阜丰集团年报 2023

2023ANNUAL REPORT年報 CONTENTS目錄 Chairman’s Letter2Financial Highlights4 Corporate & Share Information公司及股份資料 Corporate Information198Biographies of Directors and SeniorManagement200Five-year Summary204Production Bases206Major Products Processing Map207Share Information208Glossary209 Management Review管理層回顧 Market Overview5Business and Financial Review6Outlook20Future Plan21Other Information21 Reports and Financials報告及財務資料 ESG Executive SummaryESG24Corporate Governance Report27Directors’ Report45Independent Auditor’s Report58Consolidated Financial Statements65 CHAIRMAN’S LETTER主席信札 Dear Shareholders, 二零二三年表現 2023 Performance 2023 was a challenging year with weaker than expected post-Covidrecovery of global economies, geopolitical tensions and high-interestrate in the USD. 28031 Despite the challenges, the Group outperformed its operatingresults and showed extraordinary development resilience, mainlydue to the Group’s development strategies and the commitmentof our dedicated team. Turnover and net profit of the Group wereapproximately RMB28.0 billion and RMB3.1 billion respectively. 盈利新台階 Higher Earnings Level 12 During the period from 2017 to 2021, our average earnings level peryear was around RMB1.2 billion. Since 2022, our earnings level hasincreased significantly. We have entered a new stage of earningslevel and strive to keep the sustainable growth trend due to ourmarket leadership in key products, economies of scale, effective costcontrols and diversified product portfolio. 業務發展 Business Development We implemented the “Dual High-quality Objectives” as our strategicmission for 2023, including the internationalisation plan and high-quality operation of the existing production capacities. (1)(2) –Domestic market: At the year-end date, (1) the chemical plantconstruction entered into the final stage; (2) new MSG capacitywas in the trial run. The newly added capacities of both in 2024will further improve our cost advantage and strengthen ourmarket leadership in MSG. –Overseas markets: Our internationalisation plan includes thelaunch of regional sales offices and overseas production bases. –Regional sales offices: We successfully launched threeregional sales offices in Vietnam (for the East Asianmarkets), the U.S. (for the American markets) and theNetherlands (for the European markets) respectively, tobetter serve our overseas customers directly. CHAIRMAN’S LETTER主席信札 –Overseas production bases: We are conducting feasibilitystudies in the U.S. and Eastern Europe to build twoproduction bases (production of animal nutrition products,namely threonine and lysine). We target to confirm thelocations in 2024. We aim to produce and sell the productslocally by sourcing local raw materials which can improveproduction efficiency and minimise the risks of globalsupply chain disruptions and geopolitical tensions as wellas provide higher transparency of our production chain inthe local markets. Moving forward, we will: 1. 1.get the new MSG and chemical plant fully operational. We willstrengthen our market leadership in MSG and maintain a rationalcompetitive environment; 2. 2.fully utilise the function and contribution of three regional salesoffices. 股息政策 Dividend Policy 35+35%5% Based on our strong cash flow and low gearing ratio, we would liketo share the results with our Shareholders and set a dividend payoutratio of 35+, in which 35% is the basic dividend payout and plus isthe special dividend payout (we paid special dividends of 5% in 2022and 2023 respectively). 致謝 Appreciation 25! 2024 marks the 25th anniversary of Fufeng Group. I would like to takethis opportunity to express my heartfelt appreciation to the membersof the Board, management team, and staff for their diligenceand dedication, as well as my sincere gratitude to you, financialinstitutions, customers, suppliers and other stakeholders who havelong cared for and supported our Group. 李學純 Li XuechunChairman FINANCIAL HIGHLIGHTS財務摘要 MANAGEMENT REVIEW管理層回顧 市場概覽 Market Overview 經濟環境 Economic Environment 2.6%5.2% According to the data of the World Bank, the global economic growthwas 2.6% in 2023. According to the National Bureau of Statistics ofChina, China reported a GDP growth of 5.2% on a year-on-year basisin 2023. 主要原材料 Major Raw Materials 288,800,0004.2%27,100,00031.6% In 2023, China’s corn planting area increased, with an abundantcorn harvest during the Year. According to the National Bureau ofStatistics of China, China reported corn production of approximately288.8 million tonnes in 2023, representing an increase of 4.2% ascompared to 2022. According to the data of General Administrationof Customs of the People’s Republic of China, China importedapproximately 27.1 million tonnes of corn in 2023, representing agrowth of approximately 31.6% as compared to 2022. 2,9382,56637212.7% According to the data of Chinese media, the corn price was weakin China in 2023 due to weak demand. Corn price dropped fromRMB2,9