JOYVIO FOOD(SZ:300268)2023-04-06 16:00Financial Performance - The company reported a significant loss in 2022, with a total impairment of goodwill amounting to CNY 1.229 billion due to rising costs and inflationary pressures [3]. - As of the end of 2022, the equity attributable to shareholders was negative CNY 301.39 million, triggering "delisting risk warning" for the company's stock [7]. - The company's operating revenue for 2022 was ¥5,527,629,682.92, representing a 20.24% increase compared to ¥4,597,218,164.16 in 2021 [23]. - The net profit attributable to shareholders was -¥1,109,847,866.02, a decrease of 284.45% from -¥288,681,797.16 in the previous year [23]. - The cash flow from operating activities increased by 123.23% to ¥678,358,467.83 from ¥303,886,024.78 in 2021 [23]. - The total assets at the end of 2022 were ¥11,146,048,632.43, a decrease of 1.37% from ¥11,300,420,797.67 at the end of 2021 [23]. - The basic earnings per share for 2022 was -¥6.3711, compared to -¥1.6572 in 2021, reflecting a significant decline [23]. - The company reported a net profit margin of -673.07% for 2022, compared to -37.02% in 2021 [23]. - The company experienced a significant increase in non-recurring losses, with a total of ¥4,670,877.81 in 2022 compared to ¥28,590,008.73 in 2021 [30]. - The company is facing uncertainty regarding its ability to continue as a going concern, as indicated by the negative net profit for the last three accounting years [23]. Operational Strategy - The company plans to adjust its operational strategy in 2023, focusing on profitability and cost reduction while expanding its market share in China [4]. - The company aims to improve its asset-liability structure through capital operations in the upcoming year [4]. - The company will continue to focus on channel expansion and improving operational efficiency in 2023 [4]. - The company is implementing cost control measures, including optimizing procurement strategies and enhancing feed conversion rates to mitigate rising costs [185]. - The company plans to adjust its operational strategy to improve cost efficiency and enhance its capital structure to address negative net assets [184]. Market Trends and Demand - The global aquaculture production reached a historical high of 122.6 million tons in 2020, with a total value of $28.15 billion [37]. - The average per capita consumption of aquatic products increased from 9.9 kg in the 1960s to 20.2 kg in 2020, with a projected increase to 21.4 kg by 2030 [37]. - The global Atlantic salmon supply in 2022 was approximately 2.87 million tons, a 1% decrease from the previous year, with Norway and Chile accounting for about 80% of the global supply [41]. - The demand for salmon is expected to continue growing due to increasing global population and health awareness, with sales revenue for salmon increasing by 120% from 2012 to 2021 [42]. - The global salmon market is projected to face supply tightness in the coming years, with a forecasted growth rate of about 2% in 2023 [41]. - The seafood consumption in developing countries is expected to account for over 80% of global seafood consumption by 2030, with China representing 38% of the total [38]. - The company aims to enhance the accessibility of high-quality marine protein, including salmon, to improve national nutrition and health levels [36]. Supply Chain and Production - The cost of salmon feed, primarily driven by rising prices of grains and oils, reached historical highs by the end of 2022, with expectations that salmon farming costs will be higher in 2023 and 2024 compared to 2022 [47]. - The company has established stable partnerships with upstream suppliers and downstream customers, enhancing its position in the cod fish processing market [58]. - The company’s processing facilities ensure high-quality seafood products through strict quality control and microbiological analysis [66]. - The company has implemented advanced biosecurity measures to mitigate risks from bacterial diseases, ensuring stable harvest volumes and product quality [96]. - The company employs live capture technology during the harvesting phase to maintain the freshness and quality of salmon during transport to processing facilities [89]. Product Development and Marketing - The company emphasizes brand building and consumer trust in its premium seafood products, which are increasingly recognized and favored by consumers [60]. - The company is expanding its brand matrix in China, launching multiple product lines including "Jiawo Fresh," "Chuan Xiong Tong Xue," and "Keke Haili," enhancing brand visibility through various promotional activities [75]. - The company launched new products in its seafood retail brand "Jiawo Fresh" including flavored salmon and Arctic shrimp, expanding its product offerings significantly [77]. - The children's nutrition brand "Chuanxiong Classmate" introduced 14 SKUs, including new lunch meat and salmon bone soup products, enhancing its product matrix [77]. - The company is focusing on expanding its market presence in China while consolidating its positions in North America, South America, and Europe [75]. Regulatory and Environmental Factors - The salmon farming industry in Chile is under strict regulatory oversight, with multiple government agencies involved in monitoring various aspects such as biological asset quantity, mortality rates, and environmental conditions [90]. - The application process for salmon farming licenses in Chile is lengthy, taking approximately 4 years, including environmental assessments and approvals from various government bodies [91]. - The Chilean government has announced restrictions on the expansion of salmon farms, emphasizing the need for environmental studies to assess the ecological impact before issuing new licenses [92]. - Salmon farming in Chile has a low carbon footprint, producing only 5.1 kg of CO2 equivalent per kg of salmon, compared to 39.0 kg for beef, making it a more sustainable protein source [95]. Financial Management and Governance - The company has established a new governance structure to enhance operational efficiency and compliance with regulations [198]. - A comprehensive internal control system was developed in accordance with regulatory requirements, enhancing the efficiency and clarity of various operational processes [200]. - The company conducted internal control assessments across domestic business units and initiated IT system audits to ensure the accuracy of biological asset measurements [200]. - The internal control construction in 2023 aims to enhance operational management efficiency and address strategic, financial, operational, and compliance risks [200]. - The performance evaluation system links the compensation of senior management to company and individual performance, overseen by the board's compensation and assessment committee [200].