海大集团:2024年年度报告（英文版）

Guangdong Haid Group Co. Ltd.2024 Annual Report

April 2025Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Section I Important Tips Contents and Interpretation

The company's board of directors board of supervisors directors supervisors

and senior management personnel guarantee that the contents of the annual

report are true accurate and complete and there are no false records

misleading statements or major omissions and bear individual and joint legal

liabilities.Xue Hua the person in charge of the company Yang Shaolin the person in

charge of accounting work and Yang Shaolin the person in charge of the

accounting organization (accounting officer) hereby confirm that the financial

report in this annual report is true accurate and complete.All directors attended the board meeting at which the report was considered.

1. The risk of abnormal weather affecting the periodic fluctuations of the feed

industry

The feed industry mainly serves the downstream aquaculture industry. When

natural factors such as high temperature extreme cold rain typhoon and

other natural factors change abnormally during the breeding process there

may be large fluctuations in the number of breeding stocks and storage ponds

and even large-scale outbreaks of diseases which will affect the demand for

feed and there will be a risk of phased or regional demand fluctuations. For

example continuous rainy weather will reduce the dissolved oxygen saturation

of the water body deteriorate the water quality affect the feeding of aquatic

1Guangdong Haid Group Co. Ltd.2024Full text of the annual report

animals cause farmers to passively reduce feeding and some aquatic products

will not adapt to the drastic changes in the environment and even die which

will affect the short-term aquatic feed demand; Floods caused by heavy

rainfall in the region in the short term will lead to the loss of aquatic products

and livestock and poultry breeding which will affect the normal feed demand.After floods general animal epidemics are prone to and frequent and will also

have an adverse impact on the production and operation of feed enterprises.Risk response measures: (1) The company is currently deploying factories and

developing local markets in major breeding regions such as South China

Central China East China and North China as well as overseas markets such

as Southeast Asia South America and Africa. The expansion of the regional

layout can effectively deal with the risks of abnormal weather and natural

disasters in local areas; (2) Continuously improve the service ability of farmers

through the joint empowerment of feed seedlings and animal protection

provide scientific breeding plans and provide counterpart guidance from the

company's technical personnel to improve farmers' anti-risk ability and

breeding competitiveness and reduce the adverse effects caused by abnormal

weather influences.

2. Risks brought by breeding diseases to the company's production and

operation

With the change of the environment and the development of large-scale

breeding animal diseases will also occur from time to time. For example the

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"African swine fever virus" that broke out nationwide in August 2018 and the

diseases such as the "blue-ear virus" in pigs the "EMS disease" in shrimp

farming and the "H7N9 virus" in poultry have appeared in recent years. The

occurrence of the disease will lead to the reduction of the production and stock

of farmed animals which will directly inhibit the scale of breeding and reduce

the demand for feed in the short term; The prevalence of major animal

diseases can also easily affect consumer psychology leading to shrinking

terminal demand causing the aquaculture industry to fall into a staged

downturn affecting feed demand. At the same time the outbreak of regional

epidemics will bring about major adjustments in the breeding structure and

inventory in some areas which will affect the demand for feed in the region.Risk response measures: (1) The company's feed varieties cover livestock and

poultry feeds such as pig feed chicken feed and duck and goose feed as well as

aquatic feeds such as fish feed and shrimp feed. The variety is complete and

the structure is balanced which can effectively deal with the disease risk of a

single breeding species. At the same time the company is currently deploying

factories and developing local markets in major domestic breeding regions and

overseas markets such as Southeast Asia South America and Africa. The

expansion of the regional layout can effectively deal with the risk of epidemic

outbreaks in local areas; (2) The company has established a strict disease

prevention and control system in the production process of feed products and

at the same time utilizes technical advantages and professional capabilities to

3Guangdong Haid Group Co. Ltd.2024Full text of the annual report

implement the prevention and control of breeding diseases from the source.

3. The risk of major raw material price fluctuations

The feed ingredients are mainly various bulk agricultural products mainly

corn and soybeans (soybean meal). In recent years the domestic and

international agricultural product markets have been closely linked. Climate

changes changes in planting area and harvest changes in purchasing storage

and subsidy policies changes in import and export policies political games in

various countries international trade relations shipping conditions and other

logistics capacity and cost fluctuations and exchange rate changes in major

grain-producing countries may bring large fluctuations in agricultural product

prices which in turn may have a certain impact on feed and breeding costs.With the strengthening of the internationalization of agricultural product

trade the factors of agricultural product price change are becoming more and

more complex and the price fluctuation is also intensified. If the company fails

to grasp the changes in the feed raw material market in a timely manner and

do a good job in the strategic management and risk control of procurement in

a timely manner it may face the risk of rising comprehensive procurement

costs.Risk response measures: (1) The company divides raw material varieties and

implements a combination of centralized procurement of bulk varieties and

local procurement of regional varieties which not only ensures the advantages

of large-scale procurement of bulk raw materials but also strives to obtain the

4Guangdong Haid Group Co. Ltd.2024Full text of the annual report

localized advantages of rapid response to regional procurement; (2) The

company continues to invest in the construction of the raw material

procurement research system. The professional raw material information

research department team is relatively mature. It conducts strategic

procurement through real-time tracking research and judgment of the

market trend of domestic and foreign bulk raw materials and conducts

position risk management on bulk raw materials through tools such as futures

hedging and raw material trading which can effectively control procurement

risks; (3) The company has a rich accumulation of research and development

of animal nutrition and feed formula technology. It has a huge R&D team and

invests a lot of money in research and development every year. It focuses on

animal nutrition requirements feed formula technology breed breeding and

breeding of excellent germplasm healthy breeding mode and other research

directions. It has a deep understanding of animal nutrition requirements and a

relatively high technical level of comprehensive utilization of raw materials.Therefore when the price of raw materials fluctuates It can control

reasonable feed nutrition level and formula cost by quickly adjusting the

formula.

4. Risks of environmental protection laws and policies on the scale structure

and regional adjustment of the aquaculture industry

In recent years the state has introduced a series of environmental protection

regulations such as the new Environmental Protection Law the Regulations

5Guangdong Haid Group Co. Ltd.2024Full text of the annual report

on Pollution Prevention and Control of Large-scale Livestock and Poultry

Breeding the Action Plan for Water Pollution Prevention and Control and the

Guiding Opinions on Promoting the Adjustment and Optimization of Pig

Breeding Layout in Southern Water Network Areas. According to the

regulations and policies of the central government no-breeding areas and

restricted-breeding areas have been established all over the country. The

implementation of the environmental protection policy will not only further

accelerate the withdrawal of retail pig farmers reduce the unqualified

environmental protection and small-scale backward production capacity

continue to expand the production capacity of large-scale farmers and

continuously improve the scale and structure of breeding; in addition the

establishment of no-breeding areas and restricted-breeding areas will also

adjust the production capacity of pig breeding in various regions and across

the country. The scale structure of breeding and the regional adjustment of

production capacity will definitely have a profound impact on the existing

production capacity layout market share pricing power and business model of

the feed industry. The impact of environmental protection policies on the pig

breeding and feed industries puts the existing dominant companies in the

market at risk of reshuffling.Risk response measures: (1) The company continues to improve its service

capabilities for farmers. In addition to feed products it has a layout in the

industrial chain of animal protection vaccines and finance which is highly

6Guangdong Haid Group Co. Ltd.2024Full text of the annual report

sticky to large-scale farmers; (2) The company's feed varieties cover livestock

and aquatic products and the product line is rich and the production lines of

pig feed chicken feed duck feed and pellet fish feed can be shared. By

adjusting the production capacity of local bureaus the company can quickly

switch production capacity layout and adjust to meet the changes in the

industry; (3) The company adopts various models to accelerate the production

capacity layout in areas with abundant resources and strong environmental

carrying capacity and seize the market share of new breeding areas; (4) The

company continues to increase R&D investment and the research results in

key technologies of microbial fermented feed key technologies of feed

antibiotic substitutes and key technologies of functional health feed have been

effectively applied leading the progress and development of the industry.

5. The risk of exchange rate fluctuations

The global procurement of feed raw materials has become the norm and the

company's overseas investment and overseas business scale are also rapidly

expanding. The scale of cross-border fund settlement and overseas asset stock

have increased significantly. It involves the currency types of multiple

countries and the exchange rate fluctuation factors of each currency are

different and the exchange rate fluctuation of any currency may have a

certain impact on the business settlement cost and asset stock value in the

region.Risk response measures: (1) According to the business scale business model

7Guangdong Haid Group Co. Ltd.2024Full text of the annual report

and settlement characteristics of each region and country the company

carefully selects the settlement currency based on the principle of strict control

of exchange rate risk and strives to achieve a relatively balanced regional

capital inflow and outflow through the structural arrangement of financing

sources and financing varieties and control exchange rate risk; (2) The

expansion of two-way fluctuations in the RMB exchange rate has become the

new normal. The company further enhances its awareness of foreign exchange

risk management arranges settlement models according to procurement and

sales strategies and the cyclical characteristics of import and export business

and flexibly uses financial instruments such as forward foreign exchange

settlement and sales swaps and foreign exchange options to lock in exchange

rate risks control procurement and sales costs and control risks that may

arise from exchange rate fluctuations.Forward-looking statements such as the company's future plans covered in this

report do not constitute a material commitment of the company to any

investors and related parties. Investors are advised to be aware of investment

risks.The profit distribution plan approved by the board of directors of the company

is: based on the total share capital of the repurchased shares deducted from the

share registration date when the distribution plan is implemented in the future

a cash dividend of RMB 11.00 (including tax) will be distributed to all

shareholders for every 10 shares and 0 shares (including tax) will be

8Guangdong Haid Group Co. Ltd.2024Full text of the annual report

distributed and the share capital will not be converted from the public reserve.In this report if the mantissa of the total count does not match the mantissa of

the listed values it is due to rounding.

9Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Content

Section I Important Tips Contents and Interpretati... 1

Section Ⅱ Company Profile and Main Financial Indic.. 13

Section Ⅲ Management Discussion and Analysis ....... 18

Section IV Corporate Governance .................... 54

Section V Environmental and Social Responsibility .. 86

Section VI Important Matters ....................... 93

Section Ⅶ Changes in Shares and Shareholders ...... 126

Section Ⅷ Relevant Information on Preferred Shares. 135

Section Ⅸ Bond Related Information ................ 136

Section X Financial Report ........................ 137

10Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Reference file directory

(1) Financial statements with the signatures and seals of the person in charge

of the company the person in charge of accounting work and the person in charge

of the accounting organization (accounting officer).

(2) The original audit report with the seal of the accounting firm and the

signature and seal of the certified public accountant.

(3) The originals of all company documents and announcements that have been

publicly disclosed during the reporting period.

(4) Annual reports published in other securities markets.

11Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Paraphrase

Paraphrase Depend on Paraphrase

The company the company the group the Haid

Depend on Guangdong Haid Group Co. Ltd.Group

Board of directors Depend on Board of Directors of Guangdong Haid Group Co. Ltd.Board of Supervisors of Guangdong Haid Group Co.Supervisory Board Depend on

Ltd.Shareholders' meeting of Guangdong Haid Group Co.General Meeting of Shareholders Depend on

Ltd.The Companies Act Depend on "Company Law of the People's Republic of China"

Securities Act Depend on "Securities Law of the People's Republic of China"

"Articles of Association of Guangdong Haid Group

Articles of Association Depend on

Co. Ltd."

Yuan Depend on RMB Yuan

Reporting period current period current year Depend on January 1 2024 to December 31 2024

Last year the same period last year Depend on January 1 2023 to December 31 2023

End of period Depend on December 31 2024

Beginning the beginning of the year Depend on January 1 2024

China Securities Regulatory Commission Depend on China Securities Regulatory Commission

12Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Section Ⅱ Company Profile and Main Financial Indicators

I. Company Information

Stock abbreviation Haid Group Stock code 002311

Stock abbreviation before the change (if

any)

Stock exchange Shenzhen Stock Exchange

Chinese name of the company 广东海大集团股份有限公司

Chinese abbreviation of the company 海大集团

Foreign name of the company (if any) Guangdong Haid Group Co. Limited

Abbreviation of the company's foreign

Haid Group

name (if any)

Legal representative of the company Xue Hua

Room 701 Building 2 Haid Mansion No. 42 Road 4 Wangbo Nancun Town

Registered address

Panyu Dist Guangzhou China

Postal code of registered address 511445

Historical changes of the company's

There was no change of registered address during the reporting period

registered address

Building 1 Haid Science Park No. 8 Longtai Street Hualong Town Panyu District

Office address

Guangzhou Guangdong Province

Postal code of office address 511434

Company URL www.haid.com.cn

E-mail zqbgs@haid.com.cn

II. Contact person and contact information

Board secretary Securities Affairs Representative

Name Huang Zhijian Lu Jiewen Yang Huafang

Building 1 Haid Science Park No. 8 Building 1 Haid Science Park No. 8

Longtai Street Hualong Town Panyu Longtai Street Hualong Town Panyu

Contact address

District Guangzhou Guangdong District Guangzhou Guangdong

Province Province

Telephone 8620-39388960 8620-39388960

Fax 8620-39388958 8620-39388958

E-mail zqbgs@haid.com.cn zqbgs@haid.com.cn

III. Information Disclosure and Preparation Location

The stock exchange website where the company discloses its

Shenzhen Stock Exchange http://www.szse.cn

annual report

The name and website of the media where the company "Securities Times" "China Securities Journal" "Securities

discloses its annual report Daily" "Shanghai Securities News" and www.cninfo.com.cn

Where the company's annual report is prepared Corporate Securities Department

13Guangdong Haid Group Co. Ltd.2024Full text of the annual report

IV. Registration changes

Unified Social Credit Code No change

Changes in the company's main business since its listing (if

No change

any)

Changes in previous controlling shareholders (if any) No change

V. Other relevant information

Accounting firm hired by the company

Accounting firm name Grant Thornton Zhitong Certified Public Accountants LLP

Floor 5 Scitech Plaza No. 22 Jianguomenwai Street

Office address of accounting firm

Chaoyang District Beijing

Name of Signing Accountant Li Xujia Qiu Shuntong

Sponsor institutions engaged by the company to perform continuous supervision duties during the reporting

period

□ Applicable □ Not Applicable

Financial consultants hired by the company to perform continuous supervision duties during the reporting

period

□ Applicable □ Not Applicable

VI. Key Accounting Data and Financial Indicators

Whether the company needs to retrospectively adjust or restate the accounting data of previous years

□ Yes □ No

Increase or decrease this

2024 2023 year over the previous 2022

year

Operating income (yuan) 114601056662.29 116117168742.97 -1.31% 104715417485.92

Net profit attributable to

shareholders of listed 4503995518.39 2741256374.98 64.30% 2957330734.56

companies (yuan)

Net profit attributable to

shareholders of the listed

company after deducting 4539064747.56 2541491959.42 78.60% 2883311221.53

non-recurring gains and

losses (yuan)

Net cash flow from

7996255375.0512698374699.54-37.03%6817894250.91

operating activities (yuan)

14Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Basic earnings per share

2.711.6663.25%1.79

(yuan/share)

Diluted earnings per share

2.701.6662.65%1.79

(yuan/share)

Weighted average return

20.88%14.53%6.35%18.47%

on equity

Increase or decrease at the

end of this year compared

End of 2024 End of 2023 End of 2022

to the end of the previous

year

Total assets (yuan) 48140586659.70 44746735775.61 7.58% 44470388435.88

Net assets attributable to

shareholders of listed 23905302719.55 19647107064.19 21.67% 17832539336.58

companies (yuan)

The lower of the company's net profit before and after deducting non-recurring gains and losses in the last three

fiscal years is negative and the audit report of the most recent year shows that the company's ability to continue

operations is uncertain

□ Yes □ No

The lower of the net profit before and after deduction of non-recurring gains and losses is negative

□ Yes □ No

VII. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profit and net assets in financial reports disclosed in accordance with international

accounting standards and Chinese accounting standards at the same time

□ Applicable □ Not Applicable

During the reporting period there was no difference in net profit and net assets in the financial reports disclosed

in accordance with international accounting standards and in accordance with Chinese accounting standards.

2. Differences in net profit and net assets in financial reports disclosed in accordance with overseas

accounting standards and in accordance with Chinese accounting standards

□ Applicable □ Not Applicable

During the reporting period there was no difference in net profit and net assets in the financial reports disclosed

in accordance with overseas accounting standards and in accordance with Chinese accounting standards.

15Guangdong Haid Group Co. Ltd.2024Full text of the annual report

VIII. Main Financial Indicators by Quarter

Unit: Yuan

First quarter Second quarter Third quarter Fourth quarter

Operating income 23171735504.66 29124064147.12 32564830090.03 29740426920.48

Net profit attributable

to shareholders of 860694642.71 1264353714.60 1498774865.48 880172295.60

listed companies

Net profit attributable

to shareholders of the

listed company after

759671794.961273122794.691485952788.501020317369.41

deducting non-

recurring gains and

losses

Net cash flow from

-2546897105.704448044505.165912718849.74182389125.85

operating activities

Whether the above financial indicators or their total numbers are materially different from the relevant financial

indicators of the company's disclosed quarterly reports and semi-annual reports

□ Yes □ No

IX. Items and amounts of non-recurring gains and losses

□Applicable □ Not applicable

Unit: Yuan

Projects 2024 Amount 2023 Amount 2022 Amount Description

Gains and losses on disposal of illiquid assets

(including the write-off portion of the provision for -59464676.78 9004677.06 -45840354.94

asset impairment)

Government subsidies included in the current profit

and loss (except for government subsidies that are

closely related to the company's normal business

operations comply with national policies and 88405109.35 59119428.77 125600697.83

regulations are enjoyed according to determined

standards and have a continuous impact on the

company's profit and loss)

In addition to the effective hedging business

related to the company's normal business

operations the gains and losses from changes in

fair value arising from the holding of financial

-58602433.58147165591.8439455335.15

assets and financial liabilities by non-financial

enterprises and the gains and losses arising from

the disposal of financial assets and financial

liabilities

Gains and losses from external entrusted loans 0.00 326833.38 530942.74

Reversal of provision for impairment of 34087704.91 14802077.94 6167665.26

16Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Projects 2024 Amount 2023 Amount 2022 Amount Description

receivables separately tested for impairment

The investment cost of the enterprise to obtain

subsidiaries associates and joint ventures is less

than the income from the fair value of the 0.00 0.00 812610.97

investee's identifiable net assets when the

investment is obtained

Other non-operating revenue and expenditure other

-3065353.75-8642137.95-34643762.69

than the above-mentioned items

Other profit and loss items that meet the definition

0.000.005936636.84

of non-recurring profit and loss

Less: Income tax impact amount 19665499.65 9966547.74 17625340.80

Amount of impact on minority shareholders’

16764079.6712045507.746374917.33

equity (after tax)

Total -35069229.17 199764415.56 74019513.03 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss:

□ Applicable □ Not Applicable

The company does not have other specific circumstances of profit and loss items that meet the definition of non-

recurring profit and loss.Explanation of the situation of defining the non-recurring profit and loss items listed in the "Explanatory

Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public-Non-recurring

Profit and Loss" as recurring profit and loss items

□ Applicable □ Not Applicable

There is no situation in which the company defines the non-recurring gains and losses listed in the "Explanatory

Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public-Non-recurring

Gains and Losses" as recurring gains and losses.

17Guangdong Haid Group Co. Ltd.2024Full text of the annual report

Section Ⅲ Management Discussion and Analysis

I. The industry in which the company operates during the reporting period

In 2024 the company's domestic and overseas feed sales reached new highs. Standing at a new starting

point we can recognize and develop the global feed industry from a broader global perspective. According to

relevant statistics the current global animal feed production is close to 1.3 billion tons. Specifically:

China is the world's largest feed producer with an annual feed output of over 300 million tons accounting

for about 24% of the global feed output. In terms of varieties the output of pig feed is about 140 million tons;

the output of poultry feed is about 130 million tons; the output of aquatic feed is about 23 million tons

accounting for more than 40% of the global aquatic feed; and the output of other feeds is about 20 million tons.Among the top ten feed companies in the world Chinese companies account for half and the top three are all

Chinese companies. The huge market capacity and excess capacity have led to fierce competition in the industry.In China the feed industry has shifted from the single-dimensional competition of feed products to multi-

dimensional competition such as seedlings animal protection feed product strength and the company's own

breeding technical service capabilities. It is increasingly difficult for companies that lack competitiveness to

operate. This is mainly due to: * In recent years there is a cyclical mismatch between the fluctuation of the

sales price of downstream aquaculture products and the fluctuation of raw materials which leads to the poor

transfer of cost pressure in the feed industry which has an impact on the operating profit of the feed industry

Feed companies that lack scale advantages procurement advantages and raw material substitution technology

reserves are more difficult to operate and make profits; * The structure of the downstream livestock and

poultry breeding industry is constantly changing and some uncompetitive individual free-range farmers are

gradually withdrawing and the main breeding force has become a moderately large-scale family farm and

breeding company. Its ability to distinguish the product strength of the feed product itself is enhanced and it is

difficult for companies that lack R&D accumulation and systematic advantages to create excellent products to

match the customer's demand for high-quality feed; * The overcapacity of pig breeding has led to the

diversification and rapid iteration of breeding models and the increased operating pressure of asset-heavy

enterprises. In addition due to the iteration of the model farmers' demand for feed products will be

differentiated and the competition requirements for the feed industry will also be higher.

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The feed capacity in the Asia-Pacific region (excluding China) exceeds 150 million tons. In addition to

China the region has several of the world's top ten feed producing countries including India Vietnam and

Japan. In terms of varieties broilers laying hens and aquatic feed contributed most of the production. With the

rapid economic development and population growth in Southeast Asia there is a huge demand for animal

protein such as meat eggs and milk. According to the OECD-FAO Agricultural Outlook 2021-2030 from

2018 to 2020 the proportion of animal protein in the total protein supply in Southeast Asia is very low about

13%; in the same period it is more than 35% in China. In the future the supply of animal protein in Southeast

Asia will continue to grow thereby expanding the feed market capacity.The vast market capacity large population abundant breeding resources and huge economic development

potential have attracted the world's excellent feed manufacturers to concentrate in this region including

traditional Southeast Asian multinational feed manufacturers and well-known European and American feed

manufacturers many of which are among the top 20 companies in the world and due to the relatively low

overall economic strength and industrialization level of local countries the supply of raw materials is unstable

and local small feed manufacturers generally lack competitiveness There is no market space for expansion;

therefore the industry is currently mainly competition among multinational companies still focusing on the

product strength of the feed products themselves and relying on product quality to gain a competitive

advantage.The feed capacity in North America exceeds 250 million tons mainly for broiler pig and beef cattle. There

are more than 6000 feed factories in the area. The United States accounts for most of the region's production

with an output of more than 230 million tons and is also the world's second largest feed producer.The feed capacity in Europe also exceeds 250 million tons mainly for broiler pig and dairy cows. Among

them Russia Spain and Turkey are among the top ten feed producers in the world and the total feed output of

the three countries exceeds 80 million tons.The feed capacity in South America is about 200 million tons of which Brazil is the third largest feed

producer in the world with a feed output of over 80 million tons. In this region broiler feed production exceeds

70 million tons second only to the Asia-Pacific region; layer feed production exceeds 25 million tons; pig feed

exceeds 40 million tons; and aquatic feed exceeds 7 million tons. It is an important breeding area for tilapia and

litopenaeus vannamei.South America has unique natural advantages: abundant feed ingredients provide sufficient raw material

supply for feed enterprises; rich water resources rapid growth of aquaculture industry; superior geographical

19Guangdong Haid Group Co. Ltd.2024Full text of the annual report

location close to developed countries in Europe and America convenient for meat protein export. There are

many feed manufacturers in the region mainly European and American feed companies and local companies.Sufficient and relatively cheap raw materials ensure the cost advantage of animal breeding in the region. If feed

upgrades and innovations product supporting services and breeding model upgrades can be achieved the

breeding efficiency and advantages will be greatly improved and the feed efficiency will have a large room for

improvement.The feed capacity in Africa exceeds 50 million tons of which broiler and layer feed together account for

half of the region's feed production. Africa is currently the region with the fastest population growth rate in the

world and the contradiction between protein demand and supply efficiency is the most prominent: due to the

rapid population growth in some regions of Africa the annual per capita supply of animal protein will even

drop slightly. Due to the urgent need to improve the efficiency of animal protein supply through feed and the

vast arable land provides a large amount of feed raw materials the feed industry has a broad development space

in this region.Company Operation Overview

1. Feed sales grew against the trend and market share further increased

During the reporting period the company achieved a feed sales volume of 26.52 million tons (including

approximately 2.1 million tons of internal breeding consumption) a year-on-year increase of approximately 9%

and its market share further increased. Among them in terms of varieties (including domestic and overseas) the

export sales of poultry feed was 12.65 million tons an increase of about 12% year-on-year; the export sales of

pig feed was 5.64 million tons a slight decrease of about 3% year-on-year; the export sales of aquatic feed was

5.85 million tons an increase of about 11% year-on-year; and the export sales of ruminant feed and others were

280000 tons.

By regionDomestic feed export sales amounted to 22.06 million tons a year-on-year increase of

approximately 5%. According to the data of China Feed Industry Association the total output of industrial feed

in the country decreased by 2.1% year-on-year and the company's market share further increased: * The

export sales of aquatic feed increased by 8% year-on-year and the growth rate far exceeded that of the industry.This is due to the company's adjustment of the group's internal competition strategy in recent years the

investment of resources in key markets and the vigorous support of high-quality customers and farmers. During

the reporting period the general water feed increased significantly year-on-year; the shrimp and crab feed

increased significantly year-on-year of which the litopenaeus vannamei feed increased by 16% year-on-year.

20Guangdong Haid Group Co. Ltd.2024Full text of the annual report

However due to the high breeding density and abnormal weather the crayfish farming ended prematurely and

the peak season was not prosperous so the crayfish feed declined throughout the year; High-end extruded fish

feed (special water fish feed) is under pressure due to insufficient consumption demand and the production

capacity of varieties that have increased significantly in the past few years has been reduced significantly; *

The export sales of poultry feed increased by 10% year-on-year: The company actively leveraged its R&D

technical reserves and professional advantages to cooperate with large-scale farmers one-stop breeding

companies and food companies in various ways to empower the industry and expand market share in the asset-

light development model; * Pig feed fell by 3-4% year-on-year: The effective market space for pig feed has

shrunk due to the decline in the stock of small and medium-sized retail investors in pig breeding; the company

actively follows the changes in breeding trends actively adjusts its customer structure and focuses on

developing pig family farms and large-scale farms with breeding advantages and strong vitality laying a solid

foundation for development in the next few years.The company is fully aware of and prepared for the difficulties challenges and opportunities faced

by the domestic aquaculture and feed industries and the domestic feed market share will steadily

increase.The contradiction between excess capacity and consumer demand in the aquaculture and feed

industries will bring about drastic changes. Operational excellence product leadership and customer orientation

are the only paths for feed companies to survive and develop in the next stage.Operational excellence is the

foundation. In the feed industry as a manufacturing industry the low-cost advantage brought by operational

excellence is the most basic competitive advantage; clear processes efficient per capita efficiency strong

execution high capacity utilization and low four expenses can form a leading edge in the total cost of product

operation. The company has screened out a group of internal factories with high operating efficiency and good

cost control summed up and sorted out excellent experience and created a full range of basic competitive

advantages.Product leadership is the key to creating differentiated advantages. There are a large number of

technological innovation points and technological potential tapping points in the domestic aquaculture industry

with multiple varieties multiple regions and multiple models. Since its establishment the company has been

committed to research and development. At present it has a huge R&D team of nearly 4000 people with a

cumulative R&D investment of more than 5 billion yuan. The systematic R&D platform has become highly

competitive. It will accurately target key R&D sites tap potential innovation space build product strength with

technology and innovation and establish differentiated advantages.Customer orientation is the best paradigm

for building core competitiveness. On the basis of excellent operation and leading products we provide farmers

21Guangdong Haid Group Co. Ltd.2024Full text of the annual report

with overall solutions for breeding: high-quality seedlings high-quality feed high-quality animal protection

healthy breeding mode and comprehensive breeding management guidance. This is the greatest value of feed

enterprises and the best way to create value for farmers. At present the company has achieved initial results in

the combination of seedlings feed animal protection breeding mode and breeding guidance of Penaeus

vannamei effectively improving the breeding efficiency of farmers and creating excess value for farmers. At

present the customer-oriented paradigm will be extended to other aquatic products and livestock and poultry

breeds expanding the advantages of the system and increasing the utilization rate of domestic production

capacity and market share.The export sales volume of feed in overseas regions was 2.36 million tons a year-on-year increase of

about 40%. Among them: * Aquatic feed has quickly won the favor of farmers due to its excellent product

strength and strong breeding technology service system and has established a competitive advantage in the two

major varieties of global circulation and consumption-vannamei and tilapia and the aquatic feed has increased

by 25-30% throughout the year; * The poultry feed has increased by 50% throughout the year and the

combination of poultry seedlings and feed has brought great competitive advantages; * The sales volume of

pig feed is definitely not large due to the influence of local consumption habits of the business.From overseas regions:

Vietnam is the region where the company entered the earliest has been working for the longest time and

currently has the largest absolute volume of overseas sales. In 2024 the sales growth rate will be 25-30%.Vietnam has a long coastline small temperature difference throughout the year and rich water resources. It is

very suitable for aquaculture. It is currently one of the fastest growing countries in aquaculture in the world and

a leading exporter of aquatic products in the world. At present the company's sales of aquatic products in

Vietnam have ranked first in the local area;

Indonesia is the country with the second largest absolute volume of the company's overseas feed sales

with a sales growth rate of over 40% in 2024. The local population is large and animal protein foods are mainly

chicken eggs and aquatic products. The company entered the Indonesian market in 2017 the first plant was put

into operation in 2019 and the second plant was put into trial production in December 2024. The capacity

utilization rate is in a rapid ramp-up period;

Egypt is one of the most populous countries in Africa with a huge consumption of poultry meat and is the

origin of tilapia with a large market space. Relying on high-quality products and efficient services since the

Egyptian Haida poultry feed plant was put into operation in January 2024 the sales volume of poultry feed has

22Guangdong Haid Group Co. Ltd.2024Full text of the annual report

ushered in a breakthrough growth and its market share has jumped to the forefront of the region; the aquatic

feed plant has also been put into operation in early 2025;

Ecuador has a unique marine environment and is an important breeding area for litopenaeus vannamei in

the world. The market for shrimp farming and shrimp feed is the largest in the world. As the first Chinese feed

company in Ecuador the company provides a series of solutions for farmers with high-quality shrimp feed and

refined farming management technical guidance. In 2024 shrimp feed in the region will increase by more than

40%.

Internationalization is one of the core strategies of Haida in the future. The vast overseas market

space provides a major opportunity for the company's development. In terms of spatial layout the feed

capacity of the existing deployed areas and neighboring countries has been able to support the completion of the

overseas medium-term target (7.2 million tons) and the company is deploying for a longer-term and broader

market target. In Southeast Asia with Vietnam and Indonesia as the core the company has been actively

expanding into Bangladesh Cambodia Myanmar and other markets; in Africa with Egypt as a bridgehead it

has gradually extended to East and Central Africa markets and is currently actively exploring markets in

Nigeria Tanzania Uganda etc.; in South America the company is based in Ecuador and has established a

team to develop neighboring countries such as Brazil and Chile. In terms of market competition many overseas

regions are still in a single-dimensional competition of feed products themselves and the intensity is less than

that in China. The company's feed product strength has been honed in the fierce domestic market competition

and has formed strong professional capabilities in all aspects so the feed product strength has strong

competitiveness in overseas local markets; At the same time the company is fully prepared for the changes that

will occur in the future competition in the overseas market. It has invested resources and teams to gradually

deploy the seedling and animal protection industries overseas match the future competition needs of customers

and the market in advance and replicate the mature domestic competition paradigm and core advantages to

overseas markets.

2. Continuous research and development of seedlings and animal protection business and actively develop

new categories

During the reporting period the company's seedling business achieved operating income of 1.4 billion

yuan. In terms of shrimp breeding the company has 14 generations of pedigrees and more than 2000 families

are maintained every year which constitutes a germplasm resource bank with high genetic diversity. It also has

a number of specialized shrimp breeding centers expansion and testing bases to ensure the strong

23Guangdong Haid Group Co. Ltd.2024Full text of the annual report

competitiveness of the company's shrimp seedling products. The company continues to adhere to and invest in

the fish fry industry breaking through the traditional breeding model and introducing indoor factory breeding;

the company has made great breakthroughs in the breeding breeding and breeding of tilapia varieties and is

expected to rapidly form industrial advantages in the next few years; it has introduced new ones in traditional

varieties such as grass carp bream and crucian carp and has taken the lead in realizing the large-scale single-

sex seedlings in raw fish yellow croaker and other varieties. In addition the company has invested in the

construction of aquatic seedling farms in Vietnam Indonesia and other countries starting an international

strategic layout.The overall operating income of the animal insurance business was about 800 million yuan. The market

has higher and higher requirements for green environmental protection and health of aquaculture products and

the demand for health care of aquaculture products continues to increase. The company has intensively

cultivated in the field of animal protection relying on strong research and development capabilities and has

achieved product innovation and upgrading according to market demand. It has successively launched various

innovative products such as functional materials health materials and enzyme preparations and combined

animal protection products and feed into one continuously improving the ability of escorting farmers.

3. The professional ability is improved and the downstream aquaculture develops steadily

In the pig breeding business the company achieved about 6 million fat pigs for slaughter throughout the

year. The company continued to focus on the capacity building of the pig breeding team and the innovation of

the asset-light model. The team management ability and professional ability were further improved and the

comprehensive breeding cost was significantly improved and the risk was controllable. Under the background

of overcapacity in the industry the company strives to explore and implement the operation model of

"outsourcing piglets company + family farm locking profits and hedging risks". With the improvement of the

professional ability of the team and the exploration and iteration of the model the asset-light low-risk and

stable pig breeding model has become more and more clear and the overall breeding risk is controllable and the

profit is considerable.In terms of aquaculture the company's current main breeding species are special aquatic products such as

prawns. Factory shrimp farming has the advantages of safety controllability and stable quality compared with

traditional farming mode through factory scientific design circulating water system biological feed technology

and strict biological prevention and control and can form a dislocation competition with traditional products in

terms of time to market and product specifications. Through refined management and professional operation in

24Guangdong Haid Group Co. Ltd.2024Full text of the annual report

recent years the cost of shrimp farming has been significantly reduced. In the future the company will

appropriately expand the scale of shrimp farming on the basis of building the professional ability of the team.

4. Future Outlook

Looking forward to the future the company has a clear strategic plan — the feed business is the first core

business and it pursues core capacity building and scale expansion. The short-term goal is to reach an export

increase of more than 3 million tons in 2025 and the medium-term goal is to reach a total sales volume of 51.5

million tons in 2030 steadily increase domestic capacity utilization and market share and further accelerate the

expansion of overseas feed business. Seedling and animal protection businesses are also core businesses and are

the foundation of intensive animal farming; both have very strong technical attributes. The company will

continue to invest resources and efforts to occupy the commanding heights of technology and industry. In

addition the asset-light pig farming model and factory shrimp farming are being tried. These two farming

businesses must be expanded on the premise of unique competitiveness or core competitiveness and will

become one of the company's main businesses in the future.II. Main business of the company during the reporting period

The company's industrial chain business layout is based on providing overall solutions for animal breeding.The main products include feed high-quality animal seedlings animal protection live pigs aquatic products

etc. The business operation has covered all business links such as research and development design production

sales and service of various products. Specifically the company's products include animal feeds such as

chickens ducks geese pigs fish shrimps and crabs ruminants live pigs shrimps fish and other farmed

species shrimp fry fish fry and other seedling species fresh livestock and poultry products and prepared

vegetables for aquatic products as well as biological products veterinary drugs vaccines and other animal

protection products required in the process of livestock and aquaculture.

1. Main business and products

(1) The three-body linkage of feed seedlings and animal protection creates value for farmers. Feed

seedlings and animal protection are the company's core business and its operating income accounts for more

than 80% of the company. After more than 20 years of development the feed business has accumulated a wide

range of customer resources. By providing customers with high-quality animal seedlings that are scarce in the

market cost-effective and strong feed products and relying on the breeding technology service system to drive

the development of animal protection products such as vaccines veterinary drugs and biological products a

25Guangdong Haid Group Co. Ltd.2024Full text of the annual report

complete set of breeding solutions can better help customers achieve breeding success help customers achieve

healthy breeding and control breeding costs and gain competitive advantages in end products.

(2) On the basis of specialization the breeding business realizes a light-asset low-risk breeding model

On the basis of the high-quality development of feed seedling and animal protection business the

company conducts model exploration in the breeding link. In terms of livestock and poultry breeding the

company is currently mainly engaged in pig breeding with continuous improvement in breeding professional

capabilities continuous optimization of breeding costs and controllable risks. In aquaculture the company uses

its own high-quality seedlings feed and animal protection products to focus on the factory farming of prawns

where the company has overall advantages. In the breeding business the company controls the scale of breeding

builds teams reduces costs improves the system and is building core competitiveness.

2. Main business model

(1) Feed seedling and animal protection business business model Feed business is the company's core

business and its operation and management mainly adopt the business model of centralized procurement of raw

materials distribution of production points sales of products and technical services.* Adopting the centralized

procurement model of "group + regional center" for bulk raw materials such as agricultural products combined

with hedging and other methods can obtain better procurement advantages and risk control; * The production

link aims to be closest to the market convenient logistics and rich resources and carry out multi-point

production in the breeding area. At present the factories are mainly distributed in more than 200 cities in Asia

Africa and South America; * The company focuses on localized marketing and fully establishes distribution

channels to efficiently solve the capital and transportation needs of farmers. At the same time the company

directly goes deep into farmers to provide breeding technical services by setting up technical and service teams

in breeding areas forming sales and services channels and functions of farmers. Complementary and

synergistic;* High-quality animal seedlings biological products veterinary drugs and vaccines have become

indispensable products and tools in the process of providing breeding technical services for the company and

constitute a package of overall breeding solutions.

(2) Breeding business model The pig breeding business basically adopts the model of "company + family

farm". The "company + family farm" model means that the company provides family farmers with seedlings

feed vaccines and other necessary products for breeding. After the main technical requirements of the breeding

process are agreed the family farmers complete the breeding process and the company recycles the finished

products for external sales. The company's aquatic product breeding and processing business is still in its

26Guangdong Haid Group Co. Ltd.2024Full text of the annual report

infancy. The main species of aquatic product breeding is prawns. With the company's high-quality seedlings

feed animal protection and technical advantages standardized and factory farming is carried out.III. Analysis of core competitiveness

The company's products and services are arranged around the needs of breeding. The core competitiveness

is reflected in the ability to create value for customers. The comprehensive performance is the outstanding

single-product product strength driven by research and development the matching ability of high-quality seed

and seedling animal protection and the breeding technical service ability directly to the terminal to build the

output capacity of the overall breeding solution.

1. R&D-driven clear and excellent feed product strength is the company's most important

competitive advantage

The company conducts research on basic forward-looking and key common issues in the seven R&D

directions of "animal genetics and breeding animal nutrition and feed veterinary medicine and

biopharmaceuticals microbial engineering biochemical engineering protein engineering and healthy

breeding" and continuously improves the three-level R&D system to comprehensively and effectively support

drive and serve the needs of the rapid development of the group. The company has a relatively rich technical

research reserve and a huge R&D team. It invests a lot of money in R&D every year. R&D personnel include

animal nutrition veterinary medicine breeding and breeding breeding mode bioengineering biochemistry

machinery and other multi-disciplinary talents. The transformation of R&D results is fast and the investment

supporting strategy can be clearly and quickly implemented. For example for feed formulation technology

through more than 20 years of continuous research and development the company has established a huge

animal nutrition demand database and reserves a variety of raw material formulation technologies. Every year

thousands of sets of comparative experimental results are added to the animal core nutrition demand and raw

material utilization database to transform the technology into productivity. Therefore the company has a strong

ability to continuously optimize product formulas and can quickly adjust formulas when raw material prices

fluctuate to gain a cost competitive advantage. At the same time the optimization and upgrading of products

driven by scientific and technological research and development can not only adapt to changes in the breeding

environment and changes in breeding models but also lead the progress of breeding technology and the

upgrading of breeding models.

27Guangdong Haid Group Co. Ltd.2024Full text of the annual report

On the basis of a strong R&D system and continuous technological innovation the company's various

series of products are committed to creating product capabilities that are significantly ahead of competitors.While high-end products are priced at high prices they all have obvious advantages in the ultimate pursuit of

animal survival rate growth effect and growth efficiency and their brand effect is outstanding; mid-end

products are priced close to competitors' products on the basis of ensuring leading production efficiency and

pursue outstanding product cost-effectiveness. Therefore when the overall breeding efficiency of the industry is

good the company's customers can obtain significantly higher income than similar farmers; and when the

industry's breeding efficiency declines or even the whole industry loses money the company's customers can

lose less or even no loss.

2. High-quality seedling animal protection solves the pain points of farmers

In the breeding industry chain seedlings are the "core chips" the link with the highest technical threshold

and the greatest potential for value mining. The company has the world's leading technological advantages

resource reserves and industrialization scale in the field of aquatic breeding. It is the first to build an integrated

commercial breeding system for breeding reproduction and promotion in the industry. It is listed in the first

batch of 20 "China Aquatic Seed Industry Integrated Advantage Enterprises" and was selected as a national

seed industry formation enterprise. The company has technologically advanced shrimp fry and freshwater fry

breeding technology and has cultivated a number of new varieties with fast production speed and strong disease

resistance and stress resistance. There are 9 new national aquatic products: Litopenaeus vannamei "Haixingnong

No. 2" Litopenaeus vannamei "Haixingnong No. 3" Litopenaeus vannamei "Haijingzhou No. 1" Tilapia

"Bairong No. 1" Hybrid Channa "Xiongbi No. 1" Tuantou "Huahai No. 1" Changzhu Hybrid mandarin catfish

hybrid yellow croaker "Baixiong No. 1" and grass carp "Husu No. 1".The company's animal protection vaccine is guided by distinctive technology and research and

development and is empowered by a complete service system and mature breeding plan. It has strong market

competitiveness and excellent market reputation and solves breeding pain points for farmers all over the

country. High-quality aquatic animal protection and livestock and poultry animal protection products can help

farmers improve the breeding environment prevent and control diseases of farmed animals reduce disease

losses realize healthy safe and controllable breeding process reduce breeding costs and improve breeding

efficiency.

3. The breeding technology service system is an important starting point for the company to create

value for customers continuously acquire new customers and improve customer stickiness

28Guangdong Haid Group Co. Ltd.2024Full text of the annual report

In 2006 the company took the lead in the industry to propose to provide comprehensive technical services

to farmers and positioned the company as a service-oriented enterprise that provides farmers with overall

breeding solutions. The company provides farmers with product and technical service support for the entire

breeding process such as "seedling-stocking mode-environmental control-disease control-feed-market

information" to ensure that farmers can use the most advanced breeding technology thereby ensuring the

success and profitability of farmers. The company has the most experienced and passionate technical service

team in the industry; it has accumulated a variety of advanced breeding models based on local characteristics; it

has hundreds of efficient service stations in the national breeding intensive areas which can provide tens of

thousands of farmers at the same time. Provide technical services. The company's relatively complete service

system in the industry can give full play to the advantages of product strength and provide full-process technical

services for breeding which can effectively amplify customer benefits and increase customer stickiness.The company's breeding technology service started from aquaculture service. After more than ten years of

talent team construction and platform construction the process and concept of the breeding technology service

system have penetrated into all aspects of product technology research and development market and operation

driving the company's aquatic feed and animal protection business development to highlight the effect and the

process and idea have been gradually promoted to pig breeding and have achieved obvious results.Comprehensive breeding technical services have become an important brand label of the company and it is an

important starting point for the company to create value for customers acquire customers and improve customer

stickiness.IV. Main business analysis

1. Overview

See "I. The industry in which the company operates during the reporting period".

2. Revenue and Cost

(1) Composition of operating income

Unit: Yuan

2024 2023 Year-on-year

Proportion of Proportion of increase or

Amount Amount

operating income operating income decrease

Total operating 114601056662.29 100% 116117168742.97 100% -1.31%

29Guangdong Haid Group Co. Ltd.2024Full text of the annual report

income

By industry

Feed industry 95774577643.37 83.57% 100625094888.81 86.66% -4.82%

Breeding industry 18826479018.92 16.43% 15492073854.16 13.34% 21.52%

Sub-product

Feed 91202471546.02 79.58% 95956237795.73 82.64% -4.95%

Animal protection

845785008.000.74%1094616254.630.94%-22.73%

products

Agricultural

18826479018.9216.43%15492073854.1613.34%21.52%

products

Trading business 3435411501.16 3.00% 3400500883.54 2.93% 1.03%

Other business 290909588.19 0.25% 173739954.91 0.15% 67.44%

By regions

South China 67393687661.28 58.81% 69265386101.27 59.65% -2.70%

East China 16343599813.21 14.26% 16173847857.34 13.93% 1.05%

North China 27435014704.38 23.94% 32361476949.29 27.87% -15.22%

Central China 30865136138.53 26.93% 32394634731.85 27.90% -4.72%

Overseas area 14339378668.54 12.51% 10935313584.80 9.42% 31.13%

Combined offset -41775760323.65 -36.45% -45013490481.58 -38.77% -7.19%

(2) The situation of industries products regions and sales models that account for more than 10% of the company's

operating income or operating profit

□Applicable □ Not applicable

Unit: Yuan

Gross profit

Increase or

Operating costs margin

decrease in

increased or increased or

operating

Gross decreased decreased

Operating income Operating cost income over the

margin compared to the compared

same period of

same period last with the same

the previous

year period last

year

By industry

Feed

95774577643.3786254955507.069.94%-4.82%-5.99%1.12%

industry

Breeding

18826479018.9215384621981.1118.28%21.52%5.91%12.05%

industry

Sub-product

Feed 91202471546.02 82315983104.74 9.74% -4.95% -6.22% 1.21%

Animal

protection 845785008.00 368047297.51 56.48% -22.73% -33.39% 6.96%

products

Agricultural

18826479018.9215384621981.1118.28%21.52%5.91%12.05%

products

Trading

3435411501.163413103070.420.65%1.03%0.85%0.18%

business

30Guangdong Haid Group Co. Ltd.2024Full text of the annual report

By regions

South

67393687661.2860465150039.2710.28%-2.70%-6.89%4.04%

China

East China 16343599813.21 15343642240.56 6.12% 1.05% 0.18% 0.81%

North

27435014704.3826087969176.034.91%-15.22%-16.79%1.79%

China

Central

30865136138.5328851852669.776.52%-4.72%-8.00%3.33%

China

Overseas

14339378668.5412420785985.7613.38%31.13%28.56%1.73%

area

If the statistical caliber of the company's main business data is adjusted during the reporting period the

company's main business data adjusted according to the caliber at the end of the reporting period in the most

recent year

□Applicable □ Not applicable

(3) Whether the company's physical sales income is greater than the labor income

□ Yes □ No

Year-on-year

Industry

Projects Unit 2024 2023 increase or

classification

decrease

Sales volume 10000 tons 2652.42 2440.23 8.70%

Feed industry Production volume 10000 tons 2656.50 2427.65 9.43%

Inventory 10000 tons 30.20 26.12 15.62%

Explanation of the reasons why the relevant data has changed by more than 30% year-on-year

□Applicable □ Not applicable

(4) The performance of major sales contracts and major procurement contracts signed by the company as

of the reporting period

□Applicable □ Not applicable

(5) Composition of operating costs

Industry and Product Classification

Unit: Yuan

31Guangdong Haid Group Co. Ltd.2024Full text of the annual report

2024 2023 Year-on-

Industry year

Projects

classification increase or

Proportion of Proportion of decrease

Amount Amount

operating cost operating cost

Feed industry Material cost 82300277709.15 95.41% 88202446185.50 96.13% -6.69%

Feed industry Labor cost 1059264120.40 1.23% 989977644.07 1.08% 7.00%

Manufacturing

Feed industry 2532650682.13 2.94% 2339254579.25 2.55% 8.27%

expenses

Contract

Feed industry performance 204940960.99 0.24% 180835593.31 0.20% 13.33%

cost

Feed industry other 157822034.39 0.18% 41892300.32 0.04% 276.73%

Total feed

86254955507.06100.00%91754406302.45100.00%-5.99%

industry

Breeding

Material cost 12710121419.04 82.62% 12396546681.62 85.34% 2.53%

industry

Breeding

Labor cost 1781888643.36 11.58% 1366507811.60 9.41% 30.40%

industry

Breeding Manufacturing

856521390.675.57%732405482.145.04%16.95%

industry expenses

Contract

Breeding

performance 36090528.04 0.23% 30752187.87 0.21% 17.36%

industry

cost

Total breeding

15384621981.11100.00%14526212163.23100.00%5.91%

industry

Unit: Yuan

2024 2023 Year-on-

year

Product

Projects Proportion of Proportion of increase categories Amount Amount

operating cost operating cost or

decrease

Feed Material cost 78583692155.91 95.47% 84349916329.38 96.10% -6.84%

Feed Labor cost 1040158185.91 1.26% 961282644.51 1.10% 8.21%

Manufacturing

Feed 2502195525.44 3.04% 2303531792.17 2.62% 8.62%

expenses

Contract

Feed performance 189937237.48 0.23% 160791559.67 0.18% 18.13%

cost

Total feed 82315983104.74 100.00% 87775522325.73 100.00% -6.22%

Animal

protection Material cost 303482482.82 82.46% 468093146.63 84.71% -35.17%

products

Animal

protection Labor cost 19105934.49 5.19% 28694999.56 5.19% -33.42%

products

Animal

Manufacturing

protection 30455156.69 8.27% 35722787.08 6.47% -14.75%

expenses

products

Animal Contract

15003723.514.08%20044033.643.63%-25.15%

protection performance

32Guangdong Haid Group Co. Ltd.2024Full text of the annual report

products cost

Total animal

insurance 368047297.51 100.00% 552554966.91 100.00% -33.39%

products

Agricultural

Material cost 12710121419.04 82.62% 12396546681.62 85.34% 2.53%

products

Agricultural

Labor cost 1781888643.36 11.58% 1366507811.60 9.41% 30.40%

products

Agricultural Manufacturing

856521390.675.57%732405482.145.04%16.95%

products expenses

Contract

Agricultural

performance 36090528.04 0.23% 30752187.87 0.21% 17.36%

products

cost

Total

agricultural 15384621981.11 100.00% 14526212163.23 100.00% 5.91%

products

Trade industry Cost of sales 3413103070.42 100.00% 3384436709.49 100.00% 0.85%

other Cost of sales 157822034.39 100.00% 41892300.32 100.00% 276.73%

Description

No.

(6) Whether the scope of consolidation has changed during the reporting period

□ Yes □ No

The company included 574 subsidiaries in the consolidated financial statements this year an increase of 45 and

a decrease of 28 over the previous year. For details please refer to Note VII in Section X "Financial Reports".Interests in other entities.

(7) Significant changes or adjustments in the company's business products or services during the

reporting period

□Applicable □ Not applicable

(8) Major sales customers and major suppliers

The company's main sales customers

The total sales amount of the top five customers (yuan) 2670199505.48

The proportion of the total sales amount of the top five

2.33%

customers to the total annual sales

The proportion of related party sales in the top five customer

0.00%

sales to the total annual sales

The company's top 5 customers

Serial number Customer name Sales (yuan) % of total annual sales

33Guangdong Haid Group Co. Ltd.2024Full text of the annual report

1 First place 788720383.87 0.69%

2 Second place 700257717.22 0.61%

3 Third place 464271569.00 0.41%

4 Fourth place 409424334.64 0.36%

5 Fifth place 307525500.75 0.27%

Total -- 2670199505.48 2.33%

Other descriptions of major customers

□Applicable □ Not applicable

The company's main suppliers

The total purchase amount of the top five suppliers (yuan) 13479427870.81

The proportion of the total purchase amount of the top five

12.45%

suppliers to the total annual purchase amount

The proportion of related party purchases in the total annual

0.00%

purchases of the top five suppliers

The company's top 5 suppliers

Percentage of total annual

Serial number Supplier name Purchase amount (yuan)

purchases

1 First place 5251698311.87 4.85%

2 Second place 2714696337.16 2.51%

3 Third place 2316527695.90 2.14%

4 Fourth place 1634952899.14 1.51%

5 Fifth place 1561552626.74 1.44%

Total -- 13479427870.81 12.45%

Other descriptions of major suppliers

□Applicable □ Not applicable

3. Fees

Unit: Yuan

Year-on-year

2024 2023 increase or Description of major changes

decrease

A year-on-year increase of 15.46% was mainly due to

the expansion of the company's sales volume the

Selling

2608350800.44 2259143012.20 15.46% increase in sales and service personnel the increase in

expense

salary levels and the increase in business promotion

expenses.A year-on-year increase of 21.81% was mainly due to

Administration

3187514888.49 2616739147.40 21.81% the increase in salary levels and the increase in office

expense

expenses over the same period.A year-on-year decrease of 27.86% was mainly due to

Finance 369711343.72 512506390.25 -27.86%

the decrease in financing scale and the decrease in

34Guangdong Haid Group Co. Ltd.2024Full text of the annual report

expense financing costs.The slight year-on-year increase was mainly due to

the increase in the company's R&D personnel the

R&D expenses 860035315.34 784880414.03 9.58%

increase in salary levels and the increase in R&D

investment.

4. R&D investment

□Applicable □ Not applicable

Expected impact on the

Main R&D project

Project purpose Project progress Goals to be achieved company's future

name

development

The cost of feed has been

Determine the precise Nutrition is more precise significantly reduced the

nutritional requirements feed cost is saved feed cost of breeding by

Construction and of multiple aquatic waste is avoided the farmers has been

maintenance of products in various environment is protected significantly reduced and

Precision

precision nutrition breeding modes different feed digestion and the growth performance

Nutrition

database for various growth stages different absorption are more of aquatic products has

aquatic products breeding stages and complete and growth been higher which has

different breeding performance is greatly promoted the green

environments. improved. development of the

breeding industry.In view of common diseases

of livestock and poultry

Immune enhancers have Focusing on the core

immune enhancers can

Establishment of Development of been developed to concept of creating value

significantly improve

disease-resistant functional feed improve the resistance of for customers we will

disease resistance and

nutrition system for and functional pigs and poultry to improve the efficiency of

provide a strong guarantee

livestock and poultry additives bacterial and viral breeding and enhance the

for the healthy and efficient

diseases. product strength.production of livestock and

poultry breeding.Relying on the whole

industry chain of

It has been rated as a new Complete the systematic aquaculture taking

Constructing an Provide high- aquatic product variety in work of seed industry advantage of the three-

integrated shrimp and quality stable many countries and selection and breeding body linkage of "feed +

fish fry breeding shrimp and fish continues to promote the germplasm resource seedlings + animal

system fry genetic breeding research protection germplasm protection" to promote

of other varieties family establishment etc the green and high-

quality development of

aquaculture

Choose raw materials that

are easy to digest and

The nutritional value

absorb nutrients which are

evaluation nutritional

行情