Financial Performance - The Group's turnover for 2023 was approximately RMB 28.0 billion, with a net profit of RMB 3.1 billion, demonstrating resilience despite challenging market conditions[5]. - In 2023, the profit attributable to shareholders decreased by 18.6% to approximately RMB3,144.1 million compared to 2022[11]. - The Group's revenue growth was primarily driven by increases in food additives, high-end amino acids, and colloid segments[10]. - Revenue from sales of goods amounted to RMB 28,007 million for the year ended December 31, 2023[175]. - Revenue for the year ended December 31, 2023, increased to RMB 28,006,875, up from RMB 27,474,639 in 2022, representing a growth of 1.9%[185]. - Gross profit decreased to RMB 6,247,385 in 2023 from RMB 7,212,467 in 2022, a decline of 13.4%[185]. - Operating profit fell to RMB 3,699,473 in 2023, down 29.5% from RMB 5,250,746 in 2022[185]. - Profit attributable to shareholders for the year was RMB 3,144,124, compared to RMB 3,861,078 in 2022, a decrease of 18.5%[187]. - Basic earnings per share decreased to 124.02 cents in 2023 from 152.34 cents in 2022, a decline of 18.6%[185]. Strategic Initiatives - The Group's strategic mission for 2023 includes the "Dual High-quality Objectives," focusing on internationalization and high-quality operation of existing production capacities[5]. - The construction of a new chemical plant is in the final stage, and new MSG capacity is in trial run, expected to enhance cost advantages and market leadership in MSG by 2024[5]. - Three regional sales offices have been successfully launched in Vietnam, the U.S., and the Netherlands to better serve overseas customers[5]. - Feasibility studies are being conducted for two overseas production bases in the U.S. and Eastern Europe, targeting local production of animal nutrition products[6]. - The Group aims to achieve full operational status for the new MSG and chemical plant, strengthening market leadership and maintaining a rational competitive environment[6]. - The Group plans to confirm site locations in the U.S. and Eastern Europe in 2024 as part of its internationalization strategy[59]. Cost and Pricing Dynamics - The price of xanthan gum reached a historical high of over RMB40,000 per tonne in the first half of 2023, but dropped to approximately RMB30,000 per tonne by November 2023[10]. - The price of 98% lysine was RMB9,410 per tonne in 2023, representing a decrease of 13.3% compared to 2022[10]. - The price of 70% lysine was RMB5,810 per tonne in 2023, representing a drop of 11.2% compared to 2022[10]. - The overall supply of threonine increased in 2023, with the price being RMB10,740 per tonne[10]. - Average selling price of MSG decreased by approximately 6.9% to RMB8,006 per tonne in 2023, while sales volume increased by approximately 3.0% to 1,291,309 tonnes[22]. - Revenue of threonine dropped by 14.1% to approximately RMB2,121.0 million in 2023, compared to 2022[26]. Expenses and Financial Management - Selling and marketing expenses increased by 2.7% and administrative expenses increased by 14.1% compared to 2022[15]. - Finance income increased by 228.0% to approximately RMB330.5 million in 2023, compared to 2022[16]. - Finance costs decreased by 63.4% to approximately RMB179.5 million in 2023, compared to 2022[16]. - Depreciation expense was approximately RMB1,116.1 million, a decrease of RMB36.5 million, or 3.2%, compared to 2022[41]. - The Group reported a net cash inflow of approximately RMB1,704.9 million from operating activities in 2023, down from RMB3,600.1 million in 2022[50]. - Total dividends for the Year, including interim dividends, reached RMB1,337.6 million, with a per share dividend of RMB52.9 cents[42]. Corporate Governance - The Board comprises three executive Directors and three Independent non-executive Directors, ensuring a balanced governance structure[75]. - The Chief Executive Officer is responsible for daily operations and implementing Board decisions[78]. - Independent non-executive Directors represent over one-third of the Board, maintaining a proper balance of power[78]. - The Company has complied with the Corporate Governance Code throughout the year[74]. - The Company held four regular Board meetings during the Year, with attendance rates for Directors ranging from 80% to 100%[90]. - The Company encourages Directors and senior executives to enroll in professional development courses related to corporate governance practices[81]. Environmental, Social, and Governance (ESG) Initiatives - Fufeng Group was recognized as "Aon's 2023 China Best ESG Employer" for its significant achievements in ESG practices[70]. - The company is committed to integrating ESG management with corporate strategy and operations to pursue sustainable development[69]. - Cumulative resources invested in public welfare reached RMB 2,068,354[72]. - The Group established the ESG Committee on August 31, 2021, to promote environmental, social, and governance initiatives, comprising two executive directors and three independent non-executive directors[118]. Shareholder Relations - The Group aims to maximize profits and distribute dividends to shareholders, with key performance indicators focused on profits attributable to shareholders[133]. - The Group maintains good relationships with suppliers and customers, with no significant disputes reported during the year[135]. - The Company recognizes the importance of effective communication with shareholders and has established a communication policy to ensure timely access to relevant information[119]. - The Company conducted regular briefings and meetings with institutional investors to provide up-to-date information about its development[124]. Share Repurchase and Capital Management - The Group repurchased a total of 11,742,000 shares at an aggregate consideration of approximately HKD 48.3 million during the year[61]. - Subsequent to December 31, 2023, the Group repurchased an additional 4,799,000 shares for approximately HKD 20.0 million[62]. - The highest and lowest prices per share during the repurchase in November were HKD 4.20 and HKD 3.84, respectively, totaling HKD 25.1 million[168]. - The company has sufficient public float to comply with listing rules as of the report date[164]. Risk Management - The Company has established a Risk Management Manual and a risk management strategy to enhance management and risk prevention capabilities[103]. - The Risk Management process includes risk identification, handling, monitoring, and reporting to ensure effective risk management[107]. - The annual risk assessment identified key risks and their responsive mitigating controls, which were documented and reported to the Board[108].
阜丰集团(00546) - 2023 - 年度财报