LIHUA(SZ:300761)2024-06-25 07:39Financial Data and Key Indicator Changes - In 2023, the company's revenue was 15.35 billion yuan, a year-on-year increase of 6.3% compared to 2022's 14.45 billion yuan [10] - The net profit attributable to the parent company in 2023 was a loss of 437 million yuan, a significant decline from a profit of 891 million yuan in 2022, reflecting a year-on-year decrease of 149.1% [10] - The earnings per share (EPS) for 2023 was -0.53 yuan, compared to 1.08 yuan in 2022 [10] Business Line Data and Key Indicator Changes - The company's yellow feather chicken output in 2023 was 457 million birds, an increase of 12.2% year-on-year, with a market share of 12.71%, up 1.84 percentage points [8] - The pig farming business is in a rapid expansion phase, with expected high growth in output and improved profitability due to lower feed costs and higher production efficiency [2] Market Data and Key Indicator Changes - The supply of parent stock has decreased to the lowest level since 2018, indicating ongoing capacity reduction in the industry [28] - The yellow feather chicken market is expected to stabilize around 4 billion birds in output, despite some market share loss to white feather chickens [31] Company Strategy and Development Direction - The company aims to expand its market share through geographical expansion and vertical integration in the supply chain, particularly in southern and southwestern China [8] - The company has been diversifying its operations by entering the slaughtering business, which is expected to synergize with its breeding operations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of yellow chicken prices due to reduced supply and rising pork prices, which may lead to increased profitability [1] - The company anticipates that the pig farming segment will benefit from high prices in the latter half of 2024, contributing to overall revenue growth [2] Other Important Information - The company's actual controller holds 51.87% of the shares, ensuring stable governance [17] - The company has a strong management team with extensive industry experience, which is expected to drive future growth [21] Q&A Session Summary Question: What are the expectations for chicken and pig prices in the coming years? - Management expects chicken prices to rise due to supply constraints and anticipates that pig prices will enter a high range starting in the second half of 2024 [2][1] Question: How does the company plan to maintain its competitive edge? - The company plans to leverage its cost advantages in chicken production and expand its market presence in new regions [8][9] Question: What are the risks associated with the business? - Key risks include significant price declines in chicken and pork, animal disease outbreaks, and fluctuations in feed costs [3]