Dekon Food and Agriculture Group (2419) H2 2024 earnings summary

Executive summary

• Achieved a significant turnaround with net profit of RMB4,201.7 million in 2024, compared to a net loss of RMB1,992.1 million in 2023, driven by higher pig prices and cost reductions.

• Revenue increased by 39.0% year-over-year to RMB22,463.0 million, mainly due to strong growth in the pig segment.

• Gross profit margin rose sharply from 0.7% in 2023 to 21.7% in 2024, reflecting improved pricing and operational efficiency.

• Proposed a final dividend of RMB0.90 per share for 2024, subject to shareholder approval.

Financial highlights

• Revenue: RMB22,463.0 million (up 39.0% year-over-year).

• Net profit: RMB4,201.7 million (vs. net loss of RMB1,992.1 million in 2023).

• EBITDA (before biological assets fair value adjustments): RMB4,624.3 million (2023: RMB9 million).

• Gross profit margin: 21.7% (2023: 0.7%).

• Earnings per share: RMB10.55 (2023: loss per share RMB4.88).

Outlook and guidance

• Plans to further optimize pig farming scale, enhance disease prevention, and invest in R&D for breeding and cost control.

• Poultry segment to focus on breed innovation, market expansion, and efficiency improvements.

• Ancillary products segment to expand regional market share and build a high-quality food ecosystem.

• Continued investment in ESG initiatives and risk management, including use of pig futures for hedging.