Financial Performance - For the year ended December 31, 2024, the operating income decreased by 9.1% to RMB5,834,604, compared to RMB6,418,966 in 2023[15]. - Profit attributable to owners increased by 25.1% to RMB58,831, up from RMB47,024 in 2023[15]. - Total assets rose by 2.5% to RMB3,879,690, while net assets increased by 2.0% to RMB2,429,691[15]. - Basic profit per share improved by 25.1% to RMB0.06, compared to RMB0.05 in the previous year[15]. - The return on total assets increased to 2.17%, up from 1.99% in 2023, reflecting a 9.1% improvement[15]. - In 2024, the company's turnover decreased by 9.1% to RMB 5,834,604, while gross profit increased by 10.7% to RMB 733,407, resulting in a gross profit margin of 12.6%[55]. - Profit attributable to equity shareholders rose by 25.1% to RMB 58,831 compared to RMB 47,024 in 2023[55]. Business Segments - The feed business accounted for 44.1% of total turnover in 2024, while meat and processed foods contributed 26.4% and 29.5% respectively[19]. - In 2024, the operating income of the food segment grew by 11% year-on-year, accounting for 44% of the Company's total operating income and 71% of its gross profit[28][30]. - The processed foods business accounted for 44.1% of total operating income and 71.2% of total gross profit, demonstrating its role as the largest revenue and profit source for the Group[67][68]. - The operating income and gross profit of processed foods increased by 10.7% and 9.2% respectively year-on-year, with fourth-quarter growth of 8.7% and 5.5%[71]. - The feeds business experienced a significant decline, with operating income down 24.0% year-on-year and gross profit decreasing by 6.3%[79][80]. - The domestic food business saw operating income and gross profit increase by 9.4% and 10.1% respectively, despite a slow recovery in the domestic catering market[73][75]. - The export food business achieved a notable increase in operating income of 21.5% year-on-year, although gross profit only rose by 2.2%[74][76]. - In 2024, the operating income of the meat product business decreased by 15.9% year-on-year, while gross profit increased by 116.1% year-on-year[84][86]. - The gross profit margin for the meat product business improved to 4.4% in 2024 from 1.7% in 2023[84]. Strategic Initiatives - The Company has restructured its business model to focus on downstream food processing while downscaling upstream breeding operations to mitigate price fluctuation risks in the white feather broiler market[26][40]. - The Company is prioritizing investments in food supply chain, research and development, and digital operations to strengthen its position in the food processing industry[34][36]. - The Company aims to develop healthier and tastier fully-cooked products while promoting antibiotics-free and additive-free measures along the supply chain[33][35]. - The Company is focusing on building core competitiveness in two regions: the Yangtze River Delta with Bengbu as the core and northeast China with Dalian as the core[34][36]. - The Company is committed to optimizing its supply chain by aligning with customer demands and reducing risks associated with market fluctuations[38][40]. - The Company has emphasized cash management and prudent financial operations to navigate the challenging external environment[39][41]. - The Company is investing in automation and digitalization to enhance production efficiency and decision-making capabilities[44]. - Future strategies include expanding food production capacity and developing high-quality, cost-effective products to meet growing market demand for processed foods[77]. - The company plans to focus on food product development and enhance the value of meat products to mitigate the impact of market fluctuations[51]. - The company will continue to diversify its feed products and channels to counter risks associated with the hog cycle and market changes[51]. Governance and Management - The company was awarded an A grade in the Wind ESG rating in July 2024, reflecting its commitment to sustainable development and corporate governance[48]. - The company emphasizes the importance of corporate social responsibility and aims to provide safe and healthy food products to consumers[52]. - The strategic focus remains on downstream food processing rather than upstream scale expansion, ensuring synergistic development across the industrial chain[59]. - The company has a diverse board with members holding degrees from prestigious institutions, enhancing its strategic decision-making capabilities[139][141][146]. - The company emphasizes the integration of finance with the agricultural sector, which may lead to innovative investment strategies[134]. - The board's composition includes professionals with extensive experience in financial advisory and accounting, ensuring robust financial oversight[140][145]. - The company is focused on enhancing its governance structure through the appointment of experienced independent directors[140][147]. - The strategic appointments made in 2023 reflect the company's commitment to improving its operational and governance frameworks[140][145][147]. - The Company has adopted the latest corporate governance code as guidelines for its governance practices[167]. - The Board believes that good corporate governance is essential for maintaining trust with employees, partners, shareholders, and investors[166]. Financial Position - The Group's cash and bank deposit balances decreased by RMB57,193 thousand to RMB469,747 thousand as of December 31, 2024[94]. - The net cash generated from operations in 2024 was RMB306,153 thousand, a decrease of RMB101,099 thousand from 2023[94]. - Interest-bearing borrowings increased by RMB37,158 thousand to RMB567,237 thousand in 2024, with the interest-bearing borrowings to equity ratio at 23.3%[94]. - The Group's interest expense rose by 30.6% to RMB23,168 thousand in 2024, primarily due to an increase in average outstanding borrowings[98]. - The Group recorded other operating income of RMB24,930 thousand in 2024, a slight decrease from RMB25,192 thousand in 2023[90]. - Distribution costs accounted for 6.11% of total turnover in 2024, up from 5.26% in 2023[93]. - The Group's capital expenditure in 2024 amounted to RMB335,465 thousand, primarily funded by internal resources and bank borrowings[101]. - As of December 31, 2024, the Group's contracted capital expenditure not provided in the financial statements was RMB 45,114 thousand, a decrease of 36% from RMB 70,827 thousand in 2023[108]. - The capital expenditure authorized but not contracted for was RMB 93,814 thousand, down 58.7% from RMB 227,107 thousand in 2023[108]. Human Resources - The Group had a total of 8,324 employees as of December 31, 2024, representing an increase of 4.4% from 7,972 employees in 2023[109]. Leadership - Mr. Han Chia-Yau has been the chairman of GWE since 2001 and has been a non-executive director since 2007[123]. - Mr. Harn Jia-Chen has over 30 years of experience in the Asia Pacific feed and food production business[131]. - Mr. Han Jia-Hwan was elected as one of the Taiwan Ten Outstanding Young Persons in 1994 for his contributions to the agricultural industry[131]. - Mr. Harn Jia-Chen has been a member of the remuneration committee since January 2019[127]. - Mr. Han Jia-Hwan has served as the chairman of multiple subsidiaries including DaChan Wanda (Tianjin) Co., Ltd. since 1999[131]. - Mr. Harn Jia-Chen obtained his master's degree in business administration from the University of New Haven in 1986[128]. - Mr. Han Jia-Hwan received his master's degree in business administration from the University of Chicago in 1983[132]. - Mr. Harn Jia-Chen has been a member of the nomination committee since 2007[127]. - Mr. Han Jia-Hwan has been a non-executive director since January 2019 after serving as an executive director from 2007 to 2018[131]. - Mr. Wei An-Ning has extensive experience in the agricultural and food sectors, having held various leadership roles in financial and agricultural institutions[133]. - Mr. Wei Anning has extensive experience in finance and the agricultural and livestock food industry, having held various executive roles and directorships in multiple companies[134]. - Mr. Ting Yu-Shan has been appointed as the chairman of the audit committee effective from June 30, 2023, showcasing the company's commitment to strong governance[140]. - Mr. Hsia, Li-Yan has been appointed as the chairman of the remuneration committee effective from June 30, 2023, indicating a focus on executive compensation oversight[145]. - Ms. Lee Tsai, Yu-Ling has been appointed as the chairlady of the nomination committee effective from June 30, 2023, reflecting the company's emphasis on board diversity and governance[147]. - Mr. Gao Kong-Lian has been appointed as an independent non-executive director effective from June 30, 2023, bringing significant academic and industry experience to the board[150].
大成食品(03999) - 2024 - 年度财报