Sales Performance - Chicken seedling sales increased by 3.2% to 32.1 million units in 2022, while revenue from external sales of chicken seedlings decreased by 17.3% to RMB 53.6 million[4] - Sales volume of raw chicken meat products increased by 24.0% to 251.5 million kg, with revenue from external sales rising by 30.7% to RMB 2,500.6 million, accounting for 49.2% of the Group's total revenue[14] - Sales revenue from major customer business reached RMB 684.2 million, a year-on-year increase of 6.3%[24] - The Group's sales to high-end catering brands grew by 22.2% in the second half of 2022, achieving an annual channel sales growth of 11.3%[29] - Low-fat chicken breast meatballs became the best-selling new product, reaching a sales milestone of RMB 10 million within 10 months[31] - Revenue increased by 15.1% year-on-year to RMB5,085.79 million in 2022, with significant growth in Europe (+113.0%) and Malaysia (+19.6%)[78] - B2B revenue grew by 28.6%, accounting for 87.7% of total revenue, while B2C revenue declined by 34.0% due to the impact of COVID-19 on iShape and Fovo Foods sales[82] - The iShape brand maintained a 5.1% higher market share than its closest competitor in the online market, despite having nearly double the price[49] - The company expanded its offline presence to 142 cities with nearly 60,000 outlets, focusing on convenience stores and premium supermarkets[49] - The number of white-feathered broilers slaughtered increased by 13.4% year-on-year, driving growth in production and sales volume[77] - Raw chicken meat products revenue increased by 30.7% to RMB 2,500.559 million, driven by increased sales to Europe, Malaysia, and other countries[99][102] - Processed chicken meat products revenue grew by 3.3% to RMB 2,371.087 million, despite a 2.5% decrease in average selling price to RMB 20.8 per kg[102] - Total revenue increased by 15.1% to RMB 5,085.790 million, with raw chicken meat products contributing the largest share at 49.2%[102] - Revenue increased by 15.1% year-on-year to RMB 5,085.79 million in 2022, compared to RMB 4,416.76 million in 2021[112] - B2B sales revenue grew by 28.6% to RMB 4,459.92 million, accounting for 87.7% of total revenue, up from 78.5% in 2021[112][115] - B2C sales revenue declined by 34.0% to RMB 625.87 million, with online sales dropping by 45.2% and offline sales decreasing by 22.1%[112] - Key client business revenue grew by 6.3% to RMB 684.2 million, driven by expanded sales regions and product innovation[121] - Revenue growth in Mainland China was driven by increased sales volume of raw chicken meat products, with additional growth in Malaysia, Europe, and other markets[110] - Total operating revenue increased by 15.1% to RMB 5,085,790,000 in 2022 compared to RMB 4,416,764,000 in 2021[127] - Revenue for the year ended December 31, 2022, was RMB 5,085,790 thousand, an increase from RMB 4,416,764 thousand in 2021[165] - Sales volume of raw chicken meat products increased by 24.0% to 251.5 million kg in 2022 from 202.9 million kg in 2021[166] - Sales volume of processed chicken meat products grew by 6.0% to 114.0 million kg in 2022 from 107.6 million kg in 2021[166] - Revenue from external sales of other products increased by 12.0% to RMB 160.5 million in 2022, representing 3.2% of total revenue[187] Financial Performance - The company recorded a net loss of RMB769.0 million in 2022, primarily due to a one-off impairment loss, compared to a net profit of RMB47.1 million in 2021[54] - Gross profit increased by 4.6% year-on-year, while operating costs rose by 16.7% to RMB4,502.3 million, driven by higher sales of white-feathered broilers and rising feed costs[54][83] - Administrative expenses increased by 21.5% to RMB108.5 million, mainly due to higher equity incentive and service fees[87] - The company's total borrowings decreased by 39.5% to RMB 1,489 million as of December 31, 2022, due to repayment of long-term borrowings and reduction in pledged borrowings[103] - Financing costs rose by 3.0% to RMB 49.1 million in 2022, primarily due to higher borrowing rates and reduced interest income[102] - Net loss of RMB 769.0 million in 2022, compared to a net profit of RMB 47.1 million in 2021, primarily due to a one-time impairment loss on deposits receivable from Xin Fengxiang Finance[108] - Gross profit increased by 4.6% year-on-year, despite the overall net loss[108] - Operating costs rose by 16.7% to RMB 4,502,293,000 in 2022 from RMB 3,858,825,000 in 2021[127] - R&D expenses increased by 27.9% to RMB 31,944,000 in 2022 from RMB 24,983,000 in 2021[127] - Gross profit margin decreased to 11.5% in 2022 from 12.6% in 2021, a decline of 8.7%[127] - Net loss margin was (15.1)% in 2022 compared to a net profit margin of 1.1% in 2021, a significant decline of 1,472.7%[127] - Adjusted net profit decreased by 16.7% to RMB 39,206,000 in 2022 from RMB 47,075,000 in 2021[127] - Net loss attributable to shareholders was RMB 769,029 thousand in 2022, compared to a net profit of RMB 50,911 thousand in 2021[165] - Adjusted net profit for 2022 was RMB 39,206 thousand, a decrease from RMB 47,075 thousand in 2021[165] Product Development and Innovation - The Group launched several new products to meet the rapidly changing demand for prepared dish products[25][39] - The Group's new retail business introduced four new products, with chicken breast fried rice achieving a repurchase rate of 17.5%[31] - The company aims to transform iShape from high-end chicken breast products to "low-burden" meat products and healthy food, targeting younger consumers[59] - The company launched the "Gancuiburen" chicken breast chips under the "iShape" brand on 8 January 2022, marking the beginning of the "All Things Low-fat" era[150] - On May 5, 2022, iShape launched a new product, "iShape Chicken Breast Luncheon Meat," expanding its low-fat product line[186] Market Expansion and Diversification - The Group expanded its presence in Europe, Southeast Asia, and the new Middle East market, achieving significant growth and diversifying channels[18][37] - The Group's export business continued to optimize products, services, and channels, reinforcing its leading position in the export market[45] - The company is the largest white-feathered broiler meat exporter in China and was listed on the Main Board of the Stock Exchange on July 16, 2020[171] - The company aims to enhance profitability and international influence by pursuing balanced growth across multiple channels and expanding production lines[120] Strategic Initiatives - The company's "123" strategy focuses on expanding retail business, increasing processed food sales, and building a leading chicken meat brand in China[116] - The company's deep-processed chicken products sales accounted for 46.6% of total revenue, with a production capacity of 142,000 tons[123] - The processed chicken meat market is expected to exceed RMB60 billion by 2024, with the company focusing on transforming from raw to processed products[66] Corporate Social Responsibility and Recognition - On 12 January 2022, the company distributed quality-assured chicken products to support Xi'an during the COVID-19 pandemic[151] - The company's raw chicken products were selected for the "Good Products of Shandong" list on 2 March 2022[152] - On March 2, 2022, Fovo Foods' raw chicken meat was selected as "Shandong's Good Product"[168] Challenges and Risks - The company faced challenges including industry cycle fluctuations, COVID-19 impacts, and high feed costs, but still achieved notable performance[188] - Delisting resolution was not approved at the company's shareholder meeting on January 18, 2023, and has therefore lapsed[200] Shareholder and Employee Incentives - The company's 2020 Share Award Plan allows for a maximum of 3% of issued H-shares (10,650,000 shares) to be awarded annually, with 9,095,000 shares remaining available as of the report date[90] - In 2022, 149,000 shares were vested to selected employees at a weighted average closing price of HK$1.17 prior to vesting dates[96] - The 2020 Share Award Plan will remain effective for 10 years from the listing date unless terminated earlier by the Board[107]
凤祥股份(09977) - 2022 - 年度财报