Financial Performance - Revenue for 2022 was RMB 62.58 billion, a decrease of 6.16% compared to 2021[13] - Net profit attributable to shareholders in 2022 was RMB 5.62 billion, an increase of 15.51% year-on-year[13] - Operating cash flow in 2022 was RMB 7.57 billion, up 25.38% compared to 2021[13] - Basic earnings per share (EPS) for 2022 was RMB 1.6223, an increase of 15.52% year-on-year[13] - Total assets at the end of 2022 were RMB 36.41 billion, a 7.17% increase compared to the end of 2021[13] - The weighted average return on equity (ROE) for 2022 was 25.43%, an increase of 3.63 percentage points compared to 2021[13] - Revenue for Q1, Q2, Q3, and Q4 were 13.76 billion yuan, 14.14 billion yuan, 16.63 billion yuan, and 18.04 billion yuan respectively[16] - Net profit attributable to shareholders for Q1, Q2, Q3, and Q4 were 1.46 billion yuan, 1.27 billion yuan, 1.34 billion yuan, and 1.56 billion yuan respectively[16] - Non-recurring gains and losses for 2022 amounted to 404.16 million yuan, a decrease from 431.83 million yuan in 2021[18] - Government subsidies in 2022 were 345.98 million yuan, down from 434.29 million yuan in 2021[18] - The company's total revenue for 2022 was 6,257,563.59 million yuan, with a gross profit margin of 16.39%, an increase of 1.04 percentage points year-on-year[37] - The company's direct sales revenue was 1,187,713.91 million yuan, with a gross profit margin of 4.89%, a decrease of 0.90 percentage points year-on-year[37] - The company's distribution revenue was 5,069,849.68 million yuan, with a gross profit margin of 19.09%, an increase of 1.57 percentage points year-on-year[37] - Operating revenue in 2022 was RMB 62.76 billion, a year-on-year decrease of 6.1%[48] - Net profit attributable to shareholders in 2022 was RMB 5.62 billion, a year-on-year increase of 15.5%[48] - Revenue from the meat products industry accounted for 43.45% of total revenue, with a slight decrease of 0.59% year-on-year[49] - Revenue from the slaughtering industry accounted for 53.47% of total revenue, with a significant decrease of 14.36% year-on-year[49] - Revenue from other industries increased by 15.45% year-on-year, accounting for 11.64% of total revenue[49] - Revenue from the Yangtze River以北 region accounted for 66.59% of total revenue, with a year-on-year decrease of 7.81%[50] - Revenue from the Yangtze River以南 region accounted for 33.41% of total revenue, with a year-on-year decrease of 2.69%[50] - Direct sales accounted for 18.98% of total revenue, with a year-on-year decrease of 3.59%[50] - Distribution sales accounted for 81.02% of total revenue, with a year-on-year decrease of 6.74%[50] - The company's operating cash flow increased by 25.38% to 7.57 billion yuan in 2022, despite a 4.18% decrease in operating cash inflows[67][68] - Investment cash inflows decreased by 40.49% to 8.12 billion yuan in 2022, mainly due to a decline in matured bank structured deposits[68] - The company's net cash flow from financing activities was -6.42 billion yuan in 2022, with a slight increase in both cash inflows and outflows compared to 2021[68] - The company reported a significant asset impairment loss of -279.33 million yuan in 2022, primarily due to inventory write-downs for frozen products[69] - The company's investment income was 106.06 million yuan in 2022, mainly from bank structured deposits and equity investments in associates[69] - The company's fair value change income was 3.93 million yuan in 2022, attributed to changes in the fair value of financial assets[69] - Operating income decreased by 7.23% to 5.77 billion yuan, mainly due to increased investment payments for new construction and technical renovation projects[71] - Fixed assets increased by 9.76% to 15.16 billion yuan, primarily due to the completion and transfer of new construction and technical renovation projects into fixed assets[71] - Short-term borrowings increased by 1.76% to 3.15 billion yuan, as the company increased external financing to leverage funds and supplement working capital[71] - Contract liabilities increased by 1.98% to 3.10 billion yuan, driven by increased prepayments from customers ahead of the Spring Festival[72] - Accounts payable increased by 4.54% to 3.92 billion yuan, mainly due to increased engineering and equipment payments for new construction and technical renovation projects[72] - Total investment for the reporting period was 6.14 billion yuan, an increase of 11.54% compared to the previous year[78] - The company recovered 502.64 million yuan from matured bank structured deposits, reducing trading financial assets[76] - The company acquired Nantong Huiyufeng equity, adding 30.24 million yuan in bank structured deposits at the acquisition date[76] - The company changed the measurement of its investment in Henan Rongzhen Food Industry Investment Fund from fair value to amortized cost, reducing trading financial assets by 2 million yuan[76] - The company has 11 million yuan in restricted assets due to pledged time deposits for a government loan[77] - The total raised funds in 2020 amounted to RMB 6.9676816 billion, with RMB 2.1056976 billion used in the current period and RMB 6.7830991 billion cumulatively used[90] - The unused raised funds as of the end of the reporting period amounted to RMB 184.5825 million[90] - The meat chicken industrialization capacity construction project had a cumulative investment of RMB 3.4546041 billion, exceeding the adjusted investment total by 103.74%[91] - The pig farming capacity construction project had a cumulative investment of RMB 1.0255285 billion, exceeding the adjusted investment total by 103.59%[91] - The pig slaughtering and prepared meat products technical transformation project had a cumulative investment of RMB 368.4565 million, exceeding the adjusted investment total by 102.35%[91] - The meat product processing technical transformation project had a cumulative investment of RMB 203.8528 million, reaching 75.50% of the adjusted investment total[91] - The China Shuanghui headquarters project had a cumulative investment of RMB 430.6572 million, reaching 60.01% of the adjusted investment total[91] - The total raised funds amounted to RMB 6,967,681,641.73, with a net amount after deducting issuance costs[93] - The broiler industrialization capacity project achieved a state of readiness but did not generate positive returns due to insufficient capacity utilization and declining product margins[92] - The pig farming capacity project was delayed, with the expected completion date adjusted from December 31, 2022, to August 31, 2023, due to adverse weather and external environmental impacts[92] - The meat processing technical transformation project achieved expected profits, with a cumulative investment progress of 75.5%[92] - The company used RMB 5,572,340 of raised funds to replace self-raised funds previously invested in the projects[93] Business Operations - The company's main business involves pig slaughtering and meat processing, with continuous expansion in upstream livestock farming[19] - Pork remains the primary choice for meat consumption in China, with significant growth potential[20] - Consumption upgrades are driving the demand for processed meat products, with cold fresh meat becoming mainstream[22] - The domestic pig slaughtering industry is becoming more concentrated and standardized, benefiting large-scale enterprises[23] - The company has a diverse product portfolio, including packaged meat products and fresh products, catering to various consumer needs[24] - New products like "辣吗？辣" and "双汇筷厨" are showing strong growth potential, aligning with consumer upgrade trends[24] - The company had 19,938 distributors by the end of 2022, a net increase of 991 distributors, or 5.23% year-on-year[36] - The company's sales to the top five distributors accounted for 1.86% of total revenue, amounting to 1.164 billion yuan[38] - The company's online direct sales business operates 21 stores on platforms such as Tmall, JD.com, and Pinduoduo, and also manages warehouse business on platforms like Alibaba Retail and JD New Road[38] - The company's total procurement amount in 2022 was 47,595,698,388.33 yuan, with live pigs accounting for 24,157,710,278.40 yuan, fresh and frozen meat for 12,757,552,364.63 yuan, and auxiliary materials, packaging, and other materials for 10,680,435,745.30 yuan[39] - The company has 30 modern meat processing bases and supporting industries in 18 provinces, with an annual processing capacity of over 2 million tons of meat products and a single-shift annual slaughter capacity of over 25 million pigs[40] - The company's marketing strategy in 2022 included festival marketing, variety show marketing, and celebrity marketing to promote brand rejuvenation and product sales[30][31][32] - The company implemented a "transparent factory" initiative to enhance consumer interaction and understanding of its production processes[33] - Total meat product sales volume in 2022 was 3.15 million tons, a year-on-year decrease of 4.5%[48] - Sales volume of fresh poultry products increased by 61.52% year-on-year to 18.01 million tons, while production volume increased by 59.08% to 28.30 million tons, and inventory surged by 195.24% to 0.62 million tons due to the commissioning of new poultry projects[53][54] - Packaging meat products inventory rose by 31.23% to 3.95 million tons at the end of 2022, primarily due to increased stockpiling ahead of the Spring Festival[54] - Direct material costs for fresh products decreased by 15.95% year-on-year to 30.05 billion yuan, accounting for 94.65% of operating costs[55] - The top five customers contributed 1.40 billion yuan in sales, representing 2.24% of total annual sales, with the largest customer being Luohe Huisheng Biotechnology Co., Ltd. and its subsidiaries, accounting for 0.63%[57][58] - The top five suppliers accounted for 20.15% of total annual procurement, with Rotex Co., Ltd. and its subsidiaries being the largest supplier, contributing 11.86% of total procurement[59] - The company plans to invest 3.9 billion yuan in 2023 for new projects, continued projects, technological upgrades, and equipment investments to enhance industrial automation and industrial synergy[108] - The company aims to strengthen its pig farming and poultry industries, leveraging synergies with slaughtering and meat processing to enhance comprehensive competitiveness and promote diversified development[110] - The company will focus on the "six combinations" strategy in the fresh food sector, expanding production, reducing costs, and improving product competitiveness to achieve scale growth[111] - The meat products sector will adhere to the "two adjustments and one control" strategy, stabilizing prices, controlling costs, and introducing new products to ensure profitability and scale expansion[112] - The company will accelerate the development of pre-made meal business, enhancing product R&D and expanding production capacity to meet regional consumer demands and achieve incremental growth[113] - The company will utilize digital technologies to build a high-quality market network, upgrading terminal services and increasing the number of outlets to support scale breakthroughs[114] - The company will accelerate digital transformation, upgrading industrial automation, informatization, and intelligence levels to achieve high-quality production and high-efficiency operations[115] - The company will innovate marketing strategies, focusing on precision, efficiency, and creativity to enhance brand influence and market performance[116] - The company will strengthen talent acquisition and development, building an elite team to support sustainable and high-quality development[117] - The company will enhance safety and quality control measures, ensuring food safety and sustainable operations through standardized management and compliance[118] - The company discussed the performance of new products in 2021 and measures to increase the scale of meat products in 2022[119] - The company provided an outlook on the profit per ton of meat products and the expected slaughter volume for 2022[119] - The company shared updates on the construction progress of its farming projects and plans for the pre-made meal sector in 2022[119] - The company outlined its strategy for market expansion and cost control measures in 2022[119] - The company reported on the development of its new track business and plans for new product development in Q1 2022[119] - The company discussed the profit performance of frozen and fresh products in Q3 2022 and measures to address rising costs in packaged meat products[119] - The company explained the significant increase in fixed assets at the end of Q3 2022 and the purpose of developing its farming business[119] - The company provided updates on the profitability of frozen products in Q3 2022[119] Corporate Governance - The company's registered address and business address remain unchanged at No. 1 Shuanghui Road, Luohe City, Henan Province[8] - The company's stock code is 000895, listed on the Shenzhen Stock Exchange[8] - The company's annual report is disclosed on the websites of "Securities Times," "China Securities Journal," "Shanghai Securities News," and "Securities Daily"[10] - The company has established a fair and transparent performance evaluation and incentive mechanism for directors, supervisors, and senior management, ensuring reasonable evaluation, appropriate constraints, and effective incentives[127] - The company maintains a scientific, sustainable, and stable shareholder return mechanism, focusing on cash dividends while balancing long-term interests and providing reasonable investment returns to shareholders[129] - The company has a robust information disclosure management system, with its information disclosure work consistently rated as "A" by the exchange for the past four years[131] - The company ensures independence in assets, personnel, finance, organization, and business operations, with clear ownership of assets and independent management systems[132] - The 2021 Annual General Meeting had a 73.67% investor participation rate, held on April 19, 2022, and disclosed on April 20, 2022[134] - The 2022 First Extraordinary General Meeting had a 74.50% investor participation rate, held on September 1, 2022, and disclosed on September 2, 2022[134] - The 2022 Second Extraordinary General Meeting had a 74.03% investor participation rate, held on December 23, 2022, and disclosed on December 24, 2022[134] - Chairman Wan Long holds 301,736 shares as of the end of the reporting period, with no changes in shareholding during the period[135] - Total shares held by current directors, supervisors, and senior executives at the end of 2022 were 717,225 shares[138] - Liu Songtao, Executive Vice President and CFO, held 7,500 shares at the beginning and end of 2022[136] - Wang Yufen, Chief Engineer, held 153,939 shares at the beginning and end of 2022[136] - Qiao Haili, Vice President, held 121,053 shares at the beginning and end of 2022[136] - Meng Shaohua, Vice President, held 3,700 shares at the beginning and end of 2022[136] - Zhang Bin, Vice President, held 600 shares at the beginning and end of 2022[136] - Hu Yungong, Chairman of the Supervisory Board, held 7,500 shares at the beginning and end of 2022[137] - Li Xianghui, Supervisor, held 3,300 shares at the beginning and end of 2022[137] - He Ke, former Vice President, held 117,897 shares at the beginning and end of 2022[137] - Zhang Xiaoling was appointed as Vice President on February 15, 2023[137] - Liu Dongxiao, a graduate student, serves as an independent director of the company and holds multiple positions including Chairman of Henan New Energy Chamber of Commerce and Executive Director of Henan Tisu New Energy Technology Co., Ltd[141] - Yin Xiaohua, an economics bachelor and retired associate professor at Zhengzhou University School of Business, serves as an independent director for multiple companies including the company[141] - Liu Songtao, with a bachelor's degree, serves as the Executive Vice President and CFO of the company, and holds director positions in several affiliated and associated companies[142] - Wang Yufen, a senior engineer with a college degree, serves as the Chief Engineer of the company and holds director positions in several affiliated companies[142] - Qiao Haili, an engineer with a college degree, serves as the Vice President of the company and holds director positions in several affiliated companies[142] - Zhao Guobao, with a bachelor's degree, serves as the Vice President of the company and holds director positions in several affiliated companies[142] - Li Quanhong, with a college degree, serves as the Vice President of the company and holds director positions in several affiliated companies[142] - Meng Shaohua, with a master's degree and senior engineer title, serves as the Vice President of the company and holds director positions in several affiliated companies[142] - Zhang Liwen, with a bachelor's degree and engineer title, serves as the Vice President and Board Secretary of the company, and holds director positions in several affiliated companies[142] - He Jianmin, with a college degree, serves as the Vice President of the company and holds director positions in several affiliated companies[142] - Total remuneration for directors, supervisors, and senior management during the reporting period was RMB 414.143 million (tax included)[148] - The President, Ma Xiangjie, received a total pre-tax remuneration of RMB 5.6572 million[149] - The CFO and Executive Vice President, Liu Songtao, received a total pre-tax remuneration of RMB 3.5668 million[149] - The