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万洲国际(00288) - 2024 - 中期财报
00288WH GROUP(00288)2024-09-19 08:48

Financial Performance - Total revenue for the first half of 2024 was 12,293million,adecreaseof6.312,293 million, a decrease of 6.3% compared to 13,116 million in the same period of 2023[7]. - Operating profit increased by 78.4% to 1,140million,comparedto1,140 million, compared to 639 million in the same period of 2023[7]. - Profit attributable to shareholders before biological fair value adjustments increased by 81.2% to 694million,withbasicearningspersharerisingto5.41centsfrom2.99cents[7].−Porkrevenuefellby11.7694 million, with basic earnings per share rising to 5.41 cents from 2.99 cents[7]. - Pork revenue fell by 11.7% to 4.926 billion, with a significant drop of 16.4% in China attributed to lower slaughter volumes[17]. - The company recorded a total slaughter volume of 22.29 million pigs, a decrease of 12.2% compared to the previous period[16]. - The group’s net profit attributable to shareholders for the first half of 2024 was 784million,upfrom784 million, up from 420 million in the same period of 2023, reflecting an increase of approximately 86.2%[78]. - The reported profit before tax for the group was 1,171millionforthefirsthalfof2024,comparedto1,171 million for the first half of 2024, compared to 657 million in the same period of 2023, indicating a significant increase of approximately 78.2%[74]. - The company achieved significant profit growth during the review period, driven by favorable market conditions and operational reforms in pig farming[45]. Revenue Breakdown - The business in China accounted for 31.7% of total revenue and 39.2% of operating profit, down from 34.2% and 81.4% respectively in the previous period[8]. - The total revenue from the China segment was 4,322millionforthefirsthalfof2024,downfrom4,322 million for the first half of 2024, down from 5,054 million in the same period of 2023, a decrease of about 14.5%[72]. - The U.S. and Mexico segment reported revenue of 6,674millionforthefirsthalfof2024,comparedto6,674 million for the first half of 2024, compared to 7,008 million in the same period of 2023, a decline of approximately 4.8%[72]. - The Europe segment generated revenue of 1,724millionforthefirsthalfof2024,adecreasefrom1,724 million for the first half of 2024, a decrease from 1,623 million in the same period of 2023, representing an increase of approximately 6.2%[72]. Cost and Expenses - The company’s total compensation expenses for the review period were 2.009billion,reflectinga3.82.009 billion, reflecting a 3.8% decrease due to effective cost control measures[28]. - Research and development expenses increased to 101 million in the first half of 2024, compared to 92millioninthesameperiodof2023,reflectingagrowthofapproximately9.892 million in the same period of 2023, reflecting a growth of approximately 9.8%[74]. - The group incurred 277 million in property, plant, and equipment additions for the six months ended June 30, 2024, compared to 296millionforthesameperiodin2023[80].CashFlowandLiquidity−AsofJune30,2024,thecompanyhadcashandbankbalancesof296 million for the same period in 2023[80]. Cash Flow and Liquidity - As of June 30, 2024, the company had cash and bank balances of 797 million, down from 1.156billionasofDecember31,2023[21].−Thecompanymaintainedaliquidityratioof1.7timesasofJune30,2024,comparedto1.6timesasofDecember31,2023[21].−Thenetcashflowfromoperatingactivitieswas1.156 billion as of December 31, 2023[21]. - The company maintained a liquidity ratio of 1.7 times as of June 30, 2024, compared to 1.6 times as of December 31, 2023[21]. - The net cash flow from operating activities was 689 million, a significant increase from 2millioninthesameperiodof2023[59].−Thecompanyreportedacashandbankbalanceof2 million in the same period of 2023[59]. - The company reported a cash and bank balance of 797 million, with bank overdrafts amounting to 27million[60].DebtandFinancing−Thetotaloutstandingloansamountedto27 million[60]. Debt and Financing - The total outstanding loans amounted to 3.397 billion as of June 30, 2024, an increase from 3.252billionasofDecember31,2023[24].−Thecompany’sdebt−to−equityratiowas31.33.252 billion as of December 31, 2023[24]. - The company’s debt-to-equity ratio was 31.3% as of June 30, 2024, compared to 30.5% as of December 31, 2023[26]. - Financial costs decreased by 12.9% to 74 million during the review period, benefiting from a decline in average loan interest rates[27]. - Approximately 93.3% of the company's loans were at fixed interest rates as of June 30, 2024, up from 88.9% on December 31, 2023, indicating a strategy to manage interest rate risk[40]. Biological Assets and Inventory - The fair value of biological assets as of June 30, 2024, was 1.388billion,anincreasefrom1.388 billion, an increase from 1.363 billion on December 31, 2023, with a net gain of 96millionduringthereviewperiod[29].−Thefairvalueofcurrentbiologicalassetswas96 million during the review period[29]. - The fair value of current biological assets was 1,158 million as of June 30, 2024, compared to 1,149millionasofDecember31,2023[86].−TotalinventoryasofJune30,2024,was1,149 million as of December 31, 2023[86]. - Total inventory as of June 30, 2024, was 2,921 million, slightly up from 2,919millionasofDecember31,2023[88].AcquisitionsandInvestments−Thecompanycompletedtheacquisitionofahigh−enddrysausageproductionfacilityinTennesseefromCargillMeatSolutionsCorporationinJuly2024,aimedatenhancingitsvalue−addedmeatproductsbusiness[30].−InMarch2024,thecompanyacquired50.12,919 million as of December 31, 2023[88]. Acquisitions and Investments - The company completed the acquisition of a high-end dry sausage production facility in Tennessee from Cargill Meat Solutions Corporation in July 2024, aimed at enhancing its value-added meat products business[30]. - In March 2024, the company acquired 50.1% of Argal Alimentación, S.A., a Spanish producer of processed meats, establishing a solid platform for growth in Spain and Europe[31]. - The company acquired 100% of Goodies Meat Production S.R.L. in February 2023, contributing 13 million to revenue and 1milliontoconsolidatedprofitforthesixmonthsendingJune30,2023[104][105].ShareholderInformation−ThecompanydeclaredaninterimdividendofHKD0.10pershare,upfromHKD0.05inthepreviousperiod[7].−TheinterimdividendisexpectedtobepaidonSeptember25,2024,toshareholderslistedasofAugust30,2024[138].−Thecompany’smajorshareholdersincludeMr.Wanwitha27.411 million to consolidated profit for the six months ending June 30, 2023[104][105]. Shareholder Information - The company declared an interim dividend of HKD 0.10 per share, up from HKD 0.05 in the previous period[7]. - The interim dividend is expected to be paid on September 25, 2024, to shareholders listed as of August 30, 2024[138]. - The company’s major shareholders include Mr. Wan with a 27.41% stake and Mr. Ma with a 39.20% stake, collectively controlling significant voting rights[140]. Legal and Compliance - Smithfield paid a total of approximately 194 million to settle all collective claims related to antitrust litigation, with 29 individual cases still pending[42]. - The company plans to actively defend against remaining claims in the Maxwell lawsuit[116]. - The group intends to vigorously contest the antitrust allegations in the ongoing litigation[114]. Strategic Focus and Future Outlook - The company is focused on product structure adjustments, expanding sales networks, managing prices, and cost savings to adapt to changing market conditions[45]. - The company continues to explore opportunities for market expansion and potential acquisitions to enhance its growth strategy moving forward[59]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2025[165].