Financial Performance - For the nine months ended September 30, 2022, the company's operating revenue was approximately RMB 4,512,433 thousand, a decrease of 9% compared to RMB 4,957,866 thousand for the same period in 2021[2] - The gross profit for the same period was RMB 504,235 thousand, showing a slight increase of 0.8% from RMB 500,465 thousand in the previous year, resulting in a gross margin of 11.2%[2] - The profit attributable to shareholders for the nine months was RMB 65,830 thousand, down 33% from RMB 98,305 thousand in the prior year[2] - Basic earnings per share for the nine months was RMB 0.065, compared to RMB 0.097 in the same period last year, reflecting a decrease of 33%[2] - In Q3 2022, the company reported operating revenue of approximately RMB 1,715,549 thousand, an increase of 17.5% from Q2 2022 and a 1.8% increase year-over-year[28] - The profit attributable to shareholders in Q3 2022 was approximately RMB 32,028 thousand, up 13.6% from Q2 2022 and a 42.5% increase compared to the same period last year after excluding Southeast Asia feed business profits[28] Business Challenges - The decline in revenue and profit for the first three quarters was primarily due to the challenges faced by small to medium-sized farms in the feed business, which reduced their inventory or ceased operations due to prolonged low pig prices[29] - Despite a 9.4% year-on-year decline in export revenue due to domestic inflation and low-price competition from Thailand, the food business achieved a gross profit increase of approximately 118.2% year-on-year in the same period[30] - The domestic food revenue growth slowed to approximately 5.6% year-on-year due to the impact of COVID-19 and weak consumer demand[30] - The feed business revenue and gross profit decreased by approximately 22.6% and 36.9% year-on-year, respectively, due to rising raw material costs and a decline in customer breeding volumes[32] Asset Management - As of September 30, 2022, the company's total assets less current liabilities amounted to RMB 2,626,474 thousand, compared to RMB 2,577,075 thousand as of December 31, 2021[14] - The company's non-current assets, including fixed assets, were valued at RMB 1,148,298 thousand as of September 30, 2022, compared to RMB 1,019,618 thousand at the end of 2021[7] - As of September 30, 2022, the company's net assets were approximately RMB 2,331,306 thousand, with cash and cash equivalents accounting for about 18.5% of total assets[35] - The current ratio as of September 30, 2022, was approximately 2.12, slightly down from 2.29 as of December 31, 2021[35] Strategic Focus - The company emphasized a strategy focused on customer retention and supply chain restructuring rather than blind expansion in the current challenging economic environment[28] - The company plans to continue focusing on food business growth, enhance research and development, and optimize supply chain management to improve overall competitiveness and resilience[35] Segment Performance - In the first three quarters of 2022, the food business revenue and gross profit increased by approximately 3.2% and 7.7% year-on-year, respectively[30] - The gross profit of the feed business increased by approximately 65.2% compared to the second quarter of 2022, as the domestic pig prices rebounded in August[32] - The meat business revenue remained stable year-on-year, while gross profit increased by approximately 105.3%[33] - The gross profit of the meat business increased by approximately 34.8% compared to the second quarter of 2022, driven by supply chain restructuring and customer optimization[33]
大成食品(03999) - 2022 Q3 - 季度财报