Muyuan Foods (SZ:002714)2023-04-27 16:00Dividend and Profit Distribution - The company plans to distribute a cash dividend of 7.36 CNY per 10 shares to all shareholders, with no bonus shares issued[2]. - The total cash dividend amount for the reporting period was 4,003,494,920.51 CNY, representing 100% of the distributable profit[147]. - The company is committed to a profit distribution policy that emphasizes reasonable returns to investors, with a minimum of 20% of the distributable profits allocated to cash dividends each year[187]. - The company will ensure that cash dividends account for at least 40% of each profit distribution[187]. - The management emphasized a commitment to enhancing shareholder value through consistent dividend payments, with a proposed dividend of 1.5 RMB per share for 2022[125]. Financial Performance - The company's operating revenue for 2022 was CNY 124.83 billion, an increase of 58.23% compared to CNY 78.89 billion in 2021[17]. - The net profit attributable to shareholders for 2022 was CNY 13.27 billion, representing a 92.16% increase from CNY 6.90 billion in 2021[17]. - The net cash flow from operating activities for 2022 was CNY 23.01 billion, up 41.21% from CNY 16.30 billion in 2021[17]. - The basic earnings per share for 2022 was CNY 2.49, a 94.53% increase from CNY 1.28 in 2021[17]. - The total assets at the end of 2022 were CNY 192.95 billion, an increase of 8.85% from CNY 177.27 billion at the end of 2021[17]. Operational Highlights - The company sold 61.2 million pigs, including 55.3 million market pigs, 5.6 million piglets, and 0.35 million breeding pigs[32]. - The company has expanded its slaughtering and meat business, which generated CNY 1.47 billion in revenue in 2022, accounting for 11.79% of total revenue[13]. - The company has a breeding capacity of about 75 million pigs per year and operates 10 slaughterhouses with a designed capacity of 29 million pigs per year[34]. - The company has established 288 subsidiaries across 24 provincial-level administrative regions in China[33]. - The company has achieved FSSC22000 and GLOBAL GAP certifications in feed production and pig farming, ensuring high food safety standards[37]. Risk Management - The company faces risks from disease outbreaks, which could lead to reduced production and profitability due to potential livestock mortality[3]. - The company operates across 24 provincial regions, exposing it to risks from natural disasters that could damage facilities and livestock[6]. - The company has a comprehensive disease prevention system in place, but effectiveness may be challenged by external outbreaks[3]. - The company has established a comprehensive risk control system for its derivative investments, including market, liquidity, credit, operational, and legal risks[72]. - The company has a robust risk management strategy in place, including disease prevention measures and a risk warning mechanism to mitigate the impact of natural disasters[99]. Cost Management - Major raw material costs, including wheat, corn, and soybean meal, account for approximately 55%-65% of operating costs, making the company vulnerable to price volatility in these commodities[4]. - The average cost of market pigs was approximately 15.7 yuan/kg, with the fourth quarter cost dropping below 15.5 yuan/kg[33]. - Feed costs accounted for 62.87% of total operating costs in 2022, increasing by 70.58% from ¥36.01 billion in 2021[55]. - The company has implemented a centralized procurement model, reducing transaction costs and enhancing market risk resistance[39]. - The company has adopted various measures to control costs, including optimizing breeding technology and implementing automated management to reduce breeding costs and enhance profitability[99]. Research and Development - The total R&D investment reached approximately CNY 1.14 billion, a 41.36% increase from CNY 808 million in 2021, representing 0.92% of operating revenue[63]. - The company is focusing on multiple R&D projects aimed at enhancing production efficiency and product quality, including intelligent logistics and high-yield lean meat projects[62]. - The company has invested 200 million RMB in R&D for new technologies aimed at improving production efficiency and sustainability[125]. - The company aims to enhance pig health management and improve breeding efficiency through ongoing health management projects[61]. - The company is focusing on innovation-driven development, enhancing breeding technology, and investing in the construction of core breeding facilities to improve the genetic performance of breeding pigs[92]. Environmental Initiatives - The company has committed to integrating its operations with national rural revitalization strategies, focusing on the grain-feed-pig-slaughter meat industry chain[184]. - The company invested approximately CNY 3.199 billion in environmental governance and protection during the reporting period[178]. - The company has implemented low-protein diet technology to reduce nitrogen emissions per pig by decreasing soybean meal usage without affecting growth performance and product quality[182]. - The company has developed a heat exchange technology for pig houses, maintaining internal temperatures between 22-25°C in extreme external conditions of -40°C, significantly reducing greenhouse gas emissions from fossil fuel combustion[182]. - The company has established a training program for emergency response to environmental incidents, improving readiness and response capabilities[174]. Corporate Governance - The company maintains a transparent information disclosure process, ensuring timely and accurate communication with investors[112]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with governance standards[109]. - The company has established an independent financial department and internal audit system, ensuring autonomous financial decision-making and compliance with tax obligations[115]. - The company has implemented a robust investor relations management system to enhance communication and transparency with stakeholders[112]. - The company has established clear ownership rights over its assets, with no instances of asset misappropriation by controlling shareholders[113]. Shareholder Engagement - The company held its first extraordinary general meeting of shareholders in 2022 with a participation rate of 60.52% on February 28, 2022[116]. - The annual general meeting for 2021 had a participation rate of 59.43% and was held on May 20, 2022[116]. - The company is committed to fair treatment of all shareholders, providing equal opportunities for participation in shareholder meetings[109]. - The company has committed to repurchase all new shares if there are significant misstatements or omissions in the prospectus that affect the issuance conditions[186]. - The company will prioritize cash dividends over stock dividends when conditions allow[187]. Related Party Transactions - The company engaged in related party transactions amounting to 56.51 million yuan for transportation services, representing 23.55% of similar transactions[192]. - The company has confirmed the existence of non-operating related party receivables[197]. - The company’s related party transactions are conducted at market prices as approved by the board of directors[194]. - The company has a total of 205,425.29 million CNY in payable debts to related parties at the beginning of the period, with an interest rate of 3.85%[198]. - The company borrowed an additional 30,000 million CNY from the controlling shareholder, resulting in a total payable of 331,077.51 million CNY, with an interest rate of 3.80%[198].