Securities code: Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) securities abbreviation: Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Announcement No.: 2022008 Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048)
Announcement on increasing investment in pig breeding industrial chain projects
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Investment overview
On March 15, 2022, the second meeting of the 10th board of directors of Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) (hereinafter referred to as “the company”) deliberated and adopted the proposal on increasing investment in pig breeding industrial chain projects with 10 votes in favor, 0 votes against and 0 abstentions, and agreed to increase investment in pig breeding industrial chain projects, including increasing investment in Xuwen phase I project Invest in the construction of Xuwen phase I fattening expansion project and the construction of feed plant project.
This transaction does not constitute a connected transaction, nor does it constitute a major asset reorganization stipulated in the administrative measures for major asset reorganization of listed companies. According to the relevant provisions of the Listing Rules of Shenzhen Stock Exchange, this matter is within the approval authority of the board of directors of the company and does not need to be submitted to the general meeting of shareholders for approval.
2、 Basic information of investment projects
(I) increased investment in Xuwen phase I Project
1. Project implementation subject: Xuwen County Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd., a wholly-owned subsidiary of the company
2. Project location: xinliao Town, Xuwen County, Zhanjiang City, Guangdong Province
3. Project construction scale: including 200 boar stations, 1500 ancestral breeding pigs, 12000 parental breeding pigs and 60000 fattening pigs.
4. Project investment: the total investment was originally expected to be 539 million yuan, but now it is planned to invest an additional 148.01 million yuan. After the additional investment, the total investment is expected to be 687.01 million yuan, including 505.67 million yuan in fixed assets and 181.34 million yuan in biological assets and working capital.
5. Reasons for increased investment: the overall investment amount is expected to increase due to factors such as rising raw material prices, increasing labor costs, increasing design adjustments such as environmental protection treatment facilities, and increasing introduction costs.
6. Source of project funds: self owned and self raised funds of the company (including bank loans).
(II) Xuwen phase I fattening expansion project
1. Project implementation subject: Xuwen County Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd., a wholly-owned subsidiary of the company
2. Project location: xinliao Town, Xuwen County, Zhanjiang City, Guangdong Province
3. Project construction scale: 84000 fattening pigs.
4. Total investment of the project: the estimated total investment is 232260000 yuan, mainly in fixed assets.
5. Source of project funds: self owned and self raised funds of the company (including bank loans).
(III) feed plant for pig breeding project
The company plans to build a feed plant in the place where the pig breeding project has been invested. The details are as follows:
Project name project implementation subject project investment amount (10000 yuan) project capacity
Xuwen feed factory Xuwen County Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. 1313467, with an annual output of 36000 tons of pig feed
Gaozhou feed factory Gaozhou Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. 778164, with an annual output of 180000 tons of pig feed
Hezhou feed factory Hezhou Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. 2475247, with an annual output of 36000 tons of pig feed and 60000 tons of premix
Wenchang feed factory Wenchang Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) Times Co., Ltd. 712437, with an annual output of 120000 tons of pig feed
3、 Investment purpose, impact on the company, existing risks and Countermeasures
1. Investment purpose and impact on the company
The company’s investment in the construction of pig breeding industrial chain project is in line with relevant national industrial policies and the company’s overall strategic plan for deepening agricultural development, which is conducive to the company’s further expansion of business scale, improvement of market competitiveness and industry status, and enhancement of the company’s sustainable development ability; At the same time, continue to help the local government ensure the supply of pig market and enhance social influence.
The above-mentioned projects will be implemented step by step and in stages, and will not have a significant impact on the company’s financial situation and operating results in the short term.
2. Existing risks and Countermeasures
(1) Epidemic risk
Animal disease is the main risk in the development of animal husbandry industry. Once an epidemic disease occurs in the process of pig breeding, production and sales will be affected.
Response measures: the project adopts the mode of self breeding and self-supporting and the whole industry chain. From design to operation, the needs of epidemic prevention and control are fully considered, the whole process of circular closed management is carried out, and a strict biosafety epidemic prevention system is established to effectively reduce the risk of epidemic diseases, especially African swine fever.
(2) Pig price fluctuation risk
Affected by the cyclical supply and demand fluctuations of the industry, the pig breeding business will face the risk of price fluctuations, which will affect the income of the project.
Countermeasures: on the one hand, continuously improve the breeding efficiency and reduce the breeding cost; On the other hand, we should deeply study the market supply and demand, and reasonably arrange the listing plan according to the changes of the market.
(3) Feed raw material price fluctuation risk
Affected by the changes of planting area and harvest, collection and storage and subsidy policies, import and export policies, international trade relations, exchange rate and other factors in the world’s major grain producing countries, the Shenzhen Agricultural Products Group Co.Ltd(000061) prices of corn and soybean meal fluctuate greatly, and feed production faces the risk of rising raw material procurement costs.
Countermeasures: ensure the low-cost supply of raw materials through the combination of centralized procurement of bulk varieties and local procurement of regional varieties; At the same time, strengthen the research and development of animal nutrition and feed formula technology, and control the reasonable feed nutrition level and formula cost by adjusting the formula when the price of raw materials fluctuates.
4、 Documents for future reference
1. Resolutions of the second meeting of the 10th board of directors;
2. Resolution of the second meeting of the 10th board of supervisors.
It is hereby announced.
Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) board of directors March 15, 2002
