Recently, CCTV financial reports said that the Zhangzidao scallop incident is suspected to be due to man-made disasters, Zhangzidao received the Shenzhen Stock Exchange on February 23 "Letter of Concern about Zhangzidao Group Co., Ltd.", yesterday, Zhangzidao replied to the issues in the letter.
<b>Question One</b>
According to media reports, "the first reason for the death of scallops this time is the problem of seedlings." Due to the tight funds and deteriorating reputation of the group's seedlings, the company could not buy good scallop seedlings, and the harvest was greatly discounted" and "many scallop seedlings died before they were released". In conjunction with your company's business plan, please explain the investment of Ezo scallops since 2014, including but not limited to the investment in seedlings (including the amount of investment, the proportion of increases and decreases and the reasons, whether it is in line with the company's business plan, etc.) and the survival rate of scallop seedlings, and please verify whether there is a situation where "many scallop seedlings have died before they are released", if so, please explain the reasons and reasonableness, and whether the information disclosure obligations are fulfilled in a timely manner.
The Company does not have the above circumstances. The specifics are as follows:
1. The whole process of bottom-sown Ezo scallop seed is controlled to ensure the quality of bottom-sown seedlings
From October to December every year, the company carries out the bottom sowing of Ezo scallop three-grade seedlings, with nearly 1,000 employees and combination owners participating, which the company calls "bottom sowing conference battle". Carefully deployed before the bottom sowing, the executive president of the marine ranch business group is the general commander, the manager of the breeding branch is the deputy commander, and the assistant to the executive president is the chief inspector, and the standard quality supervision, discipline supervision, seed acquisition, safety and security, logistics support and other teams are formed. In the specific production process, through the screening of purchased Ezo scallop seed farmers, sampling before harvesting, procurement, transportation, bottom sowing and other links, strictly abide by the company's internal control system, implement process supervision, and ensure the quality of bottom sown seedlings. After the Ezo scallop seed is sown, after 2-4 years of natural and pure ecological growth, it reaches a state of harvesting and marketing. After harvest, the seedlings will continue to be sown in the area, and so on. In terms of operation, the company adopts the "five-in-one" cooperation model of "government + bank + scientific research institution + company + farmer", and drives local farmers to breed and sell Ezo scallop tertiary seedlings to the company through the company's capital, management, technology and brand output, so as to achieve economic benefits. Thanks to the marine ranching model of Ezo scallops, since its listing in 2006, the company has sold about 240,000 tons of Ezo scallops, paid about 600 million yuan in taxes, and handed over about 1 billion yuan in sea area use.
The specific conditions of the purchase of Ezo scallop seed farmers, sampling before harvesting, procurement, transportation and bottom sowing are:
(1) Screening of seed industry households: Purchased seedlings come from the seed combination cooperative households in Yangdao District, Changshan Island District and Lushun District of Changhai County, Dalian, and select the industry households with good breeding environment, integrity and good seedling raising effect over the years as seed combination cooperative households.
(2) Sampling before harvesting: The company communicates with the aquaculture households in the process of Ezo scallop seed breeding, purchases seed sampling in two parts, compares the breeding area, secondary fry volume, marine stock after seedling division, sampling results and other relevant indicators of aquaculture households, intra-group and other enterprises, combines the environmental indicators of the sea area, grasps the real-time information, timely adjusts the acquisition strategy, identifies the source of high-quality seedlings, combines market supply and demand, signs the "Seed Purchase Contract" with the combined industry households, and stipulates the seed specifications and quantity.
(3) Seed procurement process: The company has formulated the "Organizational Structure, Functions and Job Description of the Production Technology Management Department", which stipulates that the Production Technology Management Department is responsible for drafting, revising and improving the technical standards for breeding, breeding, breeding and fishing of business groups; participate in the procurement and sales of seedlings and parents of relevant units in the business group. At the same time, a bottom-sowing conference battle project team was set up, and in accordance with the production progress plan of the bottom-sowing conference, reasonable arrangements were made for the bottom-sowing successive areas, personnel planning, and material preparation, so as to ensure the smooth progress of the bottom-sowing and seedling collection process. Each acquisition team is composed of 6-7 people, including the acquisition team leader, the main scaler, the re-scaler, the surveyor, the surveyor, etc. The seed purchase process strictly implements the "Regulations on the Administration of the Purchase of Ezo Scallop Tertiary Seed".
Households collect seedlings and transport them to bottom sowers: Seedling carriers need to set up sunscreen, windproof, cold-proof tarpaulin and other facilities to ensure the safety of seedlings in transportation; dry dew does not exceed 2 hours.
Seedling quality standards require: the shell is in an inherent form and color, tightly closed or slightly stretched, no damage, closed after stimulation, no peculiar smell, no shrinkage edge; according to the "Ezo Scallop Tertiary Seed Procurement Management Regulations" purchased seedlings have deformities, lime worms and other attachments such as seedlings, the total impurities such as impurities do not exceed 10%, exceeding the rejection; within 10% of the deformities, lime worms and other attachment seedlings and other impurities are not priced.
Sampling and quantification: Sample sampling adopts the principle of random sampling to specify non-viewing boxes, extract 2 to 3 kg of net weight quantification, and the sampling frequency is not less than 1% according to the number of boxes.
Scale: ensure that the main scaler, the scaler and the supplier are three people present at the same time to weigh, the electronic scale shows stable data to record, count the number of boxes recorded, weigh the weight record of the pallet after unloading, and fill in the "Seedling Acquisition Scale List".
Sampling and counting method: The bidding team will count the seed of each farmer in accordance with the standard measurement standard, and will not purchase the seedlings that do not meet the standard; for the seedlings that meet the standard, the proportion of different specifications shall be counted in accordance with the company's regulations, and fill in the "Seed Quality Inspection Record Form".
(4) The process of transporting seedlings from the bottom sowing ship to the bottom sowing area: the seedling transportation is carried out in accordance with the "Seedling Transportation, Bottom Sowing Operation Instructions", and the transport ship with oxygenation conditions always maintains the same height of the water layer in the cabin and the loading box, and the transport ship without oxygenation conditions begins to fill the water once when the fry box is filled with three layers, and immediately drains after 5 minutes. During the transportation of seedlings, the uninterrupted circulation of seawater in the cabin is maintained until the seedlings are released from the warehouse, the water temperature and dissolved oxygen index of each warehouse of the seedlings are sampled every hour, and the "Monitoring Record Form for the Use of Oxygenation Equipment on Living Water Vessels" is filled in.
(5) Seed bottom sowing: Seedlings are transported to the designated bottom sowing area, adjust the sailing speed, use the warehouse machine and slide, implement the fixed point and uniform sowing of seedlings in accordance with the principle of uniform speed and slow travel, and fill in the "Seed Procurement, Transportation, Acceptance, Release Record Form (Bottom Sowing Promotion Table)".
(6) Supervision process: The personnel of the seedling acquisition team are centrally selected by each unit of the group, and in accordance with the principle of personnel management of a single group without the same department, an irregular rotation system is implemented, and the outside world is reported in the process of collecting seedlings. The monitoring team consists of 1-2 people in each seedling collection area and inspects whether the maritime supervision is operating in accordance with the standards. The company conducts training on the acquisition standard process for the personnel of bottom sown seedlings, and the Changhai County Public Security Bureau conducts relevant warning education and training, publicizes the relevant regulations and national laws and regulations in the process of bottom sowing and harvesting seedlings, and is supervised by the old cadres of Zhangzidao Asset Management Committee. The company's relevant internal control system in accordance with the ISO9000 quality management system requirements, every year to accept the third-party external audit and the company's internal quality management department audit supervision, the company adhere to the seedling procurement quality standards.
2. Regarding the survival rate of seedlings, there is no situation that "many scallop seedlings have died before they are released"
According to the "Regulations on the Administration of procurement of tertiary seeds of Ezo scallops", the accumulated impurities such as deformed seedlings and lime worms and other attachment seedlings shall not exceed 10%, exceeding the refusal; impurities such as deformities and lime worms and other attachment seedlings within 10% are not valued. However, these substandard and unvalued seedlings cannot be eliminated one by one during large-scale acquisition, so the acquired bottom-sown seedlings will be mixed with impurities and substandard seedlings. In view of the fact that the company adheres to quality control standards and perfect supervision mechanisms in the whole process, there is no situation in which "many scallop seedlings are dead before they are released".
3. The funds for bottom-sown Ezo scallop seed seeds are effectively guaranteed, and the investment situation is in line with the annual business plan
Since the beginning of 2015, the Company has requested rectification in accordance with the Decision on Ordering Corrective Regulatory Measures against Zhangzidao Group Co., Ltd. ([2014] No. 5 Securities Regulatory Bureau) issued by the Dalian Regulatory Bureau of the China Securities Regulatory Commission, and has incorporated the bottom-sown Ezo scallop plan into the Annual Business Plan and submitted it to the board of directors for approval every year, and accordingly, priority fund raising can effectively protect the capital needs of seedlings. From 2014 to 2017, the company's capital investment in bottom-sown Ezo scallop seed was as follows:
Note 1: Since the beginning of 2015, the Company has requested rectification in accordance with the Decision on Ordering Corrective Regulatory Measures against Zhangzidao Group Co., Ltd. ([2014] No. 5 Securities Regulatory Bureau) issued by the Dalian Regulatory Bureau of the China Securities Regulatory Commission, and has submitted the bottom-sown Ezo scallop plan to the board of directors for approval every year.
Bottom-sown Ezo scallop seeds are derived from the company's self-bred and outsourced combination of seed. Self-breeding bottom-sown Ezo scallop seed mainly refers to the secondary seed of Ezo scallop obtained by the company and the cooperative unit in the Zhangzidao area; the purchased seedlings come from the seed combination cooperative households in The Ocean Island Area, Changshan Island District and Lushun District of Changhai County, Dalian.
In recent years, except for a few years, the company's bottom-sown Ezo scallop tertiary seed purchase unit price and self-supporting unit price are relatively stable, and the average unit price of out-of-home purchase from 2014 to 2017 is about 20% higher than the average unit price of self-cultivation, and the amount of seed input is mainly affected by the ratio of out-of-home purchase and self-support and the increase or decrease of bottom sowing area. Among them: in 2014, the investment in tertiary seedlings was 179 million yuan, a decrease of 34.91% over the previous year, mainly due to the decrease of 32% in the bottom sowing area; in 2015, the company's seed investment was 209 million yuan, an increase of 16.76% over the previous year, mainly due to the increase of the bottom sowing area by 22%; in 2016, the seed investment was 252 million yuan, an increase of 20.57% over the previous year, mainly due to the increase of 8.34 percentage points (an increase of 16%) in the proportion of purchased seedlings. In 2017, the seed investment was 187 million yuan, a year-on-year decrease of 25.79%, mainly due to the 33% reduction in the bottom sowing area.
<b>Question two</b>
According to media reports, "the second reason for the large-scale harvest of scallops may be the long-term non-compliant fishing method, the illegal rake net has destroyed the seabed ecology", "the company in order to save costs, do not hesitate to use the rake fishing method that destroys the ecological environment of the seabed". Please explain the fishing methods that your company has adopted for a long time, whether the above fishing methods are consistent with the company system and industry practices, whether they are conducive to the sustainable development of the seabed ecology, and please put forward sufficient objective basis.
The Company does not have the above circumstances. The details are as follows:
1. The company's bottom-sown Ezo scallop harvesting nets are consistent with international and industry practices
The professional scallop net harvesting for the bottom-sown Ezo scallops in Zhangzidao Marine Ranch (not the rake net) is consistent with the truss trawler harvesting scallops required by the company's "Ezo Scallop Trawler Trawling Operation Instructions", and is not among the 13 kinds of fishing gear prohibited by the Ministry of Agriculture. At present, countries with strict international management of ecological protection (such as the United States, Japan, Canada) generally use bottom trawls as a fishing tool for deep-water scallops, which is the current common fishing method, and the company's fishing nets are consistent with international and industry practices.
2. The company's net tools related projects have achieved a number of achievements
In order to ensure the sustainable development of the seabed ecology of marine ranches and reduce the impact of harvesting on the seabed environment, Zhangzidao Group has made improvements, monitoring and evaluation in three aspects, namely, the continuous improvement of scallop netting tools, the changes in seabed sediment indicators and the natural restoration of topography and landforms at different times after the anniversary of trawling, and the changes in the size of the bottom matter after multiple rounds of harvesting in the breeding area.
(1) Continuous research and development of scallop harvesting nets to reduce the degree of impact on the ecology of the seabed
The company cooperates with Dalian Ocean University and has continued to carry out the research and development of shellfish catching net gear upgrading and transformation after more than 10 years. Zhangzidao Group's shellfishing net gear is based on the actual situation of the North Yellow Seabed and other actual conditions, with reference to the corresponding fishing gear and fishing laws of Japan, the United States and other countries, with the goal of ecology and efficiency, and constantly upgraded.
In terms of protecting the substrate, the continuous improvement of "one head and one tail" is mainly for the mesh, one of which is the mesh head (net frame) part, abandoning the traditional multi-channel heavy-duty sea sweeping chain, drawing on the Japanese experience, using lightweight elastic teeth to pick up shells, and changing the lateral surface sweep of the chain into a linear rowing in the direction of the trawl. Elastic teeth are different from the rake teeth of traditional rake mesh, it is not fixed, using a bouncable steel rod torsion spring connection, its contact with the seabed is on the surface rather than deep in the mud to dig shellfish (scallops are not buried shellfish, inhabit the surface of the seabed, do not need to dig out of the mud), the impact on the seabed is less than the traditional chain, far lower than the impact of the rake mesh rake teeth. The second is the tail of the mesh (mesh sac) part, using a bracket with a roller to support the mesh sac, all the previous sliding friction into rolling friction, thereby more effectively reducing the impact on the seabed, reducing the direct contact area between the mesh sac and the seabed.
In view of the advanced nature of this mesh, the relevant project won the second prize of Dalian Science and Technology Progress Award in 2017, and has now been publicized and obtained three related patents ("double-sided elastic tooth shellfish trawling" ZL201110214400.9, national invention patent; "a kind of elastic tooth Ezo scallop truss trawl" ZL201220137213.5, utility model patent; "a rigid torsion spring elastic tooth scallop trawl" ZL2012207311.2, utility model). The scallop harvesting nets currently in use have been continuously improved over the generations. The transformation process is briefly described as follows:
(1) The first generation of bottom trawl (before 2008): The first generation of bottom trawl shell function is mainly based on the two or three rough disturbing shell chains in front of the mesh port door chain. The shell chain is thick and heavy, sweeping across the seabed, and the first generation of mesh sacs are in direct contact with the seabed, with a large contact area and large friction.
(2) The second generation of bottom trawling (developed in 2008): In view of the fact that the first generation of bottom trawl may have a certain impact on the seabed, the net gear upgrading began in 2008. Drawing on the experience of Japan, the elastic shell teeth of steel cables are used instead of chain shells. The lateral surface of the chain sweeps the seabed, and becomes a linear sweep of the seabed in the direction of the trawl, which greatly reduces the degree of impact on the seabed, and the hose of the steel cable head of the shell tooth (the mesh door iron chain is almost not stuck in the mud due to the involvement of the mesh sac iron ring). At the same time, the mesh sac is installed with a sled plate bracket to lift the mesh sac away from the surface of the seabed, and the contact area between the mesh sac and the seabed is greatly reduced, and the friction is reduced, reducing the damage to the seabed.
(3) The third generation of bottom trawl (developed in 2010): The third generation of bottom trawl turns the shell tooth cable head hose into a rubber block, which further reduces its damage to the seabed due to the increase of flexibility. At the same time, the ski plate bracket is changed to a steel frame structural bracket, which increases the strength of the bracket, so that the bracket is not easily damaged, and its mesh capsule function and performance are roughly the same as those of the second generation.
(4) Fourth generation bottom trawl (developed in 2012): The fourth generation of bottom trawl turns the elastic plucking teeth of steel cables into steel rod torsion spring plucking teeth, so that it plays a "stretchy" role when it comes into contact with the seabed, reducing the impact on the seabed. At the same time, the steel structure bracket of the mesh capsule was changed to a rubber tire carrier to further reduce its pressure on the seabed.
(5) Fifth generation bottom trawl (developed in 2014): In view of the poor effect of the 4th generation bottom trawl sac, the 5th generation bottom trawl focused on the transformation of the sachet, turning the tire into an arc steel plate, which is intended to reduce the amount of mud and reduce the damage to the seabed.
(6) Sixth-generation bottom trawling (developed in 2016): The focus of the sixth-generation bottom trawl is still to optimize the mesh bag. The use of a bracket with rollers to support the mesh sac, all the previous sliding friction into rolling friction, thereby more effectively reducing the damage to the seabed, but also making the trawl energy consumption more reduced. At this stage, the company's large-scale fishing vessel operations use this generation of bottom trawling.
After the improvement and upgrading of the above generations, the net gear is currently continuously improving in terms of harvesting efficiency and environmental impact on the seabed, and gradually achieving the goal of sustainable ecological harvesting.
(2) The results of the follow-up survey show that the company's scallop harvesting nets have little impact on the ecology of the seabed
After the follow-up survey of seabed substrate indicators at different times within one year after harvesting, it was confirmed that after the corresponding recovery period, the relevant indicators could return to the previous level.
In August 2015, a survey was carried out on the impact of bottom trawling on the ecological environment of the breeding area, and the changes of the bottom water quality and substrate in the breeding area after the trawl were investigated, and the results showed that the churning after the trawling led to the suspension and sedimentation of the bottom sediment causing wavy terrain. Half a year after the trawling, affected by the bottom current, the bottom sediment returns to a flat state before harvesting, as shown in the following figure:
There are regional differences between the control sea area and the trawling area before the trawling, so the regional spatial and temporal changes should be taken into account when judging whether the environment changes have occurred in the harvested sea area. It can be seen that there is a significant increase in COD and bacteria in the 1 day after trawling, while after more than 5 days, all water quality indicators tend to stabilize. Subsea water exchange can quickly eliminate the impact of trawling on the subsoil water quality, as shown in the following table:
After trawling, the sediment undergoes a process of agitation, suspension, drift and re-precipitation, while the stability recovery period of the sediment is longer than that of seawater. The total nitrogen and total phosphorus content stabilized after 5 months of increase, and the sulfide stabilized after 2 months of trawling. It can be seen that the nutritional status and safety status of the substrate return to stability after 5 months of trawling. Based on the changes in indicators such as topography, water quality, bait, microorganisms and sediments, the trawl will have certain changes to the seabed environment of the breeding area, but after the corresponding recovery period, the relevant indicators can return to the previous level.
(3) Through the survey of the sediment in the fishing sea area, there was no significant change in the sediment particle size after multiple rounds of harvesting
From July to September 2017, the bottom particle size review of the area where the right was confirmed mainly investigated, mainly investigating the positions around 47 islands that had been confirmed early and after multiple rounds of bottom-sown scallop harvesting, basically covering more than 600,000 mu of sea area where the company confirmed the right in the early days. The survey results showed that there was no significant change in the particle size of the bottom of the station position in 93.60%.
It can be seen from the improvement of scallop harvesting nets, the changes in seabed substrate indicators at different times after trawling, and the changes in sediment particle size after multiple rounds of harvesting in the breeding sea area, that the company's scallop fishing methods are consistent with the company's system and industry practices.
<b>Question three</b>
According to media reports, "the third reason for the large-scale harvest of scallops is that in 2016 and 2015, there has been over-harvesting, scallops have been broken, and by the end of 2017, there are not many scallops to harvest." In combination with the production cycle of Ezo scallops, please explain the sowing time, harvesting time and corresponding relationship of the company's sea areas in the past five years, whether there is over-harvesting, if so, please explain the specific circumstances of the harvesting and the impact on the company; if not, please put forward a sufficient objective basis.
Reply
There is no such thing as described above. The details are as follows:
The company's annual harvesting of bottom-sown Ezo scallops is carried out according to the annual plan. When preparing the budget and quality targets every year, according to the results of the autumn stock sampling of Ezo scallops in the previous year and the market demand forecast, the harvesting plan for the new year is formulated, and the bottom sowing plan for the new year is determined according to the approval of the confirmation of the bottom sowing sea area and the new sea area. After self-examination, the company has organized seedling sowing and harvesting in the designated sea area in accordance with the harvesting plan over the years, and there is no early harvesting behavior.
Bottom-sown Ezo scallops can be harvested about 2 years from the date of sowing (as disclosed in the Prospectus issued by the Company on 12 September 2006). The company implements the operation mode of rotation and harvesting in the bottom-sown Ezo scallop sea area, and the breeding situation of each bottom-sown sea area is expressed in years. The situation of sown seedlings and harvested sea areas from 2012 to 2017 is shown in the following table:
Note: The actual bottom sowing area in 2012 was 897,400 mu, of which 599,900 mu were harvested in 2015 and 2016 at the end of 2012, and the remaining area was harvested and written off in 2014.
From 2012 to 2017, the actual bottom sowing area of the company's Ezo scallops was 897,400 mu, 739,300 mu, 503,300 mu, 615,000 mu, 614,000 mu and 413,000 mu, respectively; the actual harvesting area of the company's Ezo scallops was 815,600 mu, 739,100 mu, 922,000 mu, 577,400 mu, 557,800 mu and 609,700 mu, respectively In 2017, the area of bottom sowing was written off by 1.0716 million mu, and the impairment was 243,000 mu.
In 2015, 577,400 mu of seedlings sown in 2012 and at the end of 2013 were harvested; in 2016, 557,800 mu were sown at the end of 2012, 2013 and 2014; and in 2017, seedlings sown at the end of 2013, 2014 and 2015, totaling 609,700 mu. The seedlings sown in 2016 and 2017 are still in the growth stage and have not yet reached the harvest time. The company has organized seedling sowing and harvesting in the designated sea area in accordance with the harvesting plan over the years, and there is no early harvesting behavior.
<b>Question four</b>
According to media reports, your company "found nearly 90% of the deaths in November" and "after the discovery of scallop deaths in November, the company also held a meeting for managers at all levels to ask everyone not to leak out." Please describe the following issues:
(1) The specific circumstances of your company's harvesting of scallops in November, December and January 2018, including but not limited to the name of the sea area, the year of bottom sowing, the average shell height, the quantity, the average weight, the average yield per mu, etc., and please compare the historical harvesting data to explain whether there are any abnormal circumstances in the above-mentioned harvesting situation, if so, please explain the reasons for not checking and disclosing in time; if not, please put forward sufficient objective basis.
576.02 tonnes were harvested in November 2017, 541.64 tonnes in December 2017 and 611.8 tonnes in January 2018. Comparing the historical harvesting data, the specific analysis is as follows:
In the past three years, the specific situation of scallop harvesting in November, December and January is as shown in the following table:
As can be seen from the above table, the specific conditions of scallop harvesting in November 2017, December 2017 and January 2018 have not changed significantly compared with the same period in history, and the specifications and single weight of scallops have not changed significantly. However, due to the influence of scallop thinning and other factors, the yield per mu is low; due to the reduction of orders caused by scallop thinning, the number of scallops harvested by the company according to the order is reduced.
In November 2017, the company caught a total of 576.02 tons of bottom-sown Ezo scallops according to the order, of which the average yield of Ezo scallops sown at the end of 2014 was 26 kg, accounting for 87% of the 30 kg/mu at the time of the autumn stock sampling survey of that year; the average yield of the Ezo scallops sown at the end of 2015 was 29 kg, accounting for 85% of the 34 kg/mu at the time of the autumn stock sampling survey of that year. In December 2017, the company caught a total of 540,000 kilograms of bottom-sown Ezo scallops, of which the average yield of Ezo scallops sown at the end of 2014 was 23 kilograms, accounting for 77% of the 30 kg/mu at the time of the autumn stock sampling survey of that year; the average yield of the Ezo scallops sown at the end of 2015 was 23 kg, accounting for 68% of the 34 kg/mu at the time of the autumn stock sampling survey of that year. Bottom-sown Ezo scallops caught from January to December 2017 yielded an average of 27 kg per mu. Judging from the data on mu production in November and December 2017, it does not constitute significant impairment or write-off, so it is not disclosed.
(2) Whether the media said that your company discovered the abnormal inventory situation in November 2017 and required employees not to leak it to the outside world is true, whether your company has violated the relevant rules of information disclosure, and ask your company to check whether the previous information disclosure is true, accurate, complete, timely and fair, and whether there are material omissions or misleading statements.
1. There is no such situation as described above. The details are as follows:
The company has formulated the "Functions, Structure and Personnel Responsibilities of the Marine Biotechnology R&D Department", which requires the Marine Biotechnology R&D Center to be responsible for the identification and prevention measures of marine environment-related risks, and regularly conducts monthly monitoring of the marine environment. In accordance with the "Regulations on the Management of Foreign Documents" formulated by the company, the Marine Biotechnology R&D Center collected relevant national norms, monitoring projects and analytical methods, sample collection and management, data recording and processing, testing and result evaluation, quality assurance and quality control, etc., in accordance with the "Marine Monitoring Specifications (GB17378.4-2007, GB17378.7-2007)" (General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China, Standardization Administration of the People's Republic of China), Environmental Monitoring Specifications for Coastal Waters (China Environmental Science Press, 2009) and Technical Regulations for Monitoring Marine Aquaculture Areas (State Oceanic Administration, 2002) were carried out. In the process of implementing the above system, although the company monitored the abnormalities of the relevant indicators, it did not find any inventory abnormalities in the autumn stock sampling test conducted from September to October 2017. Based on historical experience, sampling results and production and operation data, and during the period from October to December, some environmental indicators such as bait and water temperature have improved, so before the year-end inventory found that the inventory of bottom-sown Ezo scallops was abnormal, it was not found that the abnormal inventory of bottom-sown Ezo scallops required to fulfill the obligation of temporary announcement, and there was no "situation in November 2017 when the inventory abnormality was found and employees were required not to leak outward".
2. After self-examination, the company's previous information disclosure is true, accurate, complete, timely and fair, and there are no major omissions or misleading statements
Prior to the year-end inventory, the Company did not find that the abnormal inventory of bottom-sown Ezo scallops required the performance of the temporary announcement obligation. Since January 18, 2018, the company has launched the 2017 year-end inventory of bottom-sown Ezo scallops with marine experts and annual review agencies in accordance with the "Regulations on the Inventory Management of Bottom-sown Ezo Scallops", and the inventory situation on January 18-20 is basically normal, the inventory of Bottom-sown Ezo Scallops was basically normal, the weather-affected by January 21-26 was unable to go to sea for inventory, and the inventory began to find abnormal conditions on January 27. After the comprehensive inventory data information found that there was a large-scale abnormality, the chairman and president, the secretary of the board of directors and the chief financial officer of the company held an emergency conference call on the night of January 29 with all parties on the abnormal situation of the inventory and the subsequent inventory work arrangements, and applied to the Shenzhen Stock Exchange for suspension of trading on January 30, and disclosed the relevant announcements in a timely manner in accordance with relevant regulations. Since January 31, 2018, the Company has fulfilled its information disclosure obligations in relation to the relevant matters, issued the 2017 Annual Results Forecast Amendment Announcement (Announcement No. 2018-03), the Announcement on suspension of trading in major matters (Announcement No. 2018-04), the Announcement on the Progress of Important Matters (Announcement No. 2018-06, 2018-07, 2018-09), and the Indicative Announcement on the Resumption of Trading of the Company's Shares. (Announcement No. 2018-08), Announcement on the 2017 Year-End Inventory of Bottom-sown Ezo Scallops (Announcement No. 2018-10), Reply to the Inquiry Letter of the Shenzhen Stock Exchange (Announcement No. 2018-11), Announcement on Abnormal Fluctuations in Stock Trading (Announcement No. 2018-12, 2018-17), Announcement on the Company's Receipt of Notice of Investigation by the CSRC (Announcement No. 2018-14), Announcement on the Receipt by the Company and Its Senior Management of the Decision on Administrative Regulatory Measures from the Dalian Securities Regulatory Bureau (Announcement No. 2018-15), Reply to the Letter of Concern of the Shenzhen Stock Exchange (Announcement No. 2018-16), Announcement (Announcement No. 2018-19) and other relevant announcements. For details, please refer to the announcement disclosed on the website of Juchao Information.
<b>Question five</b>
In 2014, due to the impact of abnormal changes in the cold water mass in the North Yellow Sea, your company suffered heavy losses in some of the sea areas of the bottom-sown Ezo scallops, in this regard, your company set up a marine ranch research center, investing no less than 10 million yuan per year to study the risk prevention and control of the marine ecological environment. Please indicate the amount of investment, operation, whether the expected effect has been achieved and the basis for the marine ranch research center so far.
According to the resolution of the 19th meeting of the fifth board of directors held by the company on December 3, 2014 "Measures on Strengthening the Research and Control of Marine Ecological Environment Risks", on January 18, 2015, the company issued a document (Si Fa [2015] No. 5) to establish a marine ranch research center, and invested no less than 10 million yuan per year to study the construction of marine ecological environment risk prevention and control system. On March 2, 2015, Zhangzidao Marine Ranch Research Center was officially inaugurated, and Fang Jianguang, director of the Aquaculture Ecology Research Office of the Yellow Sea Fisheries Research Institute of the Chinese Academy of Fishery Sciences, was appointed as the director, and a number of experts were also hired. Since 2014, the Marine Ranching Research Center has invested a total of 33.4 million yuan in scientific and technological innovation.
Specifically: 10.3 million yuan was invested in 2015 for ecological fishery projects, marine ranch wind level insurance, marine ranch intelligent management platform, marine environment monitoring, etc.; in 2016, 11.5 million yuan was invested for ecological fishery projects, Ezo scallop harvesting equipment development, Yellow Sea marine observation network maintenance, aquaculture environmental management projects (EAG), marine ranch wind level insurance, marine environment monitoring, etc.; in 2017, 11.6 million yuan was invested for bottom-sown breeding technology, breeding capacity, Intelligent underwater robot fishing test platform, biodiversity monitoring, marine environment monitoring, etc.
With the company's "identification, avoidance, capacity, standard, good seed" marine ranch construction policy, the Marine Ranch research center promotes the transformation of marine ranching from scale to focusing on the quality and efficiency of unit output rate to the main line of research, and strives to provide scientific support and decision-making basis for the company's marine ranch construction through marine special topic research. The specific work carried out and the results achieved are as follows:
(1) Study on the effects of temperature changes on the physiology and ecology of Ezo scallops
Regarding the impact of temperature changes on the physiological ecology of Ezo scallops, the Marine Ranch Research Center has entrusted the Yellow Sea Fisheries Research Institute of the Chinese Academy of Fisheries to conduct research on the horizontal topic of "Ecological Fisheries Special Project", and has also cooperated with the Institute of Oceanography of the Chinese Academy of Sciences to conduct similar research, and the relevant literature has been published. The members of the research group (Gao Zhenkun et al., 2017) pointed out that in order to explore the effect of the temperature fluctuation of the cold water mass in the Yellow Sea on the bottom-sown Ezo scallops, the influence of temperature fluctuations on the physiological and immune indicators of the Ezo scallops was studied by indoor simulation method. Temperature fluctuations within the right temperature range can also lead to varying degrees of death of Ezo scallops. Members of the research group (Zhang Jihong et al., 2017) pointed out that the growth of Ezo scallops is limited by both food and water temperature, and the restriction of food in the Changhai sea area is greater than that of water temperature in 280d of 360d (September 10 to the end of April of the following year); the weight of the soft part of the Ezo scallop includes structural materials, reproductive systems and storage substances, and the numerical model of individual growth of Ezo scallops (DEB) shows that when the storage energy density is lower than that of structural material maintenance energy (PM) in a long-term state of starvation, The biological individual will consume the energy stored in the gonads to maintain life activities; after the energy stored in the gonads is consumed, it begins to consume structural matter, and the volume of structural matter begins to shrink; when the available energy that can be stored energy is lower than THE PM, the biological individual dies. (Liu Chao et al., 2016) points out that within a certain temperature range, the heart rate of scallops increases with increasing temperature. After reaching a certain temperature (Alenius point, ABT), the heart rate begins to gradually decrease, and finally the heart loses rhythm and stops beating. The effect of high temperature on scallop survival has a lag effect. Moreover, the age of scallops seriously affects the adaptability of scallops to high temperatures: second-aged shells are not as adaptable to high temperatures as first-aged shells. The influence of high temperature on the survival of organisms is mainly affected by the influence of their physiological and biochemical factors.
Through the study, the temperature fluctuations will adversely affect the physiological ecology of Ezo scallops, according to which the company will make management actions such as prohibiting basketing, sinking rafts, and determining the harvest time of one-year-old scallops during the high temperature period to reduce the risk of breeding. Based on the adverse effects of violent temperature fluctuations on the growth of Ezo scallops, the company avoided areas with large influences of cold water mass fluctuations in the choice of bottom sowing areas.
(2) Risk assessment and applicability management of marine ranch construction
In view of the construction of zhangzidao marine ranch management, the marine ranch research center proposed five adaptive management measures of "avoidance, identification, capacity, good seeds and standards". In line with the principle of "identifying classification grade division areas, avoiding areas that are not suitable for bottom sowing, assessing and planning the scale of breeding according to capacity, rapidly launching fine seeds, and fine management of the whole process", according to the aquaculture capacity and ecological environment in the sea area, the 790,000 mu of non-suitable Ezo scallop bottom sowing and breeding areas that are not suitable for giving up the confirmed rights are divided into marine aquaculture grades, and a new sustainable development model of organic combination of production and fallow farming is implemented. The implementation of the abandonment of a part of the sea area with poor breeding conditions is conducive to ecological restoration and sustainable industrial development; the aquaculture production process is strictly implemented in accordance with management standards to reduce risks.
(1) Identify the sea area and divide the sea area classification
Marine ecological environment is the basis for the survival of marine organisms, marine ranch research center by organizing the company's technical personnel to carry out real-time, periodic, emergency monitoring, to obtain water temperature, water quality, phytoplankton, precipitation and other marine ecological environment related data. Monthly environmental survey reports are formed and released at the monthly management meeting of the Marine Ranch Business Group. According to the conditions of sea sediment, hydrological environment, biological factors and other conditions, an electronic map of the sea area for confirming rights was completed, and the suitability of Ezo scallop bottom sowing in the existing sea area was divided.
(2) Avoid areas that are not suitable for bottomcasting
From 2013 to 2015, for three consecutive years, the submarine target data of the Marine Biotechnology R&D Department of Zhangzidao Group proved that the western area of Zhangzidao was the front area of the intersection of cold and warm currents, and the survey found that the area was not suitable for Ezo scallop bottom sowing and breeding, and in 2015, 790,000 mu of the above western area was abandoned.
(3) Respect the maximum capacity of ecological aquaculture
Expert studies have shown that Changhai County belongs to the waters of poor nutrient salt, the growth of phytoplankton is limited by insufficient nutrient salt, resulting in insufficient food for micro phytoplankton suitable for filter-feeding shellfish, the monitoring of the breeding capacity of the Changhai region in 2017 by the Ecological Fishery Special Project and the analysis of the increase in the breeding effect of Ezo scallops in the Changhai region in recent years, the current Ezo scallop bottom sowing scale of about 5 million mu in Changhai County is predicted to exceed the ecological capacity.
(4) Adhere to the development of good seeds and select suitable good seeds
The company has increased the scale and intensity of fine seed cultivation year by year, gradually increasing the coverage rate of fine seeds and increasing the proportion of self-breeding seedlings. According to the characteristics of the north Yellow Sea, the breeding research team of the Ocean University of China has conducted genetic breeding research on Ezo scallops, because the research of new strains of stress resistance takes 4 generations at least 8 years, and this work is currently being promoted.
(5) The whole process of some products is traceable
Through the upgrading of marine ranch planning and technological innovation, the company has established unified control standards, technical standards, production standards and operation standards. Implement quality traceability system management for some core products.
At present, according to the five adaptive management measures of "avoidance, identification, capacity, good seeds and standards" of marine ranches, the company has completed the "Sustainable Development Plan for Marine Ranches". According to the aquaculture capacity and ecological environment in the sea area, the 790,000 mu of 790,000 mu of the right to be waived is not suitable for the Ezo scallop bottom sowing and breeding area; the remaining marine ranch breeding area is divided into marine aquaculture grades, and the sustainable development model of organic combination of production and fallow cultivation is implemented in the core sea area. In addition, in 2015 and 2016, the company insured the wind index to reduce the natural risks that marine ranches may face.
(3) Screening and screening of suitable sea areas
In 2015, the Group participated in the Aquaculture Environmental Management Project (EAG) in cooperation between the Norwegian Institute of Oceanography and the Yellow Sea Fisheries Research Institute. In 2015, the project completed the high-precision (1km) hydrodynamic model of the Yellow Sea (data from the international public database), and from 2016 to 2017, the model was verified through measured data for two consecutive years. This model can simulate the changes in hydrodynamics in the bottom sowing area of Zhangzidao Island, and simulate the drifting path of particles with the current of water, providing basic support for the scientific planning of marine ranches.
(1) Hydrodynamic simulation of the bottom sowing area of the marine ranch
In 2016 and August 2017, within the time range of cold water mass formation, two sets of monitoring equipment were placed on Zhangzidao to observe the data for 40 days, which was verified with the model simulation data, and the measured data were consistent with the model. The model can record the current data of the bottom water of Zhangzidao on average every hour, and the results show that Zhangzidao is in the Yellow Sea seasonal circulation area, and the underlying ocean current is active.
(2) The drifting path of particles with the current of water
Particles are placed on each grid in the simulated sea area, and the particles are simulated with the bottom current for 10 days, which can simulate the drift of substances (bait, juvenile shellfish, disease spread, etc.), nutrition, and plankton, pollution spread. It was found that the closer it was to the reef near ZhangziDao, the fewer particles remained; the more concentrated the particles were in the southeast and northwest of Zhangzidao. Areas with no or small amount of red particles indicate that the flow of seawater is more sufficient, the faster the exchange of bait and nutrient salts, and the simulation results show that the water flow and bait exchange around the near-shore island reef of Zhangzidao are faster and more suitable for bottom sowing, while the water flow exchange in the southeast and northwest of Zhangzidao is relatively small.
Based on the results of the company's Ezo scallop stock inventory at the end of 2017, it is shown that the relatively stable area of the inventory is basically consistent with the core right confirmation area, the stable production area of the past year and the suitable breeding area of the Yellow Sea Dynamic Model before the deep-water development of Zhangzidao in 2009. Therefore, suitable constituencies are crucial for the survival of bottom-sown Ezo scallops, and the preliminary results of the analysis provide technical support for the next step of marine ranch planning, as shown below:
Particle drift location and shellfish survey survival stability area, Zhangzidao 2009 before the development of deep water to confirm the bottom sowing area superposition map
(Representing the relatively stable area of the inventory of this inventory)
<b>(4) Ecological capacity assessment of the North Yellow Sea</b>
The ecological capacity assessment of the North Yellow Sea was funded by the Marine Ranch Research Center and commissioned by the Yellow Sea Fisheries Research Institute of the Chinese Academy of Fisheries Sciences to conduct research on the horizontal topic of "Ecological Fisheries Special Project", and the relevant research results have been published. Members of the research group (Zhang Jihong et al., 2017) pointed out that the restriction of food in the Changhai sea from September 15 to June 20 of the following year was stronger than the restriction of water temperature, and it was inferred that the cultivation density of Ezo scallops in the Changhai sea was too large, which may exceed the aquaculture capacity of the sea area.
Members of the research group (Wu Wenguang et al., 2018) pointed out that the spatial distribution trends of the total chlorophyll a and the concentrations of three granular phytoplankton are similar, and the high-value areas all appear in the sea area of Monty Python Island, and the low-value areas all appear in the southern sea area of Zhangzi Island, and the surface layer is higher than the bottom layer, and the sea area of Python Island is geographically north, and its temperature and nutrient salt levels are overall higher than that of Zhangzidao Sea, which causes the concentration level of chlorophyll a of phytoplankton plants to be higher than that of Zhangzidao Sea. This shows that temperature and nutrient salts are important factors affecting the spatial distribution of phytoplankton granules in Zhangzidao and adjacent waters.
Regarding the assessment of the ecological capacity of the North Yellow Sea, it is predicted that the bottom-sown sea area of 5 million mu in the North Yellow Sea may exceed the ecological capacity. Considering the biological factors of nutrient salt and bait, the sea area around ZhangziDao is in better condition than other parts of the sea, and it is recommended to retain it as an increased breeding area for Ezo scallops.
In summary
The construction of marine ranches is a long-term systematic project. At present, the construction mode and standard based on the ecosystem level are still in the exploration stage, and the basic science of the ocean is far behind the agricultural science on land, and it cannot support the success of 100% or a large proportion of the development and operation of marine ranches, and it is necessary to continuously carry out innovative exploration and industrial practice.
Risk assessment and applicability management for the construction of marine ranches will also accompany the entire process of marine ranch construction. The collection and analysis of ecological environment data is a cognitive mode for the external environment of scallops and other increased organisms, but the production mode of bottom sowing is greatly dependent on the external ecological environment, affected by global warming, the lagging effect of El Niño phenomenon, the increase in sea temperature and other large ecological environments, and the shellfish breeding areas in the coastal waters of the North Yellow Sea show abnormal phenomena such as reduced precipitation, low nutrient salts, and less phytoplankton. The identification and prevention and control of marine ecological environment risks is still a huge innovative project, which requires the company to continuously establish and improve risk prevention and control measures, improve the technical level of marine ranch construction, and gradually establish and improve the management standards of marine ranching.
<b>Question six</b>
According to media reports, your company has "employees guarding and stealing, and the company's assets have been seriously lost." Please explain whether your company has established a corresponding internal control system in procurement business, asset management, sales business, etc., as well as the specific implementation and effectiveness of the above system, and please check whether your company has any situations of employees encroaching on the company's property as described in the media, and explain it in detail.
<b>Reply</b>
In terms of procurement, the company has formulated a procurement management system including "Supplier Management Control Procedures", "Procurement Management Control Procedures", "Supplier Audit Management Regulations", "Marine Ranch Business Group Seed Acquisition Management Regulations and Acceptance Standards", etc., standardizing the responsibilities and approval authority of requisition, approval, purchase, acceptance, payment, post-procurement evaluation and other links; in terms of asset management, the company has formulated "Asset Management Control Procedures", "Property Inventory System", "Inventory Management Control Procedures" The asset management system, including and so on, standardizes the responsibilities and approval authority of assets such as subscription, warehousing, collection, payment, daily management, etc., and adopts measures such as division of duties, regular inventory of physical objects, property records, account verification, impairment confirmation, property insurance, etc. to effectively protect the safety of assets; The sales business system, including customer management control procedures and product traceability and recall management control procedures, clarifies pricing principles, customer management, credit standards and conditions, collection methods, and the responsibilities and authorities of institutions and personnel involved in sales business.
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