Tianjin Ringpu Bio-technology Co., Ltd.

Company Profile

During the first three quarters of 2021, the Company recorded Revenues of RMB1,498.95 million, representing a year-over-year increase of 2.58%. Segment Revenues of Poultry were RMB999.41 million, a year-over-year increase of 1.44%. Segment Revenues of Swine increased by 28.89% year-over-year to RMB300.09 million. Segment Revenues of Pet were RMB19.45 million, a year-over-year increase of 15.16%. Segment Revenues of APIs were RMB162.64 million, a year-on-year decline of 19.56%. The net profit attributable to shareholders of the listed company was RMB292.19 million, a year-over-year increase of 15.83%. the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB256.05 million, a year-over-year increase of 10.51%. On the front of breeding market, the hog breeding industry in China has experienced a constant and deep loss in the third quarter of 2021, with an exponential growth of total cash flows and the rapid deterioration in sow herd size. The deep loss has brought unprecedented pressure to the backyard hog farms. As a result, the breeding industry is ushering in an unparalleled acceleration in the pace of consolidation. The cost for the poultry breeding industry remains high along with stable poultry size. The profitability for the broiler farms and the layer farms was continued to be differentiated and depressed, respectively. Coping with the periodic downturn in the breeding market, the Company continued to leverage on its strengths of building high-quality and diversified product portfolios, which helps to comprehensively reduce animal mortality and improve slaughter performance for breeding customers by offering one-stop animal disease solutions from biosafety protection, scientific treatment, all the way to refined breeding management. The breeding industry in China has been threatened by various diseases since ASF (African swine fever) outbreak, which causes an increasingly complex breeding environment. Large farms are willing to pay more to ensure animal health by taking biosafety measures, disease prevention, medicated treatment, functional additives, as well as improving ecological indicators of farms, causing a significant increased demands for diversified product portfolio and one-stop breeding services. Meanwhile, the market share of the leading animal health companies is significantly increasing due to the implementation of new GMP guidance, regulation on veterinary drug administration, and the Pilot Plan for the Reduction of the Veterinary Use of Antibacterial Drugs in Livestock. The accelerated gathering pace of large farms and leading animal health companies brings a huge space for sustainable development to the Company. The Company will seize the significant growth opportunity of the structural consolidation, both in the breeding industry and animal health industry. Leveraging on the diversified product portfolios that covering a wide range of diseases, as well as the efficiency of one-stop animal disease solutions, the Company will continue to attract large customers at the same time maintain a strategic partnership, getting closer the customers, assisting customers to enhance ecological indicators of farms, as well as comprehensively achieving cost reduction and efficiency improvement. The Company adheres to the organic growth while continuously accelerating its inorganic growth strategy, to realize the integrated development and promote sustainable growth of the business.