Haibei
22,072,344.17 - 91,976.90 - - - 22,164,321.07 -
Biotechnology Co., Ltd.
Linyi Zhizhuxia Breeding
73,540.31 - -2,990.39 - - - 70,549.92 -
Technology Service Co., Ltd.
Shijiazhuang Weike
51,187,573.26 - -34,088.43 - - - 51,153,484.83 -
Biotechnology Co., Ltd.
Wuhan Aquaera
5,628,174.06 - -3,126.70 - - - 5,625,047.36 -
Biotechnology Co., Ltd.
Guangzhou Heshengtang
Veterinary Pharmaceutical 22,612,218.17 - -129,953.28 - - - 22,482,264.89 -
Co., Ltd.
Guangzhou Nansha Haid
- - 50,000,000.00 - - - 50,000,000.00 -
Technology Co., Ltd
Guangzhou Heshengtang
3,330,000.00 - - - - - 3,330,000.00 -
Biotechnology Co., Ltd.
Guangdong Haid Livestock
Veterinary Research Institute 54,363,682.17 - 29,922,702.06 - - - 84,286,384.23 -
Co., Ltd.
Sichuan Hailinger
2,102,436.26 - 23,575.48 - - - 2,126,011.74 -
Biopharmaceutical Co., Ltd.
Zhuhai Haibei supply chain
- - 14,240,000.00 - - - 14,240,000.00 -
Management Co., LTD
Jiangxi Jiabo Biological
36,042,727.82 - -41,274.84 - 3,112,320.66 32,889,132.32 3,112,320.66
Engineering Co., Ltd.
313
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Guangdong Hisenor Group
9,066,505.84 - 45,251.63 - - - 9,111,757.47 -
Co., Ltd.
Feicheng He Ruifeng
Agricultural Science And 578,342.26 - 2,862.44 - - - 581,204.70 -
Technology Co., Ltd.
Guangzhou Shunkang
114,329.66 - 3,086,798.05 - - - 3,201,127.71 -
Aquaculture Co., Ltd.
Gaozhou Haiyuan Agriculture
259,475.59 - 31,696.56 - - - 291,172.15 -
Co., Ltd.
Shanwei Haizenong Marine
37,222.03 - 23,575.39 - - - 60,797.42 -
Biotechnology Co., Ltd.
Guangdong Bairong Aquatic
2,905,092.53 - -146,410.83 - - - 2,758,681.70 -
Farming Group Co., Ltd.
Weifang Xuheng Agricultural
Science And Technology Co., 210,352.02 - 5.60 - - - 210,357.62 -
Ltd.
Zhaoqing Baishengyuan
152,290.76 - 28,425.62 - - - 180,716.38 -
Aquatic Products Co., Ltd.
Linyi Dinghao Breeding Co.,
88,380.42 - -1,590.71 - - - 86,789.71 -
Ltd.
Sihui Haifeng Ecological
482,066.74 - 30,661.42 - - - 512,728.16 -
Agriculture Co., Ltd.
Zhuhai Ronghai Breeding
187,843.92 - 11,480.46 - - - 199,324.38 -
Technology Co., Ltd.
Tangshan Seaview Island
- - 29,961.27 - - - 29,961.27 -
Biotechnology Co., Ltd
Yueyang Yitun Agriculture
and Animal Husbandry Co., 684,844.21 - 13,160.99 - - - 698,005.20 -
Ltd.
Qingyuan Baishengyuan
70,896.57 - 8,182.53 - - - 79,079.10 -
Aquatic Seed Co., Ltd.
314
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Hainan Hisenor Marine
3,740,498.88 - -3,769.54 - - - 3,736,729.34 -
Biotechnology Co., Ltd.
Qinzhou Yitun Ecological
148,574.41 - -8,862.02 - - - 139,712.39 -
Agriculture Co., Ltd.
Nantong Haijingzhou
Biological Technology Co., 186,118.80 - 12,413.42 - - - 198,532.22 -
Ltd.
Ezhou Haifeng Ecological
202,391.14 - -3,642.77 - - - 198,748.37 -
Agriculture Co., Ltd.
Pingnan Yitun Ecological
1,351,457.42 - -43,347.79 - - - 1,308,109.63 -
Agriculture Co., Ltd.
Wugang Yitun Ecological
3,806.75 - - 3,806.75 - - - -
Agriculture Co., Ltd.
Changyi Haijingzhou
Biological Technology Co., 696,480.34 - 46,403.01 - - - 742,883.35 -
Ltd.
Guangxi Ronghai Fishery
339,310.50 - 21,043.18 - - - 360,353.68 -
Co., Ltd.
Guiping Yitun Ecological
14,218.50 - -4,104.20 10,114.30 - - - -
Agriculture Co., Ltd.
Hunan Yitun Technology Co.,
97,307.88 - 83,180.07 - - - 180,487.95 -
Ltd.
Zhanjiang Hisenor Marine
1,522,943.04 - -15,579.48 - - - 1,507,363.56 -
Biotechnology Co., Ltd.
Jingtai Haijingzhou Fishery
167,463.17 - -13,021.21 - - - 154,441.96 -
Technology Co., Ltd.
Yantai Yitun Ecological
411,917.94 - -53,379.34 - - - 358,538.60 -
Agriculture Co., Ltd.
Pingguo Yitun Ecological
235,670.25 - 924.69 - - - 236,594.94 -
Agriculture Co., Ltd.
Yangxin Bairong Aquatic 866,922.03 - -12,374.32 - - - 854,547.71 -
315
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Farming Co., Ltd.
Guizhou Aikexin Swine
539,145.22 - 7,301.70 - - - 546,446.92 -
Breeding Co., Ltd.
Shanwei Haijingzhou Marine
Biological Technology Co., 661,455.62 - -44,322.99 - - - 617,132.63 -
Ltd.
Yancheng Runchuan
Agricultural Science And 174,536.49 - -3,133.79 - - - 171,402.70 -
Technology Co., Ltd.
Guigang Qintang District
Yitun Ecological Agriculture 12,282.92 - - - - - 12,282.92 -
Co., Ltd.
Hubei Haid Seed Technology
13,653.69 - 5,013,542.71 - - - 5,027,196.40 -
Co., Ltd.
Jingzhou Bairong Aquatic
402,444.97 - 6,677.49 - - - 409,122.46 -
Farming Co., Ltd.
PT HISENOR
TECHNOLOGY 259,119.01 - -123,812.33 - - - 135,306.68 -
INDONESIA
Hengyang Yitun Ecological
14,442.12 - - 14,442.12 - - - -
Agriculture Co., Ltd.
Raoping Haizenong Marine
- - 10,835.05 - - - 10,835.05 -
Biotechnology Co., Ltd
Zhangzhou Haijingzhou
Marine Biotechnology Co., 776,397.57 - -64,387.52 - - - 712,010.05 -
Ltd.
Guangzhou Hailingxian Food
14,127.33 - 26,212.84 - - - 40,340.17 -
Co., Ltd.
Yongji Haijingzhou Fishery
Science And Technology Co., 215,834.38 - -28,068.66 - - - 187,765.72 -
Ltd.
316
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Hengshan Yitun Ecological
1,571,130.34 - -30,803.44 - - - 1,540,326.90 -
Agriculture Co., Ltd.
Yangxi Fengwo Ecological
1,615,112.40 - -9,957.16 - - - 1,605,155.24 -
Agriculture Co., Ltd.
Binyang County Hejiyitun
Ecological Agriculture Co., 169,964.99 - 2,221.40 - - - 172,186.39 -
Ltd.
Yuncheng Haishengyuan
42,948.49 - 27,202.30 - - - 70,150.79 -
Fishery Technology Co., Ltd.
Guigang Gangbei District
Yitun Ecological Agriculture 1,078,198.33 - -79,479.30 - - - 998,719.03 -
Co., Ltd.
Guangdong Baishengyuan
34,265.83 - 51,433.00 - - - 85,698.83 -
Aquatic Farming Co., Ltd.
Zhaqing Haizehui fishery
52,106.56 - -3,399.99 - - - 48,706.57 -
development Co., LTD
Guangzhou Ronghai
Breeding Technology Co., 24,442,363.26 - 63,358.04 - - - 24,505,721.30 -
Ltd.
Huayuan Yitun Ecological
174,205.53 - -15,986.18 - - - 158,219.35 -
Agriculture Co., Ltd.
DONG NAI HAID FARM
107,112.62 - -48,802.26 - - - 58,310.36 -
COMPANY LIMITED
Duyun Yitun Ecological
890,750.05 - -48,182.52 - - - 842,567.53 -
Agriculture Co., Ltd.
Yangjiang Yangdong Fengwo
Agriculture and Animal 374,560.33 - -7,807.37 - - - 366,752.96 -
Husbandry Co., Ltd.
Gaotang Huayu Swine Co.,
119,523.54 - -4,245.65 - - - 115,277.89 -
Ltd.
Dongying Haijingzhou 140,314.20 - 28,275.86 - - - 168,590.06 -
317
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Biotechnology Co., Ltd.
Rongjiang County Yitun
Ecological Agriculture Co., 102,154.60 - 10,665.88 - - - 112,820.48 -
Ltd.
Enping Yitun Ecological
588,414.30 - 18,033.72 - - - 606,448.02 -
Agriculture Co., Ltd.
Luoding Yitun Ecological
325,554.93 - 42,975.07 - - - 368,530.00 -
Agriculture Co., Ltd.
Shandong Bairong Fisheries
709,751.00 - 14,936.64 - - - 724,687.64 -
Fine Seed Co., Ltd.
Binyang Yitun Ecological
1,171,149.55 - -2,938.66 - - - 1,168,210.89 -
Agriculture Co., Ltd.
Meizhou Yitun Pig Breeding
53,613.56 - 21,350.41 74,963.97 - - - -
Co., Ltd.
Gaozhou Sanhe Animal
647,374.08 - -18,430.44 - - - 628,943.64 -
Husbandry Co., Ltd.
Hainan Bairong Aquatic
779,953.10 - -83,175.88 - - - 696,777.22 -
Products Co., Ltd.
Yicheng Yitun Ecological
739,781.71 - 3,822.90 - - - 743,604.61 -
Agriculture Co., Ltd.
Longan County Yitun
Ecological Agriculture Co., 129,283.31 - 19,660.93 - - - 148,944.24 -
Ltd.
Hunan Yitun Ecological
1,725,074.69 - -99,074.15 - - - 1,626,000.54 -
Agriculture Co., Ltd.
Wengyuan County Yitun Pig
5,726.47 - 3,627.00 - - - 9,353.47 -
Breeding Co., Ltd.
Zhanjiang Haijingzhou
Marine Biotechnology Co., 381,783.06 - 17,986.26 - - - 399,769.32 -
Ltd.
318
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Zixing Yitun Ecological
288,369.73 - -724.25 - - - 287,645.48 -
Agriculture Co., Ltd.
Yingde Yitun Ecological
331,774.89 - -37,784.54 - - - 293,990.35 -
Agriculture Co., Ltd.
Fufeng County Yitun
Ecological Agriculture Co., 570,144.12 - 13,772.25 - - - 583,916.37 -
Ltd.
Guangdong Haifulai
3,084,904.21 - 125,427.45 - - - 3,210,331.66 -
Biotechnology Co., Ltd.
HAI DAI COMPANY
31,600.82 - -1,319.87 - - - 30,280.95 -
LIMITED
Zhuhai Haixing Agricultural
Aquatic Seed Technology - - 14,622,713.99 - - - 14,622,713.99 -
Co., Ltd
Hengyang County Jisheng
Agriculture and Animal
128,263.17 - -509.07 - - - 127,754.10 -
Husbandry Development Co.,
Ltd.
Jiangmen Ronghai
Aquaculture Technology Co., 297,355.32 - -8,387.92 - - - 288,967.40 -
Ltd.
Shaoguan Zhenjiang Yitun
Ecological Agriculture Co., 1,291,859.63 - 45,755.00 - - - 1,337,614.63 -
Ltd.
Heyuan Yitun Agricultural
83,645.70 - 116,547.63 - - - 200,193.33 -
Development Co., Ltd.
Hainan Haid Aquatic Seed
Industry Development Co., 15,587,291.79 - 29,984,719.06 - - - 45,572,010.85 -
Ltd.
Yingde Yitun Pig Breeding
48,041.61 - -8,922.47 - - - 39,119.14 -
Co., Ltd.
319
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Linyou Yitun Ecological
105,831.73 - 54,527.93 - - - 160,359.66 -
Agriculture Co., Ltd.
Ruyuan County Yitun Pig
26,645.05 - 9,007.32 - - - 35,652.37 -
Breeding Co., Ltd.
Guangzhou Haishengke
261,270,000.00 - - - - - 261,270,000.00 -
Investment Co., Ltd.
Linyi Dingxin Farming Co.,
203,274.95 - -3,658.71 - - - 199,616.24 -
Ltd.
Guangzhou Haijian
121,500,000.00 - - - - - 121,500,000.00 -
Investment Co., Ltd.
Youxian Yitun Ecological
16,694.91 - 6,533.73 - - - 23,228.64 -
Agriculture Co., Ltd.
Guangzhou Punong
Investment Management Co., 4,600,000.00 - - - - - 4,600,000.00 -
Ltd.
Hengnan Yitun Ecological
169,893.64 - 4,040.48 - - - 173,934.12 -
Agriculture Co., Ltd.
Guangzhou Yannong
Investment Management Co., 19,758,109.00 - - - - - 19,758,109.00 -
Ltd.
KINGHILL HOLDINGS
352,647,893.52 - 298,119,861.80 - - - 650,767,755.32 -
PTE.LTD.
Guangzhou Xingnong
Ecological Agriculture and
30,039,315.21 - -121,847.90 - - - 29,917,467.31 -
Animal Husbandry
Development Co., Ltd.
Guangzhou Chenzhao
40,000,000.00 - - 40,000,000.00 - - - -
Investment Co., Ltd.
Guangdong Haizhihui
Breeding Technology Service 53,000,000.00 - - - - - 53,000,000.00 -
Co., Ltd.
320
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Zhuhai Chenzhe Private
Equity Fund Management 10,000,000.00 - - - - - 10,000,000.00 -
Co., Ltd.
Guangzhou Runchuan
1,469,812,949.78 - - - - - 1,469,812,949.78 -
Investment Co., Ltd.
Guangzhou Yitun Swine
11,102,158.80 - -106,488.15 - - - 10,995,670.65 -
Industry Investment Co., Ltd.
Enping Fengwo Agriculture
and Animal Husbandry Co., 904,965.33 - -11,960.39 - - - 893,004.94 -
Ltd.
Guangzhou Meinong
Investment Management Co., 355,096,574.00 - 31,052,154.00 378,270,098.67 - - 7,878,629.33 -
Ltd.
Guangzhou Haifengchang
Enterprise Management Co., 500,000.00 - - 500,000.00 - - - -
Ltd.
Guangzhou Danong
Enterprise Management Co., 500,000.00 - - - - - 500,000.00 -
Ltd.
LANKING PTE.LTD. 631,108,679.14 - 82,278,169.00 - - - 713,386,848.14 -
BINH DINH HAI LONG
150,782.79 - -113,414.64 - - - 37,368.15 -
CO.,LTD
Haid International Group
244,689,517.90 - 3,744.34 - - - 244,693,262.24 -
Limited
HAI DUONG HAID
1,538,324.60 - -523,016.69 - - - 1,015,307.91 -
COMPANY LIMITED
SHENG LONG
262,308.02 - - - - - 262,308.02 -
INTERNATIONAL LTD.
VINH LONG HAI DAI
775,536.47 - -376,268.14 - - - 399,268.33 -
CO.,LTD
321
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
SHENG LONG BIO-TECH
2,904,540.04 - -113,805.54 - - - 2,790,734.50 -
INTERNATIONAL CO.,LTD
THANG LONG(VINH
152,202.14 - 16,598.86 - - - 168,801.00 -
LONG)BIOTECH CO.,LTD
LONG SHENG
215,648.20 - -3,881.46 - - - 211,766.74 -
INTERNATIONAL CO.,LTD
Haid Lanking International
174,053.91 - -3,117.83 - - - 170,936.08 -
Trading Inc.
HAID FEED COMPANY
1,006,362.53 - -279,720.51 - - - 726,642.02 -
LIMITED
SHENGLONG BIO-
TECH(INDIA)PRIVATE 916,262.32 - -14,554.35 - - - 901,707.97 -
LIMITED
Guangzhou Haid Feed Co.,
14,139,332.68 - 38,175.61 - - - 14,177,508.29 -
Ltd.
Shenzhen Longreat Trading
1,537,089.13 - -2,290.67 - - - 1,534,798.46 -
Co., Ltd.
Guangzhou Changsheng
10,642,131.95 - -2,705.69 - - - 10,639,426.26 -
Logistics Co., Ltd.
Dalian Haid Rongchuan
50,541,608.21 - 3,499.20 - - - 50,545,107.41 -
Trading Co., Ltd.
Sichuan Haile Agriculture
and Animal Husbandry Co., 16,502,976.53 - - - - - 16,502,976.53 -
Ltd.
Xinjiang Xiyu Haihua
54,345.60 - - 54,345.60 - - - -
Products Co., Ltd.
Rongcheng Yandun Horn Fish
14,140.87 - -254.53 - - - 13,886.34 -
Meal Co., Ltd.
PT.HAIDA SURABAYA
131,284.06 - -59,815.15 - - - 71,468.91 -
TRADING
Haid Supply Chain - - 24,100,000.00 - - - 24,100,000.00 -
322
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Management (Zhuhai) Co.,
Ltd
Yingkou Fengmu Agricultural
52,623.60 - 59,699.08 112,322.68 - - - -
Development Co., Ltd.
Guangzhou Haiki Technology
1,618,463.31 - 137,261.51 - - - 1,755,724.82 -
Co., Ltd.
Guangdong Haid
100,000,000.00 - - - - - 100,000,000.00 -
International Trade Co., Ltd.
Sanya Fengmu Agricultural
26,514.13 - -477.20 - - - 26,036.93 -
Development Co., Ltd.
Guangzhou Anan Logistics
276,068.48 - 16,628.12 - - - 292,696.60 -
Co., Ltd.
Xiyu Haisheng (Guangzhou)
72,922.19 - 8,416.30 - - - 81,338.49 -
Supply Chain Co., Ltd.
Sichuan Haimufeng
57,646.42 - 36,511.51 - - - 94,157.93 -
Agriculture Co., Ltd.
Guangdong Huashite Testing
3,849.46 - 5,205.24 - - - 9,054.70 -
Technology Co., Ltd.
Guangzhou Haihan Treasury
- - 500,000.00 - - - 500,000.00 -
Technology Co., Ltd
Guangzhou Hualaike Testing
- - 1,000,000.00 - - - 1,000,000.00 -
Technology Co., Ltd
Shandong Fengying Food
432,461.81 - 3,086.86 - - - 435,548.67 -
Co., Ltd.
Jiaxiang Haiying Food Co.,
100,865.40 - -4,206.49 - - - 96,658.91 -
Ltd.
Linxi Haiying Food Co., Ltd. 118,416.13 - -12,785.46 - - - 105,630.67 -
Yiyuan Haiying Food Co.,
142,544.28 - -8,136.73 - - - 134,407.55 -
Ltd.
Zouping Haiying Food Co.,
156,966.32 - -3,237.06 - - - 153,729.26 -
Ltd.
323
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Movements during the year
Impairment Closing
reserve Allowance for balance of
Investee 2022.12.31 Increase in the Decrease in the impairment 2023.12.31
beginning Others provision for
balance current period current period during the impairment
current Period
Zhongshan Yugezi Food Co.,
339,187.56 - 7,742.36 - - - 346,929.92 -
Ltd.
Binzhou Haiying Food Co.,
60,145.83 - -11,861.27 - - - 48,284.56 -
Ltd.
Qingyuan Ronghai Breeding
70,437,316.49 - 32,431.12 - - - 70,469,747.61 -
Technology Co., Ltd.
Guangzhou Haiyuan
50,175,045.91 - 3,059.21 - - - 50,178,105.12 -
Factoring Co., Ltd.
Guangzhou Haiyuan
503,062,008.24 - -57,910.82 - - - 503,004,097.42 -
Microfinance Co., Ltd.
Guangzhou Haiyin Financing
251,436,735.44 - -61,293.58 - - - 251,375,441.86 -
Guarantee Co., Ltd.
Hubei Haiqi Technical
504,766.84 - -5,906.98 - - - 498,859.86 -
Service Co., Ltd.
Guangdong Haiqi Investment
- - 30,000,000.00 - - - 30,000,000.00 -
Co., Ltd
Guangzhou Haifeng Breeding
38,568.33 - 16,168.22 - - - 54,736.55 -
Service Co., Ltd.
合 计 9,492,891,848.44 - 1,916,596,736.00 433,578,580.26 8,112,320.66 - 10,967,797,683.52 8,112,320.66
(2) Investment in Associate and joint ventures
Movements during the year
Investmen Closing
Impairmen
t gains or Cash Balance of
t Increas Decreas Adjustment in Change Provision
losses Dividend Provision
Investee 2022.12.31 reserve e in the e in the Other s in for Other 2023.12.31
Recognize s or for
beginning current current Comprehensiv Other Impairmen s
d under Profits Impairmen
balance period period e incom Equity t
the Equity declared t
Method
Associate
324
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Movements during the year
Investmen Closing
Impairmen
t gains or Cash Balance of
t Increas Decreas Adjustment in Change Provision
losses Dividend Provision
Investee 2022.12.31 reserve e in the e in the Other s in for Other 2023.12.31
Recognize s or for
beginning current current Comprehensiv Other Impairmen s
d under Profits Impairmen
balance period period e incom Equity t
the Equity declared t
Method
Bangpu
Seed 10,518,210.6 - 10,160,776.5
- - - - - - - - -
Technolog 5 357,434.09 6
y Co., Ltd
325
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3. Operating income and operating cost
Year ended 31/12/2023 Year ended 31/12/2022
Item
Income Cost Income Cost
2,872,467,800.1 1,272,475,149.1 2,686,425,953.0 1,290,424,971.7
Principal activities
4 0 1 3
Other operating activities 67,014,949.21 3,832,681.69 66,925,970.93 3,775,442.17
2,939,482,749.3 1,276,307,830.7 2,753,351,923.9 1,294,200,413.9
Total
5 9 4 0
4. Investment income
Year ended Year ended
Item
31/12/2023 31/12/2022
Income from long-term equity investments by using the
526,996,012.23 973,932,387.53
cost method
Income from long-term equity investments by using the
-357,434.09 1,276,430.90
equity method
Investment income from disposal of long-term equity
-8,114,691.19 -1,469,137.47
investments
Investment income from held-for-trading financial assets - 5,713,078.32
Investment income from other non-current financial
1,503,844.94 1,256,326.21
assets
Investment income from disposal of held-for-trading
2,289,298.75 3,390,304.05
financial assets
Investment income from disposal of non-current financial
- 15,649,338.53
assets
Total 522,317,030.64 999,748,728.07
XVII. Supplementary Information
1. Details of non-recurring gain or loss during the current period
Item Year ended 31/12/2023 Note
Gain or loss on disposal of non-current assets 9,004,677.06
Government grants charged to current profit or loss
(excluding government grant given in the Company’s
59,119,428.77
ordinary course of business at fixed quotas or amounts as
per government’s uniform standards)
Except for the effective hedging activities related to the
Company’s ordinary activities, profit or loss arising from
changes in fair value of financial assets held for trading,
derivative financial assets, financial liabilities held for
trading, derivative financial liabilities, other non-current 147,165,591.84
financial assets, and investment income from disposal of
financial assets held for trading, derivative financial
assets, financial liabilities held for trading, derivative
financial liabilities, other non-current financial assets.
Profits or losses from external entrusted loans 326,833.38
Reversal of provision for bad and doubtful debt where
accounts receivable are individually tested for 14,802,077.94
impairment
Other non-operating incomes and expenses, except for
-8,642,137.95
the above
Other gain or loss satisfied the definition of non-recurring
-
gain or loss
Total non-recurring gain or loss 221,776,471.04
Less: impact of Income tax 9,966,547.74
326
Full text of 2023 Annual Report of Guangdong Haid Group Co., Limited
Item Year ended 31/12/2023 Note
Net amount of non-recurring gain or loss 211,809,923.30
Less: impact of non-controlling interests (net of tax) 12,045,507.74
Non-recurring gain or loss attributable to the
199,764,415.56
ordinary shareholders
2. Return on Equity (ROE) and Earnings per Share (EPS)
Weighted average EPS
Net profit of Reporting Period
ROE (%) Basic EPS Diluted EPS
Net profit attributable to ordinary
14.53 1.66 1.66
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after 13.47 1.54 1.54
deducting the non-recurring gain or loss
327
