SMAC(SH:600073)2024-08-29 08:32Financial Performance - The company's operating revenue for the first half of 2024 was CNY 11,601,598,700.01, representing a year-on-year increase of 1.68% compared to CNY 11,410,316,821.16 in the same period last year[14]. - The net profit attributable to shareholders of the listed company decreased by 24.17% to CNY 253,348,285.38 from CNY 334,084,026.36 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 33.89% to CNY 176,197,030.81 compared to CNY 266,537,569.28 in the same period last year[14]. - Basic earnings per share decreased by 24.16% to CNY 0.270 compared to the same period last year[15]. - Net profit attributable to shareholders, excluding non-recurring gains and losses, decreased by 32.14% to CNY 0.19 per share[15]. - The weighted average return on equity decreased by 1.7 percentage points to 5.07%[15]. - The net profit from non-recurring gains and losses amounted to CNY 77,151,254.57 after tax adjustments[17]. - The company achieved a revenue of 11.602 billion yuan in the first half of 2024, an increase of 1.92 billion yuan or 1.68% compared to 11.410 billion yuan in the previous year[28]. - The net profit attributable to shareholders decreased to 253.35 million yuan, down 24.17% from 334.08 million yuan in the previous year[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 176.20 million yuan, a decrease of 33.89% from 266.54 million yuan in the previous year[28]. Cash Flow and Assets - The net cash flow from operating activities was CNY 99,787,186.64, a significant recovery from a negative cash flow of CNY -407,395,794.97 in the previous year[14]. - The total assets at the end of the reporting period were CNY 14,060,684,044.93, down 8.22% from CNY 15,320,349,903.78 at the end of the previous year[14]. - The net assets attributable to shareholders of the listed company increased by 1.84% to CNY 5,040,368,567.59 from CNY 4,949,498,401.27 at the end of the previous year[14]. - The company's total assets included overseas assets amounting to ¥5.13 billion, accounting for 36.51% of total assets[37]. - The company's inventory decreased by 13.57% to approximately ¥2.59 billion, down from ¥2.99 billion at the end of the previous year[36]. - The total current assets as of June 30, 2024, amounted to ¥7,980,539,578.36, a decrease of approximately 11.3% from ¥8,997,665,817.91 as of December 31, 2023[97]. - Cash and cash equivalents decreased to ¥3,035,137,682.26 from ¥3,619,247,370.05, reflecting a decline of about 16.1%[97]. - Accounts receivable increased to ¥1,731,735,913.76, up from ¥1,505,266,636.58, representing a growth of approximately 15.0%[97]. - Inventory decreased to ¥2,586,974,745.55 from ¥2,992,974,394.52, indicating a reduction of about 13.6%[97]. Market and Industry Insights - The company is a leading player in the domestic food production and sales industry, particularly in canned meat and processed meat products[17]. - The average per capita meat consumption in China was 34.6 kg in 2022, with pork accounting for 77.75% of this figure[18]. - The overall supply of livestock products in China increased by 0.6% year-on-year in the first half of 2024, although prices remained low[19]. - The deep processing of meat products in China is still in its early development stage, with significant growth potential in the market[19]. - The beef and lamb consumption in China is projected to grow at annual rates of 1.6% and 1.3% respectively from 2022 to 2032, outpacing pork consumption growth[21]. - The brand food industry is expanding steadily, benefiting from national policies and rising income levels, with a shift towards health-oriented and functional products[21]. - The company is focusing on enhancing its supply chain and cold chain logistics to improve meat quality and safety[19]. - The company operates a comprehensive supply chain for pork and beef, including breeding, slaughtering, and deep processing[22]. Product Development and Innovation - The company has not disclosed any new product or technology developments in this report[3]. - The company launched new products aimed at younger consumers, focusing on lightweight packaging, clean labeling, and youthful flavors[28]. - The company’s subsidiary focuses on producing various marinated and pre-cooked meat products, catering to the growing demand for convenience foods[24]. - The company launched four new Douyin products, including stir-fried chicken offal and five-spice beef, while also developing customized products for major catering enterprises[29]. - The company emphasized brand innovation and cultural empowerment through various promotional activities targeting young consumers[29]. - The company faced increased competition in the canned food sector, leading to a focus on new product development to enhance competitiveness[31]. Risk Factors and Challenges - The company has highlighted potential risk factors in its operations, which are detailed in the management discussion and analysis section[3]. - The company is facing macroeconomic risks, including inflation pressures and geopolitical conflicts, which may adversely affect its performance[46]. - The company is focused on enhancing biosecurity measures to combat the ongoing African swine fever threat, which remains a significant risk for the pig farming industry[46]. - The company anticipates that the price of live pigs will experience significant recovery in the second half of 2024, influenced by traditional holiday consumption patterns[46]. - The company is enhancing its foreign exchange risk management to mitigate the impact of international currency fluctuations on its overseas operations[48]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with specific emissions data reported for various pollutants[53]. - The company reported a total nitrogen discharge of 11.51 mg/L and a biochemical oxygen demand of 15.833 mg/L in wastewater[54]. - The company has implemented measures to ensure compliance with environmental standards, including specific pollutant discharge limits[54]. - The company has established emergency response plans for environmental incidents in accordance with national laws[61]. - The company has received no administrative penalties related to environmental issues during the reporting period[63]. Legal and Regulatory Matters - The company has ongoing significant litigation matters, including a total claim of 55 million RMB against Chuzhou Meilin for loan repayment[74]. - The company won a lawsuit against Ningxia Zhongle for a contract dispute, with a claim amount of approximately 19.2 million RMB, and has received 6.46 million RMB in repayments as of June 30, 2024[74]. - The company is involved in a contract dispute with Shanghai Food Import and Export Co., claiming a total of approximately 32.6 million RMB, with ongoing legal proceedings[75]. - The controlling shareholder and actual controller of the company have maintained integrity and have no significant outstanding debts or court judgments[76]. Financial Position and Equity - The total equity attributable to the parent company at the end of the first half of 2024 is CNY 4,949,498,401.27, a decrease of CNY 90,870,166.32 compared to the previous period[113]. - The comprehensive income for the first half of 2024 shows a total loss of CNY 50,417,595.40, while the undistributed profits increased by CNY 184,976,716.99[113]. - The total equity at the end of the first half of 2024 is CNY 7,167,057,478.18, reflecting a change in minority interests of CNY 321,654,883.91[114]. - The retained earnings at the end of the first half of 2024 amount to CNY 2,126,688,910.59, showing a significant increase from the previous period[114]. - The company’s total assets reached CNY 7,167,057,478.18 at the end of the first half of 2024[114]. Accounting Policies and Estimates - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations[123]. - The company adheres to the accounting standards set by the Ministry of Finance of the People's Republic of China, ensuring the financial statements reflect a true and complete picture of its financial status as of June 30, 2024[125]. - The company recognizes expected liabilities when there is a present obligation likely to result in an outflow of economic benefits, with initial measurement based on the best estimate of required expenditures[182]. - The company recognizes revenue when control of goods or services is transferred to customers, which occurs upon fulfilling performance obligations outlined in contracts[184]. - The company assesses expected credit losses for accounts receivable, financing receivables, and other receivables based on credit risk characteristics, without further distinction among different customer groups[146].