WH GROUP-万洲国际(00288) - 2024 - 年度财报

Financial Performance - Total revenue for 2024 was $25,941 million, a decrease of 1.1% compared to$ 26,236 million in 2023[12] - Operating profit increased by 63.4%, reaching $2,404 million, compared to$ 1,471 million in the previous year[12] - Profit attributable to the company's owners rose to $1,471 million, up 142.7% from$ 606 million in 2023[12] - In 2024, the company's total revenue decreased by 1.1% to $25.941 billion, primarily due to lower sales volumes in meat products and pork, partially offset by price increases[57] - Operating profit surged by 63.4% to$ 2.404 billion, driven by a turnaround in the pork business and continued growth in the meat products segment[57] - The meat products segment accounted for 92.9% of the company's operating profit and 52.6% of total revenue in 2024, compared to 139.4% and 51.5% respectively in 2023[57] - The company's pork operating profit reached $356 million in 2024, a significant recovery from a loss of$ 480 million in 2023[61] - The company's net profit margin improved to 6.6% in 2024 from 3.2% in 2023, reflecting a 3.4 percentage point increase[69] - Cash and bank balances as of December 31, 2024, were $2.055 billion, up from$ 1.156 billion in 2023, indicating improved liquidity[71] - Operating cash flow for 2024 was $2.519 billion, a significant increase from$ 1.617 billion in 2023, driven by substantial profit growth[73] Market and Sales Performance - Pork sales volume decreased by 4.9% to 3,765 thousand tons, while meat product sales volume fell by 3.0% to 3,100 thousand tons[12] - North America contributed 53.0% of total revenue and 49.4% of operating profit in 2024, compared to 54.0% and 22.4% in 2023[49] - The company's meat products revenue in Europe increased by 24.7% to $1.929 billion, attributed to higher sales volumes and average price increases[60] - In North America, meat products revenue rose by 0.5% to$ 8.317 billion, as higher average prices offset a decline in sales volume[60] - Pork segment revenue fell by 4.3% to $10.343 billion, with a total slaughter volume of 45.353 million pigs, down 7.8% from 2023[61] - The total import volume of pork and pork offal in China for 2024 is expected to be 2.28 million tons, a decline of 15.7% from 2023[50] - The company is focused on expanding its market presence in North America and Europe, which are critical for its overall performance[49] Strategic Initiatives - The company aims to enhance its global competitiveness through digitalization and optimization of processes to reduce costs[18] - The company anticipates further declines in commodity prices and lower interest rates in 2025, which may benefit cost reduction and profit growth[18] - The company will continue to implement its "two adjustments and one control" strategy to address external pressures and maintain stable operational indicators[15] - The company is focused on expanding its market presence and improving profitability through strategic adjustments in its pork business[17] - The company is investing in new product development and technology to enhance its competitive edge in the pork industry[49] - The company aims to continue improving pork business operations and expand meat sales to enhance market competitiveness and sustain growth[65] Corporate Governance - The board consists of eight directors, including four executive directors and three independent non-executive directors[21] - The company is committed to maintaining strong corporate governance through its independent directors and experienced management team[21] - The board has undergone changes, with a reduction from nine to eight members, reflecting a streamlined governance structure[21] - The company emphasizes the importance of leadership experience in its executive team, with members having extensive backgrounds in finance and operations[22] - The board composition includes a diverse range of backgrounds and industry experience, enhancing its effectiveness[107] - The company has established a code of conduct applicable to employees and directors, which is regularly reviewed[119] - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as governance policies[118] Sustainability and Social Responsibility - The company is committed to sustainable protein options and monitors greenhouse gas emissions across its operations, focusing on energy efficiency and renewable energy utilization[99] - The company has been selected as a constituent of the Hang Seng Sustainable Development Index for 2024 and received an A+ rating, indicating recognition of its performance in sustainability[100] - Charitable donations made by the group during the review period totaled$ 23 million[169] - The company continues to engage with stakeholders to ensure the execution of its sustainability initiatives[150] Shareholder Information - The company plans to distribute a final dividend of HKD 0.40 per share, bringing the total dividend for the year to HKD 0.50 per share[18] - The total dividend for the fiscal year ending December 31, 2024, is proposed at HK $0.50 per share, amounting to approximately HK$ 64.15 billion (about $8.25 billion)[163] - The board anticipates that future interim and final dividends will not be less than 50% of the profit attributable to equity holders of the parent company[166] - The total distributable reserves of the company as of December 31, 2024, amount to$ 2.146 billion[168] Management and Leadership - Wan Long has over 50 years of experience in the meat processing industry and has been instrumental in the company's growth into an international entity[21] - Guo Lijun was appointed as CEO on August 12, 2021, and has over 20 years of experience overseeing financial operations[22] - Wan Hongwei was appointed as executive director and vice chairman on August 12, 2021, and has held various roles within the company since 2004[25] - Ma Xiangjie has over 28 years of experience in the group and was appointed as president of Shuanghui Development on December 26, 2017[27] - The management team has extensive experience in finance and investment, which supports strategic decision-making for future growth[42][43] Risk Management - The group conducted an enterprise risk assessment in 2024 to analyze and report major risks and establish relevant monitoring measures, concluding that the ERM system is effectively operating[142] - The board believes that the group's risk management and internal control systems are effective and appropriate, with no significant concerns identified that could impact financial, operational, or compliance matters[142] - The risk management department executes risk-based audit projects and reports major issues and management's corrective actions to the audit committee[141] 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, aiming to enhance its growth strategy in value-added meat products[88] - The company acquired 50.1% of Argal Alimentación, S.A. in March 2024, establishing a solid platform for growth in the Spanish and European meat products market[89] - The company completed the acquisition of Goodies Meat Production S.R.L. in February 2023, enhancing its product portfolio in Europe[91] Shareholding Structure - As of December 31, 2024, Mr. Wan Long holds 4,065,216,090 shares, representing approximately 31.68% of the company's total issued share capital[188] - Mr. Ma Xiangjie has control over 5,029,376,978 shares, accounting for about 39.20% of the total issued share capital[188] - The family trust structure allows for significant control over the company's voting rights and share ownership, impacting corporate governance[188] - The overall shareholding structure indicates a concentrated ownership, with key individuals holding substantial percentages of the total issued share capital[188]