Cofco Joycome Foods Limited · HKEX:1610
Cofco Joycome Foods — FY2023 Earnings Presentation
20 slides from Cofco Joycome Foods's earnings presentation, March 2024
Slide 1: 2023 Annual Results Presentation
2023 Annual Results Presentation March 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: 2023 Key Operating Metrics
2023 Key Operating Metrics Key Operating Metrics 2023 2022 Change Hog production volume (’000 heads) 5,200 4,103 26.7% Average selling price of finishing hogs (RMB/kg) 14.55 17.86 -18.5% Fresh pork sales volume (’000 tons) 245 231 6.1% Ratio of revenue from branded business of total 26.6% 30.4% -3.8
Slide 5: 2023 Financial Metrics
2023 Financial Metrics Key Financial Metrics 2023 2022 Change Revenue (RMB MM) 11,568 12,901 -10.3% Profit/Loss for the period (before adj.) (RMB 16 -320 Up 336 MM) Including: profit/loss attributable to the owners of the Company (before adj.) 51 -320 Up 371 (RMB MM) Profit/Loss for the period (afte
Slide 6: In 2023, Industry Endured Significant Losses as Hog Prices Remained Low
In 2023, Industry Endured Significant Losses as Hog Prices Remained Low Chinese Hog Prices（RMB/kg） 2020 2021 2022 2023 40 35 30 25 18.41 20 17.30 15 10 w01 w05 w09 w13 w17 w21 w25 w29 w33 w37 w41 w45 w49 • In 2023, due to sufficient hog supply and lower-than-expected demands, hog prices remained low
Slide 7: 2023 Business Highlights
2023 Business Highlights Hog Production: Focus on Refined Management, Upgrade 1 Breeding System Better Hog Production & Downstream Processing Alignment， 2 Steady Growth in Fresh Pork Sales Volume Enriching Fresh Product Portfolio, Optimizing Brand Channel 3 Network and Further Expanding Joycome Infl
Slide 8: Hog Production: Focus on Refined Management, Upgrade Breeding System
Hog Production: Focus on Refined Management, Upgrade 1 Breeding System • Facing market downturn, we remain committed to refined management. Production management: strengthening on-site management and conducting internal benchmarking to narrow cost gaps among regions Feeding: optimizing feed formulas
Slide 9: Better Hog Production & Downstream Processing Alignment, Steady Growth in Fresh Pork Sales Volume
Better Hog Production & Downstream Processing Alignment， 2 Steady Growth in Fresh Pork Sales Volume Fresh Pork Sales Volume Geographical Layout (‘000 tons) 245 231 Alignment Area Slaughtering and 166 Processing Facilities Guangdong Cutting and Processing Center Beijing Cutting and Processing Center
Slide 10: Enriching Fresh Product Portfolio, Optimizing Brand Channel Network and Further Expanding Joycome Influence
Enriching Fresh Product Portfolio, Optimizing Brand Channel 3 Network and Further Expanding Joycome Influence Enriching fresh pork product portfolio, Further expanding Joycome brand influence optimizing brand channel network • Channels: Streamline channel network and • Focused on marketing campaigns
Slide 11: Meat Import: Strengthening Risk Control, Promoting Internal Synergy and Generated Profit
Meat Import: Strengthening Risk Control, Promoting Internal 4 Synergy and Generated Profit given Market Headwinds • In 2023, we continued to strictly control the import market risk, increased the proportion of order locking, and accelerated inventory turnover. Pork Import： Beef Import ： − Prices of
Slide 12: Fulfilling Responsibilities as Central SOE, Supporting Green Agriculture
Fulfilling Responsibilities as Central SOE, Supporting 5 Green Agriculture Pioneer Waste Treatment Technology Promote Ecological Cycle of “Farming + Breeding” 10
Slide 13: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 11
Slide 14: 2023 Financial Highlights
2023 Financial Highlights Revenue amounted to RMB11,568 million, while hog production 1 volume and sales volume of fresh pork realized year-on-year increase. 2 Risk management has improved, whilst turnover accelerated, and inventory and accounts receivable decreased. 3 Raised fund helped optimize ca
Slide 15: Revenue amounted to RMB11,568 million, while hog production volume and sales volume of fresh pork realized year-on-year increase
Revenue amounted to RMB11,568 million, while hog production volume 1 and sales volume of fresh pork realized year-on-year increase Hog production Fresh pork (RMB MM） (RMB MM) • In 2023, hog production volume was 5,200 thousand heads, • In 2023, sales volume of fresh pork was 245 thousand tons, repre
Slide 16: Risk management has improved, whilst turnover accelerated, inventory and accounts receivable decreased
Risk management has improved, whilst turnover accelerated, inventory and 2 accounts receivable decreased Inventory and inventory Accounts receivable and accounts turnover days receivable turnover days 500 50.0 (RMB MM) (days) (RMB MM) (days) 2,000 50.0 450 40.0 1,800 45.0 400 27.8 39.6 30.0 1,600 38
Slide 17: Raised fund helped optimize capital structure continuously
3 Raised fund helped optimize capital structure continuously Net debt to equity ratio Total assets and Asset-liability ratio （RMB MM） 25,000 (RMB MM) 70.0% 73.3% 55.1% 60.0% 11,000 37.6% 50.0% 20,000 50.0% 43.0% 9,000 18,394 9,246 40.0% 0.0% 8,263 15,000 16,230 7,000 30.0% -50.0% 20.0% 6,060 5,000 1
Slide 18: Content
Content Chapter 1 Business Overview Chapter 2 Financial Overview Chapter 3 Strategy and Outlook 16
Slide 19: Strategy and Outlook
Strategy and Outlook 1 Accelerate the expansion of core businesses Regularize ASF prevention & control, improve refined management to consolidate 2 core competitive edges • Insist on the prevention and control of ASF, ensure safety and stability of production and operation • Improve refined manageme
Slide 20: Appendix
Appendix Closing Price of Corn in Dalian (2016-2023) Spot Price of Soybean Meal (2016-2023) (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 • In 2023, the average closing price of corn in Dalian • In 2023, the average sp