Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 22,463,038 thousand, a significant increase of 39% compared to RMB 16,155,412 thousand in 2023[5] - The company reported a profit before tax of RMB 4,201,795 thousand for 2024, recovering from a loss of RMB 1,991,781 thousand in 2023[5] - The company achieved a gross profit of RMB 4,865,291 thousand in 2024, a substantial increase from RMB 119,673 thousand in 2023[7] - Basic and diluted earnings per share for 2024 were RMB 10.55, a recovery from a loss of RMB 4.88 per share in 2023[5] - The gross profit margin improved significantly from 0.7% in 2023 to 21.7% in 2024, mainly due to rising pig prices and cost reduction measures[64] - The company recorded a profit of RMB 3,297.4 million before fair value adjustments of biological assets in 2024, compared to a loss of RMB 1,278.5 million in 2023[70] - The EBITDA (before fair value adjustments) for 2024 was RMB 4,624.3 million, a significant increase from RMB 9 million in 2023[76] Revenue Breakdown - Sales of live pigs and related products reached RMB 18,271,557,000, up from RMB 12,254,966,000, representing a 49% growth[16] - The revenue from the pig segment in 2024 was RMB 18,271.6 million, representing a year-on-year growth of 49.1%, driven by technological empowerment and efficient team management[48] - The poultry segment revenue in 2024 was RMB 3,275.8 million, a decrease of 1.7% compared to the previous year, attributed to slight declines in both price and sales volume[57] - The auxiliary products segment generated revenue of RMB 915.7 million in 2024, reflecting a 61.4% year-on-year growth, driven by the expansion of slaughtering operations[60] Assets and Liabilities - The total assets less current liabilities increased to RMB 13,992,701 thousand in 2024, compared to RMB 9,243,612 thousand in 2023[8] - Cash and cash equivalents rose significantly to RMB 4,491,952 thousand in 2024, up from RMB 2,544,830 thousand in 2023[8] - The company's net assets were approximately RMB 8,585.3 million, up from RMB 3,855.1 million as of December 31, 2023, indicating a significant increase of 123.3%[81] - The company's net debt was approximately RMB 2,253.2 million as of December 31, 2024, a decrease of 59.1% from RMB 5,533 million as of December 31, 2023, resulting in a net debt to equity ratio of 26.2% compared to 143.5% in the previous year[81] Dividends and Shareholder Returns - The company declared a dividend of RMB 0.90 per share for the year 2024, marking a return to profitability[5] - The company proposed a final dividend of RMB 0.90 per share for the year ending December 31, 2024, compared to no dividend in 2023[32] - The company has proposed a final dividend of RMB 0.90 per share for the year ended December 31, 2024, subject to shareholder approval at the annual general meeting on April 22, 2025[103] Operational Highlights - The number of market pigs sold increased to 8,544,396 heads in 2024, up from 6,659,735 heads in 2023, representing a growth of approximately 28%[3] - Average selling price for market pigs rose to RMB 2,193 per head in 2024, compared to RMB 1,832 per head in 2023, reflecting an increase of about 20%[3] - The company’s vertical integration model in pig and poultry farming allows for high control over food quality and safety throughout the supply chain[35] - The company has established a dynamic raw material database for feed formulation, allowing for effective cost control amid rising raw material prices[52] - The company has implemented strict biosecurity measures to mitigate disease risks in livestock, which is critical for maintaining production capacity and consumer confidence[94] Employee and Compensation - Employee costs increased to RMB 1,559,226,000 in 2024, up 33% from RMB 1,174,243,000 in 2023[22] - The total number of employees increased to 10,475 as of December 31, 2024, from 9,854 in 2023, reflecting a growth in workforce to support business operations[91] - Employee compensation totaled approximately RMB 1,559.2 million in 2024, an increase of 33% from RMB 1,174.2 million in 2023, aligning with market trends and performance[91] Future Outlook and Strategy - The company aims to achieve a new milestone by enhancing efficiency, reducing costs, and focusing on high-quality development in the pig farming sector, poultry sector, and auxiliary products sector by 2025[98] - The company plans to optimize pig farming scale and improve disease prevention systems to ensure a balanced supply and demand in the pig farming sector[99] - In the poultry sector, the company will develop innovative high-performance poultry breeds suitable for the southwestern market of China and strengthen customer relationships in the southern market to maintain profitability[99] - The company will continue to invest in ESG initiatives, including the "Hundred Villages, Million" project, to promote sustainable agricultural development[99] Governance and Compliance - The audit committee, consisting of three members, reviewed the annual performance and consolidated financial statements for the year ending December 31, 2024[115] - The audit firm KPMG confirmed that the figures in the preliminary performance announcement are consistent with the audited consolidated financial statements for the year[116] - The board expressed gratitude to customers, suppliers, and shareholders for their support and trust[123] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[125]
德康农牧(02419) - 2024 - 年度业绩