Cofco Joycome Foods Limited · HKEX:1610
Cofco Joycome Foods — H1 2024 Earnings Presentation
21 slides from Cofco Joycome Foods's earnings presentation, August 2024
Slide 1: 2024 Interim Results Presentation
2024 Interim Results Presentation August 2024 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: 2024H1 Key Operating Metrics
2024H1 Key Operating Metrics Key Operating Metrics 2024H1 2023H1 Change Hog production volume (’000 heads) 1,584 2,447 -35.3% Average selling price of finishing hogs (RMB/kg) 15.28 14.61 4.6% Fresh pork sales volume (’000 tons) 120 123 -2.2% Ratio of revenue from branded business of total 26.7% 26.2
Slide 5: 2024H1 Financial Metrics
2024H1 Financial Metrics Key Financial Metrics 2024H1 2023H1 Change Revenue (RMB MM) 4,571 5,818 -21.44% Profit/Loss for the period (before adj.) (RMB -389 168 Down 557 MM) Including: profit/loss attributable to the owners of the Company (before adj.) -387 184 Down 571 (RMB MM) Profit/Loss for the p
Slide 6: Hog price embraced an upward fluctuation since May as the oversupply situation alleviated
Hog price embraced an upward fluctuation since May as the oversupply situation alleviated Chinese Hog Prices（RMB/kg） 2022 2023 2024 30 25 20 15 10 w01 w05 w09 w13 w17 w21 w25 w29 w33 w37 w41 w45 w49 • Pork prices remained low in 2024Q1, due to ample supply and the effects of the traditional low seas
Slide 7: 2024H1 Business Highlights
2024H1 Business Highlights 1 Refined management improved with technology empowerment 2 Production capacity layout optimized Accelerating product R&D and channel promotion, with brand influence 3 further expanding 4 Strengthened market analysis and promoted internal synergy Open-up planting and breed
Slide 8: Refined management improved with technology empowerment
1 Refined management improved with technology empowerment • Prioritize intelligent farming, breeding and epidemic prevention, empowering production management with technology to further improve the level of refined management Genetic breeding: the smooth operation of the genome breeding platform hel
Slide 9: Production capacity layout optimized
2 Production capacity layout optimized Hog farm under-construction Geographical Layout of fresh pork business Alignment Area Slaughtering and Processing Facilities Guangdong Cutting Center • The company continues to build new hog farm capacity, and the new capacity is mainly located in Jilin provinc
Slide 10: Accelerating product R&D and channel promotion, with brand influence further expanding
Accelerating product R&D and channel promotion, with brand 3 influence further expanding Accelerating product R&D and channel promotion Further expanding “JOYCOME” brand influence • the sales volume of linseed-fed pork increased by over • Focusing on marketing campaigns in sports field, spanning com
Slide 11: Strengthened market analysis and promoted internal synergy
4 Strengthened market analysis and promoted internal synergy • 2024H1, we continued to strictly control the import risk, proactively develop terminal channels, and accelerate inventory turnover • Meanwhile, import business deepened synergies with FPP business. leveraging market research and supply c
Slide 12: Open-up planting and breeding cycle to contribute to the sustainable development of agriculture
Open-up planting and breeding cycle to contribute to the 5 sustainable development of agriculture Resource treatment technology of “pollutants disposal before discharging” • Based on the experience of recycling and utilization of waste from hog production process for over 10 years, we have pioneered
Slide 13: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook
Slide 14: 2024H1 Financial Highlights
2024H1 Financial Highlights 1 Revenue amounted to RMB4,571 million 2 Inventory decreased continuously and accounts receivable remained steady 3 Due to Improvement of operational efficiency and acceleration of cash flow, the sum of selling and distribution expenses/administrative expenses and finance
Slide 15: Revenue amounted to RMB4,571 million
1 Revenue amounted to RMB4,571 million Hog production Fresh pork (RMB MM） (RMB MM) • In 2024H1, hog production volume was 1,584 thousand heads, • In 2024H1, sales volume of fresh pork was 120 thousand tons representing a year-on-year decrease of 35.3%. 5,000 3,000 2,500 2,127 2,097 4,000 3,561 2,000
Slide 16: Inventory decreased continuously and accounts receivable remained steady
2 Inventory decreased continuously and accounts receivable remained steady 800 Inventory Accounts receivable 1,400 700 (RMB MM) (RMB MM) 1,200 600 1,000 500 800 900 400 849 600 300 400 200 202 204 200 100 0 0 2023 2024H1 2023 2024H1 *Note: inventory refers to "inventory"in HKFRS balance sheets *Note
Slide 17: Selling, administrative expenses and finance costs decreased 8.2% year-over-year
Due to Improvement of operational efficiency and acceleration of cash flow, the 3 sum of selling and distribution expenses/administrative expenses and finance costs decreased 8.2% year-over-year Selling and Distribution Expenses/ Administrative Expenses Finance Costs 00 200 (RMB MM) (RMB MM) 50 180
Slide 18: Capital structure remained healthy, net assets increased by RMB 245 million
Capital structure remained healthy, net assets increased by RMB 245 million, 4 whilst Asset-liability ratio was stable Net debt to equity ratio Total assets and Asset-liability ratio 70.0% （RMB MM） 25,000 (RMB MM) 60.0% 13,000 50.0% 50.0% 37.6% 44.3% 50.0% 20,000 43.0% 11,000 40.0% 9,000 9,246 9,491
Slide 19: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 15
Slide 20: Strategy and Outlook
Strategy and Outlook Focus on Operation: Improve production volume and efficiency, optimize futures 1 hedging strategies • Improve production volume , efficiency and reduce production cost • Optimize the futures hedging strategies to achieve organic combination of futures and spot commodities Streng
Slide 21: Appendix
Appendix Closing Price of Corn in Dalian (2020-2024H1) Spot Price of Soybean Meal (2020-2024H1) (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 20/01 20/05 20/09 21/01 21/05 21/09 22/01 22/05 22/09 23/01 23/05 23/09 24/0