海大集团：2023年年度报告（英文版）

GuangdongHaidGroupCo.,Limited 2023AnnualReport April2024 SectionI.ImportantNotes,TableofContentsandDefinitions Theboardofdirectors(the"Board"),thesupervisorycommittee,thedirectors,thesupervisorsandtheseniormanagementofGuangdongHaidGroupCo.,Limited(the"Company")herebywarrantthetruthfulness,accuracyandcompletenessoftheinformationpresentedinthisreport,guaranteethattherearenomisrepresentations,misleadingstatementsormaterialomissionscontainedinthisannualreport,andareindividuallyandcollectivelyresponsiblefortheauthenticity,accuracyandcompletenessoftheinformationcontainedinthisreport. Mr.HuaXue,headoftheCompany,andMr.ShaolinYang,headinchargeofaccountingworkandheadoftheaccountingdepartment(AccountingOfficer),declarethattheywarrantthetruthfulness,accuracyandcompletenessofthefinancialstatementsintheannualreport. AlldirectorswerepresentinpersonattheBoardmeetingtoconsiderandapprovethisannualreport. 1.Periodicalfluctuationrisksoffeedindustryduetoabnormalweatherchanges Thefeedindustryismainlyservedforthedownstreamanimalindustry.Theabnormalchangesincludingextremehighorlowtemperature,storm,typhoonsetalduringthebreedingproduction,andevenlarge-scaleoutbreaksofdiseaseswhichmayleadtofluctuationsoftheinventoryoflivestockoraquaticproducts.Forexample,thecontinuousrainfallweatherinthisyearcausedthedecreaseofdissolvedoxygensaturationinthewater,andthereducedintakeofaquaticanimalsandpassivelyreducedfeeding.Someaquaticproductscannotadapttotheriseoftemperatureorevendie,thereforeaffectingshort-termfeeddemandandthereareadverseeffectsontheproductionandoperationoffeedenterprises. Riskcontrolmethodsincludetwoaspects:(1)ThecompanyiscurrentlyfullydeployingmanufacturersandlocalmarketsinmajorareasinSouthernChina,CentralChina,EasternChinaandNorthernChinaandoverseasmarketsinSoutheastAsia.Theexpansionofregionaldistributioncaneffectivelydecreasetheriskofweatheranomaliesandnaturaldisastersinlocalareas.(2)Continuouslyimprovingthesupportstofarmersthroughthejointempowermentoffeed,seedlings,andanimalhealthcare,providingscientificbreedingplansandindividualservicesfromcompany’stechnicalpersonneltoenhancetheriskresistanceandcompetitivenessoffarmersandreducetheadverseeffectsofabnormalweather. 2.Risksofcompany'sproductionandoperationduetotheoutbreakofepidemicdiseases Withtheenvironmentalchangesandthedevelopmentoflarge-scalebreeding,animalepidemicdiseasesalsooccurfromtimetotime,forinstance,AfricanswinefeverhadbrokenoutacrossChinasinceAugust2018，andPRRSV- mediatedpigdiseases,shrimp-relevantEMSepidemicdiseasesandpoultry- relevant“H7N9”diseasesoccurredcrosscountryinrecentyears.Thescaleofanimalproductionshrinksbecauseoftheoutbreakofanimalepidemicdiseases,followingthereduceddemandforfeedintheshortterm.Theprevalenceofmajoranimaldiseasescanalsoeasilyaffectconsumers’purchaseintention,andthenreducethedemandofend-consumers,leadingtothedownturnoftheaquacultureandfeedindustry,givingrisetoadverseeffectsontheproductionandoperationoffeedenterprises. Riskcontrolmethodsincludetwoaspects:(1)Thecomprensivefeedproductscoverthefeedsofpig,chicken,duck,goose,fish,shrimpandotherlivestockandaquaticfeeds.Thevarietyofproductsandthewell-balancedstructurecaneffectivelymitigatetheriskofsinglespeciesdiseasewithstrongcomprehensiverisk-relievecapability.(2)Thecompanyhasestablishedthestrictepidemicpreventionandcontrolsystemintheproductionoffeedproducts,utilizingthediseasepreventionandcontrolfromthesourcewithtechnologicaladvantagesandprofessionalcapabilities. 3.RiskofDrasticPriceFluctuationsofmajoringredientmaterials Thefeedingredientscoverstapleagriculturalproductsincludingcornandsoybeans(soybeanmeal)etal.Inrecentyears,thedomesticandinternationalmarketsofagriculturalproducthavebeencloselyconnected.Thereweregreatfluctuationsinpricesofagriculturalproductsduetothechangeofthesizeintheplantingareaandtheharvestamountinthesemajorgrain-producingcountries,thepurchasingandstorageandsubsidypolicies,theimportandexportpolicies,thepoliticalconflictsbetweencountries,theinternationaltraderelations,thefluctuationsinlogisticscapacityandconditionsofshippingandtheexchangerates,bringingcertainimpactonthecostoffeedandanimalindustry.Withthestrengtheningoftheinternationaltradeofagriculturalproducts,thefactorsaffectingthepricesofagriculturalproductshavebecomemorecomplicated,andthepricefluctuationsthereforeincreased.Withoutfullyunderstandingthechangesinthetradeoffeedrawmaterialsintimeandpromptlyimplementstrategicmanagement,thecompanywouldfacetheriskofrisingprocurementcosts. Riskcontrolmethodsincludethreeaspects:(1)Thematerialsweredividedintodifferentcategoriesincludingcentralizedpurchasingstaplecategoryandlocal procurementofregionalvarietiescategory.Itnotonlyguaranteestheadvantagesoflarge-scalerawmaterialprocurement,butalsomakesbestuseoflocalizationadvantagesfromrapidresponseinrespectofregionalprocurement. (2)Therawmaterialprocurementresearchsystemwascontinuouslyinvestedandconstructed.Themembersofteamareprofessionalandfamiliarwithrawmaterialinformation.Itcaneffectivelycontroltheprocurementriskthroughreal-timetracking