SZSE: 000895 NASDAQ: SFD 年報 2024 年報 目錄 | 公司資料 | 2 | | --- | --- | | 業績摘要 | 4 | | 主席報告 | 5 | | 董事及高級管理層履歷 | 8 | | 業務回顧 | 14 | | 財務回顧 | 21 | | 企業管治報告 | 31 | | 董事會報告 | 45 | | 獨立核數師報告 | 56 | | 綜合損益及其他全面收益表 | 61 | | 綜合財務狀況表 | 63 | | 綜合權益變動表 | 65 | | 綜合現金流量表 | 67 | | 綜合財務報表附註 | 70 | | 五年摘要 | 186 | | 詞彙 | 187 | 公司資料 公司法定名稱 萬洲國際有限公司 上市地點及股份代號 本公司股份於二零一四年八月五日在聯交所主板上市 股份代號：288 公司網站 www.wh-group.com 董事 執行董事 萬隆先生（主席） 郭麗軍先生（行政總裁） 萬宏偉先生（副主席） 馬相傑先生（雙匯發展總裁） Charles Shane SMITH先生 （史密斯菲爾德總裁兼行政總裁， 自二零二五年一月二十八日起辭任董事） 非執行董事 焦樹閣 ...

Financial Performance - WH Group Limited reported a revenue of $25,941 million for the year ending December 31, 2024, a decrease of 1.1% compared to $26,236 million in 2023[3][16]. - The company experienced a 3.0% decline in meat product sales, totaling 3,100 thousand tons, and a 4.9% decrease in pork sales, totaling 3,765 thousand tons[2][4]. - Operating profit increased by 63.4% to $2,404 million, up from $1,471 million in the previous year[4][16]. - Profit attributable to the company's owners rose to $1,471 million, a 142.7% increase from $606 million in 2023[4][16]. - Basic earnings per share increased to 11.47 cents, compared to 4.72 cents in the previous year, reflecting a significant growth[4][16]. - Total revenue for the year ended December 31, 2024, was $25,941 million, a slight decrease of 1.1% compared to $26,236 million in 2023[82]. - Gross profit increased to $5,200 million, up 1.7% from $5,125 million in the previous year[82]. - Net profit for the year was $1,853 million, representing a significant increase of 115.1% from $860 million in 2023[84]. - Operating cash flow for the year was $2,519 million, an increase of 55.7% compared to $1,617 million in 2023[89]. Revenue Breakdown - In 2024, the company's revenue decreased by 1.1% to $25.941 billion, primarily due to a decline in meat products and pork sales, partially offset by price increases[17]. - Revenue from meat products was $13,655 million, up from $13,523 million in 2023, indicating an increase of about 1%[98]. - Revenue from pork decreased to $10,343 million from $10,810 million, reflecting a decline of approximately 4.3%[98]. - In China, total segment revenue was $9,359 million, with a segment profit of $943 million[103]. - North America generated total segment revenue of $17,065 million, with a segment profit of $1,187 million[103]. - Europe contributed total segment revenue of $4,508 million, with a segment profit of $274 million[103]. Operational Efficiency - The company's total assets return rate improved to 9.5% in 2024, up from 4.4% in 2023, indicating enhanced operational efficiency[29]. - The current ratio increased to 1.9 in 2024, reflecting improved liquidity compared to 1.6 in 2023[29]. - The company recorded an operating profit of $356 million in the pork segment, a turnaround from an operating loss of $480 million in 2023, primarily due to improved performance in North America[25]. - The company has significantly improved its pork business performance in the U.S., driven by favorable market conditions compared to 2023 and a series of operational reforms in pig farming[79]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.18 per share in addition to the interim and final dividends[4]. - The company plans to distribute a special cash dividend of HKD 0.18 per share, totaling approximately HKD 23.09 billion (about $2.97 billion) to shareholders[46]. - The board proposed a final dividend of HKD 0.40 per share for the year ending December 31, 2024, pending shareholder approval, resulting in a total dividend of HKD 0.50 per share for the year, compared to HKD 0.30 per share in 2023[135]. - The interim dividend of HKD 0.10 per share was paid on September 25, 2024, contributing to the total dividend amount[135]. Capital Expenditures and Investments - Capital expenditures for 2024 are projected at $707 million, a decrease of 12.5% from $812 million in 2023[50]. - The company completed the purchase of a high-end dry sausage production facility in Tennessee in July 2024, aimed at enhancing its value-added meat products business[59]. - The acquisition of Argal Alimentación, S.A. was completed in March 2024, with the company holding a 50.1% stake[61]. - The company established Murphy Family Farms LLC, expected to produce approximately 3.2 million pigs annually for its U.S. pork business[56]. Financial Position and Liquidity - As of December 31, 2024, the company had cash and bank balances of $2.055 billion, up from $1.156 billion in 2023[33]. - The company's net cash inflow from operating activities for 2024 was $2.519 billion, an increase from $1.617 billion in 2023, primarily due to significant profit growth[36]. - The total outstanding loans as of December 31, 2024, amounted to $3.330 billion, compared to $3.252 billion in 2023[41]. - The company's liquidity ratio as of December 31, 2024, was 1.9, an increase from 1.6 in 2023[33]. - The financial cost for 2024 decreased by 13.0% to $147 million, with an average interest rate on outstanding loans of 2.95%[48]. Sustainability and Corporate Responsibility - The company is committed to sustainable development, continuously monitoring greenhouse gas emissions across its operations and enhancing energy efficiency[72]. - The company has been recognized as a component of the Hang Seng Sustainable Development Index and received an A+ rating, reflecting its performance in sustainability[73]. Market Strategy and Future Outlook - The company aims to achieve substantial profit growth in 2024, with meat products being the core business and expected to deliver the best operational performance in history[79]. - The company will continue to implement the "two adjustments and one control" strategy, focusing on structural adjustments, price adjustments, and cost control to enhance competitiveness in the meat products sector[79]. - The company plans to adapt to geopolitical risks and macroeconomic changes by optimizing its supply chain and advancing diversification efforts[79]. - The company is focused on expanding its market network and enhancing its competitive advantages to ensure steady growth in its meat products business[79].

Group 1 - The core point of the article is that WH Group has announced the latest information regarding the proposed spin-off and independent listing of Smithfield Foods, which has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol "SFD" [1] - The offering of Smithfield is expected to commence when market conditions permit and is subject to the SEC declaring the registration statement effective [1] - As of the date of the announcement, the number and amount of Smithfield shares to be offered and sold in the offering have not yet been determined [1]

Company Overview - Current stock price of WH Group (0288 HK) is HKD 6 43 with a total market capitalization of HKD 82 5 billion [2] - The stock has a 52-week price range of HKD 6 50 to HKD 4 41 and an average daily trading volume of HKD 172 6 million over the past 3 months [2] Smithfield Spin-off and Valuation Potential - WH Group plans to spin off its US subsidiary Smithfield for an independent listing on a US exchange with an expected issuance of up to 20% of shares [4] - Post-listing WH Group will retain at least 80% ownership in Smithfield which will continue to be fully consolidated in WH Group's financials [4] - Smithfield's minimum valuation is expected to be no less than its net asset value of USD 5 38 billion as of September 30 [4] - WH Group shareholders will receive a dividend in kind equivalent to 0 35% to 0 45% of Smithfield's enlarged issued share capital [4] - Smithfield's revenue and net profit for 2022 2023 were USD 16 2 billion USD 14 6 billion and USD 724 million USD -70 million respectively [5] - For the first 9 months of 2024 Smithfield reported revenue and profit of USD 10 19 billion and USD 61 million respectively with a post-tax loss of USD 10 million [5] - Smithfield's minimum valuation implies a P E ratio of 8x compared to Tyson and Hormel's 14x P E [5] Financial Performance - WH Group's revenue for 2020 2021 2022 2023 and H1 2024 were USD 25 589 million USD 27 293 million USD 28 136 million USD 26 236 million and USD 12 293 million respectively [6] - Net profit attributable to shareholders for the same periods were USD 828 million USD 1 068 million USD 1 370 million USD 629 million and USD 784 million [6] - Net profit margins were 3 2% 3 9% 4 9% 2 4% and 6 4% respectively [6] - P E ratios were 13x 10x 8x 17x and 8x respectively [6] Industry and Market Context - US hog prices have shown a significant year-over-year recovery in 2024 [9] - Soybean meal prices in the first 10 months of 2024 decreased by 28% year-over-year [12] - Corn prices in the first 10 months of 2024 decreased by 16% year-over-year [12] Peer Comparison - WH Group's 2024E revenue and net profit are forecasted at USD 25 7 billion and USD 1 42 billion respectively with a P E of 7x [12] - Shuanghui Development's 2024E revenue and net profit are forecasted at USD 5 89 billion and USD 5 1 billion respectively with a P E of 15x [12] - Tyson Foods' 2024E revenue and net profit are forecasted at USD 53 6 billion and USD 1 22 billion respectively with a P E of 18x [12] - Hormel's 2024E revenue and net profit are forecasted at USD 12 2 billion and USD 930 million respectively with a P E of 18x [12]

Financial Performance - Revenue declined by 3.2% to $18,866 million from $19,488 million[1] - Operating profit increased by 71.4% to $1,795 million from $1,047 million[1] - Profit attributable to the company's owners rose by 90.0% to $1,081 million from $569 million[1] - Basic earnings per share increased by 90.0% to 8.43 cents from 4.43 cents[1] - The total assets increased to $19,933 million from $19,179 million year-on-year[1] - The financial data for the nine months ending September 30, 2024, has not been audited but has been reviewed by the Board's Audit Committee[9] Market Trends - Meat product sales decreased by 4.4% and pork sales decreased by 7.6% compared to the previous year[1] - Average pig prices in China rose by 9.7% to RMB 16.91 per kg, while in the US, prices increased by 1.3% to $1.41 per kg[3] - In Europe, average pig prices decreased by 8.1% to €1.62 per kg due to increased production[3] Strategic Plans - The company expects core meat product business financial performance to remain strong, with significant growth in pork business financial performance anticipated[8] - The company plans to adjust product structure, expand sales networks, manage prices, and reduce costs to adapt to market changes[8] Leadership - The executive directors of the company include Mr. Wan Long, Mr. Guo Lijun, Mr. Wan Hongwei, Mr. Ma Xiangjie, and Mr. Charles Shane Smith[10] - The non-executive director is Mr. Jiao Shuge, while the independent non-executive directors are Mr. Huang Ming, Mr. Liu Zhantian, and Ms. Zhou Hui[10]

Financial Performance - Total revenue for the first half of 2024 was $12,293 million, a decrease of 6.3% compared to $13,116 million in the same period of 2023[7]. - Operating profit increased by 78.4% to $1,140 million, compared to $639 million in the same period of 2023[7]. - Profit attributable to shareholders before biological fair value adjustments increased by 81.2% to $694 million, with basic earnings per share rising to 5.41 cents from 2.99 cents[7]. - Pork revenue fell by 11.7% to $4.926 billion, with a significant drop of 16.4% in China attributed to lower slaughter volumes[17]. - The company recorded a total slaughter volume of 22.29 million pigs, a decrease of 12.2% compared to the previous period[16]. - The group’s net profit attributable to shareholders for the first half of 2024 was $784 million, up from $420 million in the same period of 2023, reflecting an increase of approximately 86.2%[78]. - The reported profit before tax for the group was $1,171 million for the first half of 2024, compared to $657 million in the same period of 2023, indicating a significant increase of approximately 78.2%[74]. - The company achieved significant profit growth during the review period, driven by favorable market conditions and operational reforms in pig farming[45]. Revenue Breakdown - The business in China accounted for 31.7% of total revenue and 39.2% of operating profit, down from 34.2% and 81.4% respectively in the previous period[8]. - The total revenue from the China segment was $4,322 million for the first half of 2024, down from $5,054 million in the same period of 2023, a decrease of about 14.5%[72]. - The U.S. and Mexico segment reported revenue of $6,674 million for the first half of 2024, compared to $7,008 million in the same period of 2023, a decline of approximately 4.8%[72]. - The Europe segment generated revenue of $1,724 million for the first half of 2024, a decrease from $1,623 million in the same period of 2023, representing an increase of approximately 6.2%[72]. Cost and Expenses - The company’s total compensation expenses for the review period were $2.009 billion, reflecting a 3.8% decrease due to effective cost control measures[28]. - Research and development expenses increased to $101 million in the first half of 2024, compared to $92 million in the same period of 2023, reflecting a growth of approximately 9.8%[74]. - The group incurred $277 million in property, plant, and equipment additions for the six months ended June 30, 2024, compared to $296 million for the same period in 2023[80]. Cash Flow and Liquidity - As of June 30, 2024, the company had cash and bank balances of $797 million, down from $1.156 billion as of December 31, 2023[21]. - The company maintained a liquidity ratio of 1.7 times as of June 30, 2024, compared to 1.6 times as of December 31, 2023[21]. - The net cash flow from operating activities was $689 million, a significant increase from $2 million in the same period of 2023[59]. - The company reported a cash and bank balance of $797 million, with bank overdrafts amounting to $27 million[60]. Debt and Financing - The total outstanding loans amounted to $3.397 billion as of June 30, 2024, an increase from $3.252 billion as of December 31, 2023[24]. - The company’s debt-to-equity ratio was 31.3% as of June 30, 2024, compared to 30.5% as of December 31, 2023[26]. - Financial costs decreased by 12.9% to $74 million during the review period, benefiting from a decline in average loan interest rates[27]. - Approximately 93.3% of the company's loans were at fixed interest rates as of June 30, 2024, up from 88.9% on December 31, 2023, indicating a strategy to manage interest rate risk[40]. Biological Assets and Inventory - The fair value of biological assets as of June 30, 2024, was $1.388 billion, an increase from $1.363 billion on December 31, 2023, with a net gain of $96 million during the review period[29]. - The fair value of current biological assets was $1,158 million as of June 30, 2024, compared to $1,149 million as of December 31, 2023[86]. - Total inventory as of June 30, 2024, was $2,921 million, slightly up from $2,919 million as of December 31, 2023[88]. Acquisitions and Investments - The company completed the acquisition of a high-end dry sausage production facility in Tennessee from Cargill Meat Solutions Corporation in July 2024, aimed at enhancing its value-added meat products business[30]. - In March 2024, the company acquired 50.1% of Argal Alimentación, S.A., a Spanish producer of processed meats, establishing a solid platform for growth in Spain and Europe[31]. - The company acquired 100% of Goodies Meat Production S.R.L. in February 2023, contributing $13 million to revenue and $1 million to consolidated profit for the six months ending June 30, 2023[104][105]. Shareholder Information - The company declared an interim dividend of HKD 0.10 per share, up from HKD 0.05 in the previous period[7]. - The interim dividend is expected to be paid on September 25, 2024, to shareholders listed as of August 30, 2024[138]. - The company’s major shareholders include Mr. Wan with a 27.41% stake and Mr. Ma with a 39.20% stake, collectively controlling significant voting rights[140]. Legal and Compliance - Smithfield paid a total of approximately $194 million to settle all collective claims related to antitrust litigation, with 29 individual cases still pending[42]. - The company plans to actively defend against remaining claims in the Maxwell lawsuit[116]. - The group intends to vigorously contest the antitrust allegations in the ongoing litigation[114]. Strategic Focus and Future Outlook - The company is focused on product structure adjustments, expanding sales networks, managing prices, and cost savings to adapt to changing market conditions[45]. - The company continues to explore opportunities for market expansion and potential acquisitions to enhance its growth strategy moving forward[59]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2025[165].

Financial Performance - Revenue declined by 6.3% to $12.293 billion, primarily due to lower sales volumes[8] - Profit attributable to the company's owners rose by 81.2% to $694 million, with basic earnings per share increasing to 5.41 cents[1] - The company experienced significant profit growth during the review period, driven by favorable market conditions and operational reforms in pig farming, leading to improved performance in the US pork business[35] - The net profit for the six months ended June 30, 2024, was $892 million, an increase of 65.0% from $540 million in the same period of 2023[38] - Basic earnings per share for the six months ended June 30, 2024, were 6.11 cents, compared to 3.27 cents for the same period in 2023[38] - The group's profit before tax for the six months ended June 30, 2024, was $1,171 million, compared to $657 million in the same period of 2023, indicating a significant increase[49] Sales and Production - Meat product sales decreased by 6.0% to 1,501 thousand tons, while pork sales decreased by 10.0% to 1,823 thousand tons[1] - Total pig slaughter volume decreased by 12.2% to 22.29 million heads, with a notable 31.9% drop in China attributed to intense market competition and weak consumer demand[10] - Total pork imports into China decreased by 27.3% to 1.11 million tons[5] - The pork business accounted for 54.3% of the group's revenue and 47.7% of operating profit during the review period[3] - Revenue for meat products decreased by 2.4% to $6.491 billion, with a significant decline of 13.4% in China due to lower sales and unfavorable currency conversion[9] - The total revenue for the meat products segment in China reached $3,943 million, while the pork segment generated $2,710 million, contributing to a total revenue of $6,674 million for the region[47] Operating Profit and Costs - Operating profit increased by 78.4% to $1.140 billion, driven by the turnaround in the pork business[8] - Operating profit for meat products increased by 6.5% to $1.137 billion, driven by a 70.3% increase in Europe due to improved product mix and the acquisition of Argal[9] - Operating profit for pork products turned positive at $95 million, a significant improvement from an operating loss of $409 million in the previous period, mainly due to reduced losses in the U.S. and Mexico[11] - Financial costs decreased by 12.9% to $74 million due to a decline in average loan interest rates, with an average interest rate of 3.1% as of June 30, 2024[19] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $11,865 million, up from $11,856 million as of December 31, 2023[39] - The company’s total liabilities increased to $4,658 million as of June 30, 2024, from $4,037 million at the end of the previous period[40] - The company’s total equity as of June 30, 2024, was $10,770 million, an increase from $10,575 million as of December 31, 2023[40] - The debt-to-equity ratio and net debt-to-equity ratio as of June 30, 2024, were 31.3% and 23.9%, respectively, compared to 30.5% and 19.6% as of December 31, 2023[18] Cash Flow and Investments - The company maintained a cash and bank balance of $797 million as of June 30, 2024, down from $1.156 billion at the end of 2023[14] - The company reported a net cash outflow from investing activities of $459 million for the six months ended June 30, 2024, compared to $363 million in the same period of 2023[41] - Capital expenditures for the six months ended June 30, 2024, totaled $349 million, with significant investments in production facilities in China, the U.S., and Europe[27] Acquisitions and Restructuring - The company completed the acquisition of a high-end dry sausage production facility in Tennessee, expected to enhance its growth strategy in value-added meat products[22] - The acquisition of 50.1% of Argal Alimentación, S.A. was completed in March 2024, establishing a solid platform for growth in Spain and Europe[23] - The company incurred exit costs of $10 million related to restructuring in Missouri and Utah, down from $19 million in the previous period[24] Risk Management and Compliance - The company has established a risk management committee to oversee the development and implementation of its risk management system[28] - The company is continuously monitoring foreign exchange risks and hedging against significant risks as necessary[30] - The company has established environmental policies and procedures to comply with local laws and regulations, ensuring the management of operational risks related to its biological assets[59] - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and internal controls[67] Dividends and Shareholder Returns - The company declared a final dividend of HK$0.25 per share for the year ended December 31, 2023, consistent with the previous year, and an interim dividend of HK$0.10 per share for the six months ended June 30, 2024, up from HK$0.05 per share in the prior year[56] - The company reported a mid-term dividend of HKD 0.10 per share for the six months ending June 30, 2024, compared to HKD 0.05 per share in 2023, totaling approximately HKD 12.83 billion (about USD 1.64 billion) for shareholders[70] Employee and Compensation - The company employed approximately 101,000 employees as of June 30, 2024, with total compensation expenses amounting to $2.009 billion, a decrease of 3.8% compared to the previous period[20]

Sales Performance - Meat product sales decreased by 4.1% to 786,000 tons, while pork sales fell by 7.8% to 941,000 tons compared to the same period last year[1]. - Revenue declined by 8.3% to $6,181 million, down from $6,743 million in the previous year[1]. - Pork revenue decreased by 13.7% due to lower sales volume and average selling prices, but operating losses improved from $170 million to $27 million[6]. Profitability - Operating profit increased by 37.3% to $501 million, compared to $365 million in the same period last year[1]. - Profit attributable to the company's owners rose to $301 million, with basic earnings per share increasing to 2.35 cents from 1.36 cents year-on-year[1]. - The company reported a significant increase in operating profit for meat products in China by 10.1% due to favorable raw material costs[5]. Market Conditions - Average pig prices in China decreased by 5.1% to approximately $2.07 per kg, while in the US, prices slightly dropped by 0.8% to $1.26 per kg[2]. - The company expects continued positive impacts from recent reforms in pig farming operations, despite potential macroeconomic challenges affecting consumer confidence[7]. Strategic Plans - The company plans to adjust product structure, expand sales networks, manage prices, and reduce costs to adapt to changing market conditions[7]. - Total assets increased to $19,871 million from $19,179 million, while equity attributable to owners decreased slightly to $9,781 million[1].

Financial Performance - Total revenue for 2023 decreased by 6.8% to $26,236 million compared to $28,136 million in 2022[4]. - Operating profit fell by 29.7% to $1,471 million from $2,093 million year-on-year[5]. - Profit attributable to shareholders decreased by 56.8% to $606 million, with basic earnings per share dropping to 4.72 cents from 10.92 cents[5]. - In 2023, the total revenue of the company decreased by 6.8% to $26.236 billion, primarily due to declines in sales volume and average selling prices of meat products and pork[39]. - The operating profit dropped by 29.7% to $1.471 billion, mainly due to the pork segment recording an operating loss compared to a profit in 2022[40]. - Pork revenue decreased by 8.4% to $10.810 billion, reflecting lower sales volume and prices[39]. - The company reported a net profit for the year of $860 million, a significant decrease of 48.9% compared to $1,650 million in the previous year[161]. - The company experienced a foreign exchange loss of $354 million, impacting overall financial performance[161]. - The total comprehensive income for the year was $954 million, a decrease of 30.2% from $1,365 million in 2022[162]. Market and Sales Performance - Pork sales volume declined by 1.5% to 3,959 thousand tons, while meat product sales volume decreased by 4.4% to 3,196 thousand tons[4]. - The average pork price in China for 2023 was RMB 15.40 per kilogram (approximately $2.17), down 19.0% from 2022[34]. - In the U.S., the average pork price for 2023 was $1.36 per kilogram, a decrease of 17.1% year-over-year[35]. - The company's meat products revenue in Europe increased by 19.9% to $1.547 billion, driven by sales growth and price adjustments[42]. - The total pork import volume in China for 2023 was 1.55 million tons, a decline of 11.7% compared to 2022[34]. - The total pork production in the EU decreased by 7.3% in 2023, primarily due to African swine fever impacts[37]. Strategic Initiatives - The company plans to focus on optimizing the supply chain and reducing pig farming scale while enhancing slaughtering and processing capabilities[8]. - The company aims to expand its market network and enhance operational efficiency through a strategy of "industrialization, diversification, internationalization, and digitization"[8]. - The company anticipates a more stable economic environment in 2024, with potential growth in consumer demand as inflation eases[8]. - The management will closely monitor macroeconomic changes and market trends to navigate challenges effectively[8]. Leadership and Governance - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[9]. - Wan Long has over 50 years of experience in the meat processing industry and has led the company to become an international entity with operations across multiple continents[9]. - The company has a strong leadership team with extensive experience in the meat processing sector, contributing to its growth and market expansion[12]. - The company has a robust governance structure with a mix of executive and independent directors to ensure effective oversight[9]. - The board includes experienced members with extensive backgrounds in finance and management across various industries, enhancing corporate governance[15][16][17]. Financial Management - As of December 31, 2023, the company had cash and bank balances of $1.156 billion, down from $1.394 billion in 2022[51]. - The company maintained an unused bank financing amount of $5.569 billion as of December 31, 2023, compared to $5.725 billion in 2022[51]. - The net cash generated from operating activities in 2023 was $1.617 billion, down from $1.803 billion in 2022, primarily due to decreased profitability[53]. - The total outstanding principal of loans as of December 31, 2023, was $3.252 billion, a decrease from $3.395 billion in 2022[55]. - The debt-to-equity ratio and net debt-to-equity ratio as of December 31, 2023, were 30.5% and 19.6%, respectively, compared to 32.3% and 18.9% in 2022[59]. Corporate Social Responsibility and Sustainability - The company is currently facing 34 individual cases related to the antitrust lawsuits, which are still under trial[73]. - In 2023, the company was selected as a constituent of the Hang Seng Sustainable Development Index and received an A+ rating, while MSCI rated it BBB in ESG performance[74]. - The company is actively monitoring its operational impact on the environment and community, focusing on sustainable protein options for global consumers[74]. - The company has implemented sustainable development measures under the guidance of its Environmental, Social, and Governance (ESG) committee[74]. Shareholder Engagement and Dividends - The board proposed a final dividend of HK$0.25 per share, bringing the total dividend for the year to HK$0.30 per share[8]. - The company expects to declare interim and final dividends totaling no less than 30% of the annual profit attributable to shareholders[115]. - The company emphasizes the importance of annual and special general meetings as key events for shareholder engagement[105]. Accounting and Financial Reporting - The company is committed to preparing financial statements that are true and fair in accordance with International Financial Reporting Standards[157]. - The independent auditor for the review period was Ernst & Young, responsible for auditing the company's annual consolidated financial statements[103]. - The company has established internal policies and information disclosure management systems to handle and disclose inside information appropriately[102]. - The company has adopted the acquisition method for business combinations, measuring the transferred consideration at fair value on the acquisition date[184]. Employee and Workforce Management - The company employed approximately 101,000 employees as of December 31, 2023, with a focus on attracting and retaining a diverse workforce[63]. - The company maintains a gender diversity ratio of 59% male to 41% female in its workforce as of December 31, 2023[93].

Financial Performance - Total revenue for 2023 decreased by 6.8% to $26.236 billion, down from $28.136 billion in 2022[1] - Operating profit fell by 29.7% to $1.471 billion, compared to $2.093 billion in the previous year[1] - Profit attributable to the company's owners before biological fair value adjustment dropped by 56.8% to $606 million, down from $1.401 billion in 2022[1] - The company reported a revenue growth rate of -6.8% in 2023, with an operating profit margin of 5.6%[15] - The company reported a net profit for the year of $860 million, down from $1,650 million in the previous year, reflecting a decline of 47.9%[46] - Basic earnings per share decreased to 4.90 cents from 10.68 cents, a drop of 54.3% year-over-year[47] - The total reportable segment profit for 2023 was $1,471 million, down from $2,093 million in 2022, reflecting a decrease of approximately 29.7%[63] - The company reported a pre-tax profit of $1,057 million for 2023, a significant decrease from $2,132 million in 2022, representing a decline of about 50.5%[61] Market Performance - Sales volume of meat products and pork decreased by 4.4% and 1.5% respectively[1] - The Chinese market accounted for 33.3% of total revenue and 64.4% of operating profit in 2023[3] - The U.S. and Mexico contributed 54.0% of total revenue and 22.4% of operating profit[3] - Average pig prices in China decreased by 19.0% to RMB 15.40 per kilogram in 2023[5] - U.S. pork export volume increased by 11.6% in 2023, with major destinations including Mexico, South Korea, and Canada[6] - European Union pork production decreased by 7.3% in 2023, primarily due to African swine fever impacts[7] - The average EU pork price rose by 22.5% to €2.29 per kilogram in 2023[7] - In 2023, the total revenue for meat products decreased by 7.1% to $13.523 billion, with China down 7.8%, the US down 10.6%, and Europe up 19.9%[10] - Pork revenue decreased by 8.4% to $10.810 billion in 2023, with China down 13.7%, the US and Mexico down 8.9%, and Europe up 20.0%[11] Operational Metrics - The total slaughter volume of pigs in 2023 was 49.169 million heads, a 0.5% increase from 2022, with China up 12.9% and the US and Mexico down 2.7%[11] - Operating profit for meat products in 2023 was $2.050 billion, a slight decrease of 0.7% from 2022, with China down 3.4%, the US up 1.3%, and Europe up 2.1%[10] - The operating loss for pork in 2023 was $480 million, compared to an operating profit of $30 million in 2022, primarily due to unfavorable market conditions in the US[12] - Other businesses generated revenue of $1.903 billion in 2023, an increase of 6.9% from 2022, mainly due to the expansion of poultry operations[13] Financial Position - The current ratio remained stable at 1.6, while the debt-to-equity ratio improved to 30.5%[15] - The return on total assets decreased to 4.4% in 2023, down from 8.4% in 2022[15] - As of December 31, 2023, the company had cash and bank balances of $1.156 billion, down from $1.394 billion in 2022[17] - The company's net cash inflow from operating activities in 2023 was $1.617 billion, a decrease from $1.803 billion in 2022[19] - The total outstanding principal of loans as of December 31, 2023, was $3.252 billion, compared to $3.395 billion in 2022[22] - The company's capital expenditures for 2023 amounted to $812 million, down from $975 million in 2022[27] - The debt-to-equity ratio as of December 31, 2023, was 30.5%, compared to 32.3% in 2022[25] - The average interest rate on outstanding loans as of December 31, 2023, was 3.2%, down from 4.0% in 2022[26] - The company employed approximately 101,000 employees as of December 31, 2023, with 46,000 in China, 38,000 in the US and Mexico, and 17,000 in Europe[28] - The company's total compensation expenses in 2023 were $4.110 billion, an increase of 1.2% from 2022[29] Investments and Acquisitions - The company entered into a share purchase agreement to acquire 50.1% of Argal Alimentación, S.A. in Spain, expected to be completed in the short term[31] - In February 2023, the company completed the acquisition of 100% of Goodies Meat Production S.R.L. in Romania, enhancing its existing business in Europe[32] - The company incurred exit and restructuring costs of $54 million in 2023, compared to $151 million in 2022, related to the closure of processing facilities in California[33] - The company recognized a pre-tax disposal loss of $12 million from the exit of Norson in Mexico as part of its investment strategy[35] - The sale of Saratoga generated $575 million in proceeds, with a pre-tax profit of $414 million, allowing the company to focus on its strategic business[36] Sustainability and Corporate Responsibility - The company continues to be recognized for its sustainability efforts, maintaining an A+ rating in the Hang Seng Sustainable Development Index[43] - The company is actively addressing climate risks and has initiated carbon footprint assessments across its supply chain[43] - The company is focusing on product structure adjustments and expanding its sales network to mitigate the impact of macroeconomic challenges on consumer demand[44] Legal and Regulatory Matters - There are currently 34 individual cases pending against the company related to antitrust claims, which the company plans to actively defend[42] - Smithfield has paid a total of $194 million to settle all collective claims related to antitrust lawsuits[42] Shareholder Information - The company declared a final dividend of $0.25 per share for the year ending December 31, 2023, compared to $0.25 per share in 2022, maintaining the same level[69] - The group reported a total of $490 million in dividends declared for 2023, an increase from $311 million in 2022, representing a growth of approximately 57.7%[69] - The board proposed a final dividend of HKD 0.25 per share for the year ending December 31, 2023, pending shareholder approval, bringing the total dividend for the year to HKD 0.30 per share[84] - The interim dividend of HKD 0.05 per share was paid on September 29, 2023, maintaining the total dividend from the previous year[84] - The company will suspend shareholder registration from May 6, 2024, to May 9, 2024, for the annual general meeting voting eligibility[85] - The registration suspension for the entitlement to the proposed final dividend will occur from May 17, 2024, to May 21, 2024[86] - The annual general meeting is scheduled for May 9, 2024[87] - The company has maintained the required public float as per listing rules[88]