万洲国际(00288) - 2024 - 中期财报

Financial Performance - Total revenue for the first half of 2024 was $12,293 million, a decrease of 6.3% compared to $13,116 million in the same period of 2023[7]. - Operating profit increased by 78.4% to $1,140 million, compared to $639 million in the same period of 2023[7]. - Profit attributable to shareholders before biological fair value adjustments increased by 81.2% to $694 million, with basic earnings per share rising to 5.41 cents from 2.99 cents[7]. - Pork revenue fell by 11.7% to $4.926 billion, with a significant drop of 16.4% in China attributed to lower slaughter volumes[17]. - The company recorded a total slaughter volume of 22.29 million pigs, a decrease of 12.2% compared to the previous period[16]. - The group’s net profit attributable to shareholders for the first half of 2024 was $784 million, up from $420 million in the same period of 2023, reflecting an increase of approximately 86.2%[78]. - The reported profit before tax for the group was $1,171 million for the first half of 2024, compared to $657 million in the same period of 2023, indicating a significant increase of approximately 78.2%[74]. - The company achieved significant profit growth during the review period, driven by favorable market conditions and operational reforms in pig farming[45]. Revenue Breakdown - The business in China accounted for 31.7% of total revenue and 39.2% of operating profit, down from 34.2% and 81.4% respectively in the previous period[8]. - The total revenue from the China segment was $4,322 million for the first half of 2024, down from $5,054 million in the same period of 2023, a decrease of about 14.5%[72]. - The U.S. and Mexico segment reported revenue of $6,674 million for the first half of 2024, compared to $7,008 million in the same period of 2023, a decline of approximately 4.8%[72]. - The Europe segment generated revenue of $1,724 million for the first half of 2024, a decrease from $1,623 million in the same period of 2023, representing an increase of approximately 6.2%[72]. Cost and Expenses - The company’s total compensation expenses for the review period were $2.009 billion, reflecting a 3.8% decrease due to effective cost control measures[28]. - Research and development expenses increased to $101 million in the first half of 2024, compared to $92 million in the same period of 2023, reflecting a growth of approximately 9.8%[74]. - The group incurred $277 million in property, plant, and equipment additions for the six months ended June 30, 2024, compared to $296 million for the same period in 2023[80]. Cash Flow and Liquidity - As of June 30, 2024, the company had cash and bank balances of $797 million, down from $1.156 billion as of December 31, 2023[21]. - The company maintained a liquidity ratio of 1.7 times as of June 30, 2024, compared to 1.6 times as of December 31, 2023[21]. - The net cash flow from operating activities was $689 million, a significant increase from $2 million in the same period of 2023[59]. - The company reported a cash and bank balance of $797 million, with bank overdrafts amounting to $27 million[60]. Debt and Financing - The total outstanding loans amounted to $3.397 billion as of June 30, 2024, an increase from $3.252 billion as of December 31, 2023[24]. - The company’s debt-to-equity ratio was 31.3% as of June 30, 2024, compared to 30.5% as of December 31, 2023[26]. - Financial costs decreased by 12.9% to $74 million during the review period, benefiting from a decline in average loan interest rates[27]. - Approximately 93.3% of the company's loans were at fixed interest rates as of June 30, 2024, up from 88.9% on December 31, 2023, indicating a strategy to manage interest rate risk[40]. Biological Assets and Inventory - The fair value of biological assets as of June 30, 2024, was $1.388 billion, an increase from $1.363 billion on December 31, 2023, with a net gain of $96 million during the review period[29]. - The fair value of current biological assets was $1,158 million as of June 30, 2024, compared to $1,149 million as of December 31, 2023[86]. - Total inventory as of June 30, 2024, was $2,921 million, slightly up from $2,919 million as of December 31, 2023[88]. Acquisitions and Investments - The company completed the acquisition of a high-end dry sausage production facility in Tennessee from Cargill Meat Solutions Corporation in July 2024, aimed at enhancing its value-added meat products business[30]. - In March 2024, the company acquired 50.1% of Argal Alimentación, S.A., a Spanish producer of processed meats, establishing a solid platform for growth in Spain and Europe[31]. - The company acquired 100% of Goodies Meat Production S.R.L. in February 2023, contributing $13 million to revenue and $1 million to consolidated profit for the six months ending June 30, 2023[104][105]. Shareholder Information - The company declared an interim dividend of HKD 0.10 per share, up from HKD 0.05 in the previous period[7]. - The interim dividend is expected to be paid on September 25, 2024, to shareholders listed as of August 30, 2024[138]. - The company’s major shareholders include Mr. Wan with a 27.41% stake and Mr. Ma with a 39.20% stake, collectively controlling significant voting rights[140]. Legal and Compliance - Smithfield paid a total of approximately $194 million to settle all collective claims related to antitrust litigation, with 29 individual cases still pending[42]. - The company plans to actively defend against remaining claims in the Maxwell lawsuit[116]. - The group intends to vigorously contest the antitrust allegations in the ongoing litigation[114]. Strategic Focus and Future Outlook - The company is focused on product structure adjustments, expanding sales networks, managing prices, and cost savings to adapt to changing market conditions[45]. - The company continues to explore opportunities for market expansion and potential acquisitions to enhance its growth strategy moving forward[59]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by the end of 2025[165].