Financial Performance - In 2023, the company's revenue reached RMB 16,155,412 thousand, a 7.4% increase from RMB 15,037,027 thousand in 2022[7]. - The company reported a net loss of RMB 1,992,136 thousand in 2023, compared to a profit of RMB 909,755 thousand in 2022[7]. - Basic and diluted loss per share was RMB (4.88) in 2023, down from earnings of RMB 2.74 in 2022[7]. - The company's overall gross margin decreased from 13.8% in 2022 to 0.7% in 2023, attributed to a 19.5% drop in average selling price of pigs[51]. - The adjusted loss for the year 2023 was RMB 1,278,520 thousand, compared to a profit of RMB 604,960 thousand in 2022, indicating a significant decline in performance[65]. - The adjusted EBITDA for 2023 was RMB 8,752 thousand, a sharp decrease from RMB 1,734,800 thousand in 2022, reflecting operational challenges[66]. - The net cash generated from operating activities in 2023 was RMB 742 million, down from RMB 2,192 million in 2022, highlighting reduced cash flow[67]. - Total cash and cash equivalents decreased by RMB 296 million in 2023, indicating liquidity pressures[67]. - As of December 31, 2023, the company's net assets were approximately RMB 3,855 million, down from RMB 5,064 million in 2022, showing a decline in equity[70]. - The net debt as of December 31, 2023, was approximately RMB 5,533 million, with a net debt-to-equity ratio of 143.5%, up from 113.6% in 2022, indicating increased leverage[70]. Sales and Production - The total sales volume of market pigs was 6,659,735 heads, representing a 30.4% increase compared to 4,972,795 heads in 2022[6]. - The sales volume of yellow feather broilers increased by 12.9%, totaling 88,733,327 birds in 2023 compared to 78,599,963 birds in 2022[6]. - In 2023, the company's swine segment revenue reached RMB 12,255 million, representing a year-on-year increase of 4.3%[43]. - The poultry segment generated revenue of RMB 3,333 million in 2023, reflecting a year-on-year growth of 3.7% driven by increased sales of yellow-feathered chickens[47]. - The auxiliary products segment saw revenue rise to RMB 567 million in 2023, a significant increase of 640.5% due to higher sales of feed raw materials and the development of fresh meat business[48]. - The total pork production in China for 2023 was 57.9 million tons, with a year-on-year growth of 4.6%[39]. - The average price of commodity chickens fell by approximately 10% compared to 2022[40]. - The average selling price of market pigs decreased from RMB 2,317 to RMB 1,832, while the average price for breeding pigs increased from RMB 2,124 to RMB 2,341[6]. Operational Strategies - The company aims to strengthen production management and improve efficiency to counter challenges such as low pig prices and rising raw material costs[18]. - The company plans to expand its pig and yellow-feathered chicken farming business through a combination of self-operated and family farms, enhancing cost-effectiveness and efficiency[24]. - Continued investment in research and development is aimed at improving breeding and farming technologies, further enhancing farming efficiency and cost-effectiveness[24]. - The company aims to enhance production efficiency and capacity utilization, aligning with industry trends towards larger-scale pig farming operations[40]. - The company has increased its research and development investment to improve breeding performance of its pigs[43]. - The introduction of high-quality breeding pigs has led to a competitive advantage, with new commercial pigs reaching market weight 12 days earlier than mainstream varieties, and a marginal contribution increase of approximately RMB 100 per pig[20]. - The company has implemented cost reduction measures, achieving a cost reduction of RMB 100 per head with the introduction of the DeKang E series[43]. Corporate Governance - The company was officially listed on the Hong Kong Stock Exchange on December 6, 2023, marking a significant milestone in its development[18]. - The board consists of five executive directors and three independent non-executive directors, ensuring a balanced composition for effective decision-making[100][110]. - The company has adopted the corporate governance code as per the listing rules to safeguard the interests of stakeholders[95]. - The board meets at least four times a year, with all directors actively participating in meetings[102]. - The audit committee includes three members, with two being independent non-executive directors, ensuring oversight of financial reporting and external audit processes[121]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined responsibilities[120]. - The company has established a whistleblowing policy allowing employees to report misconduct confidentially[157]. - A robust anti-corruption policy is in place to prevent internal corruption and bribery, with anonymous reporting channels available[158]. Employee and Social Responsibility - As of December 31, 2023, the company employed 9,854 staff, an increase from 8,202 in 2022, with total employee compensation amounting to RMB 1,174 million, up from RMB 981 million in 2022[83]. - The company has established a compensation committee to review employee compensation policies in line with industry standards and individual performance[83]. - The company is committed to ESG initiatives, including the "Hundred Villages, Million" project, to promote sustainable agricultural practices[90]. - The company has established a comprehensive ESG policy framework, focusing on risk management, business ethics, and environmental protection[198]. - No fines or penalties were incurred for non-compliance with health, safety, or environmental laws during the reporting period[199]. Shareholder Communication - The company is committed to effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[173]. - The company encourages shareholders to attend general meetings and allows them to appoint representatives to vote on their behalf if they cannot attend[179]. - Shareholders holding more than 10% of the company's shares have the right to propose a special general meeting, with the board required to respond within 10 days[165]. - The company will publish announcements and other documents on the Stock Exchange's website in accordance with listing rules[177]. - The company declared a dividend of RMB 100 million to shareholders as of December 26, 2022, which will be paid in December 2023[191]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023[192].

Financial Performance - The company reported a revenue of RMB 16,155,412 thousand for the year ended December 31, 2023, representing an increase of 7.4% compared to RMB 15,037,027 thousand in 2022[5]. - The company incurred a loss of RMB 1,992,136 thousand for the year, compared to a profit of RMB 909,755 thousand in 2022, marking a substantial decline[5]. - The basic and diluted loss per share was RMB (4.88) in 2023, compared to earnings of RMB 2.74 per share in 2022[5]. - The company reported a pre-tax profit of RMB 1,775,126,000 for the year, compared to a profit of RMB 992,866,000 in 2022, marking an increase of 78.9%[25]. - The company recorded a net loss of RMB 1,992 million after fair value adjustments of biological assets in 2023, compared to a net profit of RMB 910 million in 2022[50]. - The overall gross margin dropped to 0.7% in 2023 from 13.8% in 2022, primarily due to falling average selling prices of pigs and poultry[60]. Sales and Production - The total sales volume of commodity pigs reached 6,659,735 heads in 2023, a significant increase of 33.9% from 4,972,795 heads in 2022[3]. - Sales of live pigs and related products generated RMB 12,254,966,000, up from RMB 11,745,056,000, reflecting a growth of 4.3%[16]. - The average selling price of commodity pigs decreased to RMB 1,832 per head in 2023 from RMB 2,317 per head in 2022, reflecting a decline of 20.9%[3]. - The poultry segment's revenue in 2023 was RMB 3,333 million, reflecting a 3.7% year-on-year increase due to higher sales of yellow-feathered broilers[55]. - The auxiliary products segment saw revenue of RMB 567 million in 2023, a significant increase of 640.5% attributed to enhanced sales of feed raw materials and the launch of fresh meat business[56]. Costs and Expenses - The total cost of sales increased to RMB 16,035,739 thousand in 2023 from RMB 12,968,848 thousand in 2022, resulting in a gross profit of only RMB 119,673 thousand[7]. - Total employee costs rose to RMB 1,174,243,000, a significant increase of 19.7% compared to RMB 981,295,000 in 2022[22]. - Administrative expenses increased by 21.7% to RMB 1,288 million in 2023, driven by higher depreciation and increased insurance costs related to pig mortality[64]. - The company recorded a loss of RMB 714 million from changes in the fair value of biological assets in 2023, compared to a gain of RMB 305 million in 2022[61]. Assets and Liabilities - The company’s non-current assets totaled RMB 10,807,632 thousand as of December 31, 2023, compared to RMB 10,085,844 thousand in 2022[8]. - Current liabilities increased to RMB 9,690,620 thousand in 2023 from RMB 9,084,396 thousand in 2022, leading to a net current liability position of RMB (1,564,020) thousand[8]. - The company’s total equity decreased to RMB 3,855,063 thousand in 2023 from RMB 5,063,802 thousand in 2022, indicating a decline in shareholder value[9]. - The net debt to equity ratio increased to 143.5% in 2023 from 113.6% in 2022, indicating a higher leverage level[81]. Future Plans and Investments - The company plans to continue expanding its market presence and product offerings, focusing on enhancing operational efficiency and profitability in the upcoming fiscal year[11]. - The company plans to steadily expand its core business capacity, including the growth of self-operated farms and the network of family farms[98]. - Investment in research and development will focus on nutritional improvements and feed raw material substitutions to reduce breeding costs[100]. - The company will utilize pig futures hedging to reduce operational risks[100]. Corporate Governance and Shareholder Matters - The company is committed to maintaining high standards of corporate governance and has adhered to the corporate governance code since the listing date[107][108]. - The annual general meeting is scheduled for May 10, 2024, with a suspension of share transfer registration from May 7 to May 10, 2024, to determine voting rights[117][119]. - The company does not recommend a final dividend for the year ending December 31, 2023[103]. Capital and Financing - The company maintained a strong relationship with banks, ensuring sufficient financing support for at least the next twelve months[13]. - The company had unused bank credit facilities amounting to RMB 4,775 million as of December 31, 2023, providing a buffer for future liquidity needs[74]. - The company’s total bank loans and other borrowings amounted to approximately RMB 6,099 million as of December 31, 2023, down from RMB 6,896 million in 2022[78]. Employee and Operational Metrics - As of December 31, 2023, the company had 9,854 employees, an increase from 8,202 employees in 2022[91]. - The average number of ordinary shares outstanding increased slightly to 363,881,000 from 361,964,000 in 2022[25]. - The company has implemented strict biosecurity measures to mitigate disease risks in pig and poultry farming[95].