万洲国际(00288) - 2021 - 年度财报

Financial Performance - Revenue increased by 6.7% to $27,293 million, compared to $25,589 million in the previous year[7]. - Operating profit rose by 13.7% to $1,966 million, up from $1,729 million in the prior year[8]. - Profit attributable to shareholders (before biological fair value adjustments) increased by 7.2% to $1,043 million, compared to $973 million in the previous year[8]. - The company reported a significant increase in profitability after excluding one-time factors such as litigation and pension adjustments[11]. - The company reported a net profit for the year of $1,298 million, compared to $1,092 million in 2020, indicating a significant increase of 18.9%[162]. - The total cost of sales for the year was $22,297 million, compared to $20,563 million in 2020, reflecting an increase of 8.4%[161]. - The company recognized other income of $133 million, up from $74 million in 2020, indicating an increase of 80.5%[161]. - The operating profit for 2021 was $1.895 billion, a 26.4% increase compared to 2020, with significant growth in the U.S. market at 55.0%[47]. Market Dynamics - The U.S. business showed strong recovery with historical high revenue, while the European business faced challenges due to rising feed costs and declining pork prices[11]. - The company operates across multiple regions, including China, the United States, Mexico, Europe, and selected markets in Asia[38]. - The market dynamics in China, the United States, and Europe are crucial for the company's performance[38]. - The demand for high-quality pork products in China is expected to grow due to economic growth and improved living standards[39]. - The recovery of supply in the pork market was driven by the diminishing impact of African swine fever in China[39]. Corporate Governance - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[13]. - The board is responsible for guiding the company's strategic objectives and overseeing business management, ensuring high governance standards across all aspects of the business[82]. - The company has adopted a code of conduct for directors' securities trading, confirming compliance with all standards during the fiscal year ending December 31, 2021[81]. - The board confirmed its responsibility for preparing accounts and ensuring that financial disclosures are balanced, clear, and understandable[105]. - The company has established a structured governance framework with six committees under the board, including the Audit Committee and the Remuneration Committee[91]. Leadership and Management - Wan Long has over 50 years of experience in the meat processing industry and has led the company to become an international business[13]. - The management team has a strong educational background, with degrees in business management and finance from reputable institutions[15]. - The leadership team emphasizes the importance of public relations and corporate governance in their strategic initiatives[16]. - The company has a strong leadership team with extensive experience in finance and management across multiple industries[19][20][21]. - Charles Shane Smith appointed as Executive Director and CEO of Smithfield Foods since August 11, 2021, overseeing daily operations of the vertically integrated business[18]. Sustainability and Social Responsibility - The company was included in the Hang Seng Sustainable Development Enterprises Index and received an A+ rating in 2021, with MSCI upgrading its ESG rating to BBB, indicating recognition of its sustainability performance[75]. - The company actively engages with its community and stakeholders, emphasizing its responsibility to give back to those who have supported its achievements[75]. - The company’s sustainability measures are driven by its business units under the guidance of the Environmental, Social, and Governance Committee[75]. - The company reported a significant charitable contribution of USD 7 million during the review period[121]. Financial Position and Cash Flow - As of December 31, 2021, the company had cash and bank balances of $1.556 billion, with a current ratio of 1.7, down from 1.9 in 2020[56]. - The company’s unused bank financing amounted to $5.796 billion as of December 31, 2021, compared to $5.032 billion in 2020[56]. - The total liabilities rose to $10,724 million in 2021, up from $7,730 million in 2020, indicating a significant increase of 38.7%[164]. - The company’s net assets decreased to $9,687 million in 2021 from $10,985 million in 2020, a reduction of 11.8%[164]. - The net cash generated from operating activities was $1.822 billion, a decrease from $2.357 billion in 2020, primarily due to reduced contributions from the Chinese business[57]. Investment and Acquisitions - The company completed the acquisition of 100% of Mecom Group on June 17, 2021, enhancing its operational presence in Slovakia and Hungary[69]. - On July 7, 2021, the company increased its stake in GCM from 50% to 66%, which is a key investment in Mexico's pork production market[69]. - The company has invested in joint ventures for renewable natural gas production in the US, with Align completing operational measures and Monarch adding two new projects in 2021[70]. Risk Management - The company actively manages commodity price risks through strategic inventory management and hedging activities to mitigate the impact of price volatility on its operations[72]. - The company’s risk management system is deemed effective, with ongoing assessments and monitoring of major risks and their mitigation strategies[71]. - The group has conducted an enterprise risk assessment in 2021 to analyze and report on major risks and establish relevant monitoring measures[107]. Shareholder Information - The company proposed a final dividend of HKD 0.14 per share for the year ended December 31, 2021, compared to HKD 0.125 per share in 2020, resulting in a total dividend of HKD 0.19 per share for 2021, amounting to approximately HKD 25.34 billion or USD 3.25 billion[116]. - The total distributable reserves of the company as of December 31, 2021, amounted to USD 2.754 billion[120]. - The company has no significant contracts with any major shareholders during the review period[130]. - The company has no plans for significant mergers or acquisitions disclosed in the report[130].