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]

Financial Performance - Revenue declined by 4.5% to $19,488 million, and operating profit fell by 36.4% to $1,047 million[1] - Profit attributable to the company's owners (before biological fair value adjustment) decreased by 37.7% to $569 million, with basic earnings per share dropping by 37.7% to 4.43 cents[1] - The company's operating loss in the U.S. and Mexico was $551 million, compared to an operating profit of $85 million in the previous period[7] - The company expects continued pressure on short-term financial performance due to unfavorable operating conditions and high production costs[8] Sales and Market Trends - Meat product sales decreased by 1.9% to 2,387 thousand tons, while pork sales decreased by 0.7% to 2,961 thousand tons[1] - In China, pork sales increased by 7.4% due to expanded production, while sales in the U.S. and Mexico decreased by 4.5% due to business restructuring[7] - Average pig prices in China fell by 10.6% to RMB 15.42 per kg ($2.19), while in the U.S., prices dropped by 17.7% to $1.40 per kg due to weak demand[3] - In Europe, the average carcass price increased by 29.3% to €2.34 per kg ($2.54) due to tightening supply[3] - European operations improved significantly, with an operating profit of $61 million compared to an operating loss of $18 million in the previous period[7] Corporate Governance and Oversight - The financial data for the nine months ending September 30, 2023, has not been audited but has been reviewed by the board's audit committee[9] - The executive directors of the company include Mr. Wan Long, Mr. Guo Lijun, Mr. Wan Hongwei, Mr. Ma Xiangjie, and Mr. Charles Shane Smith[9] - 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[9] - The board of directors is actively involved in overseeing the financial performance and strategic direction of the company[9] - The review process is part of the company's governance framework to maintain transparency and accountability[9] Strategic Focus and Future Outlook - The company plans to focus on restructuring its industry value chain and expanding its sales network while managing prices and controlling costs[8] - The company is committed to ensuring the accuracy of the financial information presented to stakeholders[9] - The financial results will provide insights into the company's operational efficiency and market positioning[9] - The company is focused on enhancing shareholder value through strategic financial management[9] - The financial data will be crucial for future investment and corporate decision-making processes[9] - The announcement date is October 24, 2023, indicating the timeliness of the financial review[9]

Financial Performance - Total revenue for the first half of 2023 was $13,116 million, a decrease of 2.1% compared to $13,398 million in the same period of 2022[8]. - Operating profit fell by 47.2% to $639 million from $1,211 million year-on-year[8]. - Profit attributable to the company's owners (before biological fair value adjustments) decreased by 45.4% to $383 million from $701 million in the previous year[8]. - Basic earnings per share (before biological fair value adjustments) dropped by 45.2% to 2.99 cents from 5.46 cents[8]. - Total revenue for the first half of 2023 decreased by 2.1% to $13.116 billion, primarily due to reduced meat product revenue in China and the United States[14]. - Operating profit fell by 47.2% to $639 million, largely attributed to losses in the pork segment[14]. - Gross profit for the same period was $2,026 million, down 22.8% from $2,623 million year-on-year[47]. - Net profit for the six months ended June 30, 2023, was $502 million, a decrease of 40.0% compared to $837 million in the prior year[48]. - Basic earnings per share for the period was 3.27 cents, down from 5.92 cents in the same period last year[48]. - The group reported a pre-tax profit of $657 million for the first half of 2023, compared to $1,155 million in the same period of 2022[70]. - The total comprehensive income for the six months ended June 30, 2023, was $490 million, compared to $578 million for the same period in 2022, reflecting a decrease of approximately 15.2%[51]. Sales and Market Performance - Pork sales volume decreased by 0.2% to 2,026 thousand tons, while meat product sales volume fell by 0.9% to 1,597 thousand tons[7]. - The business in China accounted for 34.2% of total revenue and 81.4% of operating profit, compared to 32.6% and 44.3% respectively in the previous period[9]. - The business in the US and Mexico contributed 53.4% of total revenue and 5.6% of operating profit, down from 57.2% and 51.1% respectively[9]. - Pork revenue increased by 0.5% to $5.580 billion, with notable growth in China (4.5%) and Europe (22.4%), while revenue in the U.S. and Mexico decreased by 5.0%[18]. - In the U.S., pork and offal export volume rose by 17.9%, with exports to China increasing by 26.7%[11]. - The European segment generated total revenue of $2,014 million, with a profit of $83 million, indicating a stable performance in that region[67]. Operational Insights - The meat products segment accounted for 50.7% of total revenue and 167.1% of operating profit, highlighting its core importance to the company[14]. - Operating loss in the pork business was $409 million, compared to an operating profit of $124 million in the previous period[19]. - Operating profit in the U.S. increased by 7.2% to $578 million despite a revenue decline, due to lower raw material costs and improved operational efficiency[17]. - The company plans to continue focusing on market expansion and product innovation to enhance its competitive position in the global pork industry[9]. - The company plans to continue expanding its sales network and product offerings to adapt to market conditions and consumer preferences[15]. Financial Position and Debt - Cash and bank balances as of June 30, 2023, were $828 million, down from $1.394 billion at the end of 2022[22]. - Total outstanding loans amounted to $3.468 billion as of June 30, 2023, compared to $3.395 billion at the end of 2022[25]. - 99.7% of loans were unsecured as of June 30, 2023, with no defaults on bank loan repayments during the review period[26]. - The company maintained a current ratio of 1.6 as of June 30, 2023, consistent with the previous period[22]. - As of June 30, 2023, the company's debt-to-equity ratio was 33.2% and the net debt-to-equity ratio was 25.2%, compared to 32.3% and 18.9% as of December 31, 2022[27]. - Financial costs for the review period amounted to $85 million, an increase of 7.6% compared to the previous period, primarily due to higher applicable interest rates on bank loans[28]. Investments and Acquisitions - The company completed the acquisition of 100% of Goodies Meat Production S.P.L. in February 2023, enhancing its existing business in Europe[31]. - Capital expenditures for the review period were $448 million, with significant investments in China, the U.S. and Mexico, and Europe[34]. - The company has established a provision of $194 million to settle all collective claims related to antitrust litigation in the U.S.[40]. Legal and Regulatory Matters - The company is actively defending against 37 ongoing individual claims related to antitrust issues[40]. - Smithfield Foods, a wholly-owned subsidiary of the company, is involved in antitrust litigation with claims dating back to 2009, alleging price-fixing in the pork industry[104]. - The company agreed to a settlement of $77 million for direct buyer class claims, which was approved by the Minnesota federal court[105]. - Currently, there are 37 individual cases against the company, with three cases filed by federal or state representatives seeking compensation based on consumer purchases[105]. Sustainability and Corporate Governance - The company is committed to providing sustainable protein options while monitoring the impact of operations on the environment and community[41]. - The company has established an Environmental, Social, and Governance (ESG) committee to guide its sustainability goals[41]. - The company is subject to various laws and regulations, with ongoing assessments of legal claims that may impact cash flow and liquidity[103]. - The company has adhered to all applicable code provisions of the corporate governance code throughout the review period[146]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the group's interim performance and internal controls[147]. Future Outlook - The company provided a positive outlook for the second half of 2023, expecting a revenue growth of 10% to 12%[150]. - New product launches are anticipated to contribute an additional HKD 1 billion in revenue by the end of 2023[151]. - Market expansion plans include entering two new international markets by Q4 2023, projected to increase market share by 5%[151]. - The company aims to reduce operational costs by 8% through efficiency improvements in the next fiscal year[150].

Financial Performance - Revenue for the six months ended June 30, 2023, was $13,116 million, a decrease of 2.1% compared to $13,398 million in the same period of 2022[2]. - Operating profit decreased by 47.2% to $639 million from $1,211 million year-on-year[3]. - Profit attributable to the owners of the company (before biological fair value adjustments) fell by 45.4% to $383 million from $701 million in the previous year[3]. - Basic earnings per share (before biological fair value adjustments) decreased by 45.2% to 2.99 cents from 5.46 cents in the same period last year[3]. - Gross profit for the same period was $2,026 million, down from $2,623 million in 2022, indicating a decrease of about 22.8%[44]. - The company reported a pre-tax profit of $610 million, significantly lower than the $1,088 million reported in the previous year, reflecting a decline of approximately 43.8%[44]. - The net profit for the period was $540 million, compared to $837 million in the prior year, marking a decrease of around 35.5%[45]. - The company anticipates continued pressure on short-term financial performance due to unfavorable operating conditions, particularly in the U.S. market[43]. Revenue Breakdown - The company's operations in China accounted for 34.2% of total revenue and 81.4% of operating profit, up from 32.6% and 44.3% respectively in the previous year[5]. - Pork revenue increased by 0.5% to $5.580 billion, with a 4.5% increase in China, while the U.S. and Mexico saw a 5.0% decline[18]. - Total revenue for the China segment was $5,054 million, with a reported profit of $520 million for the six months ending June 30, 2023[54]. - The total revenue for the US and Mexico segment was $8,462 million, with a reported loss of $36 million for the same period[54]. - The total revenue for the Europe segment was $2,014 million, with a reported profit of $83 million[54]. - The overall total revenue across all segments was $15,530 million, with a reported profit of $639 million[54]. Operational Metrics - Pork sales volume decreased by 0.2% to 2,026 thousand tons compared to 2,031 thousand tons in the previous year[2]. - Total pig slaughter volume remained at 25.43 million heads, with an 8.4% increase in China but a 2.6% decrease in the U.S. and Mexico[17]. - The poultry business slaughtered approximately 146 million birds, a 40.1% increase compared to the previous period[20]. - Other businesses generated revenue of $883 million, a 13.9% increase, driven by poultry expansion[20]. - Operating profit for the pork business was a loss of $409 million, compared to a profit of $124 million in the previous period[19]. - Operating profit in the U.S. pork segment was a loss of $495 million, significantly impacted by unfavorable market conditions[19]. Assets and Liabilities - Non-current assets totaled $11,780 million as of June 30, 2023, compared to $11,846 million at the end of December 2022, showing a slight decrease[46]. - Current assets decreased to $7,301 million from $8,009 million, indicating a reduction of approximately 8.8%[46]. - As of June 30, 2023, total current liabilities amounted to $4,453 million, a decrease from $4,985 million as of December 31, 2022, representing a reduction of approximately 10.7%[47]. - Non-current liabilities totaled $4,280 million as of June 30, 2023, a decrease from $4,458 million at the end of 2022, representing a reduction of about 4%[47]. - The company's equity attributable to owners was $9,604 million as of June 30, 2023, compared to $9,600 million at the end of 2022, indicating a slight increase of approximately 0.04%[47]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2023, was $2 million, compared to $34 million for the same period in 2022, indicating a significant decline of approximately 94.1%[48]. - The net cash flow used in investing activities was $(363) million for the six months ended June 30, 2023, compared to $(160) million for the same period in 2022, reflecting an increase in cash outflow of approximately 126.9%[48]. - The net cash flow used in financing activities was $(202) million for the six months ended June 30, 2023, a decrease from $(416) million in the same period of 2022, indicating a reduction in cash outflow of approximately 51.5%[48]. - As of June 30, 2023, the company had cash and bank balances of $828 million, down from $1.394 billion on December 31, 2022[22]. - The total outstanding loan principal was $3.468 billion as of June 30, 2023, an increase from $3.395 billion on December 31, 2022[25]. Capital Expenditures - Capital expenditures for the review period amounted to $448 million, with $230 million allocated to China, $167 million to the US and Mexico, and $51 million to Europe[35]. - The total capital expenditure for property, plant, and equipment was $296 million for the six months ending June 30, 2023, down from $540 million in the previous year[61]. - In the US, capital expenditures were mainly related to the modernization of slaughterhouses and upgrades to meat processing facilities[35]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards[75]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the review period[76]. Environmental and Risk Management - The company has implemented environmental policies to manage regulatory and environmental risks associated with its biological assets[64]. - The company faces risks related to climate change, diseases, and other natural forces affecting its biological assets, with processes in place for monitoring and risk reduction[65].

Sales Performance - Meat product sales decreased by 1.0% to 820,000 tons, while pork sales fell by 1.2% to 1,021,000 tons compared to the same period last year[1]. - The company experienced a 3.5% decrease in meat product revenue, primarily due to declining consumer demand in the U.S.[5]. Financial Results - Revenue increased by 2.9% to $6,743 million, but operating profit dropped by 43.1% to $365 million[1]. - Profit attributable to the company's owners (before biological fair value adjustment) decreased by 55.9% to $174 million, with basic earnings per share down 55.8% to 1.36 cents[1]. - The company recorded an operating loss of $170 million in the pork segment, compared to an operating profit of $45 million in the same period last year[6]. Market Conditions - Average pig prices in China rose by 12.0% to approximately $2.29 per kg, while in the U.S., prices fell by 16.0% to $1.27 per kg due to weak demand[2]. - In Europe, pork prices increased significantly due to limited supply, with average prices rising by 46.0% to approximately $2.35 per kg[2]. Strategic Focus - The company plans to focus on optimizing its industry value chain and implementing strict product structure adjustments, price management, and cost control in response to market challenges[7]. - The company aims to leverage its global business deployment to better allocate resources and create synergies amid a highly uncertain external environment[7]. Asset Management - The total assets as of March 31, 2023, increased to $20,372 million from $19,855 million at the end of 2022[1].

Financial Performance - Revenue rose by 3.1% to $28,136 million in 2022, compared to $27,293 million in 2021[7] - Operating profit increased by 6.5% to $2,093 million in 2022, up from $1,966 million in 2021[7] - Profit attributable to shareholders (before biological fair value adjustments) surged by 34.3% to $1,401 million in 2022, compared to $1,043 million in 2021[8] - Basic earnings per share (before biological fair value adjustments) rose by 48.2% to 10.92 cents in 2022, compared to 7.37 cents in 2021[8] - The company reported a significant increase in revenue, with a year-over-year growth of 15% in the last quarter[29] - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the upcoming fiscal year[29] - The company achieved a revenue growth rate of 3.1% in 2022, down from 6.7% in 2021, reflecting a decrease of 3.6 percentage points[46] - The adjusted EBITDA margin before biological fair value adjustments improved to 11.2% in 2022 from 9.1% in 2021, an increase of 2.1 percentage points[46] - The net profit margin before biological fair value adjustments increased to 6.0% in 2022, up from 4.7% in 2021, representing a rise of 1.3 percentage points[46] Sales and Production - Meat product sales increased by 0.7% to 3,344 thousand tons in 2022, compared to 3,320 thousand tons in 2021[6] - Pork sales decreased by 7.9% to 4,019 thousand tons in 2022, down from 4,362 thousand tons in 2021[6] - The meat products segment accounted for 98.7% of the group's operating profit and 51.7% of total revenue in 2022, up from 96.4% and 50.6% in 2021, respectively[36] - The pork business contributed 1.4% to the group's operating profit and 41.9% to total revenue in 2022, compared to 0.2% and 43.9% in 2021[36] - The poultry business slaughtered approximately 240 million birds in 2022, an increase of 30.2% from the previous year, contributing to the protein diversification strategy[42] - The total output of live pigs in China in 2022 was 700 million heads, an increase of 4.3% from 671 million heads in 2021[31] - The total pork production in China reached 55.4 million tons in 2022, up 4.5% from 53 million tons in 2021[31] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HK$0.25 per share, bringing the total dividend for the year to HK$0.30 per share[12] - The company proposed a final dividend of HKD 0.25 per share for the year ended December 31, 2022, compared to HKD 0.14 per share in 2021, resulting in a total dividend of HKD 0.30 per share for 2022, amounting to approximately HKD 38.49 billion or USD 4.90 billion[109] - The company plans to continue paying interim and final dividends amounting to no less than 30% of the net profit attributable to equity holders of the parent company[112] Management and Governance - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[13] - The leadership team is committed to enhancing the company's market position and operational efficiency[15] - The company is committed to maintaining high standards of corporate governance through its experienced board and management team[18] - The management team has a diverse range of experiences across various sectors, which is expected to drive innovation and market expansion[18] - The company emphasizes the importance of corporate culture aligned with its purpose, values, and strategy, promoting a legal and ethical framework[79] Market and Operational Strategy - The company aims to enhance its supply chain and diversify its meat products while expanding market reach and optimizing processes for better competitiveness[12] - The Americas business saw a significant 20% increase in meat product profitability despite ongoing inflationary pressures[12] - The European business faced challenges with sales and profitability declining due to the impacts of war, animal diseases, and inflation[12] - The company is focused on leveraging the expertise of its board members to enhance strategic decision-making and market positioning[18] - The company aims to increase its market share by 3% through targeted marketing strategies[29] Financial Position and Ratios - The company maintained a current ratio of 1.6 as of December 31, 2022, compared to 1.7 in 2021[48] - The debt-to-equity ratio improved to 32.3% in 2022 from 41.4% in 2021, a decrease of 9.1 percentage points[46] - The company has a total unused bank financing amounting to $5.725 billion as of December 31, 2022, compared to $5.796 billion in 2021[48] - The total outstanding loan principal as of December 31, 2022, was $3.395 billion, a decrease from $4.049 billion in 2021[55] - The company's capital expenditures for 2022 amounted to $975 million, compared to $933 million in 2021, with significant investments in China and the U.S.[58] Risk Management and Compliance - The company has a risk management system in place to monitor and report on significant risks, with an effective Enterprise Risk Management (ERM) system[69] - The company emphasizes the importance of proper handling and disclosure of inside information, adhering to relevant regulations and guidelines[99] - The company has established a comprehensive risk management and reporting system to address significant risks and ensure business objectives are met[97] - The company conducted an annual review of its risk management and internal control systems, ensuring their adequacy and effectiveness[96] Sustainability and Community Engagement - The company was selected as a constituent of the Hang Seng Sustainable Development Index and received an A+ rating in 2022, indicating recognition of its performance in sustainability[75] - The company achieved a BBB rating from MSCI, the world's largest index provider, reflecting its commitment to environmental, social, and governance (ESG) standards[75] - Charitable donations made by the company during the review period totaled USD 5 million, reflecting its commitment to community engagement[114] - The company is actively monitoring the impact of its operations on the environment and surrounding communities, reflecting its commitment to sustainable development[75] Audit and Financial Reporting - The consolidated financial statements for the year ended December 31, 2022, were audited by Ernst & Young[148] - The audit committee assists the board in overseeing the financial reporting process and ensuring compliance with relevant regulations[153] - The auditor's responsibility includes identifying and assessing risks of material misstatement in the financial statements and designing appropriate audit procedures[155] - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, in accordance with International Financial Reporting Standards[153] Shareholding and Equity - Mr. Wan Long holds a total of 2,169,781,518 shares, representing approximately 16.91% of the company's equity[127] - Mr. Ma Xiangjie has a significant stake of 5,029,376,978 shares, accounting for 39.20% of the company's equity[127] - The company has a total of 146,198,889 shares held by Mr. Wan Long related to stock options, which is about 1.14% of the total shares[129] - The company has a total of 301,736 shares held by Mr. Wan Long in a related corporation, representing 0.01%[130]

Financial Performance - WH Group Limited reported a 3.1% increase in revenue to $28,136 million for the year ended December 31, 2022, compared to $27,293 million in 2021[1]. - The company's operating profit rose by 6.5% to $2,093 million in 2022, up from $1,966 million in the previous year[1]. - The profit attributable to the company's owners (before biological fair value adjustments) increased by 34.3% to $1,401 million, compared to $1,043 million in 2021[1]. - Basic earnings per share (before biological fair value adjustments) increased by 48.2% to 10.92 cents, up from 7.37 cents in 2021[1]. - Revenue growth rate for 2022 was 3.1%, down from 6.7% in 2021, a decrease of 3.6 percentage points[14]. - EBITDA margin before biological fair value adjustments increased to 11.2% in 2022 from 9.1% in 2021, an increase of 2.1 percentage points[14]. - Operating profit margin improved slightly to 7.4% in 2022 from 7.2% in 2021, an increase of 0.2 percentage points[14]. - Gross profit for 2022 was $5,177 million, up from $4,996 million in 2021, reflecting a gross margin increase[45]. - Net profit for the year was $1,683 million, representing a 1.9% increase from $1,650 million in the previous year[46]. Sales and Revenue Breakdown - Pork sales volume decreased by 7.9% to 4,019 thousand tons in 2022, down from 4,362 thousand tons in 2021[1]. - The sales volume of meat products increased by 0.7% to 3,344 thousand tons in 2022[1]. - In China, the company's business accounted for 33.9% of total revenue and 49.7% of operating profit in 2022, compared to 38.5% and 47.3% in 2021, respectively[3]. - In the United States and Mexico, the business contributed 56.0% of total revenue and 44.9% of operating profit in 2022, up from 52.0% and 46.7% in 2021[3]. - The company's pork revenue decreased by 1.4% to $11.797 billion, with a significant drop of 17.2% in China attributed to lower average pork prices and adverse currency effects[12]. - The meat products segment generated revenue of $13,808 million, while the pork segment contributed $11,969 million, and other segments accounted for $1,516 million[58]. Operational Challenges and Strategies - The company faced challenges in the US due to labor shortages affecting the sales of biopharmaceutical products, leading to a decrease in operating profit from other businesses by $70 million[13]. - The company plans to continue its strategy of product innovation and channel development to enhance its product mix despite disruptions caused by global pandemic measures[10]. - The company is implementing strategic inventory management and effective cost transfer to mitigate commodity price volatility[38]. - The company is actively managing foreign exchange risks and has a hedging strategy in place for significant risks[39]. - The company anticipates short-term financial performance pressures due to high inflation and macroeconomic conditions affecting consumer confidence[44]. Assets and Liabilities - The company had cash and bank balances of $1.394 billion as of December 31, 2022, down from $1.556 billion in 2021[17]. - The current ratio decreased to 1.6 times in 2022 from 1.7 times in 2021[17]. - Net cash from operating activities was $1.803 billion in 2022, down from $1.958 billion in 2021, primarily due to increased working capital needs[18]. - Total outstanding loans amounted to $3.395 billion as of December 31, 2022, down from $4.049 billion in 2021[23]. - The company maintained a debt-to-equity ratio of 32.3% in 2022, a decrease of 9.1 percentage points from 41.4% in 2021[14]. - The company’s total asset return rate improved to 8.4% in 2022 from 6.8% in 2021, an increase of 1.6 percentage points[14]. - The company reported a total equity of $10,412 million as of December 31, 2022, compared to $9,687 million in 2021[49]. Investments and Acquisitions - Capital expenditures for 2022 amounted to $975 million, up from $933 million in 2021, with significant investments in China, the US, and Europe[26]. - The acquisition of Goodies Meat Production S.R.L. was completed in February 2023, enhancing the company's presence in the European market[29]. - The company sold its stake in Norson, resulting in a pre-tax loss of $12 million, and completed the sale in November 2022[30]. - The sale of Saratoga generated $575 million in proceeds, with a pre-tax gain of $414 million, allowing the company to focus on strategic operations[31]. - The company increased its stake in Granjas Carroll de Mexico from 50% to 66%, integrating its performance into the company's financials[35]. Compliance and Governance - The audit committee confirmed that the consolidated financial information complies with applicable accounting standards and regulations[79]. - The company has maintained compliance with the public float requirements as per the listing rules[86]. - The company will hold its annual general meeting on June 6, 2023, to discuss the proposed final dividend[86]. - The company’s annual report for 2022 will be published on its website and the stock exchange website[87].