Muyuan Foods (SZ:002714)2024-01-10 13:14Group 1: Company Overview - The company, Muyuan Foods Co., Ltd., sold 6.3816 million pigs in 2023, including 6.2267 million market pigs, 136.7 thousand piglets, and 18.1 thousand breeding pigs [4] - The average breeding cost in December 2023 was 15.3 CNY/kg, which increased due to winter disease impacts and prevention costs [5] - The company achieved a significant reduction in breeding costs year-on-year due to improved management practices [4] Group 2: Slaughtering and Meat Business - In 2023, the company slaughtered over 13 million pigs, achieving a capacity utilization rate of over 40%, with a year-on-year increase of approximately 80% [5] - Despite improvements, the slaughtering segment remains in a loss position, but the average loss per head has decreased compared to 2022 [5] - The company plans to enhance sales capabilities and optimize product and customer structures in 2024 to improve overall profitability [5] Group 3: Financial Health - The company maintains a robust cash flow, with a focus on stable financial management to ensure safety and stability [6] - Cash costs are a key factor affecting cash flow safety, with cash costs around 13.5 CNY/kg and depreciation accounting for about 10% of total costs [6] - Major banks, including Agricultural Bank of China and China Construction Bank, have a credit ratio exceeding 70%, with unused credit exceeding 30 billion CNY [6] Group 4: Future Plans and Announcements - The company is currently implementing a share buyback plan, with further announcements to follow [6] - A notice was issued regarding the increase in borrowings exceeding 20% of net assets compared to the end of the previous year, with new borrowings in Q4 2023 being less than 2 billion CNY [6]