Product Quality and Safety - COFCO Joycome Foods achieved recognition as a "National Agricultural Product Quality Safety Good Traceability Monitoring Point" for its Jiangsu operations, showcasing its commitment to product quality[9]. - The company maintains a commitment to quality and safety in its food products, contributing to the health of consumers[122]. - Food safety risks are managed through established protocols and regular inspections to ensure compliance with safety standards[97]. Financial Performance - In 2024, the company's total revenue was RMB 16.326 billion, a decrease of RMB 0.912 billion compared to RMB 17.238 billion in 2023[68]. - The net profit before fair value adjustment of biological assets was RMB 275 million, an increase of RMB 123 million from RMB 152 million in 2023[68]. - Operating revenue decreased by 5.3% year-on-year to RMB 16.33 billion, primarily due to a decline in live pig sales and a proactive reduction in meat imports[40]. - The company recorded a profit before fair value adjustment of biological assets of RMB 275 million in 2024, compared to RMB 152 million in 2023[74]. - The gross profit margin before fair value adjustment of biological assets in 2024 was 7.4%, an increase of 1.9 percentage points year-on-year, driven by improved pig farming market conditions and a month-on-month improvement in costs[70]. Sales and Market Performance - The number of live pigs sold decreased by 31.5% year-on-year to 3,560 thousand heads in 2024[37]. - Fresh pork sales volume increased by 7.1% year-on-year to 262 thousand tons[37]. - The sales volume of branded packaged pork increased by 9.8% year-on-year to 42,317 thousand boxes[37]. - The proportion of branded revenue in the fresh pork business increased by 2.8 percentage points year-on-year to 29.4%[37]. - The company achieved a significant increase in sales of anti-antibiotic certified flaxseed pork products, with annual sales rising over 70%[42]. Technological Innovation and Development - COFCO Joycome Foods has integrated smart farming technologies in its new pig farming projects in Jilin, aiming to reduce production costs and enhance operational efficiency[14]. - The company is focusing on technological innovation and brand premium advantages to reshape the traditional industry and expand market opportunities[45]. - The company has established an industry-leading integrated platform for genomic breeding and production, achieving stable growth in key indicators such as feed-to-meat ratio and litter size[44]. - The introduction of smart farming technologies is expected to address management pain points and improve operational efficiency[99]. Strategic Partnerships and Acquisitions - In 2024, the company completed a strategic acquisition of COFCO Jiahua, enhancing feed processing capacity and optimizing business structure to improve profitability stability[47]. - The company established a strategic partnership with leading research institutions to enhance genetic breeding accuracy and improve key performance indicators[33]. Corporate Governance and Management - The board has fulfilled all corporate governance responsibilities for the fiscal year ending December 31, 2024[127]. - The company has adopted a governance code and has complied with all relevant provisions since April 15, 2024, following the appointment of new leadership[121]. - The board consists of three independent non-executive directors, accounting for over one-third of the total board members[134]. - The company emphasizes the importance of maintaining high corporate governance standards to ensure investor trust and operational integrity[119]. Environmental and Social Responsibility - The company is committed to green farming practices, producing approximately 25 million cubic meters of biogas and achieving 100% compliance in pollution source monitoring across its subsidiaries[44]. - The company has invested in environmental protection initiatives, including a comprehensive waste treatment system for resource utilization[123]. - The company made charitable donations totaling RMB 10.74 million during the year 2024[197]. Risk Management - The company has established internal control systems covering procurement, sales, financial management, and other key areas to minimize risks[170]. - A comprehensive risk assessment was conducted, identifying the top five major risks for 2024: price risk, epidemic risk, operational efficiency risk, food safety risk, and safety production risk[169]. - The company faced significant price risks due to fluctuations in commodity prices, particularly for corn and soybean meal, which are essential feed ingredients[95]. Employee and Talent Development - The total number of employees increased to 13,006 as of December 31, 2024, from 11,951 in 2023, with total employee compensation approximately RMB 1.818 billion[93]. - A talent development system will be established to enhance the reserve of professionals in veterinary production, breeding research, and brand marketing[99]. - The company aims to attract and select outstanding talent by creating a safe and healthy work environment[122]. Future Outlook and Guidance - The company has provided guidance for the next fiscal year, projecting revenue growth of B% and an expected EBITDA margin of C%[118]. - New product launches are anticipated to contribute an additional D million in revenue, with a focus on innovative technologies in the market[119]. - The company is expanding its market presence in regions E and F, aiming for a market share increase of G% by the end of the next fiscal year[119].
中粮家佳康(01610) - 2024 - 年度财报