Financial Performance - In 2023, the company achieved revenue of HKD 1.411 billion, a decrease from HKD 2.162 billion in 2022, representing a decline of approximately 34.6%[19] - The loss attributable to equity holders was HKD 148 million, compared to a loss of HKD 15 million in 2022, indicating a significant increase in losses[19] - The sales revenue from deep-processed meat products was HKD 445 million, down from HKD 496 million in 2022, reflecting a decrease of about 10.3%[22] - The company recorded a net loss of approximately HKD 105 million from other activities, compared to a net income of HKD 27 million in 2022, primarily due to the assessment of certain non-operational facilities[23] - The sales revenue of chilled meat was HKD 835 million, a decrease of 43.1% compared to HKD 1.468 billion in 2022, accounting for approximately 59% of total revenue[36] - The revenue from low-temperature meat products was HKD 271 million, a decrease of 4.9% from HKD 285 million in 2022, representing about 19% of total revenue[36] - The slaughter volume decreased by approximately 19.8% to about 500,000 heads compared to the previous year[38] - Operating expenses for the year were HKD 177 million, accounting for 12.6% of total revenue, compared to 5.6% in 2022[43] - The total employee cost for the year was HKD 99 million, accounting for 7.0% of revenue, compared to HKD 106 million and 4.9% in 2022[52] - The group reported a loss attributable to equity holders of approximately HKD 695 million as of December 31, 2023[68] Production and Capacity - The production capacity for upstream slaughtering and downstream deep-processed meat products remained stable at approximately 3.35 million heads and 56,000 tons, respectively[18] - The domestic live pig output was 727 million heads in 2023, an increase of 3.8% year-on-year, while pork production reached 57.94 million tons, up 4.6%[10] - The average procurement price of live pigs was RMB 15.35 per kilogram, a year-on-year decrease of 19.3%[34] - The average procurement price of live pigs fluctuated between RMB 14.26 and 17.14 per kilogram during the review period[140] - The company has established a management mechanism to negotiate with at least three suppliers for the supply of live pigs and meat[138] Strategic Focus and Innovation - The company plans to continue focusing on innovation and quality management to enhance operational efficiency and competitiveness in 2024[8] - The company aims to develop new products that cater to changing consumer demands and trends, driving new growth points for performance[29] - The company is cautious in new product development, gradually introducing products that meet consumer demand through trial phases[142] Environmental and Social Responsibility - The group is committed to green low-carbon production methods and has increased investment in environmental protection and R&D[54] - The group aims to integrate energy-saving and green production concepts into its corporate culture for sustainable development[54] - The company is focused on reducing waste emissions during production processes to promote green transformation[54] - The group recognizes its responsibility as a public company and actively implements environmental protection measures[74] - The company has measures in place to minimize the impact of animal diseases or other epidemics on its business operations[130] Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules during the review year[78] - The board is responsible for approving and monitoring the overall strategy and policies of the group, including annual budgets and business plans[79] - The audit committee reviewed the group's annual and interim financial statements before submission to the board for approval[93] - The company has implemented a risk management and internal control system to ensure effective governance and compliance with the corporate governance code[89] - The company has established an audit committee, remuneration committee, and nomination committee to ensure compliance with the corporate governance code[88] Financial Risks and Debt Management - The company is currently in a net debt position as of December 31, 2023, with risks of failing to meet financial obligations[144] - The company has two overdue bank loans from state-owned commercial banks in China, and it is actively communicating with these banks to negotiate repayment plans and reduce penalties[196] - The board believes that the action plan to address overdue bank loans, if implemented as expected, will eliminate the auditor's uncertainty regarding the company's going concern status[198] - The company believes it has sufficient financial resources to support its operations and meet financial obligations due within the next twelve months[192] Shareholder Communication and Transparency - The company aims to provide high levels of information disclosure and financial transparency to shareholders and potential investors[158] - The company has adopted a shareholder communication policy to ensure shareholders can conveniently and timely access fair and understandable information[179] - The board of directors has reviewed the effectiveness of the shareholder communication policy, deeming it reasonable and effectively implemented[159] Quality Control and Supply Chain Management - The company has implemented a comprehensive quality control system with 21 inspection and quarantine processes for its products[148] - The company conducts regular assessments of supplier production sites to ensure the quality and supply capacity of raw materials[140] - The company emphasizes the quality and supply of raw materials, implementing measures to ensure supply chain stability, including contractual guarantees with suppliers[122] - The company has developed different strategies to cope with fluctuations in raw material prices, such as adjusting pig inventory based on expected price changes[124] Board Diversity and Effectiveness - The board consists of five members, including three independent non-executive directors, ensuring a diverse range of expertise in accounting, legal, and food engineering[96] - The board's gender diversity includes two female directors and three male directors, highlighting the company's commitment to gender representation[96] - The company emphasizes the importance of board diversity, considering factors such as gender, age, cultural background, and professional experience in its selection process[95] - The board has established a policy to review its diversity and effectiveness annually, ensuring continuous improvement in governance practices[95] Crisis Management - The company has established a crisis response procedure to quickly address any incidents that may affect consumer confidence[153] - The company has the capability to ensure product distribution and sales during disease outbreaks due to its nationwide layout[147]
雨润食品(01068) - 2023 - 年度财报