禾丰牧业定期财报：禾丰牧业：2019年年度报告（英文版）

股份有限公司LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportStockCode:603609StockAbbreviation(English):WellhopeLiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportMarch2020LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportImportantStatementsI.TheBoardofDirectors,SupervisoryBoard,Directors,SupervisorsandSeniorManagementofLiaoningWellhopeherebywarrantthattherearenofalserepresentations,misleadingstatementsormaterialomissionsinthisannualreport,jointlyandseverallyacceptfullresponsibilityforthetruthfulness,accuracyandcompletenessofthecontentsofthisreport.II.AlltheBoardDirectorsattendedtheboardmeeting.III.SuyaJinchengCPALLPhasissuedtheauditor'sreportwithanunqualifiedopinionfortheCompany.IV.TheCompany'sChairmanJinWeidongandtheDirectorofinternalauditZhangWenliangwarrantthetruthfulness,accuracyandcompletenessoftheinformationpresentedinthefinancialstatementsinthisannualreport.V.TheprofitdistributionplanforthereportingperiodhasbeendeliberatedbytheBoardofDirectors.Theplanfor2019dividenddistributionwillbe:basedontotalsharecapitalontheequityregistrationdatewhenthe2019annualdividenddistributionwillbeimplemented,theCompanywilldistributedividendsofRMB2.20yuanper10shares(taxincluded)toallshareholders.ThisdividenddistributionplanhasbeendeliberatedandapprovedbytheBoardofDirectors,pendingsubmissiontotheShareholders'Meeting.VI.RiskStatementofForward-lookingStatementsTheforward-lookingdescriptionsinthisreportintermsofplans,developmentstrategiesandotherinformationcannotbedeemedtheCompany'scommitmenttoinvestors.Pleasebewareoftheinvestmentrisks.VII.TherehasbeennooccurrenceoftheCompany'snon-businesscapitalbeingoccupiedbycontrollingshareholdersandtheirrelatedparties.VIII.TherehasbeennooccurrenceoftheCompanyviolatingitsdecision-makingprocedurewhileprovidingexternalguarantees.IX.MaterialRiskWarningTheCompanydescribespossiblerisksindetailinthisreport.Pleasereferto"PossibleRisks"inSectionIV"BusinessOperationsAnalysis".X.ThisannualreporthasbeenissuedinbothChineseandEnglishversions.Incasethereisanydiscrepancyorinconsistencybetweenthetwoversions,theChineseversionshallprevail.ThedisclosedChineseversionof2019AnnualReportcanbeobtainedat:.LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportContentsSectionIGlossary.............................................................................................................4SectionIICompanyProfileandKeyFinancialInformation...............................................5SectionIIIBusinessOverview............................................................................................9SectionIVBusinessOperationsAnalysis..........................................................................29SectionVImportantDisclosures.....................................................................................78SectionVIChangesinCommonSharesandShareholderInformation............................98SectionVIIPreferenceShare...........................................................................................105SectionVIIIDirectors,Supervisors,SeniorManagementandEmployees.......................106SectionIXCorporateGovernance..................................................................................113SectionXCorporateBond.............................................................................................115SectionXIFinancialStatements.....................................................................................116SectionXIIReference......................................................................................................261LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportSectionIGlossaryI.GlossaryCSRCreferstoChinaSecuritiesRegulatoryCommissionSSEreferstoShanghaiStockExchangeWellhope,LiaoningWellhope,theCompanyreferstoLiaoningWellhopeAgri-TechJointStockCo.,Ltd.ReportingPeriodreferstoJanuary1,2019-December31,2019WulianHelireferstoWulianHeliEquityInvestmentPartnership(LP),oneoftheshareholdersofWellhopeRoyalDeHeusreferstoKoninklijkeDeHeusB.V.,theparentcompanyofDeHeusMauritiusLtd.,thebiggestfeedcompanyintheNetherlandsCompanyConstitutionreferstoTheConstitutionofLiaoningWellhopeAgri-TechJointStockCo.,Ltd.Shareholders'MeetingreferstoTheShareholders'MeetingofLiaoningWellhopeAgri-TechJointStockCo.,Ltd.BoardofDirectorsreferstoTheBoardofDirectorsofLiaoningWellhopeAgri-TechJointStockCo.,Ltd.SupervisoryBoardreferstoTheSupervisoryBoardofLiaoningWellhopeAgri-TechJointStockCo.,Ltd.CorporateLawreferstoTheCorporateLawofthePeople'sRepublicofChinaSecuritiesLawreferstoTheSecuritiesLawofthePeople'sRepublicofChinaPremixreferstoAlsoknownasadditivepremix,itisawell-proportionedmixturepreparedbytwoormorethantwokindsoffeedadditivesandcarrierordiluentsaccordingtoappropriateproportion.Itisageneralnameforcompoundpremix,microelementpremixandvitaminpremix.ConcentrateFeedreferstoItisawell-proportionedmixtureconsistedofproteinfeed,mineralfeedandfeedadditivesaccordingtoappropriateproportion,itcanbemadeintocompoundfeedbymixingwithenergyfeedinaspecifiedproportion.CompoundFeedreferstoBasedonthenutritionalneedsofanimals,morefeedrawmaterialsandfeedadditivesareindustriallyprocessedaccordingtofeedformula,itcanbedirectlyusedforfeedinganimals.Broilerbreeders,parentstockreferstoBroilerbreederslayeggs,thechickshatchedfromitseggsarethecommercialdayoldchicks,whichhavegoodgeneticcharacteristicsoftablepurpose.CommercialbroilerreferstoFatteningfromdayoldchick,usedforfoodCage-rearedreferstoAmethodoffarmingasopposedtofloor-reared,i.e.,withthespecialcageasasymbol,acompletesetofprocessesthatcomposeofcustomizedfeed,artificialinsemination,on-sitemanagement,etc.LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportSectionIICompanyProfileandKeyFinancialInformationI.CompanyinformationCompanyname(English)LiaoningWellhopeAgri-TechJointStockCo.,Ltd.Abbreviation(English)WellhopeCompanyname(Chinese)辽宁禾丰牧业股份有限公司Abbreviation(Chinese)禾丰牧业LegalRepresentativeJinWeidongII.ContactpersonSecretaryoftheBoardRepresentativeofsecuritiesaffairsNameZhaoXinYangGuolaiAddressNo.169,HuishanStreet,ShenbeiNewDistrict,Shenyang,Liaoning,P.R.ofChinaNo.169,HuishanStreet,ShenbeiNewDistrict,Shenyang,Liaoning,P.R.ofChinaTel024-88081409024-88081409Fax024-88082333024-88082333Emailhfmy@wellhope.cohfmy@wellhope.coIII.BasicinformationoftheCompanyRegisteredaddressNo.169,HuishanStreet,ShenbeiNewDistrict,Shenyang,Liaoning,P.R.ofChinaPostalcode110164OfficeaddressNo.169,HuishanStreet,ShenbeiNewDistrict,Shenyang,Liaoning,P.R.ofChinaPostalcode110164CompanywebsiteEmailhfmy@wellhope.coIV.PlacewheretheannualreportispreparedMediadesignatedbytheCompanyfordisclosinginformationChinaSecuritiesJournal,ShanghaiSecuritiesNews,SecuritiesTimesWebsitedesignatedbytheCSRCforpublishingtheannualreportPlacewheretheCompanypreparesitsannualreportSecuritiesDepartmentoftheCompanyV.StockinformationStockinformationStockTypeStockExchangeforListingStockAbbreviationStockCodeAshareShanghaiStockExchangeWellhope(禾丰牧业)603609LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportVI.OtherinformationAccountingfirm(local)NameSuyaJinchengCPALLPOfficeaddress22nd-23rdF,CentralInternationalPlaza,No.105-6NorthZhongshanRoad,Nanjing,JiangsuProvince,ChinaNameofsignatoryCPAZhouJiawen,WangLeiThesponsortheperformstheresponsibilityofcontinuoussupervisionduringthereportingperiodNameGFSecuritiesOfficeaddressGFSecuritiesTower,26MachangRoad,TianheDistrict,Guangzhou,ChinaNameofsignatorysponsorrepresentativeHuangHaisheng,HeYuPeriodofconductingcontinuoussupervision2019VII.Keyaccountingdataandfinancialperformanceindicatorsinthelatestthreeyears1.KeyaccountingdataUnit:yuanCurrency:RMBItem20192018Year-on-Yearchange%2017Operatingrevenue17,792,091,973.5815,750,798,120.6712.9613,695,843,458.67NetprofitattributabletotheshareholdersoftheCompany1,199,347,355.96551,928,618.35117.30471,024,473.92NetprofitattributabletotheshareholdersoftheCompanydeductingnon-recurringgainsandlosses1,190,975,760.51542,459,604.74119.55389,607,877.28Netcashflowfromoperatingactivities1,111,605,966.58501,404,915.59121.70611,390,370.75Asattheendof2019Asattheendof2018Year-on-Yearchange%Asattheendof2017NetassetsattributabletotheshareholdersoftheCompany5,698,139,557.543,851,915,758.6447.933,390,304,242.88Totalassets9,149,772,043.856,930,694,562.4332.025,985,861,995.542.KeyfinancialperformanceindicatorsItem20192018Year-on-Yearchange%2017Basicearningspershare(yuanpershare)1.340.66103.030.57Dilutedearningspershare(yuanpershare)1.340.66103.030.57Basicearningspersharedeductingnon-recurringgainsandlosses(yuanpershare)1.330.65104.620.47Weightedaveragereturnonequity(%)24.5715.30Increased9.27percentagepoints14.72Weightedaveragereturnonequitydeductingnon-recurringgainsandlosses(%)24.4015.04Increased9.36percentagepoints12.17LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportVIII.Keyfinancialfiguresbyquartersin2019Unit:yuanCurrency:RMBItemQ1Q2Q3Q4Operatingrevenue3,512,085,453.864,215,314,550.895,015,825,872.215,048,866,096.62NetprofitattributabletotheshareholdersoftheCompany140,999,877.50218,008,761.68354,079,351.53486,259,365.25NetprofitattributabletotheshareholdersoftheCompanydeductingnon-recurringgainsandlosses134,261,140.24224,035,659.24346,464,664.86486,214,296.17Netcashflowfromoperatingactivities13,296,100.82283,272,880.40286,342,572.40528,694,412.96IX.Non-recurringgainsandlossesUnit:yuanCurrency:RMBItem201920182017Gainsorlossesondisposalofnon-currentassets-3,146,106.63-3,713,387.3260,743,353.24Governmentgrantschargedtocurrentgainsorlosses(excl.thegovernmentgrantsthatarecloselyrelatedtotheCompany'sordinarycourseofbusinessandgainedconstantlyatfixedquotasoramountsaspercertainstandardsbasedonthestatepolices)22,363,695.7919,471,241.1034,132,205.99Incomegeneratedfrominvestmentcostsforacquiringsubsidiaries,associatedcompaniesandjointventuresarelowerthanthefairvalueoftheinvestee’snetidentifiableassetsacquiredbytheCompany1,844.71Gainsorlossesondebtrestructuring-1,147,367.47Gainorlossonfairvaluechangesintradingfinancialassetsandliabilities,andinvestmentincomefromdisposaloftradingfinancialassetsandliabilitiesaswellasavailable-for-salefinancialassets(excl.theeffectiveportionofhedgesthatariseintheCompany'sordinarycourseofbusiness)-181,164.67Gainsorlossesonfair-valuechangesintradingfinancialassetsandliabilities,derivativefinancialassetsandliabilities,andtheincomefromdisposaloftradingfinancialassetsandliabilities,derivativefinancialassetsandliabilitiesaswellasotherdebtinvestment(excl.theeffectiveportionofhedgesthatariseintheCompany'sordinarycourseofbusiness)4,418,219.502,821,414.45Non-operatingincomeandexpenseotherthanthosedescribedabove-15,858,496.27-3,208,527.84-1,240,061.60Othergainandlossitemsthatmeetthedefinitionofnon-recurringgainsandlosses820,378.27Non-controllinginterestseffects3,972,264.26-590,792.81-4,164,352.40Incometaxeffects-4,200,204.18-4,163,566.50-7,873,383.92Total8,371,595.459,469,013.6181,416,596.64LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportX.ItemmeasuredatfairvalueUnit:yuanCurrency:RMBItemOpeningbalanceClosingbalanceChangeEffectsoncurrentprofitDerivativefinancialassets2,042,527.603,912,584.301,870,056.70577,449.00Total2,042,527.603,912,584.301,870,056.70577,449.00LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportSectionIIIBusinessOverviewI.PrincipalBusiness,OperationModelandCircumstanceofRelatedIndustriesintheReportingPeriodPrincipalbusinessofWellhope(hereinafterreferredtoas"theCompany")primarilyconsistsoffeedproductionandsale,feedrawmaterialstrade,broilerintegrationbusiness,hograisingbusinessandrelatedbusinesses.Whensteadilydevelopfeedbusiness,theCompanyaimstotake5-8yearstoswiftlypromotebroilerintegrationandhograisingbusinesses,forgingacomplementaryoperationmodelfueledbybroilerandhogintegrationbusinessestofurtherheightenitsmarketpowerinanimalhusbandryindustry.1.FeedandfeedrawmaterialstradeA.IndustryoverviewIn2019,affectedbysomefactorsintermsofdeclinedhoginventoriesandwavesininternationaltradesituation,theoutputvalueandproductionofChina’scommercialfeeddecreased,whilsttheadjustmentofproductmixacceleratedandlarge-scaleenterprisesmaintainedstableoperations.AccordingtothestatisticsofChinaFeedIndustryAssociation,theproductionofcommercialfeedin2019reached228.854milliontons,representingayear-on-yeardecreaseof3.7%.Swinefeedamountedto76.632milliontons,decreasedby26.6%ascomparedwithprioryear,amongwhichfeedforpiglet,sowandfinisherdroppedby39.2%,24.5%and15.9%respectively.Layerfeed,broilerfeed,ruminantfeedandaquaticfeedrecorded31.166milliontons,84.648milliontons,11.089milliontonsand22.029milliontonswiththeyear-on-yeargrowthrateof9.6%,21.0%,9.0%and0.3%respectively.Intermsoftheoverallfeedproduction,theshareofswinefeedreducedto33.5%fromprevious43.9%,whilstpoultryfeedincreasedto50.6%from41.4%.TheoutputvalueoffeedrealizedRMB709.77billionandoperatingrevenuereachedRMB685.85billion,decreasedby9.8%and11.5%respectively.In2019,China’shoginventoriesexperiencedacontinuousslideduetoAfricanSwineFever(referredtoasASFhereof).Accordingtothestatisticsof,thedeliveriesofhogin2019reducedby28.2%ascomparedwithprioryear,whilstporkproductiondecreasedby25.64%.Attheendof2019,domestichoginventoriesdroppedoffby48.38%,whilstbreedingsowsreducedby27.61%andcommercial(sow)accountedforover30%ofLiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReporttotalsows,whichbroughtagreatuncertaintyinproductionperformance.ASFacceleratedthereshuffleinfeedandhograisingindustries,causingunprecedentedimpactsontheindustrialchain.Consumptionofswinefeedfellsharply,feedproducersloweredpricestooccupymarketshare,makingafiercecompetitionintheindustry.Atthesametime,feedproductstructurewasfacingobviouschanges.Ononehand,ASFdrovethedevelopmentofbroiler,layerandruminantanimalraising.In2019,chickenproductionincreasedby15%,beefandmuttonby3%andeggsbyaround5.7%(accordingtothestatisticsreleasedbytheMinistryofAgricultureandRuralAffairs).Changesofdomesticmeatconsumptionfueledtheconsumptionsofpoultry,ruminantandaquaticfeed.Ontheotherhand,someswinefeedproducersenlargedtheproductionofpoultry,aquaticandruminantfeedtoensureworkingrate,whichintermediatelypushedtheincreaseofproduction.Drivenbythecentralandlocal-levelpolicies,therestockingofswinein2020hasbeengraduallyrecoveredandthedemandofswinefeedisexpectedtoincrease,whilstpoultry,ruminantandaquaticfeedarehopefullykeepinggrowth.FromJuly1,2020,Chinawillcompletelybantheuseofantibioticsinfeed,theanimalhusbandryindustryisusheringinaneweraofreducingandrestrictingantibioticsinfarming.Theprohibitionofantibioticsisaglobaltrendandalsoaprerequisiteforensuringfoodsafety.In2020,domesticfeedproducerswillfacenewchallengesandonlythefittestcouldsurvive.B.BusinessprofileTheCompanymanufacturesandsellsanimalfeedforswine,poultry,ruminant,aquaticandfur-farmedanimals,andtheproductsaremarketedin29provincesandregionsacrossChina.IthasalsobuiltfeedplantsinNepal,IndonesiaandthePhilippines,etc.Drivenbytheprincipleof“constantlyworkingonnewproducts,neverfollowingthebeatenpath”,theCompanyalwaysdesignstailor-madeproductsforanimalsindifferentgrowthstagesanditiscommittedtoofferingfarmersintegratedservicesintermsofanimalraising,diseasepreventionaswellasoperationmanagement,helpingthemtoachievethebesteconomicbenefits.Thesubsidiarytradecompaniesmainlytradeinfeedrawmaterialsintermsoffishmeal,soybeanmealandco-productsofcorn,alsoengageinfeedadditivesincludingaminoacid,antioxidant,moldinhibitorsandvitamin.Inaddition,thetradecompaniesarethesales../hfmy/AppData/Local/Youdao/Dict/Application/7.5.2.0/resultui/dict/LiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportagentsofanimalhealthproductssuchasvaccinesandveterinarymedicineproducedbyglobalstrategicsuppliers.Meanwhile,theCompanyalsolaunchedpetclinicsbusiness.Atpresent,itstradebusinessdistributesinNortheastChina,NorthernChina,EasternChina,SouthwestChina,GuangdongProvinceandotherregions,someproductshavebeenexportedtoNepal,Mongoliaandothercountries.2.BroilerintegrationbusinessA.IndustryoverviewIn2019,thesupplyofwhitefeatherbroilerfellshortofdemand,withtheoverallprofitsreachinganunprecedentedhigh.Intermsofsupply,productionincreasedinalargescalewithintheyear,butstillbehindthedemand.In2019,breederfarmsupdatedover1.3millionsetsofgrandparentstock,butthewillingnessofmoultingfellsharplyandforcedmoultingbasicallydisappeared.Meanwhile,parentstockfarmstookmeasurestoincreaseproduction,boostingthesupplyofcommercialchickincreasingby13.7%ascomparedwithprioryear.However,althoughtheproductioncapacityincreasedsharply,thetightsupplyofwhitefeatherbroilerwasnotchangedstill.Asaresult,thepriceofdayoldchickhadbeenbreakingrecords,thepeakexceededRMB13perchick,whilstthepriceofbroilerpartsproductshasalsoremainedhigh,thelowestpricestillsurpassedtheaveragepriceof2018.Intermsofdemand,gainingfromthehighporkpricesthatpoweredtheincreasingdemandforproteinsubstitutesandtherecoveringdemandofchickenproduct,thedemandfromallconsumptionchannelsofwhitefeatherbroilerincreasedsharplyin2019.H7N9fluhadbasicallyvanishedsince2018,whichpresentedthatthebiggestnegativefactorforwhitefeatherbroilerconsumptiondisappearedandledarecoverygrowthofconsumption,whilstporkshortageduetoASFenlargedthesubstitutionaldemandofchicken.In2019,consumptionofwhitefeatherbroilerincreasedby16.3%nationwide,percapitaconsumptionrosebyabout16.2%,theincreaserateofdemandexceededthatofproduction,whichledtorecordhighpricesofbroilerpartsproducts,withtheaveragepriceasRMB12,380perton,weeklyhighestpriceasRMB17,000perton,monthlyasRMB14,000perton.In2020,whitefeatherbroilerindustrywillfacetheincreasebothinproductionandsales,thebloombothinsupplyanddemand.Accordingtothestudyofathirdparty,itisLiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportestimatedthatChina’shogdeliverieswilldecreasebyaround30%andporkproductiondroppedoff20%ascomparedwithprioryear.AlthoughCOVID-19constrainsconsumptioninashortterm,porksupplyoftheyearstillfaceshugeshortage,moreover,theproductionofyellowfeatherbroiler,817typeofbroilerandducksufferslossesduetotheepidemic,theconsumerdemandofwhitefeatherbroilerwillhavealargeincreasingspace.Therefore,itisverylikelythatthemarketfor2020willstillbebooming.Besides,duetotheincreaseofproduction,priceofdayoldchicksreducedcomparedwiththatof2019,profitsintheindustrialchainwillberedistributed,theprofitshareofslaughteringwillincreaseobviously.Overall,ASFledtoalargeincreaseinthesubstitutionaldemandofwhitefeatherbroiler,andrelyingontheadvantagesofchickenthatfeaturedbyhighprotein,lowfatandlowcholesterol,thechangeofdomesticmeatconsumptionstructurehasbeenspeededupandtheshareofchickenconsumptionhasrisenquickly.COVID-19mayhaveashort-termimpactontheindustry,butthewhitefeatherbroilerwillbearlessstressthantheyellowfeatherbroiler,817typeofbroilerandduck.Inthemid-longterm,COVID-19mayhardlyreversetheincreasingtrendofwhitefeatherbroilerconsumption,ontheotherhand,itwillfurtheracceleratetheupgradingofwhitefeatherbroiler.Regulationsontheindustryarebecomingmorestrict,unqualifiedplayerswillbeweededout,theleadingpositionoflargeintegratedenterpriseswillbecomemoreobvious.Explanation:AbovestatisticscomefromindustryanalysisreportsofB.BusinessprofileTheCompany'sbroilerintegratedchaincoversmorethan40holdingandassociatedcompanies,whicharemainlylocatedintheprovincesofLiaoning,Hebei,Henan,JilinandShandong,etc.Ithasestablishedthreebusinessunitsintermsofbroilerraising,rawmeatprocessingandfurtherprocessing,whichcontainsbreeding,hatching,feedproducing,commercialbroilerraising,slaughteringandprocessingofrawmeat,furtherprocessingofpreparedandcookedfood.Theintegratedoperationcaneffectivelyensuretheproductionandsupplyofalloperatingsegments,andfacilitatetheCompanytocontrolfoodsafetyacrosstheentirechain.Meanwhile,throughstandardizedmanagementandstreamlineoperation,theCompanyconsolidatesthecontrolsofbio-safety,drugresidueandin-processhygienetoachievetraceablefoodsafety.BasedonthetotalslaughteringLiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReportvolumeoftheholdingandassociatedcompanies,theCompany'swhite-featherbroilerbusinesshasreachedthefirstechelonoftheindustrybyscaleandbecomeoneoftheleadingsuppliersofwhitefeatherbroilerproductsnationwide.◆Broilerraising:Thisunitcoversbreederraising,dayoldchickhatching,commercialbroilerrearingandfeedproduction.TheCompanyformulatesscientificandrationalfeedingprograms,lightprogramsanddiseasepreventionsystemtoprovidequalifiedeggsforthehatchingfarms.Meanwhile,ithasestablishedthoroughmanagementsysteminthehatchingprocess,introducedintelligentfacilitiesthatareavailableforhatchinginbatches,alsoequippedhigh-efficientandenergy-savinghatcherandenvironmentcontrolsystemforsupplyinghealthydayoldchicks.Enteringcommercialbroilersector,theCompanymainlyraisesbroilerbyself-ownedfarmsandcontract(out-sourcing)farmsunderthepatternofunifyingnineaspects,includingunifiedsiteselectionandplanning,unifiedconstructionstandards,unifieddayoldchickssupply,unifieddiseaseprevention,unifiedfeedsupply,unifiedmedicinesupply,unifiedtechnologicalguidance,unifiedtestingandunifiedslaughteringandprocessing.Guidedbyscientificraisingstandards,allthefarmsapplythree-tiercagesystem,andautomatealltheprocessesfromfeedintake,watertemperaturetomoisturecontrol,etc.,meanwhile,thefarmscombinecropplantingwithanimalraisingtoreducemanurepollutionandpromoteresourcerecycling.Thedeliverybodyweightofcommercialbroilercanreachover3.0kgwiththelivabilityofover95%,andtheEuropeanproductionindex(shortenedasEPIinthefollowingparts)exceeds390,receivingwiderecognitionfromthecooperativefarms.WellhopeLiaoningWellhopeAgri-TechJointStockCo.,Ltd.2019AnnualReport◆Rawmeatprocessing:TheCompanyhas15holdingandassociatedslaughteringentities,whichareequippedwithstate-of-the-artproductionlineswithanannualslaughteringcapacityof650million-750millionbroilers.Drivenbyall-inandall-outinspectionandquarantine,everysingleentityhasestablishedatotalqualityguaranteesystemandtraceabilitysystemtomonitoralltheprocesses.Meanwhile,theCompanyconstantlystrengthensandimprovesslaughteringandprocessingtechniquesbywaysofsystematicpre-jobtrainingandskillpromotiontrainingaswellasconducting"6S"management(i.e.,Seiri,Seiton,Seiketsu,Shitsuke,Seiso,Safety),makingthekilling-outpercentageandpercapitaslaughteringefficiencystandoutamongcompanieswithsimilarscale.TheCompanymainlysuppliesbroilerpartsproductstomeatprocessi……