天天观速讯丨大北农: 2022年年度报告摘要(英文版)

                                                             DBN 2022 Annual Report Summary


(资料图片)

Stock code: 002385         Stock abbreviation: DBN       Announcement No.: 2023-040

                Beijing Dabeinong Technology Group Co., Ltd

                             Haidian District, Beijing

                                 April 2023

                                                                                                    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

 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

 Office address

                                             District, Beijing                              District, Beijing

 Fax                                         010-82472400                                   010-82472400

                                                                                                 DBN 2022 Annual Report Summary

 Telephone                                  010-82856450                                  15652078320

 Email                                      cwbgs@dbn.com.cn                              cwbgs@dbn.com.cn

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

with a YOY increase of 143.16%, and net profit attributable to shareholders of DBN 55.6018 million yuan with a YOY increase of

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%.

                                                                                                   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

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

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

                                                                                                   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-Ø8ØØ2-3),

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.

(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

 of the Company

                                                                                                   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

 of the Company

 Net profits attributable to shareholders

 of the Company after deducting of non-

                                                                                                         DBN 2022 Annual Report Summary

 recurring profit or loss

 Net cash flow generated from operating

 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

(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

 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

 Clearing Company Ltd.             person

 Agricultural Bank of China

 Limited - E Fund Consumer         Others                        1.34%           55,645,273

 Fund

                                                                                                  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.

                                 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

 selling business (if any)

                                 common securities account and 22,451,600 shares in the credit securities account, totaling

(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

                                                               .

                                           Beijing Dabeinong Technology Group Co., Ltd.

□ Applicable         Not applicable

III Matters of Significance

None.

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