万洲国际(00288) - 2023 - 中期业绩

Financial Performance - Revenue for the six months ended June 30, 2023, was $13,116 million, a decrease of 2.1% compared to $13,398 million in the same period of 2022[2]. - Operating profit decreased by 47.2% to $639 million from $1,211 million year-on-year[3]. - Profit attributable to the owners of the company (before biological fair value adjustments) fell by 45.4% to $383 million from $701 million in the previous year[3]. - Basic earnings per share (before biological fair value adjustments) decreased by 45.2% to 2.99 cents from 5.46 cents in the same period last year[3]. - Gross profit for the same period was $2,026 million, down from $2,623 million in 2022, indicating a decrease of about 22.8%[44]. - The company reported a pre-tax profit of $610 million, significantly lower than the $1,088 million reported in the previous year, reflecting a decline of approximately 43.8%[44]. - The net profit for the period was $540 million, compared to $837 million in the prior year, marking a decrease of around 35.5%[45]. - The company anticipates continued pressure on short-term financial performance due to unfavorable operating conditions, particularly in the U.S. market[43]. Revenue Breakdown - The company's operations in China accounted for 34.2% of total revenue and 81.4% of operating profit, up from 32.6% and 44.3% respectively in the previous year[5]. - Pork revenue increased by 0.5% to $5.580 billion, with a 4.5% increase in China, while the U.S. and Mexico saw a 5.0% decline[18]. - Total revenue for the China segment was $5,054 million, with a reported profit of $520 million for the six months ending June 30, 2023[54]. - The total revenue for the US and Mexico segment was $8,462 million, with a reported loss of $36 million for the same period[54]. - The total revenue for the Europe segment was $2,014 million, with a reported profit of $83 million[54]. - The overall total revenue across all segments was $15,530 million, with a reported profit of $639 million[54]. Operational Metrics - Pork sales volume decreased by 0.2% to 2,026 thousand tons compared to 2,031 thousand tons in the previous year[2]. - Total pig slaughter volume remained at 25.43 million heads, with an 8.4% increase in China but a 2.6% decrease in the U.S. and Mexico[17]. - The poultry business slaughtered approximately 146 million birds, a 40.1% increase compared to the previous period[20]. - Other businesses generated revenue of $883 million, a 13.9% increase, driven by poultry expansion[20]. - Operating profit for the pork business was a loss of $409 million, compared to a profit of $124 million in the previous period[19]. - Operating profit in the U.S. pork segment was a loss of $495 million, significantly impacted by unfavorable market conditions[19]. Assets and Liabilities - Non-current assets totaled $11,780 million as of June 30, 2023, compared to $11,846 million at the end of December 2022, showing a slight decrease[46]. - Current assets decreased to $7,301 million from $8,009 million, indicating a reduction of approximately 8.8%[46]. - As of June 30, 2023, total current liabilities amounted to $4,453 million, a decrease from $4,985 million as of December 31, 2022, representing a reduction of approximately 10.7%[47]. - Non-current liabilities totaled $4,280 million as of June 30, 2023, a decrease from $4,458 million at the end of 2022, representing a reduction of about 4%[47]. - The company's equity attributable to owners was $9,604 million as of June 30, 2023, compared to $9,600 million at the end of 2022, indicating a slight increase of approximately 0.04%[47]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2023, was $2 million, compared to $34 million for the same period in 2022, indicating a significant decline of approximately 94.1%[48]. - The net cash flow used in investing activities was $(363) million for the six months ended June 30, 2023, compared to $(160) million for the same period in 2022, reflecting an increase in cash outflow of approximately 126.9%[48]. - The net cash flow used in financing activities was $(202) million for the six months ended June 30, 2023, a decrease from $(416) million in the same period of 2022, indicating a reduction in cash outflow of approximately 51.5%[48]. - As of June 30, 2023, the company had cash and bank balances of $828 million, down from $1.394 billion on December 31, 2022[22]. - The total outstanding loan principal was $3.468 billion as of June 30, 2023, an increase from $3.395 billion on December 31, 2022[25]. Capital Expenditures - Capital expenditures for the review period amounted to $448 million, with $230 million allocated to China, $167 million to the US and Mexico, and $51 million to Europe[35]. - The total capital expenditure for property, plant, and equipment was $296 million for the six months ending June 30, 2023, down from $540 million in the previous year[61]. - In the US, capital expenditures were mainly related to the modernization of slaughterhouses and upgrades to meat processing facilities[35]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting standards[75]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the review period[76]. Environmental and Risk Management - The company has implemented environmental policies to manage regulatory and environmental risks associated with its biological assets[64]. - The company faces risks related to climate change, diseases, and other natural forces affecting its biological assets, with processes in place for monitoring and risk reduction[65].