SMAC(SH:600073)2023-03-29 16:00Financial Performance - In 2022, the company achieved a net profit attributable to shareholders of RMB 502,770,556.40, representing a 66.05% increase compared to RMB 302,783,788.43 in 2021[6]. - The company's operating revenue for 2022 was RMB 24,987,303,985.90, reflecting a 5.80% growth from RMB 23,617,346,326.03 in the previous year[22]. - The net profit after deducting non-recurring gains and losses was RMB 429,532,594.66, which is an 82.89% increase from RMB 234,852,978.66 in 2021[22]. - Cash flow from operating activities reached RMB 1,978,524,677.95, a significant increase of 257.82% compared to RMB 552,942,710.85 in 2021[22]. - The total assets of the company at the end of 2022 were RMB 15,792,866,740.61, up 5.45% from RMB 14,977,084,880.05 at the end of 2021[22]. - The company's net assets attributable to shareholders increased to RMB 4,845,803,429.07, a 10.18% rise from RMB 4,397,884,561.39 in 2021[22]. - The proposed cash dividend for 2022 is RMB 1.61 per 10 shares, totaling RMB 150,974,444.99, which represents a cash dividend payout ratio of 30.03%[6]. - The basic earnings per share increased to RMB 0.54, representing a growth of 68.75% from RMB 0.32 in 2021[31]. - The weighted average return on equity rose to 10.88%, an increase of 3.96 percentage points from 6.92% in 2021[23]. Market and Industry Insights - The company is positioned as a leading player in the meat processing industry, with a comprehensive supply chain from pig farming to meat processing and distribution[32]. - The meat processing market in China is still underdeveloped, with processed meat accounting for less than 10% of total meat production, compared to 40%-60% in developed countries[37]. - Beef consumption in China accounted for approximately 18.4% of global beef consumption in 2022, indicating significant market potential[37]. - The average per capita beef consumption in China increased from 1.51 kg in 2013 to 2.50 kg in 2021, showing a rising trend[37]. - The global inflation and labor shortages have increased production costs, but also provided opportunities for higher profit margins in the beef business due to elevated international beef prices[30]. Operational Strategies - The company is focusing on brand building and channel expansion to maintain stable growth amid complex market conditions[31]. - The company aims to leverage the growing demand for processed foods, such as pre-cooked and semi-finished products, to create new profit models despite challenges in the dining sector[30]. - The company has implemented a breeding model combining self-breeding and external pig purchases to enhance scale efficiency and food safety[41]. - The company is actively collaborating across its pork business segments to stabilize operational performance during market downturns[47]. - The company is focusing on cost control and efficiency improvements in its pig farming operations to mitigate losses[92]. Product Development and Innovation - In 2022, the company launched 182 new products across 9 major series and has 45 new products in the pipeline[48]. - The company launched 14 new products including hometown meatballs and marinated pork trotters, and customized over 30 products for clients like Hema[53]. - The company is leveraging its strong R&D capabilities to continuously optimize and innovate its product offerings in response to market demands[49]. - The company is responding to consumer trends by developing health-oriented and convenient products for younger demographics[99]. Environmental and Social Responsibility - The company invested 14.07 million RMB in environmental protection during the reporting period[158]. - The company has committed to reducing its Scope 1 and Scope 2 carbon emissions by 42% from 2020 levels by 2030 as part of its sustainability initiatives[190]. - The company has established a comprehensive environmental management system for its overseas subsidiaries, focusing on biodiversity and pollution prevention[189]. - The company has developed a roadmap for reducing packaging materials in collaboration with suppliers, contributing to its sustainability goals[190]. - The company achieved a reduction of 4,544 tons in carbon dioxide equivalent emissions through various measures, including the use of solar energy and the development of zero-carbon certified beef products[190]. Governance and Management - The company has established a governance structure that ensures independent operation of the board and management, safeguarding minority shareholders' rights[109]. - The company has appointed independent directors to enhance governance and oversight within its operations[131]. - The company held multiple shareholder meetings in 2022, including the annual general meeting on April 22, 2022, where key reports and proposals were approved[114]. - The company continues to focus on maintaining a stable leadership team to support its strategic objectives[127]. - The total compensation for the board members and senior management during the reporting period amounted to CNY 751.5 million[118]. Risks and Challenges - The company has outlined potential risks in its operations and future strategies in the management discussion section of the report[9]. - The company faces operational risks from overseas businesses due to legal, policy, and economic environment differences, particularly in New Zealand[106]. - The company is addressing labor shortages and rising operational costs in the New Zealand red meat industry, which may impact profitability[96]. - The overall market for pork consumption is expected to face short-term pressure but may improve in the long term as consumer confidence gradually recovers[94].