NEW HOPE(SZ:000876)2023-04-28 16:00Livestock Production and Sales - In 2022, the company sold 14.61 million pigs and 390 million poultry, significantly increasing the contribution of livestock farming to overall revenue and profit [13]. - The company’s pig farming output reached 14.62 million heads in 2022, ranking third nationally [79]. - The company sold a total of 14.61 million pigs, including 2.12 million breeding pigs and 12.49 million fattening pigs, representing a year-on-year increase of 4.64 million pigs, or 46.46% [105]. - The company reported a revenue of 22.397 billion yuan from the pig industry, a year-on-year increase of 30.19% [109]. - The company processed 2.91 million pigs, an increase of 890,000 pigs, or 44% year-on-year, with pork product sales reaching 401,100 tons, up 36% [108]. - The average PSY (Pigs Sold per Year) in the industry was approximately 21 in 2022, with large enterprises achieving PSY above 20, while farmers averaged around 15 [65]. - The company has a dual breeding system for pigs, primarily using the Hai Boer and PIC breeds, maintaining an average PSY of over 24 in its mother pig farms, which is industry-leading [79]. - The company aims to achieve a pig output target for 2022, indicating a focus on production growth [4]. Feed and Raw Material Management - The cost of feed raw materials typically accounts for over 90% of total feed costs, making fluctuations in raw material prices a significant risk for the company [9]. - The company has increased the use of hedging tools since 2020 to manage raw material price volatility effectively [12]. - The average price of soybean meal increased by approximately 27% year-on-year in 2022, driven by international geopolitical conflicts and rising global agricultural product prices [11]. - The company has established strategic partnerships with multiple domestic and international raw material suppliers to optimize procurement costs and enhance supply chain financing [12]. - The company has implemented a centralized procurement model for feed raw materials, optimizing cost and enhancing competitiveness in the feed sector [87]. - The company is focusing on the development of non-grain protein feed alternatives, specifically through the synergistic fermentation of various by-products like canola meal and palm meal [125]. Financial Performance - The company's operating revenue for 2022 was ¥141.51 billion, an increase of 12.07% compared to ¥126.26 billion in 2021 [44]. - The net profit attributable to shareholders was a loss of ¥1.46 billion, improving by 84.77% from a loss of ¥9.59 billion in 2021 [44]. - The net cash flow from operating activities reached ¥9.24 billion, a significant increase of 1,742.26% compared to ¥501.46 million in 2021 [44]. - The company has a strong financial position with over 100 billion yuan in credit from various financial institutions, maintaining a credit utilization rate of less than 70% [91]. - The company reported a total of RMB 1.49 billion in unutilized raised funds, indicating a utilization rate of approximately 8.69% [149]. - The company’s feed segment generated 79.18 billion yuan in revenue, accounting for 55.95% of total revenue, with a year-on-year growth of 11.81% [109]. Food Safety and Quality Management - The company has established a comprehensive food safety management system across the entire supply chain, ensuring strict oversight from feed to food [23]. - The company has achieved multiple food safety certifications, including BRC and China-HACCP, enhancing its reputation in the industry [24]. - The company is committed to ensuring food safety through a controllable and traceable internal circulation system [42]. Technological Innovation and R&D - The company is focusing on technological innovation, including the development of bio-environmental feed through microbial fermentation technology [58]. - The company has developed proprietary breeding and production management software, enhancing the efficiency of breeding value calculations and improving the overall breeding process [86]. - The company is conducting metabolic trials with black soldier fly and microbial protein to evaluate their nutritional value and establish feeding recommendations [125]. - The company’s R&D expenditure increased by 20% in 2022, emphasizing its commitment to innovation in animal husbandry [169]. Market Trends and Challenges - The average cost of pig farming in the industry has increased by 3-5 RMB/kg compared to pre-African swine fever levels, leading to significant financial pressure on the industry [70]. - The company is facing challenges with rising raw material costs, which have impacted feed and pig business operations, leading to a cost increase of approximately 20% [188]. - The poultry industry has a more stable market structure compared to the pig industry, with leading companies maintaining consistent market shares [64]. Strategic Initiatives and Future Outlook - The company is actively exploring new breeding models and enhancing cooperation with compliant large and medium-sized farms to ensure stable breeding resources [20]. - The company plans to enhance its digital management capabilities, aiming to become a model for digitalization in the agricultural and animal husbandry industry [173]. - The company aims to achieve a revenue growth target of 15% for the upcoming fiscal year [190]. - The overall outlook for 2023 remains positive, with expectations of increased demand in the agricultural sector [190].