Cofco Joycome Foods Limited · HKEX:1610
Cofco Joycome Foods — H1 2022 Earnings Presentation
20 slides from Cofco Joycome Foods's earnings presentation, August 2022
Slide 1: 2022 Interim Results Presentation
2022 Interim Results Presentation August 2022 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: 2022H1 Key Operating Metrics
2022H1 Key Operating Metrics Key Operating Metrics 2022H1 2021H1 Change Hog production volume (’000 heads) 2,268 1,672 35.7% Average selling price of finishing hogs (RMB/kg) 13.55 23.44 -42.2% Fresh pork sales volume (’000 tons) 109 65 67.7% Branded small-packed fresh pork sales volume 27,228 21,477
Slide 5: 2022H1 Financial Metrics
2022H1 Financial Metrics Key Financial Metrics 2022H1 2021H1 Change Revenue (RMB MM) 5,345 7,503 -28.8% Profit/Loss for the period (before adj.) (RMB -1,399 1,561 Down 2,960 MM) Including: profit/loss attributable to the owners of the Company (before adj.) -1,392 1,575 Down 2,967 (RMB MM) Profit/Los
Slide 6: Industry Overview: Hog Price Rebound after Bottoming out
Industry Overview: Hog Price Rebound after Bottoming out Chinese Hog Prices（RMB/kg） 2018 2019 2020 2021 2022 44 39 34 29 20.20 24 19 12.12 14 9 w01 w05 w09 w13 w17 w21 w25 w29 w33 w37 w41 w45 w49 • Due to the gradual release of breeding sow capacity, hog price kept dropping early this year. The aver
Slide 7: 2022H1 Business Highlights
2022H1 Business Highlights 1 Strengthen Internal benchmarking to Improve Production Efficiency Significant Growth in Hog Production Volume with better 2 alignment between upstream and downstream capacity Substantial increase in Fresh Pork Sales and Brand Recognition 3 further enhanced Fulfill SOE Re
Slide 8: Strengthen Internal Benchmarking to Improve Production Efficiency
Strengthen Internal benchmarking to Improve Production 1 Efficiency • The Company managed to improve production efficiency through persistently focusing on production management and internal benchmarking. 01 Feeding: enhancing analysis and assessment for raw material procurement and optimizing feed
Slide 9: Significant Growth in Hog Production Volume
Significant Growth in Hog Production Volume with better 2 alignment between upstream and downstream capacity Hog Production Volume Geographical layout of Slaughtering and Processing Facilities (‘000 heads) 1M 2268 1M 1672 1.5M 2021H1 2022H1 Guangdong Cutting Center Hog production volume significan
Slide 10: Substantial Increase in Fresh Pork Sales and Brand Recognition
Substantial increase in Fresh Pork Sales and Brand 3 Recognition further enhanced Branded small-packed Fresh pork sales volume fresh pork sales volume (‘000 tons) (MM Boxes) 109 27.23 21.48 65 118K boxes/day 149K boxes/day 2021H1 2022H1 2021H1 2022H1 Seized the trend to expand business scale Continu
Slide 11: Fulfill SOE Responsibilities, Fight against COVID-19 and Maintain Supply
Fulfill SOE Responsibilities, Dedicate to Fight against COVID-19 4 Pandemic and Maintain Supply • 2022H1, during the COVID-19 epidemic prevention and control in Jilin, Shanghai and Beijing, etc, we made quick response and ensured “continuous supply, no drop in quality and stable price” . • During th
Slide 12: Strengthen Risk Control and Deepen Combination of Trade and Processing
Strengthen Risk Control and Deepen the Combination of Trade 5 and Processing • 2022H1, we continued to strictly control the risk of import market fluctuations. Pork Import： − Due to the abundant supply of domestic hogs, the price of frozen pork products continued to plummet more in China’s domestic
Slide 13: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 10
Slide 14: 2022 Interim Financial Highlights
2022 Interim Financial Highlights Due to the significant yoy decrease in the average hog price and the initiative 1 of meat import to reduce the volume, the revenue represented a decrease 2 By doing risk control, inventory and accounts receivable both decreased 3 Due to business expansion, expense r
Slide 15: Revenue decrease due to lower hog price and reduced imports
Due to the significant yoy decrease in the average hog price and the 1 initiative of meat import to reduce the volume, the revenue represented a decrease Hog production Fresh pork (RMB MM） (RMB MM) • In 2022H1, hog production volume was 2,268 thousand heads, • In 2022H1, sales volume of fresh pork w
Slide 16: Inventory and accounts receivable decreased
By doing risk control, inventory and accounts receivable both 2 decreased Inventory Account receivable (RMB MM) (RMB MM) 1,400 240 1,300 220 225 1,287 1,200 1,100 200 1,000 194 1,008 180 900 160 800 700 140 600 120 500 400 100 2021 2022H1 2021 2022H1 Inventory Account receivable 13
Slide 17: Expense rate increased due to business expansion
3 Due to business expansion, expense rate increased Total expenses and expense rate of distribution and selling, administration and finance Total assets and Asset-liability ratio (RMB MM) (% of revenue) (RMB MM) 700.0 70.0% 61.2% 10.0% 25,000 600.0 8.2% 60.0% 5.0% 52.3% 5.0% 500.0 20,000 50.0% 19,67
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 Normalize ASF prevention & control, narrow internal gaps, consolidate core 1 competitive edges • Incorporate the prevention and control of the ASF into routine practices, and ensure production safety and operation stability • Improve level of refined management and narrow intern
Slide 20: Appendix
Appendix Closing Price of Corn in Dalian (2016-2022H1) Spot Price of Soybean Meal (2016-2022H1) (RMB/ton) (RMB/ton) 3,000 5,500 2,800 5,000 2,600 4,500 2,400 4,000 2,200 3,500 2,000 3,000 1,800 2,500 1,600 1,400 2,000 16/01 16/06 16/11 17/04 17/09 18/02 18/07 18/12 19/05 19/10 20/03 20/08 21/01 21/0