SMAC(SH:600073)2025-03-28 15:45Financial Performance - The company achieved a net profit attributable to shareholders of RMB 216,058,780.75 for the year 2024, a decrease of 4.22% compared to RMB 225,571,040.08 in 2023[6]. - Operating revenue for 2024 was RMB 21,986,892,507.34, reflecting a decline of 1.70% from RMB 22,367,181,017.29 in 2023[22]. - The basic earnings per share for 2024 was RMB 0.23, a decrease of 4.17% from RMB 0.24 in 2023[23]. - The company reported a decrease of 43.64% in net profit after deducting non-recurring gains and losses, amounting to RMB 86,371,382.46 in 2024 compared to RMB 153,250,373.32 in 2023[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 86.37 million RMB, a decrease of 66.88 million RMB, representing a decline of 43.64%[31]. - The company reported a significant increase in cash received from investments, totaling ¥687,065,871.76, a rise of 4,301.05% compared to the previous period[79]. - The company’s net profit from Silver Fern Farms Limited was negative at -¥141,862,267.98, despite generating revenue of ¥11,431,044,045.42[85]. - The company reported a total purchase amount of 26,323,342.54 for goods and services, compared to 30,526,498.03 in the previous period, indicating a decrease of approximately 7.3%[197]. Cash Flow and Assets - The net cash flow from operating activities increased by 107.75% to RMB 788,513,512.59 in 2024, compared to RMB 379,553,353.21 in 2023[22]. - The company's total assets decreased by 2.84% to RMB 14,885,174,768.82 at the end of 2024, down from RMB 15,320,349,903.78 at the end of 2023[22]. - The company reported a net cash flow from operating activities of -149.10 million RMB in Q4 2024, following a positive cash flow of 837.83 million RMB in Q3 2024[24]. - The company’s long-term borrowings decreased by 71.44%, amounting to ¥57,163,094.14[81]. Market and Industry Trends - The company faced challenges from high inflation and geopolitical conflicts, impacting domestic demand and consumer spending[29]. - The average per capita meat consumption in China reached 39.81 kg in 2023, with pork accounting for 30.48 kg, representing 76.56% of total meat consumption[32]. - The breeding sow inventory at the end of the year was 42.74 million, down 1.6%, with the current inventory at 40.78 million, which is 105% of the normal target[33]. - The pork price has started to rebound due to capacity control, and the pig farming industry is gradually recovering profitability[33]. - The overall beef consumption growth rate is projected at 1.6% annually from 2022 to 2032, higher than the 0.8% growth rate for pork[38]. - The company is facing increased competition in the brand meat product market, with a shift towards e-commerce and new retail channels impacting traditional sales[104]. Product Development and Innovation - The company aims to enhance product competitiveness and accelerate innovation and transformation in response to market challenges[30]. - The company is focusing on brand innovation and cultural empowerment, aiming to increase brand awareness and market share through various promotional activities and new product launches[52]. - The company is committed to product innovation to cater to younger consumers' tastes, while also transforming its business model to integrate offline and online sales[45]. - The company launched several new products in the beef category, including snowflake beef cubes and customized steak products, to meet consumer demand[62]. - The company is focusing on digital channel development, including e-commerce platforms like Douyin and JD, to improve sales efficiency and transparency[61]. Governance and Management - The company maintains a strict governance structure, ensuring independence from its controlling shareholder in operations and decision-making[120]. - The company has established a complete financial management system, ensuring financial independence and compliance with accounting standards[123]. - The company appointed Li Junlong as the new CEO, Wang Wei as Vice President, and Zheng Weifeng as CFO, effective from July 2024[131]. - The company has a clear strategy for independent business operations, ensuring no mixed operations with controlling shareholders[125]. - The company has established specialized committees, including the Audit Committee and the Compensation and Assessment Committee, to oversee various functions[142]. Environmental and Social Responsibility - The company has implemented pollution prevention facilities that operate normally and meet discharge standards, with wastewater treatment managed by qualified personnel[172]. - The company is committed to reducing solid waste and utilizing organic fertilizers from treated sludge[172]. - The company has established a comprehensive environmental management system to monitor and control emissions[178]. - The company has actively engaged in social responsibility initiatives, including donations and educational support, to enhance its public image[184]. - The company is exploring zero-carbon certified beef products as part of its green transformation efforts[183]. Future Outlook and Strategy - The company aims to achieve a total revenue of 22.9 billion yuan in 2025, focusing on cost reduction and value creation[111]. - The company is enhancing its supply chain efficiency by integrating upstream feed business and improving formula quality to reduce costs[112]. - The company is committed to building a low-carbon, efficient, and environmentally friendly production and supply system through advanced production technologies[108]. - The company is strategically focusing on cost reduction and efficiency improvement across its operations to navigate the complex economic environment and ensure sustainable growth[50]. - The company is enhancing its risk management by implementing strict food safety and production safety measures to prevent systemic risks[115].