Financial Performance - The company reported a revenue of RMB 16,155,412 thousand for the year ended December 31, 2023, representing an increase of 7.4% compared to RMB 15,037,027 thousand in 2022[5]. - The company incurred a loss of RMB 1,992,136 thousand for the year, compared to a profit of RMB 909,755 thousand in 2022, marking a substantial decline[5]. - The basic and diluted loss per share was RMB (4.88) in 2023, compared to earnings of RMB 2.74 per share in 2022[5]. - The company reported a pre-tax profit of RMB 1,775,126,000 for the year, compared to a profit of RMB 992,866,000 in 2022, marking an increase of 78.9%[25]. - The company recorded a net loss of RMB 1,992 million after fair value adjustments of biological assets in 2023, compared to a net profit of RMB 910 million in 2022[50]. - The overall gross margin dropped to 0.7% in 2023 from 13.8% in 2022, primarily due to falling average selling prices of pigs and poultry[60]. Sales and Production - The total sales volume of commodity pigs reached 6,659,735 heads in 2023, a significant increase of 33.9% from 4,972,795 heads in 2022[3]. - Sales of live pigs and related products generated RMB 12,254,966,000, up from RMB 11,745,056,000, reflecting a growth of 4.3%[16]. - The average selling price of commodity pigs decreased to RMB 1,832 per head in 2023 from RMB 2,317 per head in 2022, reflecting a decline of 20.9%[3]. - The poultry segment's revenue in 2023 was RMB 3,333 million, reflecting a 3.7% year-on-year increase due to higher sales of yellow-feathered broilers[55]. - The auxiliary products segment saw revenue of RMB 567 million in 2023, a significant increase of 640.5% attributed to enhanced sales of feed raw materials and the launch of fresh meat business[56]. Costs and Expenses - The total cost of sales increased to RMB 16,035,739 thousand in 2023 from RMB 12,968,848 thousand in 2022, resulting in a gross profit of only RMB 119,673 thousand[7]. - Total employee costs rose to RMB 1,174,243,000, a significant increase of 19.7% compared to RMB 981,295,000 in 2022[22]. - Administrative expenses increased by 21.7% to RMB 1,288 million in 2023, driven by higher depreciation and increased insurance costs related to pig mortality[64]. - The company recorded a loss of RMB 714 million from changes in the fair value of biological assets in 2023, compared to a gain of RMB 305 million in 2022[61]. Assets and Liabilities - The company’s non-current assets totaled RMB 10,807,632 thousand as of December 31, 2023, compared to RMB 10,085,844 thousand in 2022[8]. - Current liabilities increased to RMB 9,690,620 thousand in 2023 from RMB 9,084,396 thousand in 2022, leading to a net current liability position of RMB (1,564,020) thousand[8]. - The company’s total equity decreased to RMB 3,855,063 thousand in 2023 from RMB 5,063,802 thousand in 2022, indicating a decline in shareholder value[9]. - The net debt to equity ratio increased to 143.5% in 2023 from 113.6% in 2022, indicating a higher leverage level[81]. Future Plans and Investments - The company plans to continue expanding its market presence and product offerings, focusing on enhancing operational efficiency and profitability in the upcoming fiscal year[11]. - The company plans to steadily expand its core business capacity, including the growth of self-operated farms and the network of family farms[98]. - Investment in research and development will focus on nutritional improvements and feed raw material substitutions to reduce breeding costs[100]. - The company will utilize pig futures hedging to reduce operational risks[100]. Corporate Governance and Shareholder Matters - The company is committed to maintaining high standards of corporate governance and has adhered to the corporate governance code since the listing date[107][108]. - The annual general meeting is scheduled for May 10, 2024, with a suspension of share transfer registration from May 7 to May 10, 2024, to determine voting rights[117][119]. - The company does not recommend a final dividend for the year ending December 31, 2023[103]. Capital and Financing - The company maintained a strong relationship with banks, ensuring sufficient financing support for at least the next twelve months[13]. - The company had unused bank credit facilities amounting to RMB 4,775 million as of December 31, 2023, providing a buffer for future liquidity needs[74]. - The company’s total bank loans and other borrowings amounted to approximately RMB 6,099 million as of December 31, 2023, down from RMB 6,896 million in 2022[78]. Employee and Operational Metrics - As of December 31, 2023, the company had 9,854 employees, an increase from 8,202 employees in 2022[91]. - The average number of ordinary shares outstanding increased slightly to 363,881,000 from 361,964,000 in 2022[25]. - The company has implemented strict biosecurity measures to mitigate disease risks in pig and poultry farming[95].
德康农牧(02419) - 2023 - 年度业绩