Financial Performance - The group's revenue for the year ended December 31, 2022, was RMB 21,310.9 million, a decrease of 6.4% compared to the previous year[2]. - The group's gross profit for the same period was RMB 13,950.6 million, down 12.9% year-on-year[2]. - The net profit for the year was RMB 4,948.1 million, representing a decline of 28.4% from the previous year[2]. - Basic earnings per share were RMB 0.55, compared to RMB 0.77 in 2021[3]. - Total comprehensive income for the year was RMB 5,110.0 million, down from RMB 6,844.6 million in the previous year[6]. - Adjusted profit before tax for the dairy products and nutritional supplements segment was RMB 6,361,014 thousand, compared to RMB 9,409,000 thousand in the previous year, indicating a decrease of approximately 32.5%[18][20]. - The group's pre-tax profit for 2022 was RMB 1,390,035 thousand, an increase from RMB 1,251,683 thousand in 2021, representing a growth of about 11.1%[33]. - The group's pre-tax profit decreased by 31.1% from RMB 9,672.3 million in 2021 to RMB 6,663.1 million in 2022[63]. - The net profit for the year fell by 28.4% from RMB 6,914.9 million in 2021 to RMB 4,948.1 million in 2022[65]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.1721 per share, in addition to an interim dividend of HKD 0.1131 per share paid in October 2022, totaling approximately HKD 1,005.5 million[2]. - For the year ended December 31, 2022, the company declared an interim dividend of HKD 0.1131 per ordinary share, totaling approximately RMB 877 million, a decrease from RMB 2.21 billion in 2021[36]. - The company plans to distribute a final dividend of HKD 0.1721 per share, totaling approximately HKD 1,560,732,507, subject to shareholder approval[87]. - The company intends to maintain a dividend policy of distributing no less than 30% of net profit for future fiscal years, depending on investment plans[87]. - The company has implemented a share repurchase program that will expire at the next annual general meeting, reflecting its commitment to shareholder value[80]. Assets and Liabilities - Non-current assets totaled RMB 13,286.1 million, an increase from RMB 11,511.8 million in 2021[7]. - Current assets amounted to RMB 22,229.7 million, compared to RMB 19,969.6 million in the previous year[7]. - The company reported a total liability of RMB 10,040,830 thousand, up from RMB 9,078,054 thousand in the previous year, representing an increase of approximately 10.6%[18][21]. - Total assets as of December 31, 2022, amounted to RMB 35,515,773 thousand, an increase from RMB 31,481,424 thousand in 2021, reflecting a growth of approximately 12.9%[18][21]. - The company's total assets as of December 31, 2022, were RMB 25,474.9 million, with a debt-to-asset ratio of 0.33[69]. Revenue Breakdown - The raw milk segment generated external sales of RMB 349,079 thousand, while the dairy products and nutritional supplements segment contributed RMB 20,961,854 thousand, totaling RMB 21,310,933 thousand in external sales[18]. - Revenue from dairy products and nutritional supplements in mainland China was RMB 20,753,386 thousand in 2022, down from RMB 21,102,465 thousand in 2021, indicating a decrease of approximately 1.7%[24]. - The revenue from infant formula products was RMB 19,932.3 million, accounting for 93.5% of total revenue, down 7.4% from RMB 21,515.3 million in 2021[54]. Expenses and Costs - The group's total sales cost for 2022 was RMB 7,360,333 thousand, compared to RMB 6,768,676 thousand in 2021, reflecting an increase of approximately 8.7%[33]. - The cost of sales increased by 8.7% from RMB 6,768.7 million in 2021 to RMB 7,360.3 million in 2022, mainly due to rising raw material costs and increased promotional expenses[55]. - Selling and distribution expenses decreased by 2.7% from RMB 6,729.3 million in 2021 to RMB 6,545.4 million in 2022, attributed to lower promotional activity costs[59]. - Administrative expenses increased by 27.1% from RMB 1,208.0 million in 2021 to RMB 1,535.0 million in 2022, primarily due to rising employee and R&D costs[60]. Corporate Governance and Compliance - The company emphasizes the importance of corporate governance and has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring effective internal controls and transparency[78]. - The company has established an audit committee to oversee financial reporting and risk management[85]. - The company’s auditor, Ernst & Young, has reviewed the financial statements for the year ended December 31, 2022[86]. Market and Industry Outlook - The retail sales value of the infant formula market in China is expected to remain stable despite a decline in newborn numbers, supported by government policies[42]. - The company anticipates a recovery in newborn numbers by 2025, returning to levels seen in 2021, due to supportive measures from the three-child policy[42]. - The demand for high-end infant formula in China is expected to drive the entire infant formula industry, supported by a 7.3% CAGR in per capita disposable income from 2017 to 2022, reaching RMB 36,883 in 2022[43]. - The increasing urbanization rate and rising disposable income will enhance consumer purchasing power, particularly in lower-tier cities and rural areas, leading to higher consumption of premium infant formula products[43]. - New national safety standards for infant formula were introduced, imposing stricter regulations on protein, carbohydrates, and micronutrients, benefiting leading companies in the industry[44]. Strategic Initiatives - The company aims to maintain strict control over trade receivables to minimize credit risk, with specific credit terms typically ranging from one to three months[39]. - The group is focusing on e-commerce sales to capture the rapid growth in this sector, particularly targeting younger consumers[47]. - The group is constructing a new production facility in Qiqihar to further enhance its production capabilities[48]. - The company plans to expand into four major business areas: prenatal, infant, children, and health food, creating a comprehensive product family that supports health from birth to longevity[77]. - The company is committed to sustainable development and green circular economy practices, aiming to enhance rural revitalization and fulfill social responsibilities[77]. Share Repurchase and Financial Strategy - The company has repurchased a total of 27,155,000 shares at an aggregate price of approximately HKD 175.9 million during the reporting period, reducing the total issued shares to 9,068,251,704[80]. - The board believes that the share trading price does not reflect the intrinsic value and business outlook of the company[82]. - The net proceeds from the global offering amounted to approximately HKD 6,554.7 million, with specific allocations for debt repayment, business expansion, and acquisitions[84]. - The company allocated HKD 1,721.2 million for offshore debt repayment and HKD 327.7 million for Vitamin World USA's business expansion[84]. - The company plans to utilize the remaining unallocated proceeds from the global offering as outlined in the prospectus[84].
中国飞鹤(06186) - 2022 - 年度业绩