WH GROUP(00288)2024-04-15 08:32Financial Performance - Total revenue for 2023 decreased by 6.8% to 28,136 million in 2022[4]. - Operating profit fell by 29.7% to 2,093 million year-on-year[5]. - Profit attributable to shareholders decreased by 56.8% to 26.236 billion, primarily due to declines in sales volume and average selling prices of meat products and pork[39]. - The operating profit dropped by 29.7% to 10.810 billion, reflecting lower sales volume and prices[39]. - The company reported a net profit for the year of 1,650 million in the previous year[161]. - The company experienced a foreign exchange loss of 954 million, a decrease of 30.2% from 2.17), down 19.0% from 2022[34]. - In the U.S., the average pork price for 2023 was 1.547 billion, driven by sales growth and price adjustments[42]. - The total pork import volume in China for 2023 was 1.55 million tons, a decline of 11.7% compared to 2022[34]. - The total pork production in the EU decreased by 7.3% in 2023, primarily due to African swine fever impacts[37]. Strategic Initiatives - The company plans to focus on optimizing the supply chain and reducing pig farming scale while enhancing slaughtering and processing capabilities[8]. - The company aims to expand its market network and enhance operational efficiency through a strategy of "industrialization, diversification, internationalization, and digitization"[8]. - The company anticipates a more stable economic environment in 2024, with potential growth in consumer demand as inflation eases[8]. - The management will closely monitor macroeconomic changes and market trends to navigate challenges effectively[8]. Leadership and Governance - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[9]. - Wan Long has over 50 years of experience in the meat processing industry and has led the company to become an international entity with operations across multiple continents[9]. - The company has a strong leadership team with extensive experience in the meat processing sector, contributing to its growth and market expansion[12]. - The company has a robust governance structure with a mix of executive and independent directors to ensure effective oversight[9]. - The board includes experienced members with extensive backgrounds in finance and management across various industries, enhancing corporate governance[15][16][17]. Financial Management - As of December 31, 2023, the company had cash and bank balances of 1.394 billion in 2022[51]. - The company maintained an unused bank financing amount of 5.725 billion in 2022[51]. - The net cash generated from operating activities in 2023 was 1.803 billion in 2022, primarily due to decreased profitability[53]. - The total outstanding principal of loans as of December 31, 2023, was 3.395 billion in 2022[55]. - The debt-to-equity ratio and net debt-to-equity ratio as of December 31, 2023, were 30.5% and 19.6%, respectively, compared to 32.3% and 18.9% in 2022[59]. Corporate Social Responsibility and Sustainability - The company is currently facing 34 individual cases related to the antitrust lawsuits, which are still under trial[73]. - In 2023, the company was selected as a constituent of the Hang Seng Sustainable Development Index and received an A+ rating, while MSCI rated it BBB in ESG performance[74]. - The company is actively monitoring its operational impact on the environment and community, focusing on sustainable protein options for global consumers[74]. - The company has implemented sustainable development measures under the guidance of its Environmental, Social, and Governance (ESG) committee[74]. Shareholder Engagement and Dividends - The board proposed a final dividend of HK0.30 per share[8]. - The company expects to declare interim and final dividends totaling no less than 30% of the annual profit attributable to shareholders[115]. - The company emphasizes the importance of annual and special general meetings as key events for shareholder engagement[105]. Accounting and Financial Reporting - The company is committed to preparing financial statements that are true and fair in accordance with International Financial Reporting Standards[157]. - The independent auditor for the review period was Ernst & Young, responsible for auditing the company's annual consolidated financial statements[103]. - The company has established internal policies and information disclosure management systems to handle and disclose inside information appropriately[102]. - The company has adopted the acquisition method for business combinations, measuring the transferred consideration at fair value on the acquisition date[184]. Employee and Workforce Management - The company employed approximately 101,000 employees as of December 31, 2023, with a focus on attracting and retaining a diverse workforce[63]. - The company maintains a gender diversity ratio of 59% male to 41% female in its workforce as of December 31, 2023[93].