海大集团:2024年年度报告(英文版)

Guangdong Haid Group Co., Ltd.
2024Annual Report
April 2025

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
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
"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
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 soybea