Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,654,039,000, representing an increase of 8.9% from RMB 2,436,545,000 in the same period of 2023[8] - Gross profit decreased to RMB 237,414,000, down 15.9% from RMB 282,227,000 year-on-year[8] - Net profit for the period was RMB 60,094,000, a decline of 26.8% compared to RMB 82,095,000 in the previous year[8] - Basic earnings per share decreased to RMB 0.04 from RMB 0.06, reflecting a 33.3% drop[8] - The Group achieved total sales revenue of RMB 2,654.0 million for the first half of 2024, an increase of 8.9% compared to RMB 2,436.5 million in the same period of 2023[32] - Net profit for the first half of 2024 was RMB 60.1 million, a decrease of 26.8% from RMB 82.1 million in the first half of 2023[32] - Gross profit decreased by 15.9% to RMB 237.4 million, resulting in a gross profit margin of 8.9%, down from 11.6% in the same period last year[64] - Operating costs rose by 12.2% to RMB 2,416.6 million, primarily due to increased processing and sales volume[65] Sales and Market Performance - The number of white-feathered broilers bred increased by 9.5% to 77.7 million birds compared to 85.1 million birds in the same period of 2023[9] - Processed white-feathered broilers saw a 20.8% increase in volume, reaching 159.0 million kg compared to 192.1 million kg in the previous year[9] - For the six months ended June 30, 2024, the sales volume of processed chicken meat products increased by 20.1% to 73.0 million kg, compared to 60.8 million kg for the same period in 2023[21] - Revenue from the sale of processed chicken meat products grew by 15.2% to RMB1,416.6 million, representing 53.4% of the Group's total revenue[21] - The sales volume of raw chicken meat products increased by 23.6% to 131.5 million kg, up from 106.4 million kg in the previous year[22] - Revenue from external sales of raw chicken meat products increased by 6.3% to RMB1,153.1 million, accounting for 43.4% of the Group's total revenue[22] - The sales volume of chicken breeds decreased by 71.7% to 4.0 million birds, with revenue dropping by 73.9% to RMB 9.7 million, constituting 0.4% of total revenue[25] - Revenue from the sale of other products fell by 11.8% to RMB 74.6 million, representing 2.8% of total revenue[26] Strategic Initiatives and Future Outlook - The company is focusing on expanding its market presence and enhancing product offerings through new technology and product development strategies[7] - Future outlook indicates a commitment to improving operational efficiency and exploring potential mergers and acquisitions to drive growth[7] - The company aims to leverage its existing infrastructure to support market expansion initiatives in the coming quarters[7] - Management emphasizes the importance of adapting to market trends and consumer preferences to sustain competitive advantage[7] - The Group's strategic initiatives included enhancing customer loyalty and exploring new channels and customers to drive growth[28] - The Group aims to enhance operational efficiency and achieve sustainable growth by refining management practices across all processes[50] - The focus will be on improving breeding quality, increasing production capacity, and enhancing supply chain management capabilities[49] Research and Development - The Company held a review meeting for a postdoctoral research project focused on drug resistance mechanisms in poultry, enhancing its R&D capabilities[15] - The Company developed a new black garlic flavored chicken nugget, which has been successfully supplied to customers in bulk[16] - R&D expenses decreased by 6.3% to RMB 12.3 million for the six months ended June 30, 2024, compared to RMB 13.1 million for the same period in 2023[72] Corporate Governance and Shareholder Information - The Company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[105] - The Company continues to enhance corporate governance to protect shareholder interests and improve corporate value[103] - Major shareholders include Shan Weijian, holding approximately 95.01% of domestic shares and 25.53% of H shares[92] - Falcon Holding GP Limited holds 992,854,500 Domestic Shares, representing approximately 95.01% of the Domestic Shares class and 62.73% of the total share capital of the Company[93] - The Board of Directors consists of nine members, including two executive directors and three independent non-executive directors[94] Employee and Operational Insights - The Group had 6,075 employees as of June 30, 2024, with the majority employed in the PRC, and offers various employee benefits including social insurance and training programs[85] - The Group adjusted its internal management structure to better meet international customer needs amid rising freight costs and tight production capacity[43] - The Group uses futures contracts to hedge against price fluctuations in raw materials such as corn and soybean meal, with insignificant amounts of ineffective hedging recognized during the reporting period[80][83] Financial Management and Costs - Finance costs decreased by 22.3% to RMB 32.4 million for the six months ended June 30, 2024, down from RMB 41.7 million in the same period of 2023, primarily due to improved borrowing structure and lower interest rates[73][76] - Income tax expenses recorded a negative amount of RMB 39.1 million for the six months ended June 30, 2024, compared to RMB 1.6 million for the same period in 2023, mainly due to the recognition of deferred income tax assets[74][77] - Total borrowings amounted to RMB 1,142.0 million as of June 30, 2024, representing a decrease of 2.8% compared to December 31, 2023, attributed to improved profitability[78][81] Share Award Schemes - The 2020 Share Award Scheme (SAS) was approved to recognize contributions from personnel and provide incentives for retention and development[122] - The 2021 Share Award Scheme (SAS) was approved by the Board on December 10, 2021, with amendments made on August 29, 2023, and June 6, 2024[150] - The 2023 Share Award Scheme (SAS) was approved on August 29, 2023, allowing for awarded shares or cash to selected participants[186] - The maximum number of shares that can be awarded to a selected participant under the 2023 SAS is limited to 1% of the issued share capital in any 12-month period[197]
凤祥股份(09977) - 2024 - 中期财报