DBN 2022 Annual Report Summary
Stock code: 002385 Stock abbreviation: DBN Announcement No.: 2023-040
Beijing Dabeinong Technology Group Co., Ltd
19th Floor, Zhongguancun Building, 27 Zhongguancun Street,
Haidian District, Beijing
2022 Annual Report Summary
April 2023
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DBN 2022 Annual Report Summary
I Important Notices
This summary is published in both Chinese and English. In case of any ambiguity, inconsistency or conflict between the two version,
the Chinese version shall prevail.
This Summary is based on the full annual report. Investors are kindly reminded to read the completed version of the aforesaid report
on the media designated by the China Securities Regulatory Commission (CSCR) to get complete information about the Company’s
business results, financial situation, and future development plans.
All directors have attended the Board meeting for the review of this annual report.
Notice of non-standard auditors’ opinions
□ Applicable Not applicable
A proposed profit distribution plan or a proposed plan on the conversion of capital reserves into share capital during the reporting
period was reviewed and approved by the Board
Applicable □ Not applicable
Conversion of capital reserves into share capital
□ Yes No
The proposed profit distribution plan approved by the Board is to be based on 4,137,906,853, distribute a cash dividend of RMB 0.5
(including tax) for every 10 shares to all shareholders, issue 0 bonus shares (including tax), and not convert capital reserves into share
capital.
The proposed profit distribution plan for preferred shares reviewed and approved by the Board during this reporting period
□ Applicable Not applicable
II Basic Information of DBN
1. Company Profile
Stock abbreviation DBN Stock code 002385
Stock exchange for stock listing Shenzhen Stock Exchange
Abbreviation of the stock before
Not applicable
alteration
Contact person and contact
Board Secretary Securities affairs representative
information
Name Yin Wei Lei Zeli
1901A, 27 Zhongguancun Street, Haidian 1901A, 27 Zhongguancun Street, Haidian
Office address
District, Beijing District, Beijing
Fax 010-82472400 010-82472400
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DBN 2022 Annual Report Summary
Telephone 010-82856450 15652078320
Email cwbgs@dbn.com.cn cwbgs@dbn.com.cn
2. Introduction to Main Businesses or Products during the Reporting Period
The company's vision is to create a world-class agricultural technology and service company, based on agricultural high-tech
enterprises, with industrial layout covering multiple fields such as feed technology, pig farming technology, crop technology, vaccine
and animal protection technology and etc. The feed technology industry is a leading domestic manufacturer of premix, educational
trough feed, nursery feed, sow feed, and ruminant feed. The pig breeding technology industry relies on a good industrial foundation
and regional layout, promoting the "company+ecological farm" and "integrated" breeding model, and creating a unique joint pig
breeding development model. The crop technology industry adheres to the direction of technological innovation driven development,
with the goal of "creating world-class crop technology companies", focusing on the R&D and promotion of crop seed industries,
including biotechnology, corn seed industry, rice seed industry, soybean seed industry, and economic seed industry.
（1）Main businesses
During the reporting period, DBN achieved an operating revenue of RMB 32,396.746 million yuan with a year-on-year increase of
3.41%, an operating profit of RMB 376.2072 million yuan with a YOY increase of 154.61%, a total profit of 317.5578 million yuan
with a YOY increase of 143.16%, and net profit attributable to shareholders of DBN 55.6018 million yuan with a YOY increase of
112.63%.
The company's main business income mainly comes from feed technology and pig farming technology. Throughout 2022, the
proportion of feed business revenue to main business revenue was 69.01%, that of pig farming business was 16.92%, that of see d
business was 2.91%, and that of veterinary drug and vaccine business was 0.89%.
Feed business
With the continuous expansion of China’s feed industry, DBN has gained a leading position in market competition with advantages in
scale, market coverage, technical services, and other aspects. At present, the standardized development of the industry in China
continuously improves the level of feed formula, with an accelerating penetration and promotion trend of antibiotic alternatives. The
industry has mostly achieved feed formulas meeting different animal nutritional needs and physiological characteristics and is moving
towards precise feeding. Meanwhile, the high-tech and specialized characteristics of the feed industry have become apparent and are
continuing to develop.
During the reporting period, the company’s feed sales revenue was RMB 22,289.9899 million yuan with a YOY decrease of 1.78%,
and feed revenue accounted for 69.01% of the main business revenue. The sales volume of feed was 5.315 million tons with a YO Y
decrease of 9.85%, among which, 4.0858 million tons of pig feed with a YOY decrease of 10.71%, 0.43 million tons of aquatic feed
with a YOY increase of 1.14%, and 0.6355 million tons of ruminant feed with a YOY increase of 10.61%. Excluding the impact of
changes in the scope of consolidated statements, the sales volume decreased by 5.33% YOY, and that for pig feed decreased by 4.84%
YOY. The company’s sales volume to jointly operated pig farms was 0.2515 million tons. Excluding the sales volume to jointly
operated pig farms, the external sales volume was 5.0635 million tons with a YOY decrease of 3.35%.
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DBN 2022 Annual Report Summary
Pig farming business
Pig farming is a traditional industry in China. Since the reform and opening up, on one hand, China’s pig industry has been strongly
driven by the demand caused by continuous and rapid economic growth, rising income levels of urban and rural residents, and
upgrading food consumption structure, on the other hand, it has been strongly promoted by the government because the pig industry
has become an important source of income for rural residents and an important part of the shopping basket program for urban residents,
to maintain a rapid growth momentum in China's pig production for a long time. In 2022, China's pig production continued to increase,
with a total of 699.95 million pigs sold nationwide, an increase of 4.3%; The production of pork reached 55.41 million tons, a YOY
increase of 4.6%.
During the reporting period, the holding subsidiary’s revenue from pig sales was RMB 5466.675 million yuan, a YOY increase of
16.34%. The holding subsidiary of the company has a total of 1.9021 million pigs on hand, a YOY increase of 38.09%. Among them,
there are 157600 sows (excluding 49300 backup sows) on hand, a YOY increase of 42.65%.
Seed business
The “No. 1 central document” for 2022 emphasizes the vigorous promotion of breakthroughs on core and key agricultural technologies
such as seed resources, comprehensively implementing seed industry revitalization action plan, and promoting the construction of
national major innovation platforms in the seed industry, providing continuous, comprehensive, and strong policy support and direction
guidance for China’s seed industry revitalization. On March 1, 2022, the new Seed Law was officially implemented and focused on
expanding the protection scope and links of the property rights for new varieties of plants, adding an Essentially Derived Variety (EDV)
system, increasing efforts to crack down on fake or substandard seeds, improving the infringement compensation system, strengthening
the protection of germplasm resources, etc. The formal implementation of the law marks a new era in the protection of intellectual
property rights in China’s seed industry.
In August 2022, the General Office of the Ministry of Agriculture and Rural Affairs issued a notice on assisting in the development of
the national seed industry matrix to support key superior enterprises to become stronger, better, and larger. According to the List of
National Seed Industry Matrix, DBN was listed in the live swine “shoring-up weakness” formation, the subsidiary Yunnan Datian Seed
Co., Ltd. was listed in the corn “shoring-up weakness” formation, Beijing Jinse Nonghua Seed Industry Technology Co., Ltd. was
listed in the rice “enhancing advantages” formation, and Heilongjiang Longke Seed Industry Group Co, Ltd., whose shares are partially
owned by DBN, was listed in the soybean “shoring-up weakness” formation and the japonica rice “enhancing advantages” formation .
During the reporting period, the proportion of the company’s seed business revenue to its main business revenue was 2.91% and the
sales volume of seeds was 41.8334 million kilograms with a YOY increase of 74.75%. The sales revenue was 944.2962 million yua n
with a YOY increase of 68.44%. Among them, the sales revenue of rice seeds was 35.40133 million yuan with a YOY increase of
12.08%. The sales revenue of corn seeds was 564.7226 million yuan with a YOY increase of 146.9%. Excluding the influence of
Yunnan Datian, the sales revenue of corn seeds reached 313.7822 million yuan, a YOY increase of 37.2%.
（2） Research and experimental development
DBN adheres to the principle of “Innovation-oriented Technology Strategy”. In 2022, DBN has 5 national R&D platforms with 2,822
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DBN 2022 Annual Report Summary
R&D personnel. As of the end of 2022, a total of 2,503 patent applications has been made public, and 1,896 patents have been
authorized. In November 2022, the genetically modified insect-resistant soybean transgenic event DBN8002 (DBN-82-3),
developed by the controlling subsidiary Beijing Dabeinong Biotechnology Co., Ltd., passed the safety evaluation and officially
obtained the planting license from the Argentine government. At the same time, the company attaches great importance to the
construction of talent echelons and increases the talents attraction. In 2022, there were 2 High-end Talent Accumulation Program
specialists, 1 Overseas Talent Accumulation Program specialist, 10 corn breeding experts such as special academicians, 5 rice breeding
experts, and 7 soybean breeding experts.
（3）The business model of animal farming business
DBN’s pig farming model mainly include the “self-breeding and self-raising” and the “company + eco-farm”. The former adopts the
self-raising method throughout the entire industrial chain of pig breeding, feed production, piglet production, and pig fattening, allows
the production and operation of each farming industry chain to be carried out by the company, and has significant advantages in
achieving economies of scale, reducing production costs, and improving operational efficiency. The latter refers to the coope ration
between the company and eco-farms through entrusted breeding based on DBN’s resource allocation in the farming industry chain.
DBN provides farming materials such as pig house design, piglets, feed, drugs, and vaccines to ecological farmers, as well as feeding
pigs according to the company’s farming standards, and uniformly takes back and sells pigs and pays proxy costs for farming to farmers
after reaching the number of days to put on the market. The latter disperses large pig herds to help rationally use idle land resources
and effectively alleviate land pressure. Meanwhile, there is a small amount of pollution discharge per farm for scattered sma ll-scale
ones, which facilitates the harmless treatment of manure, greatly promotes environmentally friendly and green farming, drives local
employment, and has a positive social impact.
3． Main Accounting Data and Financial Indicators
（1） Key accounting data and financial indicators in the past three years
Whether the company needs to retroactively adjust or restate the accounting data counting data
□ Yes No
Unit: RMB
Change of 31
December 2022
Project December 31,2022 December 31, 2021 December 31, 2020
over 31
December 2021
Total assets 31,174,429,135.15 26,894,815,883.44 15.91% 24,041,748,998.06
Net assets attributable to shareholders
10,752,974,607.43 10,737,179,620.57 0.15% 11,015,444,461.02
of the Company
2022-over-2021
2022 2021 2020
change
Operating revenue 32,396,746,022.43 31,328,078,121.44 3.41% 22,813,861,332.61
Net profits attributable to shareholders
55,601,766.41 -440,340,985.21 112.63% 1,955,722,850.86
of the Company
Net profits attributable to shareholders
91,336,448.59 -856,670,138.08 110.66% 1,593,201,607.70
of the Company after deducting of non-
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DBN 2022 Annual Report Summary
recurring profit or loss
Net cash flow generated from operating
1,432,351,027.90 1,148,769,576.72 24.69% 1,856,435,731.39
activities
Basic earnings per share (RMB/share) 0.01 -0.11 109.09% 0.48
Diluted earnings per share (RMB/share) 0.01 -0.11 109.09% 0.48
Weighted average return on equity 0.52% -4.05% 4.57% 18.70%
（2） Main accounting data by quarters
Unit: RMB
Project Q1 2022 Q2 2022 Q3 2022 Q4 2022
Operating revenue 6,459,940,820.51 6,933,188,431.62 8,701,286,613.33 10,302,330,156.97
Net profits attributable to shareholders of
-232,567,144.99 -277,946,971.98 181,891,288.40 384,224,594.98
the Company
Net profits attributable to shareholders of
the Company after deducting of non- -271,579,564.70 -296,432,018.45 166,259,745.48 493,088,286.26
recurring profit or loss
Net cash flow generated from operating
-950,214,637.51 302,065,985.85 1,251,696,236.23 828,803,443.33
activities
A significant difference between the above financial indicators or their total amount and the financial indicators related to the
disclosed quarterly and semi-annual reports of the Company
□ Yes No
4. Share Capital and Shareholder Information
（1） Table of the number of common shareholders and preferred shareholders with restored voting rights and the
shareholding of the top 10 shareholders
Unit: Shares
Total number of Total number of
Total number Total number of
common preferred shareholders
of common preferred
shareholders at the with restored voting
shareholders shareholders with
164,130 end of the month 243,284 0 rights at the end of the 0
at the end of restored voting
prior to the month prior to the
the reporting rights at the end of
disclosure date of disclosure date of the
period the reporting period
the annual report annual report
Shareholding of the top 10 shareholders
Number of Pledged, marked or
shares with frozen shares
Nature of Shareholding Number of trading
Name of shareholders
shareholders ratio shares held limited Share
conditions Number
status
held
Domestic
Shao Genhuo 24.49% 1,014,200,026 775,206,942 Pledged 404,223,000
natural person
Hong Kong Securities Foreign legal
4.08% 169,060,186 0
Clearing Company Ltd. person
Agricultural Bank of China
Limited - E Fund Consumer Others 1.34% 55,645,273
Fund
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DBN 2022 Annual Report Summary
Domestic
Zhao Yanqing 1.30% 53,760,182
natural person
Domestic
Qiu Yuwen 1.23% 51,120,917
natural person
Domestic
Li Fengqin 1.05% 43,278,414
natural person
China Zheshang Bank Co.,
Ltd. - Guotai CSI Livestock Others 0.74% 30,631,582
Breeding ETF
China Construction Bank
Corporation - Jiashi
Others 0.74% 30,540,640
Agricultural Equity
Securities Investment Fund
Agricultural Bank of China
Limited – China Southern Others 0.65% 27,107,029
CSI 500 Index ETF
Domestic
Zhen Guozhen 0.65% 27,017,998
natural person
The Company does not know whether there is a related relationship among the above
Related relationship or
shareholders, nor does it know whether they belong to the concerted action persons specified in
concerted action among the
the Management Administration of Disclosure of Information on the Change of Shareholdings in
above shareholders
Listed Companies Procedures.
1. At the end of the reporting period, Li Fengqin held 0 shares of the Company in the common
securities account and 43,278,414 shares in the credit securities account, totaling 43,278,414
Participation of shareholders
shares;
in margin trading and short
2. At the end of the reporting period, Zhen Guozhen held 4,566,398 shares of the Company in the
selling business (if any)
common securities account and 22,451,600 shares in the credit securities account, totaling
27,017,998 shares.
（2） Table of the number of preferred shareholders and the shareholding of the top 10 shareholders
□ Applicable Not applicable
There were no preferred shareholders holding shares during the reporting period of the company.
（3） Block diagram of the disclose of the property rights and control relationship between the Company and the actual
controller
Shao Genhuo
24.49%
.
Beijing Dabeinong Technology Group Co., Ltd.
5. Bonds in existence as of the Approval Date of the Annual Report
□ Applicable Not applicable
III Matters of Significance
None.
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