Cofco Joycome Foods Limited · HKEX:1610
Cofco Joycome Foods — H1 2023 Earnings Presentation
20 slides from Cofco Joycome Foods's earnings presentation, August 2023
Slide 1: 2023 Interim Results Presentation
2023 Interim Results Presentation August 2023 1
Slide 2: Disclaimer
Disclaimer By participating in the meeting covering this presentation, or by reading the materials related to this presentation, you agree to be bound by the following restrictions: • The information contained in this presentation was prepared by COFCO Joycome Foods Limited(the “Company”, together w
Slide 3: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 1
Slide 4: 2023H1 Key Operating Metrics
2023H1 Key Operating Metrics Key Operating Metrics 2023H1 2022H1 Change Hog production volume (’000 heads) 2,447 2,268 7.9% Average selling price of finishing hogs (RMB/kg) 14.61 13.55 7.8% Fresh pork sales volume (’000 tons) 123 109 13.0% Branded small-packed fresh pork sales volume 20,942 27,228 -
Slide 5: 2023H1 Financial Metrics
2023H1 Financial Metrics Key Financial Metrics 2023H1 2022H1 Change Revenue (RMB MM) 5,818 5,345 8.9% Profit/Loss for the period (before adj.) (RMB 168 -1,399 Up 1,568 MM) Including: profit/loss attributable to the owners of the Company (before adj.) 184 -1,392 Up 1,576 (RMB MM) Profit/Loss for the
Slide 6: Hog Price still on a Down-trend in 2023H1, Industry incurred losses
Hog Price still on a Down-trend in 2023H1, Industry incurred losses Chinese Hog Prices（RMB/kg） 2020 2021 2022 2023 40 35 30 25 28.32 18.41 20 13.95 15 10 w01 w05 w09 w13 w17 w21 w25 w29 w33 w37 w41 w45 w49 • Given the abundant pork supply backed by high production capacity, and the effects of the tr
Slide 7: 2023H1 Business Highlights
2023H1 Business Highlights Actively respond to market downturn through combining futures 1 and spot commodities of the hog production business Steady growth in fresh pork sales, with better upstream- 2 downstream alignment Optimizing product positioning, Streamlining channel network, 3 with brand in
Slide 8: Actively respond to market downturn through combining futures and spot commodities
Actively respond to market downturn through combining 1 futures and spot commodities of the hog production business • In the face of market downturn, we remained committing to refined management, and continue to optimize the combination of futures and spot commodities. Production management: strengt
Slide 9: Steady growth in fresh pork sales, with better upstream-downstream alignment
Steady growth in fresh pork sales, with better upstream- 2 downstream alignment Fresh Pork Sales Volume Geographical Layout (‘000 tons) 123 109 Alignment Area Slaughtering and Processing Facilities 65 Guangdong Cutting Center 2021H1 2022H1 2023H1 2023H1, the sales volume of fresh pork reached 123
Slide 10: Optimizing product positioning, streamlining channel network, with brand influence further expanding
Optimizing product positioning, streamlining channel network, 3 with brand influence further expanding Seized the trend to expand business scale Further expanding brand influence Achieved a turnaround in segment results • Business team: Improve the regulative system, and • Deepening the slogan of “l
Slide 11: Strengthen Risk Control and Deepening the Combination of Trade and Processing
Strengthen Risk Control and Deepening the Combination of 4 Trade and Processing • 2023H1, we continued to strictly control the import market risk, proactively develop terminal channels, and accelerate inventory turnover. Pork Import： Beef Import ： − Prices of imported frozen pork products − Domestic
Slide 12: Fulfilling SOE Responsibilities, supporting green agriculture
5 Fulfilling SOE Responsibilities, supporting green agriculture Develop recycling tech of “Reduce Burden and Return to Farms” Promote the ecological cycle of “Farming + Breeding” • Based on the experience of recycling and utilization of waste from hog production process for over 10 years, we develop
Slide 13: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook
Slide 14: 2023 Interim Financial Highlights
2023 Interim Financial Highlights Due to the YoY increase in hog production volume, the average hog 1 selling price and sales volume of fresh pork, the revenue represented an increase Through adhering to risk control, inventories and accounts receivables 2 both decreased 3 Raised fund and accelerate
Slide 15: Revenue increase from higher hog production volume, selling price and fresh pork sales
Due to the YoY increase in hog production volume, the average hog selling 1 price and sales volume of fresh pork, the revenue represented an increase Hog production Fresh pork (RMB MM） (RMB MM) • In 2023H1, hog production volume was 2,447 thousand heads, • In 2023H1, sales volume of fresh pork was 1
Slide 16: Inventories and account receivables both decreased
Through adhering to risk control, inventories and account 2 receivables both decreased Account receivables and receivable Inventories and inventory turnover period turnover period (RMB MM) （before biological assets (RMB MM) （before biological assets fair value adjustments） fair value adjustments） 2,
Slide 17: Raised fund and accelerated cash turnover efficiency help optimize capital structure
Raised fund and accelerated cash turnover efficiency help 3 optimize capital structure Net debt to equity ratio Total assets and Asset-liability ratio （RMB MM） (RMB MM) 14,000 70.0% 25,000 12,000 73.3% 60.0% 80.0% 55.1% 46.1% 10,000 20,000 50.0% 45.2% 30.0% 18,394 8,974 8,000 40.0% 8,263 15,000 16,3
Slide 18: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 15
Slide 19: Strategy and Outlook
Strategy and Outlook 1 Seek to attain the 14th Five-Year Plan, accelerate the expansion of core businesses Normalize ASF prevention & control, improve refined management to consolidate 2 core competitive edges • Incorporate the prevention and control of the ASF into routine practices, and ensure pro
Slide 20: Appendix
Appendix Closing Price of Corn in Dalian (2020-2023H1) Spot Price of Soybean Meal (2020-2023H1) (RMB/ton) (RMB/ton) 3,000 6,000 2,800 5,500 2,600 5,000 2,400 4,500 2,200 4,000 2,000 3,500 1,800 3,000 1,600 2,500 1,400 2,000 • 2023H1, the average closing price of corn in Dalian • 2023H1, the average