Cofco Joycome Foods Limited · HKEX:1610
Cofco Joycome Foods — FY2022 Earnings Presentation
18 slides from Cofco Joycome Foods's earnings presentation, March 2023
Slide 1: 2022 Annual Results Presentation
2022 Annual Results Presentation March 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: 2022 Key Operating Metrics
2022 Key Operating Metrics Key Operating Metrics 2022 2021 Change Hog production volume (’000 heads) 4,103 3,437 19.4% Average selling price of finishing hogs (RMB/kg) 17.86 18.26 -2.2% Fresh pork sales volume (’000 tons) 231 166 39.1% Branded small-packed fresh pork sales volume 55,833 50,167 11.3%
Slide 5: 2022 Financial Metrics
2022 Financial Metrics Key Financial Metrics 2022 2021 Change Revenue (RMB MM) 12,901 13,228 -2.5% Profit/Loss for the period (before adj.) (RMB -320 2,354 -2,674 MM) Including: profit/loss attributable to the owners of the Company (before adj.) -320 2,378 -2,698 (RMB MM) Profit/Loss for the period
Slide 6: Industry Overview: In 2022, Hog Price Continued Falling after Rebound
Industry Overview: In 2022, Hog Price Continued Falling after Rebound Chinese Hog Prices（RMB/kg） 2019 2020 2021 2022 44 39 34 29 24 18.41 28.32 19 12.12 14 9 w01 w05 w09 w13 w17 w21 w25 w29 w33 w37 w41 w45 w49 • Early 2022, with the effect of capacity reduction gradually manifested, hog price contin
Slide 7: 2022 Business Highlights
2022 Business Highlights Actively Respond to External Challenges, Strengthen Internal 1 Benchmarking to Improve Production Efficiency Substantial Growth in Fresh Pork Sales Volume, and Better 2 Alignment between Upstream and Downstream Capacity Optimize Product Positioning, Accelerate Terminal Const
Slide 8: Actively Respond to External Challenges, Strengthen Internal Benchmarking to Improve Production Efficiency
Actively Respond to External Challenges, Strengthen Internal 1 Benchmarking to Improve Production Efficiency • In response to multiple external challenges, we persistently adhered to refined management. 01 Production management: strengthening internal benchmarking and implementing resident managemen
Slide 9: Alignment between Upstream and Downstream Capacity
Substantial Growth in Fresh Pork Sales Volume, and Better 2 Alignment between Upstream and Downstream Capacity Geographical layout of Slaughtering and Processing Facilities Fresh Pork Sales Volume 1M (‘000 tons) 231 1M 166 1.5M Guangdong Cutting Center 2021 2022 Significant improvement in upstream
Slide 10: Optimize Product Positioning, Accelerate Terminal Construction, Brand Influence further Expanded
Optimize Product Positioning, Accelerate Terminal Construction, 3 Brand Influence further Expanded Branded small-packed fresh pork sales volume Optimizing the brand positioning, Further (MM Boxes) deepening brand influence 55.83 • 2022H1, during the COVID-19 epidemic prevention and control in severa
Slide 11: Strengthen Risk Control and Deepen the Combination of Trade and Processing
Strengthen Risk Control and Deepen the Combination of Trade 4 and Processing • In 2022, we continued to strictly control the risk of import market fluctuations, and took initiative to reduce import volume. Pork Import： Beef Import ： − Given the abundant supply of − Impacted by the COVID-19 pandemic
Slide 12: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 10
Slide 13: 2022 Financial Highlights
2022 Financial Highlights Revenue amounted to RMB 12,901million, the revenue of hog 1 production and fresh pork increased significantly, partially offsetting the impact from taking initiative to reduce pork import volume Management efficiency has improved, expense rate has decreased, 2 and capital s
Slide 14: Revenue amounted to RMB12,901 million, hog production and fresh pork increased significantly
Revenue amounted to RMB12,901million, the revenue of hog production 1 and fresh pork increased significantly, partially offsetting the impact from taking initiative to reduce pork import volume Hog production Fresh pork (RMB MM） (RMB MM) • In 2022, hog production volume was 4,103 thousand heads, up
Slide 15: Management efficiency improved, expense rate decreased, capital structure reasonable
Management efficiency has improved, expense rate has decreased, and 2 capital structure remained at a reasonable level Total expenses and expense rate of distribution and selling Net debt to equity ratio Total assets and Asset-liability ratio and administration （RMB MM） (RMB MM) (RMB MM) (% of reven
Slide 16: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 14
Slide 17: Strategy and Outlook
Strategy and Outlook 1 Steadily expand the capacity of core businesses Normalize ASF prevention & control, narrow internal gaps of efficiency, consolidate 2 core competitive edges • Incorporate the prevention and control of the ASF into routine practices, and ensure production safety and operation s
Slide 18: Appendix
Appendix Closing Price of Corn in Dalian (2016-2022) Spot Price of Soybean Meal (2016-2022) (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 16/01 16/07 17/01 17/07 18/01 18/07 19/01 19/07 20/01 20/07 21/01 21/07 22/01 22