Produced by Huabo Jingwei.
Recently, Arowana released its 2023 performance report, and to the disappointment of investors, the three key financial indicators of "Yau Mao" all recorded negative growth, of which the operating income was 25152.4 billion yuan, down 23%；Net profit attributable to the parent company 284.8 billion yuan, down 54%；Deduct non-net profit of 13200 million yuan, a year-on-year decrease of 585%。This is the first time since 2016 that Arowana's annual report has seen a decline in revenue. Not only the performance is sluggish, but the stock price of Arowana has created a miracle is also all the way down, once the most popular 145 yuan shares, so that investors can not climb, and now it is as low as 31$95 (as of February 23, 2024**) makes investors "love to ignore".
At the investor communication event held on December 15, 2023, in the face of investors' suggestions on the company's stock price boost, Arowana threw the pot to the general environment, saying, "In the current market environment, the stock prices of many companies are not performing well, so we are not too worried about the stock price." What we are most concerned about is whether the company's business is progressing and whether the company's management team is getting better and better. ”
Judging from the performance report, the company's business that Arowana is most concerned about is not making much progress, but the company's management team is indeed "getting better and better". The 2023 semi-annual report shows that during the reporting period, the salary of Arowana employees decreased by 057%, but the remuneration of directors and supervisors increased by 44% year-on-year in the same period9%。
As for why the operating income fell for the first time in 7 years, Arowana said that it was mainly because the impact of product *** exceeded the revenue contribution brought by sales growth. With the gradual recovery of the domestic economy, the sales volume of the company's kitchen food, feed raw materials and oil technology products increased better than last year, but the main products of the company fell with the main raw materials such as soybeans, soybean oil and palm oil. The sharp decline in non-net profit was due to the impact of gains and losses on derivative financial instruments and structured deposits that did not fully meet the hedge accounting requirements. From a business perspective, the realized part of all ** profit and loss should be included in the cost of main business, and the unrealized part should be included in the cost of main business along with future spot sales.
It is worth noting that at the same time as the release of the performance report, Arowana announced that the company decided to postpone five fundraising projects including the "Lanzhou New Area Grain, Oil and Food Processing Base Project (Phase I)". The completion dates of these five fundraising projects were originally expected to be the end of 2023 and the middle of 2024, but the projects all have problems that some construction sectors have not yet started construction and the construction progress is too slow, so these fundraising projects will be postponed, and it is expected that they will be put into operation on December 31, 2024 at the earliest, and can reach the usable state on December 31, 2025 at the latest. Arowana said that the postponement of part of the fund-raising project is a prudent decision made by the company according to the actual situation of the fund-raising project, and has not changed the implementation of the investment project, the purpose of the raised funds and the scale of investment, and the postponement of the project only involves changes in the progress of the fund-raising project, and there is no disguised change in the investment direction of the raised funds and damage to the interests of the company and shareholders, nor will it have a significant adverse impact on the normal operation of the company.
Brokerage institutions are generally optimistic about Arowana's operating conditions in 2024. Haitong International Research Report pointed out that since the beginning of this year, the condiment spot and ** index have changed by 085%/3.17%, compared with the same period last year, the spot and ** indices have changed by 031%/4.02%。*The end benefited from the decline of glass, soybeans and sugar, and the cost of condiments fell first. Huaxin** research report pointed out that with the continuous promotion of the development of high-end products and the optimization of product structure, the superposition of wheat raw materials high inventory digestion is completed, and the profitability of kitchen food is expected to continue to repair. In terms of feed raw materials and oil technology, benefiting from the rebound of soybean meal products caused by the tight supply of soybeans in China since 2023Q3, the company's crushing profits have continued to increase. The central kitchen business continues to advance, and the company plans to continue to promote the development of central kitchen through the "self-management + investment" model, realize the integration of upstream and downstream of food ingredients in one stop, and continuously expand the comprehensive competitiveness of enterprises and brands.