Core Viewpoint - The financial reports of major food and beverage companies in China for 2024 show modest revenue growth, indicating a competitive landscape where established players are adapting to market changes and consumer preferences [1][4][9]. Group 1: Revenue Performance - Unified Enterprises China reported total revenue of 30.332 billion yuan, a year-on-year increase of 6.1% [1]. - Nongfu Spring's total revenue reached 42.896 billion yuan, growing by 0.5% year-on-year [1]. - Master Kong's revenue was 80.651 billion yuan, with a growth of 0.3% [1]. - China Foods reported 41.492 billion yuan in revenue, up 0.21% year-on-year [1]. - Haitian Flavoring's revenue was 26.901 billion yuan, reflecting a 9.53% increase [1]. - The revenue growth of these companies translates to significant absolute increases, with Unified Enterprises China adding 1.741 billion yuan, Master Kong adding 233 million yuan, and Nongfu Spring adding 229 million yuan compared to 2023 [1]. Group 2: Business Adaptation - Nongfu Spring experienced a 21.3% decline in its core bottled water segment, which dropped from 47.5% to 37.2% of total revenue, while its tea beverage segment grew by 32.3%, increasing its share from 29.7% to 39% [3][4]. - The shift in revenue sources illustrates how companies like Nongfu Spring are adapting to market fluctuations by reallocating resources to more profitable segments [3][4]. Group 3: Industry Trends - Companies with annual revenues exceeding 20 billion yuan are increasingly diversifying their business lines to maintain growth and fend off competition [4][5]. - The average revenue of companies in this category is significant, with the 500th ranked company on the China Private Enterprises 500 list having a revenue of 26.3 billion yuan [5]. - The historical context shows that these companies have evolved over decades, adapting to market changes and consumer demands, which has allowed them to emerge as industry leaders [5][6]. Group 4: Growth Strategies - The transition from "quantity" to "quality" in the consumer market from 2013 to 2024 highlights the need for companies to innovate and adapt to changing consumer preferences [8][9]. - The overall revenue of major food and beverage companies has shown slight fluctuations but maintains a growth trend, indicating resilience in the face of market challenges [9][10]. Group 5: Long-term Growth Metrics - The compound annual growth rate (CAGR) for major companies from 2013 to 2023 shows varied performance, with Nongfu Spring leading at 15.39% and others like Wahaha and China Wangwang showing negative growth [17][19]. - The average CAGR for the 14 companies analyzed is 6.48%, comparable to global top-tier companies during the same period [19][20]. Group 6: Market Expansion - Companies are increasingly looking to international markets for growth, with Wan Zhou International's acquisition of Smithfield Foods exemplifying a successful global expansion strategy [63]. - Mengniu's acquisition of the Southeast Asian ice cream brand Aice demonstrates the potential for growth in international markets [64].

Core Viewpoint - The A-share and Hong Kong stock markets experienced significant declines, with major indices dropping over 2% to 3% amid ongoing market volatility and external pressures [2][3][5]. Market Performance - As of the report, the Shanghai Composite Index fell by 2.22% to 3075.75, while the Shenzhen Component Index dropped by 3.04% to 9138.12. The ChiNext Index also saw a decline of over 3% [2][3]. - In the Hong Kong market, the Hang Seng Index opened down by 3.81%, and the Hang Seng Tech Index fell by over 5%. Notably, the pharmaceutical and consumer sectors faced significant losses, with companies like Wan Zhou International and WuXi Biologics experiencing declines of nearly 10% and over 8%, respectively [5]. Corporate Actions - Multiple companies announced share buyback and stake increase plans, with at least 56 A-share listed companies releasing such announcements between April 7 and 8. This included nearly 140 companies disclosing share repurchase plans [15]. - China Aluminum Group and China Minmetals Group both announced plans to increase their stakes in listed companies, with China Aluminum planning to invest between 1 billion to 2 billion RMB [14]. Government and Institutional Support - The "national team" has been actively buying ETFs to stabilize the market, with significant purchases reported from Central Huijin Investment and other state-owned entities [17][21]. - The People's Bank of China indicated readiness to provide sufficient re-lending support to Central Huijin, further emphasizing the commitment to market stability [17]. Investment Outlook - Analysts maintain a relatively optimistic outlook for the A-share market, suggesting that despite uncertainties from trade tensions, the influx of capital and institutional support could lead to a more stable market environment [23]. - The focus on high-quality and high-dividend assets is expected to prevail, with potential opportunities arising from recent market dips [23].

Summary of the Conference Call for Wan Zhou International & Shuanghui Development Industry and Company Overview - The conference call primarily discusses the performance and outlook of Wan Zhou International and Shuanghui Development in the meat processing industry, particularly focusing on the U.S. market and its various business segments [1][4]. Key Points and Arguments 2025 Business Outlook - Wan Zhou International anticipates growth in its U.S. pork business in 2025 despite rising hog prices, as production costs are expected to decrease. The company expects the hog farming segment to remain profitable due to favorable futures market conditions [3][4]. - The meat processing segment will face cost pressures but will respond through formula pricing adjustments, increasing self-owned capacity, and cost-saving measures [3][4]. - The company plans to reduce upstream capacity, with hog output expected to decrease from 17.5 million heads to 11.5 million heads, aiming for a future target of around 10 million heads [3][7]. Market Conditions - The U.S. protein supply shortage has led to high beef and chicken prices, which is expected to positively impact the sales of pork and its products in 2025 [5][4]. - The company will optimize production processes and enhance operational efficiency to improve profitability [5][4]. Strategic Developments - Wan Zhou International successfully listed Smithfield, leveraging capital markets for expansion and enhancing investor confidence through increased transparency [8][4]. - The company is focusing on industrialization, diversification, internationalization, and digitalization, with plans to compress hog farming scale and reduce the ratio of hog farming to slaughtering operations to below 30% [9][10]. Dividend Policy - The dividend payout ratio has been adjusted from 30% to 50%, with a commitment to maintain this policy based on operational performance and cash flow [11][4]. Shuanghui Development's Growth Plans - Shuanghui Development expects to increase its network by over 10% in 2025, adding more than 200,000 outlets, with a focus on expanding new sales channels [12][4]. - The company plans to enhance its channel strategy by filling gaps in existing channels and expanding into new ones, with expectations that new channels will account for over 20% of total sales by 2026 [13][4]. Operational Adjustments - Shuanghui Development has implemented a more targeted performance assessment mechanism for its sales teams, focusing on individual and team performance linked to specific product categories [6][4]. - The company anticipates a significant increase in personnel dedicated to meat products, reflecting a 50% increase in workforce in this area [14][4]. Pricing and Market Trends - The average pork price in 2025 is expected to be lower than in 2024, with a projected decline of approximately 2 yuan from last year's average of 17 yuan [24][4]. - The U.S. market is expected to see stable growth, with feed prices declining and pork prices rising, while product sales are also anticipated to increase [25][4]. European Market Insights - The European market is expected to see a decline in hog prices due to increased supply, benefiting the slaughtering industry but reducing profitability in hog farming [18][4]. Export Dynamics - Clearfield's export business to Mexico and Canada is significant, with Mexico accounting for a larger share. The company plans to increase high-value product exports to mitigate the impact of tariffs [19][4]. Additional Important Information - The company is focusing on technological upgrades and innovations, including the introduction of AI, to enhance the competitiveness of the traditional meat industry [10][4]. - The overall strategy includes maintaining a strong position in the U.S. slaughtering and meat processing sectors while optimizing business operations through mergers and acquisitions [18][4].

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].

Financial Data and Key Metrics Changes - In 2024, WH Group reported a revenue of $25.941 billion, a decrease of 1.1% compared to the previous year [3] - Packaged meat sales volume was 3.1 million tonnes, down 3%, while pork sales volume was 3.765 million tonnes, down 4.9% [3] - EBITDA increased by 56.1% to $3.078 billion, and operating profit rose by 63% to $2.4 billion [4] - Profit before tax surged by 115% to $2.208 billion, with profit attributable to owners of the company reaching $1.471 billion, up 142% [4] - Basic earnings per share increased to $0.1147 [4] Business Segment Data and Key Metrics Changes - Packaged meat contributed 52.6% of total revenue, while pork contributed 40% of revenue and 14.8% of profit [4][5] - North America accounted for 50.3% of revenue and 49% of profit, while Europe contributed 14.5% of revenue and 11.4% of profit [6] - Operating profit from packaged meat was $1.174 billion, up 9.5%, with a margin of 14.1% [15] - The pork business saw an operating profit of $170 million, with a margin of 2% [15] Market Data and Key Metrics Changes - In China, the number of slaughtered hogs decreased by 3.3% to 703 million heads, with an average hog price of RMB 17.04 per kilo, up 10.6% [10] - In the U.S., the average hog price was $1.42 per kilo, up 4.5%, while in Europe, it was EUR 1.59 per kilo, down 7.9% [11] - Corn prices in the U.S. averaged $4.27 per bushel, down 23.3% [12] Company Strategy and Development Direction - WH Group aims to focus on core packaged meat business, improve fresh meat operations, and maintain appropriate hog production levels [16] - The company plans to reduce hog production from 14.7 million heads in 2024 to below 10 million heads in the future [17] - The strategy includes industrialization, diversification, internationalization, and digitalization to enhance competitiveness [19][30] Management Comments on Operating Environment and Future Outlook - The global economic recovery is slow and uneven, with inflation moderating and cost pressures alleviating [8] - Management expects challenges in demand but anticipates benefits from lower raw material costs in 2025 [21][22] - The outlook for the U.S. pork market is positive, with expectations of strong demand and favorable pricing dynamics [35][36] Other Important Information - The company reported strong operating cash flow of $2.519 billion, up 55.8%, and a low leverage ratio of 0.29 [7][8] - WH Group completed the acquisition of a Spanish packaged meat producer, Argo, to expand its high-end packaged meat business [19] Q&A Session Summary Question: How will WH Group maintain high profitability per metric ton in 2025? - Management indicated that while profitability per ton may decrease in 2025, it will remain relatively high due to low raw material costs and adjustments in product mix [21][22] Question: What measures will be taken to increase packaged meat volumes in 2025? - Eight measures were outlined, including reforming the sales team, enhancing market research, and increasing marketing investments [23][24][25][26][27] Question: Will there be changes in strategy after the Smithfield IPO? - Management confirmed that the strategy remains focused on strengths, with an emphasis on industrialization, diversification, and digitalization [30] Question: What is the outlook for the first quarter in China and the U.S.? - The outlook for China is stable with potential growth, while the U.S. market shows strength in hog prices and meat prices [38][41] Question: How will WH Group manage labor costs in the U.S.? - The company has not experienced significant impacts from labor costs and is focused on automation and becoming an employer of choice [70][72]

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]