The total cost of fattening decreased by 1.72 yuan/catty, and feed sales reached a new high of 7.7 million tons! Dabeinong has a stable feed advantage, with a target of 10 million tons
Recently, Beijing Dabeinong Technology Group Co., Ltd. (hereinafter referred to as "Dabeinong") released its 2023 annual report, and Dabeinong achieved a net profit attributable to the parent company of -2.174 billion yuan, a year-on-year decrease of 3982.14%, ushering in the largest loss since listing. The net profit attributable to the parent company in the first quarter of 2024 will be -209 million yuan, a year-on-year decrease of 32.16%, and the loss area will narrow.
In 2023, Dabeinong Feed's operating income will be 24.33 billion yuan, maintaining profitability and creating a net profit of 1 billion yuan, a year-on-year increase of more than 60%. Dabeinong said that in the future, the feed business will continue to grow bigger and stronger, and strive to achieve the target of 10 million tons of feed sales in 2025.
In 2023, the total revenue will reach a new high of 33.4 billion
According to the annual report information, Dabeinong has basically formed a good pattern of comprehensive development of seed industry, feed, pig breeding, animal protection and vaccine industry, and will achieve operating income of 33.39 billion yuan in 2023, a record high, a year-on-year increase of 3.07%. Among them, feed and pig breeding are still the top two businesses in terms of revenue, with 24.02 billion yuan and 5.702 billion yuan respectively, accounting for 89.01% of the total revenue.
Affected by the continued low price of live pigs, the performance of most listed pig companies in 2023 will show the characteristics of "increasing income without increasing profits", and Dabeinong is one of them, achieving a net profit attributable to the parent company of -2.174 billion yuan, a year-on-year decrease of 3982.14%, the largest loss since listing. The net profit attributable to the parent company in the first quarter of 2024 will be -209 million yuan, a year-on-year decrease of 32.16%, and the loss area will narrow.
From the perspective of net profit composition, the feed business, as the basic business of Dabeinong, can contribute good cash flow and profits, and can also bless the healthy development and effective incubation of other industries, and create profits of more than 1 billion yuan for Dabeinong in 2023, a year-on-year increase of more than 60%. The pig sector suffered a loss of 1.5 billion yuan, turning from profit to loss year-on-year. The loss of the pig business, coupled with the impact of asset impairment losses and credit impairment losses, eventually caused the overall net profit loss attributable to the parent company to exceed 2 billion yuan.
Focus on promoting the strategy of full production of the factory
Since its establishment in 1993, Dabeinong has become one of the leading feed enterprises in the country, and has laid out nearly 100 production bases in 28 provinces (municipalities and autonomous regions), with a total feed sales volume of 7.7 million tons in 2023, including 5.8505 million tons of foreign sales, a year-on-year increase of 10.08%.
In recent years, Dabeinong has adjusted the development focus of various types of feed, focusing on pig feed, ruminant feed first, poultry feed strategy compression to retain the high-end premix part, and aquatic feed focusing on special aquatic feed. As a result, a category structure of "pig feed dominates the market, and ruminant feed has sprung up".
According to the annual report data, in 2023, Dabei Agricultural Pig Feed will achieve external sales of 4.6592 million tons, a year-on-year increase of 14.03%, accounting for 79.64% of the total external sales of feed, and ruminant feed will achieve external sales of 670,400 tons, second only to Hefeng shares, with a year-on-year increase of 5.49%.
Dabei Nongtaihe Feed Factory
At this stage, Dabeinong's feed business is gradually developing in the form of a consortium, and the feed factory adopts a full-capacity strategy to achieve 10 million tons of sales by 2025. It is reported that the full load rate of Dabeinong feed production capacity will be about 50% in 2022, and in 2023, Taihe Plant, Jingzhou Plant, Deyang Chiyang Plant and Shaanxi Zhengneng Plant will achieve full production, which will further increase the full load rate of production capacity.
According to the statistics of the new pig pie, in 2023, Dabeinong will slaughter 6.0487 million pigs, a record high, ranking 9th in the country, with a year-on-year increase of 36.50%. Among them, nearly 5.3 million fattening pigs were slaughtered by holding and shareholding companies, and 14% of the more than 5 million fattening pigs were self-farrowing and self-raising, and 86% were "company + farmer" models.
According to the plan, the strategy of Dabeinong's pig business at this stage is to develop steadily and optimally, with a target of 6 million pigs to be slaughtered in 2024, which is expected to be the same as in 2023. In addition, we should pay close attention to the full production of sow farms, the optimization of breed structure, and the revitalization of idle assets to achieve cost reduction. Among them, the sow capacity utilization rate increased from 40% at the end of 2022 to 57.5% at the end of the first quarter of 2024, and the Northeast pig platform also changed from the original 80% binary backcrossing to 70% ternary crossbreeding.
In terms of cost, it is reported that the complete cost of Dabei Agricultural Fattening will drop from 9.27 yuan/jin in the first quarter of 2023 to 7.55 yuan/jin in the first quarter of 2024, a year-on-year decrease of 1.72 yuan/jin, and the target will reach 7.25 yuan/jin by the end of this year.
The joint development of 200 million pigs project empowers feed growth
There are more than 2,000 cooperative ecological farms (farmers) At present, the feed industry in mainland China has gradually transformed into a stage of high-quality development, and the industry has shifted from the one-dimensional competition of feed products itself to the multi-dimensional competition of seedlings, animal protection, feed product strength and the company's own breeding technology service capabilities.
In order to stabilize and expand the sales scale and profitability of the company's feed, seedlings, animal protection and other products, Dabeinong not only actively promoted the full production strategy of the factory, but also proposed the joint development of 200 million pigs.
Diagram of the project model of the joint development of 200 million pigs of Dabeinong
Under this project model, Dabeinong takes its feed business as the core, forms a close industrial consortium with farmers through joint procurement, unified technology and other combination models, and provides overall solutions for farmers around the needs of breeding links, so as to reduce the production cost of farmers, improve production efficiency, and help partners achieve 7 yuan/kg fattening cost. By the end of 2023, Dabeinong has established industrial consortia in more than 20 provinces and regions across the country, cooperating with more than 2,000 ecological farms (farmers). In order to promote the steady development of the joint development of the 200 million pig project, Dabeinong pays more attention to the upgrading of service quality. It is reported that in the feed business, Dabeinong has built an intelligent manufacturing platform, reduced feed sales personnel, increased service personnel, and effectively improved the feed service level. In the pig business, an independent pig service platform has been established, with independent accounting and self-financing, which ensures the continuous improvement of the quality of breeding technology services.
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【WeChat Editor】Meng Xuan
[Content source] Yao Weipeng, Liu Weiheng
【Data Mapping】Zhou Shihong
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