Financial Performance - The company achieved a revenue of approximately RMB 22.46 billion in 2024, representing a year-on-year growth of 39.0%[8]. - Net profit for the year was approximately RMB 4.20 billion, a significant recovery from a loss of RMB 1.99 billion in 2023[8]. - The company's revenue from the pig segment reached RMB 18,271.6 million in 2024, representing a year-on-year growth of 49.1% due to continuous technological empowerment and efficient team management[43]. - The overall revenue for 2024 was RMB 22,463.0 million, an increase of 39.0% from RMB 16,155.4 million in 2023, primarily driven by growth in the pig segment[50]. - The fair value profit before biological asset adjustment was RMB 3,297.4 million in 2024, compared to a loss of RMB 1,278.5 million in 2023, driven by increased pig prices and reduced production costs[42]. - The net profit after biological asset adjustment totaled RMB 4,201.7 million in 2024, a significant recovery from a net loss of RMB 1,992.1 million in 2023[42]. - The overall gross margin improved significantly from 0.7% in 2023 to 21.7% in 2024, attributed to rising pig prices and cost reduction measures[52]. - The sales cost for 2024 was RMB 17,597.7 million, a 9.7% increase from RMB 16,035.7 million in 2023, mainly due to increased pig sales volume[51]. - The EBITDA (before fair value adjustment) for 2024 was RMB 4,624.3 million, a significant increase from RMB 9 million in 2023[65]. Production and Sales - The company sold 8,544,396 heads of commercial pigs in 2024, with an average selling price of RMB 2,193 per head, compared to 6,659,735 heads sold in 2023 at RMB 1,832[8]. - The poultry segment, particularly yellow feathered chickens, sold 88,120,210 heads in 2024, maintaining an average price of RMB 36.1[8]. - The company sold approximately 88.12 million yellow feathered chickens in 2024, maintaining stable production capacity compared to the previous year[48]. - The poultry segment revenue was RMB 3,275.8 million in 2024, a year-on-year decrease of 1.7% due to slight declines in both price and sales volume[48]. Corporate Governance - The board of directors emphasizes maintaining high corporate governance standards to protect shareholder interests and enhance corporate value[87]. - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independent judgment and oversight[92]. - The company has established an independent board evaluation mechanism to enhance board effectiveness and shareholder protection[103]. - The audit committee held three meetings during the reporting period and met with external auditors three times to review the company's financial reports and accounts[112]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee, to oversee specific areas of the company's affairs[109]. Research and Development - The company has entered into a technical cooperation agreement with the Chinese Academy of Agricultural Sciences to enhance research and development capabilities[11]. - The management team consists of 186 R&D members, with about 60.8% holding a master's degree or higher, ensuring strong expertise in breeding, feed, nutrition, and health management[46]. - The company emphasizes talent as a fundamental driver, combining technology and management to foster innovation and growth[26]. Risk Management and Compliance - The company has a risk management and internal control system in place, which has been reviewed and deemed effective by the board during the reporting period[141]. - The company has implemented strict biosecurity measures to mitigate disease risks in livestock, ensuring no significant losses due to diseases in 2024[82]. - The company has adopted an anti-corruption policy to prevent internal corruption and bribery, with open internal reporting channels for employees[143]. Shareholder Engagement and Dividends - In 2024, the company plans to distribute cash dividends of approximately RMB 350 million to all shareholders[26]. - The company reported a proposed final dividend of RMB 0.90 per share for the year ending December 31, 2024, compared to no dividend in 2023, pending shareholder approval at the annual general meeting on April 22, 2025[172]. - The company emphasizes effective communication with shareholders through various channels, including annual general meetings and investor relations activities[155]. Sustainability and ESG Initiatives - The company is committed to investing in ESG initiatives, following national fertilizer reduction action plans to promote sustainable agricultural development[85]. - The company has established a comprehensive ESG policy and has not faced any significant fines or penalties related to health, safety, or environmental regulations during the reporting period[181]. Future Plans and Strategies - By 2025, the company aims to achieve new milestones through efficiency improvements, cost reductions, and high-quality development, while strictly controlling various risks[84]. - The company will enhance its disease prevention system and invest in biosecurity to improve breeding environment standards and response capabilities[84]. - The company will focus on expanding its market share and sales network in Sichuan, with Chengdu, Meishan, and Yibin as core bases[85].
德康农牧(02419) - 2024 - 年度财报