Financial Performance - The group's revenue for the year ended December 31, 2023, was RMB 19,532.2 million, a decrease of 8.3% compared to the previous year[2]. - The group's gross profit for the same period was RMB 12,663.4 million, down 9.2% year-on-year[2]. - The net profit for the year was RMB 3,290.4 million, representing a decline of 33.5% compared to the previous year[2]. - Basic and diluted earnings per share were both RMB 0.37, down from RMB 0.55 in 2022[2]. - The group reported a total comprehensive income of RMB 3,444.0 million for the year, down from RMB 5,110.0 million in 2022[5]. - Revenue from customer contracts for 2023 was RMB 19,532,203 thousand, a decrease of 8.4% from RMB 21,310,933 thousand in 2022[35]. - Revenue from dairy products was RMB 19,298,143 thousand, while revenue from raw milk was RMB 234,060 thousand for 2023[36]. - The group reported a pre-tax profit of RMB 6,868,850 thousand for 2023, down from RMB 7,360,333 thousand in 2022[40]. - Profit before tax decreased by 27.2% from RMB 6,663.1 million in 2022 to RMB 4,850.3 million in 2023[76]. - Net profit fell by 33.5% to RMB 3,290.4 million, down from RMB 4,948.1 million in 2022[78]. Dividends - The board proposed a final dividend of HKD 0.1484 per share, compared to HKD 0.1721 per share in 2022[2]. - The interim dividend declared was HKD 0.1349 per share, amounting to approximately RMB 1.14 billion, compared to RMB 0.1131 per share and RMB 0.9 billion in 2022[45]. - The proposed final dividend for 2023 is HKD 0.1484 per share, totaling approximately RMB 1.22 billion, down from RMB 1.37 billion in 2022[45]. - The company plans to maintain a dividend policy of distributing no less than 30% of net profit for each financial year, depending on future investment plans[110]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 41,446.7 million, compared to RMB 40,315.8 million in 2022[7]. - The company's total equity increased to RMB 26,334.3 million from RMB 25,474.9 million in the previous year[8]. - The company reported a total liability of RMB 9,860,332 thousand for the year ended December 31, 2023, which is a slight decrease from RMB 10,040,830 thousand in 2022[26][28]. - Non-current liabilities totaled RMB 2,478.1 million, a slight decrease from RMB 2,581.1 million in 2022[8]. - The asset-liability ratio increased from 0.33 in 2022 to 0.36 in 2023[85]. Cash Flow - The company's cash and cash equivalents increased to RMB 10,440.9 million from RMB 9,335.9 million in the previous year[7]. - The net cash flow from operating activities for 2023 was RMB 4,145.3 million, a decrease from RMB 6,279.1 million in 2022[86]. - The group generated a net cash flow from investing activities of RMB 386.7 million in 2023, down from RMB 4,803.7 million in 2022[86]. Segment Performance - The segment performance for the raw milk division reported a loss of RMB 325,738 thousand, while the dairy products and nutritional supplements segment achieved a profit of RMB 4,756,742 thousand, leading to a total adjusted profit before tax of RMB 4,850,292 thousand[26]. - Revenue from infant formula products was RMB 17,876.8 million, accounting for 91.5% of total revenue, down 10.3% from RMB 19,932.3 million in 2022[66]. - Revenue from the nutritional supplement segment, operated through Vitamin World USA, amounted to RMB 231.7 million, representing 1.2% of the company's total revenue for the year ending December 31, 2023[60]. Market and Industry Trends - The average disposable income in China reached RMB 39,218 in 2023, with a compound annual growth rate of 6.8% from 2018 to 2023[53]. - The number of newborns in China decreased to approximately 9 million in 2023, down from 10.94‰ birth rate in 2018 to 6.39‰ in 2023[52]. - The market for high-end infant formula is expected to grow due to increased disposable income and health awareness among consumers[53]. - The retail sales value of the infant formula market in China is expected to remain stable despite the declining birth rate[52]. Compliance and Governance - The financial statements are prepared in accordance with International Financial Reporting Standards and presented in Renminbi (RMB), with amounts rounded to the nearest thousand (RMB thousand)[13][14]. - The group’s financial reporting is subject to the disclosure requirements of the Hong Kong Companies Ordinance[13]. - The company confirmed compliance with the corporate governance code throughout the reporting period[99]. - The company has established a strong internal control system to ensure compliance with applicable laws and regulations[100]. Strategic Focus - The company plans to focus on developing a new generation of infant formula that emphasizes active nutrition, targeting the early life stage of 1,000 days[96]. - The company aims to expand into four major business areas: maternal and infant, children, health food, and nutrition health[96]. - The company has a designed annual production capacity of approximately 327,000 tons across 11 production facilities as of December 31, 2023[58]. - The company offers a diversified product portfolio to meet a wide range of customer needs, including ultra-high-end and high-end categories[56]. Shareholder Actions - The company repurchased a total of 1,000,000 shares at a total cost of approximately HKD 4.7 million during the reporting period[102]. - The total number of issued shares is 9,067,251,704 after the cancellation of repurchased shares[102]. - The company believes that the share repurchase reflects confidence in its current and long-term business prospects[102].
中国飞鹤(06186) - 2023 - 年度业绩