Financial Performance - In 2023, the company's revenue reached RMB 16,155,412 thousand, a 7.4% increase from RMB 15,037,027 thousand in 2022[7]. - The company reported a net loss of RMB 1,992,136 thousand in 2023, compared to a profit of RMB 909,755 thousand in 2022[7]. - Basic and diluted loss per share was RMB (4.88) in 2023, down from earnings of RMB 2.74 in 2022[7]. - The company's overall gross margin decreased from 13.8% in 2022 to 0.7% in 2023, attributed to a 19.5% drop in average selling price of pigs[51]. - The adjusted loss for the year 2023 was RMB 1,278,520 thousand, compared to a profit of RMB 604,960 thousand in 2022, indicating a significant decline in performance[65]. - The adjusted EBITDA for 2023 was RMB 8,752 thousand, a sharp decrease from RMB 1,734,800 thousand in 2022, reflecting operational challenges[66]. - The net cash generated from operating activities in 2023 was RMB 742 million, down from RMB 2,192 million in 2022, highlighting reduced cash flow[67]. - Total cash and cash equivalents decreased by RMB 296 million in 2023, indicating liquidity pressures[67]. - As of December 31, 2023, the company's net assets were approximately RMB 3,855 million, down from RMB 5,064 million in 2022, showing a decline in equity[70]. - The net debt as of December 31, 2023, was approximately RMB 5,533 million, with a net debt-to-equity ratio of 143.5%, up from 113.6% in 2022, indicating increased leverage[70]. Sales and Production - The total sales volume of market pigs was 6,659,735 heads, representing a 30.4% increase compared to 4,972,795 heads in 2022[6]. - The sales volume of yellow feather broilers increased by 12.9%, totaling 88,733,327 birds in 2023 compared to 78,599,963 birds in 2022[6]. - In 2023, the company's swine segment revenue reached RMB 12,255 million, representing a year-on-year increase of 4.3%[43]. - The poultry segment generated revenue of RMB 3,333 million in 2023, reflecting a year-on-year growth of 3.7% driven by increased sales of yellow-feathered chickens[47]. - The auxiliary products segment saw revenue rise to RMB 567 million in 2023, a significant increase of 640.5% due to higher sales of feed raw materials and the development of fresh meat business[48]. - The total pork production in China for 2023 was 57.9 million tons, with a year-on-year growth of 4.6%[39]. - The average price of commodity chickens fell by approximately 10% compared to 2022[40]. - The average selling price of market pigs decreased from RMB 2,317 to RMB 1,832, while the average price for breeding pigs increased from RMB 2,124 to RMB 2,341[6]. Operational Strategies - The company aims to strengthen production management and improve efficiency to counter challenges such as low pig prices and rising raw material costs[18]. - The company plans to expand its pig and yellow-feathered chicken farming business through a combination of self-operated and family farms, enhancing cost-effectiveness and efficiency[24]. - Continued investment in research and development is aimed at improving breeding and farming technologies, further enhancing farming efficiency and cost-effectiveness[24]. - The company aims to enhance production efficiency and capacity utilization, aligning with industry trends towards larger-scale pig farming operations[40]. - The company has increased its research and development investment to improve breeding performance of its pigs[43]. - The introduction of high-quality breeding pigs has led to a competitive advantage, with new commercial pigs reaching market weight 12 days earlier than mainstream varieties, and a marginal contribution increase of approximately RMB 100 per pig[20]. - The company has implemented cost reduction measures, achieving a cost reduction of RMB 100 per head with the introduction of the DeKang E series[43]. Corporate Governance - The company was officially listed on the Hong Kong Stock Exchange on December 6, 2023, marking a significant milestone in its development[18]. - The board consists of five executive directors and three independent non-executive directors, ensuring a balanced composition for effective decision-making[100][110]. - The company has adopted the corporate governance code as per the listing rules to safeguard the interests of stakeholders[95]. - The board meets at least four times a year, with all directors actively participating in meetings[102]. - The audit committee includes three members, with two being independent non-executive directors, ensuring oversight of financial reporting and external audit processes[121]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined responsibilities[120]. - The company has established a whistleblowing policy allowing employees to report misconduct confidentially[157]. - A robust anti-corruption policy is in place to prevent internal corruption and bribery, with anonymous reporting channels available[158]. Employee and Social Responsibility - As of December 31, 2023, the company employed 9,854 staff, an increase from 8,202 in 2022, with total employee compensation amounting to RMB 1,174 million, up from RMB 981 million in 2022[83]. - The company has established a compensation committee to review employee compensation policies in line with industry standards and individual performance[83]. - The company is committed to ESG initiatives, including the "Hundred Villages, Million" project, to promote sustainable agricultural practices[90]. - The company has established a comprehensive ESG policy framework, focusing on risk management, business ethics, and environmental protection[198]. - No fines or penalties were incurred for non-compliance with health, safety, or environmental laws during the reporting period[199]. Shareholder Communication - The company is committed to effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[173]. - The company encourages shareholders to attend general meetings and allows them to appoint representatives to vote on their behalf if they cannot attend[179]. - Shareholders holding more than 10% of the company's shares have the right to propose a special general meeting, with the board required to respond within 10 days[165]. - The company will publish announcements and other documents on the Stock Exchange's website in accordance with listing rules[177]. - The company declared a dividend of RMB 100 million to shareholders as of December 26, 2022, which will be paid in December 2023[191]. - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023[192].
德康农牧(02419) - 2023 - 年度财报