[Performance Announcement and Financial Summary](index=1&type=section&id=%E6%A5%AD%E7%B8%BE%E5%85%AC%E4%BD%88%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides an overview of the company's unaudited consolidated financial results for the first quarter of 2023 [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) DaChan Food (Asia) Ltd. announced unaudited Q1 2023 consolidated results, with operating revenue up 14.4% and profit attributable to shareholders surging 83.0% to RMB 0.010 per share Key Financial Data for Q1 2023 | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | 14.4 | | Gross Profit | 156,469 | 143,311 | 9.2 | | Gross Profit Margin (%) | 10.2 | 10.7 | - | | Profit Attributable to Shareholders | 10,244 | 5,599 | 83.0 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | - | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated income statement and statement of financial position for the reporting period, detailing revenue, profit, assets, and liabilities [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For Q1 2023, the company reported RMB 1,529,353 thousand in operating revenue, RMB 156,469 thousand in gross profit, and RMB 10,244 thousand in profit attributable to shareholders, with basic EPS of RMB 0.010, all showing significant growth Key Consolidated Income Statement Data | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | | Cost of Sales | (1,372,884) | (1,193,084) | | Gross Profit | 156,469 | 143,311 | | Operating Profit | 22,193 | 17,198 | | Profit Before Tax | 18,964 | 14,301 | | Profit for the Period | 17,180 | 10,138 | | Profit Attributable to Shareholders | 10,244 | 5,599 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2023, total assets less current liabilities were RMB 2,664,462 thousand, with net assets of RMB 2,343,283 thousand, reflecting adjustments in asset structure with increased non-current assets and decreased current assets and liabilities Key Consolidated Statement of Financial Position Data | Metric | March 31, 2023 (RMB Thousand) | December 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,759,071 | 1,669,235 | | Current Assets | 1,756,028 | 1,902,042 | | Current Liabilities | 850,637 | 940,726 | | Net Current Assets | 905,391 | 961,316 | | Total Assets Less Current Liabilities | 2,664,462 | 2,630,551 | | Net Assets | 2,343,283 | 2,323,107 | | Total Equity Attributable to Shareholders | 2,084,803 | 2,071,396 | [Business Operations and Financial Review](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E7%87%9F%E9%81%8B%E5%8F%8A%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews the company's Q1 2023 business performance, including segment-specific operational highlights, strategic outlook, and financial structure analysis [Performance Summary](index=5&type=section&id=%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) Q1 2023 saw significant growth in operating revenue and profit attributable to shareholders, driven by the meat product business's operational transformation, key client development, rising chicken prices, and successful food business channel strategies - Revenue and profit **significantly improved**, primarily due to the **successful transformation** of the meat product business operating model, **continuous development** of key accounts and refined processing, and **rising chicken prices**; the food business's **clear and effective channel strategy** also drove **steady profit growth**[32](index=32&type=chunk) [Food Business](index=5&type=section&id=%E9%A3%9F%E5%93%81%E4%BA%8B%E6%A5%AD) The food business achieved 8.7% revenue growth and 14.4% gross profit growth in Q1, driven by increased direct client investment and C-end retail channel promotion for domestic sales, and 19.8% export revenue growth with 60.8% gross profit growth due to RMB depreciation, R&D, and efficiency gains Key Financial Indicators for Food Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 8.7 | | Gross Profit | 14.4 | | Export Food Revenue | 19.8 | | Export Gross Profit | 60.8 | - Domestic food sales team **increased resource allocation to direct clients**, collaborated closely with strategic clients (e.g., large membership stores, convenience store chains, restaurant chains), and **focused resources on promoting family-sized products** across e-commerce platforms, community group buying, and chain supermarkets for C-end retail channels[32](index=32&type=chunk) - Export business benefited from **RMB depreciation**, continuous R&D innovation, optimized product structure, and improved production efficiency, overcoming severe inflation in Japan and low-price competition from Thailand's exports to Japan[32](index=32&type=chunk) [Feed Business](index=5&type=section&id=%E9%A3%BC%E6%96%99%E4%BA%8B%E6%A5%AD) The feed business saw 9.5% revenue growth in Q1 but a 21.9% gross profit decrease due to rising raw material prices; it responded to a sluggish hog market and farming losses by integrating functions, diversifying raw materials, and developing poultry and ruminant feed markets to mitigate risks Key Financial Indicators for Feed Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 9.5 | | Gross Profit | -21.9 | - The market faces a severe situation with an **oversupply of domestic live hogs**, sluggish pork and live hog prices, and **persistently high feed costs** for hog farming leading to **continuous losses**[33](index=33&type=chunk) - Response strategies include accelerating mid-office function integration, strengthening cross-functional collaboration in product R&D, raw material procurement, production processes, quality control, and technical services, and promoting diversified raw material usage to **reduce feed costs**[33](index=33&type=chunk) - Actively investing resources to **strengthen R&D and market development for poultry and ruminant feeds**, exploring markets beyond hog feed, and diversifying product categories to **mitigate market risks**[33](index=33&type=chunk) [Meat Product Business](index=6&type=section&id=%E8%82%89%E5%93%81%E4%BA%8B%E6%A5%AD) The meat product business achieved 30.2% revenue growth and 72.2% gross profit growth in Q1, driven by rising chicken prices due to reduced chick and broiler supply, and operational model adjustments focusing on refined processing, differentiated products, optimized sales channels, and enhanced brand value Key Financial Indicators for Meat Product Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 30.2 | | Gross Profit | 72.2 | - Chicken prices increased by approximately **15% year-on-year**, primarily due to low chick prices at the end of last year leading some parent stock farms to forced molting, resulting in **reduced chick and broiler supply** in Q1 this year[35](index=35&type=chunk) - Operational model adjustments include focusing on **refined processing and differentiated meat products**, increasing output value through close collaboration with key clients; actively developing quality-focused clients such as fresh food chains and membership stores, phasing out price-sensitive clients, and **optimizing sales channels**[35](index=35&type=chunk) - Continuously improving the performance of contract feed, **reducing breeding and broiler farming risks**, and **enhancing the relative competitiveness** of the industrial chain[35](index=35&type=chunk) [Outlook and Strategy](index=6&type=section&id=%E5%B1%95%E6%9C%9B%E8%88%87%E6%88%B0%E7%95%A5) For Q2, the company will lead with food for growth, stabilize feed sales through diversification, improve meat product operations by focusing on end-market development and cash flow, and advance group-wide scaling, diversification, and value-added strategies with digital transformation and supply chain optimization; a new Anhui Bengbu plant is expected to launch in H2, strengthening the Yangtze River Delta market and upgrading the food business - The group's strategy involves a coordinated approach of "**food scaling, feed diversification, and meat product value-adding**," steadily advancing **digital transformation**, optimizing supply chain management, improving operational efficiency, and enhancing the group's overall **industrial competitiveness and anti-cyclical capabilities**[35](index=35&type=chunk) - Construction of **new food processing, broiler slaughter, and feed processing plants** in Bengbu, Anhui Province, is progressing smoothly, with **phased commissioning expected in the second half of this year**, which will help **consolidate and expand the group's market position in the Yangtze River Delta** and elevate the food business strategy[36](index=36&type=chunk) - External uncertainties include the significant impact of the **Russia-Ukraine war** on the global economy and the shock caused by **US dollar interest rate hikes** to the global financial system[35](index=35&type=chunk) [Financial Structure](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E7%B5%90%E6%A7%8B) As of March 31, 2023, the group maintained a healthy financial structure with net assets of approximately RMB 2,343,283 thousand, cash and cash equivalents representing 12.9% of total assets, a slightly increased current ratio of 2.06x, and an interest-bearing debt-to-equity ratio of 17.6% Key Financial Structure Indicators | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Assets (RMB Thousand) | 2,343,283 | 2,323,107 | | Cash and Cash Equivalents as % of Total Assets | 12.9 | - | | Current Ratio (x) | 2.06 | 2.02 | | Interest-Bearing Debt to Equity Ratio (%) | 17.6 | 16.2 | [Other Information](index=1&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section provides additional information on securities transactions, audit committee review, board composition, compliance with listing rules, and details regarding the company's parent entity [Purchase, Sale or Redemption of Securities](index=7&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%AD%89%E5%88%B8) For the three months ended March 31, 2023, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - The company and its subsidiaries did not engage in any purchase, redemption, or sale of listed securities during the reporting period[1](index=1&type=chunk) [Audit Committee](index=7&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The company's Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023 - The Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023[2](index=2&type=chunk) [Board Composition](index=7&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E7%B5%84%E6%88%90) As of the announcement date, the Board of Directors comprises two executive directors (including the Chairman), five non-executive directors, and four independent non-executive directors - The Board of Directors includes **2 executive directors** (Mr. Wei Chun Hsien as Chairman), **5 non-executive directors**, and **4 independent non-executive directors**[12](index=12&type=chunk) [Compliance with Listing Rules](index=1&type=section&id=%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E5%90%88%E8%A6%8F%E8%81%B2%E6%98%8E) Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement, which aims to timely disclose financial information to shareholders and potential investors in compliance with Listing Rule 13.09 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[4](index=4&type=chunk) - This announcement aims to timely disclose the company's financial information to its shareholders and potential investors in compliance with Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) [Parent Company Information](index=6&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd., which indirectly holds approximately 52.04% of its issued shares; the group's operating results are consolidated into DaChan Great Wall's financial statements, which are prepared and published quarterly per Taiwan's securities regulations - The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd. (whose shares are listed on the Taiwan Stock Exchange), with DaChan Great Wall indirectly holding approximately **52.04%** of the company's issued shares[37](index=37&type=chunk) - The group's operating results are consolidated into DaChan Great Wall Enterprise's financial statements, and DaChan Great Wall is required to prepare and publish consolidated quarterly financial reports and its quarterly operating results on its website in accordance with Taiwan's Securities and Exchange Act and Taiwan Stock Exchange listing rules[37](index=37&type=chunk)

Financial Performance - For the year ended December 31, 2022, the company's turnover was RMB 6,195,175, a decrease of 33.7% compared to RMB 9,350,465 in 2021[19] - Profit attributable to owners of the company was RMB 91,852, down 40.9% from RMB 155,473 in 2021[19] - The basic profit per share decreased to RMB 0.09, a decline of 40.9% from RMB 0.15 in 2021[19] - The return on total assets was 3.43%, down 41.0% from 5.81% in 2021[19] - Overall profit attributable to equity shareholders decreased by 40.9% to RMB 91,852 from RMB 155,473 in 2021[46] - In 2022, the Group's turnover from continuing operations was RMB 6,195,175, a decrease of 5.1% compared to RMB 6,530,905 in 2021[46] - The gross profit from continuing operations increased by 2.9% to RMB 680,906, with a gross profit margin of 11.0%, up from 10.1% in the previous year[46] - The Group's operating income was approximately RMB6,195,175 thousand, representing a decrease of about 5.1% compared to the restated figure for the previous year[58] - The food segment accounted for 34.7% of total operating income, the feeds segment for 37.8%, and the meat segment for 27.5%[63] - The Group's gross profit was approximately RMB680,906 thousand, reflecting an increase of about 2.9% year-on-year, with the food segment contributing 61.9% to total gross profit[63] Investment and Expansion - The company invested over RMB 1 billion in the Bengbu DaChan Phase II Project to expand chicken breeding, feeds, slaughter, cooked food, and automated cold storage projects[13] - In 2023, the Group plans to launch new food, electrical slaughterhouse, and feeds plants in Bengbu, enhancing its market position in the Yangtze River Delta region[42] - The new Bengbu food factory is expected to commence production in July 2023, supporting the growth of the food segment[77] - The company aims to increase investment in applied research and development to explore new production technologies and expand its product range[78] Market Trends and Economic Outlook - The Chinese economy is expected to experience a new round of growth in 2023, driven by government macro policies following the impact of COVID-19[43] - In 2022, the national catering revenue was RMB 439.41 billion, a decline of 6.3% compared to 2021 due to the pandemic's impact on consumer behavior[48] - The national market supply of live pigs reached 699 million heads in 2022, an increase of 4.3% from the previous year, with pork production at 55.41 million tonnes, up 4.6%[54] - The total number of grandparent breeding chickens in China was approximately 910,000 sets, a 32% decrease year-on-year due to market downturns[55] Operational Efficiency and Strategy - The Group's strategic focus includes enhancing supply chain efficiency and flexibility to better meet customer needs[38] - The Group aims to enhance overall industrial competitiveness and anti-cyclicality through digital transformation and supply chain management optimization[59] - The Group's meat business maintained steady growth in 2022, supported by an optimized operating structure and synergies between food and meat businesses[37] - The food and meat segments showed steady growth due to continued optimization and restructuring of operations[58] Employee and Management Development - The Group emphasizes employee training and development, offering various programs to enhance job skills and industry knowledge[124] - The Group regularly reviews compensation and benefit policies to provide fair and competitive compensation packages[124] - The Group provides additional fringe benefits, including insurance, medical benefits, and provident fund, to retain loyal employees[124] - The Group's management team includes experienced professionals with extensive backgrounds in the food and beverage industry[127][129] - The company has a strong leadership team with members holding significant positions in various subsidiaries and associations related to the food and agriculture sectors[149] Corporate Governance and Financial Management - The company is committed to enhancing corporate governance standards to maintain trust with employees, partners, shareholders, and investors[200] - The company has adopted the latest corporate governance code as per the Hong Kong Stock Exchange Listing Rules to guide its governance practices[200] - The company has maintained a commitment to financial transparency and governance through its independent directors and committees[175][177] - The company has a robust history of financial management, with past executives having significant experience in banking and investment sectors[186]

Financial Performance - For the nine months ended September 30, 2022, the company's operating revenue was approximately RMB 4,512,433 thousand, a decrease of 9% compared to RMB 4,957,866 thousand for the same period in 2021[2] - The gross profit for the same period was RMB 504,235 thousand, showing a slight increase of 0.8% from RMB 500,465 thousand in the previous year, resulting in a gross margin of 11.2%[2] - The profit attributable to shareholders for the nine months was RMB 65,830 thousand, down 33% from RMB 98,305 thousand in the prior year[2] - Basic earnings per share for the nine months was RMB 0.065, compared to RMB 0.097 in the same period last year, reflecting a decrease of 33%[2] - In Q3 2022, the company reported operating revenue of approximately RMB 1,715,549 thousand, an increase of 17.5% from Q2 2022 and a 1.8% increase year-over-year[28] - The profit attributable to shareholders in Q3 2022 was approximately RMB 32,028 thousand, up 13.6% from Q2 2022 and a 42.5% increase compared to the same period last year after excluding Southeast Asia feed business profits[28] Business Challenges - The decline in revenue and profit for the first three quarters was primarily due to the challenges faced by small to medium-sized farms in the feed business, which reduced their inventory or ceased operations due to prolonged low pig prices[29] - Despite a 9.4% year-on-year decline in export revenue due to domestic inflation and low-price competition from Thailand, the food business achieved a gross profit increase of approximately 118.2% year-on-year in the same period[30] - The domestic food revenue growth slowed to approximately 5.6% year-on-year due to the impact of COVID-19 and weak consumer demand[30] - The feed business revenue and gross profit decreased by approximately 22.6% and 36.9% year-on-year, respectively, due to rising raw material costs and a decline in customer breeding volumes[32] Asset Management - As of September 30, 2022, the company's total assets less current liabilities amounted to RMB 2,626,474 thousand, compared to RMB 2,577,075 thousand as of December 31, 2021[14] - The company's non-current assets, including fixed assets, were valued at RMB 1,148,298 thousand as of September 30, 2022, compared to RMB 1,019,618 thousand at the end of 2021[7] - As of September 30, 2022, the company's net assets were approximately RMB 2,331,306 thousand, with cash and cash equivalents accounting for about 18.5% of total assets[35] - The current ratio as of September 30, 2022, was approximately 2.12, slightly down from 2.29 as of December 31, 2021[35] Strategic Focus - The company emphasized a strategy focused on customer retention and supply chain restructuring rather than blind expansion in the current challenging economic environment[28] - The company plans to continue focusing on food business growth, enhance research and development, and optimize supply chain management to improve overall competitiveness and resilience[35] Segment Performance - In the first three quarters of 2022, the food business revenue and gross profit increased by approximately 3.2% and 7.7% year-on-year, respectively[30] - The gross profit of the feed business increased by approximately 65.2% compared to the second quarter of 2022, as the domestic pig prices rebounded in August[32] - The meat business revenue remained stable year-on-year, while gross profit increased by approximately 105.3%[33] - The gross profit of the meat business increased by approximately 34.8% compared to the second quarter of 2022, driven by supply chain restructuring and customer optimization[33]

Economic Performance - In the first half of 2022, China's GDP achieved a year-on-year growth of 2.5% despite significant economic fluctuations due to the pandemic[60]. - The company’s performance in the first half of 2022 reflects its resilience in a volatile economic environment[61]. - The overall performance of the group is comparable to most peers despite the decline in profit from the feed segment[77]. Profitability and Revenue - Profit attributable to shareholders decreased by approximately 52.6% to RMB33,802 thousand, with a 35.5% decrease when excluding profits from the Southeast Asia feed business[75]. - The gross profit margin for the foods segment increased by approximately 10.9% year-on-year despite unfavorable market conditions[78]. - Food export income decreased by about 18.6% in the first half of 2022, but gross profit from food exports increased by approximately 55.7% due to R&D innovation and production automation[78]. - Domestic sales of food experienced a gross profit growth of approximately 7.4% year-on-year, aided by strategic responses to COVID-19 challenges[78]. - The total turnover for processed foods reached RMB 1,003,973,000, representing a 2.4% increase compared to RMB 980,076,000 in the previous year[90]. - The gross profit for processed foods increased by 10.9% year-on-year, totaling RMB 197,280,000[90]. - The gross profit margin for processed foods improved to 19.6%, up from 18.2% in the previous year[90]. - The total profit for reportable segments decreased to RMB 306,405,000 in the first half of 2022 from RMB 446,551,000 in the same period of 2021, reflecting a decline of approximately 31.4%[194]. Challenges and Strategic Responses - The company faced challenges such as rising raw material prices and unstable demand due to COVID-19 and African swine fever outbreaks[60]. - The domestic food consumption growth was impacted by the pandemic, but the company's timely adjustments in sales strategies helped maintain positive growth[61]. - The company emphasized the need for continuous management optimization and robust financial operations to cope with future uncertainties[60]. - The company’s adaptability and quick response to market changes were crucial in sustaining performance during challenging times[61]. - The feeds segment is focusing on R&D to provide higher value feed products and is expanding into niche markets beyond pig feeds[99]. - The meat segment adjusted its operational model to focus on differentiated product development and large customers, achieving results comparable to peers despite unfavorable market conditions[107]. Operational Efficiency and Management - The food business team successfully overcame logistics and distribution issues during the pandemic, providing stable support for operational development[62]. - The company is focusing on optimizing internal organization and enhancing management capabilities to improve competitiveness in a challenging business environment[68]. - The new plant in Bengbu is planned to feature automated production and digital management to strengthen the company's competitiveness[68]. - The management team remains confident in overcoming challenges through continuous improvement in management and competitiveness[69]. - The Group aims to enhance operational efficiency and overall industrial competitiveness through digital transformation and optimized supply chain management[86]. Financial Position and Cash Flow - The Group's cash and bank deposit balances decreased by approximately RMB25,712 thousand to RMB599,347 thousand as of June 30, 2022[114]. - Interest-bearing borrowings increased by approximately RMB33,074 thousand to RMB440,566 thousand, with the interest-bearing borrowings to equity ratio at 19.2%[118]. - Capital expenditure for the first six months of 2022 amounted to approximately RMB73,466 thousand, primarily funded by long-term bank loans[119]. - The Group's interest expense decreased by approximately 31.1% to RMB4,300 thousand, primarily due to a reduction in bank borrowings[121]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 80,719 thousand, compared to RMB 34,586 thousand for the same period in 2021, indicating a significant increase of approximately 133.5%[149]. - The cash generated from operations for the first half of 2022 was RMB 88,110 thousand, compared to RMB 50,373 thousand in the same period of 2021, an increase of approximately 75.1%[149]. Cost Management - Distribution costs were reduced to RMB 143,795,000 in the first half of 2022 from RMB 199,610,000 in 2021, showing a decrease of about 28%[194]. - Administrative expenses decreased to RMB 118,246,000 in the first half of 2022 from RMB 142,859,000 in 2021, a reduction of approximately 17.3%[194]. - Finance costs significantly decreased to RMB 4,300,000 in the first half of 2022 from RMB 11,965,000 in 2021, indicating a reduction of about 64%[194]. Market Focus and Product Development - The Group plans to focus on food as the leading segment while maintaining stable sales in feeds and diversifying market risks through product diversification[86]. - The Group is increasing efforts in developing direct sales customers and enhancing promotion of family-sized products across various retail channels[94]. - The Group is committed to product innovation by exploring new production technologies and expanding its product range to meet market demand[94]. Discontinued Operations - The Group disposed of subsidiaries in Vietnam and Malaysia in Q4 2021 to focus on its business in Mainland China, with the financial results of these subsidiaries presented as discontinued operations[200]. Accounting and Reporting - The interim financial report does not include all information required for a full set of financial statements prepared in accordance with IFRS, highlighting the need for caution in interpreting the data[162]. - The auditors expressed an unqualified opinion on the statutory financial statements for the year ended December 31, 2021, affirming the reliability of the financial reporting[163].

Financial Performance - The company's operating revenue for Q1 2022 was approximately RMB 1,336,395 thousand, a decrease of about 17% compared to the same period last year[11]. - Shareholders' profit attributable to the company was approximately RMB 5,599 thousand, down approximately 91.9% year-on-year[11]. - The gross profit margin decreased to 10.7% from 12.5% in the previous year[4]. - The decline in revenue and profit was primarily due to rising raw material prices and losses in pig farming, leading to reduced feed sales[11]. - Export revenue decreased by approximately 31.9% due to economic downturns in Japan and low-priced competition from Thailand[12]. - In the first quarter, the feed business reported a revenue decline of approximately 29.4% and a gross profit decline of 43.4% compared to the same period last year[13]. - The meat business experienced a revenue decline of about 12.9% and a gross profit decline of 70.4% year-over-year, primarily due to falling chicken prices and rising feed costs[14]. Asset and Liability Management - The net asset value of the company as of March 31, 2022, was RMB 2,279,688 thousand, an increase from RMB 2,269,547 thousand at the end of 2021[9]. - The company reported a decrease in total liabilities from RMB 864,186 thousand to RMB 783,796 thousand[6]. - As of March 31, 2022, the company's net assets were approximately RMB 2,279,688 thousand, with cash and cash equivalents accounting for about 16.6% of total assets[15]. - The current ratio as of March 31, 2022, was approximately 2.42, slightly up from 2.29 on December 31, 2021[15]. - The ratio of interest-bearing debt to equity was approximately 16.5% as of March 31, 2022, down from 18.0% at the end of 2021[15]. Strategic Initiatives - The company is actively seeking opportunities in the food sector by targeting potential customers less affected by the pandemic, such as community group purchases[12]. - The food team is focusing on product innovation and exploring new processes to enrich product variety[12]. - The company plans to enhance its retail business by promoting family-sized products through e-commerce platforms and community convenience stores[12]. - The company is focusing on product diversification to mitigate market risks and improve operational efficiency across its food, feed, and meat businesses[15]. - The company is actively developing niche products and expanding into markets beyond pig feed to enrich its product offerings[14]. - The company plans to strategically eliminate underperforming farms and reduce breeding and slaughtering scales to mitigate losses in the meat business[14]. Market Conditions and Challenges - The ongoing impact of the COVID-19 pandemic and geopolitical tensions are expected to continue affecting the global and domestic economy[15]. - The company is committed to digital transformation and enhancing supply chain management to strengthen overall industry competitiveness and risk resilience[15].

Financial Performance - For the year ended December 31, 2021, the turnover was RMB 9,350,465, representing a 0.8% increase from RMB 9,278,864 in 2020[17] - Profit attributable to owners of the Company decreased by 23.4% to RMB 155,473 from RMB 202,890 in the previous year[17] - Total assets decreased by 20.5% to RMB 3,441,261 from RMB 4,329,284 in 2020[17] - The return on total assets was 5.81%, down from 7.02% in 2020, reflecting a decline of 17.2%[17] - Basic profit per share fell by 25.0% to RMB 0.15 from RMB 0.20 in 2020[17] - The net profit margin for the year was 1.1%, down from 2.6% in 2020[21] - The gross profit for 2021 was RMB 819.0 million, reflecting a year-on-year decline of 20.1%, with a gross profit margin of 8.8%[45] - The overall operating profit of the group decreased by approximately 30% year-on-year, but it still maintained a positive profit performance[31] - In 2021, the profit attributable to shareholders decreased by approximately 23.4% year-on-year, amounting to approximately RMB 155,473 thousand, marking the second highest profit in the past ten years[53][55] - The total gross profit for 2021 was approximately RMB 819,048 thousand, reflecting a year-on-year decrease of approximately 20.1%[69] Market Challenges and Strategies - The company faced challenges including a slowdown in consumer demand growth, rising costs, and a significant decline in profitability in the food export segment due to unfavorable market conditions[31] - Despite these challenges, DaChan Food's turnover in the PRC (excluding Southeast Asia) grew by approximately 6.2% year-on-year[31] - The company sold its Southeast Asian feed business to strengthen its financial position and support the construction of a new plant in Bengbu[42] - DaChan Food plans to complete the Bengbu plant by the second quarter of 2023, despite delays caused by rising construction costs[34] - The company is optimistic about the long-term growth of the domestic consumption market in China and will focus resources on this area[34] - Investment in human resources and the development of a digital supply chain system are part of the company's strategy to enhance competitiveness[34] - The Group plans to strengthen cash flow management and reduce operating costs while exploring new growth sources[65] - The Group is focusing on product diversification to mitigate market risks, particularly in the feeds segment[65] Production and Operational Insights - The production volume of live pigs in China reached 670 million in 2021, an increase of 27.4% year-on-year, while pork production was 52.96 million tons, up 28.8% year-on-year[51] - The production capacity of white feather meat chicken reached 5.38 billion in 2021, representing a year-on-year increase of 7.8%, the highest in the past ten years[51] - The domestic feeds segment's operating income increased by approximately 12.5% year-on-year, despite challenges from rising raw material costs[59] - The gross profit of the domestic feeds segment remained flat year-on-year despite rising raw material costs, indicating strong product competitiveness[61] - The Group is actively promoting family-sized products across various retail channels, including e-commerce platforms and community stores, to improve market reach[54][56] Leadership and Governance - Mr. Harn Jia-Chen has been re-designated as an executive director and chairman of the board since March 1, 2020, after serving as a non-executive director since 2007[125] - The company has a strong leadership team with extensive experience in the food and agriculture sectors, enhancing its strategic direction and operational efficiency[128] - The board of directors includes members with significant experience in investment management and agricultural economics, supporting informed decision-making[130] - The Company has adopted a corporate governance code based on the Listing Rules to enhance corporate transparency and governance standards[162] - The Board consists of 9 directors, all industry leaders, responsible for overseeing management performance and evaluating management policies[181] Future Outlook and Investments - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to $1.32 billion[136] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[137] - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[138] - Market expansion plans include entering three new countries, which are projected to increase market share by 5%[139] - The company is considering strategic acquisitions to bolster its supply chain, with a budget of $100 million allocated for potential deals[140] Sustainability and Corporate Responsibility - The board of directors emphasized the importance of sustainability initiatives, committing to a 40% reduction in carbon emissions by 2025[143] - The Group emphasizes high standards of quality control and has implemented a traceability system for its products[13] - DaChan Food aims to enhance the efficiency and additional value of the entire food production chain while fulfilling its social responsibilities[11]

Market Conditions - The export markets in Southeast Asia and Japan continue to be affected by the pandemic, while the Chinese market shows stability and improvement due to effective vaccination efforts[17]. - The price of pigs has reached record lows, impacting chicken meat prices, with a pessimistic outlook for the chicken market in the second half of 2021[18]. - Rising costs of feeds and commodities are expected due to the recovery of the global economy, alongside long-term trends of increasing wages and labor shortages[18]. - Domestic food prices in China fell by 0.2% in the first half of 2021, influenced by a 19.3% average decrease in pork prices over nine consecutive months[41]. Financial Performance - The company's turnover for the first half of 2021 was RMB 5,100,261, representing a year-on-year increase of 20.7% compared to RMB 4,227,285 in 2020[28]. - Gross profit decreased to RMB 446,551, down 5.9% from RMB 474,400 in the previous year, resulting in a gross profit margin of 8.8% compared to 11.2% in 2020[28]. - Profit attributable to shareholders was RMB 71,347, reflecting a decline of 16.2% from RMB 85,144 in the same period last year[28]. - The total operating income for the first six months of 2021 was RMB 3,291,395 thousand, representing a 32.1% increase from RMB 2,491,614 thousand in 2020[58]. - The Group's profit for the period was RMB 94,420 thousand, down approximately 30.1% from RMB 135,059 thousand in the first half of 2020[100]. - The total comprehensive income for the period was RMB 97,935 thousand, a decrease of approximately 26.3% from RMB 132,806 thousand in the same period of 2020[100]. Segment Performance - Domestic sales of the food segment increased by approximately 28% year-on-year, despite export sales declining by approximately 28.2% due to the impact of COVID-19 in Japan[35]. - The overall operating revenue of the food segment grew by approximately 12.7% year-on-year, with gross profit remaining stable compared to the previous year[35]. - The domestic feed segment's overall sales increased by approximately 15% year-on-year, with gross profit rising by approximately 18.1%[36]. - The processed food segment's turnover in Mainland China increased by 30.4% year-on-year to RMB 820,350 thousand, while export turnover decreased by 33.6% to RMB 159,726 thousand[49]. - The gross profit margin for the processed food segment in Mainland China was 20.1%, down from 22.0% in the previous year[49]. - The meat product segment's gross profit decreased slightly by approximately 9% year-on-year despite significant cost increases[41]. Strategic Initiatives - The company plans to accelerate its transformation and upgrade efforts, focusing on consolidating its feed business and developing processed food products[20]. - Emphasis will be placed on research and development to reduce feed costs and launch high-value-added products[20]. - The company aims to enhance breeding efficiency through improved breeding techniques and feed upgrades, while expanding sales channels[20]. - Short-term focus will be on upgrading existing flagship products and long-term focus on developing new products in the processed food sector[20]. - The overall strategy includes leveraging information technology to improve supply chain efficiency[20]. - The company plans to enhance its product offerings by developing new products and upgrading existing ones, particularly in processed foods[22]. Cost Management - The company is actively introducing solutions to help customers control costs in the feed segment, particularly in response to high raw material prices[36]. - The gross profit of Southeast Asia's feeds segment dropped by approximately 27.5% year-on-year due to rising raw material costs, while feed sales increased by approximately 20% year-on-year[39]. Investments and Assets - The Group is progressing with a major investment in a new plant in Bengbu, which is expected to enhance its foodization strategy[45]. - Capital expenditure for the first half of 2021 amounted to approximately RMB 54,566 thousand, primarily funded by long-term bank loans[82]. - The Group acquired fixed assets at a cost of RMB 54,566,000 for the six months ended 30 June 2021, a decrease of 16.5% compared to RMB 65,471,000 for the same period in 2020[186]. Cash Flow and Liquidity - As of June 30, 2021, the cash and bank deposits balance was approximately RMB 678,566 thousand, an increase of RMB 47,196 thousand from December 31, 2020[77]. - The company reported a net cash generated from operating activities of RMB 34,586 thousand for the six months ended June 30, 2021, compared to RMB 97,117 thousand for the same period in 2020, a decrease of 64.3%[117]. - The Group's current ratio was approximately 1.64 times, indicating a healthy liquidity position compared to 1.56 times as of December 31, 2020[81]. Taxation and Compliance - The company continues to benefit from a preferential tax rate of 15% for certain subsidiaries due to their high-tech enterprise status, compared to the standard rate of 25%[164]. - The applicable corporate income tax rate for the company's subsidiary in Malaysia was 24% for the six months ended June 30, 2021, unchanged from the same period in 2020[166]. - The corporate income tax rate for Asia Nutrition Technologies (MV) Co., Ltd. was 20% for the six months ended June 30, 2021, consistent with the previous year[175]. Inventory and Receivables - Trade receivables as of 30 June 2021 amounted to RMB 303,773,000, down from RMB 325,882,000 at the end of 2020, reflecting a decrease of 6.8%[192]. - The allowance for doubtful debts decreased to RMB 17,284,000 from RMB 24,360,000, indicating improved credit quality[192]. - Deposits and prepayments increased significantly to RMB 300,672,000 from RMB 195,596,000, indicating higher advance payments to suppliers[198].

Financial Performance - For the year ended December 31, 2020, the turnover increased by 15.5% to RMB 9,278,864,000 compared to RMB 8,035,206,000 in 2019[15] - Profit attributable to owners of the Company rose by 51.8% to RMB 202,890,000 from RMB 133,683,000 in the previous year[15] - Total assets increased by 7.0% to RMB 4,329,284,000, while net assets grew by 12.9% to RMB 2,272,303,000[15] - Basic profit per share increased by 53.8% to RMB 0.20, up from RMB 0.13 in 2019[15] - Return on total assets improved to 7.02%, a 37.9% increase from 5.09% in 2019[15] - The gearing ratio decreased by 19.4% to 35.4% from 43.9% in the previous year, indicating improved financial stability[15] - Gross profit for 2020 reached RMB 1,025,518, reflecting a 4.5% increase from RMB 981,575 in 2019[40] - The gross profit margin decreased to 11.1% in 2020 from 12.2% in 2019[40] - The Group's operating income for 2020 was approximately RMB 9,278,864 thousand, representing a year-on-year increase of about 15.5%[53] - The gross profit amounted to approximately RMB 1,025,518 thousand, reflecting a growth of approximately 4.5% compared to the previous year[56] - The gross profit margin for the total feeds segment was 9.4%, down from 10.0% the previous year[75] - Gross profit increased by approximately 19.9% to RMB 413,383,000 in 2020 from RMB 344,836,000 in 2019[83] - Gross profit margin improved to 21.8% in 2020 from 16.9% in 2019[83] - The gross profit from Mainland China increased by 22.5% to RMB 353,001,000 in 2020 from RMB 288,198,000 in 2019[83] Market and Operational Challenges - The outbreak of COVID-19 severely impacted the domestic economic activities, particularly affecting the white feather meat chicken industry, leading to a 63% year-on-year drop in the price of day-old chicks[42] - The comprehensive price of feather chickens and chicken meat products fell by approximately 24% and 19% year-on-year, respectively[42] - The company actively supported farmers during the pandemic by ensuring feed supply and contract recovery of processed chickens[44] - The Group successfully compensated for declining sales in traditional channels by increasing sales through new channels such as e-commerce and community group buying[47] Strategic Initiatives and Product Development - The Company focuses on developing new high value-added products by utilizing the latest food technology to meet changing market demands[9] - The Group emphasizes quality control and has implemented a traceability system for its products, enhancing consumer trust[12] - The Group plans to invest approximately RMB 1 billion to build a new food processing plant with a monthly capacity of 4,000 tons in Bengbu City, Anhui Province, expected to be operational by the end of 2022[94] - The Group aims to enhance product competitiveness by concentrating resources on product research and development in the professional catering market[94] - The Group's strategic focus includes integrating the broiler industry chain and enhancing vertical integration with upstream breeding operations[52] Employee and Management Information - The Group had a total of 10,470 employees as of 31 December 2020, an increase from 9,900 employees in 2019[111] - The company has a diverse management team with extensive experience in the food industry and technology sectors[120] - The board includes members with significant experience in both traditional industries and information technology management[120] - Mr. Wei, Chun-hsien has been appointed as an executive director and chairman of the board since March 1, 2021[115] - Mr. Wei Anning has extensive experience in the integration of finance and the agricultural and livestock food industry, with a deep understanding of its development and corporate governance[133] Corporate Governance - The Company is committed to enhancing corporate governance standards and improving transparency to maintain trust with employees, partners, shareholders, and investors[155] - The Company has adopted a corporate governance code based on the latest revised code on corporate governance as set out in the Listing Rules[155] - Throughout the year ended December 31, 2020, the Company has complied with the Code Provisions with certain exceptions[155] - The Board comprised 8 Directors, all being industry veterans, responsible for formulating business development targets and long-term company strategies during the period from January 1, 2020, to March 1, 2020[164] - The Company has maintained a mechanism that allows the Company Secretary to promptly access information regarding the Group's developments without material delay[157] - The independent non-executive Directors have reviewed the Confirmation regarding the Deed of Non-Competition and are satisfied with the compliance during the review period[160] - The Company has fully complied with the relevant code provisions and Listing Rules following the appointment of Mr. Ting Yu-Shan[161] Financial Management - The Group's interest-bearing borrowings decreased by approximately RMB77,971 thousand to approximately RMB804,651 thousand as of 31 December 2020, compared to approximately RMB882,622 thousand in 2019, resulting in an interest-bearing borrowings to equity ratio of approximately 35.4%[98] - The Group's capital expenditure on the acquisition of properties, machinery, and equipment amounted to approximately RMB208,578 thousand in 2020, primarily funded by internal resources and bank borrowings[100] - The Group's interest expense in 2020 was approximately RMB31,336 thousand, a decrease of approximately 31.7% from RMB45,860 thousand in 2019, mainly due to decreasing borrowing rates[106] Sales and Marketing Strategies - The company launched family-sized products and utilized various channels such as live e-commerce and community group purchases to adapt to changing consumer habits[45] - The processed food segment's sales channels include group catering, bakery, casual catering, takeaways, and retail markets, covering regions such as Japan, Singapore, and various areas in China[87] - The development of community group buying platforms has successfully launched "Sisters' Kitchen" products on all top ten platforms in China[91]

COVID-19 and Market Challenges - The management team of DaChan Food has effectively responded to challenges posed by COVID-19 and African swine fever, achieving excellent performance in the first quarter of 2020[12]. - The COVID-19 pandemic led to significant declines in the food and beverage industry, particularly affecting demand for half- and fully-cooked chicken products[12]. - Recruitment difficulties at meat and food factories were exacerbated by the pandemic, impacting operational management across various centers in China[12]. - The livestock industry in China is undergoing reshuffling, with some pig breeding enterprises thriving while others are declining[12]. - The management team remains united and vigorous in addressing market challenges and adapting to new industry changes[12]. Financial Performance - DaChan Food's performance in the first half of 2020 reflects resilience despite adverse market conditions[12]. - DaChan Food's turnover for the first half of 2020 was RMB 4,227,285 thousand, representing a 14.1% increase compared to RMB 3,705,849 thousand in the same period of 2019[24]. - The gross profit for the first half of 2020 was RMB 474,400 thousand, up 20.9% from RMB 392,482 thousand year-on-year[24]. - Profit attributable to shareholders surged to RMB 85,144 thousand, a significant increase of 544.5% compared to RMB 13,210 thousand in the previous year[24]. - The profit for the period increased significantly to RMB 135,059 thousand in 2020 from RMB 37,213 thousand in 2019, representing a growth of 263%[76]. Segment Performance - The gross profit margin for the meat product segment decreased from 8.4% to 6.6%, with a year-on-year decrease in profit of approximately RMB 11,028 thousand[28]. - The sales volume of feeds increased by approximately 47.1% year-on-year, with the gross profit margin rising from 7.7% to 9.3%, resulting in an increase of RMB 45,200 thousand in gross profit[28]. - The processed food segment achieved a year-on-year operating income growth of approximately 3.8%, despite a slight decrease in sales volume[30]. - The gross profit margin of the processed food segment increased from approximately 15% to approximately 18.3% year-on-year, resulting in an increase of RMB 36,385 thousand in gross profit[30]. - The total turnover for the Southeast Asia segment was RMB 2,501,004 thousand, reflecting a 21.7% increase compared to RMB 2,055,211 thousand in the previous year[45]. Market Conditions and Strategic Responses - The overall demand for pig feed has decreased, and the pig slaughter rate recovery remains sluggish due to ongoing issues with African swine fever in China, Vietnam, and Malaysia[12]. - The company aims to leverage the interim report to inform shareholders about the evolving livestock industry and its strategic responses[12]. - DaChan Food has expanded its product offerings to include poultry and ruminant feed customers in response to market challenges[17]. - The company is increasing its R&D investment in preparation for a comprehensive ban on antibiotics[17]. - The introduction of strategic cooperation partners has improved the quality and supply of day-old chicks, benefiting overall farming efficiency[44]. Cash Flow and Financial Position - As of June 30, 2020, the Group's cash and bank deposit balances amounted to approximately RMB 589,591 thousand, an increase of approximately RMB 219,489 thousand compared to December 31, 2019[60]. - Cash generated from operations for the six months ended June 30, 2020, was RMB 123,163 thousand, an increase of 69% compared to RMB 72,702 thousand in 2019[99]. - Net cash generated from operating activities was RMB 97,117 thousand, up 56% from RMB 62,354 thousand in the same period last year[99]. - The net increase in cash and cash equivalents for the period was RMB 217,219 thousand, compared to a decrease of RMB 49,932 thousand in the previous year[99]. - Cash and cash equivalents increased to RMB 589,591 thousand from RMB 370,102 thousand, showing a substantial rise of 59%[80]. Taxation and Compliance - The corporate income tax rate for the Group entities in the PRC remained at 25% for the six months ended June 30, 2020, consistent with the previous year[176]. - The corporate income tax rate for the subsidiary in Malaysia was 24% for the six months ended June 30, 2020, unchanged from the prior year[177]. - Asia Nutrition Technologies (VN) Co., Ltd. was subject to a preferential corporate income tax rate of 15% for the six months ended June 30, 2020, the same as the previous year[178]. - The report indicates that the company has not applied any new standards or interpretations that are not yet effective for the current accounting period[134]. - The interim financial report was authorized for issue on August 5, 2020, and complies with International Accounting Standards[106].

Financial Performance - For the year ended December 31, 2019, the turnover reached RMB 8,035,206, representing an increase of 11.7% compared to RMB 7,191,911 in 2018[16] - Profit attributable to owners of the Company was RMB 133,683, a significant increase of 917.8% from the previous year's profit of RMB 13,135[16] - Total assets increased by 3.7% to RMB 4,047,937 from RMB 3,903,038 in 2018[16] - The net assets rose by 10.1% to RMB 2,012,482, compared to RMB 1,827,849 in 2018[16] - Basic profit per share increased to RMB 0.13, up 1,200.0% from RMB 0.01 in 2018[16] - Return on total assets improved to 5.09%, a 220.1% increase from 1.59% in 2018[16] - The gearing ratio decreased significantly to 43.9% from 62.1%, reflecting a reduction of 29.3%[16] - Gross profit for 2019 was RMB 981,575, representing a 29.1% increase from RMB 760,300 in 2018[37] - The gross profit margin improved to 12.2% in 2019, up from 10.6% in 2018[37] - The Group's gross profit amounted to approximately RMB 981,575 thousand, representing an increase of approximately 29.1% compared to last year[47] - The gross profit margin for the feeds segment increased to 10.0%, up from 7.5% in the previous year[65] - The gross profit of the meat segment increased by approximately RMB 69,372 thousand, representing a growth of 53.3% compared to the same period last year[59] - The gross profit margin for the total processed food segment was 16.9%, down from 17.2% in 2018[72] - The gross margin improved to 35%, up from 30% in the previous year, indicating better cost management[144] Market Segmentation - The meat segment accounted for 54.5% of total turnover, while feeds to external customers contributed 25.4% and processed foods made up 15.8%[19] - The food segment's revenue accounted for 34.5% of the Group's total operating income, ranking first among the three domestic segments in the PRC[47] - The Group's meat segment accounted for 20.1% of total operating income[47] - The domestic chicken meat supply increased by approximately 15% compared to 2018, driven by the demand for chicken as an alternative to pork due to African swine fever[40] - Domestic food sales volume increased by 10%[45] - The sales volume of poultry feed increased by 31.9% year-on-year, with its proportion in total sales volume rising from 30.3% to 37.4%[67] Strategic Initiatives - DaChan Food aims to invest heavily in biotechnology and information technology innovations to enhance its competitive edge in the market[10] - The company plans to leverage its one-stop service advantage to expand its food product offerings post-COVID-19[26] - The company aims to expand its market share in the food segment, particularly in baking, group meals, and catering enterprises affected by the pandemic[26] - The Group expects that by 2020, 50% of day-old chicks will be supplied by self-owned farms[42] - The Group aims to achieve 50% of day-old chicks from self-breeding farms and cooperative farms in 2020, with the remaining 50% sourced through strategic cooperation contracts[63] - The company is actively adjusting its product structure and optimizing processes in response to rising raw meat prices[78] - The company plans to enhance its core competitiveness in poultry feeds and strengthen the management of bulk raw materials procurement systems[71] - The company is exploring new strategies for market expansion and product development, leveraging its experienced management team[100] - The company is investing $10 million in R&D for new technologies aimed at enhancing product quality and efficiency[106] - Market expansion plans include entering two new countries, which are projected to add $30 million in revenue within the first year[104] Management and Governance - The company has a strong leadership team with extensive experience in finance and the agricultural and livestock food industry, enhancing its operational capabilities[100] - The board includes members with diverse backgrounds, including agricultural economics and food industry management, which supports strategic decision-making[100] - The company has been focusing on integrating finance with agricultural and livestock food operations, aiming for enhanced efficiency and growth[98] - The leadership team has held significant positions in various financial and agricultural organizations, indicating a robust network and industry knowledge[100] - The Board comprises 8 Directors, all being industry veterans responsible for formulating overall business development targets and long-term company strategies[132] - The independent non-executive Directors account for one-third of the Board members, ensuring high standards of financial and mandatory reporting[138] - The Company has a clear policy for the segregation of duties and responsibilities between the Board and management[1] - The Board has established a Nomination Committee to set standards for appointing high-quality Directors to achieve sustainable development[158] - The Company adopted a Board Diversity Policy on 9 August 2013 to enhance the effectiveness of the Board[197] Challenges and Responses - The COVID-19 outbreak has introduced uncertainties affecting operations and financial conditions, prompting the Group to implement contingency measures[82] - The management team is focused on minimizing the impact of COVID-19, benefiting from government support for the feeds and meat segments[26] - The company is considering strategic acquisitions to bolster its market position, with a budget of $25 million allocated for potential deals[106] - The company is focusing on developing customer bases in regions like Singapore and Hong Kong to diversify export market risks[82] Future Outlook - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 20% to $600 million[106] - The company announced plans for market expansion into Southeast Asia, targeting a 15% market share within the next three years[123] - The company provided an optimistic outlook for 2020, projecting a revenue growth of 10% to 12%, driven by new product launches and market expansion strategies[123] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[105] - The company has achieved a gross margin of 40%, reflecting improved operational efficiency compared to the previous year[104] Employee and Training - The Group had a total of 9,900 employees as of December 31, 2019, down from 10,619 employees in 2018, with a focus on employee training and development[94] - Directors received training on their roles and responsibilities, including legal and regulatory developments, during the period from January 1, 2019, to December 31, 2019[167] - The Company ensures that newly appointed Directors are acquainted with their duties and the business operations[162] Financial Health and Investments - The company reported a significant increase in revenue for the year ended December 31, 2019, with total revenue reaching approximately $1.2 billion, representing a year-over-year growth of 15%[123] - The company has a strong management team with extensive experience in finance, including Mr. Chang Chin-Pyng, who has served as Chief Financial Officer since January 1, 2019, and has a background in investment and financial management[116] - The company has implemented new strategies to enhance customer engagement, resulting in a 25% increase in customer retention rates[144] - The board of directors has approved a dividend payout of $0.50 per share, reflecting confidence in the company's financial health[106]