Financial Performance - For the year ended December 31, 2021, the turnover was RMB 9,350,465, representing a 0.8% increase from RMB 9,278,864 in 2020[17] - Profit attributable to owners of the Company decreased by 23.4% to RMB 155,473 from RMB 202,890 in the previous year[17] - Total assets decreased by 20.5% to RMB 3,441,261 from RMB 4,329,284 in 2020[17] - The return on total assets was 5.81%, down from 7.02% in 2020, reflecting a decline of 17.2%[17] - Basic profit per share fell by 25.0% to RMB 0.15 from RMB 0.20 in 2020[17] - The net profit margin for the year was 1.1%, down from 2.6% in 2020[21] - The gross profit for 2021 was RMB 819.0 million, reflecting a year-on-year decline of 20.1%, with a gross profit margin of 8.8%[45] - The overall operating profit of the group decreased by approximately 30% year-on-year, but it still maintained a positive profit performance[31] - In 2021, the profit attributable to shareholders decreased by approximately 23.4% year-on-year, amounting to approximately RMB 155,473 thousand, marking the second highest profit in the past ten years[53][55] - The total gross profit for 2021 was approximately RMB 819,048 thousand, reflecting a year-on-year decrease of approximately 20.1%[69] Market Challenges and Strategies - The company faced challenges including a slowdown in consumer demand growth, rising costs, and a significant decline in profitability in the food export segment due to unfavorable market conditions[31] - Despite these challenges, DaChan Food's turnover in the PRC (excluding Southeast Asia) grew by approximately 6.2% year-on-year[31] - The company sold its Southeast Asian feed business to strengthen its financial position and support the construction of a new plant in Bengbu[42] - DaChan Food plans to complete the Bengbu plant by the second quarter of 2023, despite delays caused by rising construction costs[34] - The company is optimistic about the long-term growth of the domestic consumption market in China and will focus resources on this area[34] - Investment in human resources and the development of a digital supply chain system are part of the company's strategy to enhance competitiveness[34] - The Group plans to strengthen cash flow management and reduce operating costs while exploring new growth sources[65] - The Group is focusing on product diversification to mitigate market risks, particularly in the feeds segment[65] Production and Operational Insights - The production volume of live pigs in China reached 670 million in 2021, an increase of 27.4% year-on-year, while pork production was 52.96 million tons, up 28.8% year-on-year[51] - The production capacity of white feather meat chicken reached 5.38 billion in 2021, representing a year-on-year increase of 7.8%, the highest in the past ten years[51] - The domestic feeds segment's operating income increased by approximately 12.5% year-on-year, despite challenges from rising raw material costs[59] - The gross profit of the domestic feeds segment remained flat year-on-year despite rising raw material costs, indicating strong product competitiveness[61] - The Group is actively promoting family-sized products across various retail channels, including e-commerce platforms and community stores, to improve market reach[54][56] Leadership and Governance - Mr. Harn Jia-Chen has been re-designated as an executive director and chairman of the board since March 1, 2020, after serving as a non-executive director since 2007[125] - The company has a strong leadership team with extensive experience in the food and agriculture sectors, enhancing its strategic direction and operational efficiency[128] - The board of directors includes members with significant experience in investment management and agricultural economics, supporting informed decision-making[130] - The Company has adopted a corporate governance code based on the Listing Rules to enhance corporate transparency and governance standards[162] - The Board consists of 9 directors, all industry leaders, responsible for overseeing management performance and evaluating management policies[181] Future Outlook and Investments - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to $1.32 billion[136] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[137] - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency[138] - Market expansion plans include entering three new countries, which are projected to increase market share by 5%[139] - The company is considering strategic acquisitions to bolster its supply chain, with a budget of $100 million allocated for potential deals[140] Sustainability and Corporate Responsibility - The board of directors emphasized the importance of sustainability initiatives, committing to a 40% reduction in carbon emissions by 2025[143] - The Group emphasizes high standards of quality control and has implemented a traceability system for its products[13] - DaChan Food aims to enhance the efficiency and additional value of the entire food production chain while fulfilling its social responsibilities[11]
大成食品(03999) - 2021 - 年度财报