Financial Performance - In the fiscal year 2022, China Kangda Food Company Limited reported a revenue of approximately RMB 1,745.8 million, representing a 14.9% increase from RMB 1,519.6 million in the previous fiscal year[12]. - The gross profit for the fiscal year 2022 was RMB 121.5 million, which is a significant increase of 68.6% compared to RMB 72.1 million in fiscal year 2021[12]. - The net loss attributable to the owners of the company decreased to RMB 15.4 million in fiscal year 2022, down 62.0% from a loss of RMB 40.6 million in fiscal year 2021[25]. - The company's gross margin improved from 4.7% in fiscal year 2021 to 7.0% in fiscal year 2022, indicating better cost management and pricing strategies[25]. - Revenue increased by 14.9% from approximately RMB 1,519.6 million in the fiscal year 2021 to approximately RMB 1,745.8 million in the fiscal year 2022[45]. - Overall gross profit margin improved to 7.0%, up from 4.7% in the previous fiscal year, with processed food gross margin increasing to 13.4%[54][55]. Product Revenue Breakdown - Processed foods accounted for RMB 738.7 million (42.3%) of total revenue in fiscal year 2022, while chilled and frozen chicken meat contributed RMB 598.7 million (34.3%) and chilled and frozen rabbit meat contributed RMB 160.2 million (9.2%)[19]. - Revenue from chilled and frozen chicken increased by 64.7% to approximately RMB 598.7 million, driven by recovering market demand and increased production capacity[50]. - Revenue from chilled and frozen rabbit meat decreased by 28.1% to approximately RMB 160.2 million due to stricter environmental regulations affecting rabbit farming[51]. - Revenue from other products rose by 27.2% to approximately RMB 248.2 million, largely due to the growth in domestic pet food sales[52]. - Revenue from the Chinese market increased by 24.4% to approximately RMB 1,189.0 million, contributing 68.1% of total revenue[53]. Market and Expansion Strategies - The sales volume and prices of chicken products increased due to the gradual recovery of the consumer market, contributing to the overall revenue growth[25]. - The company continues to adopt stable expansion strategies to strengthen its foothold in the rabbit meat segment, which is a key area of growth[7]. - The company plans to expand its own poultry farms or acquire poultry farms in 2023 to achieve revenue and profit growth[26]. - The company plans to focus on high-value processed foods and high-quality chicken products in 2023, aiming for revenue and profit growth through expanding or acquiring chicken farms[46]. Challenges and Market Conditions - In FY2022, the consumer industry faced challenges due to trade protectionism and global economic recession, but the company's essential products limited the impact of these uncertainties[26]. - The food industry will continue to face low growth rates and intensified competition, with food safety and health being top consumer concerns[27]. - The consumer market rapidly recovered in Q1 2023 following the lifting of pandemic control measures, with expectations for continued consumption upgrades and market growth[26]. Corporate Governance - The company has adhered to the corporate governance code during the fiscal year ending December 31, 2022, with a noted deviation from one specific provision[86]. - The board of directors is responsible for the overall performance of the company and consists of five executive directors and three independent non-executive directors[87]. - The company has established clear guidelines for matters requiring board approval, including mergers and acquisitions, investments, and significant operational policies[91]. - The board has established various committees, including the remuneration committee, to oversee critical functions and ensure effective internal controls[99]. - The company has established a strong corporate governance framework, ensuring compliance with international financial reporting standards and timely disclosure of financial performance[7]. Risk Management and Internal Controls - The company has implemented a corporate risk management framework to assess and address financial, operational, IT, and compliance risks[7]. - The internal audit function identified no significant deficiencies or weaknesses in the internal control system during the fiscal year 2022[141]. - The audit committee reviewed the adequacy and effectiveness of the internal control and risk management systems and provided recommendations for improvement[130]. - The board confirmed that the risk management and internal control systems cover all significant controls, including financial, operational, and compliance controls[142]. Employee and Management Information - Total employee costs for the fiscal year were approximately RMB 201.6 million, up from RMB 195.5 million in the previous fiscal year[77]. - The company employed 1,998 employees in China as of December 31, 2022, down from 2,849 employees a year earlier[77]. - The total remuneration payable to senior management (excluding directors) for the fiscal year 2022 amounted to RMB 2,578,000[107]. - The remuneration for individual directors in the fiscal year 2022 included RMB 4,279,000 for Fang Yu, RMB 720,000 for An Fengjun, and RMB 3,851,000 for Li Wei[111]. Financial Position and Assets - Cash and cash equivalents increased by approximately 42.8% to about RMB 197.9 million as of December 31, 2022, primarily due to increased bank borrowings[67]. - Interest-bearing bank borrowings increased by 136.4% to approximately RMB 305.1 million as of December 31, 2022, following new borrowings of approximately RMB 290.0 million[68]. - The company's asset-liability ratio was 77.7% as of December 31, 2022, compared to 50.2% a year earlier, indicating a significant increase in debt levels[72]. - Biological assets increased by 50.0% in the fiscal year 2022, reflecting the expansion of broiler chicken farming due to market recovery[67]. Shareholder Communication and Policies - The company has established a shareholder communication policy to ensure effective communication with shareholders and encourages participation in annual general meetings[165]. - The company recognizes the benefits of a diverse board and believes it is essential for achieving strategic goals and sustainable development[174]. - The board aims to ensure that changes in its composition do not cause inappropriate disruption[172]. - The company has a dedicated internal investor relations function to facilitate regular communication with shareholders and analysts[165].
康大食品(00834) - 2022 - 年度财报